Optimix introduces Dynamic FoF - Series II
Mumbai: Multi manager asset management company Optimix has launched Dynamic FoF scheme series - II, a three-year closed ended fund-of-fund scheme. The scheme will generate capital appreciation from a portfolio of equity and debt funds through the diversified investment styles of various schemes of other mutual funds in accordance with the Optimix Multi Manager Investment process. The new scheme will be based on the CLICK model - which can shift from 100 per cent equity funds to 100 per cent debt funds depending on the market conditions.

The new fund will open on November 10 and close on December 20. No entry load will be charged. The scheme will be available in Dividend and Growth options. The minimum investment in the scheme is Rs5,000.
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Blue Dart Express not to de-list
Mumbai: Blue Dart's plan to de-list itself from stock exchange has failed as shareholders asked for a price of Rs950 per share, which the company did not accept.

This price, determined through the reverse book building process, was higher than the ruling price of Rs605 (on the BSE on Monday).

The company — Blue Dart Express Ltd — will continue to remain listed on the bourses.

The public shareholders now hold 45,00,047 equity shares in the company aggregating to 18.97 per cent.

The shares are listed on the BSE and the NSE.
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Ondeo Nalco to be delisted
Kotak Mahindra Capital Company, on behalf of Nalco Holding Company and Nalco Company, has accepted the exit price of Rs725 per share for the de-listing of equity shares of Ondeo Nalco India. Ondeo Nalco shares closed at Rs702 on the BSE on Monday.

The company will acquire 8,67,015 shares of the equity capital owned by the shareholders.
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Sobha Developers plan IPO; fix price band at Rs550-640
Mumbai: The Bangalore-based Sobha Developers (SDL) is coming out with a public issue of 88,93,332 equity shares of Rs10 each through book building process in the price band of Rs550-Rs640 per share.

The issue comprises a reservation of up to 8,89,300 equity shares for SDL's permanent employees and a net issue to the public of 80,04,032 equity shares. It constitutes 12.20 per cent of the post-issue paid-up capital of the company.

The issue opens for subscription on November 23 and closes on November 29.

Out of the net issue, at least 60 per cent would be allocated on a proportionate basis to FIIs and domestic Qualified Institutional Buyers.

About 10 per cent of the total issue will be available for allocation on a proportionate basis to non-institutional bidders and 30 per cent will be available for allocation on a proportionate basis to retail individual bidders.

The company has developed and constructed 21 residential projects in Bangalore covering approximately 2.98 million sq. ft, 75 contractual projects in eight Indian States covering about 8.42 million sq. ft and two commercial projects aggregating 0.11 million sq. ft.

SDL has land reserves measuring to about 2,747 acres in Bangalore, Mysore, Pune, Chennai, Kochi, Thrissur and Coimbatore. The company proposes to utilise the net proceeds of the issue to finance land acquisition and fund ongoing projects while a part of proceeds would be used to repay certain loans.
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MFs fear imposition of service tax
Mumbai: The investigation wing of the revenue department recently made a strong case for charging service tax on the entry and exit loads linked to mutual fund schemes.

Loads are charges that investors bear while buying or selling MF units, and MFs use it to recover scheme expenses on distribution, marketing, advertisement and roadshows.

According to this an investor buying units would pay an entry load over and above the net asset value (roughly the market price) of the unit, but while selling the units the investor would receive less than the prevailing NAV to the extent of the exit load applicable. If service tax is passed on to an investor, the per unit price one pays will go up.

The Directorate General of Central Excise Intelligence (DGCEI) reckons that the charge (entry and exit load) is a consideration by a non-banking financial entity (such as mutual funds) for providing services in relation to asset management and thus be liable to service tax.

Sometime in May, the Directorate had shot letters to fund houses to find out whether they were paying service tax on entry and exit loads.

The issue therefore thought to be dead and buried seems to have resurfaced. The CBEC is expected to take a final view on the matter after factoring in the responses of DGCEI and the mutual fund industry.
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