Bharti Airtel will be watched after a court on Tuesday, 19 March 2013, issued summons to the company's Chairman & Managing Director, Sunil Bharti Mittal, whilst taking cognizance of the Charge Sheet filed by the CBI against Bharti Airtel, two Vodafone entities and an individual. This matter pertains to alleged corruption in allocating mobile phone bandwidth during the NDA Government in 2002.
Bharti Airtel clarified in a statement that CBI has asserted that they have not found any evidence of conspiracy against any individual whatsoever. The requests for additional spectrum allocations to improve the Quality of Service and to raise the standards of mobile telephony in India to global standards had been raised by several telecom operators and by Industry Associations since 1999/2000, the statement added.
The company stated that the spectrum allocation i.e. subject of the charge sheet was made to Bharti Airtel in December 2003 under the charge of then Minister of Communications in the NDA, Arun Shourie who has already been given a clean chit.
The fact also is that the spectrum under Govt. policy of 1 February 2002, which the Charge Sheet alleges, was issued to benefit Bharti Airtel and Vodafone continued until April 2010 under 3 separate Ministers of Telecom and 6 Secretaries in the DoT and despite being considered by several formal / informal committees of the DoT / TRAI, the company added.
All other telecom operators including MTNL and BSNL received additional spectrum under this policy of 1 February 2002, the company further clarified.
Bharti Airtel said that Government has on several occasions stated on the floor of the Parliament, even as recently as 7 December 2012, that the additional spectrum granted to all operators and the related spectrum usage charges are as per the policy. The DoT has also filed affidavits before the courts confirming the same.
The company said that it would like to reiterate that Bharti Airtel and its promoters have always practised the highest standards of corporate governance and accordingly view the Charge Sheet as an attempt to tarnish its high reputation.
It said it is disappointed with the Charge Sheet against a company which is one of the few Indian MNCs, with a reputation for good governance standards. The company said it will fight this charge sheet against Bharti Airtel and Sunil Bharti Mittal. The company said it has full faith in the judicial process and is confident that its position will be vindicated before the courts.
Asian Paints will be watched after the company's board approved acquiring a 51% stake in the Sleek Group, subject to due diligence, necessary approvals and documentation. Sleek Group is a major organised player in the modern kitchen space and is engaged in the business of manufacturing, selling and distributing kitchens, kitchen components including wire baskets, cabinets, appliances, accessories, etc, with pan India presence. It has a retail network of more than 30 showrooms including shop-in-shops and a network of 250+ dealers.
Asian Paints said the acquisition of the Sleek Group has a strategic fit and is a step in the company's foray into home improvement. Asian Paints said it has chosen to enter the modern kitchen space, as the company believes that the modern kitchen space is currently undergoing an inflection, has very few organised pan India players and is growing rapidly.
K B S Anand, Managing Director & CEO, "Sleek is well poised to be a meaningful and enriching partner for Asian Paints' foray into modern kitchens. This acquifition will offer significant opportunities and synergy for the company."
Tata Motors may edge lower after the company's American depository receipt, or ADR, fell 3.08% to settle at $26.08 on the New York Stock Exchange on Tuesday, 19 March 2013.
Sterlite Industries (India) may edge lower after the company's American depository receipt, or ADR, tumbled 5.39% to settle at $6.85on the New York Stock Exchange on Tuesday, 19 March 2013.
Mahindra & Mahindra (M&M), as part of aligning its production with sales requirements, will observe no production days at its tractor plants located at Jaipur for five days and Rudrapur for two days during the period 24 March 2013 to 31 March 2013. The management does not envisage any adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements, M&M said in a statement.
Manappuram Finance said it expects an under recovery of revenue on certain gold loan portfolios due to correction in the gold price. This may result in reduction in profit numbers for the fourth quarter ending 31 March 2013.
3M India said its promoter, 3M Company, will sell 1.13 lakh equity shares of 3M India through Offer For Sale (OFS) on stock exchanges. The OFS will open on Thursday, 21 March 2013 at 9:15 IST and close on the same day at 3:30 IST. The company will declare the floor price after trading hours today, 20 March 2013.
The board of Globus Spirits has approved allotment of 50.38 lakh, 4.75% Cumulative Compulsorily Convertible Preference Shares (CCCPS) at a par value of Rs 140 each to Templeton Strategic Emerging Markets Fund IV, L.D.C. Each CCCPS is convertible into one equity share of the face value of Rs 10 each within a period of 18 months from the date of allotment.
The board has also approved allotment of 7.63 lakh warrants at Rs 140 each to promoter group entity, Chandbagh Investments. The warrant holder is entitled to obtain one equity share of the face value of Rs 10 each against each warrant within a period of 18 months from the date of allotment, Globus Spirits said in a statement.
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