SEBI considering tightening capital utilisation norms

The Securities & Exchange Board of India (SEBI) is likely to tighten norms on capital utilisation by the listed companies.

“We are seriously considering stipulating that the capital raised should only be used for the stated purpose”, S Raman, whole-time member of SEBI, said while speaking at a seminar on financial management for small and medium enterprises organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here on Monday.

Observing that the diversion of funds for purposes other than the stated reasons was on the rise, he said, "I came across a case in which Rs 120 crore capital raised by it was eaten up for the wrong purposes".

Stating that the market had undergone significant positive developments since 1991, he said capital was now costlier for those who did not have a good record.

C V R Rajendran, Chairman and Managing Director, Andhra Bank said SMEs would stand to gain if they go public. “This will improve debt-equity ratios and valuations, besides fetching higher valuations”, he said.

Claris Lifesciences Q4 profit declines 29.50% to Rs 17.75cr

Sterile injectables manufacturer  Claris Lifesciences  reported a 29.50 per cent decline in consolidated net profit to Rs 17.75 crore for the quarter ended on December 31, 2013. 

 Net sales during the quarter under review stood at Rs 144.42 crore as against Rs 193.58 crore in the same period last fiscal, Claris Lifesciences said in a filing to BSE. Its consolidated net sales also declined to Rs 658.37 crore in 2013 from Rs 762.72 crore in 2012 fiscal. 

For the year 2013, consolidated net profit was Rs 84.40 crore as against Rs 103.91 crore in the previous fiscal. The company had posted a consolidated net profit of Rs 25.18 crore in the October-December quarter in the last fiscal.

Shares of the company closed at Rs 180.85 per scrip at BSE, up 0.28 from its previous close. 

AstraZeneca Pharma up 20% ahead of board meet for delisting

Shares of  AstraZeneca Pharma are locked at 20 percent upper circuit on Monday after the board members said it would consider parent's delisting offer on March 5. 
"The board of directors of the company has, on March 01, received a letter from promoter AstraZeneca Pharmaceuticals AB (AZP AB) Sweden, proposing to make a voluntary delisting offer to the public shareholders of the company. The offer is with a view to delist the equity shares of the company from BSE, National Stock Exchange of India and Bangalore Stock Exchange," the company said in its filing. 
AZP AB holds 1,87,50,000 equity shares representing 75 percent of the total paid-up share capital of AstraZeneca Pharma.
 After this letter, a meeting of the board of the company has been scheduled on March 05, 2014 to consider the delisting proposal and matters incidental hereto. 
AZP AB in its letter said, "We have requested the board of the company to convene a meeting of the board to consider and approve the delisting proposal, and take requisite steps to obtain the prior approval of the shareholders to the delisting proposal by a special resolution passed through postal ballot as per the delisting regulations." 
Meanwhile, AstraZeneca Pharma had reported a profit of Rs 1.52 crore during October-December quarter as against loss of Rs 17.7 crore in a year-ago period. Net sales from operations during the same period increased to Rs 118.9 crore from Rs 105 crore.
 At 09:30 hours IST, the stock was trading at Rs 1,110.90, a 52-week high. There were pending buy orders of 25,637 shares, with no sellers available. It rallied nearly 47 percent in last one month.