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13 FIIs registered with SEBI in October
Mumbai: While foreign institutional investors (FIIs) are reported to have been net sellers in the domestic equity markets in October 2005, more FIIs have entered country's bourses since then.

Last month, 13 new FIIs, including the leading international private equity investor Blackstone, registered with the Securities and Exchange Board of India (SEBI).

With these, the number of FIIs registered with SEBI has increased to 806 as on November 3. Of this, 166 received SEBI registration this year. The new FIIs are from the US, the UK, Norway, Kuwait, Malaysia and Singapore.

Most of the FIIs, entering now are pension or retirement funds who are long-term investors and do not pull out very soon, say analysts.
In October, FIIs were net sellers in equity to the tune of Rs 3,694 crore. But during the year so far, they were net buyers in equity worth Rs 34,094 crore ($7.81 billion).
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MoF changes ELSS rules
New Delhi: The finance ministry has made changes in the rules for investment in equity linked savings schemes (ELSS) of mutual funds (MFs).

Henceforth, new ELSS plans launched by mutual fund houses will have to be close-ended schemes that would have to be wound up 10 years after allotment of units.

Also, investors would not have the luxury of timing their entry into a plan after watching the scheme's performance in the market as the fund houses can announce the repurchase price only a year after the allotment of units and thereafter on half-yearly basis.

Also a Central Board of Direct Taxes (CBDT) notification has said that the schemes could be wound up before completion of the stipulated 10 years if 90 per cent or more of the units are repurchased before completing 10 years of the plan.
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Bombay Rayon plans IPO — fix price band fixed at Rs.60-70 a share
Mumbai: Bombay Rayon Fashions is planning an initial public offering of 1.35 crore equity shares of Rs10 each. The price band for the issue has been fixed at Rs60 to Rs70 per equity share. The company hopes to raise between Rs85 crore and Rs94 crore through the issue which will open on November 11 and close on November 17.

The company is planning to raise the funds to part-finance its new project being set up at a cost of Rs161.72 crore.

The project coming up at Doddaballapur, near Bangalore will have a daily yarn dyeing capacity of 2,000 kg, 48 looms of weaving capacity, 93,999 metres of processing capacity and 22,000 pieces of garment production capacity. The project is likely to go on stream by March 2006.

Among institutions, Export-Import Bank of India has acquired 10 lakh equity shares of Rs10 each (constituting 2.82 per cent of the pre-issue capital) at a price of Rs50 a share (including premium) aggregating to Rs5 crore on preferential basis, the company said.

During 2004-05, the company earned total revenue of Rs109.65 crore and net profit of Rs7.26 crore. For the quarter ended June 30, 2005, the total revenue of the company was Rs44.28 crore and net profit was Rs4.77 crore.
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Crown acquires 3.45 per cent of HDFC Bank
Mumbai: Crown Capital, a UK based foreign institutional investor, has acquired 3.45 per cent stake in HDFC Bank for Rs672.55 crore. It bought over 26 lakh shares in two block deals.

Crown Capital bought 9 lakh shares at Rs626.50 per share from Merrill Lynch Capital Market and another over 17 lakh shares at Rs633 per share from CLSA Mauritius Ltd.

At present, Bennet Coleman is the only non-promoter, which holds 5.19 per cent stake in the bank.
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Matrix Labs to issue preferential offer to ex-promoters of Docpharma
Hyderabad: Matrix Laboratories is issuing 35 lakh equity shares of Rs 2 each at a price of Rs225 per share to the erstwhile promoters of the Belgium-based Docpharma NV, which was recently acquired by the former.

Matrix Labs has said that the allotment, subject to a three-year lock-in, will be made on a preferential basis in accordance with the SEBI guidelines, will fetch the company Rs78.75 crore, and would be used to meet corporate requirements.
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Granules India plans preferential offer
Hyderabad: Granules India's board of directors has approved the issue of warrants not exceeding 10 per cent of the paid-up equity share capital to the promoters.

The share warrants are being proposed at a price of Rs102.50 per warrant, subject to the approval of the shareholders at the ensuing annual general meeting, the company said.
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Gold prices may continue rising as US dollar remains strong
Mumbai: Traders says gold prices may continue to rise, as the dollar remains strong against the rupee. Normally a higher dollar globally causes gold prices to drop. However, the gold price in India would depend on the extent that this drop in price is offset by higher imports.

With the rupee trading at Rs45.50 to the dollar, gold was trading at above Rs6,800 per 10 gm on Saturday. The hallmarked one-kg gold bar is priced higher at Rs7,200 per 10 gm.

Some of the gold now available with banks was being imported when the gold price and the rupee-dollar exchange rate were both favourable.
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Block deals seen in HDFC Bank
Kolkata: HDFC Bank witnessed some block deals on the BSE and NSE leading to a 4.04 per cent change in its equity structure.

Merrill Lynch Capital Markets Espana S.A.S.V. sold little over 45.62 lakh shares of HDFC Bank to Crown Capital Ltd in a block deal on the NSE at a price of Rs629.50 a share. In another deal on the BSE, Merrill Lynch Capital Markets Espana S.A.S.V. sold 90 lakh shares at Rs626.50 each to Crown Capital.

Merrill Lynch Capital Markets Espana S.A.S.V. as on September 30, 2005 held around 1.44 crore shares of HDFC Bank, representing 4.60 per cent of the paid-up equity of the bank. Crown Capital also bought 17.17 lakh shares of HDFC Bank today through a separate bulk deal on the BSE from CLSA Mauritius at Rs633 a share.

According to market sources, CLSA Mauritius may have sold it on behalf of its clients.

The promoters - HDFC and HDFC Investments - jointly hold 22.08 per cent in HDFC Bank. Apart from Merrill Lynch Espana S.A.S.V., the prominent FII investors, who held more than one per cent in the stock, are Small Cap World Fund Inc (2.40 per cent), Deutsche Securities Mauritius (3.58 per cent), New Economy Fund (1.99 per cent) and Indocean Financial Holding (1.28 per cent).

Bennett & Coleman Group held 5.19 per cent stake in the bank and the public holding was placed at 12.31 per cent as on September 30, 2005.
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