SEBI exempts Pasupati Acrylon from making open offer
Mumbai: SEBI has exempted the promoters of Pasupati Acrylon from making an open offer in the company's proposed preferential allotment of 1.4 crore equity shares to the promoter group entities. After the preferential allotment, the shareholding of the promoter group would go up from 47.43 per cent to 56.93 per cent.

The preferential allotment of 1.4 crore shares constitutes 18.07 per cent of equity capital of Pasupati.

SEBI said that the proposed allotment is in pursuance of corporate debt restructuring (CDR) mechanism and there would not be any change in the composition of the board of directors or control of the target company.

Promoter group entities Prabhat Capital Services Ltd and persons acting in concert namely Shubh Exim Ltd, Sind Wave Finance Services, Gurukripa Finvest P Ltd and Inder Overseas P Ltd are being allotted preferential shares, as per the CDR mechanism.
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Sanghi allots 2.89-cr shares to raise FDI
Hyderabad: Sanghi Industries' board of directors at a meeting on January 6 issued and allotted 2.89-crore equity shares of Rs10 each to Spinnaker Global Funds under the foreign direct investment route to raise funds to the tune of Rs28.91 crore.
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Hythe Securities to subscribe to GV Films GDRs
Chennai: The London-based Hythe Securities plan to subscribe to US$12mn (about Rs55 crore) worth of GDRs of the proposed GDR issue of G.V. Films. The issue is worth about US$20-25mn and is filed with the Luxemburg Stock Exchange, along with the Indian stock exchanges, where it has filed for an "in-principle approval".

The funds raised from the GDR would go towards part financing the Digipolis project, which includes entertainment, mega theatre, theme park, shopping mall and digital city, company officials said. The initial feasibility report has identified Mumbai as a likely location of this project.
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DCA calls for EGM to okay Kochi Refineries, BPCL swap ratio
Kochi: The Department of Company Affairs has convened an extraordinary general body meeting (EGM) of the shareholders and creditors of Kochi Refineries (KRL) and the Bharat Petroleum Corporation (BPCL) on January 21 to get the swap ratio approved by the stakeholders.

The KRL-BPCL merger is the only issue to be discussed by the EGM, which will be presided over by Justice (Retired) Santhosh Hegde. The EGM would discuss the swap ratio of 2.25:1 (for nine KRL shares four BPCL shares). B.K. Menon, managing director, KRL said, "In another two-three months time the merger will be through."

The boards of both KRL and BPCL had approved the swap ratio February last year and it was later approved by the Cabinet as well.
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Sebi approves SPrEAD
Kolkata: UTI MF has received the regulator's consent for its open-end scheme that will tap arbitrage opportunities arising out of price differences between cash and derivatives. The proposed scheme UTI-Spread between Prices of Equity and Derivative Fund (SPrEAD) will come with two plans — A and B. While some of the other fund houses have lately come up with such a product, this will be a first for UTI MF.

Plan A will try to provide capital appreciation and dividend distribution by investing chiefly in equities/derivatives and the balance in debt. Plan B will invest predominantly in debt securities, while keeping the balance in equity and equity-related instruments and derivatives.
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Citigroup arm offloads stake in VisualSoft
Hyderabad: Citibank N.A. has told the National Stock Exchange that Citigroup Global Markets (Mauritius) has sold 200,000 shares aggregating to 1 per cent of the total share capital of Visualsoft Technologies Ltd on January 4, 2006.

It was a secondary market sale after which the shareholding of Citigroup Global Markets (Mauritius) Pvt Ltd stood at 5,90,000 shares, aggregating to 2.95 per cent of the total share capital of Visualsoft Technologies.
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JSW Steel may float Rs1,200-cr rights issue
Mumbai: JSW Steel, headed by Sajjan Jindal, will raise around Rs1,200 crore through a rights issue for its 3mn tonne capacity expansion plan at Bellary, which will cost around Rs5,000 crore.

The quantum of funds to be raised, and the allotment ratio, will be finalised at a soon to be held board meeting, while the pricing of the issue will be decided by a separate committee. The company is likely to issue around five crore new shares

JSW Steel shares on Monday closed up 1.2 per cent at Rs222 on the BSE.

The company has an equity capital of Rs158 crore, while promoters hold close to 50 per cent. This means that Jindal will have to pump in close to Rs600 crore to subscribe to the issue. JSW plans to maintain a debt, equity ratio of less than 1:1. Currently, the company has a net worth of over Rs4,000 crore.
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Jagaran Prakashan to issue Rs.400-cr IPO
New Delhi: Jagaran Prakashan, publisher of the Hindi daily Dainik Jagaran, is entering the capital market to raise around Rs400 crore through a public issue of 1.15 crore shares. The issue includes a greenshoe option of 15 lakh shares.

Of the Rs400 crore, Rs80 crore has been earmarked for acquisitions and strategic alliances, Rs137 crore for capital expenditure and another Rs40 crore for outdoor advertising.

Jagaran is said to be in talks with media companies for strategic alliances. The company plans to increase its colour printing facility, automation and glazed printing from the proceeds of the issue.

The company is expected to enter the market in the last week of January. The offer price would be arrived at by the book-building route. The Gupta family holds a 74 per cent stake in the company, while 26 per cent is held by the Ireland-based media group, Independent News & Media (INM).

INM acquired the stake in July '05 at Rs467 per share. Following the issue, the promoter's holding would come down to 59 per cent, while INM would be left with around 20 percent.
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