Vijay Mallya's United Spirits has bought out the Scottish Scotch major Whyte and Mackay.An official announcement is scheduled for Wednesday.The deal which was initially valued at Pound 650 million was settled at pound 595 million which includes a pound 100 million payout to bridge a Pension fund Deficit in W&M's Pension trust.
The main owners of the Scottish firm is expected to leave the board including chief executive Mr.Vivian Imerman,who owns nearly two thirds of the firm.However,United spirits is keen on Mr Brannan ,the erstwile manager to head the existing management,as scotch is a new proposition for the Indian major.
Whyte and Mackay has an array of brands including their USP W&M scotch whisky,Dalmore scotch whisky,Isle jura single malt and Vladivar vodka.United spirits will look to promote these in India and some other markets too.
Mr Alok Gupta, one of Vijay Mallya's senior executives is expected to control the operations going forward.
Source: The Economic times
Tuesday, May 15, 2007
Aavishkar Goodwell to foray into Microfinance;Dubai's Legtaum Capital Picks 51% stake in SHARE
India's leading MicroFinance Institution(MFI) SHARE to get equity support from Aavishkaar Goodwell.The private equity player is expected to buy a small stake in the firm and help the SHARE management expand its existing operations.This is after Dubai's Legtaum capital picked up 51% stake in SHARE for Rs 125 crore.
Aavishkaar Goodwell which has a "for the poor" approach generally invests in small start up's and microfinance and has build up a porfolio worth US $25 mn.On the other hand SHARE is one of India's largest MFI with outstanding loans to the tune of $95 mn and has operations in 5 Indian states.
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Aavishkaar Goodwell which has a "for the poor" approach generally invests in small start up's and microfinance and has build up a porfolio worth US $25 mn.On the other hand SHARE is one of India's largest MFI with outstanding loans to the tune of $95 mn and has operations in 5 Indian states.
Read the complete article
BSE heading towards demutualisation
The Bomabay Stock Exchange has 22 foreign and local investors lined up for a 51% stake sale as a part of its ongoing mandated demutualisation process.This is after foreign investors including the NYSE and global Investment Bank Goldman Sachs bought 20% stake in the National Stock Exchange a few months ago.SEBI has fixed the deadline as 19th May to complete the transaction.
BSE has managed to convince the Foreign Investment Promotion Board(FIPB) to allow six foreign investors to invest in Asia's oldest bourse. The Singapore stock exchange and the Dutch bourse exchange already own 5% of BSE's equity.Among the foreign investors Dubai Financial, Caldwell Asset Management(USA),Katriel Investment(Cyprus) and Atticus(Mauritius) are expected to pick up stakes.
16 domestic investors including corporates Mahindras,Bajaj,LIC,Bank of India,SBI,Central Bank of India are also acquiring equity stakes of 1% or a little more.Any company buying more than 1% is subject to approval by SEBI.High net worth individuals such as Infosys CEO probable Kris Gopalakrishnan are also buying into the company.
Post Demutualisation BSE will have 77.2 lakh outstanding shares up from 69.5 lakh shares.FY'06 saw BSE booking profits of 60 crores ,it has reserves and surplus to the tune of Rs 930 crores.
Source: The Economic Times.
BSE has managed to convince the Foreign Investment Promotion Board(FIPB) to allow six foreign investors to invest in Asia's oldest bourse. The Singapore stock exchange and the Dutch bourse exchange already own 5% of BSE's equity.Among the foreign investors Dubai Financial, Caldwell Asset Management(USA),Katriel Investment(Cyprus) and Atticus(Mauritius) are expected to pick up stakes.
16 domestic investors including corporates Mahindras,Bajaj,LIC,Bank of India,SBI,Central Bank of India are also acquiring equity stakes of 1% or a little more.Any company buying more than 1% is subject to approval by SEBI.High net worth individuals such as Infosys CEO probable Kris Gopalakrishnan are also buying into the company.
Post Demutualisation BSE will have 77.2 lakh outstanding shares up from 69.5 lakh shares.FY'06 saw BSE booking profits of 60 crores ,it has reserves and surplus to the tune of Rs 930 crores.
Source: The Economic Times.
Debt markets to have credit default swaps
The next level for the debt markets in India is not far from realization.The RBI is expected to issue guidelines for the introduction of credit derivatives and set the regulatory framwork for its issuance today.This is after the the credit market has soared more than 27% in the last tweleve months.
RBI claims that it has reached the "adequate comfort level for the introduction of such products".However it may take several months for the banking industry to standardize the terms for trading these instruments.
There is a possibility that the government initially sets aside these instrument to be secured against an asset before allowing the markets to do away with them at a later stage.Also there is much speculation about whether or not offshore FI's will be allowed to trade in them.
Interest rate derivatives were the only derivative products allowed by the regulators to hedge against foreign currency risk before 1999.Allowing credit derivatives to be traded after the recent inclusion of derivatives on equity products(as recently as 2001)will cerainly lead the markets towards more stability.
Source: Mint
RBI claims that it has reached the "adequate comfort level for the introduction of such products".However it may take several months for the banking industry to standardize the terms for trading these instruments.
There is a possibility that the government initially sets aside these instrument to be secured against an asset before allowing the markets to do away with them at a later stage.Also there is much speculation about whether or not offshore FI's will be allowed to trade in them.
Interest rate derivatives were the only derivative products allowed by the regulators to hedge against foreign currency risk before 1999.Allowing credit derivatives to be traded after the recent inclusion of derivatives on equity products(as recently as 2001)will cerainly lead the markets towards more stability.
Source: Mint
Monday, May 14, 2007
Right's issue worth $400 million on Jet's radar
Jet is planning a mammoth rights issue worth $400 million, the offer is still in its gestation period, and the issue is expected to come through in another 4-5 months according to director Mr. Vic Dungca.
$50 million from the proceeds would be used for Jetlite,the renamed Air Sahara which the company acquired after a prolonged legal tussle.The rest,according to the management, would be used to expand its existing fleet to 22 new aircrafts which would include 10 Airbus 330 and 10 Boeing 777.
Read the full article here
$50 million from the proceeds would be used for Jetlite,the renamed Air Sahara which the company acquired after a prolonged legal tussle.The rest,according to the management, would be used to expand its existing fleet to 22 new aircrafts which would include 10 Airbus 330 and 10 Boeing 777.
Read the full article here
Fund houses on a NFO rolling spree
The mutual fund industry is set for a roller coaster ride.Investment banks like JP Morgan and AIG are coming out with NFO's for the first time.Along with them NFO's from veterans like SBI and HDFC is expected to hit the markets soon.
Capital protection offers are also rolled out by Franklin Templeton and DWS.DSP Merill Lynch's closed ended scheme is another fund which is closing for subscription at the end of the month.
Fixed maturity plans are in the pipeline by the likes of ICICI Prudential,Standard Chartered and Lotus.The offer documents of these funds have been filed with the SEBI.On the equity side UTI India Lifestyle, UTI Flexi Cap and Lotus Nifty Index Plus Fund are ready to make their offers public.
Read the Hindu article:
Fund houses line up series of new offers
Capital protection offers are also rolled out by Franklin Templeton and DWS.DSP Merill Lynch's closed ended scheme is another fund which is closing for subscription at the end of the month.
Fixed maturity plans are in the pipeline by the likes of ICICI Prudential,Standard Chartered and Lotus.The offer documents of these funds have been filed with the SEBI.On the equity side UTI India Lifestyle, UTI Flexi Cap and Lotus Nifty Index Plus Fund are ready to make their offers public.
Read the Hindu article:
Fund houses line up series of new offers
Sunday, May 13, 2007
Hedge funds to debut in India soon
The RBI monetary policy for 2007-2008 has given a fillip to the alternative investment industry in India.
In a move to usher the capital and current account convertibility of the rupee the RBI has increased the present limit for individuals for any permitted current or capital account transaction from $50,000 to $100,000 per financial year.The current account convertibility was established with the acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement in August 1994.
Driven by the need to increase their assets under management Hedge funds have reduced their minimum investment limits from $1mn to 200,000$ and even 100,000$ overseas and to tap the retail markets launched mutual funds that invest in them.This move by the Hedge fund community over the years coupled with the government's incentive gives a strong case for Hedge fund investments in India.
The SEBI has laid down the guidelines for the direct registration of hedge funds.What is to be seen is that how these funds interpret this move by the RBI.
Read the Hindu article
$100,000 limit puts hedge funds within reach of Indian investors
In a move to usher the capital and current account convertibility of the rupee the RBI has increased the present limit for individuals for any permitted current or capital account transaction from $50,000 to $100,000 per financial year.The current account convertibility was established with the acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement in August 1994.
Driven by the need to increase their assets under management Hedge funds have reduced their minimum investment limits from $1mn to 200,000$ and even 100,000$ overseas and to tap the retail markets launched mutual funds that invest in them.This move by the Hedge fund community over the years coupled with the government's incentive gives a strong case for Hedge fund investments in India.
The SEBI has laid down the guidelines for the direct registration of hedge funds.What is to be seen is that how these funds interpret this move by the RBI.
Read the Hindu article
$100,000 limit puts hedge funds within reach of Indian investors
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