Companies raised Rs3,865 crore in Aug via IPOs, rights issues

“During August 2011, Rs3,865.7 crore was mobilised in the primary market through 11 issues as compared to Rs1,446.9 crore mobilised through five issues in July 2011, showing an increase of 167.2% over the month,” according to the issue of ‘Capital Market Review’ by SEBI

Mumbai: The quantum of funds raised by India Inc through initial public offers (IPOs) and rights issues was up over two-fold at Rs3,865.7 crore in August, over that in July this year, reports PTI quoting a Securities and Exchange Board of India (SEBI) report.

“During August 2011, Rs3,865.7 crore was mobilised in the primary market through 11 issues as compared to Rs1,446.9 crore mobilised through five issues in July 2011, showing an increase of 167.2% over the month,” said the issue of ‘Capital Market Review’ by SEBI.

Of the 11 issues in August, four were debt public issues, while there were IPOs and three rights issues.

Corporates had raised a total of Rs1,446.9 crore through three IPOs and two rights issues in July.

SEBI also said that one listed firm raised capital worth Rs8 crore through Qualified Institutional Placement (QIP) in August.

In the previous month, there were two QIPs which together had raised Rs356 crore.

The number of preferential allotments also witnessed a decline in August 2011, with 29 such allotments raising a total of Rs688 crore.

In contrast, in July, a total of 38 preferential allotments were executed in the primary market, raising a total of Rs2,287 crore.

In August, the stock market had seen a bit of downslide with the benchmark Sensex losing over 10% during the month.

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Govt clears 11 FDI proposals worth Rs183 crore

The Foreign Investment Promotion Board, however, deferred decisions on nine proposals, including those of Vodafone Essar and Mauritius-based Ventureast Life Fund III LLC, and rejected six applications

New Delhi: The government on Monday cleared 11 proposals, entailing total foreign direct investment of Rs182.78 crore, including that from 9X Media to increase foreign equity participation to up to 100%, reports PTI.

The Foreign Investment Promotion Board (FIPB), however, deferred decisions on nine proposals, including those of Vodafone Essar and Mauritius-based Ventureast Life Fund III LLC, and rejected six applications, an official statement said.

Media firm 9X Media Pvt Ltd had sought FIPB nod to increase foreign equity participation from 80% to up to 100% and to make downstream investments up to 100%. The proposal, if implemented, would attract Rs26.20 crore worth FDI.

The board, headed by economic affairs secretary R Gopalan, gave its nod to Kolkata-based Pran Beverages’ proposal for FDI worth Rs16.45 crore, by way of induction of foreign equity by a company from Bangladesh.

DMV-Fonterra Excipients’ proposal which entails induction of foreign investment of up to 100% in the capital of a newly incorporated LLP engaged in the business of manufacturing and sale of pharmaceutical excipients, was also approved. This would bring in FDI worth Rs39.36 crore.

Further, the proposal of Mumbai-based Ace Derivatives and Commodity Exchange to transfer equity shares of the company to foreign institutional investors (FIIs), such that the holding of each FII will not exceed 5% of the equity of the company, was cleared. The proposal is worth Rs10.53 crore.
On the other hand, the board deferred a decision on Vodafone Essar’s request to transfer shares from a resident to a non-resident to carry out activities relating to its telecommunications business.

A decision on induction of foreign equity in a trust by Mauritius-based Ventureast Life Fund III LLC and Singapore- based InterCall Asia Pacific Holdings Pvt Ltd to set up a WOS to undertake the business of providing audio, video and web conferencing services for business, commercial, banking and other establishments was also deferred.

The proposals that were rejected include those of Chennai-based GV Films and Hughes Communications India.

Further, the board also recommended proposal worth Rs1,200 crore for consideration of the Cabinet Committee of Economic Affairs (CCEA). These include proposals of Walt Disney Company (Southeast) Asia Pte Ltd, Gurgaon-based Grid Equipments and Energy Grid Automation Transformers and Switchgears India.

The next meeting of the FIPB would be held on 11th November.

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ED may register money laundering case against Marans

The CBI FIR is under review and the ED may register its Enforcement Case Information Report (ECIR) equivalent to a police complaint under Prevention of Money Laundering Act (PMLA) provisions

New Delhi: India’s premier investigation agency, Enforcement Directorate (ED), may register a money laundering case against the Maran brothers and others in connection with the controversial Aircel-Maxis deal case in which the Central Bureau of Investigation (CBI) has alleged former telecom minister Dayanidhi Maran had received Rs547 crore as bribe.

The CBI Monday carried out searches at the residences of Dayanidhi and nine other locations after registering a case against him, his brother Kalanithi Maran, SUN Direct TV director, chairman of Maxis Communication T Ananda Krishnan, senior executive of Astro All Asia Network and Maxis Ralph Marshall and three companies Astro All Asia Networks, Sun Direct TV and Maxis Communications.

ED sources privy to the development said the CBI FIR is under review and the agency may register its Enforcement Case Information Report (ECIR) equivalent to a police complaint under Prevention of Money Laundering Act (PMLA) provisions.

The ED had earlier issued notices to telecom firm Aircel for alleged contraventions of foreign exchange rules in connection with 2G spectrum allocation case.

“CBI has registered case against the Maran brothers, Ralph Marshall and T Ananda Krishnan and three companies under section 120b of IPC (criminal conspiracy) read with 13(2) with 13 (1)(d) and also section 7 and 12 of the Prevention of Corruption Act. A case was registered on 9th October. Searches were conducted at Delhi and Chennai,” CBI spokesperson Dharini Mishra said here.

It has been alleged by former Aircel chief C Sivasankaran that Mr Maran, as the then telecom minister, had favoured Maxis group in the takeover of his company and in return investments were made by the company through Astro network in Sun TV owned by the Maran family.

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