Companies issuing partially convertible shares get ECB cap reprieve
New Delhi: The government has exempted companies who are issuing partially convertible or non-convertible shares prior to April 30, from the purview of meeting overall external commercial borrowing (ECB) cap and guidelines.
This has come as a big relief to companies, whose capital raising plans were adversely affected.

However, the companies claiming benefit under the above exemption would have to complete the process of issuing the shares and mobilising resources by the end of next month.

The government received representations that the revision of the guidelines has adversely affected business plans of corporations, which were at an advanced stage of issuing preference shares.

"The government has examined the representations, and has decided that in respect of such companies, which have taken verifiable and effective steps prior to April 30, exemption could be granted from the purview of the revised guidelines announced in the press note of April 30, 2007," an official release said.

To be eligible for the exemption, a company must have shown clear intention of raising funds through such instruments by conducting general body meetings or by passing special resolutions under Section (81)1A of the Companies Act or the application for permission from the government should have been received before the notified date.
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Angel, Motilal Oswal and Indiabulls top broking outfits: Survey
Mumbai: Angel Broking (5,081 trading terminals), Motilal Oswal Securities (4,179 terminals), SMC Global Securities (3,231 terminals), Indiabulls Securities (2,700) and Geojit Portfolio Management Services (2,410) have topped the list of broking outfits in India, in terms of number of terminals according to a survey undertaken by Dun & Bradstreet Information Services India.

The survey found that 52 per cent of the 200 brokerages that participated in the survey constituted more than 90 per cent of the total broking outfits in India and were based in Western India, followed by North (25 per cent) South (13 per cent) and East (10 per cent).

Mumbai had 40 percent of trading terminals, followed by Delhi (12 per cent), Ahmedabad (8 per cent), Kolkota (7 per cent) , Chennai (4 per cent) and remaining cities (29 per cent).

It was also fond that 25 per cent of the brokerages wanted to go public by coming out with an initial public offering (IPO) while another 40 per cent were looking for a tie-up or a joint venture with overseas brokerages.
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PAN deadline extended to December for MF buys
Mumbai: The Securities and Exchange Board of India (Sebi) has extended the deadline to file PAN numbers for mutual fund investments by six months to December 31, 2007.
The regulator has insisted that investors making new investments in mutual funds should produce proof that they have applied for PANs.

The mandatory requirement for PAN, the alpha-numerical tax assessment number, for mutual fund investments was to have come into effect from next Monday (July 2).

Sebi has, however, exempted investors participating in micro-pension schemes from the PAN requirement.

Under the know-your-client norms, PAN is currently mandatory for mutual fund investments of Rs50,000 or above.
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IDFC to raise $500 mn through issuing QIPs
Mumbai: The Infrastructure Development Finance Company (IDFC), has roped in Citigroup, UBS, Kotak Mahindra and JM Financial, to raise $500 million through issue of shares to foreign and domestic institutions early next month.

IDFC's roadshows for the QIP issue will start in the first week of July, said sources close to the development. The funds will be used to meet the growing demand from companies and the government to build ports, roads, power projects and other utilities.

In 2005-06, IDFC accounted for a quarter of all private sector-focused infrastructure project financing in the country. As on December 31, 2006, IDFC's balance sheet size was Rs16,377 crore and as on March 31, 2006 on a cumulative basis, IDFC has approved financial assistance to 162 projects aggregating over Rs17,530 crore.
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IDFC hike stake in SSKI Securities
IDFC has decided to increase its equity stake in SSKI Securities to 66.67 per cent from 33.33 per cent earlier, the company informed the BSE. SSKI is a privately held domestic corporate finance and institutional securities company based in Mumbai. This is the first investment in any broking house by IDFC. Through this investment, IDFC and SSKI propose to work together by pooling their relationships and expertise to provide investment banking and capital markets solutions especially to infrastructure clients.
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Orient Global acquires 9 per cent stake in NIIT
New Delhi: Singapore-based investment group Orient Global, founded by Richard Chandler, has acquired over 9 per cent stake in IT training major NIIT. Orient Global's Education Fund bought 2.06 million shares of NIIT Ltd from Intel Capital.

Sources said NIIT had issued Foreign Currency Convertible Bond (FCCBs) worth $10 million to Intel Capital in April 2005. These bonds have been converted to equity shares of NIIT recently at Rs 200 per share. Intel Capital on Monday sold 2.06 million shares to Orient Global at approximately Rs 950 a share.

Following the transaction, there has been no change in the promoters' holding in NIIT at about 31 per cent.
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Allied Digital IPO price band set at Rs170-190
Mumbai: IT Infrastructure management services provider, Allied Digital Services, plans to tap the capital market through an IPO of 45.22 lakh equity shares of Rs 10 each. The company intends to raise around Rs 85.9 crore on the upper end of the price band of Rs 170-190 per share.

At least 50 per cent of the net issue to the public shall be allotted on a proportionate basis to Qualified Institutional Buyers. Further, 15 per cent of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders, while 35 per cent to the public shall be available for allocation on a proportionate basis to retail bidders. The company plans to deploy a major portion of the issue proceeds to set up a global services delivery centre in Mumbai and finance its future inorganic growth aspirations.

The equity shares are proposed to be listed on the BSE and NSE.
The issue will constitute 25 per cent of the fully diluted post-issue equity share capital of the company.

The IPO opens on July 2 and closes on July 5. Anand Rathi Securities is the sole book running lead manager to the issue.
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Wealth management sector to see unprecedented growth: PwC
Chennai: Wealth managers and private banks are anticipating unprecedented growth over the next three years, according to the latest findings from the PricewaterhouseCoopers 2007 Global Private Banking/Wealth Management Survey. CEOs of different companies are predicting that on an average, their assets under management will grow 30 per cent annually.

The survey, which ascertained the views of senior executives of 265 organisations within the global private banking and wealth management industry, found that markets in the Asia-Pacific region and Eastern Europe are expanding the fastest, as organisations rush to service the new wealth creators in these regions.

The study also revealed the commitment among wealth managers to increase `share of wallet,' compared to previous surveys. Share of wallet has emerged as the new key performance indicator, globally as well as in emerging economies like India, as wealth managers seek to become trusted advisers and gain new clients.

According to the survey, almost 90 per cent of CEOs are of the view that there will be at least some, if not significant, consolidation in the industry; and more than 50 per cent of them plan to open operations in new countries over the next two years.

The survey is split into seven sections: CEOs' views, markets and clients, systems and processes, profitability and performance metrics, human resources, client relationship managers and risk management and compliance.
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