Posts Tagged ‘equity head’

Future Venture to Re-File for IPO Soon :)

future group

Future Venture is likely to approach Sebi again for an initial public offering soon, as the validity of the earlier approval by the market watchdog lapsed this month.

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“We are going for a fresh filing (for IPO) with Sebi,” Future Group Chairman Kishore Biyani told PTI.

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The company, which is a part of diversified Future Group, had received the Securities and Exchanges Board of India (Sebi) approval for IPO on September 4, 2008.

As per regulations, a company has to hit the capital markets within 12 months of receiving the Sebi nod.

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Last year, the company had planned to raise up to Rs 1,000 crore through a public offering of about 374 crore shares so as to fund the group’s expansion plans.

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However this time amount to be raised from the capital market would be less than the previously planned Rs 1000 crore.

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Liquidity crunch and volatility in recent times had forced many companies including Future Venture to either postpone or shelve their plans to mop up funds from the capital market.

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“The planned IPO by Future Venture was actually a by-product of the bull market.”

“After the success of Future Capital IPO last year, the Future group thought of tapping the capital market with another offer, although there was no actual necessity of fund raising,” SMC Capital Equity Head Jagannadham Thunuguntla said.

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The Future Group, which is into various businesses apart from retail, is currently looking at ways to raise funds.

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uture Venture is likely to approach Sebi again for an initial public offering soon, as the validity of the earlier approval by the market watchdog lapsed this month.

πŸ™‚

“We are going for a fresh filing (for IPO) with Sebi,” Future Group Chairman Kishore Biyani told PTI.

πŸ™‚

The company, which is a part of diversified Future Group, had received the Securities and Exchanges Board of India (Sebi) approval for IPO on September 4, 2008.

As per regulations, a company has to hit the capital markets within 12 months of receiving the Sebi nod.

πŸ™‚

Last year, the company had planned to raise up to Rs 1,000 crore through a public offering of about 374 crore shares so as to fund the group’s expansion plans.

πŸ™‚

However this time amount to be raised from the capital market would be less than the previously planned Rs 1000 crore.

πŸ™‚

Liquidity crunch and volatility in recent times had forced many companies including Future Venture to either postpone or

SEBI releases guidelines for interest rate futures :)

Interest Rate Futures

Market regulator SEBI on Friday issued guidelines for trading in interest rate futures under which the 10-year government securities can be traded on bourses, a development that will deepen the debt market.

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As per the guidelines, the contract size for futures trading would be Rs 2 lakh with a maximum maturity period of 12 months.

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The contract cycle, it added, would consist of four fixed quarterly contracts expiring in March, June, September and December.

The notional coupon rate for such trade, the guidelines said, would be 7 per cent to be compounded every six months.

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Welcoming the move SMC Capitals Equity Head Jagannadham Thunuguntla said, “It is a right step by SEBI. This will activate the debt market in the country.”

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The guidelines further said stock exchanges will have to seek approval of the SEBI before starting trading in interest rate futures in their currency derivative segment.

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The clearing system for the interest rate futures, it added, would be the same as for the currency derivatives segment.

The exchanges will also be required to disclose upfront the composition of the basket of deliverable grade securities and the associated conversion factors for each of the quarterly contract.

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D-Street may inch towards consolidation: Analysts

Dalal Street

A wave of consolidation is likely to greet Dalal Street this week as concerns over rainfall shortage would pull down investor sentiments and keep the market under pressure, analysts said.

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“The market would remain range-bound and would look for a positive trigger amid the dampening effect on the possibility of a drought-like situation in the country,” Ashika Stock Brokers Research Head Paras Bothra said.

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Analysts also said there might be some positive bias in the movement of the market but absence of any major trigger might shift focus on the rain God.

“Delayed monsoon has made the market totally indecisive of the next move.

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The impact of drought would be felt in some time from now and that is holding back investor confidence to enter market,” SMC Capitals Equity head Jagannadham Thunguntla said.

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Besides, with the US economy showing signs of revival and Germany and France emerging out of the recession quicker than expected, analysts feel it could bring in a positive bias in the market.

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“As it is now a known fact that the major economies are pulling themselves out of the recession, I do not foresee any major collapse in the market in near term as it is all positive news around,” Bothra added.

The BSE Sensex gained 251 points, or 1.66 percent in the past week and closed at 15,411.63 points.

Venture capitalists have little fancy for Indian start-ups

Venture capitalists have little fancy for Indian start-ups

Dreamy-eyed Indian entrepreneurs, hoping to talk their way into getting venture capital for their start-ups might as well look elsewhere for funding.

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It doesn’t happen in India, not often anyway, investors and experts in the industry, maintain.

Venture capitalists in India only prefer growth-stage companies — firms already up and running that need money for expansion.

Most start-up entrepreneurs, as a result, dive into their own pockets or banks, or draw funds from family and friends.


Seed capital for a new business has not come of age in India, they added.

The concept of seed capital does not exist in India, there are a few funds which have come up of late, but it is minuscule compared to the need and potential.

And the problem has also compounded by the current economic scenario, where financial institutions are more concerned with keeping their capital safe than risk their funds with a new venture.

Venture capital firms invested $740 million India in 2008 compared to $876 million in the previous year.

‘The number of deals were also down to 125 in 2008 from 144 in 2007.

Jagannadham Thunuguntla, equity head at SMC Capitals, has an explanation.

‘The confidence among foreign funds, be it venture capital or private equity, hasn’t been restored after what happened back home.’

According to him, these funds will start returning to the equities markets first, and later look at other avenues.

Among start-ups, too, there is intense competition to get venture capital funding.

And more often, there is one set of firms that comes up tops — IT-based businesses or companies that use the web to reach out to customers, said veteran venture capitalists.

A lot of venture capital firms look favourably at IT start-ups because once the concept takes off it is easier for such businesses to scale up.

Also venture capitalists generally have a Silicon Valley background and have a greater understanding of such types of business models.

Past record also matters — a larger number of IT firms have given attractive returns.

‘There is a reasonably long list of IT firms — MindTree, Spectramind, Mphasis, Daksh, Naukri.com — which have delivered good exits for venture capitalists.

Perhaps, that’s the reason why people like Manish Malhotra – who quit his position with a top bank to start a hospitality agency – are still floundering with their business.

‘Venture capital is difficult to get. I come from the banking industry and know people. But even then it hasn’t been easy at all to convince them that my plans will work,’ Malhotra said.

Dreamy-eyed Indian entrepreneurs, hoping to talk their way into getting venture capital for their start-ups might as well look elsewhere for funding.

IDR norms by RBI to allow only serious investors: Analysts

RBI’s recent direction to have a lock-in period of one year for investors to redeem their investment in Indian Depository Receipts is aimed at attracting long-term players to these instruments, say analysts.

Also, the central bank’s rule that proceeds from IDR issues have to be immediately repatriated from India is designed to prevent companies from misusing foreign exchange market, they said.

Yesterday, RBI allowed overseas companies to raise money through issuing rupee-denominated IDRs in Indian markets and framed rules in this regard.

The central bank had said the proceeds from the issue of IDRs will have to be immediately repatriated outside India by the companies issuing such IDRs.

It had also said IDRs will not be redeemable into underlying equity shares before the expiry of one year period from the date of issue of the IDRs.

“It is a safeguard by the RBI to prevent non-serious investors from investing into such IDRs and also to prevent foreign companies to misuse the IDRs for managing foreign exchange,” Jagannadham Thunuguntla, equity head of SMC Capitals said.

As per the norms, FEMA Regulations will not apply to persons resident in India for investing in IDRs and subsequent transfer arising out of transaction on a recognised stock exchange.

Further, other persons resident in India will be allowed to hold the underlying shares only for the purpose of sale within 30 days from the date of conversion of IDRs.

The financial/banking companies having presence in India, either through a branch or subsidiary, have to get permission of the sectoral regulator like RBI or IRDA before issuing IDRs.

For More, Please Refer the link : http://economictimes.indiatimes.com/Economy/IDR-norms-to-allow-serious-players/articleshow/4812457.cms