Financial Resource Planning

7/29/2019 Financial Resource Planning

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PART -1

FINANCIAL RESOURCE

PLANNING


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1. INTRODUCTION

Whether you are thinking of starting up your own business or if an existing business is

thinking of expanding, it is likely that money will be needed. The money needed to start a

business is called business finance. Where do businesses get the finance to start a business or

to finance expansion?

This resource will look at some of the possibilities. When you are working through the

resource, remember that some sources of finance will be appropriate for some businesses but

not for others.

For an individual thinking of setting themselves up as a mobile sandwich van, the sources of

finance are going to be quite different to that needed and available by someone like Liverpool

Football Club when trying to build a new stadium.

LiverpoolFC are planning to build a new stadium to replace the famous Anfield stadium. The

cost to fund this project will be in the region of 215 million. Raising that sum of money

presents different problems to raising the money to pay for setting up a mobile sandwich bar!

There are a number of factors to think about when looking at this area of business. We will be

looking at the following:


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An Overview of sources of finance - short term or long term?

Short term sources of finance:o Bank overdrafto Trade Credito Leasingo Bank loanso Credit cards

Long term sources of finance:o Bank loanso Share capitalo Debentureso Asset saleso Venture capitalo Retained profito Owners' capitalo Government, local authority or EU grants


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2. COMPANIES NAME AND HOW TO RAISE TO FUNDS.

2.1. RELIANCE GROUP FIRMS SEEK SHAREHOLDER NOD TO

RAISE FUNDS

Date &placePress Trust Of India / New Delhi Aug 11, 2012, 00:54 IST

Why raise?Requirement of different companies

Reliance Communications,

Reliance Power,

Reliance Infrastructure

Reliance Capital.

Source of funds15,000 crore at current valuations through equity dilution of up to 25 per cent in

four of its companies.

DetailsThe Anil Ambani-led Reliance Group plans to seek shareholders nod to raise funds,

estimated at about Rs 15,000 crore at current valuations, through equity dilution of up to 25

per cent in four of its companies.

The companies include Reliance Communications, Reliance Power, Reliance Infrastructure

and Reliance Capital. Shareholders approval to enabling provisions for raising funds from

institutional investors would be sought at the annual general meetings (AGMs) of these firms

next month.


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All four companies will hold their AGMs on September 4, where shareholders nod would be

sought on these matters, among other issues, but approvals have been taken for such enabling

provisions in the past as well without any actual equity dilution having taken place. When

contacted, a Reliance Group spokesperson said these were only enabling resolutions and

there were no concrete plans under way at any of the four companies.

As clarified in the explanatory statement attached to the notice, these are merely enabling

resolutions taken as per usual practice at our AGMs every year, in the interests of maintaining

financial flexibility.

There are presently no plans by any of our group companies, namely, RCap, RCom, R-Infra

or RPower to make any fresh issue of capital, the spokesperson said.

Individually, RCom said in its AGM notice to shareholders it would seek their approval for

authorising the board to issue equity shares, convertible debentures or other such securities,

to qualified institutional buyers to the tune of up to 25 per cent stake in the company. The

other three firms, RPower, R-Infra and Reliance Capital, would also seek approval of their

shareholders for similar resolutions, they said in their respective AGM notices.

According to current market valuations of the four companies, equity issuance of up to 25 per

cent stake in each of them could fetch close to Rs 15,000 crore. The four firms command a

cumulative market value of about Rs 60,000 crore.

The combined cash position of these firms at consolidated level more than halved to nearly

Rs 4,000 crore at the end of the last fiscal 2011-12, from over Rs 8,300 crore a year ago.

Another group company, Reliance MediaWorks recently said its board has approved raising

funds up to Rs 600 crore by way of rights issue of its equity shares to its shareholders.

Besides, it has also signed a term sheet with a global private equity fund, which would

acquire "a substantial minority stake in Reliance MediaWorks' Film and Media Services

division for an investment of Rs 605 crore." Reliance Group has previously raised nearly

USD 7 billion from financial markets globally in less than three years, but some of its recent

attempts, such as a Singapore listing of RCOM's undersea cable arm and equity sale in its

telecom tower unit could not materialise due to adverse market conditions


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2.2. BHARTI INFRATEL FILES FOR IPO MAY RAISE FUND

Date &placePress Trust of India / Mumbai Sep 14, 2012, 15:35 IST

Source of fundsExpected to raise up to $1 billion (about Rs 5,500 crore) threw the IPO (initial

public offer)

Why raise?By Compass vale Investments Pte, GS Strategic Investments, Anadale and Nomura

Asia Investment (IB) Pte, the filing added.

DetailsBharti Airtel, the key promoter entity of Infratel, will not participate in the share sale, which

owns around 86% stake in the tower unit,Bharti Airtel today said its tower unit Bharti Infratel

has filed papers for an initial public offer with market regulator Sebi and is expected to raiseup to $1 billion (about Rs 5,500 crore).

"Bharti Infratel, a subsidiary of Bharti Airtel, has filed its draft Red Herring Prospectus with

the Securities and Exchange Board of India (Sebi) on September 14, 2012 in relation to its

initial public offer of equity shares," Bharti Airtel said in a filing to the BSE.

The IPO will constitute a fresh issue of equity shares by Bharti Infratel and an offer for sale

portion by Compassvale Investments Pte, GS Strategic Investments, Anadale and Nomura

Asia Investment (IB) Pte, the filing added.

It said, however, the committee of directors, which was looking at the details of listing of

Bharti Infratel, has decided not to participate in the offer for sale of equity shares in the

proposed issue.

Effectively, it means that Bharti Airtel - the key promoter entity of Infratel - will not

participate in the share sale.


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Although the company did not say as to how much money it is looking to garner from the

IPO, market sources familiar with its plans said it could be in the region of $1 billion.

Bharti Infratel has more than 33,000 towers in operation.

Other players in the tower business include Anil Ambani-led Reliance Infratel and Viom

Networks a joint venture between Tata Teleservices and Kolkata-based Quippo

Infrastructure.

So far, none of the tower companies is listed in India, although Reliance Infratel had plans to

do so.

2.3. EXIM BANK RAISES SGD250 MILLION;

Date &place

MDT/PTI | 11/09/2012 11:21 AM |

Mumbai.

Source of fundsThe bond issue was priced at 3.375% given the huge demand and the 100% sovereign

guarantee Exim offerssets new record pricing at 3.375%

Why raise? & details.

The Exim Bank has mopped up 250 million in Singapore dollars (SGD) at a coupon of

3.375%, the cheapest five-year money raised by any domestic institution so far, reports PTI

quoting sources. This is the second overseas debt raising by the bank in 40 days. On 1st

August, it had sold $500 million bonds at a coupon of 4%, which were just 348 basis points

above the US treasury's. The issue was over-subscribed by five times.

According to sources at the merchant bankers, the issue had a guidance pricing between

3.375% and 3.350%.


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"But the issue was finally priced at 3.375% given the huge demand and the 100% sovereign

guarantee Exim offers," a merchant banking source told PTI.

TCA Ranganathan, Chairman and Managing Director of Exim Bank could not be reached to

independently confirm the bond sale.

"This was an excellent issuance by a sophisticated issuer like Exim Bank. Their inaugural

five-year SGD 250 million bond was strongly subscribed by several regional asset managers

and private banks resulting in tight pricing of 3.375% per annum, which, on a swapped basis

is circa 5 bps per annum, tighter than trading levels of their recently issued five-year $bonds,"

Citi India head for capital markets origination Rajiv Nayar told PTI commenting on bond

sale.

Over 50 investors participated in the programme with around 82% coming in from Singapore,

around 14% from Hong Kong and around 4% from Europe, the source said.

Out of this, around 42% are banks, around 30% AMCs with private banks constituting around

28%, sources added.

The issue had a rating of Baa3 from Moody's and BBB- from S&P.

It can be noted that domestic banks have been on a fund raising spree since July, which was

kicked by the nation's largest lender SBI mopping up $1.25-billion through a bond sale at

4.125% coupon or 375 bps over the US government bonds.

Since then, ICICI Bank, Axis Bank, IDBI Bank, IOB, Union Bank among others together

raised over $3 billion from overseas bond sale.

Corporates waiting to mop up dollar funds are Jindal Steel & Power, and Power Finance Corp

among others.


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2.4. TATA STEEL TO RAISE FUNDS

Date &placeMDT/PTI | 28/08/2012 10:59 AM , New Delhi.

Source of fundsRs3,700 crore up to March 2012 in the project, which was proposed to be funded through a

65:35 debt-equity ratio.

Why raise?Tata Steel is setting up a six million tonnes per annum greenfield facility at Kalinganagar in

Odisha in two equal phases with an investment of about Rs34,500 crore

detailsTata Steel needs to raise money for its ongoing expansions in Odisha, reports PTI quoting a

top company official.

"We will obviously need to raise money because of our ongoing expansions in Odisha, but

we have not finalised our plans," Tata Steel Managing Director HM Nerurkar told reporters

on the sidelines of an award giving ceremony in the capital.

Tata Steel is putting up a six million tonnes per annum (mtpa) greenfield facility at

Kalinganagar in Odisha in two equal phases with around Rs34,500 crore investment.

It has spent Rs3,700 crore up to March 2012 in the project, which was proposed to be funded

through a 65:35 debt-equity ratio.

Tata Steel had earlier said that the first phase of the Odisha plant with 3 mtpa capacity would

be implemented by 2014.

The steel maker has 6.8 mtpa steel-making capacity at the lone domestic facility at

Jamshedpur. Overall, it has a total 27 mtpa capacity including operations in the UK and the


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Netherlands. It is expanding capacity of its Jamshedpur plant by three mtpa through brown-

field expansion.

"It is for sure that we have not scaled down our modernisation plans and obviously we will

require the funds to carry those out," he added.

Nerurkar said Tata Steel India would continue its effort on improving the performance.

However, with difficult market conditions in Europe, it has taken various initiatives to reduce

cost, rationalise the portfolio.

"I am sure these are challenging times and is not something that is going to pass tomorrow.

But, we will fight it out and I am sure our colleagues in Europe will ensure that the situation

changes," he added.

On steel demand, Nerurkar said, "If you take economic growth as seven per cent, then the

industry should grow at eight per cent. I hope infrastructure scrtor sees growth on the ground,

so that there is a fillip to the steel industry".


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2.5. VKS PROJECTS RAISE FUNDS.

Date &placePTI Jun 26, 2012, 06.22PM IST, MUMBAI

Source of fundsWith anIPOto raise Rs 55 crore through book building process.

Why raise?deployed to meet long-term working capital requirements, besides financing the

procurement of construction equipment and key machineries and the setting up ofengineering design studio/office and training centre in Chennai, Cochin, Delhi, Hyderabad

and Ahmedabad,

DetailsMUMBAI: Engineering procurement and construction (EPC contractor) company VKS

ProjectsLtd has proposed to enter capital markets with an IPOto raise Rs 55 crore through

book building process.

The price band has been fixed at Rs 55 to Rs 60. The issue opens on June 29, 2012 and closes

on July 04, 2012.

"The proceeds of Rs 55 crore raised through public issue are proposed to be deployed to meet

long-term working capital requirements, besides financing the procurement of construction

equipment and key machineries and the setting up of engineering design studio/office and

training centre in Chennai, Cochin, Delhi, Hyderabad and Ahmedabad," VKS Projects

Managing Director V K Sukumaran told reporters here.

Post-IPO the promoters' stake will come down to 47 per cent, he said.

The company intends to meet its working capital requirements to the extent of Rs 15 crore

from the proceeds of the issue and the balance will be met from a combination of internal

accruals and banking limits at an appropriate time as per the requirement.
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VKS Projects is engaged in the business of undertaking EPC contracts of alloy steel turnkey

piping, civil land development, industrial/ commercial infra projects, structural fabrication

and erection of equipments, fire fighting projects and commissioning of chemical plants.

In terms of industry segments, the company caters to chemicals, oil and gas (onshore and

offshore), refinery, petrochemicals, dyestuff, pharma & bulk drugs, metallurgy, power and

textiles.

The company had Rs 98 crore worth orders on hand as on December 2011.

Its clientele includes Thermax India Ltd, Punj Lloyd Ltd, Deepak Fertilizers &

Petrochemicals Ltd,Reliance IndustriesLtd and Shriram EPC, Sukumaran said.
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2.6. SONATA FINANCE RAISES FUND

Date &placeNew Delhi,

Sep 14, 2012, 11:39 IST

Source of fundsRs 35 crore equity funding from a group of investors

Why raise?SONATA has a more reqirement capital on the Northern states of India and provides access

to credit to poor in those states.

DetailsSONATA Finance, an Allahabad based non-banking microfinance institution today said it

has received Rs 35 crore equity funding from a group of investors led by global investment

fund Creation Investments

The Michael and Susan Dell Foundation and Swaminathan Aiyar, two existing investors in

the company and Anup Kumar Singh, the promoter, have also invested in this round.

Unitus Capital was the exclusive financial advisor and arranger to SONATA and its

shareholders transaction. SONATA has an exclusive focus on the Northern states of India and

provides access to credit to poor in those states.

Abhijit Ray, Co-Founder and Director of Unitus Capital added, This transaction validates

the fact that there is strong interest in Indian microfinance sector. SONATAs equity

successful raise is an evidence of its unique geographical focus, profitable operations,

supportive investors, visionary board, experienced management team, committed promoter,

and focused customer service.


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2.7. ESSASR OIL TO RAISE $1.5B ECBS TO RETIRE RE DEBT

Date& placeBy Vikas Srivastav Aug 27 2012,

Mumbai

Source of fundsRaise around $1.5 billion (Rs 8,354 crore) in external commercial borrowings (ECB)

Why Reise?With the company formally exiting the corporate debt restructuring cell, foreign banks who

earlier loathe to lend to the Vadinar-based refiner would be more open to do so.

DetailEssar Oil, Indias second largest private oil refiner, plans to raise around $1.5 billion (Rs

8,354 crore) in external commercial borrowings (ECB) in the next three to four months .

A senior company official told Financial Chronicle, We have received the Reserve Bank of

India (RBI) approval for ECB refinancing, and plan to approach the bankers soon. The

company expects to save around Rs 600 crore annually through this arrangement.

The companys borrowing cost for Rs 8,000 crore was around 10.511 per cent in the

domestic market, while the six-month LIBOR rate is 0.72 per cent per annum. Essar Oil

estimates that it may have to pay around 4.5-5 percentage points above LIBOR, which would

still allow it to save.

We do not think that there is any serious issue of credit for big and known companies in the

global market due to slowdown and negative market sentiment for investments in some

quarters. said the official quoted above. Loans contracted by the company post

commissioning of the refinery carry higher interest rates and Essar Oil estimates that with its

20 million tonnes per annum refinery expansion complete, it can secure lower interest rates

on loans as the project risk premium that bankers charged it hitherto is no longer needed.

The company has secured approval for exiting corporate debt restructuring for Rs 9,400 crore

of loans disbursed by around 19 lenders and is now working on finalising the terms of the

debt facilities. The restructuring was led by the State Bank of India (SBI), IDBI Bank, ICICI

Bank, IFCI and Punjab National Bank (PNB). It takes between 60-90 days for the term sheet
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that includes rates, duration and frequency, to be converted into an agreement, Suresh Jain,

In June, RBI allowed companies in the manufacturing and infrastructure sectors to raise up to

$10 billion as ECBs to repay their rupee loans or for fresh rupee capital expenditure.

Essar Oil in May completed the Rs 8,300-crore expansion of its Vadinar Refinery that has a

Nelson complexity index of 11.8, making it among the worlds most complex refineries.


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2.8. YEBHI.COM PLANS TO RAISE MORE FUNDS IN 2013

Sohini Das / Ahmedabad Oct 05, 2012, 13:06

Yebhi.com, a fashion, home and lifestyle e-commerce portal, is eying to raise more funds in2013 to fund its infrastructure expansion plans. The company has recently raised around Rs

100 crore from Fidelity Growth Partners India, Qualcomm Ventures and Catamaran

Ventures.

"We have significantly invested in back-end operations that would support our growth plans.

We plan to increase our manpower count from 700 at present to around 1000 people over the

next fsew months", said Manmohan Agarwal, chief executive officer of Yebhi.com. He

added that the company planned to raise more funds in 2013 for expanding infrastructure, but

did not wish to comment on the quantum of funds that can be raised. "We are yet to take a

call on how much funds we will raise", Agarwal said.

In 2010, the company had raised Rs 10 crore of Series A funding by Nexus Venture Partners,

followed by a second round of funding of Rs 40 crore in 2011 led by N R Narayana Murthy's

CatamaranVentures.

As for business growth plans, Agarwal said that the company's recently launched 'try and

buy' option has received good response. According to the scheme, customers can try a dress

at home while the delivery boy waits. "We had launched the scheme in early August

supported by a television commercial and it has received good traction", he said.

The company is eying close to 250% growth during the current fiscal.


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2.9. XLRI PLANS TO SET UP NEW CAMPUS; ON OVERDRIVE TO

RAISE RS 100 CRORE

Sreeradha D Basu, ET Bureau Aug 14, 2012, 07.30AM IST

KOLKATA: XLRI, Jamshedpur has embarked upon a fund-raising drive with plans to notch

up Rs 100 crore in endowments over the next five years.

The institute is tapping both its alumni and corporates and, along the lines of B-schools

abroad, is open to naming centres or facilities after donors.

So far, the institute has raised around Rs 1.62 crore. HCL Technologies vice-chairman and

CEO Vineet Nayar, an alumni as well as board of governors' member, has also pledged Rs 1

crore in his individual capacity, which will go towards XLRI's proposed Delhi campus.

XLRI director E Abraham said: "We have formed a core committee of alumni who are now

working on how to take the endowment fund initiative forward. This is a common practice

abroad, even in Jesuit schools. We will also be approaching companies that rank among our

major recruiters."

XLRI that was founded in 1949 has so far has been functioning almost entirely on its own

funds. The institute already has a surplus of around Rs 22.5 crore.

The XLRI Endowment Fund initiative was taken up by the 1983 batch when it met in 2008 to

celebrate their silver jubilee of graduating. Earlier this year, the director and S Sarin made

presentations at the summer alumni meets in Delhi, Kolkata, Pune and Mumbai attended by

over 1,500 alumni.

The institute also plans to hold alumni meets in New York, Boston, Toronto, Chicago, San

Francisco and Los Angeles to encourage alumni to give back to the institute.

The funds raised will go towards upgradation of existing physical infrastructure to world-

class standards, creating chair professorships, providing scholarship and loans to needy

students, supporting global research as well as the social initiatives of XLRI in the area of

education for the poor, rural entrepreneurship and the like.
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"A large chunk of this will also go towards our new campus which will come up in Delhi,"

said E Abraham. The new campus is estimated to cost about Rs 50-60 crore. "Besides regular

programmes, it will also offer niche programmes. We have initiated talks with Georgetown

University and plan to set up a School of Foreign Service as well as a School of Public

Policy," said Abraham. XLRI is setting up an international hostel in Jamshedpur for its just-

launched three-country global MBA programme.
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2.10. TATA MOTORS TO RAISE $700 MLN IN SHARE SALE-REPORT

MUMBAI | Wed Aug 18, 2010 11:42pm EDT

Aug 19 (Reuters) - Tata Motors (TAMO.BO) plans to raise $700 million through an issue of

shares with differential voting rights, the DNA newspaper reported on Thursday, citing

industry sources.

Company officials from the leading Indian maker of trucks that also produces the premium

Jaguar and Land Rover brands and the world's cheapest car, the Nano, have made

presentations to foreign investors on the planned offering, it said.

A spokesman for Tata Motors told Reuters: "We already have shareholders approval to raise

about 47 billion rupees ($1 billion) through various instruments. But there is no specific

decision taken by the company."

In 2008, Tata Motors had issued shares with differential voting rights to fund the Jaguar Land

Rover buy, but the issue was undersubscribed and had to be picked up by the founders and

group firms of the Tatas.

The shares, normally issued to minority shareholders to protect the founders, had one-tenth

the voting rights of ordinary shares but holders were entitled to a 5 percent higher dividend.

For full report click on (www.dnaindia.com) ($1=46.5 rupees) (Writing by Janaki Krishnan;

Editing by Ranjit Gangadharan)
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2.11. KINGFISHER PLANS TO RAISE MONEY BY SELLING REAL

ESTATE

MUMBAI--Kingfisher Airlines Ltd. 532747.BY -4.68% on Thursday reiterated its proposal

to sell some of its real estate, including an unused office property in Mumbai, to raise money,

said a spokesman of the financially troubled airline and a senior executive at its biggest

lender.

The airline gave the proposal to its lenders at a meeting.

"We have told Kingfisher to come back to us with a valuation of its non-core assets before we

approve a sale of the same," the bank executive said.

The executive, from State Bank of India, 500112.BY -0.27% didn't want to be named.

Kingfisher confirmed the proposal. Spokesman Prakash Mirpuri, however, refuted local

media reports that the lenders were planning to start recovering their loans.

The bank executive and Mr. Mirpuri didn't say how much funds the airline proposes to raise

through the sale.

Kingfisher had in a presentation to its investors in October said it aimed to raise 900 million

rupees ($16.35 million at current exchange rate) by selling Kingfisher House, its former

office space in Mumbai.

Kingfisher owes millions of dollars to its suppliers, plane-leasing companies, airline partners,

lenders, employees and the government.

The airline recently told its employees that its salary accounts have been frozen by

government authorities. ICICI Bank Ltd. IBN -1.31% recently sold its nearly 4.30 billion

rupees of debt exposure in Kingfisher to SREI Infrastructure Finance Ltd
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VIJAY MALLYA RAISES RS 525 CRORE AGAINST BANGALORE KINGFISHER

TOWERS

Anshul Dhamija, TNN | Oct 2, 2012, 01.47AM IST

BANGALORE: Its official now. Vijay Mallya, chairman of the cash-strapped Kingfisher

Airlines, has turned to his ancestral property Kingfisher Towers-Residences at UB City,

situated in the heart of Bangalore, to raise

In an August 27 filing to the stock exchanges, titled 'audited financial report for March

31,2012', United Breweries Holdings(UBHL), the investment arm of the UB Group and to

which Mallya's ancestral property is attached, stated that "the company has borrowed Rs 525

crore against this property development, and sale proceeds of completed units would be part

utilized to repay such loan".

However, the company did not state from whom and when it raised the money.
http://timesofindia.indiatimes.com/toireporter/author-Anshul-Dhamija.cmshttp://timesofindia.indiatimes.com/toireporter/author-Anshul-Dhamija.cmshttp://timesofindia.indiatimes.com/topic/Vijay-Mallyahttp://timesofindia.indiatimes.com/topic/Vijay-Mallyahttp://economictimes.indiatimes.com/kingfisher-airlines-ltd/stocks/companyid-276.cmshttp://economictimes.indiatimes.com/kingfisher-airlines-ltd/stocks/companyid-276.cmshttp://economictimes.indiatimes.com/kingfisher-airlines-ltd/stocks/companyid-276.cmshttp://timesofindia.indiatimes.com/topic/United-Breweries-Holdingshttp://timesofindia.indiatimes.com/topic/United-Breweries-Holdingshttp://timesofindia.indiatimes.com/topic/United-Breweries-Holdingshttp://economictimes.indiatimes.com/kingfisher-airlines-ltd/stocks/companyid-276.cmshttp://economictimes.indiatimes.com/kingfisher-airlines-ltd/stocks/companyid-276.cmshttp://timesofindia.indiatimes.com/topic/Vijay-Mallyahttp://timesofindia.indiatimes.com/toireporter/author-Anshul-Dhamija.cms


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2.12. TRIMAX RAISES R100CR FROM ADITYA BIRLA CAPITAL

By :Irfan Khan| 13 April 2012

Industry :Technology

Aditya Birla Capital Advisors has invested R100Cr in Mumbai-based Trimax IT

Infrastructure AndServicesLtd.

The deal will see a partial exit for BanyanTree Growth Capital I, which invested in the

company in 2009 for 10% stake. The terms of the deal were not yet disclosed.

Desai and Diwanji were the advisors to Aditya Birla PE Fund.

In 2010, Zephyr Peacock India Fund invested $10 Mn (Rs.45 Cr) in the company for

minority stake.

Promoted by S P Madrecha and C P Madrecha, Trimax offers system integration, data centre

services and IT infrastructure management solutions to the transport sector and government

enterprises.

Company had partnered with BSNL for its managed network services business and with ITI

Limited for the ITI data centre that it has developed in Bangalore and currently operates .

It has partnered with technology providers such as Cisco, HP and Microsoft to offer systems

integration, network rollout and maintenance and cloud computing services to companies .

Aditya Birla Capital Advisors Private Limited is the PE arm of Aditya Birla Group. It closed
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its maiden Fund, Aditya Birla Private Equity - Fund I in March 2010 raising R880Cr and in

Feb 2010, this fund bought 20% stake in Gujarat-based Anupam Industries Ltd for Rs.50cr. It

has invested.

Last Sept, it invested Rs40Cr in New Delhi based water treatment firm - SMS Paryavaran Ltd

from it's second fund - Sunrise Fund. It has announced the first closing of the Sunrise Fund at

R2.2 Bn. The fund will invest on specific themes including lifestyle, lifeskills and education,

lifecare and applied technologies. It also invested Rs95Cr in Aplhion India Private Limited

last Nov

Wed, May 16, 2012 at 10:32


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2.13. VIDEOCON INDS TO RAISE OVER RS 270 CR VIA PVT

PLACEMENT

Diversified business house Videocon Industries said it will raise USD 51.02 million (over Rs

270 crore) through issue of securities on a private placement basis from overseas market.

Diversified business house Videocon Industries said it will

raise USD 51.02 million (over Rs 270 crore) through issue of

securities on a private placement basis from overseas

market.

In a filing to the BSE, the company said it will "issue

1,57,50,000 Global Depository Receipts amounting to USD

51.02 million representing 1,57,50,000 equity shares".

The securities will be issued to LLIC Sarl at a price of USD 3.2395 apiece, equivalent to Rs

174 per equity share, it added.

Videocon, however, did share details why it is raising this money.

"Application will be made for the GDRs to be listed on the Luxembourg Stock Exchange and

for in-principle approval for the issuance of the underlying shares, to be listed on the National

Stock Exchange of India Limited and BSE Ltd," the company said.
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2.14. VIDEOCON TO REFINANCE,RAISE DEBT IN $6 BLN DEAL -

SOURCES

MUMBAI | Fri Aug 3, 2012 10:25pm IST

(Reuters) - Indian consumer electronics maker Videocon Industries (VEDI.NS) plans to

refinance a round $3 billion of debt to cut interest costs and standardise loan terms, five

sources with direct knowledge of the deal said.

The diversified company, which recently made a series of oil and gas discoveries, is also

raising another $3 billion in fresh long-term debt, partly to fund capex requirements for the

energy business, the sources told Reuters on Friday.

As many as 27 banks are involved in the funding arrangement, including India's top lender

State Bank of India (SBI.NS_1">SBI.NS), Punjab National Bank(PNBK.NS) and IDBI Bank

(IDBI.NS).

The first tranche of the deal will be signed next week, while the balance is expected to be

finalised later this month.

Videocon Industries had long-term debt of nearly 273 billion rupees at the end of December

2011.

The group, whose companies and subsidiaries have borrowed from various banks, has

proposed bringing all the loans under a common pool and terms, one of the sources said.

"If the loans are scattered in many places, it makes sense for the borrower to consolidate it. It

will save financing costs," said the source, declining to be identified as the matter is not yetpublic.

The deal will involve some reduction in interest rates for the banks, although loan tenure will

broadly remain the same, another source said.

A Videocon spokesman was not immediately available for comment.

OIL & GAS FOCUS
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Videocon, controlled by billionaire Venugopal Dhoot, operates in the consumer electronics,

telecoms and power segments but expects most future growth to come from its recent focus

on the oil and gas business.

The group holds a 10 percent stake in huge gas fields discovered off the coast of

Mozambique and Tanzania that are estimated to hold between 30 and 60 trillion cubic feet

(tcf) of recoverable gas.

Last month, it also announced discoveries at its Brazilian offshore blocks, where it holds

minority stakes.

Dhoot has said he expects the oil and gas business to contribute 75 percent to group revenues

in future. The blocks are expected to start producing in 2017.

The business, which will require billions of dollars in investment, is to be separated from the

main company.

Videocon's main consumer electronics business has suffered in recent years through stiff

competition from local and foreign rivals including LG (066570.KS) and Samsung

(005930.KS), although it remains a key player in the washing machine, refrigerator and

television segments.

It is investing in a new appliances plant at Tamil Nadu in southern India, which is expected to

start production later this year.

Shares in the company, valued at nearly $1 billion, have traded nearly flat so far in 2012,

underperforming the 11.2 percent gain by the main stock index. The stock closed down 0.6

percent on Friday.

(Editing by Sunil Nair and David Cowell)
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2.15. IRFC RAISES $300 MN THROUGH FOREIGN CURRENCY

BONDS

IRFC's issue was subscribed 12 times, which allowed the company to price the bonds at

280 basis points above the US Treasury (UST) Somasroy Chakraborty / Kolkata Oct 04,

2012, 14:40 IST

The scramble to raise funds from overseas markets is now apparent among Indian

infrastructure companies. Indian Railways Finance Corporation (IRFC) is the latest to join

the bandwagon raising $300 million through dollar denominated five-year bonds.

The reduction in withholding tax rate on infrastructure companies' external commercial

borrowings (ECB) combined with higher borrowing cost locally appear to have convinced

IRFC in raising funds abroad. NTPC was the first company to benefit from lower

withholding tax when it raised $500 million last week through dollar denominated senior

unsecured 10-year bonds. IRFC's issue was subscribed 12 times, which allowed the company

to price the bonds at 280 basis points above the US Treasury (UST), cheaper than its initial

guidance of 310 basis points above the UST. The pricing was also lower than NTPC's offer,

which was at 305 basis pointsabovetheUST.

This way, IRFC's the bonds carry a coupon of 3.417%. "The deal is a great testament of such

strong investor interest in a rare quasi-sovereign Indian credit such as this. A 12 times

oversubscribed order book and 30 basis points tightening from initial guidance to final

outcome is truly a remarkable feat," David Greenbaum, head of debt origination at Deutsche

Bank for South Asia region, said.Deutsche Bank along with Barclays, Citi, JP Morgan and

Bank of America Merrill Lynch managed the issue for this projectof IRFC.

"As a 100% owned primary financing arm of the Ministry of Railways, IRFC is viewed as

one of the closest proxy to India sovereign in the international markets. Additionally, a letter

of undertaking by the Ministry of Railways provided additional comfort and made it a unique

selling proposition, which drew massive investor interest for this trade," Syed Zafar,

managing director for capital markets and treasury solutions at Deutsche Bank in India, said.

Merchant bankers believe that the reduction in effective rate of withholding tax to 5.25%


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from 26.7% is likely to encourage a few more companies in the infrastructure space to exploit

fund raising opportunities abroad. NTPC is already firming up plans to re-visit overseas

markets and plans to raise another $700 million next calendar year.

2.16. SHADY BENGAL COMPANIES RAISE RS 15,000 CRORE

Udit Prasanna Mukherji, TNN Oct 4, 2012, 01.48AM IST

KOLKATA: A preliminary report by the Union corporate affairs ministry has indicated that

as many as 62 shady chit funds based in Bengal have mopped up Rs 15,000 crore from

people over the past three to four years.

The amount is almost double the state's allocation for development in the current fiscal.

In July this year, Union minister of state for corporate affairs R P N Singh said in Rajya

Sabha that the government had directed the Registrar of Companies and its regional directors

to scrutinize the balance sheets and inspect the books of 87 companies under scanner, of

which 19 were from Bengal.


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2.17. VLCC TO RAISE RS 250 CRORE FROM PE TO SUPPORT

ACQUISITIONS

The deal is likely to close in a few weeks

Sounak Mitra / New Delhi Oct 04, 2012, 19:39 IST

Home-grown beauty and wellness chain VLCC expects to raise about Rs 250 crore by selling

a minority stake to private equity (PE) within the next few weeks to support acquisitions in

the south-east Asia, said a company source.The company, which is valued at $400 million, is

in advanced talks with a few PE firms in India and abroad for the fund raise.

Funds raise would be used in capital expenditure and to finance acquisitions, said the

source. JM Financial is advising VLCC in the fund raise. Everstone Capital owns a 15 per

cent stake in VLCC since 2007, while remaining 85 per cent is owned by the promoters.

CLSA, which has a 13.65 per cent stake in VLCC made an exit through management buyout

in 2004.Everstone is likely to stay in the immediate round of funding, but could make a

partial exit depending on the valuation.

VLCC expects to close more than one acquisition in the next six to eight months. It iscurrently evaluating five companies in South-east Asia, Middle East and North Africa. The

first one is expected to be sealed in a few weeks in the wellness space in South- east Asia,

said the source. The company has been trying to acquire wellness companies in Asia during

the past few years, but all its attempts failed.

The company plans to spend about Rs 300 crore for growth over the next 12 months, said the

source. Of this Rs 150 crore would be spend in overseas expansion, he said, adding that

investment could increase depending on size of acquisitions.

VLCC, which operates 180 wellness centres in India and abroad, hopes to increase the

number to about 300 by 2015, said the source. Besides metro cities, the company would

spread wings in tier-II and tier-III cities. Through acquisitions, VLCC targets to expand

presence in 15 countries within two years, from nine at present, said the source.


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Overseas business should contribute about 45 per cent in two years from about 30 per cent at

present, added the source. The company is also in process of establishing a manufacturing

unit in Bangladesh to cater local needs and the Myanmar market.

VLCC is also doing a feasibility study for setting up a manufacturing unit in Bahrin,

pointed out the source. It is also actively exploring Pakistan market.

However, there is no immediate plan for an initial public offering (IPO), though it had

considered the option earlier. This is not the right time for entering the market, said the

source.

In March this year, Everstone Capital has invested up to Rs 100 crore in salon-chain You

Look Great (YLG), in phases, according to media reports. Venture fund Helion Venture

Partners also invested in YLG in two rounds. In October 2010, Enrich Salon raised about $10

million from JM Financials private equity arm. Naturals Beauty Salon India is also

reportedly seeking PE funding in the range of Rs 100 crore


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2.18. V-MART PLANS TO RAISE RS 120 CR VIA IPO

The company is also looking to aggressively expand in the North Eastern region and aims to have a

presence in all the states

Press Trust of India / New Delhi Oct 07, 2012, 13:12 IST

Multi-brand retail chain V-mart plans to raise Rs 120 crore through an initial public offer to

fund its expansion strategy, under which it will almost double its showrooms to 120 outlets

by 2015.

The company is also looking to aggressively expand in the North Eastern region and aims to

have a presence in all the states. To start with, it will open the first outlet in Assam in 2014.

"We have an aggressive expansion plan. We are looking to add 58 stores in 55 new locations by

March 2015 and almost all of these will be opened in smaller Tier II and III cities," V-mart Retail

Chairman and MD Lalit Agarwal told PTI.

The company currently operates 62 outlets at 52 different locations, he added.

"We are planning to invest Rs 180 crore to fund this expansion programme. Out of this, Rs

120 crore in expected to come from the proposed IPO, while rest will be from the internalaccruals," Agarwal said, the company currently has a debt of around Rs 45 crore.

V-mart Retail has already the filed the draft red herring prospectus with the capital market

regulator Sebi and is currently awaiting approval. The company and its private equity

investor Naman Finance and Investment plans to offload a total of 32% stake through the

IPO, Agarwal said.

"Currently, the promoters hold 77% stake in the company and the rest is with Naman

Finance. Post IPO, promoters will have around 58% holding, while Naman will be having

10%," he added.

Talking about its plans in the northeast, Agarwal said the region has huge potential and is still

untapped by any big organised retailer. "We will open our first store in Assam in 2014. We

are targeting four cities -- Guwahati, Tinsukia, Jorhat and Dibrugarh. All of them will come

one after another," he added. In the next phase in 2015, the entire region will be covered and


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the company will open outlets in all other North Eastern states, he added.

"According to our survey, the entire region can have 18 V-mart stores. We have not made the

detailed plan yet. Once we make the plan, then we will be able to share more information,"

Agarwal said, adding usually the sizes of each store varies between 8,000 sq ft and 10,000 sq

ft.

On the hiring front, he said the company will almost double its manpower strength by 2015.

"Currently, we have 2,200 people. We will add another 2,000 people for executing our

expansion plans," he said, adding the average salary of the shop floor employees was about

Rs 4,500 per month.

V-mart Retail operates a chain of departmental stores offering apparels, general merchandise

and kirana goods. It sources the materials directly from small manufacturers.


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2.19. TVS CAPITAL FUNDS RAISES RS 500 CR FOR TOP-UP FUND

Part of this fund has been raised by family offices and HNIs, sponsors and institutions

Shivani Shinde / Mumbai Oct 04, 2012, 15:34 IST

TVS Capital Funds (TCF), the asset manager to TVS Shriram Growth Fund has successfully

raised Rs 500 crore for its top-up Fund 1B. It has taken almost a year for fund to raise this

amount.

Part of this fund has been raised by family offices and HNIs, sponsors and institutions.

This is has been raised fully from domestic capital. Following the fund raise, TVS Capital has

also strengthened its advisory board as well as its professional team.

The company has roped in B. Soundararajan, Founder and Chairman of India s largest

poultry enterprise, Suguna Foods to join the advisory board. TVS Capital Funds has also

roped in Sandeep Kohli, who was MD of YUM! and Anand Sudarshan, who was CEO fo

Manipal Global Education services for six years, as fund advisors.

Gopal Srinivasan, Chairman and MD of TVS Capital, said, With growth in the size of our

fund, these marquee individuals will help us put our capital to work in a discipline and

thoughtful manner so as to generate superior returns for our investors. We welcome

Soundararajan to our eminent Fund Advisory Board and are delighted to gain from the

experience of Sandeep and Anand.

TVS also got on board S. Raghunathan who as more than 25 years of experience with HUL

and Dabur, and Shyamal Lahon who joins as an associate and was previously working with

KPMG corporate finance. D Sundaram, Vice Chairman & Managing Director of TVS

Capital commented "Participation of all individuals who come from different industries will

bring deep insights and ideas, enabling us to make better decisions for our investors. Raghus

addition strengthens the capability of our platform. His experience will ensure best practices

and good governance internally ."


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2.20. SUN PHARMA GETS BOARD NOD TO RAISE UP TO RS 8,000

CR

The proposal would be put for shareholders' approval during the annual general meeting scheduled

on November 8


Drug firm Sun Pharmaceutical Industries today said its board of directors has approved the

proposal to raise up to Rs 8,000 crore. The board has approved raising of funds worth up to

Rs 8,000 crore through domestic or international offerings, Sun Pharmaceuticals said in a

filing to theBSE.

According to the company, the proposal would be put for shareholders' approval during the

annual general meeting scheduled on November 8. The funds would be raised at an

appropriate time "through domestic/international offerings including to Indian or foreign

institutional investors/foreign mutual funds/overseas corporate bodies/foreigners/other

foreign parties/Indian financial institutions/alternative investment funds/qualified institutional

buyers/companies/individuals..."it said.

Shares of Sun Pharmaceutical Industries today closed at Rs 697.60 per scrip on BSE, up

0.72% from its previous close.


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2.21. HPCL TO RAISE $200 MN VIA ECBS

BS Reporter / Sep 19, 2012, 00:35 IST

Oil refiner and marketing company Hindustan Petroleum Corp Ltd (HPCL) is planning to

raise about $ 200 million (Rs 1,080 crore) abroad to fund its capital expenditure.

A top executive at an international bank with presence in India said the state-owned oil

company had sought requests from bankers for its proposed external commercial borrowing

(ECB).

We are planning to raise funds to finance some of our projects. We will be raising a $200 million

five-year loan via ECB shortly, said a senior HPCL official.

Prior to this, HPCL had last September raised a $465 million five-year loan at 165 points

above Libor. Lead managers for the issue were State Bank of India (SBI) along with two

international banksBank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corp.

Another public sector bank official said that in anticipation of a rise in demand for foreign

currency resources, Indian companies have raised over $3.5 billion through bonds and loans.

Indian companies have filed application with the Reserve Bank of India to raise $18.31

billion between January and July, according to the central bank data.


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2.22. CARZ TO RAISE RS 120 CRORE PE FUND

Itishree Samal / Chennai/ Hyderabad Sep 19, 2012, 00:42 IST

CarZ, a Hyderabad-based start-up which is into the multi-brand auto solutions space, islooking at raising Rs 120 crore (around $25 million) private equity investment by February

next year.

We are in discussion with multiple PE investors from India as well as abroad. We may raise

the money from a single investor or multiple investors, Venu Donepudi, co-founder and

managing director of CarZ, told Business Standard.

The company has 16 CarZ outlets across Andhra Pradesh, Karnataka and Kerala. We have

plans to add another 34 outlets with an investment of Rs 45 crore over the next two years

across the southern and western markets including Gujarat, Maharashtra and Tamil Nadu,

he said.

Each of the 1,000-sq yard outlet requires an investment of around Rs 1.2 crore. Part of the

second-round funding will be used for expansion of these outlets and to have a pan-India

presence, he added.

CarZ, which commenced operations in February 2010 from Hyderabad, had raised $5 million

(around Rs 22.5 crore) in a series-A funding from IndoUS Venture partners this year.

The company targets to achieve a turnover of Rs 20 crore by the year- end. We have been

growing at 400 per cent year-on-year, and expect a similar growth to follow in the coming

years, he added.

CarZ on Tuesday entered the Kerala market by opening its first outlet in Kochi, and its 16th

in the country. We plan to open another six outlets in Kerala over the next one year, he said


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2.23. PC JEWELLER OPENS 10 NEW SHOWROOMS WITH

INVESTMENT OF RS 350 CR

New Delhi, Oct 7:

PC Jeweller, which is planning to launch its initial public offer (IPO), has opened 10 new

showrooms in North India at an investment of about Rs 350 crore in the last one year.

In September last year, the Company had filed its draft red herring prospectus (DRHP) with

market regulator SEBI to raise over Rs 500 crore for expansion and working capital

requirement.

PC Jeweller had 20 showrooms across the country at the time of filing the IPO document.

In the last one year, the Company has already added 10 new showrooms to expand its

presence pan-India, sources said.

PC Jeweller has plans to add another 20 showrooms by utilising funds raised through public

offer, they said, adding that the number of showrooms would reach 50 by end of 2013-14

financial year.

Out of ten new showrooms, four are in the national capital, two each in Uttar Pradesh and

Rajasthan and one each in Haryana and Punjab. These ten showrooms are of large format

with a total area of 53,401 sq ft.

The Company spokesperson declined to comment.

PC Jeweller, which offers wide range of products with a focus on diamond jewellery, had

posted a turnover of about Rs 3,000 crore in the 2011-12 fiscal.

At present, diamond jewellery contributes about 30 per cent to the topline and the Company

expects the same to reach at 50 per cent in the next three years.

PC Jeweller got SEBIs nod to launch its IPO, comprising of 45,133,500 shares of Rs 10

each.


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The shares are proposed to be listed on the National Stock Exchange (NSE) and the BSE. The

book running lead managers to the IPO are SBI Capital Markets and Kotak Mahindra Capital

Company and the co-book running lead manager is IDBI Capital Market Services.

2.24. TRAVELYAARI PLANS TO RAISE $10-MN VC FUND

Pradeesh Chandran / Bangalore Sep 27, 2012, 00:50 IST

Bangalore-based online bus ticket booking service provider Travelyaari, part of Mantis

Technologies, plans to raise $10 million (about Rs 55 crore) from venture capital (VC) funds.

It is already in talks with leading VC funds that specialise in the e-commerce segment.

The company plans to use the funds to increase its presence in the eastern parts of the

country. We started operations in Ahmedabad in Gujarat and have significant presence in

the northern and western markets. As part of our growth strategy, we plan to expand our

business in the eastern parts of the country, said Aurvind Lama, co-founder and director,

Travelyaari.

Mantis Technologies had started operations in 2007, launching the Travelyaari website in 2008.

According to Venture Intelligence, so far, the online travel segment in India has recorded

about 27 VC deals, worth $249 million.

We are a product company, and many bus operators are using our platform for running their

operations. With our new strategy, we expect to be the number one online bus booking player

within six months. According to various analyses by us, this market is worth about Rs 20,000

crore and the major portion of it is unorganised, says Lama.

RedBus is the only specialist company in the bus ticketing segment and so far, it has raised

$9.7 million through four rounds of funding from firms such as Helion Ventures, Inventus

Capital and Seedfund.

Travelyaari, which expects to record revenue of about Rs 150 crore by the end of the year,

has a base of 50,000 unique visitors a day. Apart from providing facilities to book bus tickets

online, the company also provides platforms for bus operators. It has tied up with two state

governments---those of Punjab and Himachal Pradesh---to provide platforms for online ticketreservation. Travelyaari has also started selling tickets for Punjab Transport Corporation,


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Himachal Pradesh Tourism Department and the Bihar and Uttar Pradesh state transport

organisations.

2.25. AIR KERALA TO RAISE RS 200 CR AS INITIAL CAPITAL

While 26% shares will be held by the state govt, CIAL and PSUs, the remaining 74% will be held by

shareholders

Press Trust of India / Kochi Sep 14, 2012, 16:50 IST

The proposed state-run airline Air Kerala plans to raise Rs 200 crore through equity as initial

capital, Cochin International Airport Ltd (CIAL) Managing Director V J Kurien said today.

While 26% shares will be held by the state government, CIAL and public sector

undertakings, the remaining 74% will be held by shareholders.

This was decided by board of directors of Air Kerala, which met here under the chairmanship of Chief

Minister Oommen Chandy.

The strength of the board has been raised to eight by co-opting four new members into the

board - Industries Minister P K Kunhalikutty, Finance Minister K M Mani, Information

Minister K C Joseph and Fisheries Minister K Babu.

The four members already in the board were the Chief Minister, prominent businessmen

Yusuf Ali and C V Jacob, and CIAL's Kurien.

"The minimum investment is Rs 10,000 and we are looking at 2,00,000 Keralites to

participate. Our aim is to make it the largest shareholding company," Kurien said.

Discussions had been held with project consultants Ernst & Young, who had prepared the

project report in 2006, to update it within three and half months, he said.

Minister K Babu told PTI the government would take all steps to get clearances from the

Centre.

The Detailed Project Report (DPR) will be updated, he said.


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Kerala has sought speedy approval for launching state-run airline Air Kerala that would

primarily cater to Keralites living in the Gulf region.

Kerala has sought exemptions from rules that require at least five-year experience in

domestic services and a minimum of 20 aircraft to start services.

These norms had been relaxed for Air India Express holding, a subsidiary of Air India,

Chandy said, adding that the same relaxation should be given to Air Kerala.

2.26. SOUTH INDIAN BANK RAISES RS 442 CR THROUGH QIP

BS Reporter / Kochi Sep 12, 2012, 00:54 IST

Thrissur-based South Indian Bank (SIB) has raised equity

capital of Rs 442 crore through qualified institutional

placement (QIP)to support its business growth plans. Carlyle

Ventures Mauritius, a US-based investment group, has

picked up 2.04 per cent of stake in the bank, a press release

from the bank said. The bank informed that the paid-up

capital had increased to Rs 133.5 crore from Rs 113.50 crore.

V A Joseph, managing director and CEO of the bank said through the issue could to have a

growth of 20-25 per cent in business during next two years.

The bank had decided to raise the capital through QIP in this June. The Capital Adequacy ratio will

increase to 15 per cent from the current 13.76 per cent. RBI requires banks to maintain alteast nine

per cent capital adequacy.

Bank will look at raising fresh equity capital in 2014, he said. Besides capital infusion

through placement, Bank would be able to plough back profits in excess of Rs 400 crore,

improving capital adequacy, Joseph said.

SIB had originally planned to raise the capital by Rs 1000 crore in March, but later lowered

to Rs 400-500 crore range.

IFCI has picked a 4.99 per cent for Rs 147 crore while Multiples has bought 5.8 per cent for

Rs 165 crore, a press statement said.


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State Bank of India picked up 0.34 per cent, SBI Life 0.67 per cent and SBI Mutual Fund has

bought 0.85 per cent. Its stock was closed almost flat at Rs 21.50 on Bombay Stock Exchange

on Tuesday.

2.27. APOLLO TYRES TO RAISE RS 800 CR, SEEKS

SHAREHOLDERS NOD


Board approves increasing FII investment limit to 40% from 30% of the paid up capital

In a filing to the BSE, the company said the board also approved increasing the investment

limit of foreign institutional investors to 40% from 30% of the paid up capital.

"The board has decided to seek approval of members through postal ballot (for the fund

raising programme and increasing FII limit)," the filing said.

When contacted, the company declined to comment on where the fund would be utilised.

It is, however, understood that Apollo Tyres may use the fund to support its growth strategy

and expansion in India and abroad.

In August, the company had announced that it would invest Rs 300 crore at its Kalamassery

unit in Kerala in the next two years and make it an export unit for industrial tyres.

Moreover, the company is also in the process of identifying greenfield projects in Eastern

Europe to expand further in the continent.

Shares of Apollo Tyres today closed at Rs 92.15 per scrip on the BSE, down 0.32% from the

previous close.


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2.28. UTTAM SUGAR TO RAISE RS 27 CR VIA RIGHTS ISSUE

Will fund working capital requirement from the proceeds of the issue

Press Trust of India / New Delhi Sep 14, 2012, 16:12 IST

Uttam Sugar Mills today said it will raise Rs 27.21 crore through rights issue to fund

working capital requirement.

The company would issue 1,23,69,120 equity shares at Rs 22 per share, which is lower than

the today's closing price of Rs 24.15 a piece on the BSE.

It would issue 12 equity shares to existing shareholders for every 25 equity shares held by

them on September 7.

The issue would open on September 20 and close on October 4.

"Issue is of 1,23,69,120 equity shares of Rs 10 each at a price of Rs 22 per equity share for

cash aggregating to Rs 27,21,20,640 to the existing shareholders on rights basis in the ratio of

12 equity shares for every 25 equity shares held by the shareholders on the book closure date

i.e. September 7, 2012," Uttam Sugar said in letter of offer.

The objectives of the rights issue are financing the capital contribution margin for additional

working capital and repayment of interest free unsecured loan temporarily taken from

promoters to fund margin for additional working capital.

"Our company intends to deploy the net proceeds of the issue mainly to finance a portion of

working capital gap in terms of CDR approved scheme, a part of which has been temporarily

financed through interest free unsecured loan received from promoters which shall also berepaid out of the issue proceeds," it said.

The company would utilise Rs 19.89 crore in long term working capital gap and Rs 6.75

crore in repayment of interest free temporary unsecured loan.

Uttam Sugar Mills has four plants with a total installed crushing capacity of 23,750 tonne per

day.

Promoters have 78.07% stake in the company as on June 30, 2012.


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The company had posted a net loss of nearly Rs 70 crore on a total income of Rs 685 crore in

2011-12 fiscal.

2.29. ESSEL PLANS TO RAISE $500 MN TO FUND GROWTH OF ITS

COMPANIES: BLOOMBERG

Indiantelevision.com Team

(11 September 2012 10:18 pm)

NEW DELHI: Media baron Subhash Chandras Essel Group is understood to be seeking to

raise as much as $500 million to fund expansion and pay debt at some of its companies.

The group may use the funds for DTH service provider Dish TV India Ltd, multi-system

operator (MSO) Siti Cable Network Ltd. and schools operator Zee Learn Ltd, according to

sources quoted by Bloomberg.

Essel joins Indian media companies including Network 18 Group and Living Media India

Pvt. in seeking capital. It is understood that Essel has approached private equity firms for this

purpose.

Dish TV, Indias biggest provider of DTH services, and Siti Cable are expanding as the

nation makes digital television services mandatory. Advertisement and subscription revenue

is forecast by G2Mi Research to increase 87 per cent by 2015.

There is a heightened interest among investors in two media segments, broadcaster and

cable companies, owing to a structural change thats anticipated in the country through

digitization, Vivekanand Subbaraman, an analyst at MF Global Sify Securities India in

Mumbai, told Bloomberg.

Essel is not in active dialogue with buyout firms, said Himanshu Mody, group head for

finance and strategy, in an interview to Bloomberg. We from time to time keep raising

expansion capital for various entities within the group.

According to the report, the money raised will not be used for Zee Entertainment Enterprises

Ltd., Essels largest publicly traded unit. With a market capitalisation of 164.3 billion rupees


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($3 billion), Zee Entertainment had 3.3 billion rupees in cash at the end of March, data

compiled by Bloomberg showed.

Apart from its television business, Essel manages firms that build roads, runs a newspaper

and makes packaging for toothpaste and food companies.

Dish TV had total debt of 12.1 billion rupees as of March 31 and Siti Cable, which sells cable

services to about 10 million households in India, had 3.5 billion rupees of debt at the time,

data compiled by Bloomberg show.

Siti Cable plans to raise Rs 3.2 billion selling warrants convertible into equity to its owners

including Essel.

2.30. ABG SHIPYARD TO RAISE RS 1000 CRORE TO FUND

EXPANSION PLANS

Manu Balachandran, ET Bureau Sep 21, 2012, 08.04PM I

ABG Shipyard, the country's largest private sector shipyard, may raise Rs 1,000 crore to fund

its expansion and working capital needs.

In a report to shareholders, ABG shipyard said that the company would raise the money in

one or more tranches through a public issue, a private placement or QIP. "Taking into

account the performance and positive outlook of the company, the company proposes to raise

long term capital by issue of further securities to cater its fund requirements for expansion of

activities, finance, additional working capital and general corporate purpose," the report said

ABG Shipyard has orders over Rs 16,000 crore and debt of about Rs 2,300 crore. Itsexpansion plans include setting up a shipyard in Nigeria. In 2010, ABG had acquired a

controlling stake in the Goa based Western India Shipyard and was an unsuccessful bidder in

the public battle to gain control over Great Offshore.

The global economic downturn and the withdrawal of a special subsidy has affected the

fortunes of the local shipbuilding industry. A recent government proposal to allow defence

shipyards to team up with the private sector companies is expected to boost revenue and

orders though there is little clarity about the quantum of benefit.
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ABG shares have fallen more than 24% since January this year, compared with an over 30%

fall for its rivalBharati Shipyard. On Friday, ABG shares rose 3.5% to Rs 348.55.

Fri, Oct 05, 2012 at 18:52

2.31. IOC RAISES 400M SINGAPORE DOLLAR LOAN

State-owned Indian Oil Corp today it has it has raised 400 million Singapore dollar loan at

very competitive rates.

State-ownedIndian Oil Corp(IOC)today it has it has raised 400 million Singapore dollar loan at very

competitiverates.

IOC sold 10-year bonds denominated in Singapore dollars (SGD) to raise SGD 400 million

(USD 326 million). It priced the notes to yield 4.1 percent, better than 5.625 percent the

company had paid for a similar-dated US currency debt in 2011.

"IOC became the first Indian corporate to successfully price long-term bonds denominated in

Singapore dollars (SGD)," a company press statement said.

Indian corporates are tapping overseas debt market after the government slashed a tax on

foreign borrowing. IOC Director (Finance) P K Goyal said considering the overwhelming

response from investors in terms of tight pricing and substantially oversubscribed book, the

issue size was increased to SGD 400 million from the originally planned SGD 300 million.

"This benchmark deal has achieved many milestones, being the largest SGD offering by any

foreign corporate issuer this year, the largest ever SGD issuance by an Indian issuer and the

longest tenor senior note in SGD market by a foreign issuer this year," he said.

IOC said the book building for deal was announced yesterday on the back of a highly

successful one day road show in Singapore, which was attended by over 50 prospective

investors including private banks, fund managers and banks."The announcement saw orders

to the tune of SGD 300 million within half an hour," it said. " Based on the overwhelming

response at initial stage, investors started pouring in and by 4.00 pm the book had already

touched the SGD

3 billion mark i.e. 7.5 times of the SGD 400 million, the amount finally retained by IOC."
http://economictimes.indiatimes.com/bharati-shipyard-ltd/stocks/companyid-15879.cmshttp://economictimes.indiatimes.com/bharati-shipyard-ltd/stocks/companyid-15879.cmshttp://economictimes.indiatimes.com/bharati-shipyard-ltd/stocks/companyid-15879.cmshttp://www.moneycontrol.com/india/stockpricequote/refineries/indian-oil-corporation/IOChttp://www.moneycontrol.com/india/stockpricequote/refineries/indian-oil-corporation/IOChttp://www.moneycontrol.com/india/stockpricequote/refineries/indian-oil-corporation/IOChttp://www.moneycontrol.com/india/stockpricequote/refineries/indian-oil-corporation/IOChttp://economictimes.indiatimes.com/bharati-shipyard-ltd/stocks/companyid-15879.cms


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The book consisted of orders from over 100 investors and the profile included fund managers

(22 percent), banks (18 percent) and private banks (60 percent). In terms of geography, 75

percent orders came from Singapore and 25 percent from rest of Asia, IOC said.

"The overwhelming response to IOC's SGD bonds has not only reconfirmed the confidence

of international investors in the credit credentials of the company but has also paved the way

for other Indian corporates to tap Singapore market for

their long term financing needs," the statement added.

2.32. CENTRAL BANK OF INDIA TO RAISE MIN 2 BLN RUPEES VIA

PERP BONDS

MUMBAI, Sept 26 | Wed Sep 26, 2012 12:26pm IST

(Reuters) - The Central Bank of India is planning to borrow at least 2 billion rupees ($37.41

million) via perpetual bond at 9.40 percent coupon, two sources with knowledge of the deal

said on Wednesday.

Darashaw & Company, A.K.Capital,SBICapital and Trust Capital are some of the arrangers

to the deal, they said.

The bank is planning to raise funds through perpetual bonds as they are considered quasi-

equity, giving much-needed support to its tier 1 capital ratio, the sources said.

The perpetual bond has a call option at the end of the 10th year.

The issue is rated AA+ by Crisil and AA by Brickworks. ($1 = 53.4550 Indian rupees)

(Reporting by Archana Narayanan; Editing by Jijo Jacob)
http://in.reuters.com/finance/stocks/overview?symbol=SBI.BO&exchange=INBhttp://in.reuters.com/finance/stocks/overview?symbol=SBI.BO&exchange=INBhttp://in.reuters.com/finance/stocks/overview?symbol=SBI.BO&exchange=INBhttp://in.reuters.com/finance/stocks/overview?symbol=SBI.BO&exchange=INB


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CONCLUSION

Financial resource planning is important decision for company because of the main question

is m- power without this the new project is not start. There are some various sources of

finance from the point of view period.

The mainly two types of source

1. Long term sources

2. Short term source

Details in long term and short term source Short term sources of finance:

o Bank overdrafto Trade Credito Leasingo Bank loanso Credit cards

Long term sources of finance:o Bank loanso Share capitalo Debentureso Asset saleso Venture capitalo Retained profito Owners' capitalo Government, local authority or EU grants


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MAIN POINT OF VIEW CONCLUSION

Most of the firms use the bond sources because of long period as well as low interestrate & not sharing of profit.

Some firms uses the source of equity share because of when return is very low & freefrom the interests and long period.

Some of the firms uses short term debt because of needs of money is short termperiods and saving taxes because of less interest.

Some of the uses the source of private issue because of no procedure required andeasily gets it.

Some of the firm uses option is venture capital its differ sources its also benefited forthe company.

Here the main problem id debt or equity what you preferred as per your needs and as per your

risk of business & profitability of business, nature of business, management, and also various

factor affect to taking the decision of choosing the source.


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PART -2

DIVIDEND DECISION


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1 INTRODUCTION OF DIVIDEND DECISION

A business organization always aims at earning profits. The utilization of profits earned

Is a significant financial decision. The main issue here is whether the profits should be

Used by the owner(s) or retained and reinvested in the business itself. This decision

Does not involve any problem is so far as the sole proprietary business is concerned. In

Case of a partnership the agreement often provides for the basis of distribution of profits

Among partners. The decision-making is somewhat complex in the case of joint stock

Companies.

Since company is an artificial person, the decision regarding utilization ofprofits rests

With a group of people, namely the board of directors. As in any other types of

Organization, the disposal of net earnings of a company involves either their retention

In the business or their distribution to the owners (i.e., shareholders) in the form of

Dividend or both. Yet the decision regarding distribution of disposable earnings to the

Shareholders are a significant one. The decision may mean a higher income, lower

Income or no income at all to the shareholders. Besides affecting the mood of the

Present shareholders, dividend may also influence the mood, behavior and responses

Of prospective investors, stock exchanges and financial institutions because of its

Relationship with the worth of the company, which in turn affects the market value of

Its shares. The decision regarding dividend is taken by the Board ofDirectors and is

Then recommended to the shareholders for their formal approval in the annual general

Meeting of the company. Disposal of profits in the form of dividends can become a

Controversial-issue because of conflicting interests of various parties like the directors,

Employees, shareholders, debenture holders, lending institutions, etc. Even among the

Shareholders there may be conflicts as they may belong to different income groups.

While some may be interested in regular income, others may be interested in capitalAppreciation and capital gains. Hence, formulation of dividend policy is a complex

Decision. It needs careful consideration of various factors. One thing, however, stands

Out. Instead of an ad hoc approach, it is more desirable to follow a reasonably long-

Term policy regarding dividends.


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FORMS OF DIVIDEND

Dividend ordinarily is a distribution of profits earned by a joint stock company among its

shareholders. Mostly dividends are paid in cash, but there are also other forms such as Scrip

dividends, Debenture dividends, Stock dividends, and, in unusual circumstances, Property

dividends. These are briefly described below:

Scrip Dividends

Dividends can be paid only out of profits earned in the particular year or in the past reflected

in the company's accumulated reserves. Profits do not necessarily mean-adequate cash toenable payment of cash dividends: In case the company does not have a comfortable cash

position it may issue promissory notes payable in a few months. It may also issue convertible

dividend warrants redeemable in a few years.

Debenture Dividends

Companies may also issue debentures in lieu of dividends to their shareholders. These

debentures bear interest and are payable after a prescribed period. It is just like creating a

long-term debt. Such a practice is not common.

Bonus Shares or Stock Dividends

Instead of paying dividends out of accumulated reserves, the latter may be capitalized by

issue of bonus shares to the shareholders. Thus, while the funds continue to remain with the

company; the shareholders acquire the right and this way their market-able equity increases.

They can either retain their bonus shares and thus be entitled to increased total dividend or

can sell their bonus shares and realise cash. Ordinarily, bonus shares are not issued in lieu of

dividends. They are periodically issued by prosperous companies in addition to usual

dividends, Certain guidelines, as laid down by the government, are applicable for issue of

bonus shares in India.


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Property Dividends

This form of dividend is unusual. Such dividend may be in the form of inventory or securities

in lieu of cash payment. A company sometimes may hold shares of other companies, e.g., its

subsidiaries that it may like to distribute among its own shareholders, instead of paying

dividend in cash. In case the company sells these shares it may have to pay capital gains,

which may be subject to taxation. If these shares are transferred to its shareholders, there is

no tax liability.

DIVIDEND POLICY

The objective of corporate management usually is the maximization of the market value of

the enterprise i.e., its wealth. The market value of common stock of a company is influencedby its policy regarding allocation of net earnings into `plough back' and `payout'. While

maximizing the market value of shares, the dividend policy should be so oriented as to satisfy

the interests of the existing shareholders as well as to attract the potential investors. Thus, the

aim should be to maximize the present value of future dividends and the appreciation in the

market price of shares.

Policy OptionsDividend policy refers to the policy that the management formulates in regard to earnings for

distribution as dividend among shareholders. It is not merely concerned with dividends to be

paid in one year, but is concerned with the continuous course of action to be followed over a

period of several years. Dividend decision involves dealing with several questions, such as:

Whether dividend should be paid right from the initial year of operation i.e.,regulardividends.

Whether equal amount or a fixed percentage of dividend be paid every year,irrespective of the quantum of earnings as in case of preference shares, i.e. stable,

dividends.

Whether a fixed percentage of total earnings be paid as dividend which would meanvarying amount of dividend per share every year, depending on the quantum of

earnings and number of ordinary shares in that year, i.e., a fixed payout ratio.

Whether the dividend be paid in cash or in the form of shares of other companies heldby it or by converting (accumulated) retained earnings into bonus shares, i.e.,property dividend or bonus share dividend.


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Dividend Policy Goals

There are several factors, which influence the determination of the dividend policy. As such

no two companies may follow exactly similar dividend policies. The dividend policy has to

be tailored to the particular circumstances of the company. However, the following aspects

have general applicability:

Dividend policy should be analyzed in terms of its effect on the value of the company.

Investment by the company in new profitable opportunities creates value and when acompany foregoes an attractive investment, shareholders incur an opportunity loss.

Dividend, investment and financing decisions are interdependent and there is often a tradeoff.

Dividend decision should not be treated as a short run residual decision because 'variability of annual earnings may cause even a zero dividend in a particular year. This

may have serious repercussions for the company and may resul

Financial Resource Planning

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