Abhishek Securities

In a bid to dispose of its iron ore stockpile, the Goa Government has decided to engage State-owned metal scrap trading firm MSTC Ltd for the e-auction of 3.9 million tonnes (mt) unaccounted and confiscated iron ore. This would be the first sale of iron ore in Goa since October 2012 after the State Government and the Supreme Court banned mining and the sale of the mineral. Formal communication MSTC Chairman and Managing Director SK Tripathi confirmed to  Business Line  on Friday that the State Government formally conveyed the decision to the company last week. ‘Illegally extracted’ ore The State Government confiscated 3.9 mt of unclaimed or unrecorded ore stock at different places in the past few months and placed the details before the court, said sources. This “illegally extracted” iron ore quantity would be put up for e-auction first. The apex court in October last year had also allowed e-auction of 11.48 mt of ore inventories with clear ownership. This auct...

The Mideast Integrated Steels Ltd (MISL) has planned to raise external commercial borrowing to the tune of $ 500 million to fund the brown-field expansion of the steel plant. The borrowing process will start in next financial year for raising the plant’s capacity from 1.2 MTPA to 3.5 MTPA in two phases, Chairman-cum-Managing Director of the company Rita Singh said here on Friday. The company is hopeful of good rating by the credit rating agency which would enable it to raise this kind of funding, Singh said adding that MISL enjoys debt free status from banking and financial institutions. The construction will start the moment environmental clearance for the expansion is granted by the Ministry of Environment and Forests. The State Government has already recommended for grant of environment clearance after completion of public hearing at Kalinga Nagar. The flagship company of Mesco Steel Group has also identified some steel companies in Odisha as acquisition targets, Singh said....

Tamilnad Mercantile Bank (TMB), which has been declaring a high level of dividends to its shareholders, has not paid dividend  to the tune of Rs 70 crore to its shareholders, as four annual general meetings (AGM) of the bank were not held due to legal disputes between the shareholders. Shareholders from the bank said since AGMs for 2009-10, 2010-11, 2011-12 and 2012-13 were not held, the bank did not pay dividend to the tune of Rs 70 crore to them. The AGMs were not held since shareholders, including foreign institutional investors (FIIs), are fighting over voting rights at various courts. The latest development is that FII holdings to the tune of 32 per cent had been frozen by the Madurai bench of the Madras High Court and recently, one of the shareholders filed a petition at the Madras High Court related to the tenure of additional directors in the bank. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For...

The Indian Express reported that at a time when the country is leaving no stones unturned to boost exports and bring down current account deficit, Essar Steel is unable to execute a USD 6 billion steel products export deal as the domestic general insurers are reluctant to provide cover to the deal. Such a cover is necessary for the deal to ensure that if overseas buyers fail to pay the export proceeds, the banks which will be funding the deal can recover the amount from insurance companies. Without such a cover, banks and financial institutions will be hesitant to take up financing big export deals. According to industry sources, Essar had approached state-owned Export Credit Guarantee Corporation which has a monopoly in providing such covers but the latter responded with reluctance. A senior ECGC official said that “We were not comfortable with the idea taking up such a big export deal. If we take such a huge cover, it will exceed our exposure norms.” For export credit insurance for ...

New Indian Express reported that the Mideast Integrated Steels Limited has planned to raise external commercial borrowing to the tune of USD 500 million to fund the brown field expansion of the steel plant. Ms Rita Singh CMD of the company said that “The borrowing process will start in next financial year for raising the plant’s capacity from 1.2 million tonne per annum to 3.5 million tonne per annum in 2 phases.” She said that “The company is hopeful of good rating by the credit rating agency which would enable it to raise this kind of funding, MISL enjoys debt free status from banking and financial institutions. The construction will start the moment environmental clearance for the expansion is granted by the Ministry of Environment and Forests. The State Government has already recommended for grant of environment clearance after completion of public hearing at Kalinga Nagar.” Ms Singh said that “The flagship company of Mesco Steel Group has also identified some steel companies in O...

Tamilnad Mercantile Bank has started the process of finding a new Managing Director and Chief Executive in view of the incumbent K.B. Nagendramurthy’s approaching retirement in June. Nagendramurthy, who took over the reins in July 2012, told  Business Line  he is not keen on seeking an extension.His predecessor A.K. Jagannathan demitted office in May 2012, before completing the two-year term, citing health reasons.

Tata Sons has shortlisted candidates for the group chief finance officer (CFO)’s position. The board has been without a finance director in the executive role after Ishaat Hussain became a non-executive director in September at the age of 65. “The shortlisted candidates are not from the group but from outside,” said a source. “The new chief finance officer will have broader responsibility to oversee the group’s mergers and acquisitions,” the person. Earlier, Arunkumar Gandhi was the chief deal maker for the group. He retired last year. “These matters are internal to the company. As and when we have an announcement to make, we will inform you,” said a Tata Group spokesperson.

Even as there is talk of UK telecom giant Vodafone buying out Tata Teleservices (TTSL), the Tata group's holding company Tata Sons  pumped close to Rs 2,400 crore  into it last week by way of convertible preference shares.  The move is aimed at infusing liquidity into the telecom arm, whose capital has been completely eroded.  Tata Teleservices has an equity capital of Rs 4,712 crore as  against accumulated losses  of Rs 6,575 crore for the year ending March 2013. In fiscal year 2012/13, the company reported a turnover of Rs 10,859 crore with a net loss of Rs 4,858 crore.  Banking sources say the additional capital from the promoters was necessary to get any further debt funding from the banks.  But the additional funding from majority shareholder Tata Sons which  holds 36.17 per cent in TTSL, has come with a rider. "The conversion of preference capital into equity will take place before the 24 month maturity period if there is a merger of T...

CRISIL Ratings has assigned a stable outlook to Tata Sons' Rs 630-crore non-convertible debenture (NCD) issue, said the media report. It also maintained the 'outstanding' rating on the company's debt programmes and bank facilities at 'CRISIL AAA/FAAA/Stable/CRISIL A1+.' The stable outlook for the NCDs reflected Tata Sons' financial flexibility as the principal holding company of the Tata group, the agency said in a release. "CRISIL believes Tata Sons' business risk profile will be increasingly dependent on the success of its investments, which carry risks associated with implementation and integration," it said. The rating agency may revise its outlook to 'negative' if Tata Sons' financial flexibility is adversely affected, especially in case of larger-than-expected investments, added the media report. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For la...

 A government official has been sentenced to five years in jail by a Delhi court for accepting a bribe of Rs two lakhs from a scrap metal firm to favour it in allotment of lots during e-auction of metal waste.  Special CBI Judge Sanjeev Jain awarded the jail term to 57-year-old Samir Kumar Ghosh, who was Senior Manager with MSTC Limited here, after holding him guilty under the various provisions of Prevention of Corruption Act.  Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

CRISIL Ratings has assigned a stable outlook to Tata Sons' Rs 630-crore non-convertible debenture (NCD) issue, said the media report. It also maintained the 'outstanding' rating on the company's debt programmes and bank facilities at 'CRISIL AAA/FAAA/Stable/CRISIL A1+.' The stable outlook for the NCDs reflected Tata Sons' financial flexibility as the principal holding company of the Tata group, the agency said in a release. "CRISIL believes Tata Sons' business risk profile will be increasingly dependent on the success of its investments, which carry risks associated with implementation and integration," it said. The rating agency may revise its outlook to 'negative' if Tata Sons' financial flexibility is adversely affected, especially in case of larger-than-expected investments, added the media report.

Essar Steel, JSPL and state-run KIOCL have evinced interest in participating as the partner in the Rs 2,200-crore joint venture between NMDC and RINL for setting up a 450-km slurry pipeline and a pellet plant. “It is understood that Essar Steel, JSPL and KIOCL responded against the Expression of Interest issued by NMDC for joining as the third partner in the project for slurry pipeline and pelletisation Plant,” a highly placed source in Steel Ministry told PTI. Rashtriya Ispant Nigam Ltd and iron ore producer NMDC, two state-run firms under the administrative control of the Steel Ministry, in May last had year singed a MoU for the proposed equal venture to make it a win-win for both. However, NMDC later wanted to induct a third partner and entrusted with the job of operating the project and give it some equity stake. The slurry pipeline that would run between Jagadalpur in Chhattisgarh to Visakhapatnam in Andhra Pradesh would be used to transport iron ore. The pellet plant wo...

As part of financial inclusion initiatives and on the occasion of the bank’s 94th foundation day today, Catholic Syrian Bank has opened 11 rural branches. According to the bank’s Managing Director & CEO, Rakesh Bhatia, the bank contemplates opening more rural branches in the current financial year. All branches including rural branches are fully computerized and core banking /ABB enabled branches. They also assist to open Aadhaar-linked accounts facilitating customers to receive various government subsidies and other benefits under various welfare programmes. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

The Reserve Bank of India  today said that Tata Sons  has withdrawn its application  for a new bank licence. After Videocon, Tata Group is the second conglomerate to withdraw its application. Tata Sons has indicated that its current financial services operating model best supports the needs of the Tata Group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the Group’s diverse stakeholder base. Given Tata’s track record and the fact that people would ideally trust their money with such a large conglomerate, it is surprising that the Tata Group is exiting the race for a banking licence. Capital coming in from large corporates was seen as a positive for the sector. But now with such a large conglomerate exiting from the race, the shape of banking reforms is changing, said Ashwin Parikh of E&Y  in an interview with CNBC- TV18. Moreover, unlike many countries, permission for setting u...

Gujarat NRE Coke, the largest independent producer of met coke in India, dropped 20% on Wednesday (27/11/2013) . Shares of the company are trading at Rs 8.44, down Rs 2.1, or 19.92% at the Bombay Stock Exchange (BSE) on Wednesday at 2:35 p.m. The scrip has touched an intra-day high of Rs 10.70 and low of Rs 8.44. The total volume of shares traded at the BSE is 1,108,284. In the earlier session, the shares declined 10.22%, or Rs 1.2, at Rs 10.54. Currently, the stock is trading at all time 52-week low, which is below 64.54% over the 52-week high of Rs 23.80. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Indian telecommunications company Bharti Airtel may sell its $1.8 billion-valued Africa tower business, to reduce debt of about $9.69 billion. Airtel which incurred most of its debt from the $10.7 billion acquisition of Zain Telecom’s Africa business in 2010 has received offers from Helios, ATC, Eaton and HIS to buy its telecoms tower business. The offers received are for the complete tower portfolio as well as parts of the portfolio. However, it is unclear whether prospective buyers will be able to buy out the whole arm or just part of it,” a source familiar with the development told India’s Business Standard. It was earlier reported that Bharti Airtel, which has 15,000 towers in Africa is considering transferring the tower business to its Indian tower unit Bharti Infratel. However, after announcing the company’s quarterly results last month, Bharti’s Group Chief Financial Officer, Sarvjit Singh Dhillon said that the company was not looking at hiving off its tower business...

Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announces its unaudited consolidated financial results for the third quarter ended September 30, 2013. Key Financial & Operational Highlights for the Third Quarter of 2013 Revenues in 9* operational circles remained flat Q-o-Q, due to seasonality. Consolidated revenues decreased by 2.2% Q-o-Q to INR 2,844 million (USD 45 million) due to reduced operating footprint. Blended mobileARPU for the quarter increased by 6.8%to INR 95 on account of increase in minutes of usage following improved quality of customer base. Minutes of usage increased by 11% to 363during the quarter (Q-o-Q). Success of SSTL's data strategy is evident with non-voice revenues contributing 34.5% of total quarterly revenues, the highest in the industry. SSTL's HSD services now cover over 500 towns across 9 circles. The Company's data card subscriber base for the quarter increased b...

 A detailed audit by the  Comptroller and Auditor General of India  of some major trusts run by business houses and sports bodies has allegedly revealed misuse of income tax  exemptions granted to them. Among them are at least two Tata trusts and a number of state cricket associations.  According to the CAG,  Jamsetji Tata Trust  and  Navajbai Ratan Tata Trust  together invested over Rs 3,000 crore in 'prohibitive modes', meaning  investments  that cannot be accepted as charitable in nature.  In the wake of the CAG audit, the government has initiated steps to recover over Rs 1,000 crore from the two trusts.  Sandip Ginodia A BHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Mobile-phone operator Sistema Shyam TeleServices Ltd. plans to invest $3.5 billion over the next 4-5 years to expand its network in India, its president and chief executive said Tuesday. "The company plans to invest mainly for rolling out (services in) new circles as well as for expanding our data services," Vsevold Rozanov told reporters at a news conference. Russia's Sistema JSFC owns 73.71% of Sistema Shyam while India's Shyam Group holds 23.79%. The remaining stake is held by some minority shareholders. The company plans to start mobile-phone services in Mumbai and Haryana service areas by Dec. 31, Mr. Rozanov said. It currently provides mobile services on the code division multiple access, or CDMA, technology in eight of India's 22 telecom service areas and had 2.1 million users at the end of September. On a sale of fresh shares to the Russian government, Mr. Rozanov said the company is awaiting the Indian government's approval. "However...