Nagarjuna Construction to hike share capital
Hyderabad: The shareholders of Nagarjuna Construction Company (NCC) have authorised the board of directors to enhance the company's authorised share capital to Rs50 crore divided into 25 crore equity shares of Rs2 each from the existing Rs25 crore divided into 12.5-crore equity shares of Rs2 each.

The company has informed the stock exchanges that with respect to the proposed 1:1 bonus issue, the shareholders have also authorised the board for capitalisation of such sum standing to the credit of the general reserves as may be considered necessary.

The shareholders have alos approved the proposal to enhance the limits of foreign institutional investors' holding in the company to 49 per cent. This includes FII investments including their sub-accounts, (FIIs) by purchase or acquisition from the market under the portfolio investment scheme or foreign direct investment scheme under FEMA.
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CARE revises ITI ratings
Mumbai: CARE has revised downward the long-term bond issue of ITI Ltd, a telecommunication company, to CARE D (SO) [Single D (structured obligation)] from CARE AAA (SO) [Triple A (Structured obligation)] with credit watch.

The rating revision takes into account the delay in the interest payment of the `M'series long-term bond issue of the company, said a press release from the rating agency.

The above default has occurred despite the bonds being backed by an unconditional and irrevocable guarantee from the Department of Telecommunications, Government of India and a Structured Payment Mechanism (SPM) stipulated by CARE.
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LVB plans Rs98.36-cr rights issue
Mumbai: Lakshmi Vilas Bank has proposed a rights issue of 1.96 crore equity shares to raise Rs98.36 crore, as per a draft letter of offer filed with the SEBI on Friday.

The draft offer proposes to issue 1,96,71,439 equity shares of Rs10 each at a premium of Rs 40 per share (i.e. at a price of Rs0 per share) aggregating Rs 98.36 crore in a rights issue on a 1:1 ratio.

The lead manager to the issue is SBI Capital Markets Ltd while the registrar to the issue is Integrated Enterprises (India) Ltd.
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CLSA adds Indiabulls to portfolio
Chennai: Credit Lyonnais Securities Asia has added Indiabulls Financial Services to its Asia ex-Japan thematic equity portfolio. The stock, which now constitutes 3 per cent in its portfolio, replaces AirAsia (Malaysia). The other Indian picks are: Tata Motors, Bajaj Auto, ACC, BPCL, ICICI Bank and State Bank of India, each constituting 3 per cent of its portfolio.
Cap on FIIs debt investments

Mumbai: Foreign Institutional Investors investing 100 per cent in debt will be subject to a ceiling of $390 million while investing in upper Tier II bank instruments. For FIIs who invest 70 per cent in equity and 30 per cent in debt, the limit will be $110 million, said a Securities and Exchange Board of India order. At present investment by FIIs in Upper Tier II is subject to an overall limit of $500 million.

The 70:30 FIIs will also have to maintain a headroom of $20 million. It implies that FIIs are free to invest till the total investment touches $90 million. Thereafter, the approvals for limits will be granted by SEBI.
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Capital Int'l acquires 2.7 per cent in Mcleod
Kolkata: Borelli Tea Holdings has sold 2.7 percent of its holding in BM Khaitan's tea company Mcleod Russel India to foreign institutional investor Capital International.

Aditya Khaitan, MD of Mcleod Russel, said the shares were bought by Capital International at Rs123.5 per share.

In July, Capital International bought 2.54 per cent stake from a trust and Williamson Magor & Co.

The Mcleod scrip today closed at Rs125.10 on the National Stock Exchange with volumes of 2,988,381 shares.

The current transaction entailed sale of shares by Borelli a subsidiary of Mcleod Russel India.

Borelli used to be the holding company for Williamson Tea Assam, which was acquired by Mcleod and in turn merged with it.

So far, Mcleod had garnered Rs58.34 crore from the sale of shares. The company plans to raise another Rs130 crore this year.
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Gold ETFs come up against custody hurdle
Mumbai: The gold exchange-traded fund (GETF) is facing the hurdle over the custody of the physical gold, to be traded in the form of shares, before its launch in the country.

Sebi is expected to administer the product after RBI's approval. It is not clear, however, whether banks would hold the physical gold directly on behalf of a mutual fund or accept gold warehouse receipts for the fund.

The cost factor is also posing difficulties and most of the cost is expected to be borne by the investor, as the front manager cannot bear costs.
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BHEL to pay 145 pc dividend
New Delhi: Bharat Heavy Electricals (BHEL) has announced an all-time high dividend payout of 145 per cent of its equity share capital for 2005-06, beating the previous high of 80 per cent announced for 2004-05.

The company's turnover for the last fiscal stood at Rs14,525 crore, while the company's net profit was at Rs1,679 crore, according to audited figures announced by the company at its 42nd AGM on Friday.

The board of directors at its meeting on May 31 this year had recommended a final dividend of 20 per cent of the company's equity for 2005-06, making it a total dividend of 145 per cent, including an interim dividend of 40 per cent and special dividend of 85 per cent paid earlier during the year.

The total outgo on account of the dividend payout for the company is around Rs355 crore, which is about 21 per cent of the net profit for the fiscal. The Union Government is the major beneficiary by virtue of its 67.72 per cent holding in the equipment major.
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