CSE invites merchant banker for divestment
Kolkata: The Calcutta Stock Exchange has started the process of divestment of its 51 per cent stake. It will soon select a merchant banker consultant and has issued a notice, inviting expression of interest from those keen to advise the bourse for divestment of its 51 per cent stake.

The divestment of 51 per cent is mandatory to meet the Securities and Exchange Board of India de-mutualisation scheme.
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StanChart Mutual Fund plans Enterprise Equity scheme
Kolkata: The Standard Chartered Mutual Fund will soon introduce the Standard Chartered Enterprise Equity Fund, a close-ended scheme with a duration of 18 months.

The scheme will enable investors to avail themselves of long-term capital gains and indexation benefit, and will aim at growth of capital from a portfolio of mainly equity and equity-related instruments. It may also invest in debt and money market instruments to generate income.

The NAV of the scheme will be generally declared on Wednesdays.

At least 65 per cent of the net assets is likely to be allocated to equity and equity-related instruments. Investment in derivatives will be up to the limits permitted by SEBI's regulations governing mutual funds. The MF has named Kenneth Andrade and M. Kannappan as the fund managers.
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UTI Mutual introduces leadership equity fund
Mumbai: UTI Mutual Fund has launched a new equity-oriented scheme `UTI-Leadership Equity Fund', which will invest in leading companies in various sectors and industries.

According to U.K. Sinha, managing director and chief executive officer of UTI Asset Management Company, the scheme plans to invest 65 per cent of the corpus in `leaders' and 35 per cent in `potential leaders' in various industries and sectors. He said the UTI-Leadership Equity Fund scheme was expected to set new "benchmark" in terms of the amount collected from the investors.
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ING Group scheme bets on fund managers
Mumbai: ING mutual fund is betting on fund managers as opposed to investment in asset classes. The ING Group is coming out with a scheme, the `Optimix Income Growth Multi Manager FoF (Fund of Fund) scheme' that focuses on investment managers with itself and at other funds to deliver strong results.

The draft prospectus of the new scheme, awaiting clearance by SEBI, says it is an "open-ended hybrid FoF scheme", where the investment style follows the Optimix Multi Manager investment process. (FoF invests in other mutual fund schemes and various securities of companies).

ING's Web site says,, "Optimix rigorously monitors economic conditions, financial markets and investment managers to ensure the portfolios are sufficiently robust to withstand market fluctuations." The emphasis is on investment managers. Schemes managed by high-profile fund managers, who have past record of giving high returns, are preferred, as per the Optimix investment principle.
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Nitesh Estates to get Siachen Capital's US$100mn funding
Bangalore: Siachen Capital LLC, a New York-based private equity firm, will invest US$100mn in two phases in Nitesh Estates, the real estate arm of the Bangalore-based Nitesh Group.

In the first phase the US company would invest US$30mn. This investment through an SPV route would provide Nitesh Estates with base capital required for its larger projects and reduce its exposure to debt, said a company release.

The promoters of Siachen Capital Fund include Miguel Forbes of Forbes magazine group and Jack McCue. Jack McCue, managing director, Siachen Capital LLC, said: "We are bullish about the real estate outlook for India in the next five years with strong demand coming in from the burgeoning middleclass, IT and BPO sectors. We believe this partnership with Nitesh Estates is a strategic global alliance".
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Royal Orchid plans IPO to fund expansion
Bangalore: Royal Orchid Hotels (ROHL), a hospitality chain, is raising Rs102-122 crore from the capital market to set up two hotels in Pune and Hyderabad.

The initial public offering will be made through a 100-per cent book building process. Post issue, the promoters' holding will come down from 91 per cent to 67.8 per cent (including an eight per cent investment by WestBridge Ventures II Investment Holdings.)

Chander K. Baljee, chairman and managing director of the company, said the Rs 75-crore expansion would enable Royal Orchid Hotels to promote its brand through organic and inorganic routes. The company has four hotels through ownership and management contracts, which include its flagship five star Hotel Royal Orchid, Royal Orchid Harsha and Royal Orchid Central in Bangalore and Royal Orchid Metropole in Mysore - a State-owned enterprise.

Baljee said the projects at Hyderabad and Pune together would have 172 rooms and would cater to business customers. He said Royal Orchid will focus on five star and four star business class hotels, as this segment is poised for a high demand.While the Hyderabad project is a joint venture, the Pune hotel will be owned and managed by ROHL.
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Videocon to come out with mega FCCB issue to fund expansion
Kolkata: Videocon will soon release a mega FCCB issue to finance its expansion plans.

Videocon said it has appointed a syndicate of global banks such as Barclays Bank, DBS Bank, Lehman Brothers and CLSA to facilitate the proposed transaction.

The issue size will be finalised around the middle of this month. The total deal is expected to be completed by the later part of January," the chairman's office said. According to sources, the size of FCCB issue could be in the range between US$500-750mn in one or more tranches in line with the aggregate investments planned for its glass panels, consumer durables components and energy-related business.
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