The Hindu Business Line : Corporate developments

Coimbatore, March 25 Cholamandalam DBS Finance Ltd’s board of directors has approved the issue of short-term non-convertible debentures up to an amount of Rs 4,500 crore on private placement basis to various investors or other agencies.

City Union Bank Ltd has informed that with regard to its proposal to raise further equity capital through qualified institutional placement (QIP)/preferential allotment and introduce employee stock option scheme, the bank has received from the Reserve Bank of India its in-principle approval/no objection on March 25. A meeting of the board of directors will be held on March 28 to discuss and decide the further course of action based on the reply received from the RBI.

Grasim Industries Ltd, which had approved the sale of its entire holding of 75,816,681 equity shares representing 53.63 per cent of the capital of Shree Digvijay Cement Company Ltd to CIMPOR Inversiones S.A., Spain, has informed that with the completion of the sale on March 25, SDCCL has ceased to be a subsidiary of the company.

Tata Teleservices Maharashtra Ltd has crossed the 5-million subscribers mark during March. The company has also announced that its special new offering — ‘Lifetime Go One’ recharge — is attracting excellent traction in the market. The highly competitive tariff offered with this product, including lifetime free incoming, local calls at Re 1, and STD calls at Rs 2, has become a major draw for subscribers.

Vardhman Textiles Ltd has informed that the company has signed a joint venture agreement on March 24 with American & Efird Inc (A&E), a subsidiary of Ruddick Corporation, US to manufacture, distribute and sell sewing thread for industrial and consumer markets in India and for exports to other countries. The joint venture will be implemented by Vardhman Yarns and Threads Ltd (VYTL), a subsidiary of Vardhman Textiles Ltd. This joint venture agreement envisages A&E’s participation in equity, initially to the extent of 35 per cent of paid-up equity share capital with an option to increase its share in equity up to 49 per cent within the next five years. The joint venture will come into effect after the board of VYTL allots shares to A&E and to the company after fulfilment of specified conditions and completion of obligations by the parties to the agreement, expected during April 2008.