Dalmias not to raise their open offer
New Delhi: Renaissance Estates, the Dalmia group company, which launched a hostile takeover attack on the Sheth-family controlled, Gesco Corporation, has stated that it has no plans to increase its open offer for Gesco.

In a statement released by the company, the company has stated that the open offer at Rs. 27 per share for 45 per cent of outstanding shares will stand.

In response to the attack, the Sheth family had roped in the Mahindras as a white knight and made a counter offer, which now stands at Rs. 44 per share. Industry sources were of the opinion that the Dalmias’ were planning to rope in a strategic partner like the Sheths’.
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Sebi issues guidelines for online public issues
Mumbai: India’s capital market regulator, Securities and Exchange Board of India (Sebi), issued guidelines for companies going for public issues through the online system of stock exchanges.

The guidelines, which will be applicable to fixed price issues as well as fixed price portion of book build issues, outlines modalities for the public issue and also lays down responsibilities for various intermediaries like merchant bankers, brokers, exchanges and registrars.

Under the new guidelines, companies will have to enter into an agreement with the stock exchange for online offer of securities. In turn, the stock exchange in turn will appoint Sebi-registered brokers for the purpose of accepting applications and placing orders with the company. The broker will also collect the money from clients for every order placed by them and in case the client fails to pay for shares allocated, the broker shall pay such amount. The broker shall open a separate bank account (escrow account) with the clearing house bank for primary market issues and the amount collected by the broker from his clients as margin money shall be deposited in this account.

Companies will be required to appoint a registrar to the issue having electronic connectivity with the stock exchange, through which the securities are offered under the system.

In case of issue of capital of Rs 10 crore or above, the registrar to the issue shall open centres for collection of direct applications at the four metropolitan centres situated at Delhi, Chennai, Calcutta and Mumbai.
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