Dr Reddy's ADR float likely to be postponed
Mumbai: Unfavourable market conditions may force Dr Reddy's Laboratories to postpone its $200-million American depositary receipts to the first-quarter of next year.

The company, which had scheduled the issue for end-September, plans to use the funds to part-finance its on-going research and development activities and acquisitions in emerging areas.

Dr Reddy's has roped in DSP Merrill Lynch, which is the lead manage, and ABN Amro Asia Corporate Finance and Credit Lyonnaise as co-managers for the ADR.
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Finance minister scraps exit clause for venture funds
New Delhi: The controversial compulsory exit clause for venture funds, which made it mandatory for venture funds to exit from a company in which it had invested within a year of its going public, has been scrapped by the finance minister.

Since venture funds often bring in technological and managerial inputs for the company, apart from bringing in the funds, a forced exit would have adversely affected the company concerned. Venture funds could now exit from a company only with the consent of the promoter.
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Investment banking firm predicts Indian market to be worth $1 trillion in 5 years
Mumbai: Leading investment banking firm, Morgan Stanley Dean Witter, has stated that that the Indian capital market is poised to explode to $1 trillion from $150 billion in the next five years.

According to the firm with privatisation taking place rapidly the Indian market, which is drastically undervalued, has the potential to be worth $1 trillion by 2005.The core sector will make a major contribution to the valuation of the capital market, with new economy companies supplementing at regular intervals.

However, all this will be contingent on how fast the Indian government is able to drive the privatisation effort. According to the report, the government holds the key to unlocking the potential of the capital market in the country.
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Sebi directs Gesco to make counter offer by Nov 10
Mumbai: In the ongoing tussle for control at Gesco Corporation, the Securities and Exchanges Board of India has directed the promoters of Gesco Corporation to make their counter-offer within November 10. If they fail to do so, the promoters will not be able to take their stake past 15 per cent till the offer by Renaissance Estates, the Dalmia-group company that has made a hostile bid for the company, does not culminate.

The promoters of Gesco are believed not to be ready with their counter offer at this stage and have approached Sebi to seek a clarification on whether they can make an open offer after 21 days from the date of announcement of Dalmias’ bid.

It is understood that Gesco chairman, Mr. Sudhir Mulji, had an hour long meeting with Sebit chairman, Mr. D.R. Mehta in this regard. However, the regulator told Gesco officials that the promoters of Gesco Corporation must make their counter offer within the 21 day deadline (November 10) or else wait till after the open offer by the Dalmias closes. The offer itself opens on November 24.

Sources said Gesco’s promoters want more time to be able to make their counter offer, and are therefore looking at various options to know whether they can do so after November 10.
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