Indian Bank to float IPO
Chennai: Indian Bank is planning to float an initial public offering and has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 1. The bank proposes to offer 85.95 million equity shares of Rs10 each for cash at a premium to be decided through 100 per cent book-building process. The offer will constitute 20 per cent of the post issue fully diluted paid-up equity capital.

The bank proposes to reserve 8.59 million equity shares for allotment to employees and the balance equity shares would constitute the net offer to the public. Of this, 60 per cent will be allotted to qualified institutional buyers (QIBs), of which five per cent will be allotted to mutual funds.

After reserving 10 per cent to non-institutional bidders the balance shall be available for allocation to the retail investors on a proportionate basis.
Back to News Review index page  

Indian M-cap among Asian Top 5
Mumbai: India's total stockmarket capitalisation soared past $800 billion to $ 808 billion on Friday December 1, 2006 making it the fifth country in the Asia-Pacific region and the 14th in the world to achieve this. With this India's M-cap is just a few billion dollars away from South Korea's $ 815 billion. Of the $262 billion added to India's M-cap in the year to date, around 20 pc ($50 billion) is accounted for by 87 public issues. The forthcoming Cairn Energy and DLF floats will add another $29 billion to India's market-cap going by expected pricing indications and will help the country beat South Korea to the fourth spot in Asia-Pacific, after Japan, Hong Kong and Australia.

Among Asia-Pacific markets this year, India' market-cap has climbed at the third-fastest rate in absolute terms. Hong Kong, which added $ 677 billion, and China, which added $459 billion, are ahead on this count.
Back to News Review index page  

Sebi looking to increase protection for investors
Kochi: Securities and Exchange Board of India (Sebi) is in the process of raising resources for setting up an investor protection fund which would be set up with the fines and penalties levied on listed companies, M Damodaran, chairman of Sebi, said on the sidelines of a CEO summit.

By the second half of 2007, the bill is likely to become an act, he said and said the new act would be on the lines of US Security Act.

By mid-07, the market regulator would conduct a country-wide massive investor education programme to educate small and retail investors, he said.

Sebi is also in the process of simplifying the process of delisting of sick and closed-down companies. A draft scheme for facilitating de-listing has been put up on the Sebi website and responses are awaited, he said.
Back to News Review index page  

FMC suspends four commodity traders
New Delhi: The Forward Markets Commission (FMC) has suspended four players from trading in commodity exchanges.

The traders has repeatedly taken positions in excess of the prescribed levels and in at least two cases, the brokers had exceeded the prescribed position limits on over 100 occasions over a period of 11 months cornering a large chunk of the market share and manipulated prices.

At least one of the players suspended had taken a position that was twice the permissible limit meaning a brokerage took a position of Rs20 crore in pulses when it was permitted Rs10 crore. A player who has been suspended had cornered as much as 10n pc of the market for pulses at one point of time, the sources said.

Two commodity exchange members — Sushilkumar Ratanlal Khowal and B M Agro Industries — have been banned for one week each (January 9-14), another two — Madhya Bharat (International) Pvt Ltd and Dayal Agro Products Ltd — have been suspended for three days each (January 9-11, 2007).
Back to News Review index page