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Kotak
Mahindra launches Contra fund
Mumbai: The Kotak Mahindra Mutual fund has launched
its open-ended contrarian equity fund, the Kotak Contra,
which seeks to invest in fundamentally sound stocks that,
according to the company have been overlooked by the market
and are waiting for their value to be discovered.
The contra investment strategy would entail investing
in companies whose changing fundamentals are not recognised
by the market.
Some stocks would be unattractive in the short term because
of changes in the environment, Government policy etc.
If these changes are temporary and non-recurring in nature
then investment in these stocks would give high returns
when the sentiment against these companies changes, fund
officials have stated.
The holding period for the stocks in the fund is expected
to be 18-24 months, according to the officials.
The initial offer of the fund remains open till July 1,
2005.
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Birla
Sun Life to launch the GenNext fund
Mumbai: The Birla Sun Life Mutual Fund is set to launch
the Birla India GenNext Fund. The proposed launch is a
thematic fund that targets equities of companies expected
to benefit from the consumption habits of the young generation
in India.
Investments by this fund would be in sectors such as automobiles,
travel and tourism, healthcare, banking, retailing and
housing, among others.
The logic behind the fund is the fact that 54 per cent
of Indians are less than 25 years old and that 25 per
cent of the world's youth live in India, fund officials
said.
According to the officials, the fund would invest in companies
that garner at least 50 per cent of their revenues from
sales to end-customers. These companies should also have
a strong brand identity.
The initial offer of the fund is open from June 14 to
July 12. The scheme offers dividend and growth options
and the minimum application amount is Rs5,000.
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Yes
Bank IPO price band fixed at Rs.38-45
Mumbai: Yes Bank has announced that it will enter
the capital market with its initial public offer on June
15 in order to raise Rs266-315 crore. The issue will close
on June 21.
Yes Bank will offer seven crore equity shares of Rs10
face value through a 100 per cent book building route.
The price band for the shares has been fixed at Rs38-45.
The bank had filed a red herring prospectus with the SEBI
in March 2005.
The promoters of Yes Bank, Rana Kapoor and Ashok Kapur,
currently hold 52.1 per cent of the outstanding equity
shares. Post-issue, their stake will come down to less
than 39 per cent.
Of the seven crore shares, the bank plans to allocate
up to 50 per cent of the issue to qualified institutional
buyers (QIBs), at least 25 per cent to non-institutional
bidders, and at least 25 per cent to retail investors.
While allotment to QIBs would be on a discretionary basis,
allotment to non-institutional bidders and retail investors
would be on a proportionate basis, said a bank release.
The stake of CVC-Citigroup-New York, which is currently
at 10 per cent, will come down to 7.4 per cent post-IPO.
Similarly, the stakes of AIF Capital-Hong Kong and ChrysCapital-San
Francisco, currently at 7.5 per cent each, which will
come down to 5.6 per cent each after the IPO, officials
said. Post-issue, the paid-up capital of the bank will
be Rs270 crore.
The money raised will be used to invest in expansion and
retail bank operations. The bank has 36 licences across
the country and is planning to launch them by March 2006.
The book-running lead managers for the issue are DSP Merrill
Lynch and Enam Financial Consultants.
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