CBI finds US-64, NCD connection
Mumbai—The Central Bureau of Investigation (CBI) is closely looking into the corporate connection between non-convertible debentures and investments in US-64.

CBI is looking at NCD placements in the recent past to unearth transaction patterns, specifically on whether there was any evidence of "undue influence" in the private placement process.

Sources said that a number of corporates have been making money—with implicit support of some UTI officials—by placing NCDs with UTI and using the proceeds to subscribe to US-64 units.
This means that they have been raising money from UTI at a cheaper cost (through placing bonds) and using the same money to invest in US-64, thereby making a neat profit.

Corporates not only earned hefty dividends at the end of the year, but also made money by selling the units at pre-determined repurchase prices.

UTI officials also to have actively connived in this operation as corporate purchases into US-64 were used by the Trust to show "active corporate support for US-64."
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FIs to take part in German Remedies open offer
Mumbai--Financial institutions holding about 15.73 per cent stake in German Remedies, are planning to participate in the open offer made by Zydus Cadila and Recon Healthcare to pick up an additional 20 per cent stake in the former at Rs 650 a share.

Institutional sources said that though a final decision on this had not been taken, preliminary talks held by the FIs are in favour of the new promoters.
FIs will take a final decision soon on the open offer," the official added.

The German Remedies scrip is currently hovering at Rs 455-465 on the Bombay Stock Exchange. After the open offer, Zydus Cadila’s stake in German Remedies is expected to go up to 47.72 per cent, from the present 27.72 per cent.
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Icra rates Escorts NCD issue 'LA+'
Kolkata--ICRA has assigned an LA+ rating to the Rs 150 crore long-term non-convertible debenture programme of Escorts. Icra has taken into account the company's established position in the tractor industry, presence in a diverse range of horse power and geographical segments and expected inflows from proposed divestments in group and associate companies.
The rating also factors in the negative growth in tractor demand resulting in lower capacity utilisation, increased pressures on margins and higher working capital intensity which has adversely affected profitability and average coverage indicators of the company.
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