SEBI order against depositories, DPs stayed
Mumbai: The Securities and Appellate Tribunal (SAT) has stayed the disgorgement order issued by the Securities and Exchange Board of India on November 21, 2006, against — NSDL, CDSL and eight depository participants.

These entities were asked to pay up Rs116 crore, which, the regulator said, they had unjustly gained at the cost of small investors, in the IPO allotment irregularities.

The depositories had appealed to SAT against the SEBI order and after hearing the appeal, SAT admitted the case and stated that "the issues involved in the appeal require a detailed consideration." It also stayed the order.

NSDL's contention was that SEBI had passed the order without granting the accused a proper hearing. Even in the disgorgement order, it was stated that no hearing would be granted to them. The depository participants include Karvy Stock Broking Ltd, HDFC Bank and IDBI Bank.
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SEBI exempts Revathi Equipment promoters from buyback norm
Coimbatore: The Securities and Exchange Board of India (SEBI) has exempted the promoters of Coimbatore-based Revathi Equipment, a mining equipment manufacturer, from making a public announcement of the buyback of equity shares.

Utkal Investments and Renaissance Asset Management Company, which are the promoters, currently hold 60.87 per cent of the equity shares of the company, which has announced buyback of equity shares from shareholders at a price not exceeding Rs700 a share.

Because of the buyback, the voting rights of the promoters would go up from 60.87 per cent to 63.71 per cent in case of 100 per cent response to the buyback plan.

In his order, Mr G Anantharaman, wholetime member of the SEBI, said that the promoters had sought exemption from the applicability of regulation 11(2) of the takeover regulations on the grounds that they are already in control of the company and the increase in voting rights was incidental to the buyback proposal and was "not an active acquisition."
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UFO Moviez raises $22 million
Mumbai: UFO Moviez, a digital cinema chain, has raised $22 million of equity financing from 3i Group, which subscribed to cumulative convertible preference shares issued by the former.

It also has the option to invest an additional $3 million at a later date. Apollo International promotes UFO Moviez, a part of Group Apollo, led by Onkar S Kanwar.

UFO Moviez will utilise this capital to invest in the necessary hardware to expand it footprint in India and abroad.

Immediate expansion plans include West Asia, South East Asia and Africa.
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Redington plans to raise Rs149.5 crore thru IPO
Mumbai: Chennai-based provider of IT products and support services, Redington (India), is coming out with an initial public offering to raise around Rs149.5 crore in the upper end of the price band of Rs95-Rs113 per share.

The proceeds will be used to part-fund setting up of automated distribution centres (ADCs) and service and repair centers (SRC) in India and Dubai.

The company's offering of 1.32 crore equity shares of Rs10 each comprises about 16.99 per cent of the fully diluted post-issue paid up capital of the company. The issue opens on January 22 and closes on January 25.
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PFC IPO to be launched on 31 January, 2007
New Delhi: Power Finance Corporation (PFC) has obtained clearance from the SEBI and is likely to enter the capital market with its IPO on January 31.

The issue is likely to close on 6 February. The likely price band or how much the company plans to raise from the public offer is not known.

The non-banking finance company had filed its draft prospectus for the offer with the market regulator in December last year.

PFC is the first among four public sector power companies that would come out with an IPO over the next six months.

Late last year the Union Cabinet also permitted Power Grid Corporation, Rural Electrification Corporation and National Hydroelectric Power Corporation to tap the market.

The PFC offer, which would be for 10.22 per cent fresh equity shares, is expected to enable the company to mop up around Rs1,500 crore.
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