M&M board meet on May 3 for pref issue

Mahindra & Mahindra (M&M) plans a private placement of equity shares by way of preferential issue.According to a release issued by M&M to the BSE today, the company's board is scheduled to meet on May 03 to consider a proposal from prospective investor(s) for private placement of securities by way of preferential issue at a price of to be determined in conformity with the terms of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000.

RBI rejects allotment of shares to IFC

RBI (Reserve bank of India) has rejected the proposed preferential allotment of shares to IFC by Karnataka Bank. In a communique to the BSE, the bank said that Reserve Bank of India (RBI) vide its letter dated April 16, 2008 has communicated to the Bank, its inability to accede to the Bank's proposal for allotment of 63,73,000 equity shares of Rs 10 each at a price of Rs 225 per share including the premium of Rs 215 per share on preferential basis to International Finance Corporation (IFC), Washington.

Provogue India plans to raise Rs 477 crore

Fashion garments maker Provogue India on Friday said it will raise about Rs 477 crore through issue of shares and convertible warrants for its future activities including expansion plans.The firm would be raising these funds for expansion in its retail infrastructure subsidiary, expansion of current retail network, setting up of new retail formats, bringing international brands into India, and for general corporate purposes including acquisitions.

Provogue would issue 28.5 lakh equity shares worth about Rs 314 crore on preferential basis, it said in a filing to the Bombay Stock Exchange.Altima Partners, T Rowe Price, Genesis, New Vernon, Liberty International, Acacia Partners, Dharmayug Investment and CNBC have participated in the preferential offer, which would be locked in for one year from the date of allotment, the filing added.

Further, Provogue would issue 14.84 lakh convertible warrants worth Rs 163.24 crore to Everest Plaza Pvt Ltd, and Fairprice Traders (India) Pvt Ltd.Both shares and convertible warrants would be allotted at a price of Rs 1,100 each.

ING Vysya Bank to raise Rs 350 cr capital

ING Vysya Bank is planning to raise Rs 350 crore as fresh capital through a qualified institutional placement to fund its growth and augment the capital adequacy ratio (CAR).

The Bangalore-based private sector bank, which is issuing 7.47 million equity shares, will seek shareholders’ approval at an extraordinary general body meeting on November 6.

The board, which met on Saturday, has also approved a preferential allotment of 6.07 million shares to ING Mauritius Holdings and ING Mauritius Investment. ING holds 43.86 per cent stake in ING Vysya Bank.

Read more in The Business standard article.

Baring to acquire 45 pc stake in JRG Securities

Baring India will acquire 44.8 per cent stake in brokerage house JRG Securities for 35 million dollar through a preferential issue.The deal is subject to approvals from the Securities and Exchange Board of India (SEBI), shareholders and other regulatory authorities.

The Board of Directors on Friday approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). The paid-up share capital of the company would increase to Rs 23.17 crore after the proposed preferential allotment from the existing Rs 12.79 crore.Shares of JRG Securities today closed at Rs 58.70, down 9.97 per cent, on the BSE.

Lyka Labs to raise Rs 6 cr from domestic mkt

Healthcare company Lyka Labs on Thursday said it will raise Rs 5.59 crore through issue of 13 lakh securities in the domestic market.

The shareholders at a meeting on July 20 authorised the board to raise Rs 4.3 crore through issue of 10 lakh equity shares on preferential basis to business associates, domestic body corporates and other investors at a price of Rs 43 per share, the firm said in a filing to the Bombay Stock Exchange (BSE).

The remaining Rs 1.29 crore would be raised by issuing three lakh equity share warrants to business houses and domestic investors at Rs 43 per share, it said.

UTI set to open its $1 bn-plus issue

UTI Bank will hit the market next week with a $1 billion-plus equity issue. The bank will raise the money from a mix of preferential issue to promoters and fresh issues to qualified institutional buyers and GDR investors.

The bank’s capital raising plans were approved by the board, which met here on Thursday to consider the results for the first quarter and also decide on the equity expansion. Buoyed by a 70.7% growth in non-interest income, the bank announced a 45.2% rise in net profit to Rs 175 crore for the first quarter ended June 30, 2007.

The bank also decided to have a uniform price for all issues. Sources said the issue is likely to be priced at around Rs 650 per share. The bank will issue 3.19 crore shares to promoters. At Rs 650, UTI Bank will raise around Rs 2,075 crore from the preferential issue. The Special Undertaking of the Unit Trust of India (SUUTI) and Life Insurance Corporation of India have agreed to subscribe to the issue. However, some smaller subsidiaries of the General Insurance Corporation (GIC) may not subscribe to the preferential issue. The bank’s scrip closed at Rs 641.1 on the BSE on Thursday.

Read more in The Economic Times article.

Tatas to pick up 4.6% in DCB

The Tata group will pick up to 4.6 per cent stake in Development Credit Bank (DCB) through its newly-formed subsidiary Tata Capital.

The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank.

The other investors who will pick up up to 4.6 per cent stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.

DCB Investments is a special purpose vehicle floated by Schroders, a UK-based asset management company, to invest in the private sector bank. The preferential allotment is subject to the approval of the bank’s shareholders and the Reserve Bank of India (RBI).

If the RBI approval is not received for any of the proposed investor(s), the board of the private sector bank will have the power to identify and negotiate with one or more investors or with other interested investors for selling the stake and will secure the RBI’s special approval for the same, said the bank.

Read more in The Business Standard article.

DCB to issue shares at Rs 105, raise Rs 310cr

The board of directors of Development Credit Bank (DCB), which met today, approved a proposal to raise up to Rs 310 crore by issuing preferential shares at Rs 105 per share.

According to a release issued by the bank to the BSE today, the preferential issue would constitute 16.60% of the post-issue share capital.The investors would include Tata Capital (with a post-issue shareholding of up to 4.60%), Al Bateen Investment Co. L.L.C., U.A.E, GRA Finance Corporation, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.

"If the RBI approval is not received wholly or partly for any of the proposed investor(s), the board shall have the power to identify and negotiate with one or more investors or with other interested investors and procure specific approval of the RBI," the release added.

AIF Cap, 3 other PE funds to get up to 5% each of Catholic Syrian Bank

Kerala-Based Catholic Syrian Bank is on course to have new investors on board — a clutch of private equity funds. AIF Capital, one of the largest Asia-based independent private equity funds, is now buying into the old private bank which has been a target of takeover attempts in the past.

The bank is now planning a preferential issue of 5% to the fund at Rs 190 a share, according to sources close to the development. Three other private equity funds are also on course to pick up an additional 13.5% stake through the preferential offering. CSB will make a preferential allotment of shares aggregating 4.5% each to three other private equity funds. The proposal is now before the banking regulator the Reserve Bank of India. AIF Capital has an exposure to the local banking sector through its acquisition of a 5.3% stake in Yes Bank.

Banking sources said that AIF Capital had initially proposed to acquire 15% stake in the bank. However, the Reserve Bank of India has allowed the private equity fund to buy only 5% of CSB’s equity. Although CSB is an unlisted bank, the placement of shares appears to be at a significant premium in the light of other deals which have been struck in the banking segment. Sources said that in informal deals, the shares of the bank are being exchanged at prices between Rs 100 and Rs 125. The current book value of the bank is Rs 175 per share.

Read more in The Economic Times article.

SBI stake sale by Dec; to float NBFC

State Bank of India (SBI) is likely to go for a stake sale by December as part of its efforts to mobilise Rs 50,000 crore in the next three years.

"We are awaiting amendment to the SBI Act. We should be able to go for a stake sale by December," chairman O P Bhatt told reporters today.

The bank will also form a non-banking financial company (NBFC) to manage its insurance and asset management businesses for which details are being worked out, Bhatt said.

Bhatt also said that the issue of preferential shares was another option for raising capital, and it would be also considered once the amendment is through.

Bhatt said SBI would be forming joint venture for the NBFC, and is looking at both Indian and foreign partners. Regarding its listing, Bhatt said the bank would not sell more than 10% as the main purpose of the sale would be price discovery.

Read more in The Business Standard article.

HDFC to place 7% equity with Citi,CMP Asia

Housing Development Finance Corporation Ltd will issue total 1.8 crore shares or 7.11 per cent equity to Citigroup Strategic Holdings Mauritius and CMP Asia of the Carlyle group. The preferential allotment was cleared by shareholders at the annual general meeting Wednesday.

The shares will be allotted at Rs 1,730 each, a discount of Rs 152 to the current market price of Rs 1,882 on the National Stock Exchange. The stock is today up nearly 1 per cent over Wednesday.

Citigroup Strategic Holdings Mauritius already holds 9.15% equity in HDFC. Post -allotment, its stake will rise to 9.55 per cent. CMP Asia will hold 5.63 per cent post allotment, against nil now.

Read more in The Economic Times article.

UTI Bank puts off $600m GDR

UTI Bank, a mid-sized private sector bank, has deferred its $600 million global depository receipts (GDR) issue as well as the simultaneous preferential offer to its promoters.

The bank said the decision to put off capital raising plans was taken in order to provide promoter shareholders - Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation and General Insurance Corporation - more time to take a call on subscribing to the preferential offer.

SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake. LIC owns 10.38 per cent of the bank’s equity and GIC 2.38 per cent.

In a statement released after the bank’s extraordinary general meeting (EGM) here today, UTI Bank said the special resolutions on raising capital have been deferred “to provide promoter shareholders further time for consultation” on the preferential share offer.

The shareholders would again meet on July 13 to consider the plans to raise capital. The shareholders, however, passed a resolution increasing the bank’s authorised capital to Rs 500 crore from Rs 300 crore.

Banking sources said LIC, which bid in the recently concluded ICICI Bank’s follow-on equity offer for shares worth about Rs 4,000 crore, has asked for more time to arrange for funds as it was currently experiencing a “tight liquidity” situation.

SUUTI, which has already obtained the government’s permission, also needs to arrange for funds to subscribe to its portion of the preferential offer.

Read more in The Business Standard article.

HDFC Bank to raise $688 m via ADRs

HDFC Bank will raise the entire Rs 2,810 crore (around $688 million) of its fresh public issue of equity through American Depository Receipts (ADRs). The bank is looking at raising Rs 4,200 crore (over $1 billion) of additional share capital, of which over a quarter will be raised through a preferential issuance to HDFC. The top three private sector banks — ICICI Bank, HDFC Bank and UTI Bank — are looking at raising around $7 billion in equity over the next couple of months.

ICICI Bank is looking at raising $5 billion, of which around half will be raised from the overseas market. It is likely to hit the market in the latter half of this month. UTI Bank is also looking at raising around $1 billion, of which around Rs 1,754 crore will be through a preferential issue to the promoters while the remaining Rs 2,326 crore will be through a global depository issue.

HDFC Bank is likely to hit the market before the end of July. The bank, according to sources, is likely to appoint Merrill Lynch and UBS as lead managers for the issue. A final decision will be taken in the next couple of weeks when it has to file under SEC guidelines.

Read more in The Economic Times article.

Foreign funds to invest Rs 42cr in Opto Circuits

Foreign funds Lehman Brothers and Alliance Bernstein will invest Rs 41.92 crore for allotment of around 12 lakh shares in Opto Circuits on preferential basis.

An Extra Ordinary General Meeting (EGM) of the shareholders of the company would be held on June 29, to consider the issue of equity on preferential basis to investors, Opto Circuits said in a communique to the Bombay Stock Exchange.

Opto Circuits said it would allot upto 12 lakh shares on a preferential basis to certain investors including -- Lehman Brothers Asia Limited Sub Account- Lehman Brothers India Holdings Cayman II, Alliance Bernstein Hong Kong, subject to shareholders approval.

Read more in The DNA Money article.

Tata Power gives 10% as pref issues

Indian power utility Tata Power Company Ltd. plans to issue more than 20 million shares and warrants, amounting nearly 10 per cent of its equity, on a preferential basis to its largest shareholder, Tata Sons Ltd.

The issue price of the shares and warrants would be set later, the company said in a statement to the stock exchange late on Tuesday. Shareholders would have to approve the issue plan.Tata Sons, the holding firm of the Tata Group, holds 28.74 per cent in Tata Power as of March 31, stock exchange data showed.

Tata Power's shares closed at Rs 610.65 on Tuesday.