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Kotak
Realty to raise $350 million through second fund
New Delhi: Kotak Realty, the real estate investment
arm of Kotak Mahindra, plans to funds worth $350 million
through its second fund.
The
fund has got commitments from international investors,
financial institutions, multilateral agencies and high-net
worth investors in the United States, the Middle East
and Europe for investing in Indian real estate.
The
fund is expected to close in the next five to six weeks.
In
May 2005, Kotak Mahindra Investments started Kotak Realty
Fund by setting up of the Kotak India Real Estate Fund
I — a $100-million fund for investing in real estate.
Currently,
HDFC and IL&FS have global funds where international
investors have parked money for investing in real estate
opportunities in India.
While
HDFC raised a $750 million international fund in September
last year, IL&FS Investment Managers raised $502.57
million in its international fund in May 2006.
Kotak's
new fund would seek equity investments in development
projects and enterprise level investments in real estate
operating companies. These would include hotels, healthcare,
retailing, education and property management.
The
proposed fund will also focus on the northern region.
Till now, Kotak Realty's first fund has made most of its
investments in the southern and western regions of the
country.
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Fidelity
gets capital gains tax shock
Mumbai: The Authority on Advance Rulings (AAR)
on income tax has ruled that the income of two foreign
institutional investors — Fidelity Advisory and Mathew
International — will be taxed as capital gains and
not as business income.
The
FIIs have the option to appeal to the Supreme Court. They
had contended that their business income could not be
taxed since they did not have a permanent establishment
in India.
Tax
experts said the order, besides being binding on the department
and the appellants the order could be implemented for
all other FIIs filing their income as "business income."
The
AAR's decision will be binding irrespective of whether
India has a double taxation treaty with an FII's country
of origin. The FIIs had appealed to the AAR five months
back.
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Rel
Comm plans $1.2-billion GDR
New Delhi: Reliance Communications has asked for
government approval for sponsoring a secondary Global
Depository Receipts (GDR) offering of up to $1.2 billion,
representing 6.53 per cent of the total paid-up equity
shares of the company.
This
will include a green shoe option of 20 per cent ($200
million). The offering will be made at international stock
exchanges or to institutional investors in Japan, for
which a time schedule has not been indicated.
The
company informed the stock exchanges that going by the
current price of approximately Rs400 a share, an aggregate
offer size of $1.2 billion (including the customary green
shoe option) would comprise 13.35 crore shares, though
the price and market conditions at the time of the issue
could vary the number.
The market price of a Reliance Communications equity share
was Rs442.05 on December 1, three days before the company's
board passed a resolution for the sponsored GDR offering.
In
the filing for the proposed secondary GDR, the company
said the offering would broaden its investor base, increase
its floating stock at international stock exchanges, thereby
attracting large global funds, and enhance the company's
global brand. The company's GDRs are listed on the Luxembourg
Stock Exchange.
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Spentex
decides on 9:10 share ratio for Indo Rama acquisition
New Delhi: Spentex Industries has said it would
issue nine shares for every 10 held by shareholders in
Indo Rama Textiles Ltd (IRTL). Last year, Spentex had
acquired IRTL and now holds 84.02 per cent stake in it.
A company release said the Delhi High Court has approved
the merger of IRTL with Spentex.
Pursuant
to the scheme of amalgamation, the entire business ofIRTL
shall be merged with the company, it said. On May 24,
2006, Spentex had announced the acquisition of 49.03 per
cent equity of IRTL, taking its total stake in the company
to 84.02 per cent.
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Big
MF investments fall for lack of MIN
Kolkata: The number of applications from individual
investors for large mutual fundinvestments has fallen
for want of MIN (mutual fund identification number).
Sources
say the situation will become normal with the passage
of time, especially with the realisation that larger allocations
cannot be made unless MIN is quoted.
The
system of using the unique number, which has been effective
from January 1, is being considered significant for a
number of reasons.
MIN
officials say will be required over and above other unique
identities.
Such
identities include PAN, which is issued for I-T purposes,
and MAPIN, which is issued under SEBI (Central Database
of Market Participants) Regulations, 2003.
MAPIN,
which has so far been issued by NSDL on behalf of the
regulator, in fact is being revisited, with SEBI deciding
to go in for a fresh set of agencies.
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House
of Pearl IPO fixed in price band of Rs525-Rs600
Mumbai: House of Pearl Fashions is entering the
capital market with an initial public offering of 59.84
lakh equity shares of Rs10 each through a 100 per cent
book-building issue.
The
price band has been fixed at Rs525-Rs600 per equity share.
The
issue of equity shares comprises a fresh issue of 47.59
lakh shares by the company and an offer for sale of 12.25
lakh equity shares by the promoters.
There
will also be a green-shoe option of up to 6.12 lakh equity
shares of Rs10 each. The issue will constitute 33.52 per
cent of the fully diluted post paid up equity share capital
of the company assuming the green shoe option is exercised.
The
company plans to raise Rs346 crore to Rs396 crore to increase
its production capacity from 20 million apparel pieces
per annum to 40 million pieces per annum. The expansion
is expected to be completed by 2010.
The
company also plans to foray into retail by opening 10
pilot stores in India by next year.
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