Govt to re-examine Gare Palma IV/2 3 coal block bids

The Coal Ministry has written a letter to the nominated authority who is conducting the coal blocks' e-auction asking for re-examination of the process of these coal blocks.

The government has decided to re-examine bids made for three coal blocks after reports suggested problems with the bidding process. The Coal Ministry has questioned the bid process for these coal blocks which were successfully bid by companies like BALCO which won Gare Palma IV/1,  Jindal Power won Gare Palma IV/2 & 3 coal blocks and BS Ispat won three Marki Mangli coal blocks.

The Ministry has written a letter to the nominated authority who is conducting the coal blocks' e-auction asking for re-examination of the process of these coal blocks.

Sources say the nominated authority was to sign agreement papers for the successful bidders of these coal blocks and it will not sign these agreements until the re-examination process is done.

Interestingly, these coal blocks are the ones which have bid the lowest and have won the coal blocks. Jindal Power won Gare Palma IV/2 & 3 at Rs 108 per tonne and Marki Mangli was won by BS Ispat at the lowest price of Rs 918 per tonne in the unregulated sector.

23.08 | 0 komentar | Read More

Priority Sector Lending norms negative for foreign banks

The report is a recommendation given by a working group, so it is not yet the law. The priority sector used to take away 40 percent of the total loans given and there is a status quo over that.

The Reserve Bank of India today released its report on Priority Sector Lending guidelines. CNBC-TV18's Latha Venkatesh gives a lowdown on its details.

The report is a recommendation given by a working group, so it is not yet the law. The priority sector used to take away 40 percent of the total loans given and there is a status quo over that.

It has been broken up into many minor segments like the amount for small farm loans and agriculture loans so many of those divisions remain. Some divisions, infact, have been added which is perhaps not very healthy because it reduces the bankers' elbow room.

The big takeaway is that the working group does not recommend any change to the responsibilities of foreign banks. Foreign banks were hoping to wriggle out of the whole thing to some extent at least if exports were included. Until very recently they used to lend to a lot of exports and exports were priority sector.

Now, the working group has very kindly admitted that exports is a priority sector but it adds that two percent of the loans given to exporters can be considered priority sector. So, the remaining 38 percent has to be met from non-export areas which is not very easy for foreign banks that have less that 20 branches. However, they have a little more time, until 2020 to conform to the priority sector guidelines and banks with over 20 branches will have to do so by 2018. Agriculture target of 18 percent has been redefined in which farm credit gets eight percent and the remaining 10 percent maybe given to agricultural infrastructure which maybe a bit of a relief because in that case, one can even lend to minor irrigation works which a lot of big companies undertake. The other big contribution coming from the working group is the starting of what are called Priority Sector Lending certificates.

The best example of foreign banks who don't have as many branches, can buy these priority sector lending certificates which are issued by those who have already met that target. That is one of the biggest innovative schemes which actually governor Rajan had recommended even before he became the governor.

23.08 | 0 komentar | Read More

Ola Cabs to complete deal with TaxiForSure this week: CEO

Ola Cabs has its competitor TaxiForSure in a USD 200 million deal, which is the second largest deal in the e-Commerce sector.

Bhavish Aggarwal Co-Founder & CEO Ola Cabs speaking about the deal to CNBC-TV18 said it was a cash and equity deal and would likely complete the deal within this week.

The company at present is focusing on growth but may look at IPO at some point in time, said Aggarwal.

Below is the transcript of Bhavish Aggarwal's interview with CNBC-TV18's Nayantara Rai and Kritika Saxena.

Nayantara: Can you just confirm for us what stake you are going to hold in TaxiForSure?

A: We are acquiring the complete company. So, 100 percent.

Kritika: There is Accel Partners, Bessemer Venture Partners and Helion Venture Partners which were invested in TaxiForSure, what is the stake that TaxiForSure's investors will hold in Ola after the deal is completed?

A: I can't tell you the exact number. It is a cash and equity deal. Most of the investors will get equity on Ola.

Kritika: Can you breakup the structure? How much in cash and how much in equity?

A: I can't share the exact numbers but it is a mix of both cash and equity.

Kritika: This does give you a majority versus your peers, I am assuming there is Uber and Meru which are your direct competitors. What is the size of the online market so far because the numbers have been slightly dwindling over the last couple of quarters? After the deal goes through what will be your share?

A: The overall taxi industry in India is around USD 7-8 billion annually and that is growing aggressively. The broader mobility market is even larger, it is a huge broader mobility market if you include other mobility means. The online share of that is around 5-6 percent right now. However that is increasing very fast.

Ola is the largest player, TaxiForSure is the second largest player and both Raghunandan G and I have a shared vision of how we want to grow the urban mobility opportunity in India. Raghunandan has built a great team at TaxiForSure and that is the reason we want to work together, that is the central reason we came together.

Nayantara: Going forward are you going to be looking at further acquisitions to make sure that your market share indeed stays where it is and you can grow it? The other thing I wanted to ask you was the timing of this deal. It is coming at a time when taxi aggregators, there is an overhang if I may say so on tax aggregators after the Uber rape case, lot of states had said may be they were going to ban them, not ban them, they have been making headlines for a lot of wrong reasons.

A: Safety is central focus for us. We have worked with the states across the country to implement whatever safety requirements are needed to be implemented, in some cases go much beyond that. For example all our drivers including TaxiForSure drivers are background checked, third party verified, police crime record verified, we have done all of that for all our drivers.

We have built features in our app where you have an SOS button inside the app itself. In addition to this transport being a concurrent subject each states has its own unique laws and we are working with each of these state authorities to make sure we are compliant and working with them.

23.08 | 0 komentar | Read More

Budget 2015: Fine Print Analysis

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

Published on Mon, Mar 02,2015 | 20:52, Updated at Mon, Mar 02 at 20:52Source : Moneycontrol.com 

Seemingly giving in to corporate India's demands, the Government plans to reduce the corporate tax rate from 30 per cent to 25 per cent over the next four years. How has this, along with several other key policy pronouncements and tax proposals in the Union Budget 2015 gone down with the experts? Attached is the Budget 2015 analysis by EY, PwC, BDO, ELP, Khaitan & Co. and JSA respectively.

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23.07 | 0 komentar | Read More

Here are hits misses of Budget 2015 for banking sector

The new government's maiden Budget gave a shot in the arm to the banking sector at large, but it did leave state-run banks in a vulnerable position. CNBC-TV18's Ritu Singh reports on the hits and misses of Budget 2015 as far as the banking community is concerned.

The new government's maiden Budget gave a shot in the arm to the banking sector at large, but it did leave state-run banks in a vulnerable position. CNBC-TV18's Ritu Singh reports on the hits and misses of Budget 2015 as far as the banking community is concerned.

23.07 | 0 komentar | Read More

Jubilant Life gets USFDA nod for normal anti-asthma tablets

As on December 31, 2014, the company had a total of 781 filings for formulations of which 333 have been approved in various regions globally.

Drug firm Jubilant Life Sciences  has received final approval from the US health regulator for generic Montelukast Sodium chewable tablets used in the treatment of asthma and to relieve symptoms of seasonal allergies.

"The company has received abbreviated new drug application (ANDA) final approval from the US Food and Drug Administration (USFDA) for Montelukast Sodium chewable tablets..." Jubilant Life Sciences said in a statement. The approval is for the product in the strengths of 4 mg and 5 mg, it added.

"The total market size for Montelukast tablets as per IMS is USD 83 million per annum," Jubilant Life Sciences said. The tablets are generic version of Merck's Singulair chewable tablets used for the treatment of asthma and to relieve symptoms of seasonal allergies, it added.

As on December 31, 2014, the company had a total of 781 filings for formulations of which 333 have been approved in various regions globally," Jubilant Life Sciences said.

"This includes 72 ANDAs filed in the US, of which 35 have been approved and 46 dossier filings in Europe. So far, we have received 10 ANDA approvals during FY2015," it added. Shares of Jubilant Life Sciences today closed at Rs 159.30 on BSE, down 0.22 percent from previous close. 

Jubilant Life stock price

On March 02, 2015, Jubilant Life Sciences closed at Rs 159.30, down Rs 0.35, or 0.22 percent. The 52-week high of the share was Rs 222.00 and the 52-week low was Rs 116.10.

The company's trailing 12-month (TTM) EPS was at Rs 27.17 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 5.86. The latest book value of the company is Rs 108.82 per share. At current value, the price-to-book value of the company is 1.46.

23.07 | 0 komentar | Read More

DIPP operationalises hike in FDI in insurance

The hike in foreign direct investment (FDI) limit in the insurance sector was allowed through an Ordinance issued last year-end. A Bill to replace it is likely to be presented in the Lok Sabha on Tuesday.

The government decision on hiking FDI cap in the insurance sector to 49 percent has come into operation with Commerce and Industry Ministry Monday issuing a press note in this regard.

The hike in foreign direct investment (FDI) limit in the insurance sector was allowed through an Ordinance issued last year-end. A Bill to replace it is likely to be presented in the Lok Sabha on Tuesday.

"The government has reviewed the foreign investment policy on the insurance sector. Accordingly, consolidated FDI policy, effective from April 17, 2014 is amended," said the Press Note from the Department of Industrial Policy and Promotion (DIPP).

Press notes are official documents issued by DIPP through which new FDI policies or changes in existing ones come into effect.

The FDI cap in the sector has been hiked to 49 percent and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR. A foreign player can now invest in insurance company, insurance brokers, third party administrators, surveyors and loss assessors and other insurance intermediaries appointed under the provisions of IRDA Act 1999. 

23.07 | 0 komentar | Read More

Adlbas IPO opens on Mar 10; Rs 221-230/share price set

The Manmohan Shetty-promoted company will sell up to 2,03,26,227 equity shares of face value of Rs 10. The issue comprises a fresh issue of 18,326,227 equity shares and an offer for sale of 2,000,000 equity shares by Thrill Park Limited.

Adlabs Entertainment plans to raise upto Rs 467 crore through its initial public offering that opens on March 10. The company, which runs the Imagica amusement park near here, today said it has fixed a price band of Rs 221-230 per share. The company said it is offering a discount of Rs 12 on issue price to all eligible retail investors.

The Manmohan Shetty-promoted company will sell up to 2,03,26,227 equity shares of face value of Rs 10. The issue comprises a fresh issue of 18,326,227 equity shares and an offer for sale of 2,000,000 equity shares by Thrill Park Limited.

At the lower band of Rs 221, the issue will raise Rs 449.20 crore while at the upper band of Rs 230, the IPO will mop up Rs 467.50 crore.

The IPO will close on March 12. The minimum Bid lot is 65 equity shares and in multiples of 65 equity shares thereafter. The issue constitutes 25.44 percent of the post-issue paid-up equity share capital of the company.

The issue is being made through the book building process wherein at least 75 percent of the issue shall be allotted on a proportionate basis to qualified institutional buyers. The proceeds of the IPO will be used partly to the company's debt, which now stands at Rs 1,100 crore.

"We are planning to retire Rs 350 crore debt after the IPO and the balance debt would be paid over a period of five-six years," Adlabs chairman Manmohan Shetty told reporters here.

The global coordinators and lead managers to the issue are Deutsche Equities and Centrum Capital  and Kotak Mahindra Capital Company . On his future plans, Shetty said: "We plan to develop two similar parks, one each in the NCR of Delhi and another in Hyderabad over next few years." 

23.07 | 0 komentar | Read More

2015 Geneva Motor Show preview

The all-important Geneva Motor Show 2015 is almost and several manufacturers have already revealed their offerings before the show. Many have also teased their cars with the all important showcase happening at the show. Here are some makes that will be showcased and listed as 'only for Europe' vehicles at the Geneva Motor Show 2015.

Aston Martin

Aston Martin previewed its one of a kind Vulcan sportscar a couple of days before the Geneva Show. Only 24 units of this car are to be built and even these will be for track usage... Read More

23.07 | 0 komentar | Read More

Budget impact: Fitch sees mixed impact on India’s sovereign rating

"The medium-term fiscal consolidation strategy is less aspiring than in the past, which is negative from a sovereign rating perspective," Fitch said. Global rating agencies rule out upgrade for India within a yr

Global rating agency S&P today ruled out a rating upgrade for India within a year while Fitch said the government's fiscal consolidation strategy spelt out in Budget is "less aspiring" than in the past.

After the Budget, Moody's, Crisil and Care Ratings had red-flagged the country's delayed fiscal consolidation roadmap. Standard & Poor's Senior Director (Asia-Pacific Sovereign Ratings) Kim Eng Tan said: "In terms of the structural effects of the budget, we see the improvement has been not as great as it could have been...

We don't see the rating going up in the next year or so". Fitch Ratings said while the budget shows this government's continued orientation on implementation of structural reforms, it could have been more ambitious on the fiscal front, especially given India's high public debt burden.

"The medium-term fiscal consolidation strategy is less aspiring than in the past, which is negative from a sovereign rating perspective," Fitch said.

Rolling out a new fiscal consolidation roadmap, Finance Minister Arun Jaitley had said in the Budget that fiscal deficit would be brought down to 3.9 per cent of GDP in 2015-16, and then further to 3.6 per cent and finally to 3 per cent by 2016-17 and 2017-18, respectively.

The Finance Minister had said the government would achieve the 3 per cent fiscal deficit target by 2017-18 as against 2016-17 as it intends to increase public investment to boost growth. Moody's said the Budget has prioritised growth over fiscal consolidation but it may not have any impact on the country's sovereign rating.

"The dilution of an already modest deficit reduction plan underscores its view that India's structural constraints, such as a low tax revenue base and rigidity in expenditures, make fiscal consolidation difficult...," Moody's said. The Budget prioritises growth over fiscal consolidation, Moody's said, adding that it was "unlikely to materially change" a rating constrained by "weak fiscal metrics".

23.07 | 0 komentar | Read More