Indian Hotels has sought shareholder permission to issue 3.6 crore shares and 4.8 crore warrants, convertible into equity shares, to its promoters. This will be through a preferential allotment process and the price will be decided as per the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2009.
Companies
Axis Bank investors frown at Enam buy
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Axis Bank took the world of finance by surprise, announcing its decision to acquire Enam Securities investment banking and capital market transactions’ business. It will pay about Rs 2,067 crore in stock to Enam’s owners -Vallabh Bhansali, Jagdish Master, Nemish Shah and Manish Chokhani- in a cashless acquisition, structured as a merger.
Companies
ONGC claims first right to Cairn India stake
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Vedanta Resources was in the news for being denied permission by the government to mine bauxite in Niyamgiri hills in Orissa. Just when the dust was settling on that episode, its proposed acquisition of a majority stake in Cairn India has come under a cloud. Government-owned oil company Oil and Natural Gas Corporation has claimed pre-emptive rights over Cairn India and asked for documentation before giving a go-ahead to the transaction. Continue Reading →
Companies
Indiabulls issues non-convertible debentures
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Indiabulls Financial Services announced the closure of its qualified institutional placement issue on August 27. Contrary to news reports which pegged the amount raised at Rs 1,280 crore, the company raised an aggregate of Rs 650 crore through the issue of non-convertible debentures and Rs 13.8 crore as margin money on allotment of warrants, linked to the debenture issue.
Companies
Borosil Glass Works sells Mumbai property for Rs 830 crore
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Borosil Glass Works has announced to the Bombay Stock Exchange that it has sold its property in Andheri to Neepa Real Estate Pvt Ltd for Rs 830 crore. The company has shut production at the plant located on this land. Till its new unit to make borosilicate glass at Bharuch, Gujarat, gets gets ready, the company is sourcing its products from alternate sources.
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Companies
Wockhardt to issue additional preference shares
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Pharmaceutical company Wockhardt Ltd is seeking shareholder approval through a postal ballot process to continue to restructure its debt, in according with a corporate debt restructuring package. The company had suffered sizeable derivative-related losses when the global financial crisis hit companies. It also had substantial debt taken for overseas acquisitions. Continue Reading →
Companies
Godrej uses LLP structure for real estate SPV
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Godrej Industries is seeking shareholder approval to form a special purpose vehicle to implement a real estate project along with its subsidiary Godrej Properties. Godrej Industries is the listed holding company of the Godrej group, with subsidiaries in varied businesses such as foods, consumer products, chemicals and real estate projects.
Companies
Mahindra is the preferred bidder for Ssangyong
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South Korea’s Ssangyong Motor Company announced that Mahindra & Mahindra (M&M) was the preferred bidder in its quest to find a strategic investor. It was one among six bidders for the failing auto company, whose prime attraction for bidders would be its product line-up, mainly sports-utility vehicles, and global sales network. M&M will now enter into a memorandum of understanding with Ssangyong, undertake due diligence followed by the final agreements. Continue Reading →
Companies
ABG Shipyard makes big investment plans
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ABG Shipyard is asking its shareholders to approve Rs 800 crore of investments and Rs 1,750 crore of corporate guarantees. That is a sizeable investment for the company which had a net worth of about Rs 1,080 crore as of March 31 2010. The company’s debt position as of March 31 2009 was Rs 1,771 crore. It has not indicated how it proposes to fund the investments but is taking shareholder approval because they exceed the limits approved under corporate law. Continue Reading →
Economy+Policy
RBI lowers liquidity but leaves rates unchanged
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The Reserve Bank of India announced its quarterly monetary policy today. It left benchmark rates unchanged, like the repo rate (the rate at which banks borrow from the RBI) and the reverse repo rate (the rate at which banks park their surpluses with the RBI. What it did was to hike the cash reserve ratio by a good 75 basis points, taking out Rs 36,000 crore from the banking system. Cash reserve ratio is the proportion of deposits that banks must set aside as a reserve. Apart from this, the RBI has not made any changes and the Annual Policy will be announced on April 20. Continue Reading →