Rel. Capital and Rel. Capital Ventures merger ratio decided at 5:100
Mumbai: Reliance Capital's, board of directors have approved a proposal for amalgamation of Reliance Capital Ventures (RCVL) with Reliance Capital. The proposed scheme of amalgamation envisages a share exchange ratio of five equity shares of Rs10 each of Reliance Capital for 100 shares, of Rs10 each, of RCVL (after the allotment of shares pursuant to the demerger of Reliance Industries).

The share exchange ratio is based on the number of shares of the company held by RCVL and as recommended by KPMG, the release said. The shares of the company held by RCVL will be cancelled under the proposed scheme of amalgamation. The fully diluted equity capital of the company will remain at approximately Rs245 crore, the release added.
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Goa Carbon plans Rs.37 crore rights issue
Panaji: The second largest manufacturer of calcined petroleum coke in the country - Goa Carbon, part of the Rs1,000 crore Dempo group, has filed a draft letter of offer with Sebi for its rights issue in the ratio of 1:1.

According to a release issued by the company, the rights issue to existing shareholders is for 46 lakh shares, of Rs10 each, at a premium of Rs70 per share aggregating Rs36.80 crore.

On completion of the rights issue, the equity of Goa Carbon will go up to 92 lakh shares of Rs10 each. The promoter group holds 56.16 per cent of the equity.

According to Shrinivas Dempo, executive chairman, Goa Carbon, the company is on the turnaround path and has posted a profit of Rs10.42 lakh (unaudited) on a topline of Rs2,864.98 lakh for the first quarter ended September 2005.
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Era Constructions makes preferential allotment of warrants
Mumbai: Era Constructions has allotted 44.90 lakh shares as warrants on preferential basis to various investors at Rs135 each carrying the right to subscribe to an equal number of equity shares of Rs10 each in the company on conversion within a period of 18 months from the date of allotment for cash, the New Delhi-based company informed the Bombay Stock Exchange.

The company has allotted the 2 lakh warrants to Merillina Enterprise, 4 lakh warrants each to Eden Reality and Him Reality.

Another 8.9 lakh warrants were allotted to Hi-point Investment & Finance, 11 lakh warrants to Rakesh Gupta and to 15 lakh warrants to Samurai Global.
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Dhampur Sugar declares 10 per cent dividend
Mumbai: Dhampur Sugar Mills has declared a 10 per cent dividend for 2004-05. The company has announced its expansion plan with an investment of Rs405 crore including a green field sugar project, expansion of power generation, refinery and alcohol manufacturing capacities at its existing sugar plants.

The company has also allotted 22.84 lakh compulsorily convertible preference shares (CCPS) of Rs100 each to ICICI Bank Ltd.
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Nitco Tiles to come out with IPO
Mumbai: Nitco Tiles has filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of one crore shares of Rs10 each to be determined through a 100 per cent book-building process.

The company plans to use the funds from the IPO to expand its existing manufacturing facilities of ceramic floor tiles. The company is also planning to install windmills to reduce power costs.

The company has appointed UTI Bank, IL&FS Investsmart and Karvy as the book running lead managers for the issue.
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HDFC MF launches long term close-ended fund
Mumbai: The HDFC Mutual Fund is launching a long-term equity fund, which is a close-ended equity scheme. The fund will mature after five years with automatic conversion into an open-ended scheme upon maturity. Investors can choose to invest in both growth and dividend options of the scheme.

HDFC's long-term equity fund will build and maintain a diversified portfolio of equity stocks that have the potential to appreciate in the long run. Companies identified for selection in the portfolio are those with a potential to grow at a reasonable rate in the long-term, the fund said in a release.

The scheme will have a maturity period of five years, ensuring that fund managers have the flexibility to choose stocks with long-term perspective to maximise the chances of generating long-term wealth.

The new fund offer opened on December 30, 2005 and closes on January 27.
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Principal PNB AMC introduces infrastructure & services fund
Mumbai: Principal PNB Asset Management Company has launched its mutual fund scheme `Principal Infrastructure & Services Industries Fund', which will invest in equities of companies in the infrastructure and services sectors.

According to the company the new fund offer is aimed at giving maximum returns by investing in companies in the two key sectors of the Indian economy — infrastructure and services industries.

Principal Infrastructure & Services Industries Fund is the only diversified equity fund, which will invest jointly in infrastructure and services industries.

The new fund offer will invest in infrastructure companies involved in capital goods, construction, cement, IT hardware and commercial vehicles and in companies in services such banking and finance, healthcare, hotels, media and entertainment, and software.

These products will help increase its total assets under management from Rs7,000 crore to Rs15,000 crore by the end of this calendar.

The new fund offer gives the investor two investment options — growth and dividend. The period will be from January 9 to 31.
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India-specific ETF lists on LSE
Kolkata: The India Capital Growth Fund has said that it has placed 75 million shares at 100 pence to institutional and other investors at the year-end and has started trading on AIM of the London Stock Exchange. This is the first exchange- traded fund on the LSE exclusively directed towards mid-cap Indian stocks.

The company seeks to provide long-term capital appreciation by investing in companies based in India. The India Capital Growth Fund (ICGF) is a new close-ended investment company registered and incorporated in Guernsey. Polar Capital LLP is the acting fund manager to the company as India Investment Partners (IIP) is yet to receive necessary permission to take over as fund manager from the UK market regulator, Financial Services Authority (FSA).

Caledonia Investments plc, a UK investment trust company, has subscribed for 22 per cent of the ordinary shares of the company and also owns 43 per cent of IIP, with the balance of the shares in IIP being owned by management.
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Nitin Spinners to raise Rs.49 crore through IPO
Mumbai: Nitin Spinners, engaged in manufacturing combed and carded cotton yarns used for making undergarments, terry towels, denims and others products, plans to raise Rs49 crore through an initial public offering. The price band of the issue, to be made through a book-building process, has been fixed between Rs18-21.

The issue opens on January 6 and closes on January 12, the company said in a release.

Of the total issue size of Rs49 crore, Rs9 crore is the promoters' contribution. The fund raised through IPO is to implement an Rs150-crore project.

The equity shares of the company would be listed on the Bombay Stock Exchange and the National Stock Exchange.

Nitin Spinners declared a total income Rs81.74 crore in 2004-05 while its net profit was Rs2.88 crore. In the first half of current fiscal, total income was Rs49.67 crore and net profit Rs3 crore.
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