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Bull run at the markets: All T-group stocks in placed in price band from today
Mumbai: In a bid to check the unabated bull run in the markets, stock exchanges have tightened the price band mechanism to curb abnormal movements in share prices. All trade-to-trade (T-group) and penny stocks have been placed under five per cent price band from Wednesday.

In the T-group, trades in shares will be allowed only on payment and delivery basis. With this change, more than 1,000 out of some 2,500 stocks traded daily on the BSE will come under the five per cent price band.

On the NSE, more than 125 stocks out of an average of 750 stocks traded will figure in this price band. The NSE said that till now it has shifted 239 stocks to the T-group in the last few months.

In addition, the exchanges have also brought 39 securities that had no price band so far, under the 20 per cent price band from Wednesday.

The exchanges are also moving more securities to the T-group in order to avoid excessive speculation. They are also suspending trading in securities not complying with listing agreements.

From Friday, the BSE has shifted 53 securities while the NSE has shifted eight more stocks. In order to avoid excessive speculation in companies not complying with the listing norms, the BSE has suspended trading in 39 stocks from Thursday, as they have not paid the listing fee for the current fiscal.

The NSE in a statement said that till now it has suspended 124 companies for non-compliance of the listing agreement. It has also suspended trading in three companies and issued show cause notice to 13 companies for non-compliance with the provisions of the listing agreement.
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RBI allows FII purchases in Mahindra Gesco, Tata Tea
Mumbai: The Reserve Bank of India has notified that foreign institutional investors (FIIs) can now purchase equity shares and convertible debentures of Mahindra Gesco and Tata Tea Ltd under the portfolio investment scheme (PIS).

The equity shares and convertible debentures can be purchased through the primary markets and stock exchanges up to 30 per cent of the paid-up capital of Mahindra Gesco and 35 per cent of Tata Tea Ltd.

Both these companies have earlier passed resolutions to this effect at their board of directors' and general body meetings, said a release from the central bank.
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Hindalco to raise Rs.2,500 crore through rights issue
Mumbai: The board of Hindalco Industries is raising funds to the tune of Rs2,500 crore, for its brownfield expansion plans in Jharkhand, Belgaum and Hirakud (Orssa), through a rights issue.

The issue will be in the ratio 1:4. The company has said that the price per share for the rights issue would be decided by the board and announced at a later date.

Analysts said that considering the existing equity of Rs92.78 crore, the firm will offer around 23.17 crore shares of the face value of Re1 each. If the entire amount of Rs2,500 crore is raised, the rights issue will be priced at Rs108 per share.

Hindalco has planned expansion projects with an investment of Rs12,000 crore of which Rs7,050 crore has been tied up through debt, while Rs2,500 crore will accrue through the rights offer.
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Piramyd Retail files red herring prospectus with SEBI
Mumbai: Piramyd Retail intends to enter the capital market with a public issue of 90 lakh equity shares of Rs10 each for cash, through a 100 per cent book building process and has accordingly filed a draft red herring prospectus with the Securities and Exchange Board of India for the same.

The issue includes a promoter contribution of 40 lakh equity shares and net offer to the public of 50 lakh equity shares. The net offer to the public will constitute 25 per cent of the fully diluted post issue paid-up capital of the company. The company proposes to allocate 50 per cent of the net issue to qualified institutional buyers and 15 per cent to non-institutional bidders and 35 per cent to retail individual bidders.

Piramyd Retail Ltd plans to use the funds to expand its lifestyle retail store chain `Piramyd Megastores' to 12 from the current four and increase the number of its TruMart Supermarket to 45 from the current eight by 2007.

TruMarts offer food, home and personal care products.
According to company officials, tehcompany's current plan is to concentrate on Mumbai and Pune, where it has already built a significant presence for TruMart. They said that the company proposes to open 13 additional TruMart stores during 2006 and 24 TruMart stores over 2007.

The book running lead managers for this issue are Enam Financial Consultants Private Ltd, DSP Merrill Lynch Ltd and Edelweiss Capital Ltd.
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