january 22, 1995

The Unit Trust of India (UTI) has struck a major bought-out deal with the State Industrial and Investment Corporation of Maharashtra (SICOM) involving a pay-out of Rs 120 crore. The deal implies the proposed public offer of the corporation will be put off for quite some time. The Empowered Committee of the Maharashtra Government approved this offer from India's biggest institutional investor today. SICOM had decided to place its equity with UTI following the poor sentiment in the stock market. According to the deal, UTI will pay Rs. 120 crores for 1.5 lakh shares which constitute 25 per cent of the equity of SICOM.

Four cos plan to withdraw bids

The radio paging tendering process for the 18 State circles has reached an impasse with four companies — ABC Communications, Telesystems, Easycall and Matrix — reported to be contemplating withdrawal of their bids. This is stated by 11 other unsuccessful bidders in a letter to the Chairman of the DoT. Their letter was in response to an invitation from DoT for.a counter-offer to the one made earlier. Such a counter-offer was a part of the tendering process after the initial bids are opened and prices quoted by the bidders are circulated to each one of them.

New scheme for capital goods import on anvil

The Government is chalking out a new scheme to facilitate duty-free import of capital goods by exporting companies for capital-intensive projects. Designed on the lines of the EPCG (Export Promotion; Capital Goods) Scheme, the scheme will be applicable only for import of capital goods worth Rs. 25 crores. The mandatory export obligation under the new scheme will be six times the value of imported goods in seven years, the Director General of Foreign Trade, Dr. P. L. Sanjeev Reddy, said.

Related Topics
comment COMMENT NOW