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Premji to reduce holding in Wipro at `appropriate stage'
New Delhi: IT czar, Wipro Ltd's Chairman, Azim Premji, has indicated that he would reduce his existing holding of over 82 per cent in the company at an "appropriate stage", saying the move would enable more float in the stock. He, however, did not specify a timeframe.

"There is an intent to reduce the holding from over 82 per cent at an appropriate stage. This would enable more float in the stock," Premji said at an interactive session with the media here.

"At an appropriate stage we will come down in the shareholding but I cannot give definite timeframe. I understand in large companies, large float is desirable," he pointed out.

Responding to a query on the Securities and Exchange Board of India's recent norm that requires listed companies to maintain at least 25 per cent shareholding with the public for the purpose of continuous listing, he said, the company was taking a technical interpretation of it, although he did not think that the rule applied to the company. He, declined to comment any further on the issue.

The public holding in Wipro is currently about 17.6 per cent.
On competition from other emerging countries in the ITES space where India currently has a stranglehold, he said Eastern Europe had strong technical skills, and the company was looking at countries such as Bulgaria, Hungary and Romania. He said that the company, which has centres in Beijing and Shanghai to serve international customers, also plans to expand in China. "The domestic market in China is more competitive. I would much rather use China to serve international customers. We will expand in China because customers are forcing us to. However, there are Intellectual Property related concerns," he said.
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Prajay Engineers gets shareholder nod to raise US$75mn
Hyderabad: Prajay Engineers Syndicate Ltd plans to go in for an FCCB/ADR/GDR issue in order to raise US$75mn.The shareholders of the company have given their nod through a special resolution at the company's 11th annual general meeting, held on August 25.

The company has informed the Bombay Stock Exchange about the shareholder's approval for an increase in borrowing powers from Rs20 crore to Rs400 crore, also mortgage and charge for borrowing up to Rs400 crore.

The proposed preferential offer of 21 lakh warrants, convertible into 21 lakh equity shares at a face value of Rs10 each at a price of Rs63.50, arrived at as per Security and Exchange Board of India guidelines, was also approved by the special resolution.

The meeting also approved the Audited Profit and Loss Account for the year ended March 31, 2005.

The company has also approved a dividend at Rs1.20 per share (12 per cent) for the financial year 2004-05.
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Himatsingka board to meet Sept.7 for bonus issue, share split
Bangalore: Silk fabric manufacturer and exporter Himatsingka Seide Ltd has said its board of directors will meet on September 7 in order to consider a stock split and/or a bonus issue.

The board will also consider raising funds through options such as foreign currency convertible bonds (FCCBs) or global depository receipts (GDRs) to finance the company's growth plans, Himatsingka has said in a notice to the Bombay Stock Exchange.

Himatsingka recently announced that it planned to set up a Rs400-crore bed linen fabric unit at the Hassan Special Economic Zone in Karnataka. The Karnataka Government has allotted 100 acres at Hassan SEZ for Himatsingka's new unit that would have a capacity of 20 million meters a year.

Construction activity at the new project is expected to start by September and the project is likely to be completed within 12 months.
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Shree Renuka Sugars mulls IPO to fund Rs.128 crore expansion
Mumbai: Shree Renuka Sugars Ltd is planning to make a come out with a public issue of equity shares, at a premium aggregating Rs100 crore, along with a green shoe option aggregating Rs10 crore, through a 100 per cent book building process.

The IPO will meet part of the finance required for its Rs128.50-crore expansion project.

The issue is expected to hit the market in September/October.

The expansion project involves tripling the cane crushing capacity from 2,500 TCD to 7,500 TCD and doubling the distillery capacity from 60 KLD to 120 KLD, at its plant in Munoli at Belgaum in Karnataka. This plant also has a 20.5 MW co-generation plant and a 1,000 TPD raw sugar-processing refinery, company release said.

The company is also setting up a 15-MW co-generation power plant at Mohanrao Shinde Cooperative Sugar Factory in Maharashtra
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Simbhaoli Sugar rights issue opens Sept 9
Mumbai: The forthcoming Simbhaoli Sugar Mills Ltd rights issue, will open on September 9 and close on October 8.

Company officials said that 87,84,622 equity shares of Rs10 each would be offered for cash at a premium of Rs50 (issue price of Rs60) per equity share on rights basis to the existing equity shareholders of the company in the ratio of four equity shares for every five equity shares (4:5) held as on August 26 (record date) aggregating to Rs 5270.77 lakh.

The funds so raised would be deployed to part finance the capital expansion plan already under way to expand existing plant capacity from 7,500 TCD to 9,500 TCD at Simbhaoli (Western UP) and to service its long-term working capital needs, he said.

The company is expanding its Chilwaria Unit (Eastern UP) capacity from 3,800 TCD to 6,000 TCD.

The company has announced setting up of a new sugar plant in Brijnathpur village in Ghaziabad district (UP), the funding plan of which will be disclosed shortly.

The new plant will start sugar production in October 2006.
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