Ranbaxy plans ADS offering to finance Merck arm acquisition
New Delhi: Ranbaxy Laboratories is planning to raise $2 billion via American Depository Shares (ADS) to fund the proposed acquisition of German pharma firm Merck's generics business. Bids for the business, valued at $5.2 billion, are likely to be opened by the second week of March. Ranbaxy's shares on the BSE closed up 1 pc at Rs395.50 yesterday.

The other companies in the race for the Merck business are: Teva Pharmaceutical Industries; the world's largest generics company; Novartis AG's Sandoz generics unit; Iceland's Actavis; and Dr Reddy's Laboratories. Cipla recently withdrew from the race.
Private equity groups such as Carlyle and Blackstone may partner Indian firms in the auction.

Ranbaxy might have to take another proposal to its board of directors to raise the earlier limit of up to $1.5 billion (using various instruments to fund growth, including acquisitions) set in October 2005. Ranbaxy had already exhausted $450 million of that through foreign currency convertible bonds (FCCBs) to fund its eight acquisitions, including the $324 million buy of Romania's largest independent generic company. Terapia.

Merck's generics business reported revenues of $2.35 billion in 2006 in the $50-billion global market for generics. It is currently ranked among the top ten global suppliers in generics and has a range of more than 400 products across nearly all therapeutic areas.
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Essar Shipping delisting floor price set at Rs31.62
Mumbai: Essar Shipping and Logistics has announced that it will buy back the remaining 23.54 per cent of the fully paid-up Essar Shipping from its shareholders at a floor price fixed at Rs31.62 for each share on the basis of average 26-week high and low closing price on the BSE.

The company will acquire 10.03 crore equity shares for the purpose of delisting the equity shares of Essar Shipping from the BSE.
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Reliance Ind m-cap at Rs2-lakh cr
Mumbai: After IT major Wipro and ONGC, Reliance Industries (RIL) has become the third company to cross the Rs2-lakh crore mark in market capitalisation. While Wipro crossed the Rs2-lakh crore mark in 2000, ONGC achieved this last year. However, since then, their capitalisation has fallen below the mark.

The total traded quantity of RIL on the BSE was 11.54 lakh shares and the company's stock fell 0.26 per cent to close at Rs1,414.55. On the NSE, the stock fell 0.43 per cent to close at Rs1,414.60, while the total traded quantity of shares was 32.80 lakh.
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Sebi imposes Rs1-cr fine on DLF Commercial Developers
Mumbai: Sebi has imposed a fine of Rs1 crore on DLF Commercial Developers, for trading in the shares of Bhorukha Financial Services (BFSL) at the unrecognised Magadh Stock Exchange (MSEA) from August 1 to August 12, 2005.

As per a SEBI order, out of total trading turnover of Rs90.06 crore during the said trading period, approximately Rs89.28 crore was in the scrip of BFSL, which accounted for nearly 99 per cent of the total trading turnover.

BFSL scrip is listed only in the Bangalore Stock Exchange (BgSE) but was traded in MSEA under the `permitted category' by member-broker Rajat Share and Stock Brokers, who acted as broker to both the sellers (promoters of BFSL) and the buyer (DLF). The promoters of BSFL sold their entire holding in BFSL at Rs4,490 per share to DLF. Sebi said that as the MSEA was unrecognised, a corporate entity like DLF, slated to launch the largest IPO in the Indian capital market of over Rs10,000 crore and the promoters of BFSL, which is selling its own company shares involving Rs90 crore, it was expected that the compliances and due diligence level should have been of very high standard.
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Easier market access on anvil for NRIs, foreigners
Mumbai: Overseas investors like non resident Indians (NRIs), foreign firms and individuals may be allowed to invest in the local stock markets by registering with foreign institutional investors (FIIs). However FIIs, who register these investors as sub-accounts will be responsible for any transgression of investment and regulatory norms in sub-accounts and will have to conduct all checks on the investors.

Securities market watchdog Sebi will have to rework its regulations relating to FIIs to facilitate these changes. Similarly, the Foreign Exchange Management regulations administered by the RBI will need to be tweaked in consultation with the government since NRIs are now allowed to invest only through Portfolio Investment Schemes.

The proposal to redefine and expand the criteria for sub-accounts of FIIs was discussed at Sebi's weekend board meeting, officials said. According to an official privy to the developments, the government has made it clear that the objective should be to ensure a minimum issuance of participatory notes (PNs) in the Indian markets. PNs are derivative instruments whose underlying securities are shares of Indian companies and are issued by FIIs registered here to investors who either want to trade anonymously or are unwilling to go for a direct registration.

The issue of PNs has fuelled concerns of money laundering and round tripping - the practice of local money flowing out of the country and then coming back in the guise of foreign investment.
Policy makers say that if the aim is to keep PNs out - it is necessary to remove the distortions or the incentives which exist now for overseas investors to use such instruments.
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Pyramid Saimira to raise $100mn from overseas markets
Mumbai: Pyramid Saimira Theatre (PSTL), plans to raise $100 million via issue of FCCBs and also plans to set up an special purpose vehicle (SPV) along with realty developers for establishing about 100 malls with multiplexes in South India and about 100 malls with multiplexes in the rest of India.

The board of the company also approved the JVs to be formed with those realty firms. An investment up to 50 pc shareholding in the SPVs to be formed, but not below 26 pc based on the financial closure plan of the SPVs, has also been approved. As per initial estimates these SPVs will create approx 60 million sqft with an investment of Rs 20,000 crore spread over four years.
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Gold rises in line with global trend
Mumbai: Gold prices gained in the international markets amidst thinly traded volumes owing to holiday in the US and Chinese markets. Analysts say gold would continue to rise in the coming days. Taking cue from the overseas markets, domestic prices rose with gold quoting Rs 9,635 for 10 gm (.999 fineness) and silver quoting at Rs 20,440 per kg in Mumbai.

Silver touched $13.91/13.96/oz in global markets maintaining gains from Friday trades.

Precious metal prices have rallied in the international markets following weak US economic data.

Gold futures for April delivery rose $2.30 or 0.3 per cent to $675.10 an ounce in after-hours trading on the Comex division of the New York Mercantile Exchange.

The total Indian demand for gold, comprising jewellery and net retail investment, fell by 4 per cent in tonnage terms in calendar 2006, according to the latest report of World Gold Council.
Demand for retail investment purposes rose 38 per cent in terms of tonnage in calendar year 2006. Jewellery demand saw a dip of 14 per cent year-on-year.

However, the demand for yellow metal in the fourth quarter of 2006 has far exceeded the demand in the same period of 2005, rising by 110 per cent.
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