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Sterling Cellular plans Rs 500 cr core bonds with Rs 100 cr greenshoe option
Sterling Cellular, the cellular services operator for Delhi, will tap the market shortly with a Rs 500-crore infrastructure bond issue that has a greenshoe option of Rs 100 crore. Three types of bonds will be offered through the private placement route, bearing coupon rates of 9.75%, 10.25% and 10.50%. Infrastructure bonds are tax-free. The promoters of the company are currently in talks with the Union Bank of India (UBS) to stand guarantor for the issue.
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SBI MF plans to enter UTI turf, to assure returns on entire span
The SBI Mutual Fund is planning to give Unit Trust of India (UTI) a run for its money in the monthly income scheme segment. The fund is likely to come out with a plan to offer assured returns for the entire life of its forthcoming closed-ended income scheme. The scheme is offering an assurance for the safety of the principal as well.
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Hike in bank rate puts IOC, IRFC private-placement issues in a jeopardy
The private placement of bonds by IOC, IRFC and IREDA has run into rough weather after RBI's decision to hike the bank rate. The book-building process for these issues has been affected as institutional investors have withdrawn commitments made to the book-runners on the ground that the indicative coupon is no longer relevant. With short and medium-term interest rates going up, institutions want to wait and watch till things stabilise before committing themselves.
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Sebi mulls categorisation of plantation schemes
The panel appointed by the Securities and Exchange Board of India (Sebi) to frame regulations for plantation schemes is planning to segregate the schemes into deposit and collective investment schemes. A fact-finding round conducted by Sebi has revealed that these companies are not operating on purely collective investment schemes.
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