Tuesday, 22 November 2016

BSE shares find favour among richer investors

Even before it goes public, the of BSE, the oldest bourse in Asia, are changing hands in off-market deals among rich or high net worth individuals (HNIs).

“There’s a good deal of demand for the among HNIs, with investors anticipating ‘value unlocking’ for the untendered, unlisted in the run-up to the (initial public offer),” said a person, who did not want to be identified.

Trades not settled through the clearing corporation or clearing house of an exchange are classified as off-market trades. The route is frequently used by investors who wish to offload their holdings in unlisted stocks and the payment is settled privately between the parties.

According to another person, the off-market transactions are being done close to Rs 385, the price currently quoting in the grey market. “The demand raises the chances of oversubscription for the IPO,” he said.  

During the offer for sale in August, investors had tendered close to 29.95 million or 27.43 per cent stake in the exchange. This means close to 75 million are currently untendered and held by investors.

declined comment for this report. Its have gained about 35 per cent in the grey market after the exchange told the Securities and Exchange Board of India (Sebi) in a letter dated January 22 that it was fully compliant with regulations and ready to list for an IPO. The current price is slightly higher than the Rs 375-380 a share that billionaire investor George Soros had paid in August 2011 for a four per cent stake in BSE, through his Quantum hedge fund.

Brokers, however, believe the grey market might not be the right gauge to value the shares, as it is an illiquid one, with not many participants. They expect to be priced between Rs 500 and Rs 650 each for the IPO, higher than the Rs 450-odd estimated by investment bankers.

A price of Rs 450 would value the exchange at Rs 4,900 crore, while one of Rs 650 would imply close to Rs 7,000 crore.

Brokers say the exchange deserves a rich valuation, with the 140-year pedigree and presence across segments, including currency, insurance and mutual funds.

The investment bankers appointed by are yet to meet investors and the price remains in the realm of speculation. Bankers will decide on a price band after they embark on road shows, once the draft prospectus is approved by Sebi.

BSE’s consolidated net profit for 2015-16 declined 38 per cent to Rs 96.7 crore, from Rs 155.5 crore the previous year. The exchange has seen a dip in cash market volumes, its mainstay, and has a market share less than 20 per cent of rival National Stock Exchange of India. Volumes in the derivatives segment have dived to almost nil, after the exchange trimmed its incentive structure for market makers last year.

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 .
BSE shares find favour among richer investors

Otis gives employees time to study

Otis Elevator Company, an unit of United Technologies has made a name for itself as the world’s leading manufacturer of elevators, escalators and moving walkways, but what a lot of people are not aware of are their unique HR policies when it comes to their Indian employees. 

One of them is their flagship Employee Scholar Program. This company-sponsored employee education program empowers employees to expand their knowledge in their current field, or learn new skills for a different career path. They are encouraed to obtain a degree in any field, whether or not it is related to their work duties. 

"The idea is to promote the advancement and development of our employees through education — not just to help them in their current jobs but also to give them a chance to prepare for the jobs of tomorrow," stated Sebi Jospeh, President, Otis India 

Under the program, every employee at Otis is eligible to take upto three hours of paid time to study every week. Moreover, the program also pays for their tuition, textbooks and any other academic fees. Employees have no restriction when it comes to the range of subjects or courses they want to pursue. 

Started in 1996, the Employe Scholar Program has enabled employees across 60 countries earn more than 38,000 degrees. In India itself, over 414 employees from Otis India have used this program to complete their degrees. 

One among them is Sanu Kapoor, who is pursuing a Management course with dual specialization in Marketing and Finance through the program. “I am thankful to UTC and Otis India for providing me this opportunity to pursue my Management Studies under the UTC Employee Scholar Program. The program has helped me in broadening strategic thinking and enhancing my entrepreneurial skills and competencies. The experience and knowledge gained from the program will put me in a good position for any future endeavours. 

In my opinion, the UTC Employee Scholar Program is not simply a program but an avenue that helps their employees to fulfil their goals. ”

Catholic Syrian Bank logs ₹53-cr profit in H1

Gross non-performing assets have come down to ₹463 crore from ₹504 crore and net NPAs to ₹331 crore from ₹405 crore due to the accelerated provisions made by the bank
Thrissur-based Catholic Syrian Bank has recorded a net profit of ₹53 crore in the first half of 2016-17 against a loss of ₹41 crore in the corresponding period of the previous year.
The operating profit for the first half was ₹95 crore.
According to a bank statement issued here, surge in treasury profits on the back of favourable interest rate movements, effective management of stressed assets, improvement in current account, savings account (CASA) deposits, asset growth and strict control over operating expenses contributed to the profit growth.
Gross non-performing assets (NPAs) have come down to ₹463 crore from ₹504 crore and net NPAs to ₹331 crore from ₹405 crore due to the accelerated provisions made by the bank.
Provision coverage 

The provision-coverage ratio has improved from 41 per cent as on September 30, 2015, to 52 per cent as on September 30 this year.
The CASA ratio has improved to 21.03 per cent from 18.64 per cent a year ago.
The capital adequacy ratio has further improved to 10.69 per cent as on September 30 from 10.55 per cent as on March 31 against the RBI stipulation of 9.63 per cent.
Preferential issue

The bank, at its annual general meeting held in September, obtained necessary shareholder approval for preferential issue of capital and has since raised ₹115 crore.
Talks are on with various strategic investors for raising further capital, the statement said.

Otis to Supply elevators to tallest Residential Project

Otis has been selected to provide high-speed elevators to the prestigious Altairproject in Colombo, Sri Lanka, which when complete will be the tallest residential building in Sri Lanka and will have the country's fastest elevators.Otis, the world's largest manufacturer and maintainer of people-moving products, is a unit of United Technologies Corp. (NYSE: UTX). Elevators Private Limited, a JV entity between Otis and Aitken Spence, will install the elevators.
"Otis is a natural choice for a demanding construction like the 68-floor Altair project, especially because of the reliability and performance that Otis elevators promise. It's been a great opportunity for us to partner an international franchise and to showcase the capabilities of the Otis range in a local setting and we are looking ahead for the completion of the project," commented Surendar Mariappan, Joint Managing Director, Aitken Spence Elevators.
Altair will reach 240 metres – 68 floors – consisting of two towers with one tower leaning against the other. Indocean Developers (P) Limited, a venture of South City projects (Kolkata) Limited, chose Otis to supply a total of 19 elevators, including Sri Lanka's fastest elevators with a travel speed of 5 metres per second. 7 out of the 19 units will be supplied from Otis India's Bengaluru factory.
"Altair is a unique project with requirements that stretch beyond the ordinary – it is exclusive. Otis' technical know-how and credentials gave us the confidence that Otis would be the right fit," said Pradeep Sureka, Managing Director, Sureka Group. "Otis' worldwide experience in delivering vertical transport solutions in tall buildings, coupled with their strong local presence, made them the right choice to provide us with elevators for Altair," said. M. Sathian, Director (Projects), Indocean Developers (P) Limited.
"We are privileged to work on one of Indocean Developers' most renowned projects and an architectural marvel – Altair," said Sebi Joseph, president, Otis India region. "Otis' proven high-rise elevator technologies and capability to execute complex projects with unusual structural elements were important factors in our selection."

TMB-sponsored bus shelter opened

Marking the 95th Founder’s Day, Tamilnad Mercantile Bank Director V.V.D.N. Vikraman inaugurated a bus shelter here on Friday. The TMB organised a number of peoples’ welfare initiatives here and one of them was the construction of the shelter at VOC College on the Thoothukudi-Palayamkottai Road.

According to a press release, Directors Chidambaranathan and Kesavamurthi, CEO H.S. Upendra Kamath, GMs M. Gunasekaran, S. Kandavel, M.A. Nayagam, N. Devadas and others participated.

A new bus shelter which was inaugurated by TMB officials near V.O.C College in Thoothukudi on Friday.— Photo: N. Rajesh

Tax on Unlisted Shares

I sold a certain number of shares of an unlisted company in September 2016. These shares were purchased by me in March 2014. What is the tax implications if there is a gain arising on proposed transfer of the said shares?
—Answer :::
As per the third proviso to Section 2(42A) newly inserted by Finance Act 2016, the shares of unlisted company shall be considered as short-term capital asset if they are held by the assessee for a period of not more than 24 months before the date of its transfer. Therefore in the instant case, since the shares of the unlisted company are held for a period of more than 24 months, the gain on sale of such shares shall be taxable as long term capital gains at the rate of 20% (with cost indexation benefit).
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 India supports nearly 1,800 Children across 25 SOS Children’s Villages

Since 2015, Otis India has supported SOS Children’s Villages of India and in that time donated funds to provide quality education to nearly 1,800 parentless children in 25 SOS Children’s villages spread across India. Otis’ support for SOS Children’s Villages is part of the United Technologies Green Shoots corporate social responsibility initiative. Otis, the world’s leading manufacturer and maintainer of people-moving products, including elevators, escalators and moving walkways, is a unit of United Technologies Corp.
“Under the UTC Green Shoots programme, we get the opportunity to come together and do something for a larger good,” said Sebi Joseph, president, Otis India. “We believe everyone emerges a winner from engaging in such a programme. It is a great feeling for us, knowing that we at Otis are supporting the future generation.”
Green Shoots is an employee-driven volunteer program in Asia to support primary-age children in underprivileged rural areas. Launched by United Technologies in 2011, it encourages employees to donate time and goods to help create a better learning environment for underserved children. As part of Otis’ sponsorship, employees from Otis recently visited the SOS Children’s Villages to meet and interact with the children.
“We were very delighted to have volunteers from Otis visiting us,” said Anuja Bansal, secretary general, SOS Children’s Villages of India. “We appreciate the time and effort employees put into visiting our villages and curating programs that help develop a bond with the children. It strengthens our resolve toward improving lives of once parentless and abandoned children under our care. This support gives us a big push towards empowering the SOS Children with quality education”.

Since its launch, more than 5,600 United Technologies employees have volunteered in the Green Shoots program. The program has covered more than 230 primary schools throughout Asia including those in China, India, Vietnam, Thailand, Malaysia, Singapore, Korea and Indonesia and has benefitted more than 41,000 children.
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 .

TMB begins hunt for MD

Tamilnad Mercantile Bank is looking for a new Managing Director cum Chief Executive Officer. The announcement has come at least seven months ahead of the expiry of the current Managing Director HS Upendra Kamath’s term in office. Kamath assumed charge in July 2014 for a period of three years.
The 95-year old Thoothukudi-headquartered bank, caught in a number of legal battles over its ownership, has seen quite a churn of the people at the helm.
G Narayanamoorthy served for three years between 2006 and 2009. His two-year term ended in November 2008, but was extended at intermittent intervals till May.
G Nagamal Reddy took over in June 2009. He demitted office in 15 months. AK Jagannathan, who succeeded Reddy, was earlier the Managing Director of State Bank of Travancore. He served for a slightly longer period – 20 months – from September 2010 to May 2012, before seeking early retirement on health grounds.
KB Nagendra Murthy assumed charge next in July 2012. Murthy, who started his career as a probationary officer in Indian Bank, joined TMB as General Manager (Credit). He is said to be the first (existing employee) to be elevated to the MD’s post.
Current MD Kamath succeeded Murthy. During his tenure, the Court had directed the bank to convene the pending AGMs (from 88th to 93rd) on a single day from the receipt of the notice. The proceedings of the meeting, conducted in January this year, was recorded and sent to Court.
Subsequently a fully constituted board assumed charge in March.

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 .

RBI approves appointment of C VR Rajendran as the MD & CEO of Catholic Syrian Bank

The Reserve Bank of India has approved the appointment of as the Managing Director & CEO of Ltd for a period of three years.
Rajendran is currently holding the position of Chief Executive Officer of the Association of Mutual Funds in lndia.
Prior to this he has held other key positions like Chairman and Managing Director of Andhra Bank and Executive Director at Bank of Maharashtra.
Rajendran's banking experience spans more than three-and-a-half decades. He has had hands-on cross functional experience in different aspects of banking spread across Branch Operations, NPA / Asset quality management, Business process reengineering, Productivity enhancement, Corporate/lndustrial Finance, Merchant Banking, Treasury Operations, Interoperational Banking, Primary Dealership,Collection and Payment Services, and Information Technology.
Rajendran's experience will help the bank in quickly attaining its ambitious transformation and growth agenda.
Kerala-based (CSB) has reported a profit of Rs 53.17 crore during the six months ended September 2016 as against loss of Rs 40.52 crore, a year ago.
Prem Watsa-led Fairfax has approached Reserve Bank of India (RBI) to invest upto Rs 1,000 crore in Catholic Syrian 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 .

Mahindras, MSTC form joint venture

Mahindra Intertrade Ltd., a part of the Mahindra Partners Division of the $17.8-billion Mahindra Group, and MSTC Ltd., a Government of India enterprise, have come together to jointly set up a first-of-its-kind greenfield auto shredding and recycling capability in the country.
Mahindra Intertrade owns and operates a network of steel service centres across the automotive, power and home appliances verticals. Mahindra Partners is the $900 million private equity division of the Mahindra Group.
The proposed collaborative venture will establish an integrated automotive recycling capability for end-of-life vehicles. And, it will undertake a host of activities — collection, compaction, transportation, de-pollution, dismantling, shredding, recycling, and disposal.
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 .