The government on Monday fixed the issue price of state-owned Shipping Corporation (SCI) follow-on offer at `140 a share that will help raise around `1,160 crore, a part of which would be used to fund the company’s entry into the ports business. Sources said the government’s share from the issue would be to the tune of `580-583 crore, or half of the issue size. The government has diluted 10 per cent stake in Shipping Corporation, the largest Indian shipping company that accounts for a third of the country’s tonnage, while the company has issued fresh equity equivalent to 10 per cent of the paid-up capital through the FPO.
Exim Bank in deal with Sri Lanka
Export-Import Bank of India (Exim Bank) has extended a Line of Credit (LOC) of $416.4 million to the government of Sri Lanka, to finance track laying by IRCON on different sectors in the island nation. Exim Bank will reimburse 100 per cent of the contract value to the Indian exporters, up front upon the shipment of goods. The LOC will be used
for financing at least 85 per cent of the total contract value through sourcing of goods and services from India. Major export items from India to Sri Lanka are petroleum products, transport equipment, cotton yarn fabrics, sugar and pharmaceutical.
Wipro-GE JV eyes expansion
Wipro GE Healthcare — a joint venture between Wipro and GE’s healthcare business — plans to roll out at least 100 “cost-effective” health care equipment in the country over the next five years. “We are committed to launching cost-effective medical gadgets, and are looking at 100 such products before 2015. The price of these gadgets would be 25 per cent lower than that of other brands,” GM-monitoring solutions, Wipro GE Healthcare, Mr R. R. Balaji, said. The equipment will include products for pediatric cardiology care, diagnostic systems for cancer, baby-warmer-cum-incubator, and two X-ray systems of high frequency and minimised radiation exposure.
Mahindra Finance to raise capital
To meet the high level of demand coming in mostly from rural India, Mahindra & Mahindra Financial Services (Mahindra Finance) plans to raise up to `570 crore through institutional placement of equities by mid-January, a top company official said on Monday. The non-banking finance company and the financial services arm of utility vehicle-maker, Mahindra and Mahindra, has already received the board’s nod. “We will start the fund-raising exercise by mid-January. We plan to raise up to `570 crore through a QIP to fuel our expansion plans over the next two-years and increase our capex to `190 crore from the present `160 crore.