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Fresh registrations for UINs suspended from July 1
Mumbai: The Securities and Exchange Board of India has suspended all fresh registrations for Unique Identification Numbers (UINs) from July 1, following a SEBI committee's recommendation seeking to move away from the biometric system for generating UINs.

The report of the committee has been put up for public comments.
Registration of fresh UINs will commence after a final view on the report is taken, according to SEBI.
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IL&FS Investsmart IPO subscribed 7.94 times on opening
Mumbai: The initial public offering of financial services company IL&FS Investsmart was subscribed 7.94 times on the first day with most of the bids coming at the upper price band of Rs125.

The price band for the issue is Rs110-125.

According to the BSE Web site, the issue received bids for 9.05 crore shares compared to issue size of 1.14 crore share.

FIIs were the major investors with bids made for 6.54 crore shares. This was followed by mutual funds at 2.25 crore shares.
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Govt. to earn up to Rs.300 crore from IDFC stake dilution
Chennai: The government may mop up anywhere between Rs257-301 crore with the dilution of its stake in IDFC. The infrastructure development body is entering the markets with an IPO on July 15.

IDFC is offering 40.4 crore equity shares of Rs10 each and the price band for the issue, which closes on July 22, has been fixed at Rs29 and Rs34.

The govt. is set to realise a minimum of Rs256.9 crore if investors opt for the lower end of the price band, and a maximum of Rs301.2 crore if the investors opt for the higher end of the price band. The equity stake of several Indian financial institutions and foreign investors also stands to be reduced, as they offer part of their holdings through the IPO.

Among them, IDBI will see its holding reduce its holding to 3.12 per cent post-issue, from the present 4.99 per cent. Other Indian financial institutions including SBI and ICICI too will dilute their combined holding in IDFC to 12.47 per cent from the present 19.96 per cent. A group of foreign investors including ADB and IFC, who now hold 39.9 per cent equity stake in IDFC will see their holdings reduced to 24.94 per cent after the issue.

According to IDFC officials with large scale infrastructure development on the anvil, the investors will benefit from the issue since IDFC is the only institution fully focused on infrastructure.
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Sterling Holiday to privately place shares
Chennai: Sterling Holiday Resorts (India) Ltd plans to issue 37.4 lakh shares of Rs10 each at Rs43 to promoters and private investors on a private placement basis.

The company has informed the BSE that it plans to issue 68,40,000 warrants of Rs 10 each to be converted into shares at the end of 18 months at Rs43 to promoters and private investors on a private placement basis.
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Geojit Credits to fund futures trading
Kochi: Geojit Financial Services Ltd has set up a new company called Geojit Credits Ltd, which will focus on the credit requirements of participants in the commodity futures markets. The company will have a capital base of Rs20 crore.

According to company officials, credit will be extended on the basis of warehouse receipts. To start with, the company will be funding the sellers in the commodity futures market, including farmers. Later the credit scheme will be extended to buyers of commodity futures as well.

In the private sector, Geojit will be the first company to make a foray into extending credit for commodity futures, next only to banks such as ICICI Bank, Corporation Bank, and Punjab National Bank.

Currently, participants in the commodity futures have to wait for a maximum period of three months for a settlement cycle to close before they can recover their investments. The new company will be extending 80 per cent credit on striking the contract and producing the warehouse receipt.

Geojit will hold close to 50 per cent equity in the new company, while the promoters of Geojit and Kerala State Industrial Development Corporation, will hold the rest.
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Sahara launches Wealth Plus Fund
Mumbai: The Sahara Mutual Fund has launched its new fund, the Sahara Wealth Plus Fund. The new fund offer remains open till July 22.

The fund is an open-ended growth scheme with the primary objective to invest in equity and equity-related instruments of companies that would be wealth builders in the long term, according to a company press release. The fund is based on a variable fee structure, the release said.

According to fund officials, the fund is a unique initiative by the Sahara Mutual Fund, where perhaps for the first time in India a variable fee structure has been introduced to a mutual fund product. Customers will be charged a fee based on the performance of the fund. No fee would be charged by the asset management company if the fund does not perform, the release said.
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Shri Ramrupai Balaji Steels IPO opens on Friday
Mumbai: Shri Ramrupai Balaji Steels Ltd, part of Rs500-crore Kolkata based Jai Balaji Group, is entering the capital market on July 8 with an IPO of 2 crore shares of Rs10 each through a 100 per cent book building route.

The IPO will raise money to part-finance its Rs285-crore project for a vertically integrated steel plant in Durgapur, West Bengal.
The price band for the issue has been fixed at Rs20-22 per share. The issue closes on July 14. The company has reserved 10 lakh shares for allocation to permanent employees, leaving net offer to the public at 1.9 crore shares. The issue would constitute 30.31 per cent of the post issue paid up capital of the company.

Total funds to be raised through this issue would work out to Rs40 crore at lower end of the price band and Rs44 crore at higher end of the price band. The Book Running Lead Managers to the issue are Microsec India Ltd and Anand Rathi Securities Private Ltd. The Registrar to the issue is Intime Spectrum Registry Ltd.

The Jai Balaji Group has an installed capacity of 345,000 tonnes of sponge iron and 363,000 tonnes of semis and rolled products making it a large player in the steel industry in Eastern India.

Shri Ramrupai Balaji Steels has already commissioned facilities to manufacture 1,20,000 tonne per annum (TPA) of sponge iron, 80,500 tonne of pig iron and a rolling mill with a capacity of 80,000 tonne per annum. And the commercial production for all these units has already commenced. The steel melting shop, with a capacity to manufacture 1,76,418 TPA of MS billets and a coal washery, with the capacity of 2,16,000 TPA is expected to be commissioned by August 2005.

The company is also in the process of setting up a 40-MW captive power plant.
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Reliance Ind. acquires 1.36 crore shares of REL
Mumbai: Reliance Industries (RIL) has acquired 1.36 crore equity shares of Reliance Energy Ltd (REL) from Reliance Industrial Investments and Holdings, a wholly owned subsidiary of Reliance Industries Ltd.

This is an "Inter se transfer of shares under the promoter category," according to notices sent to BSE by both RIL and REL. The transaction took place on June 30.

This transfer is believed to be part of the restructuring process in the Reliance Group that will lead to the division of the businesses between the Ambani brothers.
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