ICICI, major shareholders seek Rs 1,865 crore for Firstsource stake

Economic Times reports the promoters and two major shareholders of Firstsource Solutions have put their combined 68% in the BPO co up for sale. The sellers — ICICI group, Aranda Investments and Metavante — are learnt to be asking for Rs 1,865 crore, or Rs 64 a share, for the transaction. This is based on the fact that Firstsource sold shares in the primary market at this rate last year. If the deal goes through, the successful bidder will have to come out with a mandatory 20% open offer. At the asking price, it will cost the buyer another Rs 550 crore, putting the value of the total transaction at Rs 2,365 crore. Confirming the development, a banker close to the development said the list of suitors includes the Warburg Pincus-controlled WNS Holdings and Genpact. However, no bidder has, so far, expressed willingness to offer more than Rs 57 a share, nearly 11% lower than the expectations of the sellers. He said the potential buyers have put in initial bids and it will take at least a month to close the transaction.

USA ECONOMIC DATA ON AUG26

New Home Sales (MoM) (Jul) Moderate volatility expected 2.4% VS -0.9%


ABC/Washington Post Consumer Confidence (Aug 24) Low volatility expected -50 VS -50

USA ECONOMIC DATA ON AUG27

Durable Goods Orders (Jul) 1.3% VS 0.1%

Durable Goods Orders ex Transportation (Jul) 0.7% VS -0.5%

Petronet LNG is planning to shut its 5 million-tons-a-year liquefied natural gas plant in western India for a week in October to link new units to double the capacity,

Bharat Heavy Electricals (BHEL) has bagged order worth Rs 2.4 billion for setting up two gas turbine generating units of 42 mw each in the United Arab Emirates (UAE).

The Tata Group spends Rs 8-10 billion a year on corporate social responsibility (CSR).

Lumax Industries expects three greenfield projects to come on stream by the next quarter and has recently bagged orders worth Rs 600 million from two customers


Sobha Developers to raise Rs 3.50 bn via rights issue

The investment arm of the Government of Singapore, GIC, may pick up slightly below 10% stake in Asset Reconstruction Company of India (Arcil), subject to approval from the Foreign Investment Promotion Board (FIPB),


GEI Industrial Systems has bagged order worth Rs 400 million for air cooled steam condensers for power plants, from KSK Group of Hyderabad, Dharani Sugars and Chemicals and Ontario Power Generation.

R Systems International, a provider of software product development and BPO services on Wednesday,


The promoter company of GE Capital, Transportation Financial Services, said it has accepted an exit price of Rs 110 a share for buying back 45,94,761 shares from the public,

Punjab National Bank (PNB) entered into an agreement with Mitcon Consultancy Services for co-operation in the area of carbon credit financing

Reliance Industries said on Tuesday, August 26, that it wanted to transfer an 80% stake in a gas-rich deepwater block to four fully-owned subsidiaries,

J Kumar Infraprojects has announced that the company secured Rs 620 million contract from Pune Municipal corporation, JNNURM Division No 2, Pune to construct brigde cum flyover at Holker bridge on Mula river in Pune city.

The US-based lubricant major Shell Lubricants topped the list of world`s leading lubricant suppliers,

Jyothy Laboratories at its meeting held on Aug. 27, 2008, approved sub-division of existing equity shares of Rs 5 each into 5 equity shares of Rs 1 each. Sub-division of equity shares is subject to approval of shareholders.

Monotona Securities gets open offer from Pan Infosystems

Stone India, a multi-product engineering company located in Kolkata announced on Wednesday, August 27, that the company executed a memorandum of understanding (MoU) with RailRunner Inc.,USA.

Videocon arm to acquire 10% in Anadarko

BT is considering the sale of its 31% stake in Tech Mahindra

FT reports BT is considering the sale of its 31% stake in Tech Mahindra, the India-listed software services co, having decided that the holding does not fit its long-term strategy. The UK telecoms company is keen to sell all or a large part of its stake in the joint venture, which has a market capitalization of about $2.2 bln, according to people with knowledge of the situation. Any sale is expected to be one of the biggest in the Indian outsourcing sector and will generate interest from domestic and overseas private equity firms, which are struggling to deploy funds in India. "Global private equity firms are itching to write a cheque in India for a few hundred million [dollars], and this would represent a major opportunity for them,"

Adhunik Metaliks to raise Rs250-300 crore through IPO

Adhunik Metaliks Ltd, the specialty steel maker will raise Rs 2.5-3 billion through an initial public offering of shares in its mining subsidiary- Orissa Manganese and Minerals Ltd. It will sell 15 per cent stake in Orissa Manganese and Minerals Ltd in the share sale, to part-finance its Rs 11 billion pellet and ferro alloy plants.

These plants, which will convert iron ore fines into pellets and process low grade manganese ore waste, will be operational in 24 months. The first phase of expansion, OMML expects to mine 0.3 million tones of manganese and 0.4 million tones iron ore, which will be raised to 1 million tonnes and 3 million tonnes respectively by 2011.

JM Financial and Edelweiss are the book running lead managers for the issue.

Oil India plans IPO in November

Oil India Ltd, state run explorer, plans an initial public offering of 2.64 crore shares shares in November and would file a revised DRHP next month after updating information up to June 30, 2008, according to company official on Tuesday. "We are in touch with our bankers for exact timing of the IPO. Hopefully market conditions will improve by November and the IPO is likely to open in the first half of November," company sources said.

Oil India plans IPO in November

Oil India Ltd, state run explorer, plans an initial public offering of 2.64 crore shares shares in November and would file a revised DRHP next month after updating information up to June 30, 2008, according to company official on Tuesday. "We are in touch with our bankers for exact timing of the IPO. Hopefully market conditions will improve by November and the IPO is likely to open in the first half of November," company sources said.

Case against Anagram relating to IPO scam, settled

The Securities and Exchange Board Of India (SEBI) on Monday settled a case against Anagram Securities relating to alleged financing of key operators in IPO scam. Charge against Anagram Securities was that it acted as a financier to the key operators for making applications for public offers in fictitious and benami names during 2003-05.

The case has been settled through a consent order passed by the SEBI, but it does not restrict the market regulator from taking enforcement action. SEBI can reopen the pending case, if it finds any representation made by the firm in the consent proceedings are to be untrue or it has breached any of the clauses of undertakings during the proceedings.

The market regulator passed the order on the recommendations of its High Powered Advisory Committee.

New IPO payment norms by SEBI

Sebi on Tuesday announced an alternate payment system for public issues to ensure the process works smoothly. In this the retail investors will not have to deposit money upfront while applying for shares. This will be launched by August-end as a pilot project. While both the current system of payment through cheques and alternate system would co-exist, as per the Sebi chairman. The new payment system called additional mode of payment through Applications Supported by Blocked Amount, will exempt retail investors from making full advance fees and the amount to be retained in bank accounts till the completion of allotment. The alternate payment system is dependent on 'Self-Certified Syndicate Banks', which would accept the application of retail investors. Under the scheme, the money an investor pays while applying for an IPO will remain in his bank and earns interest till the allotment is made. These banks will block the fund to the extent of bid amount, upload the details in the electronic bidding system of BASE or NSE and then unblock once the basis of allotment is finalized and transfer the amount for allotted shares to the issuer.

Supreme Court told SVPCL to refund IPO money

The Supreme Court has asked Hyderabad-based SVPCL to refund the application money along with interest to the investors who had applied for the company's initial public offer.

The IPO was floated in October last year. Though the issue was fully subscribed, BSE denied permission for the listing of the shares on the exchange as the company had inevidently mentioned on the cover page of its red hearing prospectus that at least 50% of the net issue to the public shall be allocated on proportionate basis to QIB, whereas legally it should be "up to" instead of "at least".

The company than approached SEBI as well as BSE but in the mean time an investor had filed a complaint with Sebi against the company for allegedly wrongdoing.

The company approached BSE to list the shares on January 7, but this was turned down by it as the 10-week period from the date of closing of the IPO has lapsed, which was required under Section 73.

Sebi on the other side told the company to let BSE to decide on the matter. The BSE asked UTI Securities to provide an undertaking, certifying that Section 73 has been complied with. But UTI Securities did not oblige as the 10-week period had lapsed. Consequently, BSE refused permission to the company to list. Against this the company challenged BSE in Andhra Pradesh High court by stating that the delay was on account of pending complaint with SEBI

However, the decision by Supreme court will provide relief to nearly 10,000 investors, who are expected to get a refund in eight days along with 15% interest once SVPCL receives the copy of the order.