Thursday, 4 December 2014

RBL Bank plans to launch IPO in next three quarters

Premji eyes Rs 600 crore stake in HDFC Life

Tech czar Azim Premji is in talks to buy under 5% stake in HDFC Life for a little over $100 million, or Rs 600 crore. Premji Invest, the investment arm of the Wipro boss, is discussing acquisition of shares from HDFC in a secondary transaction, people directly familiar with the matter said. 

India's second largest private life insurance company is a joint venture with UK's Standard Life Plc, which holds the maximum permissible 26% stake. HDFC plans to divest a small part of its 72.37% stake in the life insurer as part of its regular fund raising plans, sources cited earlier added. 

Premji is buying into the potential high growth story of life insurers in a market with abysmally low penetration. India's life insurance penetration is estimated at 3.1% and that of insurance products in general at 3.9%. Notwithstanding short-term blips over regulatory revamp, the industry asset under management is expected rise at over 20% annually. 

An emailed query to Premji Invest chief investment officer Prakash Parthasarathy remained unanswered at the time of going to press, while HDFC could not be reached for immediate comments. 

HDFC Life became the country's first private sector insurance company when it was incorporated 14 years ago. It operates over 500 branches and has a multi channel network consisting of insurance agents, bancassurance partners, brokers and online platform selling its products and services. The company's AUM was pegged at Rs 50,000 crore in the last fiscal. 

The large M&A deals in the life insurance sector saw Japanese giants Nippon and Mitsui Sumitomo buying shares in Reliance Life and Max Life. 

Premji Invest manages assets worth more than $2 billion, investing into public and private equities and real estate. Premji, 69, is amongst India's richest with net worth estimated at $16 billion. The software tycoon has been cutting bigger, aggressive deals as revs up the consumption related investments in a recovering economy. 

Source : Economic Times.

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We deal in over 60 unlisted companies with 15 years of experience .
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Thursday, 9 October 2014

Thomas Cook India partners with Ratnakar Bank

India's leading integrated travel and travel related financial services company Thomas Cook (India) Ltd. has announced its partnership with RBL Bank (also known as Ratnakar Bank), to distribute its innovative multi-currency Borderless Prepaid Card via the bank's 185 branches across India; offering India's outbound consumers enhanced access and convenience.

The collaboration expands the reach of Thomas Cook India's Borderless Prepaid Card via the extensive network of RBL Bank, across India's metros, mini metros, emerging Tier II & III regional markets and rural India.

The Borderless Prepaid Card offers travellers the advantage of loading up to eight currencies on a single prepaid card (US Dollars, British Pounds, Euro, Australian Dollars, Canadian Dollars, Swiss Francs, Singapore Dollars & Japanese Yen); thus empowering the cardholder with immediate access to destination currency. Unique consumer-centric features on the card include instant loading; emergency cash disbursement and free replacement card in case stolen or lost and 24x7 global emergency assistance via toll free access in over 80 countries. The chip and pin features of the Borderless Prepaid Card safeguards the security of the traveller, ensuring smooth travel across countries.

Mr. Ritesh Pai, Senior Vice President and Head – Direct Banking Channels, RBL Bank said, "RBL Bank is privileged to be a part of the distribution network of this pioneering innovation. The Thomas Cook India and MasterCard joint-invention of the EMV Compliant Borderless Prepaid Card will be of substantial benefit to India's tech-savvy and new-age travellers. With increasingly large number of Indians commuting abroad for the purpose of business, leisure and education, a single card with provisions for 8 currencies will certainly increase travellers' convenience and enhance security as well. We will leverage our bank's network of branches across the country to market this outstanding product to a large number of our patrons."

Commenting on the partnership, Mr. Mahesh Iyer, COO, Foreign Exchange, Thomas Cook (India) Ltd. said, "Thomas Cook India is truly delighted to partner with RBL Bank, one of India's fastest growing commercial financial institutions, to offer India's outbound travellers easy access to our unique Borderless Prepaid Card. Our collaboration with RBL Bank takes our legacy as innovators & pioneers in the travel and payment solutions business a definite step forward."

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Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Catholic Syrian Bank completes allotment

The share transfer of Catholic Syrian Bank has been completed with the allotment of 23.2 per cent equity shares to 20 investors, amounting to over Rs 157 crore, a top official said today.

"In all 87,44,090 shares of the bank at the rate of Rs 180 per share, each with face value of Rs 10 and premium of Rs 170, amounting to Rs 157,39,36,200 were allotted to the new investors, the bank's Managing Directer and CEO Rakesh Bhatia told PTI here.

The share transfer issue of the CSB was pending over two decades, Bhatia said.

The take over bid of the bank in 1994 by Bangkok-based NRIs Siam Vidhya Group, headed by Surachan Chansrichawla, by acquiring bank's 19,59,016 shares out of a total of 54,14,000 shares, ran into rough weather with the Catholic Archdiocese coming out against it.

SVG had acquired about 20 per cent of shares at the rate of Rs 85 per share in 1994.

The then bishop of Thrissur diocese Mar Joseph Kundukulam had threatened to withdraw all the deposits of Christian institutions and the community, running into several crores of rupees, if the bank directors did not desist from their move of transferring their shares to the NRI firm.

A Catholic Syrian Bank Protection Committee was also formed under the leadership of the Bishop and it moved a petition in the Company Law Board and Supreme Court against the takeover bid.

The apex court on May 2, 2008 had directed SVG to divest CSB's stakes in excess of 10 per cent in its possession by end of March 2010. After that, the CSB could transfer the shares, it had said.

Among the 20 new investors of the bank included Indorama Corporation Pvt Ltd, Singapore (3.29 per cent), India 2020 Fund II Ltd, Mauritius (3.29 per cent), M A Yusuf Ali, Abu Dhabi (4.97 per cent), he said.

Ali had earlier acquired 4.98 per cent of shares raising his total stake in the bank to 9.95 per cent.

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Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
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Ratnakar hires four banks for Rs1,200 crore IPO



Ratnakar Bank Ltd (RBL) has appointed four investment banks for its Rs.1,200 crore initial public offer (IPO), which is expected to hit the market before March 2015, three people close to the development said. The bank is expected to file its documents with the market regulator as early as October. The bank has mandated Kotak Mahindra Capital Co. Ltd, Citigroup Inc., Standard Chartered Plc and Morgan Stanley to handle the issue. Mint had reported on 1 July that the private sector lender plans to dilute about 10% stake through the IPO, which values the bank at Rs.12,000 crore. “Things have got better macroeconomically. Confidence is back in the market, interest rates have peaked and the rupee is stable. The macroeconomic environment is in favour of banks and a lot of investors are interested to buy stake in the bank,” one of the persons mentioned above said. An RBL spokesperson did not respond to an email seeking comment. Though RBL has no immediate requirement for fresh capital, the IPO would help the bank comply with the Reserve Bank of India (RBI) guidelines issued last year that directed all banks to list within three years of starting business. Over the last three years, global and local private equity and development funds have invested over Rs.1,400 crore in the bank in three tranches. Housing Development Finance Corp. Ltd, Norwest Venture Partners, Samara Capital, Beacon Capital, Faering Capital, TVS Shriram, Cartica Capital, Ascent Capital, Aditya Birla Private Equity, IDFC’s Spice Fund and ICICI’s Emerging India Fund are among its shareholders. Most investors, however, may continue to stay invested, the person quoted above said. “It is unlikely that any of the existing investors will sell their investments in the bank because none of them have stayed invested for more than three-and-a-half years. Some of the bank’s shareholders are development finance institutions, which typically hold their investments for many years,” he said. As recently as 10 April, RBL raised Rs.328 crore by selling fresh shares to UK government-owned development institution CDC Group Plc and Asia Capital and Advisors Pte Ltd along with existing shareholders International Finance Corp. and Gaja Capital. Though RBL is an old private sector bank established in 1943, it has accelerated its growth under a new management led by managing director and chief executive officer Vishwavir Ahuja since 2010. In the last three years, the bank has shed its regional image, opened branches and attracted new investors. The share sale, if it materialises, will make RBL the 41st publicly traded bank in India. The IPO comes at a time when secondary markets are buoyant and interest in primary markets is starting to pick up. Vinod Wadhwani, director at Ambit Corporate Finance Pte Ltd, expects a robust investor response to the IPO. “Given that most of the public sector banks are reeling under the huge pressure of non-performing loans, investor interest in public sector banks is limited. There is a dearth of new and quality paper supply in the private sector as well. Private sector banks such as Ratnakar Bank, which has a competitive management team in place, is expected to continue its growth trajectory. Hence, the investor response to the IPO is expected to be robust,” Wadhwani said. Since mid-May, after the election results were announced, the Sensex has risen about 12.79%. Bank stocks have also been gaining in anticipation of better economic prospects. Since the beginning of 2014, the BSE’s Bankex has gained 42.53% while the benchmark Sensex has gained 28.51%. In an interview with Mint in June, Rajeev Ahuja, head of strategy at the bank, had said that no single investor holds more than 5% in RBL. An IPO will hence mean a further reduction in stakes of existing investors. Besides, it will also give liquidity to employees for their stock options and probably attract more large investors who would want to buy into a listed bank. As on 31 March, the bank had a loan book of Rs.9,835 crore, according to RBL’s website. In fiscal year 2014, it added 51 branches and a similar number will be added in the current fiscal year, Ahuja had said. As on March 2014, RBL had 185 branches and 350 ATMs with more than 500,000 clients. Overall, the bank is targeting growth of 40-50% in advances and deposits over the next couple of years, Ahuja said. For the year ended March 2014 the bank’s net advances grew 54% while deposits rose 39%.


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Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .



Otis appoints Managing Director



Otis Elevator Company, a unit of United Technologies Corp, appointed Sebi Joseph as Managing Director of Otis Elevator Company (India) Ltd. In this role, Joseph will lead Otis’ business operations throughout India, the world’s second largest elevator market. He started his career in 1987 as an engineering trainee and spent 16 years in various positions of increasing responsibility, including General Manager, Karnataka operations. From 2003 to 2007, he was President and General Manager of Otis Philippines and in 2008 was appointed Director, Marketing, Sales and Communications for Otis South Asia Pacific and Gulf Area.


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

TamilNad Mercantile Bank New Scheme

Tamilnad Mercantile Bank today inroduced the 'TMB Little Super Star savings bank scheme' exclusively for children in the age group of 11 to 18 years.

The scheme was launched at a function at the Kamaraj College here by Mayor A P R Antony Grace and presided over by H S Upendra Kamath, MD & CEO of the bank.

New Passbooks were distributed on the occassion to minor children who opened accounts under the new scheme.

The Scheme was launched simultaneously at all 10 Regional offices of the bank

Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Tax Implication of Finance Act 2014 on Unlisted Shares


Before the annual Budget 2014-15 was introduced, the shares of listed company or private company held for over 12 months were categorised as long-term capital asset (LTCA). But the Finance (No 2) Act 2014 has amended this position with effect from April 1, 2014, and now only listed shares, if held for over 12 months, would be considered as LTCA. The unlisted shares must be held for over 36 months to qualify as LTCA.
The amendment offered relief to those holding unlisted shares for more than 12 months and less than 36 months, and selling them between April 1 and July 10, 2014. The amendment provided that gains on such sales would be considered long-term capital gain (LTCG). Accordingly, listed shares if held for less than 12 months or unlisted shares held for less than 36 months would be termed as short-term capital asset (STCA).
Tax implications are different for LTCG and short-term capital gain (STCG), depending upon the duration of the asset.
Tax implication on LTCG
LTCG is not taxable under the Income Tax Act (the Act) if securities transaction tax (STT) has been paid on the sale of shares. If STT is not paid on the sale of the shares, LTCG is computed by reducing from the sales consideration the indexed cost of acquisition and improvement and expenditure incurred in the transfer. The LTCG so computed is taxable at 20%. For listed securities, in case the tax so payable exceeds 10% of LTCG computed without considering the indexed cost of acquisition, the excess is to be ignored. The tax amount would have to be increased by education and higher education cess at 3% and surcharge as applicable.


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .


Thursday, 7 August 2014

Buying shares in the following companies :

Contact  :

Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .


We are buying shares in the following companies at the rates mentioned below.

Share Name Price
ICICI Pru Life Rs. 180
ICICI Lombard General Insurance Rs. 120
Ratnakar Bank Limited Rs. 160
Catholic Syrian Bank Rs. 155
Tamilnad Mercantile Bank Rs. 65000
Bharat Nidhi Rs. 5250

NBI Industrial Finance Limited

NBI Industrial Finance Limited ,
Strand Road,
Kolkata-700001

NBI Industrial Finance Limited was originally incorporated in Lahore in 1935 as The New Bank of India Limited. Dr. Ganeshi Lal Aggarwal and Mr. Kohli were the original promoters.


After 1947 the Registered office was shifted to New Delhi. To provide for the losses due to partition the face value of the share was reduced from Rs. 10 to Rs. 5 . Later, The New Bank of India Ltd. was nationalised. Most of the non promoter shareholders took cash compensation.


The Registered Office of the Company was shifted from Connaught Place, New Delhi to Strand Road , Kolkata. The share's face value was consolidated to Rs. 10.


Share Capital : Rs. 1 cr 12 lakh

Reserves : Around Rs.11 cr

 NBI Industrial Finance Company is , now , the investment holding Company of Bangurs ( Benu Gopal Bangur of Shree Cement group ). They were the promoters of New Bank of India at the time of nationalisation. As the Company has holding of Shree Cement Ltd. it is expected that the market worth of its holdings is many times the book value . It holds , inter alia , around 8 lakh 50,000 shares of Shree Cement ( Book Value around Rs. 2 Crore 40 lakh ).


The Executive Chairman of Shree Cement Limited Benu Gopal Bangur is Chairman NBIIndustrial Finance. Other associate companies of BG Bangur include The Didwana Industrial Corporation Limited ;Khemka Properties Pvt Limited ; Digvijay Finlease Limited etc.


There have been numerous complaints among share holders of non receipt of Annual Report..


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Gujrat NRE issues bonus shares

Gujarat NRE Mineral Resources Limited


Bonus Issues (26.5.2013)
Board Recommends Bonus Shares (26.5.2013) 
Keeping with Gujarat NRE Group’s policy towards creating value for its investors, the Board of Directors proudly recommends issue of Bonus Shares in the ratio of 1:2 i.e. one equity share of Rs. 10/- each to be credited as fully paid-up for every two existing equity shares of Rs. 10/- each of the Company.
In the interest of the Company and its non-promoter shareholders, the promoter of the Company Mr. Arun Kumar Jagatramka, his family members and the entities belonging to the group, have decided to waive their respective entitlements to receive Bonus Shares as aforesaid. Accordingly, the Bonus Shares would be issued to non-promoter shareholders only. Consequently, post issue of Bonus Shares, the stake of the promoter group in the Company would come down from present 89% to around 82%.
The aforesaid recommendation of Bonus shares is subject to the shareholders' approval at the next Annual General Meeting of the Company to be held on 28th June 2013 and if approved, bonus shares would be issued to the members whose names appear as on the Record Date to be fixed by the Board at a later date.
OFCB holders to get Bonus Shares on conversion (26.5.2013)
The Board is pleased to extend the benefit of Bonus Shares (1:2) to the holders of Optional Fully Convertible Bonds (OFCBs) upon exercise of option of conversion of Bonds before 16.8.2013. Hence, on the conversion of One Bond of Rs. 30,000/-, the holder will get 3000 equity shares of Rs. 10/- each (2000 equity shares towards conversion and 1000 equity shares towards bonus) instead of 2000 equity shares.
Bonus Issues (23.06.2014)
The Board has recommended issue of Bonus Shares in the Ratio 1:5 i.e.; one bonus share for every five existing shares to the non-promoter shareholders for the approval of the shareholders at the next Annual General Meeting to be held on 23rd August 2014.


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .