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SEBI's new norms for share allotment backs retail investors
Mumbai: With discretionary allotment to QIBs scrapped and proportionate allotment mandated, retail investors will now be treated at par with the institutional bidders with respect to share allocation during an IPO, according to the new guidelines announced by the Securities and Exchange Board of India (Sebi).

Market participants say that the five per cent allocation for mutual funds, within the 50 per cent QIB portion, will also indirectly benefit the retail investors. The market regulator has reserved five per cent for mutual funds within the 50 per cent portion reserved for QIBs. In addition, fund houses can also bid for the remaining 45 per cent shares.

Sebi has also made it mandatory for QIBs to pay ten per cent upfront margin, unlike in the past when they could bid freely while other investors paid margins. The move follows complaints from investors that issue managers were favoring some investors, particularly foreign funds, in heavily oversubscribed issues, leading to pricing distortions.
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UTI Mutual declares dividends on the Equity Tax and Basic Industries schemes
Mangalore: The UTI Mutual Fund has announced tax-free dividends of 40 per cent under the UTI Equity Tax Savings Plan (UTI-ETSP) and 20 per cent under the UTI Basic Industries Fund.

A press release by UTI Mutual Fund said here on Friday that the record date for the dividend under both the schemes is September 15. Those investors who join under the dividend option of these schemes on or before September 15 will also be eligible for the dividend.

As on August 24, the NAVs under the dividend option of UTI-ETSP and UTI Basic Industries Fund were Rs21.85 per unit Rs15.53, respectively, it added.
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Eveready Industries' US$40mn GDR issue likely at year end
Kolkata: Eveready Industries India Ltd, the flagship company of the BM Khaitan Group, is likely to come out with a US$40mn GDR (global depository receipts) issue sometime at the end of October or early November, this year. The company has said that it is looking at listing the issue on the Luxembourg exchange.

ICICI Securities will be the merchant banker and the issue is likely to hit the market.

With this issue the promoters' stake in the company would drop to 47-48 per cent from the present level of 51 per cent.

At a board meeting on Friday, it was decided that 67.5 lakh convertible warrants would be issued to the promoters. The face value of one equity share would be Rs5 with a premium of Rs90 per share. The promoters will be chipping in with approximately Rs65 crore by subscribing the warrants, which would mature after 18 months. With the conversion of these warrants into equity, the promoters' stake would again rise to 51 per cent.

Eveready Industries is hoping to raise approximately Rs200-230 crore through these two issues.

It hopes to earn Rs60-70 crore by selling space at its newly developed complex at Guindy near Chennai. According to company officials, the money would be used partially to fund its ongoing expansion project at Uttaranchal. The company said that it would also use some of the funds to reduce its debts. The company would also be creating a war chest with funds, which would be used for acquiring some brands.
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RBI approval necessary for gifting of securities to non-residents
Mumbai: The transfer of gifts and securities, including shares or debentures, to residents outside India will require prior approval from the Reserve Bank of India. The value of the gift or security is not to exceed the rupee equivalent of US$25,000 during a calendar year.

A notification issued by the central bank states the gift should not exceed 5 per cent of the paid-up capital of the Indian company or breach the company's sector cap/foreign direct investment.

While making out the application to the RBI, the transferor will have to specify the relationship with transferee and the reason for the gift.

A certificate issued by a chartered accountant on the market value of government securities, treasury bills, bonds as well as shares and debentures (as per SEBI guidelines) would have to be furnished. In case of units of domestic mutual funds and units of money market mutual funds, a certificate from the issuer on the net asset value of such security would be required.
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Talbros Automotive public issue for Rs50 crore opens on Sept.1
Mumbai: Talbros Automotive Components Ltd is entering the capital market on September 1, with a public issue of equity shares of Rs10 each through the book building process, aggregating Rs50 crore. The issue closes on September 9.

"The company, a manufacturer of automotive gaskets in India, is setting up a forging unit with an investment of Rs31.82 crore to cater partly to the existing demand within the group. Further, it has entered into a joint venture with Nippon Leakless Corporation (NLK) of Japan for catering mainly to the Honda group of companies within the country and is investing Rs4.80 crore as its share in the proposed project.

"The company is also expanding its existing gasket manufacturing facility at Faridabad with an investment of Rs9.46 crore,'' an official statement said.

NLK is principal supplier of gaskets to Honda and its associates worldwide.

For the year ended March 31, Talbros Automotive Components had reported a net profit of Rs4.66 crore on sales of Rs116 crore, the statement said.

UTI Securities Ltd is the book running lead manager to the upcoming issue while Karvy Computershare Pvt Ltd is the registrar.
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