Business Updates: SME IPO rules strict; Godrej Consumer will increase soap prices due to palm oil becoming expensive
New Delhi| SEBI has tightened the rules for launching IPOs for small and medium industries (SMEs). According to the new rule, the operating profit of the companies bringing the issue should be at least Rs 1 crore in two out of the last three financial years. Also, under Offer for Sale, promoters cannot sell more than 20 per cent. SEBI said in the circular, the minimum application size for SME IPO has been increased to two lots. Seller shareholders will not be allowed to sell more than 50 per cent of their existing stake. The purpose of tightening the rules is to give SMEs with a good track record the opportunity to raise funds while protecting the interests of investors. According to the circular, companies launching IPOs will also have to provide QR codes for publishing announcements in newspapers and easy access to the draft. The amount allocated for general corporate purpose in SME IPOs has been capped at 15 per cent of the total issue size or Rs 10 crore, whichever is lower. Repayment of loan will not be allowed from the income received from the issue.
Godrej Consumer will increase the prices of soap due to palm oil becoming expensive
Godrej Consumer Products has announced to increase the prices of soap amid the increase in palm oil prices. The increase in prices will be gradual. The company said, due to the cost of palm oil, its margins are being affected. Palm oil prices have risen sharply in recent months due to floods in top producers Indonesia and Malaysia. Due to this, FMCG companies manufacturing consumer goods have been forced to increase the prices of products. Sudhir Sitapati, chief executive officer (CEO), Godrej Consumer, said, we have not yet recovered the full amount of the cost. It will take two-three quarters to increase margins. However, the company will not increase the price suddenly.
Rupee weakened by 36 paise, biggest fall in a month
The rupee fell 36 paise to close at 87.31 against the dollar on Monday. This is the biggest fall in the rupee in a month. Earlier on 5 February, the rupee had registered a big fall of 39 paise. The domestic currency depreciated due to continuing duty uncertainties around the world, capital outflows from foreign investors and volatile crude prices. The weak US currency failed to support the rupee, forex traders said. The rupee opened weakly at 87.24 in the interbank foreign exchange market. At one point during trading, the day had fallen to a low of 87.36.
Anti-dumping duty on water treatment chemicals
India has imposed an anti-dumping duty of up to $986 per tone for five years on trichloro isocyanic acid used in water treatment imported from China and Japan. This step has been taken to protect the domestic industry from cheap imports.
Investcorp and others settled the case for 25.5 lakhs
Seven people, including Investcorp Real Estate Yield Fund, have settled the case with SEBI for violation of rules by paying Rs 25.5 lakh. It stars Ritesh Vohra, Gaurav Sharma, IDBI Trusteeship, Investcorp India Asset Managers and others.
