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Cholamandalam drops pref offer to DBS
Mumbai: Cholamandalam Investment & Finance Company (CIFCL) is making changes in its deal with Singapore's DBS Bank to comply with the changes in Sebi's new takeover rules.

CIFCL of the South-based Murugappa group — has dropped the proposed preferential equity offering to DBS. While DBS will become an equal shareholder in the company through an open offer and stake purchase from the Murugappas, the preferential offer, which would have enabled fund flow into the company, has been abandoned.

This is because SEBI could consider the Murugappas and DBS to be "persons acting in concert" — an interpretation that will trigger the new takeover/ownership norms.

The Murugappa group owns 55 per cent of the shares in CIFCL, and the balance is held by the public. Under the new SEBI norms, which became effective from February 1, promoters holding 55 per cent cannot further raise their stakes through a creeping acquisition or preferential issue.
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Two wheelers notch up record sales in lean Sept
Mumbai: Backed by new launches like TVS Star City, Victor Edge and Hero Honda Glamour. Hero Honda, Bajaj Auto (BAL) and TVS Motors the biggest players in the Indian two-wheeler market recorded their highest ever monthly motorcycle sales in September '05.

The strongest performance was reported in the motorcycle segment. While Hero Honda sold 2.66 lakh motorcycles, BAL sold 1.8 lakh and TVS 76,000 in September 2005.

The top-three two-wheeler companies have reported an average 20 per cent growth in the first half of '05 and expect the same momentum in the second half. BAL recorded the fastest growth with volumes jumping 34 per cent followed by Hero Honda at 16.84 per cent and TVS Motor at 15.5 per cent for the same period.
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Air Deccan signs on merchant bankers for its IPO
Bangalore: Air Deccan has signed up Enam Securities, ABN Amro Rothschild, JP Morgan, ICICI-Securities and SBI Capital Markets as merchant bankers for its proposed $200 million to $250-million IPO, market sources say.

The airline is looking at floating about 25 per cent of its equity to give it a valuation between $800 million and $1billion.

Air Deccan is targeting Rs1,000 crore in revenues this fiscal — its second full year of operation — with a fleet of 30 planes and a network of 40 destinations and 160 flights a day. The airline is planning to purchase 32 new generation A320s and 30 ATR-72s, apart from replacing older leased planes with new ones also on lease. This mix of lease and buy will make Air Deccan nearly 100 aircraft strong by '10.

Sources said the initial public offer is likely to hit the market early '06.
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Exim Bank to turn equity investor
Mumbai: The Export-Import (Exim) Bank of India is turning into an equity investor and isplanning to pick up stakes in medium-sized companies in textiles, pharmaceutical, chemical, biotechnology, information technology and auto-component sectors.

Exim Bank has identified the companies it wants to buy into and a slew of deals is likely to take place over the next few months. The total investment in these deals will be over Rs100 crore.

So far, the bank has been financing domestic companies by extending loans and was not allowed to pick up equity stakes in the companies.

With the recent amendment of the Exim Bank of India Act this year, the bank has been allowed to pick up equity stakes in companies.

Exim Bank will pick up stakes in small and medium companies that are not listed on the bourses.

Exim Bank recently acquired a three per cent equity stake for
Rs5 crore in Bombay Rayon Fashions, an unlisted fabrics and garment maker. It bought one million shares of Bombay Rayon for Rs50 a share at a premium of Rs40, and will offload the stake in the market after the company's IPO.
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Templeton plans new fund for smaller companies
Kolkata: Franklin Templeton is planning to launch a close-ended equity fund aimed at investing in mid- and small-cap companies. The proposed Smaller Companies Fund, which will mature after 60 months from date of allotment, will be benchmarked against the CNX Midcap index.

Upon maturity, the fund will automatically turn open-ended and repurchase will be allowed on all business days. Meanwhile, to provide liquidity to investors it will provide repurchase facility at six-month intervals till maturity. Investors may redeem on stipulated dates.
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HSBC MF plans Incredible India fund
Kolkata: HSBC MF is launching the equity fund- Incredible India Fund - with a view to generating long term capital growth by investing in sectors that play an important role in India's reform process and economic development.

The sectors identified by the offer document are, consumption, infrastructure, outsourcing and global competitiveness.

The fund will attempt to take a medium term view on these opportunities and will try to run a more concentrated portfolio.
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Polar Pharma suspension notice withdrawn
New Delhi: The BSE has withdrawn the suspension of dealing in securities of Polar Pharma on the exchange.

BSE had issued the notice as it had not complied with certain provisions in the listing agreements.
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Gujarat Apollo riding on order hopes
Ahmedabad: Gujarat Apollo firmed up on expectation of a greater order book size and new export potential.

Market sources say the road equipment manufacturer is witnessing higher flow of contracts awarded to it as the activity in the domestic road sector increases.

According to the management, the company has also been receiving more export enquiries. Apart from growth prospects, its relatively low P/E of around 10, compared to its peers which are posting a P/E of over 20, is an added attraction.
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Solvay Pharma's decline arrested
Solvay Pharma is returning to former levels with the return of buoyancy in the mid- and small stocks.

With a P/E of 7.5 the scrip is thought to be amongst the cheapest in the MNC pharmaceutical stocks. Its improving fundamentals appear to have prompted return of some interest in the counter, dealers said.
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Empire Industries up
The Empire Industries stock was quoting at Rs197 on Monday after fluctuating between the day's high of Rs197.70 and low of
Rs179.70.

The company's glass manufacturing, machine tools and chemicals divisions are reportedly doing well.

A section of market players are betting on its underlying value in property in Mumbai, estimated at around Rs750 crore.
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IFC acquires 9 per cent stake in AP Paper Mills
Mumbai: International Finance Corporation (IFC) has acquired 9.61 percent stake in Andhra Pradesh Paper Mills translating into 22,88,421 equity shares of the total paid up capital of the company on September, 21. The mode of acquisition is through renunciation of rights.

Digvijay Investments has also acquired 12,37,566 shares, aggregating to 5.20 percent of the total share capital of Andhra Pradesh Paper Mills.
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