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Hind Sanitary debenture issue to raise Rs.53 crore
Hyderabad: The board of Hindustan Sanitaryware & Industries Ltd (HSIL) has informed the stock exchanges that it has approved a proposal to issue 33-lakh fully convertible debentures to the Mauritius-based HPC (Mauritius) Ltd, an affiliate of Henderson Global Investors.

These debentures, of the nominal face value of Rs160.25 each, would carry four per cent per annum coupon rate and enable the company to raise Rs52.88 crore.

The debentures would be convertible into one equity share of Rs5 each, at a premium of Rs 155.25 per equity share, anytime within 18 months from the date of issue. However, the proposed preferential offer would be subject to the approval of the shareholders at the ensuing general meeting.

The board has accordingly resolved to recommend a special resolution to the shareholders at an extraordinary general meeting to be held on July 4 to seek their approval to the proposed issue of debentures.
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More schemes on the anvil from Kotak Mahindra Mutual
Kolkata: The Kotak Mahindra Mutual Fund is turning its focus on building equity assets in the coming months. The fund house currently occupies the eighth position amongst the mutual funds in the country.

The MF is currently launching the Kotak Contra Fund, which will seek to invest in fundamentally strong companies that are undervalued due to temporary or non-recurring factors. With reference to the fund company officials say that they will try to reduce the waiting period inherent in contrarian investing by selecting companies that are on the verge of an upswing or are about to experience the outcome of positive changes like restructuring or cost-cutting.

A tax-saving fund and a derivative fund are already under active consideration. The MF hopes to take advantage of the recently-introduced tax laws to work out an equity-linked savings scheme (ELSS). The latter will be akin to other open-ended ELSS products available in the market, complete with a three-year lock-in period and an actively-managed diversified portfolio.

The derivative fund for its part will try to generate income through arbitrage opportunities that emerge out of mis-pricing between the cash and derivatives markets. While there are a number of competing ELSS products, the market has not seen many derivative players. The latter, in fact, is said to be an emerging segment for fund houses.
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