Sebi Rejects Plea to Ease QIP Pricing Norms – After the initial wave, Qualified Institutional Placements (QIP) are expected to pause as the capital market regulator has rejected proposals made by investment bankers to relax the pricing formula for such issues. In August last year, the Securities and Exchange Board of India (Sebi) had changed the pricing formula, allowing it to be based on the two-week average share price, so that companies could price the issue closer to the market value of the shares. But investment bankers last week requested Sebi to alter the formula and take the current market price as the base, as the two-week average price worked out to be higher than the current market price in case of most companies. (Business Standard)
Siva Eyes Seychelles Island – Non-resident Indian businessman C Sivasankaran’s Sterling Infotech group is in talks with the Seychelles government to lease an island for 99 years, on which it plans to build an integrated mega township and tourism project.
This will make Sterling Infotech the second Indian corporate group to enter Seychelles.(Business Standard)
Sterlite Energy Mulls IPO to Raise Rs 3,000 Crore – Sterlite Energy, a wholly-owned subsidiary of Vedanta Group firm Sterlite Industries, may hit the capital market soon with a public offering to raise up to Rs 3,000 crore to part finance its expansion plans. The company may dilute up to 10 per cent of its stake to raise about Rs 3,000 crore to fund its expansion programme. (Business Standard)
Century Mulling Acquisition in Thailand – Plywood maker Century Plyboards plans to acquire a Thailand-based medium-density fiberboard (MDF) making company at Rs 350-400 crore. MDF is an engineered wood product formed by breaking down softwood into wood fibres, combining it with wax and a resin binder and forming panels by applying high temperature and pressure. (Business Standard)
Anil Ambani Group to Raise RS 2,000 Crore via PE Fund – The Anil Ambani Group plans to raise Rs 2,000 crore through a private equity fund nearly a year after it announced its plans to enter this space. The fund has a greenshoe option for an additional Rs 1,000 crore. Relinace Equity Advisors Ltd. (REAL), a wholly owned subsidiary of the groups financial services arm Reliance Capital, has begun selling the fund [privately to high net worth individuals and financial institutions. (The Economic Times)
Dhanalakshmi to Raise Rs 100 Crore in 1 Month – Dhanalakshmi Bank today said that it will raise Rs 100 crore in a month. The lender plans to raise Rs 400 crore this year. Rs 100 crore will bw raised through a sale of bonds within the next three to four weeks. The balance Rs 300 crore will also be raised through a bond sale by December-end. Next fiscal, the bank plans to raise money in its Tier I structure. (The Hindu)
Govt. Set to Exit Bharti Arm as Ministries Clear 30% Stake Sale – The decks have been cleared for the sale of the government’s 30% holdings in Bharti Hexacom, a subsidiary of the Bharti Airtel, the country’s largest mobile firm. All key ministries have given their approval to a Cabinet note moved by the department of telecom (DoT) on exiting Bharti Hexacom. The government’s stake in Hexacom is held through Telecom Consultants of India (TCIL). Bharti Airtel holds the remaining 70% in Hexacom. (The Economic Times)