Citigroup acquires stake in VSNL
Mumbai: Citigroup Global Markets, along with other Citigroup companies, is acquiring a 6.3 per cent stake in telecommunications company Videsh Sanchar Nigam.
However, news agencies reports said that Citigroup was planning an amendment in its SEC filing to announce that its stake in VSNL was around 3 per cent only, and not 6.3 per cent.

The New York financial services holding company said it has beneficial ownership of less than 3 per cent of the company's outstanding shares, not the 6.3 per cent it reported in a Schedule 13G filed Monday with the SEC. The Citigroup's original SEC filing said the group holds 18.61 million shares in VSNL, through buying American Depository Receipts on the New York Stock Exchange, where VSNL is listed. One ADR equals two equity shares of VSNL.

Being a passive investor, which sought no control in the acquiree company, Citigroup did not provide any other details of the acquisition including the price. VSNL rose on the Indian bourses, its scrip rising 3.21 per cent on Tuesday over Monday's close of Rs359.45, ending the trading day at Rs371. On the NSE it rose 3.45 per cent over the day, closing at Rs371.45.
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Bluplast Industries, Vigneshwara Exports IPOs withdrawn
Mumbai: Bluplast Industries and Vigneshwara Exports Ltd have withdrawn their initial public offerings (IPO) due to poor response. Despite bringing down the price band from the Rs121-140 range to the Rs110-124 band, Vigneshwara Exports could get only 89 per cent subscription. When contacted, an official of Vigneshwara Exports said the company has decided to withdraw the issue, as most applicants submitted their bids at the bottom price of Rs110.

Company officials said the company deserved a better valuation than Rs110. The company was planning to mobilise about Rs55-60 crore through this IPO. Karvy Investor Services was the lead book runner for the IPO.

Bluplast Industries was forced to pull out its Rs30-crore IPO due to weak investor sentiment. Now the company is exploring other funding options, including private placement of shares and even the debt option, to mobilise Rs32 crore required for the expansion plans. The Mumbai-based Allianz Securities Ltd was the lead manager for the issue.
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Easun rejects Siemens' open offer
Chennai: Easun Reyrolle, a Chennai-based company that produces electrical power management products, has refused to agree to the proposal of Siemens to acquire shares in the company through an open offer. Easun Reyrolle has also refused to issue a no-objection certificate as required by the Foreign Investment Promotion Board for Siemens to acquire an additional 20 per cent stake in Easun through the open offer.

Siemens had acquired a 23.54 per cent stake in Easun Reyrolle through its acquisition of VA Tech Hydro GmbH. This made it necessary for Siemens to make an open offer to acquire an additional 20 per cent stake in Easun Reyrolle and also seek the FIPB's approval for this investment. The application to the FIPB required that Siemens provide an NOC from the Indian promoters.

Easun Reyrolle told the BSE that Siemens is a direct competitor in the same line of business of Easun Reyrolle and that the interest of the company and its shareholders would be affected if FIPB approved Siemens' application.
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Mahindra Gesco plans follow-on public issue
Mumbai: Mahindra Gesco Developers is planning to raise Rs500-Rs600 crore through fresh issue of equities. The board of directors of the company has decided to issue 65 lakh equity shares partly through a follow-on public issue and partly to the qualified institutional investors under the new scheme announced by SEBI recently.

In addition to this, the company would also issue warrants to promoters exercisable into 37 lakh equities on a preferential basis. Promoters Mahindras hold 55 per cent stake in the company.
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Perishable commodities' futures on NCDEX soon
Mumbai: The National Commodity & Derivatives Exchange (NCDEX) will soon start futures contracts on perishable horticultural commodities including onion and potato.

"Contracts would be available for trade for July 10 settlement," an exchange official said and the exchange for agri commodities trade may announce the finalised date of launch of these contracts in a day or two.
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