Abhishek Securities

While several private equity-backed companies have sold shares to the public this year, several others that were expected to have deferred or abandoned their plans, denying exits to their private equity, or PE, investors. Warburg Pincus-backed ACB (India) Ltd; TPG and Actis-backed AGS Transact Technologies Ltd; Tano Capital-backed logistics firm Shree Shubham Logistics Ltd; Catholic Syrian Bank Ltd; Blackstone-backed Nuziveedu Seeds Ltd; and CX Partners-backed Matrix Cellular (International) Services Ltd have failed to access the primary market for share sale even after obtaining clearances from stock market regulator Securities and Exchange Board of India (Sebi) as far back as six months in some cases. This contrasts with the decent run some PE firms have had this year in terms of partial or complete exits through initial public offerings (IPOs) of portfolio companies. There have been about 10 IPOs this calendar year, which collectively raised  Rs. 6,743 crore, according to data

  The primary market is slowly becoming more discerning about who it lets in, with investors not hesitating to turn their backs on companies they think don’t make the cut. Since 2011-12, of the 132 IPO applications approved by the Securities and Exchange Board of India (SEBI), 67 lapsed. In the three months from April to June this year, of the 13 companies that SEBI cleared to launch their IPOs, seven didn’t come to the market. This is much higher than in the whole of FY15, when four out of 16 IPOs failed to make it. A merchant banker, who did not wish to be quoted, said there is more “investor pushback now because they disagree about a company’s valuations or business fundamentals”. In some cases, the company fails to enthuse institutional investors during the roadshows and publicity programmes to attract investors. If institutions don’t show adequate interest, the IPO is mothballed before retail investors even hear about it. In other cases, the timing has gone wrong

MUMBAI: The Tata Group has revived plans to list Tata Technologies, an engineering solutions and IT product developing arm of Tata Motors, on the local bourses. The company is planning to raise Rs 1,400 crore through an initial public offering (IPO), said two people with direct knowledge of the plan. The proposed share sale will be the first IPO from the Tata Group in 12 years after TCS in July 2004.  An email query sent to the company and Tata Motors did not elicit any response till the time of going to press.  Tata Motors holds 70.43 per cent stake in Tata Technologies, while Alpha TC, a wholly-owned subsidiary of the partnership sponsored by Mizuho Securities and other international investors, owns 8.71 per cent in the company.   Other investors in the company include Tata Capital, Barclays Wealth Corporate Services, Sheba Properties, Tata Entertainment Overseas  and Walbrook Nominees, which own between 1 per cent and 5 per cent each.  Tata Technologies was planning an IPO in

Tamilnad Mercantile Bank Ltd (TMB)  Net Profit growth of 6% to Rs.402.16 Cr  from Rs.379.40 Cr (Last year).  Book value also has risen from Rs.91,203/ per sh (last year)  to Rs.1,03,000/ per share as on 31.3.16.  2nd interim dividend of Rs 40 paise per share(after bonus). For Tamilnad Mercantile Bank (TMB), growth will be driven by micro/small enterprises, retail and trader segments and mid-corporates in a limited way, said HS Upendra Kamath, Managing Director and Chief Executive of the bank. In 2015-16, the bank recorded a net profit growth of 6 per cent to ₹402.16 crore from ₹379.40 crore in the previous fiscal (FY15). Total business rose 17.70 per cent to ₹52,946.59 crore (₹44,985.91 crore in FY15). The bank has set a business target of ₹60,000 crore for the current fiscal. The new board, which assumed charge in March this year, has declared 500 bonus shares for every shareholder. “This would involve a transfer of about ₹120-130 crore from reserves to equity. Such bo

RBL Bank  (formerly Ratnakar Bank) has settled securities market-related violation with the Securities and Exchange Board of India (Sebi) under the consent mechanism. The move paves the way for the initial public offering of the private-sector lender. RBL Bank was in breach of ‘deemed public issue’ norms of the  Companies Act  after it allotted 1.8 million shares to 4,892 investors. The lender had filed an application before Sebi  in November 2015 to settle the violation under the consent route. Under this, an alleged wrongdoer can settle the matter with Sebi by paying a monetary penalty and fulfilling any further condition laid out. RBL Bank paid Rs 47.6 lakh as the part of the consent terms to Sebi. Further, it provided an exit opportunity to its investors. The settlement order was passed on May 30 with immediate effect. It offered shareholders a price higher than the allotment price plus interest at the rate of 15 per cent and the fair value estimated by the lender, which is Rs 90.

The Central Board of Direct Taxes (" CBDT ") with the objective to reduce litigation and to maintain consistency in approach on the issue of treatment of income derived from transfer of shares and securities, has issued circular no. 6/2016 dated February 29, 2016 ( "Circular "), and a follow up letter no. F.No.225/12/2016/ITA.II dated May 2, 2016, (" the CBDT Letter "). Taxability of surplus generated from sale of listed shares or other securities A majority of transactions in shares and securities take place in respect of listed shares and securities. Therefore, CBDT has instructed the Assessing Officers, vide its Circular, to consider the following principles for determination whether the surplus generated from sale of listed shares or other securities would be treated as capital gain or business income: If the taxpayer himself opts to treat the listed shares or other securities as stock-in-trade, then irrespective of the period of holding of the