Cairn India fixes IPO price at Rs160
New Delhi: Cairn Energy PLC has announced the pricing for its public float of its Indian business.

A company statement said that following a book building exercise, based on an offering document, Cairn has agreed and Cairn India has set an offer price for the flotation of Rs160 per Cairn India share.

At this price Cairn India's market capitalisation would be approximately Rs28,245 crore excluding any exercise of the over-allotment option. This capitalistaion would include approximately $600 million of the gross proceeds to be retained by Cairn India.

Following the flotation, Cairn Energy will own a 69.5 per cent holding in Cairn India excluding any exercise of the over-allotment option.

Cairn India has raised Rs8,616 crore from its IPO. After taking into account the proportion of the gross proceeds to be retained by Cairn India, expected to be approximately Rs2,681 crore, the gross proceeds expected to be received by Cairn Energy excluding any exercise of the over-allotment option would be approximately Rs5,935 crore.
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SEBI may make grading mandatory for IPOs
Kolkata: The Securities and Exchange Board of India (Sebi) may make grading mandatory for initial public offers (IPOs), SEBI chief M Damodaran said at a SEBI workshop on the capital market for journalists.

The primary market advisory committee, headed by Deepak Parekh, would soon give recommendations on these lines Damodaran said.

Grading would be in the range from one to five, and would be done by the credit rating agencies while the expenses for the exercise would be either borne by SEBI or the stock exchanges and not by the company coming out with the IPO.

He said the basic idea for making grading mandatory would to help investors in getting information about the quality of the IPO.

SEBI is close to taking a call on the issue of allowing stocklending and short-selling by institutions.
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Sensex, BSE logo to be patented by BSE
Mumbai: Those using the Bombay Stock Exchange's benchmark Sensex or other indices for launching any product or scheme based on it, may have to shell out a royalty as the exchange is getting patents for all its brands like the Sensex and even the BSE logo.

The Sensex is considered the benchmark for Indian financial markets and the barometer of the economy in general. The BSE has already patented Sensex and its logo BSE in the US.

It will take a few quarters before the patents are granted due to the procedural formalities. The BSE has many plans to leverage the brand value of its index and hence wants to protect its brands, website and logos from copyright infringement.

The National Stock Exchange has already patented Nifty in the name of S&P CNX Nifty. Benchmark Assets Management company has already launched an index fund based on Nifty.

Patents will mean nobody can use the names without the BSE's permission and it will be able to charge a fee or royalty for such usage.
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MIC to raise Rs100 crore through IPO
Mumbai: Hyderabad-based manufacturer of LED display systems MIC Electronics plans to tap the capital markets with an initial public offering (IPO) early next year.

The company intends to raise Rs 100 crore from the IPO to be used for expansion plans. MIC Electronics will issue 51,00,000 equity shares of Rs 10 for cash at a price to be decided through the 100 per cent book-building process.

The public offer constitutes 25.34 per cent of the company's fully diluted post issue paid up equity capital. At present, Ramana Rao's family and associates hold the entire stake in the company.

The company said it is planning to invest about Rs14-15 crore in infrastructure development and Rs14 crore for rentals of screens. The company would use Rs4-5 crore for development of 3D LED display screens and Rs5 crore for enhancing the research and development.

A part of the proceeds would also be used for acquiring a US-based company, Infostep, and is also foraying into entertainment theme park developments. The parks would be developed in Visakhapattanam and would be operational in three or four
months.

The proceeds would be also used for upgrading manufacturing capacities, acquisition of US-based company Infostep and setting up digital theatres.

The company intends to list its shared both on BSE and NSE. It had appointed Edelwesis Capital as advisors to the issue.

MIC Electronics posted a net profit of Rs15.47 crore, while sales turnover stood at Rs104.41 crore in the financial year ended March 31, 2006.
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De Shaw to acquire 18 pc in Amar Ujala for Rs117-cr
New Delhi: Hedge fund De Shaw is acquiring an 18-pc stake in north India-based media house Amar Ujala Publications.

The hedge fund with global aggregate investment capital under management of $25 billion would acquire a stake in both Amar Ujala Publications and its printing company in a deal worth Rs117 crore.

The hedge fund would acquire the stake in Amar Ujala Publications through a preferential allotment for a cash consideration of Rs58.5 crore.

In addition, it would pick 18 pc stake in A&M Publications, the printing unit of the media house for a similar consideration of Rs58.5 crore. The transaction values the two entities at about Rs650 crore.

Amar Ujala Publications is presently a closely-held company engaged in the business of publishing and printing the Hindi newspaper Amar Ujala. The publication was recently undergoing a battle for control between the shareholders.
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