Indian companies flush with Euro issue funds continue to post hefty returns on their investments in the primary market by entering into buyback arrangements with brokers for select issues. This activity has peaked now, with a few companies aggressively hawking their holdings in the new issues to small finance companies and stock brokers. Increasingly, more companies making investments in primary issues are striking deals with brokers at the time of the issue to transfer their allotment at a pre-determined rate of return or premium.

Shaw Wallace joins race for Union Carbide

The bids to acquire 50.9 per cent stake of Union Carbide Chemicals and Plastics, US, in Union Carbide India Ltd (UCDL) have gained a new dimension with the Dubai-based NRI, Mr. Manu Chhabria, joining the fray. The bidder, on behalf of Mr. Chhabria, is his Indian flagship, Shaw Wallace and Company. Shaw Wallace recently submitted its bid to the Escrow agents SBI Capital Markets and Credit Capital Finance Corporation nominated by the Supreme Court to find a suitable buyer for the entire foreign stake in UCIL.

Single-digit inflation by Sept: Montek

The Government is confident of bringing back the inflation rate to single-digit level by September through tighter control on fiscal deficit and reduction in money supply. This was indicated by the Finance Secretary, Dr. Montek Singh Ahluwalia, who said the Government’s efforts had already yielded results with the fall in prices of sugar and cement in the last one week. He told PTI that the uncontrolled increase in foreign exchange reserves would lead to excess monetary expansion and this was not a serious problem thus far.

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