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Punjab Markfed in pact with NCMSL and NCDEX for futures trading
Mumbai: Punjab Markfed (Punjab State Co-operative Supply and Marketing Federation), Naitonal Collateral Management Services Ltd and (NCMSL) and National Commodity & Derivatives Ltd (NCDEX) signed a memorandum of understanding on Wednesday, to offer the benefits of futures trading to the primary producers including farmers in the hinterland covered by Punjab Markfed.

The signing marks a strategic alliance between the signatories, reinforcing their commitment to transform the agricultural sector to an agribusiness sector.

The alliance between NCDEX, Punjab Markfed and NCMSL aims to devise modalities, designing contracts and contract specifications for products of spot trade as well as futures trade.

Punjab Markfed said that it plans to facilitate and carry out the sale and purchase of food grains, horticulture and floriculture produce to and/or from co-operative societies located all over India with the help of and in association with NCDEX. NCDEX and Punjab Markfed shall work towards promoting online spot and future trading in food grains, horticulture and floriculture produce on the NCDEX platform and to avail other services offered by NCDEX/NCMSL.

Punjab Markfed has said that it will make available to NCDEX members and participants its warehouses and godown's, which are owned or managed by itself. It will also make available its testing laboratories and facilities to NCDEX participants and associates of NCDEX including NCMSL.

Punjab Markfed will use the services of NCMSL/NCDEX for third party audit of stocks and operations activities of Punjab Markfed, including procurement of commodities on mutually agreed terms.

Under this arrangement, instead of selling their produce at one go on the spot markets, the farmers have a choice to deposit the same quantity in a warehouse operated by Punjab Markfed and accredited by NCMSL., The farmers/the cooperative then will simultaneously sell his produce through a futures contract and has the option of selling the produce at a futures market price which could be higher than the prevailing spot market price.
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Reliance Industries files demerger plan with the bourses
Mumbai: Reliance Industries Ltd has filed its demerger plan with the stock exchanges. The demerger proposal will allow four companies to come out of Mukesh Ambani's RIL fold and join Anil Ambani's ADA Enterprises.

To facilitate this, a series of transactions were recently conducted between the holding companies that had shares in Reliance Energy and Reliance Capital.

It is estimated that 23 lakh RIL shareholders will get an equal number of shares in four special purpose vehicles, which will later be merged with the four companies in the ADAE fold. The detailed scheme will see telecom, energy, financial services and a shell company - called Global Fuel Management Services Ltd -coming out of RIL control. Global Fuel will handle all gas deals between the Mukesh Ambani-run Reliance Industries Ltd and Anil Ambani's Reliance Energy Ltd.

The filing of the demerger plan paves the way for an eventual listing of the four companies on the bourses.
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Bombay Rayon IPO to part finance expansion plans
Mumbai: Bombay Rayon Fashions Ltd has filed an application with the Security and Exchange Board of India for an initial public offering (IPO), which will part finance its expansion plans. The plans involve an investment of Rs161 crore.

The book running lead managers to the public issue are UTI Bank and Anand Rathi Securities Pvt Ltd, while the registrar to the issue is Intime Spectrum Registry Ltd.

According to a company statement, Bombay Rayon Fashions is setting up an integrated facility, involving weaving, process house and garment manufacturing, at the Apparel Park being developed by the Karnataka Industrial Area Development Board in Doddaballapur, near Bangalore.

Gherzi Eastern Ltd has done the techno-economic feasibility study and UTI Bank has done the financial appraisal for the expansion plans. The expansion project is expected to start commercial production by March 2008. The entire fund requirement is proposed to be met through rupee term loans from banks and financial institutions, and the IPO proceeds.

The company manufactures fashion fabrics and readymade garments (mainly men's shirts). It currently manufactures fabric at Sonale near Bhiwandi, Navi Mumbai, Silvassa, and a garments plant in Bangalore.
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Vivimed Labs lists at 200 per cent premium
Mumbai: The stock of Vivimed Labs, a specialty chemicals and pharma company, today made its debut on the stock market at more than 200 per cent premium to the issue price of Rs70.

A total of 3.57 crore shares were traded on the BSE and the NSE. These volumes were almost 5 times of total 72.50 lakh shares of Rs10 each. The IPO was for 25 lakh shares.

The stock listed at Rs131 on the NSE and after touching a low of Rs99 and a high of Rs224.95 closed at Rs218.65, a rise of 212.36 per cent to the issue price. On the BSE, it closed at Rs218.35. A total of 2.31 crore shares were traded on the NSE and 1.26 crore shares on BSE. Of this, 5.43 per cent of the traded shares was up for delivery on the NSE and 4.10 per cent on the BSE.

For the financial year ended March 2005, the company reported a net profit of Rs4.84 crore on sales of Rs52.09 crore. On increased equity (post IPO) of Rs7.25 crore, its EPS is Rs6.67, which translated into price-earning ratio of 32.7.

The company is into synthesis of specialty chemicals for end-use in the personal care industry. The company today has 15 products in this segment and has moved these products into 19 countries across the globe. It also has generic drugs business and APIs.
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Tribunal orders Ketan Parekh to pay Rs.207 crore to Bank of India
Mumbai: In a ruling passed on Wednesday, the Debt Recovery Tribunal has ordered Ketan Parekh to pay Rs124 crore plus interest, aggregating Rs207 crore, to Bank of India, on account of the Rs137-crore pay-order scam in 2001, said a press release from the bank.

The release said the tribunal has also confirmed the Orders of Injunction on all the assets of Parekh, his family members and the group of companies to continue in execution of decrees. This means that Parekh and others cannot deal with any of their properties and assets.

The bank is proceeding in execution of decrees before the Recovery Officer and hopes to recover their amount.

In March 2001, pay-orders for the sum of Rs137 crore issued by Madhavpura Mercantile Co-operative Bank, in favour of Ketan Parekh and his group of companies were purchased by Bank of India and dishonoured when presented for payment.
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