Institutions
may be allowed to short-sell in capital markets
Mumbai: Sebi chief M Damodaran has Sebi is considering
allowing institutions to short sell in the capital markets
and expects to see it through in the current calendar
year.
Short
selling allows sale of securities that is not owned by
the holder. However, the seller re-purchases the securities
later at a lower price and returns it to the holder.
He
also said Sebi had started work on the implementation
of the R H Patil Committee recommendations on strengthening
the corporate bond market and results would be out soon.
On
a separate exchange for small and medium enterprises (SMEs),
Sebi chief said the market watchdog was working on devising
a model, which would facilitate smaller companies to tap
the capital markets without lowering the bar for regulations.
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Fortis
Healthcare raises Rs56 crore from UK firms
New Delhi: Fortis Healthcare (FHL) has signed agreements
(pre-IPO) with UK-based Metdist group of Companies and
Trinigy Capital for investment worth an aggregate amount
of Rs56 crore in the equity shares of FHL.
The
first two pre-IPO agreements are for allotment of 10 lakh
equity shares each to Raj Kumar Bagri, and Apurv Bagri
both of Metdist group.
The
third pre-IPO agreement is for allotment of 20 lakh shares
to Trinity Capital. The equity shares issued pursuant
to the pre-IPO agreements shall be subject to lock-in
after the completion of the IPO, as per the Sebi regulations.
Metdist
group is into metals trading firm and is based in London.
It has a presence in Malaysia, Thailand, China, the UAE
and India. Trinity was formed in 2006 to invest in real
estate and real estate-related entities in India.
According
to the Draft Red Herring Prospectus filed with the Sebi,
the company has left a provision of a maximum of 17,884,614
equity shares for a pre-IPO placement.
Last
month, FHL had signed signed pre-IPO agreements worth
$33.33 million (Rs150 crore) for issue ofr 119.2 lakh
equity shares with two US-based companies - Quantum (M)
Limited and Blue Ridge Limited Partnership. With the current
agreement, almost all of them have been picked up by investors.
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Nestle
to pay Rs86.32 crore to shareholders
Mumbai: Nestle India's board of directors has approved
a proposal to pay Rs43.23 crore lying in the share premium
account to shareholders after paying the applicable taxes.
The
board approved a scheme formulated under Sections 391
to 394 read with Sections 100 to 102 of the Companies
Act, 1956 for utilisation of the share premium account
and part of the general reserve for distribution to the
shareholders.
"An
amount of Rs43.09 crore, that was voluntarily transferred
by the company to its General Reserve Account between
1981 and 1997, in excess of the prescribed 10 per cent
of the profits of the company under the provisions of
the Companies (Transfer of Profits to Reserves) Rules,
1975, would be reclassified and credited to the Profit
and Loss Account for distribution to shareholders as special
dividend after paying applicable taxes," a release
said.
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Actis
asked to hike Phoenix price by 25 per cent
Mumbai: The Securities and Exchange Board of India
(SEBI) has asked buyout fund Actis to increase the price
of open offer for the minority shareholders of Phoenix
Lamps by 25 per cent to Rs190 a share.
The
open offer was made after Actis bought the entire 37 per
cent stake in Phoenix Lamps from its promoters, the Gupta
family.
Priced
at Rs152 a share, the mandatory 20 per cent public offer
was supposed to open on August 31 and close on September
19.
The capital market regulator Sebi has asked Actis to pay
the same price it offered to the promoters.
Actis
had agreed to pay Rs190 a share to the promoters of the
company, 25 per cent higher than the price of the open
offer on account of non-compete fees, an agreement the
market regulator did not find merit in.
In
a two-pronged deal, Phoenix Lamps had announced in July
that Actis would buy 8.73 million shares, representing
37 per cent stake, from the promoters of Pheonix Lamps.
It
also announced to allot 4.1 million convertible warrants
to Actis at Rs102 apiece. The warrants will be converted
into equal number of equity shares after 18 months.
Payment
of non-compete fees is not uncommon in mergers and acquisitions
in India.
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