Vedanta's open offer for stake in Sesa Goa postponed
Kolkata: Vedanta Group has postponed its open offer for a 20 per cent stake in Sesa Goa as the market regulator has not cleared the offer yet.

Vedanta Resources Plc, UK, had issued a public announcement dated on April 27, 2007, mentioning that the proposed open offer would open from June 21, 2007.

The offer was subject to clearance by the Securities Exchange Board of India under the SEBI Substantial Acquisition of Shares and Takeovers Regulations, 1997. The Vedanta Group has informed the shareholders of Sesa Goa that the proposed date of opening of the open offer, stated in the earlier public announcement, was "postponed till further notice".
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Compact Disc subsidiary to list on London SE
New Delhi: Compact Disc India (CDI), the animation film outsourcing company, plans to list its new subsidiary - MediaOne - at the Alternative Investment Market in London. The company hopes to raise $50 million (Rs613 crore) for MediaOne, its international film production division. MediaOne will produce or collaborate on international live action and animation films. Launched with an initial investment of £1 million (Rs8 crore), the Chandigarh-based company expects at least four international projects per year from its subsidiary. The new venture's access to the Intellectual Property Right of the animations should also help it tap possible revenues from merchandise business, said CDI.

The company feels that an overseas listing will facilitate joint ventures, acquisitions, alliances in major international markets with global film companies. With our close association with media majors such as Canyon Films, Pantheon Entertainment Corp, Hyde Park Films and Working Titles Films we will be uniquely positioned in the global film market.
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Ankit Metal plans Rs 34.5-cr public issue
Mumbai: Kolkata-based steel manufacturer, Ankit Metal & Power Ltd, is planning an initial public offering for 1.19 crore equity shares. The net offer to the public is 84 lakh equity shares to raise a maximum sum of Rs34.56 crore.

The price band for the offer is placed between Rs30 and Rs36 per share.

The company is raising capital from the public mainly to part finance an integrated steel plant in Bankura, West Bengal. The cost and capacity of the project as appraised by the Bank was estimated at Rs121.98 crore. The capacities include 350 tonnes per day sponge iron capacity, 65,140 tpa steel melting shop, 100,000 tpa re-rolling mill and two captive power plant of 8.5 mega watts and 4 mw.

The balance funds are financed by way of term-loan from State Bank of India (Rs65.15 crore) and promoters own contribution (Rs38.49 core).

ICRA, the rating agency has assigned the company's IPO `IPO Grade 1'.
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Suryachakra Power secures nod for IPO
Hyderabad: Suryachakra Power Corporation has obtained regulatory nod for its public issue of 3.4 crore equity shares of Rs10 each at a price band of Rs17 to Rs20 per share. In a statement, the company said it has registered the red herring prospectus with the Registrar of Companies, Andhra Pradesh. The public issue opens on June 25 and closes on June 29. SREI Capital markets Ltd is the book running lead manager for the issue.
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DLF collects Rs9,187.5 cr through IPO: issue price fixed at Rs525
New Delhi: Real estate major DLF today fixed the issue price for its initial public offering at Rs525 per share, mopping Rs9,187.5 crore from the recently-concluded mega issue. The 100-per cent book built IPO had been launched with a price band of Rs500 to Rs550 per share. The issue was subscribed about 3.47 times at the top end of the price band. At Rs550 per share, the qualified institutional buyers (QIB) portion was subscribed 5.12 times. The retail portion was, however, only 0.97 times subscribed while the non - institutional was subscribed 1.14 times.

At the issue price, the offering size is Rs9,187.5 crore (about $2.25 billion)," a company release said. The IPO comprised 175 million shares, of which 1 million shares were reserved for employees resulting in a net issue of 174 million shares. Sixty per cent of the net issue was offered to QIBs, 10 per cent was offered to Non Institutional investors (including High Networth Individuals) and 30 per cent to retail investors.

The DLF statement said that the offering received "overwhelming" participation from across the globe. Nearly 90 per cent of institutional demand came from global institutional investors, with almost equal contribution from US, Europe and Asia.
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Future Capital to launch logistics fund
Mumbai: The financial arm of the Future Group plans to launch a $500-million logistics fund in the next three-five months.

Future Group chief executive officer Kishore Biyani and ex-Goldman Sach managing director Sameer Sain, who is the CEO of Future Capital Holdings (FCH), are the major investors in the company.

The offshore fund will invest in large warehouses in major cities across the country and the centres will cater to dry and cold warehousing needs of retail and FMCG businesses.

Future Group is also in talks with a North American company to form a joint venture in setting up logistic centres.

Sain hopes to draw synergies from the company's expertise in real estate and the Group's retail business in launching the new fund.
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CBDT lays out norms for stock gains
New Delhi: The Central Board of Direct Taxes (CBDT) has directed tax assessing officials to calculate tax liability on those transacting in shares on the basis of principles laid down by the Authority of Advance Rulings (AAR).

These principles distinguish between shares held as stock-in-trade (trading assets) and those held as investments.

The clarification is important as income from trading assets is treated as business income, attracting a tax of slightly over 30 per cent. Income from investments attracts capital gains tax - 10 per cent for short-term (less than twelve months) and no tax on long-term gains.

The circular implies that tax assessing officers will henceforth have to look into the holding pattern of the securities bought and sold, the
sale-purchase ratio, the time involved, the funding sources and the overall trade volume when determining the tax liability involved among others.

The circular, which supplements an 18-year old one, provides clarity on a controversial issue that has seen massive litigation by many including FIIs.

The circular directs assessing officers to three principles culled out by AAR from Supreme Court decisions for determining tax liability. AAR has said ordinarily, the purchase and sale of shares with a motive of earning profits amounts to business income, while investments made for earning income through dividend may be treated as capital gains.

CBDT has also said taxpayers can have two portfolios - an investment one, comprising securities treated as capital assets, and a trading one, comprising stock-in-trade, treated as trading assets.
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