The Mint Report for 13 May 2010

The Mint Report for 13 May 2010

Standard Chartered is set to carry out its Indian share sales later this month. The bank announced it will issue Indian Depository Receipts or IDRs between 25-28 May. Anchor investors will get to start investing on 24 May. And retail investors will get a 5% discount. Chartered’s sale will consist of two hundred and forty million I D Rs. And every ten will in turn represent one share of the bank. The issue is expected to raise between five hundred and seven hundred million dollars through the issue. IDRs are rupee denominated instruments that let foreign companies raise cash here in India.

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Godrej Consumer Products, which expects a windfall from its latest acquisition. On Wednesday it announced it was buying out baking giant Sara Lee’s 51% stake in their joint venture. The deal is worth $234 million. And Godrej says the buy will increase its revenue 86% to Rs3,800 crore this year. The two started their venture fifteen years ago, and actually gained the top spot in the market for household insecticides, with brands like Goodknight and Hit.

New questions are emerging about Bt cotton. After a ten-year long study, Chinese scientists have concluded that some parasites are far more prevalent in Bt cotton crops. But their study also notes that the parasites do little harm. The study, which appears in Friday’s edition of Science, involved analysis of six major cotton growing areas in China. At present, more than ninety percent of India’s cotton crop consists of genetically modified product from Bt. India’s cotton farmers use $38 billion worth of pesticides every year.