Sat, 28th May 2016

Anirudh Sethi Report


Archives of “shareholding” Tag

Sebi: Shouldn’t Wockhardt Be Put Into The “T” Group?

Thinking-TRADERAfter hitting a lifetime high of Rs 2168 in May 2013, the Wockhardt scrip has been hammered out of shape. It hit a low of Rs 340 three weeks ago and now hovers between Rs 449 and Rs 470. Huge volumes are noticed daily in both exchanges but the big-giveaway of manipulation is delivery of 11 per cent on most days.
The stacks are against the trader. 74 per cent Equity with Promoters and 15 per cent with FII/MF/DIIs means there is little chance of a fund exiting without hitting a lower circuit or a large buyer coming and hitting an upper circuit. Which such lopsided shareholding it might be better to put the scrip into the T group and stop the 5 lower circuit and 3 upper circuit type of moves.
The Q1 results inspite of known problems-the USFDA and UKMHRA import alerts for the Waluj facility, the DCGI banning sale of Spasmoproxyvon in the country and now chikalthana facility too under USFDA observations, the numbers were bad.
Q1 consolidated sales were up 1 per cent, and EBIT and PAT declined by 13 and 14 per cent respectively in the 3 months to June 2013. The overall operations too have turned out to be bad.

Wockhardt’s International Business contributed 82% of the Total Revenues during the quarter. Read More 

MMTC selloff today, floor price fixed at Rs 60

MMTC-RAPEThe government will kick start its divestment programme for this fiscal with a 9.33% stake sale in MMTCBSE 2.92 % on Thursday, which may fetch it around Rs 600 crore. 

“We will divest a 9.33% stake in MMTC on Thursday through OFS route,” said Disinvestment Secretary Ravi Mathur after an Empowered Group of Ministers ( EGoM) headed by P Chidambaram gave its approval. The company informed the stock exchange that the floor price for the offer will be Rs 60. The government, which holds a 99.33% stake in the company, will offload 9.33 crore shares. 

MMTC’s scrip closed at Rs 211.45 on BSEup 2.92%. The stake sale will also help the company to meet market regulator Sebi’s minimum public shareholding norm. The stake sale, which was originally slated to take place in March 2013, was deferred due to concern over valuations. In the 2012-13 fiscal, MMTC posted a loss of Rs 70.62 crore, due to 57% dip in revenues during the period as compared to the previous fiscal.  Read More 

New Bank Licences-RBI Guidelines (Full Text )

BREAKING NEWS-FLASHThe Reserve Bank of India today released on its website, clarifications to queries on the Guidelines for Licensing of New Banks in the Private Sector.

The Reserve Bank of India released the Guidelines for Licensing of New Banks in the Private Sector on its website on February 22, 2013. Following the issue of the guidelines, RBI issued a press release on March 7, 2013 inviting queries from intending applicants seeking clarifications on the guidelines and also stated that considering that the clarifications provided would be of wider interest and use for all intending applicants, the Reserve Bank would post the clarifications on its website.

In all, RBI has received 443 queries from 34 individuals/ organisations. Upto the end of March 31, 2013, RBI had received 71 queries from 9 individuals/ organisations. As many as 330 queries from 19 individuals/ organisations were received between 5th to 10th April, 2013, of which 240 queries from 10 individuals/ organisations were received on April 10, 2013, i.e. on the last date. Further, 42 queries were received after April 10, 2013. The clarifications to all the queries have been provided. A few queries have been clubbed with other related queries for the sake of clarity and continuity.

A good number of queries have brought out issues relating to the provisions in the guidelines on the eligible promoters, ‘fit and proper’ criteria, corporate structure of the Non-Operative Financial Holding Company (NOFHC), foreign shareholding and on transition time to the new structure. While interpreting the replies, it must be kept in view that though the replies are specific to the questions, these must be seen in the wider context of the guidelines. Read More 

Rohan Murty, a multi million-dollar executive assistant

Thirty-year-old Rohan Murty, the son of Infosys founder Narayana Murthy, will probably be one of the wealthiest executive assistants in the country.

His 79,49,782 Infosys shares were worth a whopping Rs 1,911 crore (around $347 million) at Friday’s closing price of Rs 2,407.60 on the Bombay Stock Exchange.

Interestingly, Rohan has more shares in Infosys than parents Narayana Murthy and Sudha Murthy, who own 23,79,672 and 73,14,660 shares, respectively, according to the shareholding pattern data on the BSE.

Among the promoters, only sibling Akshata Murthy (81,06,412), Infosys co-founder Nandan Nilekani (83,45,870) and his wife Rohini Nilekani (80,78,174) own more shares than Rohan in the company.

This probably explains why the father-son duo has agreed to draw a token compensation of Re 1 a year each.

Rohan holds a PhD in computer science from the University of Harvard and is a junior fellow in the Society of Fellows at the Harvard University. His graduate school work at Harvard was supported by a Siebel Scholars Fellowship and a Microsoft Research Fellowship, Rohan says on his Harvard research page.

Tata comm NEOTEL stake sale on cards -Unlocking value

NEOTELIndustry speculation suggests that Vodacom and MTN are in separate discussions with Neotel to acquire the fixed line operator.

One industry source said that Vodacom, MTN and Dimension Data were all in discussions with Neotel to potentially acquire a controlling stake in the company. Dimension Data (through Internet Solutions), however, is rumoured to have fallen out.

Another well placed industry source confirmed the acquisition rumours, saying that the discussions between Neotel and MTN, and Neotel and Vodacom are at an advanced stage. He added that the discussions to date have been positive, and that a deal is definitely possible.

Neotel holds great value for Vodacom and MTN, partly because of its well-established fibre network and its valuable frequency spectrum. Read More 

FII holding in BSE 500 stocks highest in five years

Foreign investors have raised their shareholding in BSE 500 stocks to the highest level in the last five years during the quarter ended March 31.

Foreign institutional investors, or FIIs, have raised their shareholding in the BSE 500 companies that make up nearly 93% of the total market capitalisation on BSE and all 20 major industries of the economy

According to the quarterly analysis on BSE 500 companies shareholdings for the quarter ended March – 2013 by Emkay Research, FIIs holding in BSE500 companies rose to 22.2%, the highest in at least 21 quarters during quarter ended March 13.

FIIs bought shares worth $10.2 billion whereas mutual fund and bank finance and insurance (BFI) were sellers to the tune of $1.4 billion and $5 billion respectively during the quarter ended March 2013. Read More 

India Inc to get freedom on use of options

ThumpIndia Inc will soon have greater flexibility in structuring deals through use of options, with Law Minister Kapil Sibal clearing a put & call option regulation framed by the Securities & Exchange Board of India. This means, for mergers & acquisitions, listed firms could use such options that create a right to buy/sell more shares in the future. The issue was stuck with the ministry for nine months.

Sebi was earlier opposed to put & call options on the ground these encouraged speculation. It had rejected the use of these in two deals, including one between Cairn and Vedanta in August 2010. Sebi also felt the arrangement did not conform with the requirements of spot-delivery contract or a derivative contract under Section 18A of the Securities & Contract Regulation Act. A similar arrangement between two investors in case of a firm, Vulcan Engineering, was also rejected by Sebi as the contracts were to be exercised at a future date, and so did not qualify as spot-delivery contracts. Read More 

Sebi fines RIL entity Rs 11 cr in IPCL insider trading case

OMG-SPAINIn an over six-year old insider trading case involving shares of Reliance Industries’ erstwhile subsidiary IPCL, market regulator Sebi today imposed a penalty of Rs 11 crore on Reliance Petroinvestments Ltd. 

Pronouncing Reliance Petroinvestments Ltd (RPIL) guilty of violating the insider trading regulations with regard to its dealings in shares of Indian Petrochemicals Corp Ltd (IPCL) in early 2007, Sebi said that RPIL made profits of over Rs 3.82 crore through these trades.  Read More 

FIIs increase stake in 18 Nifty firms to record high

The stake of foreign institutional investors (FIIs) in 18 of the Nifty-50 companies has touched historic highs, according to the latest quarterly shareholding information filed by these companies.

This is as compared to a total of six companies where the stake was at a record high in the year-ago period. Besides, their stake in seven other companies was nearing record highs in the March quarter, the data suggest.

Their holdings in six companies – HDFC Bank, Lupin, Mahindra and Mahindra (M&M), NTPC, Axis Bank and DLF – rose between one and six percentage points during the quarter. In the private sector Axis Bank, state-owned power company NTPC and real estate major DLF, FIIs raised their holding by subscribing to shares via private placements and offer-for-sale and used the open market purchase route to raise stake in HDFC Bank, Lupin and M&M.

Record flows
A record net inflow in Indian equities in the financial year ending March 2013 helped foreign investors widen their grip on Indian equity. FIIs pumped in more money in FY13 than in any year since they were permitted to invest in these 21 years ago. They were net buyers by $25.8 billion or Rs 1.4 lakh crore during the financial year, according to data from the stock market regulator, the Securities and Exchange Board of India (Sebi). Read More 

FIIs bullish on Tata group; up stake in 8 cos in Jan-Mar quarter

SAY HELLO TO TAAForeign Institutional Investors (FIIs) raised their exposure in eight companies of the salt-to -software Tata group that included TCS and Tata Communications during the quarter ended March 31, 2013.

At the same time, they trimmed holdings in five other companies of the group such as Tata Steel, Tata Motors and Tata Power.

An analysis of 13 listed firms of the Tata conglomerate which declared their shareholding pattern during January-March shows that FIIs have increased stakes in eight entities.

The $100-billion Tata group garners over 58% of its revenue from overseas operations. Read More