IDFC pares FII limit to 51.5% ahead of banking services

The company, which received a commercial banking licence in April, plans to start bank operations by October next year. The banking regulations require that a bank should be floated by a domestic entity and it should pare foreign investor holding to 49 percent to run banking services.

Infrastructure financing firm  IDFC has reduced the foreign shareholding limit by 0.75 percent to 51.50 percent in view of its plans to rollout banking services next year.

The company, which received a commercial banking licence in April, plans to start bank operations by October next year. The banking regulations require that a bank should be floated by a domestic entity and it should pare foreign investor holding to 49 percent to run banking services.

RBI said IDFC passed resolutions at the Board of Directors' level and a special resolution by the shareholders, agreeing for decreasing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs to 49 percent before launching the banking services.

"The Reserve Bank of India notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), through primary market and stock exchanges, can now purchase up to 51.50 percent of the paid up capital of IDFC Limited under Portfolio Investment Scheme (PIS)," RBI said in a notification.

Earlier the foreign shareholding in the company was at 52.25 percent.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

IDFC stock price

On July 08, 2014, IDFC closed at Rs 137.05, down Rs 5.25, or 3.69 percent. The 52-week high of the share was Rs 147.15 and the 52-week low was Rs 76.25.

The company's trailing 12-month (TTM) EPS was at Rs 11.21 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 12.23. The latest book value of the company is Rs 96.97 per share. At current value, the price-to-book value of the company is 1.41.

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DoT may issue show cause notice to Airtel post legal view

Earlier in October, 2011, the DoT had imposed Rs 50 crore fine on Airtel. Later in 2012, telecom tribunal TDSAT quashed the penalty saying that Airtel was not issued any show cause notice and hence the order did not comply with principles of natural justice.

The Department of Telecom (DoT) is likely to seek legal opinion for issuing a show cause notice to Airtel on charges of hiding caller identity in Madhya Pradesh service area in January, 2011 posing a security threat.

Earlier in October, 2011, the DoT had imposed Rs 50 crore fine on Airtel. Later in 2012, telecom tribunal TDSAT quashed the penalty saying that Airtel was not issued any show cause notice and hence the order did not comply with principles of natural justice.

According to draft show cause notice, prepared by DoT for legal vetting, Airtel camouflaged caller identities for making promotional calls to non-Airtel mobile customers.

Airtel did not offer any comment on DoT charges.

The mobile operator had earlier said that error was made by third party, a call centre. The DoT, however, has said the call centre is not a third party and it serves to Airtel.

Airtel had also contested that there was no loss to government exchequer. As per DoT, "it is high potential security threat to the nation, firstly because false identity shown at the receiving end and secondly due to non-traceability of call data records in the data warehouse".

According to sources, there has been a delay in issuing notice to  Bharti Airtel in the matter. The wing assigned this task has sought legal opinion on whether it is feasible to issue the notice at this juncture.

"There was internal delay at a DoT cell dealing with case directly in communicating the legal opinion on the matter to the wing involved for issuing show cause notice," an official source said.

The wing that had been handling this matter directly, official sources said, is apparently working on to close matter as time for filing appeal against TDSAT judgement before Supreme Court has elapsed.

Bharti Airtel stock price

On July 08, 2014, Bharti Airtel closed at Rs 339.65, down Rs 4.95, or 1.44 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 279.25.

The company's trailing 12-month (TTM) EPS was at Rs 16.51 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 20.57. The latest book value of the company is Rs 152.21 per share. At current value, the price-to-book value of the company is 2.23.

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Simple regulatory framework to aid investment: Vedanta

Vedanta Resources Chairman Anil Agarwal said that though India has the world's fourth largest coal deposits and seventh largest deposits of iron ore, these sectors are significantly underinvested in terms of exploration and development.

Implementation of simple regulatory framework and adherence to commitments will help India attract investments in natural resources sector, Vedanta Resources Chairman Anil Agarwal said.

"India is a country richly endowed with world's largest reserve of natural resources and in today's context, possesses the potential to add USD 1 trillion to the growth of the Indian economy over a period of few years and in turn, create millions of job opportunities," he said in his expectation from the government.

The key to this simple revolution lies in implementing a simple regulatory framework, based on a transparent structure of policies and regulations and a faithful adherence to commitments to attract investments. "I am sure this will attract many more companies willing to work in India, to explore and harness the vast reserve of natural resources to the benefit of the Indian economy," he said.

Stating that the need of the hour was to boost energy security through reform, Agarwal said that India can meet at least 50 percent of its oil and gas requirements from its own resources.

"Today India produces oil at around USD 4 per barrel and import at around USD 110 per barrel. We are sitting on a large resource base of oil and gas and what is needed is to encourage large companies to enter this sector to unlock the true potential. This can be through joint ventures and foreign investments," he said.

Agarwal said that though India has the world's fourth largest coal deposits and seventh largest deposits of iron ore, these sectors are significantly underinvested in terms of exploration and development.

"Encouraging private enterprise, exploration of natural resources, development of manufacturing, simplification of regulatory and approval processes, promoting tourism and liberal arts can open up new avenues of employment and accelerate the economic progress of the country," Agarwal said.

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Eight Indian companies in Fortune 500 list

Eight Indian companies, led by state-run IOC , have made it to the latest Fortune Global 500 list of world's biggest firms which has been topped by US-based retailer Wal-Mart after a gap of two years.

Among the Indian companies, which also includes Reliance Industries , BPCL , HPCL ,  SBI and ONGC , only  Tata Motors has managed to improve the ranking and other seven have fallen.

Globally, Wal-Mart has pushed energy giant Royal Dutch Shell to the second position in the 2014 list, followed by Chinese majors - Sinopec Group and China National Petroleum- at third and fourths spots, respectively.

Exxon Mobil is ranked fifth, taking the total number of US companies on the list to 128. There are 95 Chinese firms and 150 from Europe on the list, which ranks firms across the world on the basis of their annual revenues.

Wal-Mart has topped the list with revenues of USD 476.29 billion, while that of top ranked Indian company IOC's is USD 81.32 billion. IOC is the only Indian company featuring in the top 100 at the 96th position, although down from 88th last year.

There are five state-run and three private sector companies including two from Tata group (Tata Motors and Tata Steel).

Reliance Industries is placed at 114th position, followed by Bharat Petroleum (242), Hindustan Petroleum (284), Tata Motors (287), State Bank of India (303), ONGC (424) and Tata Steel (486).

Tata Motors has moved up from 316th position last year.

Fortune magazine said there were record number of 17 women as CEOs of Fortune Global 500 companies which includes two first timers from India -- HPCL's Nishi Vasudeva and SBI's Arundhati Bhattacharya.

"After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: "They racked up combined revenues of USD 31.1 trillion, up 2.5 percent from 2012, and profits soared 27 percent to nearly USD 2 trillion," the magazine said.

Other companies in the top ten include BP (6th rank), State Grid (7), Volkswagen (8), Toyota (9) and Glencore (10). Warren Buffett-led Berkshire Hathaway is ranked 14th while Apple is at the 15th place.

IOC stock price

On July 07, 2014, Indian Oil Corporation closed at Rs 342.15, down Rs 7.05, or 2.02 percent. The 52-week high of the share was Rs 385.35 and the 52-week low was Rs 186.20.

The company's trailing 12-month (TTM) EPS was at Rs 28.91 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 11.84. The latest book value of the company is Rs 280.66 per share. At current value, the price-to-book value of the company is 1.22.

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Aiming 10% market share in India: Nissan's Andy Palmer

Nissan's chief planning officer, Andy Palmer says the company's India business has grown some 140 percent in revenues in the last one year.

Obviously there is a lot of runway in front of us but in the last 12 months we have basically doubled our market share

Andy Palmer

Chief Planning Officer

Nissan

In his own words he is the product access for Nissan. That makes Andy Palmer responsible for corporate and product planning, program management and sales and marketing performance at a global level. Nissan's Chief Planning Officer, who is in India this week for the launch of a re-vitalised Sunny , is quite optimistic about the Indian market.

In an exclusive chat with CNBC-TV18's Menaka Doshi,Palmer says the company's India business has grown some 140 percent in revenues in the last one year and expects to double its market share in FY15 as well.

Below is the transcript of interview of Andy Palmer with CNBC-TV18's Menaka Doshi.

Q: What do you make of the slight turn around that we have seen in the auto industry and in auto sales in the last month or so here in India, what is your outlook for what India can deliver as a global growth spot?

A: Clearly we see India as a growth opportunity and we have for a long time. Obviously that is the reason that we built a very significant factory in Chennai not only anticipating the ability to export from Chennai but also the growing domestic requirements and we see more and more of the capacity in Chennai being used for domestic production.

We were disappointed to see the slowdown of the economy and obviously that created for us a negative total industry volume which of course is a little bit of a headwind. The economy struggled.
We have been lucky. Particularly in the first quarter of the last financial year the last three months we have seen partially with the new products, partially with annual distribution network but partially an underlying recovery of the economy perhaps driven and helped by the change of government in India we have seen some revitalisation and actually in comparing this last quarter to the same quarter a year ago Nissan Motor Corporation has grown by 142 percent which bucks the trend and is testament not only to the strategy but also gives very good signs of an underlying recovery in the Indian economy.

Q: Given this optimism are you revising your market share and revenue targets for India through the course of lets say this financial year so can you give us a sense of what or where you expect India to deliver in terms of both market share because it is still a very miniscule market share for Nissan here and in terms of revenue as well?

A: We are running at the moment at about 2.2 percent market share. Our longer term ambition is 10 percent market share. Obviously there is a lot of runway in front of us but in the last 12 months we have basically doubled our market share. So we need to keep that kind of trajectory and with the products that I see coming down the pipeline and in particular with the social changes that are happening with the younger generations in India I am very optimistic that the brands of Nissan and Datsun, maybe Infiniti in the future, but Nissan and Datsun have a real place in society here and our long term goal of 10 percent market share and to be very much a part of the Indian society that is why we invested so much in the people and do our own R&D here.

For the complete interview watch the accompanying videos

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NLC to generate additional 1,500 MW power in five months

Out of it, expansion of two units at Neyveli Thermal Power Station-II with a capacity of 250 MW each were nearing completion at a cost of Rs 3,027.59 crore, NLC Chairman and Managing Director B Surender Mohan said.

Neyveli Lignite Corporation  (NLC) owned New Thermal Power Stations in Tamil Nadu would generate additional 1,500 MW power within five months, a senior official has said. NLC Chairman and Managing Director B Surender Mohan addressing a Technical Committee meeting last night said that four new thermal units with a capacity of 1,500 MW will be commissioned within next five months at Neyveli and Tuticorin.

Out of it, expansion of two units at Neyveli Thermal Power Station-II with a capacity of 250 MW each were nearing completion at a cost of Rs 3,027.59 crore, he said. Other two units with generating capacity of 500 MW each under a joint venture with Tamil Nadu Generation and Distribution Corporation Limited would also be commissioned within five months at a cost of about Rs 4,910 crore, he said.

At present NLC is generating 2490 MW of power.

Also Read: PSUs-Reforms a better play than just disinvestments, says Emkay

Neyveli Lignite stock price

On July 04, 2014, Neyveli Lignite Corporation closed at Rs 99.00, down Rs 0.6, or 0.6 percent. The 52-week high of the share was Rs 108.50 and the 52-week low was Rs 49.00.

The company's trailing 12-month (TTM) EPS was at Rs 8.95 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 11.06. The latest book value of the company is Rs 86.15 per share. At current value, the price-to-book value of the company is 1.15.

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AI puts up 5 more Dreamliners for leaseback

The national carrier has issued a tender inviting bids for the sale and leaseback of five Boeing 787-8 Dreamliners, which were delivered between August 26 last year and January 28 this year, the bid document said.

Air India will sell and lease back five of its new Dreamliners as part of cost-cutting measures and save substantial sums to pay off the bridge loans it has taken against these aircraft, official sources said.

The national carrier has issued a tender inviting bids for the sale and leaseback of five Boeing 787-8 Dreamliners, which were delivered between August 26 last year and January 28 this year, the bid document said.

Leaseback, short for sale-and-leaseback, is a financial transaction where one sells an asset and leases it back for the long-term. Hence, one continues to use the asset but no longer owns it.

Air India has fixed a reserve purchase price of USD 116 million for an aircraft and bids below this amount would not be considered, the document said, adding that the airline would sell the five planes and immediately lease them back for a period of 12 years with an option to extend the lease.

The national carrier has so far taken delivery of 14 of these aircraft and concluded leaseback arrangement for the first seven of those. It had ordered 27 of these fuel- efficient planes in January 2006 from its US manufacturer.

Airline officials, while leasing the previous lot of seven Dreamliners, had estimated that the company would earn over USD 800 million through that sale.

This time round, the airline is expecting to raise over USD 600 million by way of selling the five aircraft, they said, adding that the amount would be used to pay off the bridge loans taken against these planes apart from other operational requirements.

The officials also said that the Boeing 787s have given positive results on routes on which the airline was incurring cash losses as the fuel burn on these aircraft was 15 percent less than that for Boeing 777s.

Air India last year sold five of its Boeing 777-200 (Long Range) planes to Abu Dhabi-based carrier Etihad for about USD 350 million.

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Aiming 10% market share in India: Nissan's Andy Palmer

Nissan's chief planning officer, Andy Palmer says the company's India business has grown some 140 percent in revenues in the last one year.

Nissan which recently launched its Nissan Sunny in India, is quite optimistic about the Indian market. In an exclusive chat with CNBC-TV18's Menaka Doshi, Nissan's chief planning officer, Andy Palmer says the company's India business has grown some 140 percent in revenues in the last one year and expects to double its market share in FY15 as well.

Watch videos for more.

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SBI flags concern on AP,Telengana farm loan waiver talks

"Stress in our agri portfolio in Q1 will not be so much because of the monsoon deficit as that does not translate into stress so quickly, but definitely on account of the proposed debt waiver (in Andhra and Telengana) yes," SBI Chairperson Arundhati Bhattacharya told reporters

Country's largest lender SBI today raised concerns over the proposed farm loan waivers by Andhra Pradesh and Telengana chief ministers, saying it may mount the already high stress on its agriculture portfolio in the first quarter. "Stress in our agri portfolio in Q1 will not be so much because of the monsoon deficit as that does not translate into stress so quickly, but definitely on account of the proposed debt waiver (in Andhra and Telengana) yes," SBI Chairperson Arundhati Bhattacharya told reporters late this evening after the bank's 59th annual general meeting. She was answering to a question on the impact of the proposed farm loan waivers , running into over Rs 1 lakh crore in Andhra Pradesh and Telengana by their newly-elected chief ministers N Chandrababu Naidu and K Chandrasekhar Rao.

While the agri loan book in Andhra is worth Rs 87,000 crore, the data for Telengana is not immediately available. Bhattacharya said already the issue has created problems in Telengana and Andhra as people have stopped paying the dues. On the overall non-performing loans in the banking sector, she said with the improvement in the macroeconomic environment and an expected revival in growth, should mitigate risks and resolve problems of asset quality. "This stress is lessening and so hopefully going forward the number should start looking better," said Bhattacharya, who for the first time in the history of the over 200-year-old bank had sold Rs 3,500 crore NPAs to asset reconstruction companies (ARCs) last quarter.

She also said the bank may sell around Rs 3,000 crore more of bad loans to ARCs in this quarter. The bank's year to date loan growth is around 13 percent and it is targeting a growth of 15-16 per cent this fiscal. "I continue to stick to it (15-16 percent loan growth in FY15) because even though we are hopping that growth will come back, but for it to translate into credit books of the bank will take time. Maybe, in the last quarter we may see substantial pick up, and if not, definitely in the first quarter of the next year," Bhattacharya said. She said with improvement in macroeconomic condition  and rise in profitability, the bank will try to meet its fund requirement internally rather than from other avenues. However, she said although internal accruals is a good source of getting capital it cannot be the only source. "So,we will have to look at other sources."

Last year, the bank raised had Rs 8,032 crore through qualified institutional placement and Rs 2,000 crore via tier-II bonds. Bhattacharya said the bank is well-capitalised for now and does not require funds currently but will look at when the credit growth picks up. "I have a lot of room in additional tier I, tier II. Regarding the common equity tier I, I can look for rights issue or follow-on or a QIP. So, all of them are on the table. But at this point capital is not of a very primary importance," Bhattacharyya said. SBI's capital adequacy ratio stands at 12.44 percent.

SBI stock price

On July 03, 2014, State Bank of India closed at Rs 2691.95, down Rs 9.15, or 0.34 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 145.88 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.45. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.70.

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Shree Renuka Sugars' open offer fails

As per the BSE filing, both the joint-venture partners were able to acquire only 1750 shares worth Rs 38,307 as the open offer rate was much lower than the market price that hovered around Rs 28-29 per share.

Shree Renuka Sugars' open offer has failed as the company has been able to acquire only 1,750 shares out of over 24 crore shares due to higher share price compared with the offer rate. In February, the company had announced sale of 27.5 percent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore through a preferential allotment of fresh equity, triggering mandatory open offer by both Wilmar and existing promoters.

Also Read: Sugar import duty raised to 40%, relief proposed for mills

In the open offer, Shree Renuka Sugars Group along with Wilmar International proposed to acquire 24.31 crore shares at Rs 21.89 per share, representing 26 per cent stake. The offer started on June 9 and closed on June 20. As per the BSE filing, both the joint-venture partners were able to acquire only 1750 shares worth Rs 38,307 as the open offer rate was much lower than the market price that hovered around Rs 28-29 per share. Post open offer, the combined stake of Shree Renuka Sugars and Wilmar stands at little over 55 percent in the company with both partners having an equal stake.

As per the deal, both Wilmar and the existing promoters will jointly participate in a rights issue to raise up to Rs 725 crore for investment in the company. Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonne per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, speciality fats, biodiesel and fertilisers manufacturing and grains processing.

Shree Renuka stock price

On July 03, 2014, Shree Renuka Sugars closed at Rs 27.15, down Rs 0.6, or 2.16 percent. The 52-week high of the share was Rs 31.80 and the 52-week low was Rs 14.50.

The latest book value of the company is Rs 14.56 per share. At current value, the price-to-book value of the company was 1.86.

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