SEBI restricts pre-issue publicity campaigns
Mumbai: SEBI has put restrictions on publicity campaigns of companies coming out with public or rights issues by amending its disclosure and investor protection guidelines to introduce provisions that bar corporate projections, estimates or any information extraneous to the offer document.

This applied to all types of corporate information including interviews by promoters or directors from the date of approval of the issue by the company's board to the date of allotment of shares. The amendments come into force with immediate effect, said a SEBI circular.

In the case of publicity material or public communication not consistent with `past practices' (such as an on-going campaign), the regulator has made it mandatory on the part of the issuer to prominently display or announce that the company is proposing to make a public or rights issue of securities.
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Ess Dee Aluminium to float IPO
New Delhi: Ess Dee Aluminium is coming out with a maiden public issue that will hit the market sometime in early November. The company manufactures aluminium foils and packaging material for the pharma and FMCG industry. It is planning to increase its aluminium rolling capacity from the present 9,100 tonnes per annum (tpa) to 18,000 tpa by June 2007. Earlier this year, the company had completed it expansion of its rolling capacity from 3,600 tpa to 9,100 tpa.

The company is expanding its manufacturing facilities in Goa and Daman at an investment of about Rs115 crore. The total investment, including for upgrading existing units, would be about Rs160-170 crore. The company is also expanding its capacity of PVC (polyvinyl chloride) products from 4,200 tonnes at present to 5,800 tonnes.

The company would offer 69.60 lakh shares at a face value of Rs10 each at a premium through the book-building route. The company recently raised Rs 21 crore through a private placement of 10 per cent pre-IPO equity stake to high net-worh individuals. Post-IPO, the stake of promoters would come down from about 87 per cent at present to 65 per cent.

The company has clients like drug majors such as Pfizer, Cipla, Wockhardt, Cadilla, Ranbaxy and FMCG companies Britannia. It posted a turnover of Rs62.46 crore and a net profit of Rs9.78 crore in 2005-06.
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Courses to be offered in futures trading
Mumbai: The Multi Commodity Exchange of India has entered into a joint venture with the Institute for Financial Markets (IFM) to develop courses in futures trading in commodities. IFM is an affiliate of the Washington-based Futures Industry Association. The course will be designed by IFM in consultation with MCX.
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Tata Steel put under S&P rating watch
Mumbai: Tata Steel has been put under Credit Watch with negative implications by Standard & Poor's Ratings Services on Wednesday. Earlier, the company enjoyed a BBB long-term corporate credit rating by S&P.

S&P has also placed its BBB foreign currency rating on the steel company's senior unsecured bank loans of $750 million and $500 million on Credit Watch with negative implications. This follows Tata Steel's announcement on Tuesday that it made an indicative non-binding offer to acquire 100 per cent equity in Corus Group.

Credit analysts at S&P feel that the size of the acquisition and the potential cash outflow of about $10 billion that Tata Steel may make in its offer to Corus could have an adverse impact on its financial risk profile.
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