Kingfisher postpones IPO plan
Mumbai: The UB group-promoted Kingfisher Airlines has abandoned the plan for an IPO. The company was planning to raise about $200 million through an IPO in 2006.

A UB source said with the volatility in the market, the company would not consider this route for at least another year.
Kingfisher Airlines has the paid-up capital of over Rs370 crore. Group shareholding in the company, a 100 per cent UB group subsidiary, will be diluted only when the company gets a proper valuation, sources said.

Large players in the civil aviation industry, who recently opted for the IPO route was Air Deccan which managed to just about scrape through in a volatile market in March. The other airline listed in the stock exchange is the Delhi-based SpiceJet.
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Karnataka Bank to hike FII limit to 49 per cent
Mangalore: Shareholders of Karnataka Bank Ltd at the 82nd annual general meeting of the bank adopted a resolution to increase the foreign institutions investment limit in the bank from the present 24 per cent to 49 per cent. Though a majority of the shareholders gave their approval to this move, three shareholders voted against this.

Moving the resolution number 11 at the AGM, Anantakrishna, chairman and chief executive officer of the bank, said that though the bank could take the FII limit to 74 per cent, it is not doing so. It will, however, seek the approval of the shareholders to increase the FII limit from 24 per cent to 49 per cent.

Three shareholders, who opposed this resolution, said that this move would lead to FIIs interference in bank's activities and expressed fears that it may lead to acquisition of the bank.

Answering this, Mr Anantakrishna said that though foreign investment in the bank amountedto around 22 per cent, no FII has interfered in the bank's activities. The shares of Karnataka Bank Ltd ended at Rs91.40 at BSE on Thursday against the previous closing of Rs93.20.
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LVB proposes bonus shares issue
Coimbatore: The Karur-based Lakshmi Vilas Bank (LVB) has decided to issue bonus shares in 1:2 ratio and offer one equity share (of Rs10 each) for cash at a premium of Rs40 per share (i.e. at a price of Rs50 per share) as rights share in the ratio of 1:1, excluding the proposed bonus.

The board of directors of the bank said the proposed issue would further shore-up its capital funds on account of market risk, meet the requirements under the revised Basel II framework and support its expansion plans. The bank has capital funds of Rs327 crore. Its Capital Adequacy Ratio of 10.8 per cent is well above the level prescribed by the regulatory authorities. The bank is targeting a total business volume of Rs10,000-crore this fiscal.
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Tata Coffee to revise terms of rights issue
Tata Coffee has announced that its board will meet on 13 July 2006 to consider a revision in the terms and conditions pertaining to the rights issue approved by the board at its meeting held on 13 March 2006. In mid-March 2006, the company had approved a right issue in the ratio of 2 equity shares of face value of Rs10 each, for every 5 equity shares held, within a price band of Rs220 - 260 per share (including premium).

Tata Coffee is the largest integrated coffee company in Asia with a production of 10 million kg of coffee from 7,000 hectares spread over 26 estates across Chickmagalur, Coorg, and Hassan in Karnataka.
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Mutual funds see Rs10, 000-crore redemptions in June
Assets under management (AUMs) of the mutual fund industry have shrunk by over Rs10,000 crore in June, according to data from the Association of Mutual Funds in India.

In May, when the markets crashed by over 14 per cent, AUMs of mutual fund houses grew by Rs19,121.9 crore as investor entered the markets to take advantage of lower net asset values.

However, with the markets showing no signs of re-testing their highs, investors have chosen to book profits and find safer avenues to park their money in. The Sensex, however, has clawed up by over 3 per cent in the last six weeks.

The loss of assets, in June, is across all categories of funds - not limited to equity funds alone. About 20 per cent of the loss reflected in June's AUMs is attributable to equity funds, according to transaction figures of mutual funds published by the capital market regulator.

The larger chunk of this loss is in cash funds and debt products. MFs say corporate money tends to move out in June, as companies make advance tax payments.
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