VC Circle – Flower exporter Karuturi Global is raising Rs 290 crore from its promoter Ramakrishna Karuturi and a consortium of foreign institutional investors (FIIs). Both promoter and FIIs are together subscribing 241.5 million warrants of Rs 12 each, which would converted into one equity share. A group of four FIIs, which include hedge fund Monsoon Capital, are pumping in Rs 248.64 crore in the firm. The rest is being invested by the promoter, Ramakrishna Karuturi. The company is now seeking shareholders approval through a postal ballot.

The four FIIs investing in Karuturi will together hold a 29.82% stake in the post-issued capital. They include Emerging India Focus Fund (8.64%), India Focus Cardinal Fund (14.4%), Elara India Opportunities (3.91%) and Monsoon Capital (2.87%). The warrants can be converted within 18 months, and an amount Rs 3 per warrant would have to paid at the time of warrant allotment. The rest of the amount of Rs 9 would be paid when subscribing each equity share, which would have a lock-in of one year.

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MSN India – The Children’s Investment Fund Management and its affiliates have emerged as the single-largest seller of Indian stocks among foreign institutional investors (FIIs).

The hedge fund registered its biggest annual loss in 2008.

The fund is liquidating its investments in India at a steep discount to the prices at which it bought the stocks last year. The Bombay Stock Exchange Sensitive Index has declined 15.4 per cent this year while the Bankex, the banking index, has lost 33.4 per cent.

The UK-based hedge fund accounts for about 10 per cent of an estimated Rs 10,772 crore of stock sales by FIIs so far this year. So far, Children’s Fund has sold as much as Rs 1,154 crore worth of stocks, or 33 per cent of its purchases last year, a study by the Business Standard Research Bureau showed.

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