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Tata MF to launch Tata Arbitrage Fund
Mumbai: Tata Mutual Fund is all set to launch an open ended income fund called the Tata Arbitrage Fund. The scheme offers growth and dividend options under Plan A and B.

The minimum application amount is Rs10,000 and in multiple of Rs1,000 thereafter. The scheme attracts an entry load of 3% and an exit load of 3% during the initial offer period. The Investment Objective of Plan A is to provide capital appreciation and income distribution to unit holders by investing predominantly in debt securities and the balance portion in equity & equity related securities including derivatives.

The Investment Objective of Plan B is to provide capital appreciation and income distribution to unit holders by investing in Equity & Equity related securities including derivatives and the balance portion in debt securities.
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Pacific Century to pick up 20 per cent stake in Karvy Broking
Hyderabad: The Hong Kong-based Pacific Century Group (PCG) has decided to acquire 20 per cent equity stake in Karvy Stock Broking Ltd (KSBL). Syndicated by the MAPE Advisory Group, the Rs83-crore deal is the first investment of PCG in the Indian financial services arena.

KSBL, a member of NSE and BSE, has an average daily stock market turnover of around Rs500-crore. It has a network of 363 offices covering 248 cities and towns spread across the country and overseas - Dubai and New York.

Apart from offering broking services to over 2.5-lakh retail investors, KSBL also has a private client desk to cater to high net worth individuals as well as the corporates. It also has an institutional desk to service various financial institutions, both domestic and foreign.

According to company sources, KSBL needs close to Rs100 crore funds for working capital and expansion. By placing 20 per cent of KSBL's fresh equity with the Hong Kong group, it will raise Rs83 crore in funds, with the balance accruing from internal sources.

Karvy also intends double its daily average stock market turnover to over Rs1,000 crore by the current fiscal-end.

Company officials also said that the company might consider tapping the capital market with its initial public offering (IPO) in the next 2-3 years for additional funds. Karvy also proposes to significantly strengthen its commodity and insurance broking operations, mutual fund distribution and investment banking activities, by way of de-risking its business from the capital market volatilities.
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Provogue lists at 65 per cent premium
Mumbai: Shares of Provogue (India) debuted on the stock exchanges yesterday at 65 per cent premium to the issue price of Rs150. Trading volumes were also very high with shares more than three times of the IPO size traded on the BSE and the NSE.

On the BSE, the stock touched a high of Rs299, a low of Rs229 and closed at Rs245.55 - that is a premium of 63.70 per cent over the issue price. On the NSE, it closed at Rs247.95, up 65.30 per cent. On the BSE and the NSE, total shares traded were 1.37 crore shares - 3.39 times higher against the issue size of 40.5 lakh shares. However, of the shares traded, only 15.42 per cent shares on the BSE and 13.2 per cent on NSE were for delivery.
The issue was subscribed by 67 times during its IPO.
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Vivimed Labs IPO to fund Rs.26 crore expansion
Mumbai: Hyderabad-based Vivimed Labs Ltd is coming out with an initial public offer (IPO) of 25 lakh equity shares of Rs70 each, by way of raising Rs17.5 crore. The IPO will raise funds for Vivimeds expansion project to increase its production capacity of triclosan, an anti-microbial non-injestible ingredient used in products such as toothpaste.

The company also proposes to set up a production facility for four other products - Avis (a ultra-violet ray absorber), Calcium Glycerophosphate (for oral care), Cosvat (an anti-fungal) and A123 (a skincare product). The total project cost for the expansion is an estimated Rs26.50 crore.

The State Bank of Hyderabad and Citibank would fund the remaining Rs9 crore in equal proportion.

About 54 per cent of Vivimed's sales for the year ended March 2005, were from triclosan. But the company had other products in its pipeline to reduce the dependence, officials said. As part of current expansion plans, the production capacity of triclosan would be increased from 480 tonnes per annum to 750 tonnes.

Promoters currently hold about 80 per cent in the company and after the IPO, they will be holding slightly more than 50 per cent equity in the company, officials said.

The issue opens on July 9. UTI Securities Ltd has been appointed the book running lead managers.
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