Emami Raises Rs 300 Crore from QIP Issue – Kolkata-based FMCG major Emami Limited has raised Rs 310 crore through a qualified institutional placement (QIP) issue. The company placed 100,00,000 equity shares of Rs 2 each at the issue price of Rs 310 per equity share, aggregating to Rs 310 crore, with institutions. The proceeds from the QIP issue would be used to develop new products, pay off debt, and invest in secured instruments to protect all stakeholders interest. The funds may also be used for general corporate purposes, temporarily invest funds in creditworthy instruments, including money market mutual funds and deposits with banks. (Business Standard)
Balco Residual Stake Sale on Fast Track – The three-judge arbitration panel set up to resolve the controversy over the sale of the government’s residual 49 per cent stake in Sterlite-controlled Bharat Aluminium Company Ltd (Balco) has decided to meet in August, raising hopes of a resolution to the five-year-old dispute. Sterlite, a subsidiary of London-listed Vedanta, bought 51 per cent in Balco in March 2001 for Rs 552 crore when the National Democratic Alliance (NDA) government decided to divest the government’s stake in the public sector company. Sterlite owned the right to buy the remaining stake in the aluminium producer after a three-year embargo, but ran into differences with the government over valuation. (Business Standard)
Not Much Value in Merging With UltraTech: Grasim – Grasim Industries, the leading cement maker of the A V Birla group, is not enthusiastic at a proposal to merge with its subsidiary, UltraTech, as it does not see value in the process at this stage. It says investment bankers suggested merging after engineering giant Larsen & Toubro sold its residual 11.5 per cent stake in UltraTech to financial investors this month. Grasim acquired UltraTech Cement from Larsen & Toubro in 2003. In 2005-06, it created a single marketing team for both companies to save on energy and cost. In 2007-08, it even phased out Grasim’s national brand, Birla Super, to establish UltraTech as a single brand. If merged, they will become India’s largest cement firm, with a combined capacity of 42 million tones a year, overtaking ACC, controlled by Switzerland-based Holcim. However, the merger would attract a substantial capital gains tax, besides stamp duty on plant and machinery that varies between 1 to 8%from state to state. (Business Standard)
SKNL to Raise Rs 1,000 Crore – Textile major S Kumars Nationwide Ltd (SKNL) plans to raise Rs 1,000 crore through issue of shares on qualified institutional placement (QIP) basis to fund its expansion plans. (Business Standard)
LG Balakrishnan to Acquire MM Gears – Coimbatore-based LG Balakrishnan & Bros (LGB) Ltd, a motorcycle chains manufacturer, has entered into an agreement with the promoters and directors of Coimbatore-based M M Gears Pvt Ltd for acquisition of 100 per cent shares of the latter, subject to satisfactory due diligence, the company informed the BSE. MM Gears is engaged in the manufacture of gears and gear boxes. (Business Standard)
Sonata Eyes Firms in $50 Million Revenue Range – Even as it is strategically expanding into new geographies, Sonata Software Ltd is considering the inorganic expansion mode to further fuel growth. The company is looking at cash flow positive companies with revenues in the range of $50 million and a mature business model which can afford scope for cross-selling of services. Companies specialising in niche markets and areas like infrastructure management and managed desk services would make good strategic fits for Sonata. (Business Standard)
HDIL Raises Rs 1,688 cr from Fidelity, Others – Housing Development & Infrastructure Ltd (HDIL), a Mumbai-based property developer, has raised Rs 1,688.40 crore from global investors, such as Blackstone and Fidelity, in a qualified institutional placement (QIP) of its shares. In the last three months, Unitech (which raised funds through QIP twice), Indiabulls Real Estate and Sobha Developers, among others, have raised Rs 7,600 crore. (Business Standard)
US Agency to Lend Chennai Finance Firm $80 Million – The Overseas Private Investment Corporation (Opic), a US agency that helps American companies invest abroad and promotes the development of emerging markets, will lend $80 million (Rs382.4 crore) to Repco Home Finance Ltd (RHFL). Opic will give the Chennai-based housing finance company a 23-year loan in two portions, $30 million and $50 million, subject to clearance from the Reserve Bank of India (RBI). (LiveMint.com)
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