SEBI gives go ahead for MCX IPO
Mumbai: The Securities and Exchange Board of India has given its go ahead to the initial public offering (IPO) of commodity exchange MCX. Soon MCX would be the country's first commodity exchange to be listed.

Jignesh Shah, CEO and managing director of MCX, said that the exchange is going ahead with the issue despite the weak market sentiment. He said the exact price band for the issue would be finalised only after discussions with the merchant bankers of the issue, which include Citigroup, DSP Merrill Lynch and Kotak Mahindra.

The original size of the IPO would comprise 50 lakh shares. As per the original plan, the company hopes to mobilise about Rs300 crore through the IPO, which would put the issue price in the region of Rs600 per share. Though Shah did not reveal the exact timing of the IPO, he said the company "will not defer" it. He said leading global fund house Fidelity had taken a 9.24-per cent stake in the company at Rs600 per share with a one-year lock-in arrangement.

MCX is promoted by Financial Technologies (India) Ltd, which is a listed entity. Its stake in MCX will come down to 53.75 per cent from 64.30 per cent after the IPO. Several other public sector banks including State Bank of India and its associate banks, Nabard and the National Stock Exchange also hold stakes in the company.
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Vivimed gets nod for $75-million global offer
Hyderabad: Shareholders of Vivimed Labs have authorised the board to raise funds of up to $75 million through a global offer. The company informed the stock exchanges on Wednesday that the board in consultation with the lead managers would decide the instrument, price and terms and conditions of the global offer in accordance with the existing guidelines.
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Carlyle Group raises $668 million for Asia fund
Mumbai: Global private equity firm the Carlyle Group has said it raised $668 million for Carlyle Asia Growth Partners III (CAGP). The fund invests in promising private companies at an expansionary stage with solid growth track records across industry sectors in China, India, Japan and Korea.

Carlyle Asia Growth Partners is the third fund managed by the Carlyle Asia Growth Capital group, which has an aggregate committed capital of approximately $1 billion.

The group has already made three investments out of the new fund, including $20 million in Claris Lifesciences (a pharmaceutical company in India), $25 million in Credit Orienwise (the largest private credit guarantee company in China) and $27.5 million in Anxin Flooring (the number one manufacturer and distributor of solid wood flooring in China), a press release by Carlyle Group said here.
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India Prima Fund to reopen for sales
Mumbai: Franklin Templeton Investments (India) is re-opening the sales of its open-end diversified equity fund — Franklin India Prima Fund (FIPF), which invests predominantly in mid and small cap stocks. Fresh subscriptions will be accepted from June 19. The fund was closed for fresh subscriptions in February.

The fund had capped fresh sales in the FIPF, as it felt the need to re-evaluate the stability and liquidity levels in the mid / small cap segments, in light of the fund's large size.

Given the recent declines in mid / small cap stocks and the consequent fall in valuations to relatively attractive levels, the investment team is confident of deploying fresh inflows in good long-term opportunities.

The principal portfolio manager of the fund is Sivasubramanian K.N.
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Hedge funds await SEBI decision on short-selling
Kolkata: Many global hedge funds are awaiting the decision of the Indian authorities on the issue of allowing short selling. Hedge funds contributed to about 50 per cent of the inflow into the Indian equities in 2005 and are now considering a fresh entry into the markets.

Though Secondary Market Advisory Committee of the Securities and Exchange Board of India (SEBI) had recommended removal of such restrictions in December 2005, a final decision is still awaited. It is reliably learnt that the International Capital Market Association, a global forum for securities firms, is also keenly watching the SEBI decision on short-selling and participatory notes in view of growing investor interest in the Indian economic growth and its equities.

According to HedgeFund Intelligence, a global data bank, there are around 20 India-specific hedge funds and about 700 Asia-directed hedge funds with direct or indirect exposures in Indian stocks. During 2003, total hedge fund assets flowing into the Indian market was about $2 billion. Since then, as the Indian benchmark surged ahead, hedge fund money poured in double quick.
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