MFs investing in overseas markets may become more popular
Mumbai: The Reserve Bank of India has allowed mutual funds to invest more funds overseas and has raised the limit from $1billion to $2 billion.

Select mutual funds would also be allowed to invest in exchange traded funds cumulatively for $1 billion, an RBI notification said.

Mutual funds will also be able to invest in more companies overseas, as the requirement for investing only in overseas companies that have 10 per cent share holding in listed Indian companies has been removed.

Detailed guidelines for implementation of the announcement including eligibility criteria, limits, identification of recognised stock exchanges, investible universe, monitoring of aggregate ceilings etc would be issued by SEBI.

Mutual funds till now were allowed to invest in ADRs/GDRs of Indian companies, rated debt instruments and in equity of overseas companies listed on a recognised stock exchange overseas and having a shareholding of at least 10 per cent in a listed Indian company.

This led to only two AMCs, Franklin Templeton and Principal PNB, issuing overseas funds the reason being that they did not have a diversified range of companies to invest abroad as investment was restricted to 30-40 companies abroad and these companies were doing better in India. Hence, these funds were not very popular with Indian investors.

Another reason for the overseas funds not being popular is the superior performance of Indian exchanges, which have almost doubled from 6,000 points to 12,000 giving Indian investors more opportunities to earn good returns in India itself.
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TTK Healthcare open offer price fixed at Rs73
Mumbai: TTK Healthcare has made an open offer to the equity shareholders of the company to acquire 16,22,083 fully paid up equity shares of Rs10 each representing 20 per cent of the fully expanded voting equity capital (assuming full allotment under the proposed preferential issue of equity shares) at a price of Rs73 per share, payable in cash. The date of opening and closing of the offer is September 18 and October 7 respectively.
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WNS Holdings shares zoom in US debut
New Delhi: Indian BPO major WNS stock zoomed 22.5 per cent on its trade debut on New York Stock Exchange (NYSE).

WNS Holdings, the parent company of Mumbai-based offshore BPO service provider WNS Global Services, outperformed all the other Indian companies listed in the US as well as the broader indices such as the Dow Jones Industrial Average (DJIA) and the Nasdaq Composite Index.

The company was previously part of the UK-based airline giant British Airways. Following a successful IPO of 11.2 million American depository shares (ADS) at a price of $20 per ADS, in which the company raised over Rs1,000 crore ($224 million), the company's market capitalisation soared to about $1 billion on the first day itself.

The strong debut by WNS came amid weak market conditions when DJIA and NASDAQ indices closed in the negative territory. While ADRs of Indian companies like Infosys, Satyam, Wipro, Patni Computer and Dr Reddy's Labs, managed to close in the positive territory, their gains were much lower than that of WNS.
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Jessop to consider public issue
Kolkata: Jessop and Co is considering coming out with a public issue of approximately 25 crore shares of Rs1 each. The issue will include fresh issue of 15 crore shares. The rest 10 crore shares will be off-loaded by the Ruias.

While the group has already launched an asset revaluation programme, a decision on the public offering would be taken after August 29, when the company would complete three years of the disinvestments. The asset re-valuation report is expected shortly.
The Ruia group now holds 94 per cent stake in the company out of a paid-up capital of Rs59.5 crore.

The proposed issue, if comes through, will reduce the group holding to 75 per cent as per the listing norms and generate resources for future projects including foray in high-value coaches for metro railway.

The stake of the Union Government that has already come down to four per cent, post Rs50-crore rights issue earlier this year, would be further diluted.
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