Stock exchanges to have 51 pc public holding
Mumbai: Clearing the way for stock exchanges to go public by approving and notifying the demutualisation schemes of 19 stock exchanges in the country Sebi said the public would continuously hold at least 51 per cent equity in the exchanges while individual investment, direct or indirect, has been capped at five per cent.

The guidelines issued are also silent on rules relating to sale of stake to foreign investors.

Sebi officials, when contacted, said they wanted the government to take a final view on foreign investment in stock exchanges.

Sebi said stock exchanges may divest through a public offer, strategic investment, private placement or preferential allotment.

Additionally, persons (or persons acting in concert) must meet eligibility requirements to acquire more than one per cent of the paid-up equity capital of a recognised stock exchange, satisfying the SEBI requirements of being a "fit and proper person."

The guidelines will lend impetus to the BSE's plans to divest its equity. The exchange will have to dilute brokers' stake in it to less than 51 per cent before the deadline of May 2007. (Each stock exchange has been allotted its individual deadline.)

As per an announcement made by the BSE in July this year, the exchange had planned a two-part divestment programme. In the first phase, 26 per cent stake would be placed with strategic investors (domestic or international), including banks, multinational agencies and stock exchanges.

The remaining 25 per cent would be divested through a public offer of shares.

Sebi limits individual stake in bourses at 5%
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Coromandel Fert gets shareholders' nod for equity issue
Hyderabad: Murugappa Group company Coromandel Fertilisers has obtained the approval of shareholders for the issue of equity/securities linked to equity for an amount of up to Rs230 crore or its equivalent in any other currency.

The shareholders have authorised the board to take necessary steps in this regard, the company informed the stock exchanges. Further, the company said the shareholders have also approved the proposal to enhance borrowing powers of the board to Rs750 crore from the current level of Rs500 crore.
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Sterlite to raise $2 billion through ADS issue
Mumbai: Sterlite Industries, part of the London-based Vedanta Resources, plans to raise up to $2 billion (Rs9,000 crore) through the issue of American depository shares (ADS). This will be the biggest ADS issue by an Indian company and is a part of Sterlite's plans to raise up to Rs12,500 crore. The rest will be raised through the issue of foreign currency convertible bonds or global depository receipts.

Sterlite's ADS issue will surpass that of Infosys, which recently received shareholders' approval to raise $1 billion.

The biggest ADS issues to come out of India so far include those of ICICI Bank ($500 million), Wipro ($500 million), HDFC Bank ($300 million) and Dr Reddy's Laboratories ($260 million).

After the issue, the shareholding of the promoter, Vedanta Resources, will come down from 76 per cent to just below 60 per cent.

The company will use the ADS proceeds to fund its push into the country's commercial energy business. It may also use them to exercise a call option to acquire the government's 29 per cent stake in Hindustan Zinc.
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Reliance funds top in performance
Mumbai: Reliance Mutual Fund managed Reliance Growth and Reliance Vision schemes have been ranked as top performing open-ended equity funds by global agency Lippers a Reuters group company specialising in supplying fund information and commentary.

Lippers said Reliance Growth fund gave compounded returns of 71.39 per cent per annum, while Vision fund gave a return of 68.16 per cent a year during the five year span.
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Heidelberg Cement close to buying 20 pc stake in Gujarat Sidhee
Mumbai: German cement major HeidelbergCement is close to acquiring a 15-20 pc stake in the Mehta group-promoted Gujarat Sidhee Cement.

The two companies have been in talks for some time now and the deal may be clinched in a few weeks, say industry sources.

The acquisition will be followed up with an open offer, as mandated by the Securities and Exchange Board of India (Sebi).

Gujarat Sidhee's enterprise value has been pegged at around Rs700-750 crore for the purpose of acquisition.

The company recorded a total income Rs290 crore for the last financial year with a profit of Rs12.7 crore.

Gujarat Sidhee's shares closed at Rs27.80 on Thursday, up 3.15 pc on the BSE.
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