Tech Mahindra prices IPO at Rs 365 per share
Mumbai: Tech Mahindra Ltd, a joint venture between Mahindra & Mahindra and British Telecom, has priced its initial public offering at Rs365 per share, at the top end of its estimated price band of Rs315-365 per share. The IPO closed on Friday last week with a huge over-subscription of 72.04 times primarily driven by the demand from institutional investors.

Market observers said this was the highest over-subscription for any IPO in this fiscal so far and was expected to end a long subdued phase in the primary market.

Tech Mahindra had launched a public issue of 12,746,000 equity shares of Rs10 each in the price band of Rs315-365 per equity share through a 100 per cent book building process on August 1 and the issue was over-subscribed on the very first day of the offering.

The issue constitutes 11 per cent of the post issue paid up capital of the company and the net issue constitutes 10 per cent of the post issue capital.
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Krypton to raise Rs20-cr via rights issue
Mumbai: Krypton Industries plans to raise Rs20 crore through a rights issue in a bid to meet capital expenditure requirements for its expansion plans. The board approved the proposal to raise funds through the issue of equity shares on rights basis to existing shareholders, the company informed the BSE. The company said it was looking to raise resources for funding its expansion plans and grow inorganically by acquiring units.
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GMR IPO price fixed at Rs210 per share
Mumbai: GMR Infrastructure has fixed its initial public offering at the lower end of the price band of Rs210 per share, with the total issue proceeds estimated at about Rs800 crore.

The IPO of GMT Infrastructure closed on Friday last week and was oversubscribed 6.68 times primarily driven by the demand from institutional investors.

The company sold shares worth nearly Rs800 crore in the public issue of 3.81 crore shares, which received bids for about 25.5 crore shares. The company had fixed the price band at Rs210-250 per share.

While the IPO received oversubscriptions for nearly 11 times of the portion reserved for the Qualified Institutional Buyers (QIBs), the retail portion was under subscribed and received bids for only 52 per cent of about 1.13 crore shares reserved for retail investors.

The company fixed a five per cent discount for retail investors for the price derived from the book building process, which would lead to the share allotment at a price of Rs199.50 per share to the retail investors.

Sources said that most of the bids were received in the range of Rs230-250 per share.

GMR issue had opened on July 31 and closed on August 1.

JM Morgan Stanley Private Limited, DSP Merrill Lynch Limited, Enam Financial Consultants Private Limited and SSKI Corporate Finance Private Limited are the BRLMs for the issue.
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SEBI to issue policy statement on short selling
Gurgaon: Market regulator SEBI has that it would soon issue a policy statement on short selling of shares. The SEBI Chairman, M Damodaran however, refused to divulge whether such a statement would allow short selling by institutional investors or not. He said unless all issues relating to short selling are addressed, a decision could not be announced. All those concerned with the matter are being consulted, he said.

Short selling - selling stocks without actually owning them or selling them by delivering borrowed stocks - is currently permitted for retail investors. The issue of allowing institutional investors to short sell is linked to the programme for stock lending and borrowing.

The stock lending and borrowing programme was in vogue for institutional investors until 1997 under FERA, which was replaced with FEMA in 1999-2000. Now the issue is whether proposed lending and borrowing programme could be allowed for foreign institutional investors under FEMA.
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ICRA files red herring prospectus for IPO
Mumbai: Leading credit agency ICRA, a leading credit agency, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an offer for sale of 25.81 lakh equity shares of Rs10 each for cash at a price to be decided through the book building process.

The offer for sale is by IFCI, State Bank of India and administrator of the specified undertaking of Unit Trust Of India.

The offer constitutes 25.81 per cent of the fully diluted post-offer capital of ICRA. The equity shares would be listed on NSE as well as BSE with 50 per cent of the offer reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.
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CDC commits $104mn to three Indian equity funds
London: The UK government-backed emerging markets private equity investor Capital for Development (CDC) has committed $104 million (nearly Rs478.4 crore) to three private equity funds in India.

CDC has committed $75 million to India Advantage Series II, the ninth fund to be managed by ICICI Ventures, focused on medium to large growth and buyout transactions, $ 25 million to IDFII, the second private equity fund to be managed by IDFC Private Equity, the only private equity managers based in India focused on the infrastructure sector, and the remaining $4mn to Lok Capital, one of the first venture capital funds in the region, managed by local professionals providing micro finance institutions with management expertise.

CDC is also an investor in four other private equity funds investing in India -- Aureos South Asia Fund, Actis India Fund II, Baring India Fund II and GW Capital's India Value Fund II.

Taken together, these commitments make CDC one of the largest investors in private equity in India and with this announcement CDC's total exposure in the region has gone up to over $ 380 million (nearly Rs1,748 crore).
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Kotak Sec introduces flat brokerage rates
Mumbai: Kotak Securities has introduced fixed broking commission with fees ranging within a size band for transactions in delivery and non-delivery cash and derivative markets.

Kotak's scheme has a fixed fee of Rs9 per transaction for non-delivery trades of up to Rs50,000 against the prevailing variable rates of up to Rs25 to Rs35 for a similar transaction. Labelled `Kotak Flat', the fixed fee-based brokerage model is offered for its Internet-based traders and customers.

Narayan SA, managing director, Kotak Sec said, "Internationally, fixed fee is the norm and we have had a lot of feedback from the market that such a scheme will attract customers," he said.

The movies expected to trigger similar launches by others.

Depending on the customer response we will consider expanding the scheme to other target customers also," Narayan added.

"Internet-based trading has enormous potential in the country and it has grown to 12 per cent of the total trade as compared to just 2 per cent a couple of years ago. With an easy brokerage structure, we will be able to acquire a million customers online by the end of this year," he added.

For all deliveries up to Rs5,000 and non-deliveries up to Rs50,000, the brokerage would be Rs9 per deal (statutory charges extra). For deliveries exceeding Rs5,000, investors will have to pay an additional Rs9 for every transaction amounting to Rs5,000.
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Sub-brokers registration fee set to double next year
Mumbai: The Securities and Exchange Board of India (Sebi) has doubled the registration fees for sub-brokers from the next financial year. Sub-brokers will also pay the fees for a block of five years in advance from next fiscal compared with existing practice of submitting the fees annually.

As per a Sebi notification issued by the Bombay Stock Exchange to its members on Monday, sub-brokers who were granted certificate of registration before August 1, 2006, are required to pay Rs10,000 for the block of five financial years starting April 1, 2007.

After the expiry of this five years, sub-brokers are required to pay Rs 5,000 for every subsequent of five financial years.

The change in fee structure for sub-brokers was brought about through an amendment in the Sebi (Stock Brokers and Sub-Brokers) Regulations 1992. Under the earlier fee structure, sub-brokers were required to pay Rs1,000 per year to Sebi, a BSE official said.
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REL allots 9.17-cr shares to REVL
Mumbai: Anil Ambani group company Reliance Energy has allotted 9.17 crore equity shares to the shareholders of the Reliance Energy Ventures Ltd (REVL).

Pursuant to the scheme of amalgamation and arrangement between Reliance Energy Ventures and Reliance Energy, 9,17,34,781 equity shares of Rs10 each have been allotted to over 16.09 lakh shareholders in the ratio of 7.5 shares of REL for every 100 shares of REVL.

The scheme has been sanctioned by the Bombay High Court vide an order dated June 23, Reliance Energy said in a filing on the Bombay Stock Exchange.

In a separate announcement on the stock exchanges, another Anil Ambani group company Reliance Capital said it had allotted 6,11,56,521 equity shares of Rs10 each to the shareholders of Reliance Capital Ventures Ltd (RCVL), as per the scheme of amalgamation and arrangement between the two companies.
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Tech Mahindra raises $100mn through IPO
Mumbai: Tech Mahindra has raised $100 million through its IPO priced at the top of its proposed range. A venture between Mahindra & Mahindra and Britain's BT Group Plc., Tech Mahindra offered 12.746 million shares at Rs365 each. The deal, 40 per cent of which went to the Indian retail market as per market rules, was 78 times oversubscribed. The institutional portion was 104 times oversubscribed and the total company is valued at about $955 million. The company, which provides IT strategy, system implementation and maintenance and other services to telecoms companies, posted a net profit gain of 215 per cent in the quarter to June 2006.
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