Jyothy Labs raises Rs 263 crore via preferential allotment

Home-grown consumer goods company Jyothy Laboratories Ltd (JLL) today said it has raised Rs 263 crore via preferential allotment of shares to a promoter Group firm.

The city-based company has allotted 1.5 crore equity shares of Re 1 each at a price of Rs 175.15 per equity share to Sahayadri Agencies Ltd. Post allotment, the paid up equity share capital of Jyothy Labs has increased to Rs 18.10 crore from Rs 16.60 crore. With this the promoter holding in JLL has gone up from 63.69 percent to 66.7 percent, a company release said here.

"Post successful integration with Henkel India it was the right time to invest in existing brands and also expand JLL's portfolio. The preferential allotment of shares along with NCDs to a clutch of investors will help JLL to save the yearly interest burden of about Rs 60 crore, leaving a cash balance of about Rs 250 crore, Jyothy Labs Joint Managing Director Ullas Kamath said.

"The fund will be utilised for the organic and inorganic growth of the company," he said. The FMCG firm last month raised Rs 400 crore through zero coupon non-convertible debentures (NCDs) payable after three years. The amount raised through preferential allotment has been used to repay the term loan of approximately Rs 400 crore, the release said.

The news of preferential allotment boosted Jyothy Labs shares. The stock ended the day at Rs 199.70, up 5.86 per cent on the BSE. In intra-day, the scrip jumped 10.25 per cent to Rs 208.

Jyothy Labs stock price

On December 04, 2013, Jyothy Laboratories closed at Rs 199.70, up Rs 11.05, or 5.86 percent. The 52-week high of the share was Rs 211.00 and the 52-week low was Rs 140.00.

The company's trailing 12-month (TTM) EPS was at Rs 5.27 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 37.89. The latest book value of the company is Rs 0.00 per share. At current value, the price-to-book value of the company is 0.00.

08.11 | 0 komentar | Read More

Vodafone to invest $3bn in India networks over next 2 years

NEW DELHI (Reuters) - Vodafone Group Plc plans to invest $3 billion in Indian networks in the next two years, Chief Executive Officer Vittorio Colao said on Wednesday in the Indian capital.

He told reporters that he was also seeing progress in India's regulatory environment, although there was not yet complete clarity.

Vodafone has sought regulatory approvals in India to take full ownership of its Indian unit, which is the country's second-biggest mobile phone carrier by revenue and users, in a $1.6 billion deal.

08.11 | 0 komentar | Read More

Uninor gets new telecom licences

Mobile operator Telewings has got unified licence, the new telecom permits, after its promoter Telenor successfully transferred assets of old venture Unintech Wireless to the new entity. "We can confirm that new unified licences have been received. This is licence and spectrum for 20 years in the six circles of UP East, UP West, Bihar and Jharkhand, Maharashtra and Goa, Andhra Pradesh and Gujarat," Telewings said in a statement.

The company, however, continues to operate under brand name Uninor which was created under its partnership with real estate firm Unitech. All licences of Uninor were cancelled in February 2012 by the Supreme Court along with 100 other 2G permits. Uninor had to bid for spectrum afresh to continue its operations. Erstwhile parters Telenor and Unitech were at loggerheads after Uninor licences came under the scanner of investigating agencies in 2G spectrum allocation case of 2008.

Even after cancellation of Uninor's permit, both the partners continued to be locked in a dispute over control of Uninor assets. Both the companies finally signed an agreement in October 2012 wherein Unitech agreed to allow transfer of Uninor assets to Telewings. According to sources, under the settlement agreement both companies decided to close all legal disputes, allow Telenor to run operations through Telewings post asset transfer, and the new Indian entity can re-brand operations.

All assets of Uninor have now been transferred to Telewings which participated in November 2012 auction and won spectrum in the six service areas, a company spokesperson said. "Having received due approvals, the Uninor business is now running in the new company Telewings that has licence and spectrum for 20 years in the circles of UP East, UP West, Bihar and Jharkhand, Maharashtra and Goa, Andhra Pradesh and Gujarat," the statement said.

The spokesperson said that Uninor services will continue seamlessly under the Uninor brand name. Telenor has also received approval of the Foreign Investment Promotion Board in June to raise its stake in Telewings from 49 percent at present to 74 percent. "Telenor Group had applied for and received approvals to raise its shareholding to 74 percent, which will be done in due course," the spokesperson said.

Lakshdeep Investments & Finance has 51 percent stake in Telewings at present. Uninor had 3.23 crore mobile customers at the end of September, 2013.

08.11 | 0 komentar | Read More

Bharti Airtel hits intl bond street for 3rd time this year

Country's largest telecom firm Bharti Airtel today hit the international market with a benchmark Euro bond offering, merchant bankers said. The company is offering the five year Euro bonds for investors and the money is being raised through its wholly owned Bharti Airtel International (Netheralnds) BV, sources told PTI.

It had conducted road shows for the bond sale, its third this year, last week in London, Paris, Amsterdam and Frankfurt. Merchant bankers had last week said the company is mulling to raise over USD 1 billion through bond sales, ahead of the spectrum auction slated next month.

Bharti could not be reached immediately for comments. This is the third major bond sale by domestic companies after the May 24 tapering talk by the US Fed, which spiked interest rates in western markets. The company's arm Bharti Airtel International Netherlands is raising the money, which will be fully guaranteed by the parent company.

According to one I-banker, StanChart, Barclays, JPMorgan, UBS and BNP Paribas are the joint book-runners and lead managers to the issue. In March this year, the company had raised USD 1.5 billion in overseas debt in two tranches. Meanwhile, Fitch Ratings has assigned BBB- ratings to the proposed senior unsecured Euro notes.

Fitch Ratings has assigned Bharti Airtel International Netherlands' proposed notes an expected rating of 'BBB-. The notes will be unconditionally and irrevocably guaranteed by Bharti Airtel, and are therefore rated at the same level as Bharti's foreign currency senior unsecured rating of 'BBB-', Fitch said in a statement issued from Singapore today.

So far this year, companies have mopped up over USD 14.25 billion in overseas debt, with the latest being the USD 500 million issuance by HDFC Bank in October and USD 750 million by ICICI Bank earlier this month.

08.11 | 0 komentar | Read More

EGoM to meet tomorrow evening to discuss telecom MA rules

The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, is scheduled to meet tomorrow evening to discuss M&A norms in the telecom sector.

"The EGoM was earlier scheduled to meet in the morning, but it is rescheduled for evening now," an official source told PTI.

Earlier in the day, sources said the meeting was postponed as the Department of Telecom is still working on some issues regarding the norms, like what rules should be followed in acquisition of a dual technology player by another telecom operator.

The high-powered ministerial panel was to discuss merger and acquisition (M&A) guidelines in the last meeting on November 22, but due to paucity of time the matter did not come up for discussion.

The M&A guidelines are expected to pave the way for consolidation in the telecom sector where there are 12 mobile service providers such as Airtel , Vodafone, BSNL and Tata Teleservices and Aircel. The Telecom Commission has already approved draft M&As guidelines which say market share of a merged entity should not exceed 50 per cent in terms of subscriber base.

The Telecom Commission is the highest decision-making body of Department of Telecom (DoT). EGoM has to take call on spectrum charges that an entity formed after merger will have to pay on its total holding. Besides, it will also decide on the lock-in period during which the merger entity cannot change hands.

Bharti Airtel stock price

On December 02, 2013, Bharti Airtel closed at Rs 332.30, up Rs 5.10, or 1.56 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 266.95.

The company's trailing 12-month (TTM) EPS was at Rs 11.45 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 29.02. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company is 2.45.

08.11 | 0 komentar | Read More

Draft RBI norms on large banks seek add'l capital buffer

To protect the financial system from risks emanating from large banks, the RBI today floated draft guidelines for the domestic systemically important banks (D-SIBs) that would require such lenders to maintain an additional core capital of upto 0.80 per cent starting 2015.

According to the draft guidelines, a list of D-SIBs will be made public every August starting from 2015.

These D-SIBs will be selected based on a pre-determined formula and will be required to maintain higher core tier-I capital ranging from 0.20 to 0.80 per cent of their risk weighted assets, the draft RBI guidelines issued today said.

The classifying system is based on the BCBS (Basel Committee for Banking Supervision) framework for global systematically important banks (SIBs) and involves computation of composite systemic importance score for banks which will be arrived at post-considering a bank's size, interconnectedness, substitutability and complexity, the RBI said.

SBI has alone has more than 20 per cent market share in the Indian banking system. In the private sector, lenders, including  ICICI Bank and HDFC Bank , have significant influence.

"The Reserve Bank will determine a cut-off score beyond which banks will be considered D-SIBs. Based on their systemic importance scores, banks will be plotted into different buckets," RBI said.

The draft guidelines say in the eventuality of a financial crisis, issues faced by large financial institutions in an interconnected system harm the real economy and in some cases, the governments has to intervene to ensure financial stability.

"Costs of public sector intervention and consequential increase in moral hazard require that future regulatory policies should aim at reducing the probability of failure of systemically important banks and also should try to reduce the impact of the failure of these banks," it said.

It added that setting aside additional capital will also ensure a level-playing field between SIBs and non-SIBs. The RBI has invited comments on the draft guidelines till December 31.

HDFC Bank stock price

On December 02, 2013, HDFC Bank closed at Rs 661.05, down Rs 0.15, or 0.02 percent. The 52-week high of the share was Rs 727.00 and the 52-week low was Rs 528.00.

The company's trailing 12-month (TTM) EPS was at Rs 31.65 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 20.89. The latest book value of the company is Rs 151.32 per share. At current value, the price-to-book value of the company is 4.37.

08.11 | 0 komentar | Read More

Videocon to seek shareholder nod to raise up to $800 mn

Nov 30, 2013, 03.45 PM IST

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Like this story, share it with millions of investors on M3

Videocon to seek shareholder nod to raise up to $800 mn

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Like this story, share it with millions of investors on M3

Videocon to seek shareholder nod to raise up to $800 mn

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Share  .  Email  .  Print  .  A+A-

Videocon Industries proposes to seek shareholder approval to raise up to Rs 5000 crore, the company said on Saturday.

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Videocon Ind stock price

On November 29, 2013, Videocon Industries closed at Rs 170.30, up Rs 0.35, or 0.21 percent. The 52-week high of the share was Rs 246.25 and the 52-week low was Rs 163.75.

The latest book value of the company is Rs 309.51 per share. At current value, the price-to-book value of the company was 0.55.

Action in Videocon Industries

08.11 | 0 komentar | Read More

UP resolves sugar cane price row, crushing to start

Sugar mills in India's top cane producing state will soon start crushing cane after they temporarily resolved a dispute with the local government over how much to pay farmers, officials said on Sunday, ending a standoff that could have hit exports.

Uttar Pradesh has kept cane prices unchanged at 280 rupees per 100 kg despite domestic ex-mill sugar prices falling about 8 percent, prompting mill owners to demand a cut in cane prices and delay crushing that typically starts in early November.

But the mills have now agreed to start crushing after the state government allowed them to pay farmers in two tranches and waived some taxes.

"The sugar industry of Uttar Pradesh ... announced commencement of crushing operation for season 2013-14, despite operations being unviable at the present cane price," said Deepak Guptara, secretary of the state sugar mills association that had sought to pay 225 rupees per 100 kg of cane.

"The state government has assured that a long term viable cane price fixation formula would be worked out so as to ensure long term viability and growth of the industry."

The government ordered the 123 sugar mills in the state to start crushing by December 7, Uttar Pradesh's top bureaucrat said in a statement.

The delay in crushing already means India's sugar production could slip 2.4 percent to 24.4 million tonnes in the year to September 2014, federal Food Minister K.V. Thomas said earlier this week.

While stocks remain comfortable and output is still likely to exceed demand, the slide could crimp exports from the world's second-biggest producer and give some support to sagging global and domestic prices.

08.11 | 0 komentar | Read More

Bajaj Fin may rejig mgmt to abide by RBI’s banking norms

Nov 29, 2013, 09.42 PM IST

In an exclusive interview with CNBC-TV18, Rajiv Bajaj, director, Bajaj Auto said its finance arm - Bajaj Finance- may undertake an organisational restructuring to ensure that there is no 'conflict of interest'.

Like this story, share it with millions of investors on M3

Bajaj Fin may rejig mgmt to abide by RBI's banking norms

In an exclusive interview with CNBC-TV18, Rajiv Bajaj, director, Bajaj Auto said its finance arm - Bajaj Finance- may undertake an organisational restructuring to ensure that there is no 'conflict of interest'.

Like this story, share it with millions of investors on M3

Bajaj Fin may rejig mgmt to abide by RBI's banking norms

In an exclusive interview with CNBC-TV18, Rajiv Bajaj, director, Bajaj Auto said its finance arm - Bajaj Finance- may undertake an organisational restructuring to ensure that there is no 'conflict of interest'.

  .   Share  .  Email  .  Print  .  A+A-

Just a day after the Tatas opted out of the race for a banking licence, its Pune-based rival business family Bajaj reiterated its commitment and intent on converting from a non-banking financial company into a full-fledged bank.

Also read: Birlas bullish on banking foray; look for minority partners

In an exclusive interview with CNBC-TV18, Rajiv Bajaj, director, Bajaj Auto said its finance arm - Bajaj Finance - may undertake an organisational restructuring to ensure that there is no 'conflict of interest'.
 
Bajaj said that the firm was in a dilemma since currently the auto division of the finance company finances 30 percent of Bajaj Auto's total domestic sales. This could get impacted if the NBFC becomes a full-fledged bank raising questions of a possible 'conflict of interest' .

 The MD of Bajaj Auto said that it is engaging experts to ensure that while the new bank complies with the requirements at the same time lending to Bajaj Auto is not impacted.
 
"Auto Finance division of Bajaj Auto is managed by me through my colleague who too is a Bajaj Auto employee. If Bajaj Finance becomes a bank then to avoid any 'conflict of interest' we may have to relinquish our roles in managing the auto division," Bajaj told CNBC-TV18.

He also voiced concerns at a time when Bajaj's competitors are becoming aggressive in auto lending the company could ill-afford to hamper two-wheeler and three-wheeler lending for Bajaj Auto.
 
"Shareholders of Bajaj Auto could be concerned as financing is critical to combat competion and the slowing economy and is the lifeblood of sales. We are seeing our competitiors strengthen their financing arms. We need to find out the optimum middle ground," he added.

A senior executive in the banking industry told CNBC-TV18 that auto companies wanting to convert into full-fledged banks could face this dilemma.
 
Currently Bajaj Group is the only NBFC that has shown interest in converting into a bank, which has a sizeable auto business. In fact Bajaj Auto is the 'golden goose' for the entire Bajaj Group.

Other groups with auto businesses like the Tatas and Mahindras have already opted out of the race for winning a banking license. Maruti Suzuki and Hero MotoCorp have already said they have no ambition to becoming banks.
 
Tatas and Mahindras have cited the stringent condition of meeting CRR and SLR requirement from the first day of becoming a bank. "After prolonged deliberations and detailed analysis, Tata Sons has therefore decided to withdraw its application dated July 1, 2013, from the current round of licensing," Tata Sons had said in a statement on Thursday.

Bajaj Auto stock price

On November 29, 2013, Bajaj Auto closed at Rs 1974.75, up Rs 23.75, or 1.22 percent. The 52-week high of the share was Rs 2228.95 and the 52-week low was Rs 1657.50.

The company's trailing 12-month (TTM) EPS was at Rs 109.18 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 18.09. The latest book value of the company is Rs 273.08 per share. At current value, the price-to-book value of the company is 7.23.

Related Stories

More from Ronojoy Banerjee

08.11 | 0 komentar | Read More

Videocon to seek shareholder nod to raise up to $800 mn

Nov 30, 2013, 03.45 PM IST

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Like this story, share it with millions of investors on M3

Videocon to seek shareholder nod to raise up to $800 mn

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Like this story, share it with millions of investors on M3

Videocon to seek shareholder nod to raise up to $800 mn

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Share  .  Email  .  Print  .  A+A-

Videocon Industries proposes to seek shareholder approval to raise up to Rs 5000 crore, the company said on Saturday.

The funds could be raised through various means, such as the issue of shares or foreign currency convertible bonds, the company told the stock exchange in a statement.

Videocon Ind stock price

On November 29, 2013, Videocon Industries closed at Rs 170.30, up Rs 0.35, or 0.21 percent. The 52-week high of the share was Rs 246.25 and the 52-week low was Rs 163.75.

The latest book value of the company is Rs 309.51 per share. At current value, the price-to-book value of the company was 0.55.

Action in Videocon Industries

08.11 | 0 komentar | Read More