E* Trade increases holding in IL&FS Investmart
Mumbai: E*Trade Financial Corporation, US-based broking company, through its indirectly wholly-owned subsidiary E*Trade Mauritius Ltd, has increased its holding in IL&FS Investsmart Ltd (IL&FS Investmart) through open market transactions. The former bought total of 31 lakh shares or 4.3 per cent of the total stake at Rs131 per share. On August 2, 2006, it bought an additional 36.7 lakh shares at a price of Rs154 per share. The latest shareholding pattern is however not available with the stock exchanges.

As on March 31, 2006, E*Trade Mauritius Ltd held 7.29 per cent of the total stake in IL&FS Investsmart. It also held another 10.46 per cent in IL&FS Investmart in partnership with SAIF Investment, an investment company based in middle-east. E* Trades also participated in big way in GDR issue of company and has significant holding in the company through this route. The outstanding GDRs comprises of 21.10 per cent of IL&FS Investmart's equity.

E*Trade Financial will soon appoint a member of its executive management team as CEO Designate of Investsmart, subject to completion of necessary formalities of statutory requirements and obtaining necessary approvals from Sebi, the stock exchanges and the government of India. The executive will replace Hemang Raja, outgoing MD & CEO, who will become a non-executive director on the Investsmart board of directors.
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Indiabulls gets go ahead for demerger
Mumbai: Indiabulls Financial Services (IBFSL), has received regulatory approval from stock exchanges - the NSE and BSE - for restructuring and re-organising the company's businesses through a scheme of demerger.

As per the demerger plans of the company, Indiabulls Real Estate Ltd (IBREL) would be a separately traded public entity wherein every shareholder (holding one share) of IBFSL would get one share of IBREL, the demerged entity.
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Rakesh Jhunjhunwala, others, get clearance from SEBI
Mumbai: The Securities and Exchange Board of India has cleared stockbroker Rakesh Jhunjhunwala and his wife, Rekha Jhunjhunwala, and Ra Re Enterprises of alleged charges of share price manipulation as the material evidence on record was not sufficient to establish the existence of share price manipulation.
SEBI had issued two show-cause notices dated July 17, 2003, and January 20, 2004, to JhunJhunwala. The notices were issued against the group as the market regulator had observed that during the volatile period in stock markets in August 2002, the above group had traded through a number of brokers across stock exchanges and that they had taken concentrated positions in certain scrips. It was also observed that their trading during the period was concentrated in scrips in which the above group had substantial exposure and that the group had borrowed substantial amounts from various non-banking finance companies and used it for the purpose of trading.
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Tata Sons to increase stake in group cos
Kolkata: Ratan Tata, chairman of Tata Sons, said Tata Sons should increase its holdings in the Tata Group companies and also untangle the cross-holding among the several outfits. He agreed that the promoters' stake in the company was low and that it should be increased. The Tata Group companies currently hold 28.95 per cent in Tata Tea.

He said the stake could be hiked through the creeping acquisition route, but would be restricted to only five per cent each year. The second could be through an open offer, which he ruled out.

Tata also said that the Tata Sons management had taken an in-principle decision to remove all cross-holding among the different group companies.
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Lanco Infratech files draft red herring prospectus
Hyderabad: Lanco Infratech, which is involved in power generation, construction and property development, has filed its draft red herring prospectus with the Securities and Exchange Board of India to enter the capital market with its initial public offering of equity shares. The company proposes to offer 4.45 crore equity shares of Rs10 each for cash at a premium to be decided through the 100 per cent book-building process to be conducted on the Mumbai and National stock exchanges. The issue would constitute 20 per cent of the fully diluted post-issue equity capital. Lanco Infratech proposes to reserve five lakh equity shares for allotment to eligible employees of the company.

Thus, the net offer to the public would be 4.4 crore equity shares. The company said plans to reserve 60 per cent for allotment to qualified institutional buyers on a proportionate basis and five per cent to mutual funds. The company also proposes to reserve up to 10 per cent of the allotment to non-institutional investors.

The balance 30 per cent would be reserved for allotment to retail investors on a proportionate basis.
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