Idea Cellular EGM approves preferential issue at Rs 146.96

Idea Cellular Ltd has announced that the shareholders at the Extra Ordinary General Meeting (EGM) of the Company held on July 30, 2008, inter alia, have overwhelmingly approved the Issue and allotment of 464,734,670 Equity Shares of Rs 10/- each for cash at a price of Rs 146.96 on Preferential basis.The Board also approved the deployment of un-utilized portion of the money raised through Initial Public Offering (IPO) towards purposes in addition to those mentioned in the Prospectus for the IPO.

Max India ups stake in JV to 74%

Max India Ltd has announced that the Company has restructured its joint venture arrangements with New York Life International, LLC ("NYLI") by executing an amended and restated joint venture agreement ("Amended JVA") on July 15, 2008 amending the existing joint venture agreement dated November 03, 1999, as amended by Amendment No 1 dated April 21, 2000 and Amendment No 2 dated May 20, 2003 ("Original JVA") in respect of Max New York Life Insurance Company Ltd ("MNYL"). The Original JVA has been replaced and substituted by the Amended JVA.In terms of the Amended JVA, NYLI has the right to increase its shareholding in MNYL, if permitted by applicable laws, by upto 24% of the issued and paid up capital of MNYL ("Option"). The said Option is available to NYLI for a period of 8 years from the date of the Amended JVA and priced on a fair market value based formula less discount of 10%, as against an earlier preferential formula.The stock closed the day at Rs.170.25, up by Rs.15.15 or 9.77%. The stock hit an intraday high of Rs.173.80 and low of Rs.160.The total traded quantity was 92604 compared to 2 week average of 29113.

Tata Motors to raise Rs 7200 Crores through Rights Issue

The Board of Directors of Tata Motors Ltd at its meeting held on May 28, 2008, inter alia, has decided to raise an amount of about Rs 7,200 crores through three simultaneous but unlinked Rights Issues.

The company is planning to for a Rights Issue of Equity Shares upto Rs 2,200 crores.

A Rights Issue of 'A' Equity Shares carrying differential voting rights (1 vote for every 10 'A' Equity Shares) upto Rs 2,000 crores.

A Rights Issue of 5-year 0.5% Convertible Preference Shares (CCPs) upto Rs 3000 crores, optionally convertible into 'A' Equity Shares after 3 years but before 5 years from the date of allotment.

In view of the normal time taken to complete the procedures and documentation involved in making Rights Issues, the precise terms of the above issues (e.g. ratios on which these securities would be offered, the offer price and the conversion price of the CCPs) will be decided when the issues are ready to be made. The issues are subject to such approvals and clearances as may be required and may undergo some changes during this process.

On completion of the above Rights Issues, it is also proposed, as already announced earlier, to raise about $ 500/600 million through an appropriate issue of securities in the foreign markets on terms to be decided at that time.

On the above basis, it is presently estimated that the total equity capital of the company would increase by only about 30% to 35% through these issues during the current financial year. The incremental dividend on this increased capital would represent about 10% of the Company's net profit for the Financial Year 2007-08. If the CCPs are converted between 2011 and 2013, the equity capital would then increase by only about 12% at that time, depending on the conversion price and if not converted, the CCPs would be redeemed (with the back-ended premium) in 2013.

The above fund raising proposals will be mainly used for financing the Jaguar-Land Rover acquisition (through a wholly-owned subsidiary of Tata Motors in the UK) which is expected to be completed shortly at an acquisition price of US $2.3 billion. Though the initial acquisition cost will be financed through. bridging loans provided by a syndicate of banks, these bans would be fully repaid through the above mentioned capital raising schemes.