MFs beat FIIs in equity buying
Mumbai: Mutual funds have beaten foreign institutional investors in equity buying. FIIS have been net sellers for seven trading sessions this month selling Rs 1,796.9 crore of equities in April 2006. On the other hand domestic mutual funds are the new leaders in the market and have netted purchases of Rs 1,364.99 crore so far this year.

When the Sensex moved from 10,000 to 12,000, FIIs were net buyers of equities worth Rs 10,366.2 crore. Mutual funds, on the other hand, bought roughly a fifth of that at Rs 2,470.15 crore.

However, the run between 11,000 and 12,000 has been mostly fuelled by mutual funds. FIIs bought a total of Rs 397.7 crore and mutual funds beat that by over Rs 2,700 crore at Rs 3,160.04.
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Reliance IPO subscribed more than 47 times
Mumbai: Reliance Petroleum's (RPL) public issue has generated a demand of over Rs 1.32 lakh crore worth of shares, beating ONGC's IPO in 2004, in which the investor bid was to the tune of Rs 73,000 crore.

The IPO for 45-crore shares was oversubscribed by over 47 times, about an hour before the official closing of the issue at 9 p.m. on Thursday. The price band for the issue was Rs 57-62 per share.

A Reliance spokesman said the company expects the issue to get oversubscribed by 55-60 times once applications from the small centres also came in.

Out of the total of 45 crore shares on offer through the IPO, 30 per cent is reserved for retail investors. While the Qualified Institutional Buyers (QIB) portion of the issue was oversubscribed by over 30 times, the retail portion was oversubscribed by about seven times.
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StanChart Mutual introduces Enterprise Equity Fund
Mumbai: Standard Chartered Mutual Fund (SCMF) has launched the `Enterprise Equity Fund', to invest in the IPOs on NSE. The fund is a three-year close-ended equity fund that will be converted into an open-ended fund on completion of three years. The NFO opened on April 19 and will close on May 16. The fund is for a minimum subscription of Rs 5,000.

The fund will aim to benefit by buying into IPOs that will be launched in the coming years and then even sell the allotment on listing. The firm aims to carry out due diligence while investing and that the fund will not invest in `penny stocks' and IPOs which do not have QIB reservation.

There is no entry load for any amount on Enterprise Equity fund. However, the exit load for redemptions made from the date of allotment to June 30, 2007 will be 3 per cent, from July 1, 2007 to June 30, 2008 will be 2 per cent and from July 1, 2008 to December 31, 2008 will be 1 per cent. The fund will follow the latest SEBI guidelines on issue expenses.

Kenneth Andrade, fund manager, Standard Chartered AMC Pvt Ltd, will manage the fund.
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Gangotri Textiles' to float IPO next month
Coimbatore: Gangotri Textiles, manufacturers of the `Tibre' brand trousers, is planning public issue that will hit the market next month.
The company, which has filed its draft red herring prospectus with the SEBI for its public issue, has received the latter's approval, according to a press release from the company.

The company has fixed May 6 as the record date for payment of interim dividend of 15 per cent (75 paise per share of Rs 5 face value) and for determining the shareholders eligibility to get shares under the reserved portion.

The company aims to raise Rs 55 crore through a 100 per cent book building process. The public issue is to part finance its expansion-cum-integrated production projects involving spinning, weaving, processing and garmenting facilities.
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Govt to activate bond market
New Delhi: The Government is planning measures to make the country's fledgling corporate bond market vibrant. On the R H Patil Committee's recommendations, the Government has put in place necessary mechanisms to enable corporate bond market take off in a big way.

The Reserve Bank in its credit policy took the first step for establishment of vibrant corporate bond market by deciding to set up 'when issued market' (WIM) for government bonds.

WIM is used to determine price and quantity of bonds, much before their auctioning process begins.

A sort of book-building process would be adopted to find out quantity and price of bonds based on the absorption capacity of the market.

WIM will give much more efficient and transparent yield-curve for government bonds on which corporates can benchmark their papers.
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Govt to raise Rs.10k crore from market
New Delhi: The Centre will raise Rs10,000 crore by selling bonds on April 25 this month.

While Rs6,000 crore will be raised through re-issuance of Government Stock 2012 carrying an interest rate of 7.4 per cent, Rs 4,000 crore would be raised through re-issuance of Government Stock 2032 that carries a coupon rate of 7.95 per cent, an official release said.

The bonds will be sold through price based auctions using multiple price method.

Up to 5 per cent of the notified amount of the sale of both the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility.
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