Oil India may float Rs1300-cr IPO
Mumbai: PSU oil exploration company, Oil India plans to tap the capital market with an IPO. The majority of the company's assets are based in eastern India.

The proposal to enter the capital market for expanding its equity base by about 10 per cent is under consideration by the ministry and is likely to be finalised before December.

The company has proposed to hit the markets by the end of the current fiscal year that ends in March 2007.

Oil India has a paid up capital of Rs214 crore. Proceeds from the IPO are expected to be used for picking up a 25 per cent stake in Hindustan Petroleum's nine million tonne refinery in Bhatinda as well as for a possible stake in the Numaligarh Refinery's city gas project in Assam, valued at around Rs500-600 crore. Oil India had reported a net profit of Rs1689.9 crore on a gross turnover of Rs4617.65 crore last year. The company's networth is estimated at Rs5,848.3 crore.

However, the Left parties are opposed to the proposed IPO.
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CCEA approves package for small enterprises
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved the implementation of a special package for the promotion of micro and small enterprises, which is likely to be valid for five years.

The package will provide support for the development and promotion of micro and small sector units, facilitate employment, and enhance competitiveness government officials said. Sources said the package would entail a financial commitment of more than Rs2,300 crore.
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Norms for pre-IPO placements made tougher
Mumbai: The Securities and Exchange Board of India (Sebi) has tightened the norms for placements to domestic and foreign venture capital investors made by companies ahead of their initial public offers (IPOs).

SEBI has barred such funds from selling their stakes in unlisted companies at the time of IPOs, if they have not held the stakes for at least one year from the date of filing the draft prospectus with it. It has also made the one-year lock-in period applicable to convertible instruments issued to venture capital funds and foreign venture capital funds ahead of a company's IPO. At present, pre-issue shares of an unlisted company making an IPO are not required to be locked in if they are held by venture capital funds or foreign venture capital funds.

The new rules have been incorporated by an amendment in the Sebi (Disclosure and Investor Protection) Guidelines, 2000. Industry analysts said Sebi's move was triggered by several pre-IPO placements in the market.
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Indiabulls plans demerger of financial services business
Mumbai: Indiabulls Financial Services to demerge its financial services business - consumer finance and securities business - as part of its attempts to increase individual focus on both businesses.

A statement said the company is currently undergoing a strategic review of its consumer finance and securities including potential for demerger of the two businesses to provide enhanced managerial and business focus.

The securities business comprises brokerage, margin and IPO financing and distribution of third party products. The consumer finance business is as the key earnings growth driver for the company. Indiabulls holds 53 per cent in the subsidiary while earlier this year LN Mittal had bought 8.2 per cent in this business for Rs90 crore, valuing it at Rs1,100 crore.

Indiabulls' consumer finance comprises unsecured personal loans, secured personal loans, used two-wheeler finances and commercial vehicle financing. A few months ago, the company had proposed to demerge the assets and liabilities of the real estate undertakings of IBFSL into a separate entity called Indiabulls Real Estate.

Indiabulls Financial Services said it has posted an increase of 59.2 per cent rise in net profit at Rs30.6 crore for the quarter ended September 30, as against Rs19.2 crore for the same quarter of the previous year. The total income rose 27.6 per cent to Rs69.6 crore for the quarter ended September 30 from Rs54.5 crore in the year ago period.

The board has declared a dividend of 5 per cent on 99.66 lakh cumulative, redeemable, non-convertible preference shares of face value of Rs300 each, and 115 lakh cumulative, redeemable, convertible preference shares, the statement added.
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BSE m-cap higher than GDP
For the first time ever, the market capitalisation of the BSE has exceeded the country's domestic GDP. The total listed market cap touched Rs33 lakh crore on Friday, eclipsing the GDP figure of around Rs32 lakh crore during FY06. The market cap for all listed BSE stocks rose to Rs34 lakh crore on Monday.

With this, India has become the first BRIC country where the market cap of the companies listed on the stock exchange exceeds the GDP of that country. India now joins an exclusive club of developed markets, including the US and the UK along with a few emerging economies such as South Africa, Malaysia and Singapore.
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LMW to split shares
Coimbatore: The textile machinery manufacturing major Lakshmi Machine Works (LMW) on has split the face value of its equity shares to Rs10 per share against the existing face value of Rs100. The share price touched a 52-week high of Rs28,479.90 on Tuesday after opening at Rs27,490.

The company's net profit more than doubled to Rs5,740 lakh during the quarter ended September 2006 compared to Rs1,990.61 lakh during the corresponding period of the earlier fiscal.

Its net income from operations rose to Rs45,957 lakh (Rs32,028 lakh), with the textile machinery division accounting for over 90 per cent of the total revenue.

Other income also swelled to Rs2,155.81 lakh (Rs889 lakh).
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Calsoft offers 5.5 lakh shares to Inatech
Chennai: California Software (Calsoft) will offer 5.55 lakh equity shares of Rs10 each for cash on a preferential basis to four promoter shareholders of Inatech Infosolutions Pvt Ltd at Rs90 a share, including a premium of Rs80 per share. Last month the Chennai-based company signed a letter of intent to acquire majority stake in Inatech Solutions UK and Inatech InfoSolutions India.
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Angel Broking to place equity with financial partner
Kolkata: Angel Broking plans to place equity with a strategic partner as part of an exercise to raise funds for expansion of its business.

The broking house hopes to select a strong financial partner with the intention of tapping new client segments, including global investors. It also intends to inject a considerable sum of money into its business.

Angel, with a 1.5 lakh client base, is also keen on coming out with an initial public offer, which may follow its initial strategic placement. This will at any rate happen well after the next 8-12 months, it is pointed out.
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