Banks, MFs stuck with ‘junk’ CRB Caps

A number of banks and mutual funds are stuck with what securities market circles would call as ‘junk’ shares of CRB Capital Markets that they bought as allotees in the company’s private placement efforts. As these banks and other institutional investors are increasingly regretting to note, CRB Caps has left an interesting trail of private placements and firm allotments behind it. Beginning with 1994-95, the company made a private placement of nearly 55 lakh equity shares, each at a huge premium of Rs. 128, to raise Rs. 75.65 crores from various banks and mutual funds.

Tisco net drops 17%, to pay 45%

Tata Iron & Steel Company Ltd. (Tisco) has reported a 17 per cent drop in its net profit for the year ended March 31, 1997, at Rs. 469.21 crores against Rs. 565.79 crores in the previous year. The Tisco Board has recommended a dividend of 45 per cent for the year. The effective cost of-the dividend to the company will be 49.5 per cent and the outgo on this account will be Rs. 182.23 crores, amounting to 38.44 per cent of the profit after tax.

ICICI Banking Corpn. IPO in Aug.-Sept.

The ICICI Banking Corporation, a wholly owned subsidiary of ICICI Ltd., plans to enter the capital market between August and September with an initial public offering of Rs. 41 crores at a premium of Rs. 25 per share. The bank has filed the draft prospectus of its IPO with the Securities and Exchange Board of India (SEBI). Official sources said the ICICI bank was awaiting the RBI’s permission for diluting only 25 per cent of the promoters’ holding before filing the prospectus with SEBI. The bank expects to receive SEBI clearance early next month. The issue will be lead-managed by Kotak Mahindra Ltd.