Kotak launches small caps based PMS
Mumbai: Brokerage firm Kotak Securities will launch a portfolio management scheme (PMS) focused on small cap companies having a market cap of less than Rs2,500 crore. This will be the first PMS dedicated to smaller stocks by any brokerage in the country.

The scheme called 'Kotak Origin' will have a long maturity period of 30 months or upto December 2009.

Company officials said there were about 500 companies with a market cap between Rs100 crore and Rs500 crore, 750 companies in the Rs500 crore-Rs1,000 crore market cap and another 200 companies in the market cap of Rs1,000 crore and Rs2,500 crore. Kotak would invest in 20 to 25 companies out of the 950 companies that would qualify for the scheme.

Kotak Securities is confident of mobilising Rs180 crore through its latest portfolio management scheme.

The minimum amount is set at Rs10 lakh per investor.

Kotak Origin is the second portfolio management scheme of Kotak Securities in the last couple of months. It recently raised Rs150 crore for a scheme aimed at large-cap investing. The scheme, which is looking to invest in a small set of 18 large-cap stocks, is targeted at investors who are risk-averse in nature.
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India Infoline cancels sale of credit subsidiary to Merrill Lynch
Mumbai: India Infoline has called off its deal with DSP Merill Lynch to sell its shareholding in subsidiary Moneyline Credit Pvt Ltd (formerly Khambhat Investment & Trading Company Private Limited), to the latter due to prolonged delays in completing the transaction.

In regulatory filings with Bombay Stock Exchange, India Infoline said "owing to prolonged delays in finalisation of the transaction and changed business plans, the MoU was mutually terminated with immediate effect".

Consequently, Moneyline Credit will continue as a subsidiary of India Infoline.

Earlier this year, the New York-based Merill Lynch had hiked its stake in India Infoline to 14.10 per cent and had also initiated talks for acquiring a significant stake in India Infoline Distribution Company, the distribution arm of India Infoline for over Rs150 crore.

India Infoline's annual net profit for the last fiscal went up by 54 per cent to Rs75.7 crore and its revenues shot up by 95 per cent to Rs525 crore.
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Reliance Capital picks up 5 pc stake in Network 18
Mumbai: Reliance Capital has acquired a 5 per cent stake in Network 18, the group holding company of broadcasters TV18 and GBN.

Reliance Capital acquired 25.55 lakh shares, representing 5.02 per cent stake in Network 18 Fincap Ltd through open market transaction on May 10, the company informed the BSE. When contacted, a company spokesperson confirmed the deal. The transaction comes on the heels of Reliance Capital's open offer for acquiring 20 per cent stake in television broadcaster TV Today Network Ltd, which runs Hindi news channel Aaj Tak and English news channel Headlines Today.

Earlier, the company had announced that the open offer would be made at a price of Rs130.50 per share, amounting to approximately Rs150 crore.

On May 3, the company had acquired 13.52 lakh equity shares of Network 18 Fincap at a price of Rs399.22 in a bulk deal on the BSE.
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