HDFC Bank announced after the market hours on Wednesday, 18 December 2013, that it has applied to the Foreign Investment Promotion board (FIPB) to increase the maximum number of shares foreign institutional investors (FIIs) can buy in the bank.
The application follows a Reserve Bank of India (RBI) notification on Monday, 16 December 2013, which restricted FIIs from buying additional shares in HDFC Bank as their shareholding has exceeded the limit.
Stakes held by overseas investors, including FIIs, non-resident Indians (NRIs), persons of Indian origin (PIOs), foreign direct investment and global depository receipts, in HDFC Bank have crossed the ceiling of 49% of its paid-up capital, the RBI said in a release. The foreign shareholding in HDFC Bank as on 13 December 2013 was 52.18% of its paid-up capital.
MCX and Financial Technologies (India) (FTIL) will be watched after FTIL was deemed not fit by regulators to run MCX and ordered to sell most of its holding.
Forward Markets Commissions (FMC), which oversees commodities markets, removed its "fit and proper" designation for both Financial Technologies and its chief executive, Jignesh Shah - a status needed to operate an exchange in India. The loss of the designation means neither FTIL nor Shah can run MCX.
The regulator said National Spot Exchange's (NSEL) payment troubles made FTIL an unfit operator of commodities exchanges and ordered it to cut its stake of 26% in MCX to less than 2%. It did not prescribe how it should dispose of the holding and did not provide a deadline.
NSEL is a separate commodities exchange owned by FTIL that is under investigation by the police and other regulators after struggling to settle outstanding contracts worth more than Rs 5500 crore.
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Power Grid Corporation of India (PGCIL) will be in focus as shares allotted in the company's follow-on public offer (FPO) will be admitted for trading on the bourses today, 19 December 2013. PGCIL had priced the FPO at Rs 90 per share, the top end of the Rs 85-90 per share price band, following strong investor response for the issue. Retail investors and employees were allotted the shares at Rs 85.50 per share, which is a discount of Rs 4.50 per share on the issue price.
The FPO was subscribed 6.74 times. The portion reserved for institutional investors i.e. Qualified Institutional Buyers (QIBs) was subscribed 9.09 times. Category wise subscription data showed that foreign institutional investors (FIIs) put in bids for a total of 186.93 crore shares, compared with 39.20 crore shares reserved for the QIB category as a whole. The portion reserved for retail individual investors was subscribed 2.17 times. The portion reserved for non-institutional investors was subscribed 9.7 times.
The PGCIL FPO was a combination of fresh issue of 60.18 crore shares by the company and disinvestment by the Government of India (GoI) of 18.51 crore equity shares held by the President of India, acting through the Ministry of Power. After the successful divestment, GoI's holding in PGCIL has dropped to 57.89% from earlier 69.42%.
PGCIL, a navaratna public sector undertaking under the ministry of power, is the country's central transmission utility (CTU). The company owns and operates more than 90% of India's inter-state and interregional electric power transmission systems (ISTS). As principal electric power-transmission company of the country, it owns and operates 102109 circuit kilometers of electrical transmission lines and 172 electrical substations with a total transformation capacity of 172378 MVA as end of 30 September 2013.
Shares of Strides Arcolab turn ex-dividend today, 19 December 2013, for special dividend of Rs 500 per share. The company announced the large special dividend after concluding the sale of its Agila Specialties Division to Mylan Inc. early this month.
DLF announced after market hours on Wednesday, 18 December 2013, that post completion of all the conditions precedent including regulatory approvals, DLF has completed the sale of its 74% stake in the insurance joint venture with Prudential Financial, Inc. of USA to Dewan Housing Finance Corporation (DHFL) and its group entities. The transaction is in line with DLF's ongoing strategy to divest non-core businesses.
Bank of Baroda after market hours on Wednesday, 18 December 2013, said it has privately placed non convertible, redeemable, un-secured Basel III compliant Tier-II Bonds (Series XVII Coupon 9.73% per annum) aggregating Rs 1000 crore for which allotment process has been completed.
ALSTOM India said after market hours on Wednesday, 18 December 2013, that it won a contract worth close to 125 million euros (Rs 1070 crore) by Bhel for the 2X500 megawatts (MW) Neyveli New Thermal Power Project (NNTPP) located at Neyveli in the state of Tamil Nadu in India. Under the scope of the contract, Alstom will co-operate with Bhel in conceptualising, designing, engineering and supplying two tower boilers and the complete lignite milling and firing equipment, and critical components. It will be engineered and manufactured in Alstom's world class facilities in Stuttgart (Germany) as well as in Durgapur and Shahabad (India).
Out of the entire aforesaid contract, Alstom India's scope of work would be 65 million euros (Rs 556.40 crore). NNTPP being developed by Neyveli Lignite Corporation will be the first lignite fired power plant in the country and major source of power to the southern states.
D-Link (India) said after market hours on Wednesday, 18 December 2013, that its board will meet on 21 December 2013, to consider raising funds through preferential allotment of equity shares, or rights issue.
Zenith Infotech said after market hours on Wednesday, 18 December 2013 that the Bombay High Court in Company Petition 28 of 2012 has ordered the winding up of Zenith Infotech and the appointment of the Official Liquidator. The order has been stayed till 16 April 2014 in order to enable the company to sell its Cloud Computing Division and certain other fixed assets under the supervision of the Administrator appointed by the Bombay High Court. The company will be appealing against this order of the Bombay High Court.
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