CLB approves Haldia Petro share allotment to IOC
New Delhi: The Company Law Board has approved the allotment of 150 million shares in Haldia Petrochemicals to Indian Oil Corporation (IOC).

The Board has said that it is at liberty to deal with these shares in any manner. Further, the Board confirmed the transfer of 155 million shares by West Bengal Industrial Development Corporation Ltd (WBIDC) at Rs10 per share to the petitioners who include Chatterjee Petrochem (Mauritius) Co, Winstar India Investment Co Ltd, India Trade (Mauritius) Ltd and Chatterjee Petrochem (India) Pvt Ltd. The order directs Chatterjee Petrochem (India) Pvt Ltd to pay Rs125 crore to WBIDC towards the balance consideration for the 155 million shares on or before February 28 this year.

The order states that the petitioners are at liberty to take control of the day-to-day management of the company as soon as they pay for the 155 million shares, as they would hold majority equity of 52 per cent.

Moreover, WBIDC and the West Bengal government have been asked to transfer 520 million shares held by them in Haldia Petrochemicals Ltd to the petitioners. The fair price for the 520 million shares shall be determined by a valuer to be appointed by it or Rs28.80 per share, whichever is higher, the CLB has said
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Benchmark AMC launches Gold Exchange Traded Fund
Mumbai: Benchmark Asset Management Company has launched the country's first gold exchange traded fund, `Gold BeES.' The primary investment objective of Gold Benchmark Exchange Traded Scheme (Gold BeES) will be to provide returns that, before expenses, closely corresponding to the market price of gold. Gold BeES is an open-ended, Exchange listed scheme tracking domestic prices of gold through investments in physical gold. The new fund offer (NFO) starts on February 15 and closes on February 23.

Each unit of Gold BeES will be approximately equal to the price of one gram of gold. During the NFO there will be an entry load ranging from 1.5 per cent to 0 per cent, while no load would be charged on an ongoing basis. However, the investor will have to pay the brokerage charges applicable on the trade. The total expense ratio of the fund will not exceed one per cent per annum.

The investors will be exempt from wealth tax but will have to pay long-term capital gains tax. The minimum initial investment in the fund is Rs10,000 and in multiples of Rs1,000 thereafter.
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Tata Mutual files for gold fund
Mumbai: Tata Mutual Fund is planning to launch the Tata Gold Fund and has filed an offer document with the Securities and Exchange Board of India. The open-ended exchange traded fund will track the domestic price of gold through investments in physical gold and will be listed on the stock exchanges. Units with face value of Rs10 will be issued along with an applicable load during the new fund offer. The minimum investment is Rs5,000 and the units can be traded on the stock exchanges. Minimum repurchase size would be units of the value of not less than in Rs1,000, and in multiples of Re1 thereafter. The fund will also provide a systematic investment plan for the investors, the fund house said in its offer document. Long-term capital gains tax will be applicable after one year.
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Corus buy: Tata stocks hammered
Mumbai: While national and Tata pride got a boost with the Tata-Corus deal the Tata Steel stock came under the hammer severely on the BSE and NSE. The stock plunged by 10.66 per cent to close at Rs463.95 from Rs519.3 on Monday at the BSE, while it shed 54.35 points at the NSE to close at Rs464.9. The scrip opened on the BSE at Rs499.

In a volatile trading session that saw the stock hit an intra-day low of Rs464.9, 58.8 lakh shares changed hands at the BSE.

Market men believe the company is paying too high a price for the acquisition. They say that at 608 pence per share, the Corus purchase would put a considerable strain on the balance sheet and finances of Tata Steel.

However the company feels the stock markets were "taking a short term and harsh view."

Other analysts said the counter would face selling pressure in the days to come though the long-term outlook remained bullish.

Before the Corus auction, the Tata Steel counter saw some hectic buying on robust Q3 results and on reports that the company would not be able to clinch the Corus deal. On January 29, the stock rose by 1.4 per cent to Rs519.3

Selling was also witnessed in other companies in the Tata stable, with the steepest fall being recorded in Tata Motors of 2.42 per cent to end at Rs899.55. TCS was down 1.37 per cent at Rs1278.6, Tata Power (down 0.68 per cent) at Rs606.1 and Tata Tea was down 0.77 per cent to Rs711.05.
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Euro Ceramics plans to enter capital market
Mumbai: Euro Ceramics, a player in the ceramics and aluminium extruded sections segment, is entering the capital market with an initial public offering of 56.21 lakh equity shares of Rs10 each. The price band has been fixed at Rs150-180 per share. The issue opens on February 7 and closes on February 13. Of the 56.21 lakh equity shares, 1.21 lakh equity shares have been reserved for employees, reducing the net offer to 55 lakh equity shares, said a company release. The net issue to the public will constitute 32.16 per cent of the fully diluted post IPO paid-up capital of the company. About 50 per cent of the net issue to the public will be available for allocation to qualified institutional buyers on a proportionate basis (of which 5 per cent shall be allocated for mutual funds only).

About 15 per cent of the net issue will be available for allocation on a proportionate basis to Non-institutional bidders and about 35 per cent of the net issue to the public will be available for allocation to retail individual bidders. The company will use the proceeds to part finance the setting-up of manufacturing facilities for sanitary ware products at Bhachau, Kutch.
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Autoline lists at 16 pc premium on BSE
Mumbai: Autoline Industries' stock debuted on the NSE at a premium of 2.22 per cent at Rs230 against the offer price of Rs225. The stock touched an intra day high of Rs287.70 and closed at Rs257.13. A total of 53,35,774 shares were traded on the NSE.

On the BSE, the stock opened at a premium of 16.06 per cent and reached an intra day high of Rs282 and a low of Rs252.25 before closing at Rs257.95. The total traded quantity on the BSE was 57,62,098 shares.
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Realty MFs to be close-ended: Sebi
Mumbai: The Securities and Exchange Board of India may make it mandatory for real estate mutual funds (REMFs) to be closed-ended at least for three years, considering the long gestation of realty projects, industry experts said.

Sebi is also likely to allow funds to disclose their net asset values (NAVs) quarterly, as is the practice in the US, rather than daily, they said.

Issues related to taxation of REMFs are expected to be addressed in the forthcoming Budget.
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