Bizbits — Exim Bank loans to EOUs

November 12: MUMBAI: Exim Bank has announced a new programme to provide working capital term-loans to export oriented units (EOUs) which wi...

November 12: MUMBAI: Exim Bank has announced a new programme to provide working capital term-loans to export oriented units (EOUs) which will supplement term-loans offered by the bank for acquisition of plant and machinery and other fixed assets required by EOUs.

A press release from the bank said, to enable EOUs to access production inputs for exports in a cost-effective manner, the bank has introduced working capital term-loan facility. Such loans will be repayable within two years and will carry a minimum interest of 12.5 per cent for rupee term-loans.

Sebi action against North Star

MUMBAI: Sebi has ordered the impounding of June 1996 auction proceeds amounting to Rs 1.80 crore in the North Star Gems (India) shares. It has ordered that the auction proceeds be transferred to the investors’ protection fund of the Bombay Stock Exchange.

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The decision follows investigations into an unusual price rise accompanied by large volumes in this scrip in the period between February’96 and June’96. The share price rose from Rs 50 to Rs 176 in this time. North Star had come out with its maiden public issue in November 1995. The auctions were indefinitely suspended by the BSE due to suspected price manipulations.

Usha Martin, UBL to merge

CALCUTTA: THE board of directors of Calcutta-based Usha Martin industries Ltd and Usha Beltron Ltd (UBL) have decided to merge the two companies. Basant Kumar Jhawar, chairman of both the companies told the reporters on Wednesday after the decision was taken at the respective board meetings held here on the same day.

Upon receipt of the statutory and other approvals, the merger will be effective from October 1, 1997. After all approvals in place, Usha Beltron Ltd will be renamed as Usha Martin Industries Ltd. As per the terms agreed, one share of Usha Beltron will be issued for three shares of Usha Martin. The ratio of marger was worked out on the basis of joint valuation done by independent firms of the chartered accounts — N M Raiji & Company and Dalal & Shah. The merger will enhance the shareholder’s value through business synergies, said junior Jhawar.