Deepak Fertilisers & Petrochemicals Corporation announced after market hours yesterday, 13 June 2016, that the Department of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, has agreed to release about Rs 484.75 crore outstanding subsidy payment to the company.
In a regulatory filing, Deepak Fertilisers informed that that the ministry has been withholding subsidy claims due to the company in accordance with applicable Nutrient Based Subsidy (NBS) Scheme of the Government of India since June 2014 amounting to Rs 795 crore as on 31 March 2016. The company had since challenged the said withholding before the Bombay High Court and the department has now informed commencing the release of all subsidy arrears except an amount of Rs 310.52 crore in the interim. This part withholding is already under court's purview for final award.
Bharti Infratel announced before market hours today, 14 June 2016, that it will buyback upto 4.70 crore fully paid-up equity shares, or 2.48% equity, at Rs 425 each, aggregating to Rs 1999.99 crore. The buyback will be undertaken on a proportionate basis from the shareholders as of 16 June 2016 (the record date) through the tender offer route. The promoter, Bharti Airtel, has the option to participate in the buyback. As on 6 May 2016, Bharti Airtel held 71.70% stake in Bharti Infratel.
Coal India announced after market hours yesterday, 13 June 2016, that the board of directors of Western Coalfields (WCL), a company's subsidiary, at its meeting held on 13 June 2016 approved buyback of 7.42 lakh fully paid equity shares, or 25% equity, of face value of Rs 1000 each from the members of WCL for an aggregate amount not exceeding Rs 789.30 crore. The shares will be purchased at Rs 10,626.73 each.
Havells India announced after market hours yesterday, 13 June 2016, that it will increase its stake in Bangalore-based Promptec Renewable Energy Solutions to 70% for an undisclosed sum. Havells India holds 51% stake in the Bangalore-based entity. Promptec is engaged in marketing and manufacturing of LED products including street lighting, office lighting and solar lighting.
Jubilant FoodWorks announced after market hours yesterday, 13 June 2016, that it plans to open 130-140 new Domino's Pizza outlets and around 20 new Dunkin' Donuts restaurants in the current financial year ending March 2017 to expand its footprints in the country.
IIFL Holdings announced after market hours yesterday, 13 June 2016, that the Reserve Bank of India (RBI) has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 80% of the paid up capital of IIFL Holdings.
Banks stocks will be in focus as the Reserve Bank of India (RBI) yesterday, 13 June 2016, issued guidelines on a 'Scheme for Sustainable Structuring of Stressed Assets'.
A resolution of large borrowal accounts which are facing severe financial difficulties may require co-ordinated deep financial restructuring which often involves a substantial write-down of debt/making large provisions. Often such high write-downs act as a disincentive to lenders to effect a sustainable change in the liability structure of borrows facing stress. Banks have also represented for a regulatory framework which would facilitate lenders taking up the exercise of reworking of the liability structure of companies to which they have significant exposures, in the context of asset quality stress currently faced by them, RBI said in a statement.
Accordingly, RBI, after due consultation with lenders, has formulated the 'Scheme for Sustainable Structuring of Stressed Assets' (S4A) as an optional framework for the resolution of large stressed accounts. The S4A envisages determination of the sustainable debt level for a stressed borrower, and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around, RBI said.
In order to make sure that that the entire exercise is carried out in a transparent and prudent manner, S4A envisages that the resolution plan will be prepared by credible professional agencies, while an Overseeing Committee, set up by the Indian Banks Association, in consultation with the RBI, comprising of eminent experts will independently review the processes involved in preparation of the resolution plan, under the S4A, for reasonableness and adherence to the provisions of these guidelines, and opine on it, it added.
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