Future Capital IPO price set at Rs.765

Future Capital Holdings Ltd said on Thursday it has set a price of 765 rupees a share for its initial public offer (IPO).

Future Capital will raise around 4.91 billion rupees by selling 6.4 million shares.

Future capital is the financial services arm of the diversified Future Group, which promotes top retailer Pantaloon Retail India Ltd.

Future Capital IPO oversubscribed 132 times.

Post IPO, the equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

CARE signs MOU with Corporation Bank

Promoted by Banks and Financial Institutions, CARE is engaged in providing credit rating, financial and advisory services to various entities in the corporate and financial sectors in India.

Credit Analysis & REsearch Limited (CARE), a premier credit rating agency, signed a Memorandum of Understanding (MoU) with Corporation Bank.

Promoted by Banks and Financial Institutions, CARE is engaged in providing credit rating, financial and advisory services to various entities in the corporate and financial sectors in India.

Corporation Bank is a Public Sector Bank and offers financial services which are of great value to its customers.

This MoU will enable Corporation Bank in ensuring compliance with the guidelines of the New Capital Adequacy Framework (Basel-II) announced by Reserve Bank of India. Under these guidelines, the capital requirement for a corporate exposure is based on the credit rating assigned by the recognized rating agencies such as CARE.

As per the MoU, Corporation Bank may advise its clients to approach CARE for getting their facilities with the Bank rated. The clients of the bank will benefit from the rating exercise at a discounted rate. All these ratings will be carried out after obtaining mandates from the Bank’s clients/prospective clients.

Corporation Bank will be benefited with the objective and independent assessment of borrower’s credit quality. Further, the sharing of CARE’s analytical insights on various industries and evolving economic environment will help the bank in strategizing its lending decisions.

The customers of Corporation Bank classified as Small Scale Industries (SSI) will benefit from “NSIC–CARE Performance and Credit Rating” at a subsidised fee. This rating product, offered under the Performance and Credit Rating Scheme for SSIs adopted by the Ministry of Small Scale Industries of the Government of India is meant especially for the sector.

Also under the terms of the MOU, the rating requirements of Corporation Bank’s small and medium size customers that are not classified / registered as an SSI unit will be addressed under “CARE SME Rating”.

Source: (IndiaPRwire.com)

UTI Asset Management Company Limited files DRHP with the SEBI

UTI Asset Management Company Limited (the “Company”), a leading provider of asset management services in India catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds, has filed the Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”) to enter the capital market soon with an Initial Public Offering of 48,500,000 equity shares of Rs 10 each (“Equity Shares”) through an Offer for Sale by the Selling Shareholders for cash at a price to be decided through a 100% Book-Building Process (the “Offer”). Its four sponsors and the Selling Shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda (which are all controlled by the Government of India).

The Offer also comprises a reservation of not less than 485,000 Equity Shares for subscription by eligible employees and the Offer to the public of 48,015,000 Equity Shares (the “Net Offer”). The Equity Shares are proposed to be listed on the National Stock Exchange of India Ltd. and the Bombay Stock Exchange Ltd.

Of the total Net Offer, not less than 50% shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the Net Offer will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer will be available for allocation on a proportionate basis to Retail Individual Bidders.

The Company and its predecessor, the Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a national footprint with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI Financial Centres, independent financial advisors, banks and other distributors, as well as offices overseas.

The Company, along with its subsidiaries, manages domestic mutual funds, as well as provides portfolio management services and manages overseas funds, venture capital and private equity funds. Its total assets under management ("AUM") equalled Rs 495,418 million, as of September 30, 2007. Based on the AUM in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India, according to the Association of Mutual Funds in India (“AMFI”). The Company believes that it has the largest client base among mutual fund providers in India, with approximately 8.1 million client accounts. It has a high concentration of equity and balanced/hybrid funds; and had the second highest market share for equity funds (10.0%) and the highest market share for balanced/hybrid funds (41.9%) in India, as of November 30, 2007. Its income and liquid funds, on a combined basis, had the fourth highest market share (7.1%), according to Value Research.

The Company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 450,026 million, as of September 30, 2007, constituting approximately 9.4% of the total AUM invested in mutual funds in India and making it the third largest fund provider, according to AMFI.

The Company’s AUM for domestic mutual funds increased from Rs 138,967 million as of January 31, 2003, to Rs 450,026 million as of September 30, 2007, representing a compound annual growth rate of 28.6%. The Company also provides portfolio management services to approximately 320 clients. It has been recently selected as one of three asset managers to provide portfolio management services to the National Investment Fund. In addition, it has been selected by the Pension Fund Regulatory Development Authority as one of three asset managers to manage funds under a new pension scheme of the Government of India. It manages offshore and foreign institutional investor funds (including a co-branded fund with Shinsei Bank of Japan), as well as venture capital and private equity funds. As of September 30, 2007, its portfolio management, overseas, venture capital and private equity funds had total AUM of Rs 45,392 million.

The Global Co-ordinators and Book Running Lead Managers (“GCBRLMs”) to the Offer are JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited. The Book Running Lead Managers (“BRLMs”) to the Offer are Goldman Sachs (India) Securities Private Limited, UBS Securities India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited and CLSA India Limited.

- End -

Note

UTI Asset Management Company Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed its Draft Red Herring Prospectus (“DRHP”) with the Securities & Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in and on websites of the respective GCBRLMs at www.jmfinancial.in, www.citibank.co.in and www.enam.com; and the respective websites of the BRLMs at www.gs.com/country_pages/india, www.ibb.ubs.com/Corporates/indianipo, www.icicisecurities.com, www.sbicaps.com and www.india.clsa.com.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investor should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the DRHP filed with the SEBI including the section titled “Risk Factors”. The Equity Shares of the Company have not been and will not be registered under the U.S. Securities Act 1933, as amended or any state securities laws in the United States. This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.

Source : indiaprwire.com

Air India IPO likely in second half of 2008

Air India IPO


New Delhi, Jan 11 The government is considering divesting its stake in national carrier Air India through an initial public offering (IPO) in the second half of 2008.

This was stated by Civil Aviation Minister Praful Patel Friday on the sidelines of a press conference to launch India's first civil aviation exhibition, India Aviation 2008.

"We may consider issuing an IPO in the second half of this year," he told reporters, noting the divestment may be in the range of 10-15 percent of the shareholding.

Patel said he would also be meeting Finance Minister P. Chidambaram to discuss reduction in excise and custom duty on aviation turbine fuel (ATF).

He said states could make their "taxation" policy more "reasonable", by reducing their levy on ATF, which will directly affect ticket prices.

India's aviation growth will be through Indian state governments and smaller cities, rather than the central government or metropolitan cities, he added.

"I am in favour of bringing in the states. They themselves can be the drivers of growth," Patel said.

While he was confident about the airports in Bangalore and Hyderabad becoming operational this year, he had a "little doubt" about the supporting infrastructure like road connectivity, being ready on time.

"I want to make 2008 the year of the helicopter and sea planes," said Patel, adding that it was a mystery as to why these two sectors had not received any attention.

"Why can't we build a heliport in Delhi and Mumbai without bickering?" he asked.

He pointed out that a small nation like Maldives had 30-40 seaplanes, while India, with it long coastline, did not have a single one.

Announcing India Aviation 2008, Patel said that it would be the first international exhibition of its kind in India on the Indian civil aviation sector. The expo will be held between Oct 15 and 18, 2008.

Indian share market scale new heights

New Delhi, Jan 4 The Key Indian stock market shares zipped to their highest-ever levels Friday on the back of some active buying across several counters and renewed interest ahead of a mega initial offering by Reliance Power.

In the process, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose to a historic intra-day peak of 20,762.80 points, before ending the day at 20,686.89 - also a record close for the barometer index.

At Friday's closing level, the 30-share index had gained 341.69 points, or 1.68 percent, against the previous day's close at 20,345.20, data with the exchange showed.

The gainers and losers among Sensex stocks, however, were evenly matched, with 16 logging advances, and the remaining 14 ending with losses. At a broader level, 1,470 shares declined, 1,437 advanced and 17 remained unchanged.

The broader 50-share S&P CNX Nifty of the National Stock Exchange (NSE) was also up 1.55 percent at 6,274.30 points after scaling an all-time peak of 6,300.05 points against the previous close of 6,178.55.

Consumer durable stocks were the flavour of Friday, with the specific index for such stocks at the BSE registering a 2.56 percent jump, followed by a rise of 2.31 percent in the oil and gas index.

The index for power was also up on account of the interest generated by the upcoming public issue by Reliance Power, owned by Anil Dhirubhai Ambani-led Reliance Energy.

While banking stocks also moved by 2.01 percent, those for automobiles declined 0.73 percent. IT stocks also went down by 1.02 percent and healthcare by 0.07 percent.

Reliance Power IPO Price band Rs 405 to Rs 450

Each share of Reliance Power has been priced at Rs 405 at the lower end and Rs 450 at the upper end of the band. The company plans to offer the retail investors or those applying for Rs 1 lakh, a 5 per cent discount.

Reliance Power IPO would raise between Rs 10,500 crore to Rs 11,700 crore with the sale of 26 crore shares in the public offer.

Rating agency Crisil assigned an above average 4-on-5 rating to the proposed initial public offer of Reliance Power.

Bankers to the Reliance Power initial public offering issue include ABN Amro Rothschild, Deutsche Bank AG, Enam Securities Pvt., ICICI Securities Ltd., JM Financial Consultants Pvt., JPMorgan Chase & Co., Kotak Mahindra Capital Co. and UBS AG.