New public offerings can absorb 'huge' FII inflows: SEBI

New Delhi: Amid diverse views over the huge capital inflows into equity markets from FIIs, Securities and Exchange Board of India (SEBI) today said that numerous public offers coming to the market could absorb that money and act as a balancing factor, reports PTI.

If the inflows from foreign institutional investors (FIIs) chase same numbers of papers then obviously prices will rise, but issuance of new papers could absorb that, SEBI chairman CB Bhave told reporters here.

"I am not saying whether FII inflows are a concern or not ...I am saying balancing factor is issuance of papers," Mr Bhave said.

Fund flow from overseas investors has crossed the record Rs99,700 crore ($21.6 billion) mark this year and is all set to breach the magical Rs1,00,000 crore mark - for the first time since they were allowed invest here.

State-run Coal India Ltd's (CIL) mega initial public offering, through which the government aims to garner up to Rs15,000 crore, opens next week. Some other big private as well as PSU public offerings are also in the pipeline.

On the issue of any need to curb the whopping capital inflows, Mr Bhave said that it was for the government and Reserve Bank of India (RBI) to monitor the situation.

"Capital inflows is something which government and RBI look at," he added.

The whopping capital inflows have raised an alarm among regulators.

The sharp rise in FII flows into Indian stocks has pushed up the market. The BSE benchmark Sensex climbed over 10% in September, a month when the index re-gained the magical 20,000 level after a gap of 32 months.
 

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Maran acquires another 7.42% stake in SpiceJet

New Delhi: Sun TV Chief Kalanithi Maran and his firm KAL Airways have bought 7.42% equity for Rs135.10 crore, as part of the June deal to acquire 37.7% stake in low-cost carrier SpiceJet, reports PTI.

This was an off-market transaction, following which Mr Maran's direct stake in the airline now has increased to 25.12%, SpiceJet said in a filing to the Bombay Stock Exchange (BSE).

Last week, Mr Maran had increased his direct stake in the company to 17.71% through similar transactions.

In June, the Chennai-based industrialist had clinched a deal to acquire 37.7% stake in the low-cost carrier for about Rs750 crore from American investor Wilbur Ross, his investment companies and the Kansagara family-promoted Royal Holding Services Ltd.

The latest transaction, through which Mr Maran has bought about 2.86 crore shares (7.42% stake), at a price of Rs47.25 per piece, is pursuant to the share purchase agreement signed at the time of the deal, the filing said.

Mr Maran also has an option to acquire another 20% stake through open offer. Earlier, the open offer was to be launched in August. However, the new dates are yet to be announced.

The airline, first domestic low-cost carrier to have launched international operations from last week, plans to fly to Dhaka and Male within a year. It is also aiming to have up to seven daily flights each to Colombo and Kathmandu in next six months.

The airline, India's second largest low-cost carrier after IndiGo, has a market share of about 13% and a fleet size of 22 aircraft serving 20 destinations across the country

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The greenback in the green

The dollar will bounce back, says this investor.

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