Franklin Templeton to launch capital protection fund
Kolkata: Franklin Templeton MF will launch a close-ended fund that is designed to protect investors' capital. This will be the first such proposal from an MF since SEBI cleared the way for the launch of capital protection funds.

The Franklin Templeton Capital Protection Oriented Fund (FTCPF) will be offered in two versions, one for three years and the other for five. Each plan, which will be redeemed at the end of these periods, shall offer growth and annual dividend options and will also have separate portfolios. Rating agency Crisil has given an AAA (SO) rating to the portfolio structure.

Units will not be repurchased before the end of the maturity period.

According to the offer document, as put forward before the SEBI, FTCPF will endeavour to protect investor capital by investing in fixed-income securities (its primary objective) and generate capital appreciation by investing in equity and equity related instruments (its secondary objective). NAVs will be normally released at least once a week, it is pointed out.

The fund has named Santosh Kamath and Satish Ramanathan as fund managers for the debt and equity portion respectively. The investment objective is to create a diversified portfolio that will minimise liquidity and credit risks. The fund will be benchmarked against the Crisil MIP Blended Index.
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Gwalior Chemical IPO to raise Rs80 crore through IPO
Mumbai: Gwalior Chemical Industries Ltd plans to enter the capital market with an initial public offering of equity shares aggregating Rs80 crore. The price band for the issue has been fixed at Rs71 - Rs85 per share. The issue opens on September 11 and closes on September 14.

As per the prospectus, up to 50 per cent of the total public offer shall be allotted to qualified institutional buyers (QIBs). The portion allotted to QIBs will have 5 per cent reserved for mutual funds, 15 per cent for non-institutional bidders and the balance 35 per cent for retail individual bidders on a proportionate basis.

The company will use the funds to expand plant capacities at Nagda, Madhya Pradesh and to cater to export and domestic markets.

The company also plans to set up fresh capacities at Nagda and Ankleshwar for producing second stage downstream products including benzyl esters and acid chlorides and a new plant for viscose dye pigments.

The company intends to complete its expansion plans by December 2007.

The company has a subsidiary in Belgium which provides marketing support and storage facilities. It also has plans to foray into the Japanese and American markets in the future.
Net sales for GCIL stood at Rs170.63 crore and net profit at Rs15.59 crore for fiscal 2006 as compared to net sales and net profit of Rs136 crore and Rs13.02 crore for fiscal 2005.

JM Morgan Stanley Pvt Ltd is the book running lead manager to the issue.
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