Bizbits

The regulator received the offer document on Friday, and would study the details in the due course of time before taking a view on the same. The total paid-up capital of the company stands at Rs 10.25 crore. As per the disclosures made, KPC holds more than 15 lakh shares in the company, either directly or through relatives. Kalyani Steels holds about 6 lakh shares in the company.

BSE to start warehousing of deals

MUMBAI: The Bombay Stock Exchange BSE is all set to start warehousing of institutional trades from May 11. The exchange has amended the BOLT BSE online trading net software toensure compliance with the conditions stipulated by Sebi on the implementation of warehousing of trades by institutional clients. quot;The BOLT software has been redesigned to provide a unique order number for identifying warehousing orders at the time of the order entry itself,quot; said a BSE source.

quot;The executed warehousing transactions would be parked in a separate client-warehousing account, till they are contracted out by the member,quot; he explained. Sebi has explained the warehousing of trades as the execution of a firm client order for a large quantity of shares in parts during the same trading cycle settlement and the issuance of a single contract note at the end of the trading cycle at the weighted average price. The system would ensure that the member broker issues a confirmation note at the end of each day to the institutional client for the partial order executed by him.

UTI launches pure debt scheme

MUMBAI: The Unit Trust of India UTI has launched on an open-ended 100 per centpure debt scheme, the UTI Bond Fund. The scheme opened for public subscription on May 4 and will remain open for 45 days. The scheme will invest entirely in debt and money market instruments. The scheme provides for liqudity and capital gains tax exemption under section 54EA and 54EB of Income Tax Act, 1961. The scheme will levy an exit load of 1.5 per cent to NAV for the initial one year.

CFCL to reduce share capital

CALCUTTA: The GP Goenka-controlled Consolidated Fibres amp; Chemicals Ltd CFCL has obtained shareholders8217; approval to reduce its share capital by 50 per cent from Rs 62.41 crore to Rs 31.21 crore with effect from March 31, 1998. The Industrial Finance Corporation of India Ltd sanctioned the restructuring package on behalf of the financial institutions. The package will be implemented on a stand-alone basis.

Under the previous scheme, CFCL, a manufacturer of acrylic fibre having its unit at Haldia, was to be merged with Star Paper Mills Ltd and NRC Ltd of the Duncan Goenkagroup. However, according to sources, Unit Trust of India, one of the financial institutions, had reservations about the merger. After the proposed capital reduction, the interest burden of the company will be reduced by Rs 18 crore per annum, chairman GP Goenka said.

The scheme sanctioned by IFCI was approved by the shareholders at the extra-ordinary general meeting held here on Friday. The promoters are required to bring in Rs 25 crore against which equity shares of Rs 10 will be issued and which will not be subject to capital reduction.The promoters will also bring in another Rs 4.5 crore towards capital expenditure. After the restructuring, the shareholding of the promoter group will increase from 18.43 to 28.68 per cent.