ICI India considering share buyback
New Delhi: Paints company ICI India's board will meet on July 25 to consider buying back the company's shares, using some of the spare cash. The company will spend Rs125 crore of the Rs200 crore cash it had as of March 2006 to increase the shareholding by five per cent to 56 per cent.

As much as 25 per cent of the company's capital and free reserves may be used to buy back the shares at a maximum price of Rs350, the company said.

M.R. Rajaram, executive director of the company said that the company ended 2005-06 with surplus cash of about Rs200 crore. The company has invested Rs55 crore in acquiring 49 per cent interest in Quest India from its joint venture partner, HLL, taking its shareholding in the company to 99 per cent. It would invest another Rs3-4 crore to convert Quest India into a 100 per cent subsidiary prior to its merger with ICI India.

The ICI scrip gained 2.35 per cent on Monday to close at Rs301.9 on the BSE. The necessary board and shareholder approvals are expected to be obtained by September-end.
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Radico Khaitan plans $20-m pref issue
New Delhi: Liquor maker Radico Khaitan plans to issue convertible preference shares to affiliates of US-based portfolio investor Ruane, Cunniff and Goldfarb Inc to raise $20 million (about Rs92 crore).

The cumulative preference shares would be compulsorily converted into equity after 18 months, if not converted by the investors earlier, at a price of Rs159.50 per share, the company said.

Radico Khaitan plans to use these funds for acquisitions/joint ventures in the domestic market, for repayment of high cost debts and general corporate expenses also.
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Zenotech offers 6.94 pc stake to Ranbaxy
Hyderabad: Zenotech Laboratories (ZLL) has offered an equity stake of up to 6.94 per cent to Ranbaxy Laboratories. The board of Zenotech Laboratories cleared preferential allotment of 20-lakh equity shares of Rs10 each at an offer price of Rs100 per share (including premium) to Ranbaxy to raise funds of Rs20 crore.
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Tata Mutual launches Capital Builder Fund
Mumbai: Tata Mutual Fund has launched the Tata Capital Builder Fund, a new three-year close-ended equity scheme to be converted into an open-ended scheme after three years. The scheme offers a weekly exit option during the close-ended period.

The scheme will focus on building capital through patient, disciplined medium term investing in quality businesses that could fall under large, mid and small cap categories. The new fund offer will be open from July 18 to August 18.
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Franklin Templeton launches fixed tenure fund
Mumbai: Franklin Templeton Investments India has launched a new fund, Franklin Templeton Fixed Tenure Fund - Series VI - 60 Months Plan (FTFTF- Series VI).

A closed-ended fund, it seeks to provide investors steady returns along with capital appreciation through equity exposure, an official statement said. The new fund offer opened on July 10, and closes on July 31. Units will be available at Rs10 (per unit) for cash during the NFO period.

The fund would invest at least 70 per cent in debt instruments that would mature in line with the duration of the fund, which will help in reducing interest rate risk. The balance up to 30 per cent will be invested in equities.

Given the strong fundamentals on the economic and corporate fronts, this marginal exposure to equities should help the portfolio in achieving higher risk-adjusted returns over the tenure of the fund. The fund would be available in two options - growth and annual dividend.
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UTI Equity Fund announces 20 pc dividend
Mangalore: UTI Equity Fund (formerly known as UTI-Mastergain Unit scheme) has declared tax-free dividend of 20 per cent.

A press release by UTI Mutual Fund said here on Monday that July 19 is the record date for the dividend.
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UTI Ventures to invest Rs27-cr in Koutons Retail
Mumbai: UTI Ventures, a leading private equity firm, has invested Rs27 crore in Koutons Retail India, a menswear brand in India. Koutons is fast emerging as a major player in the men's wear market in India and has grown from 74 stores in March 2005 to 206 stores in March 2006 and is currently 284 stores strong. The company has had tremendous growth in the last three years with a CAGR of 130 per cent during this period.
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SAAG RR files for rights/public offer
Mumbai: SAAG RR Infra Ltd has filed its offer document with SEBI for rights/public offering of Rs40 crore. The company proposes to use the proceeds of the issue to meet the working capital requirements for expansion of infrastructure business in its area of focus and to acquire capital assets for carrying on the business of infrastructure projects.

Other objectives of this issue are to meet the expenses arising out of foray into the oil & gas sector, retiring of high cost debts and also to meet the expenses of the issue.
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