Gammon India, four others barred from trading
Mumbai: Gammon India, its chairman Abhijit Rajan, and two other entities have been barred by the market regulator Sebi from accessing the capital market for one year from December 21, 2006, for irregularities in its 2001 rights issue. The regulator has also barred them from selling or transferring their shareholding in Gammon Infrastructure Projects, a company promoted by Gammon India, which has filed documents with SEBI for an IPO. The ban is for three years from the date of allotment of the IPO shares.

It was alleged that funds of Gammon India were used for subscribing to its own rights issue. In effect the promoters did not use their own monies to subscribe to the issue. Funds were routed through privately held company Reliance Silicones and two promoter-controlled entities, namely Nikhita Estate Developers and Devyani Estate & Properties.

Gammon India had come out with a Rs18.96 crore rights issue in 2001 for 63,20,572 shares of Rs10 each at a premium of Rs20 per share in the ratio 1:1. The issue opened on October 15, 2001, and closed on November 15, 2001. SEBI findings suggest violation of the SEBI (Prohibition of fraudulent and unfair trade practices relating to securities market) Regulations.
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Kotak Securities penalized
Mumbai: The SEBI has imposed a penalty of Rs10 lakh on Kotak Securities for violating SEBI rules including granting trading terminals at places other than those specified by the regulator and to unauthorised persons, committing irregularities in the maintenance of client data base and others. The other violations by Kotak Securities comprise not maintaining proper segregation between BSE and NSE client accounts and failing to collect upfront margins from clients among others.
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Great Offshore lists at Rs702
Mumbai: Great Offshore that has emerged out of the demerger of Great Eastern Shipping's offshore business, has listed at Rs702 on the BSE. The company touched an intra-day high at Rs800 before closing at Rs727.05. Total of 45,65,383 shares were traded on the BSE today. The company had entered the capital markets with an issue of 3.81 crore equity shares at Rs10 each. It may be recalled that GE Shipping (the combined entity) closed at Rs336 on the BSE on November 7. The GE Shipping stock got listed (after the de-merger) at Rs222.70 on November 27 and fell subsequently to close at Rs206 on Thursday.

According to de-merger plan, 100 shares owned in GE Shipping was reorganised to 80 shares of GE Shipping and 20 of Great Offshore.
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R.S. Software rights issue oversubscribed 1.07 times
Mumbai: The rights issue of R. S. Software (India) Ltd, a software solutions provider in the payment systems domain, was oversubscribed 1.07 times. The company had fixed the rights issue price at Rs65 per share. The existing equity shares of the company are listed on the Bombay Stock Exchange, The National Stock Exchange, Delhi Stock Exchange, Ahmedabad Stock Exchange and the Calcutta Stock Exchange.
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United Spirits to raise $65mn
Bangalore: United Spirits, the spirits company of the UB Group, has raised $65 million (close to Rs300 crore) by placing 3.5 million shares held as treasury stock by the USL Benefit Trust at market price of close to Rs890 per share.

The company said that it has raised the cash to reduce its debt burden, which, at the gross level, stands at Rs1,540 crore. USL has cash reserves of close to Rs250 crore.

USL, prior to the current sale, held 17.24 million shares accounting for 18 pc of its equity in treasury stock spread between USL Benefit Trust and Shaw Wallace. At the current maket price, the holding is valued at close to Rs2,000 crore.

USL is also in advanced negotiations with Scotland-based Whyte & Mackay for a possible buyout, which will cost USL close to Rs3,500 crore.
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Indiabulls property arm worth Rs15,125-cr
Mumbai: The leading international real estate consultancy Knight Frank has valued Indiabulls' Financial Services stake in its real estate projects at Rs15,125 crore.

According to a release issued here, the company said Knight Frank has estimated the present value of 100 per cent of the six development projects, in which IBREl is involved, at Rs21,569 crore.

The total present value of IBREL's effective ownership in project companies undertaking the proposed development is Rs15,125 crore.

The company further said the board has fixed January 9, 2007 as the record date for ascertaining list of IBFSL shareholders, who would be entitled to be allotted shares of the real-estate arm, in terms of the scheme.
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Stock Holding Corp to set up institute
Mumbai: Stock Holding Corporation of India plans to acquire 15 acres of land at Patalganga in Maharashtra to set up a Capital Market Institute. This Institute will tie up with the International Capital Market Institute to provide a six-month certification course of international repute in the capital market segment, said SHCIL.

SHCIL has already been allotted five acres of land in Agartala to set up a Capital Market Institute, which will serve the surrounding areas.

SHCIL recently opened its 16th branch in Mumbai offering depository participation services, broking, mutual fund distribution, and other services. SHCIL would offer concessional annual maintenance charges for students at Rs99 against the regular charges of Rs500. SHCIL will also organise a free two-day capital market workshop for students who register before March 31, 2007.
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