M&M announces open offer for Punjab Tractors, subsidiaries
New Delhi: Mahindra & Mahindra has announced an open offer for buying a further 20 per cent in Punjab Tractors and its subsidiaries Swaraj Engines and Swaraj Automotives.

The tractor company won the bid for acquiring a 43.3 per cent stake in Punjab Tractors last week from private equity firm Actis and the Burman family in a deal that values Punjab Tractors at about Rs2,200 crore.

M&M made the offer to acquire up to 12.15 million shares from shareholders of Punjab Tractors at Rs360 per share, the same price that it agreed to pay for the 43.3 per cent stake. Separately, M&M made an offer to buy almost 480,000 shares, or 20 per cent, in Swaraj Automotives, in which Punjab Tractors owns 24.2 per cent, at Rs244 per share.

The company also made an open offer to buy 20 per cent, or 2.48 million shares in Swaraj Engines Ltd, in which Punjab Tractors owns 33.2 per cent at Rs151 a share. The financing of the three offers would be through internal accruals and / or corporate borrowings, M&M said. The offers, which are not subject to a minimum level of acceptance, open on 3 May and close on 22 May.

The Punjab Tractors scrip closed at Rs308.35 down from an opening of Rs314 per share on the Bombay Stock Exchange, while the Swaraj Engines scrip fell 11.5 per cent to close at Rs146.05 per share. The drop could be driven by the Punjab Government's recent announcement to hold an enquiry into the divestment of Punjab Tractors, say analysts.
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Patni Computers implements HR tool for BSE
Mumbai: Patni Computer Systems has implemented HRMS (Human Resource Management System) in the Bombay Stock Exchange (BSE). HRMS is an integrated system that helps to shape an intersection between human resource management and information technology, enabling a comprehensive real-time view of the organisation.

The new system will enable the BSE to get detailed transaction-wise data, soft-close its accounts on a monthly basis, and generate monthly MIS (management information systems) reports, Patni said, in a filing with the BSE.

The company has also developed a Web-based application, which assists in tracking issues raised by users.
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UTI Mutual to merge six funds
Kolkata: UTI Mutual Fund (MF) plans to merge a number of its small equity funds with three of its larger products - Index Select Fund, MNC Fund and Mid Cap Fund.

The funds to be merged are: PSU Fund, Large Cap Fund, Brand Value Fund, Growth & Value Fund, Dynamic Equity Fund and India Advantage Equity Fund. The fund house, in a notice to unit-holders, has announced book closures; the dates range from April 12 to April 26.

The dates of allotment have been set between April 11 and April 19. PSU Fund and Large Cap Fund, which have Rs 20 crore and Rs28 crore respectively under management, will be merged into the Index Select Fund.

The latter, with Rs241 crore, invests in stocks constituting the BSE Sensex and the S&P CNX Nifty and has, according to the February fact sheet, provided 22.39 per cent return since inception in May 1997.
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ICRA's IPO price band in range of Rs275-330
Mumbai: Credit rating and consulting agency, ICRA, will enter the capital market with a public issue of 25,81,100 equity shares of Rs10 each to be decided by 100 per cent book building process through an offer for sale.

The company will not receive any proceeds from the offer. The price band for the issue has been fixed between Rs275 and Rs330 per equity share. The issue opens on March 20 and closes on March 23.

IFCI and the administrator of the specified undertaking of Unit Trust of India (UTI), currently holding 21.13 per cent and 7.95 per cent stake, respectively in the company, will offload their entire stake post-issue.

The shareholding of SBI will come down to 9.99 per cent from 11.5 per cent. Moody's group's stake, the largest promoter of ICRA currently holding 29.1 per cent equity of the company, will come down to 28.51 per cent even after the preferential allotment of shares to it at the offer price.

The issue also provides an employee stock option accounting for 9.06 per cent of the equity post-offer. The issue constitutes 25.81 per cent of the fully diluted post-offer capital of the company.

Of the total issue, 50 per cent will be allotted to qualified institutional bidders, of which 5 per cent will be given to mutual funds. At least 15 per cent of the offer will be allocated to non-institutional bidders and 35 per cent to retail individual bidders on a proportionate basis.
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