Mumbai: State-owned Hindustan Copper Limited (HCL) has filed its draft red herring prospectus with capital markets regulator Securities and Exchange Board of India, or Sebi, for a follow-on public offering (FPO), the company said on Monday.
The issue is expected to offer up to 18.39 crore equity shares with a face value of Rs 5 each, including a fresh issue of 9.25 crore shares by the company and an offer for sale of 9.25 crore shares by the government.
The issue will constitute 18.08% of the post-issue paid up equity capital of the company. ICICI Securities Ltd, Enam Securities Pvt Ltd, Kotak Mahindra Capital Co. Ltd, SBI Capital Markets Ltd and UBS Securities India Pvt Ltd have been appointed as the book running lead managers to the issue. HCL’s share sale is a part of the government’s divestment plan this year.
SBI to offer bonds worth up to Rs 1,000 cr
Mumbai: State Bank of India (SBI), India’s largest lender, on Monday filed a draft prospectus with capital markets regulator Securities Exchange Board of India, or Sebi, to offer bonds worth up to Rs 1,000 crore to retail investors. .
The original plan is to issue Rs 500 crore in two series of bonds with a green shoe option of a further Rs 500 crore. The bonds will be listed on the National Stock Exchange .
The minimum application size is Rs 10,000 each in both the bonds. The first series of bonds is of 10-years maturity and has a call option attached to it after five years while the second bond has 15 year maturity but with a buyback option at the end of 10 years. .
“The bank intends to deploy the issue proceeds to augment its capital base in line with its growth strategy,” SBI said in its prospectus. Both Credit Analysis and Research Ltd, and Crisil Ltd have given the bonds, subjected to tax, their highest ratings , according to the draft prospectus.
Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Co. Ltd, and SBI Capital Markets Ltd are the lead arrangers of the issue.
SCI eyes ports and marine services sector
Mumbai: India’s biggest ocean carrier, the state-run Shipping Corp. of India Ltd (SCI), is looking to enter port and marine services sector through strategic alliance with a global firm as part of a diversification plan, according to N Bandyopadhyay, a senior vice president, looking after business development and alliance cell at the company.
On 24 September, SCI invited so-called expressions of interest from companies to form an alliance for participating in the port and marine services sector, the company said on its website. The plan includes management of liquefied natural gas (LNG) terminals.
Earlier this month, SCI invited similar expression of interest to buy a minority stake in a shipyard.
Assocham sees 30%-40% growth in ad spends
New Delhi: “ A revival in the economy is reflecting in the way advertising spends are growing with the Indian companies expected to spend 30% to 40% more in 2010-2011 on promotional activities,” according to a trade body study.
According to Associated Chambers of Commerce and Industry of India or Assocham study, majority of companies it surveyed had hiked their advertising budget for the current fiscal year compared to the last financial year.
Assocham surveyed nearly 500 medium and large companies in various cities including New Delhi, Mumbai, Chennai,Hyderabad, Pune, Kolkata and Chandigarh in the months of July and August. Fast Moving Consumer Goods (FMCG), consumer electronics, automobile, real estate, textiles, gems and jewellery and luxury products sectors were upbeat about their advertising spending, according to the survey.
IDFC to raise Rs 3,400-crore through retail infra bond issue
Mumbai: Infrastructure Development Finance Limted (IDFC) plans to raise at least Rs 3,400 crore through tax-free infrastructure bonds in the current fiscal year a first of its kind bond issuance targeted at retail investors.
The 10-year maturity bonds, to be listed on both Bombay Stock Exchange and National Stock Exchange, are tradeable after a lock-in period of five years.
The bonds will be issued in four series “ the first two will offer 8 % while the other two will offer 7.50% per annum with a buy-back option.
The minimum investment limit has been fixed at Rs 10,000. The issue will open on 30 September and close on 18 October. Citigroup Global Markets India Private Ltd, Enam Securities Private Ltd, Kotak Mahindra Capital Company Ltd and IDFC Capital Ltd are the lead managers to the issue.
IDFC is also looking to raise Rs 3,000 crore through external commercial borrowings (ECB) route in the current fiscal, Rajiv Lall, managing director and chief executive officer said at a press conference in Mumbai on Monday.
In July, the government had allowed Life Insurance Corporation of India, IDFC, IFCI Ltd and specified non-banking financial companies (NBFC) to issue tax-free infrastructure bonds to channel more savings to the fund-starved infrastructure sector.
In June, RBI had classified IDFC as an infrastructure finance company, enabling it to access cheaper resources to meet its fund requirement.
As per the Budget announcement in February, investments in infrastructure bonds up to Rs20,000 will be tax-deductible.
(Reuters contributed to this story)
Birla Corp’s move to new location halted
Kolkata: The Company Law Board (CLB) issued an order on Friday stalling the MP Birla group’s plan to move its flagship firm Birla Corp. Ltd out of Birla Buildings, the headquarters of all Birla companies in Kolkata.
The MP Birla group is currently controlled by Harsh V. Lodha, its chairman, who is fighting a legal battle with the Birla family to establish his right to the MP Birla group’s estates, including the companies under it.
People close to the Birla family had moved the CLB after Birla Corp. indicated to its shareholders that it was to move a new office in south of Kolkata. For more than six years since the spat with the Birla family began, the Lodhas have not entered Birla Buildings.
Dentsu’s India partner picks stake in food channel
Mumbai: Sandeep Goyal promoted Mogae group, the India partner of the Japanese advertising agency Dentsu, is picking 20% stake in Turmeric Ventures, chef Sanjeev Kapoor’s company which will launch a 24x7 food and lifestyle channel. The value of the deal is not known.
The channel is expected to go on-air before the end of the year. The Astro Group of Malaysia, with interest in media, is investing $28 million in the new channel and will hold majority stake. This is not the first time that Mogae and Astro Malaysia will be working together. The two have a 50:50 joint venture for mobile value-added services called Mogae Digital. Both Mogae and Astro are also co-investors in Diginatives, a software company specializing in educational products.
Sandeep Goyal, a former Group CEO of Zee Telefilms (2001-2), is the founder Chairman of Dentsu India which currently has four full service ad agencies in its fold, with 2010 capitalised billings of Rs 1200 crores. The Mogae Group owns 26% in all of the Dentsu ventures in India. Mogae also owns 49% stake in a JV with Dentsu for the Middle East headquartered in Dubai.
Mogae has a 50:50 JV with the TOI Group in the venture Indian Fantasy Games which runs India’s largest gaming portal www.indianfantasyleague.com. Mogae is also a co-promoter with TOI, Star TV and Zee Group in www.lastminuteinventory.com, a media trading portal.