SEL Manufacturing receives contract from Russia

Sel Manufacturing Company Ltd., an integrated multi product textile company, has chalked out a mega expansion plan through inorganic route at an investment of Rs 1500 crore.

Under the proposed plan, the company is setting up a technical textile manufacturing facility with a capacity of 90 tonnes per day (TPD) envisaging Rs 611.67 crore. It is also expanding its terry towel project by 25 TPD, taking the terry towel capacity to 35 TPD after implementation. Sel is a 100 per cent export oriented garment producer.

It has appointed IL&FS, Kotak Mahindra Capital and SBI Caps to arrange targets from the domestic market. It is in talks with Citibank, Credit Suisse and Barclays to rope in an adviser for its overseas acquisition.

For the financial year 2007-08, the standalone net sales of the company was recorded at Rs 357.31 crore while the net profit stood at Rs 44.85 crore. Consolidated net sales was Rs 400.07 crore.

Courtesy: business-standard.com

Tesco enters Indian retail with Tata Trent

After wooing many Indian realty majors and retailers, including Bharti, the Wadias, DLF and Parsvnath, UK's largest retailer Tesco has decided to go solo by developing a cash-and-carry business with an investment of £ 60 million in the first two years.

It has simultaneously zeroed in on a tie-up with Trent, the Tata group retail arm, to develop the latter's discount hypermarket format.

The cash-and-carry business, also known as wholesale outlets, is the only retail format where 100% FDI is allowed. Tesco international & IT director Philip Clarke said, "We have made no secret of our wish to enter India and have had a team here for almost three years studying the market, talking to businesses and consumers and looking for the right way forward.''

While Tesco joins German rival Metro--the first to enter India in 2003--in opting for the wholly-owned cash-and-carry operations, Wal-Mart has a 50:50 JV with Bharti group and Carrefour is still exploring India.

The exclusive arrangement with Trent, for which Tesco will receive a fee, is one where the former can draw from the British chain's vast retail expertise and technical capability to support its own big box format Star Bazaar, which has been on a slow track, according to retail analysts. Launched in 2004, there are four Star Bazaar stores in the country.

Looking for sharper management focus and improvement in operations, Star Bazaar was recently transferred to a 100% Trent subsidiary, Trent Retail. "In large format retailing in India, hypermarket is the most challenging and eventually rewarding, as it has been abroad,'' said Trent MD Noel N Tata.

This (Star Bazaar transfer to Trent Retail) was done to beef up its large box format through local sourcing arrangements as against national sourcing.

This was done because as the latter was unviable, especially in food and groceries, due to infrastructure bottlenecks, tax inefficiencies and high freight costs. Another reason for hiving off Star Bazaar was that it could have tie-ups with international retailers to enhance its know-how.

Both these requirements will be fulfilled through Tesco association. Apart from accessing the $99.5-billion Tesco's marketing, stock management, retail information systems, cold-chain infrastructure and front-end services expertise, Trent will source merchandise for Star Bazaar from Tesco's wholesale outlets in India.

Tesco has 3,729 stores in 13 countries. Its first wholesale outlet will be set up in Mumbai shortly. However, unlike South African chain Shoprite, which has a brand franchise alliance with city-based realty firm Nirmal Lifestyle, the Tesco-Trent deal wouldn't see any Tesco branding at Star Bazaar outlets.

Trent's other retail formats are Westside (apparel and lifestyle), Landmark (books and music) and Sisley (manages the Italian apparel brand).

"From one store in 2004, we at present have four stores, which will be expanded further," Tata added.

Courtesy: timesofindia.indiatimes.com

Market will be volatile untill Aug 22

Market will be volatile untill Aug 22

``With BSE, below the 15,150 level markets look weak upto 14,786 level, the latter being an important level for a bullish market. Also 39 new stocks having been introduced in the F&O is a healthy sign for the midcap stocks,`` said technical analyst, Vishwas Agarwal.

Agarwal further added, ``Coming holidays are also the reason for some profit booking. Overall view is still strong; market will be volatile until August 22 and will not give easy money.``

Courtesy: myiris.com

Latest IPO Grey Market Premium Rates as on 09-August-08

Latest IPO Grey Market Premium Rates as on 09-August-08

Grey Market Premium Rates as on 09-August-08

Company -> Open/Close -> Offer Price -> Premium

Resurgere Mines & Minerals Limited -> 11 August - 13 August -> 263 to 272 -> 17 to 18

Austral Coke And Projects Ltd -> 07 August - 13 August -> 164 to 196 -> 04 to 05

NuTek India Limited -> 29 July - 01 August -> 170 to 192 -> 06 to 07

Vishal Information Technologies Limited -> 21 July - 24 July -> 140 to 155 -> 03 to 04.50

Courtesy: greymarket.co.in

Resurgere Mines & Minerals India Ltd IPO Information

Resurgere Mines & Minerals India Ltd IPO Information

• Public Issue Open: Aug 11, 2008 to Aug 13, 2008
• Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
• Public Issue Size: 44,50,000 Equity Shares of Rs. 10/-
• Face Value: Rs. 10/-
• Public Issue Price: Rs 263/- to Rs 272/-
• Market Lot: 20 Shares
• Minimum Order Quantity: 20 Shares
• Maximum Subscription Amount for Retail Investor: Rs 100,000/-
• Listing: BSE, NSE
• Lead Manager: Motilal Oswal Investments Advisors Pvt Ltd
• Registrar: Intime Spectrum Registry Ltd (Ph: +91-22-25960320 Email: rmmil.ipo@intimespectrum.com)

Courtesy: chittorgarh.com

Vishal Information Technologies Ltd IPO Allotment Status - Click here

Vishal Information Technologies IPO Allotment Status



Vishal Information Tech Ltd IPO - Listing on Monday, August 11, 2008.
Bidding Status (IPO Subscription day by day)

No. of times issue is subscribed (BSE + NSE)
As on Date QIBs Non Institutional Retail (RIIs) Total
Day 1 - 21-Jul-2008 17:00:00 IST 0.0000 0.0000 0.0036 0.00
Day 2 - 22-Jul-2008 17:00:00 IST 0.0000 0.5795 0.0122 0.09
Day 3 - 23-Jul-2008 17:00:00 IST 0.0000 0.7340 0.2794 0.21
Day 4 - 24-Jul-2008 17:30:00 IST 0.4492 1.3584 2.1850 1.19


Courtesy: chittorgarh.com

'Rel Infra, Globalcom IPO only after markets stabilise' - Anil Ambani

Reliance ADAG Chairman Anil Ambani on Thursday said inital public offering of two group companies Rel Infra, Globalcom would commence only after the volatility in global and domestic market subsides.

“We have received the approvals on the Red Herring Prospectus… The volatility in global and Indian capital markets is what we are watching,” he said, adding that a decision would be taken at an appropriate time.

Replying to queries on the IPO of Reliance Infratel in India and listing of Globalcom in London, he told market analyst, “When we find an appropriate time, I am sure that we will proceed both with Globalcom and Reliance Infratel.
“We are using this time to complete the roll out on Infratel and also in our negotiations with our prospective customers for Globalcom”, he said in his post financial result conference.

Courtesy: greymarket.in

Mutual Fund industry down by 6% in July 2008

The mutual fund industry witnessed an over six per cent drop in its assets under management for the second consecutive month in July, led by country's top fund house Reliance MF, which lost over Rs 6,000 crore in the period.

The combined average assets under management (AUM) of the 34 fund houses in the country dropped to Rs 5,29,629.46 crore in July, as compared to 5,64,752.76 crore in June, according to the data released by the Association of Mutual Funds in India (AMFI).

Analysts believe the bearish sentiments in the market and hardening of interest rates led to heavy redemptions last month leading to the sharp drop in average assets under management.

"The sharp drop in AUMs has been entirely due to heavy redemptions from investors during the month amid the volatility in the stock market...this shows investors are beginning to get impatient," mutual fund tracking firm Value Research Online CEO Dhirendra Kumar said.

Reliance MF registered the biggest drop of over Rs 6,200 crore in its average Assets under Management (AUM) in July.

However, despite a 6.88 per cent fall in its average AUM, Reliance Mutual Fund continues to be the top fund house in the country with assets valued at Rs 84,563.91 crore last month, against Rs 90,813.45 crore in the previous month.

"The stock market have been suffering in the month as the market value of investment is on the decline and the hardening of interest rates has made its difficult for banks and corporates to keep their surplus cash in income schemes, which led to withdrawal of funds from them," Taurus Mutual Fund Managing Director R K Gupta said. MORE PTI

ICICI Prudential, the second largest mutual fund, witnessed a loss of Rs 4,313 crore in its assets at Rs 55,160.66 crore in July, from Rs 59,473.58 crore in June.

HDFC Mutual Fund, which beat state-run UTI MF to notch the third slot in June, reported an average AUM of Rs 50,752.03 crore in July, down from last month's Rs 52,710.80 crore.

UTI Mutual Fund continued its fall in the average AUM, which was Rs 46,119.91 crore at the end of July, down 9.16 per cent from June's figure of Rs 50,770.57 crore.

Besides, AUM of Franklin Templeton MF stood at Rs 24,440.94 crore in July, against Rs 24,742.06 crore in the previous month.

Meanwhile, about eight fund houses managed to increase their assets under management in July which include -- ABN Amro MF, Benchmark MF, JP Morgan, Lotus India and Mirae Assets.

Courtesy: economictimes.indiatimes.com

Allied Blenders and Distillers plans for IPO

Liquor baron Kishore Chhabria wants to take his Allied Blenders and Distillers (formerly BDA Ltd) public to raise up to Rs 400 crore. But before that he wants to clean up his balance sheet and even get some private equity funds to invest in his company.

Allied Blenders’ and Distillers (ABD) Executive Vice-Chairman and Chief Executive Officer, Deepak Roy, told Business Line that a road map leading up to the IPO has been put in place. Once the balance sheet is cleaned up which should happen sometime this year itself, the company will raise a debt of around Rs 100 crore to acquire some distilleries. The IPO plans will be tied to the market conditions but the company expects to raise up to Rs 400 crore to fund its various expansion plans.

Greenfield projects

Roy, who owns about five per cent in ABD, said initially, around Rs 100 crore will be invested in acquiring four greenfield bottling plants and some bottling plants in Andhra Pradesh, Punjab and West Bengal which should reduce dependence on outsourcing. It also plans to set up its own primary distillery unit which will provide between 20 per cent and 25 per cent of spirits for its own use. Currently, the company uses about 25 bottling units for outsourcing its needs.

Roy said the company’s balance sheet was very weak and not adequately funded and carried a lot of debts. “We are going to clean up (the balance sheet) all that which will allow us to raise capital,” he said. The turnover of all ABD’s products is about Rs 800 crore and recorded a growth of about 49 per cent during the first quarter of this financial year. During the last three years, the company grew at a compounded rate of about 19 per cent.

New Launches

ABD also wants to reduce its dependence on a single brand, ‘Officer’s Choice,’ whish is considered the second largest brand in the prestige whisky segment in India. It is in the process of launching Germany’s leading vodka brand,

Wodka Gorbatschow in most markets and a few other brands during the next few years.

During FY08, ABD reported a growth of 30 per cent in sales of the brand to 6.6 million cases and a total sales of 6.86 million cases which grew at 22 per cent.

The IMFL industry grew at about 22 per cent.

The company has projected sales of 8.5 million cases during this fiscal.

MCX postpone its IPO

Falling stock market and rising interest rates have promoted India’s largest commodity bourse, the Multi Commodity Exchange (MCX), postpone its initial public offering (IPO) for now.

MCX had filed the Draft Red Herring Prospectus (DRHP) for the IPO in February. This was for the first time that a commodity exchange filed application with the market regulator, Securities & Exchange Board of India (SEBI) for an IPO that planned to raise Rs 500 crore to Rs 600 crore.

But top MCX officials said on Sunday that the IPO plans have been shelved for the time being. MCX Managing Director and CEO Joseph Massey said that the exchange has decided to postpone the IPO “taking into consideration the market scenario and the advice of the merchant bankers to defer the issue.”

The main reasons that has compelled MCX defer the IPO are the falling stock market, rising interest rates and the possibility that the government may introduce the commodities turnover tax on commodity exchanges.

Finance Minister P Chidambaram has proposed in the Budget a tax of 0.017% on the seller of a commodity contract and 0.125% on the buyer. Besides, a service tax of 12% on the exchange levy and an education cess on the tax are also planned.

Commodity exchanges, brokers and the apex Forward Markets Commission have opposed the commodities transaction tax (CTT) saying it would adversely affect futures trading in commodities.

MCX, promoted by Financial Technologies India Limited, is India’s biggest commodity exchange for the trading of precious metals, ferrous and non-ferrous metals, energy agriculture and industrial commodities.

Founded in 2003, MCX has exhibited strong leadership in product innovation, trading and clearing functionality, self-regulation, transaction cost efficiency and customer focus, positioning MCX to compete on a global scale.

Courtesy: greymarket.in