Mahindra Gesco completes QIP
Mumbai: Mahindra Gesco Developers (MGDL), a real estate and infrastructure developer, has completed a $105-million qualified institutional placement (QIP) meant for institutional bidders. The QIP opened on September 29 and closed on October 4. Shares were priced at Rs800 each - a one per cent premium over the two-week average of the market price prior to the opening of the issue.
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Sankhya Info plans buyback
Hyderabad: Sankhya Infotech, a technology provider for aviation and oil and gas companies, has announced plans to buy back shares from the Bhubaneswar Stock Exchange.

Sridhar Nadupalli, CEO of Sankhya Infotech, said: "We are keen to provide exit option for shareholders of the company since there is no trading in Bhubaneswar Stock Exchange for several months. The company has decided to provide an exit route through this buyback offer."

Nadupalli added that an open offer would be made subject to SEBI guidelines and other regulatory compliance requirements to buy back shares from holders who do not have this option through Bhubaneswar exchange.

The company, which was initially based at Bhubaneswar moved to Hyderabad one-and-a-half years ago. It recorded recorded revenues of Rs15.85 crore and a profit of Rs4 core last fiscal.
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IFC mulls $45-m equity investment in Cairn India
New Delhi: International Finance Corporation (IFC), the private lending arm of the World Bank, will invest up to $45 million in equity in Cairn India which is planning an initial public offer of up to 50 per cent equity shares later this year. Following the IPO, the parent is expected to remain a significant shareholder in the company.

According to sources, the percentage of equity participation of IFC is yet to be worked out. This proposal by IFC would be over and above the $1 billion loan the Corporation is extending to Cairn with 13 other banks and financial institutions for development in Rajasthan oilfields.

Cairn recently announced plans to begin oil production from its Rajasthan blocks in early 2009 and expects an output of 150,000 barrels per day. ONGC has a 30 per cent stake in an oil and gas block in Rajasthan, where Cairn Energy holds the remaining stake and is the main operator.
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Hedge funds want legitimate entry into India
Mumbai: Hedge funds, which till now have been operating in the country through participatory notes and as sub-accounts with foreign institutional investors, are now looking to enter India in a legitimate manner.

Hedge funds, which cannot be registered in India in the absence of proper guidelines, will discuss the India strategy at a two-day Asian Hedge Forum meeting in Hong Kong on October 17-18.

"The objective is to have codified entry norms for these funds in India," sources close to the development said.

This marks a shift from the original stance of these funds, which have all along been resisting any plans to regulate them as they do not play with small investors' money.

Hedge funds are "lightly regulated" private investment funds, characterised by unconventional strategies to earn maximum return on investments.

In the absence of clear regulations, it is difficult for even long-only hedge funds to enter the Indian market said industry experts.

It is being advocated that the Securities and Exchange Board of India (Sebi) should allow the hedge funds entry into India for a one-year period and renew the licence after reviewing their functioning.
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