Govt relaxes ADR/GDR rules for unlisted cos
New Delhi: The Government has allowed unlisted Indian companies to sponsor an issue of American depository receipts (ADRs) or global depository receipts (GDRs) with an overseas depository against the shares held by its shareholders. Under a sponsored ADR/GDR programme, a majority shareholder in a company gets an opportunity to divest a portion of his holding in the overseas market through issuance of ADRs or GDRs. Such a window for divesting abroad is also made available to other shareholders in the company.

The latest decision however, comes with certain conditions. Unlisted companies that have not issued foreign currency convertible bonds (FCCBs), ADRs/GDRs prior to August 31, 2005, would require prior or simultaneous listing in the domestic stock exchanges for any such instruments or sponsoring depository receipts against existing shares.

For unlisted companies that have raised funds through these measures prior to August 31, 2005, and are not making profit, the revised ADR/GDR scheme states that such companies may be allowed to sponsor issues against existing shares held by its shareholders and would be permitted to comply with listing conditions on the domestic stock exchanges within three years of having started to make profit.

The Government has also stipulated that the facility of sponsored ADR/GDR offering by unlisted companies should be available without partiality to all categories of shareholders of the company whose shares are being sold in the ADR/GDR market overseas.

Moreover, the sponsored ADR/GDR offering of unlisted companies should conform to the foreign direct investment policy of the Government and the Foreign Exchange Management Act regulations of the Reserve Bank of India.
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Suzlon gets shareholder nod to raise Rs5,000-cr
New Delhi: The world's fifth largest wind turbine generator (WTG) company and the largest WTG manufacturer in India Suzlon Energy's shareholders have cleared a special resolution enabling the firm to raise up to Rs5,000 crore through the issue of a combination of equity and debt-linked instruments. The shareholders passed a special resolution by way of postal ballot for raising the amount through the issue of equity shares, global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), and secured premium notes.

A decision to raise the existing borrowing limit of the company to Rs5,000 crore, beyond the aggregate of the paid-up capital and free reserves, also got shareholder approval, the company said.

This amount will be used to repay debt worth Rs2,500 crore raised earlier this year to finance the acquisition of an overseas subsidiary.

The company supplied equipment totalling 970 MW in the last fiscal, including 88 MW supplied to international customers.
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FIIs turn net sellers on Monday
Mumbai: Foreign institutional investors (FIIs) sold equities worth Rs111.10 crore on Tuesday June 27, according to data released by Sebi today.

While FIIs made gross purchases of Rs1735.60 crore, gross sales totalled Rs1846.60 crore.

Mutual funds (MFs) were net sellers of Rs31.32 crore on Tuesday. MFs made purchases of Rs358.01 crore and sales of Rs389.33 crore.
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IDFC Pvt Equity invests Rs90-cr in Manipal Health
Mumbai: Manipal Health Systems, which manages 3 tertiary care hospitals, 8 secondary care hospitals and 9 primary care centres in south India, has raised Rs90 crores of equity from IDFC Private Equity Fund II. The funds will be used to expand its network beyond the south, the company said in a formal joint announcement with IDFC Private Equity. "We are looking at setting up facilities in centres like Delhi and Mumbai," R Basil, CEO, Manipal Health Systems said.
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NCDEX, MCX cut limits on wheat contracts
Mumbai: National Commodity & Derivatives Exchange (NCDEX) and Multi-Commodity Exchange (MCX) have reduced the position limits on all running contracts of wheat by 50 per cent from 80,000 tonnes to 40,000 tonnes for members and 20,000 tonnes to 10,000 tonnes for clients. The new position limits would be applicable from June 30.

The target price for NCDEX July is Rs835-838 a quintal.
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