PTC India surges on receiving Rs 778.00 crore from UPPCL

PTC India is currently trading at Rs 52.80, up by 2.30 points or 4.55% from its previous closing of Rs. 50.50 on the BSE.

The scrip opened at Rs. 52.10 and has touched a high and low of Rs 54.15 and Rs 52.10 respectively. So far 194495 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 81.25 on 22-Jan-2013 and a 52 week low of Rs 34.70 on 05-Aug-2013.

Last one week high and low of the scrip stood at Rs 51.90 and Rs 45.65 respectively. The current market cap of the company is Rs 1562.92 crore.

The promoters holding in the company stood at 16.22% while Institutions and Non-Institutions held 62.31% and 21.47% respectively.

PTC India has received an amount of Rs 778.00 crore from UP Power Corporation (UPPCL) towards past outstanding dues against sale of power to UPPCL.

PTC India acts as intermediary between buyer and sellers of power. In case of cross-border trading, the company plays the role of a nodal agency. It offers advisory services for setting up independent power producing plants.

Gross direct tax collections up 11% for April- September

Gross collections of Personal income tax is up by 16.15%

Gross direct tax collections during April-September of the F.Y. 2013-14 is up by 10.66 percent and stood at Rs.3,01,250 crore as against Rs.2,72,221 crore in the same period last year. Gross collections of Corporate taxes has shown an increase of 7.93percent and stood at Rs.1, 92,308 crore as against Rs. 1,78,173 crore during the same period last year.

Gross collections of Personal income tax is up by 16.15 percent and stands at Rs.1,06,231 crore as against Rs. 91,463 crore in the same period last year.

Net direct tax collections is up by 10.72 percent and stands at Rs. 2, 50,959 crore, as compared to Rs. 2, 26,653 crore in the same period in the last fiscal.

The collection of Securities Transaction Tax (STT) stands at Rs. 2,210 Crore showing the growth of 6.45 percent. The Wealth Tax has posted a growth of 5.27 percent and stands at Rs. 499 crore as against Rs. 474 crore in the same period last year.

Essar Projects bags Rs. 70 cr sewage treatment project in Gujarat

Essar Projects (EPL), a Global EPC (Engineering, Procurement, Construction) contractor headquartered in Dubai, has through its Indian subsidiary Essar Projects (India) Ltd. secured a Project from Jamnagar Municipal Corporation (JMC) in Gujarat, India, involving construction of a 70 MLD Sewage Treatment Plant (STP) and its allied infrastructure along with operation of the plant for 15 years.

This is a path breaking project since it incentivises sale of treated water to industries. To facilitate these sales, Essar Projects will invest an additional Rs. 80 crore to create the necessary pipeline infrastructure for sale of water to industries in and around Jamnagar. Both projects shall be completed in 2 years time.

India Ratings maintains negative outlook on Tata Steel

Credit rating agency, India Ratings and Research has maintained negative outlook on Tata Steel as its profitability would remain under pressure in the near-term. The negative outlook reflects the company’s higher-than-expected net financial leverage in FY13 together with uncertainty regarding deleveraging in the near-term with slower volume growth in Europe and lower growth trajectory in the Indian markets.

Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.

Crude oil prices down as US shutdown drags on

Crude oil prices edged lower in Asian trade today with little progress made in ending the bitter US government shutdown that has sparked fears of a chaotic debt default, analysts said.

New York’s main contract, West Texas Intermediate for delivery in November, was down one cent at $103.48 in mid-morning trade while Brent North Sea crude for November eased 16 cents to $110.00.

“There has been little change in the focus on the oil front as the US budget stand-off continues to put pressure on prices,” Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

With the partial US Government shutdown entering its ninth day, President Barack Obama yesterday said he would not give into demands from Republicans to make cuts to his healthcare law before they agree to a new budget and raise the country’s borrowing limit.

However, he did say he would accept a short-term deal to lift the debt ceiling and reopen the government — a move that would effectively postpone the crisis for a number of weeks.

Failure to lift the ceiling by an October 17 deadline will mean the Government is unable to pay its bills or service its debts, causing a default that analysts have warned could send the world economy back into recession.

Despite Obama’s comments Chua said “investors are still well aware that a resolution still depends on the House (of Representatives), which remains deadlocked“.

Dealers will be looking later today to the release of a weekly US oil inventory report, with expectations of in stockpiles of 1.4 million barrels, according to a survey by Dow Jones Newswires.

Bharti, Walmart part ways, to independently operate retail biz

Bharti Enterprises and Walmart Stores Inc. said that the two firms have reached an agreement to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business. The agreement is subject to finalisation of definitive agreements and receipt of the requisite regulatory approvals.

Upon receipt of required clearances, Walmart would acquire Bharti’s stake in Bharti Walmart Pvt Ltd a joint venture between Bharti and Walmart, giving Wal-Mart 100 per cent ownership of the best price modern wholesale cash and carry business.  

Walmart plans to continue to grow this business while working with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.

As part of the proposed transactions, Bharti will acquire the Compulsory Convertible Debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti. Bharti Retail will continue to operate ‘easyday’ retail stores across all formats and invest in and grow the business.

Rajan Bharti Mittal, Vice-Chairman and MD, Bharti Enterprises, said:  “Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats. We believe that with our current footprint of 212 stores, we have a strong platform to significantly grow the business and delight customers. We wish Walmart the very best for the future.”

Scott Price, President and CEO Walmart Asiam said:  “Given the circumstances, our decision to operate independently will be beneficial to both parties. Through Walmart’s investment in India, including our cash and carry business, supply chain infrastructure, direct farm programme and supplier development, we want to serve India and its people, and continue to make important social and environmental contributions to the country. Walmart is committed to businesses that serve our members and provide good returns for our shareholders, and we will continue to advocate for investment conditions that allow FDI multi-brand retail in India. We wish Bharti well as they grow their retail business.”  

Sensex down 122 points on global cues

Indian stock markets fell over 0.6 per cent in the opening session on Wednesday on fresh selling by funds and retail investors owing to negative global cues.

At 9.15 a.m., the 30-share BSE index Sensex was down 122.59 points (0.61 per cent) at 19,861.02 and the 50-share NSE index Nifty was down 40.8 points (0.69 per cent) at 5,887.60.

Most Asian stocks were down due to concerns that the US political impasse over increasing the debt ceiling may lead to a default and after the International Monetary Fund cut its global outlook.

The International Monetary Fund has cut its global outlook for this year and next year as capital outflows further weaken the emerging markets, and warned that a US Government default could “seriously damage” the world economy.

Japan's Nikkei rose 60.93 points or 0.44 per cent to 13,955.50, Hong Kong's Hang Seng fell 138.16 points or 0.6 per cent to 23,040.70 and Australia's S&P/ASX 200 was up 1.85 points or 0.04 per cent at 5,151.30.

DLF’s arm divests 60% stake in Star Alubuild for Rs 79.80 crore

DLF’s subsidiary companies, namely, DLF Home Developers and DLF Projects have divested 60% stake in Star Alubuild, a subsidiary at an enterprise value of Rs 79.80 crore. Accordingly, Star Alubuild ceased to be subsidiary of the company. This transaction is part of DLF’s objective of divesting its non core assets.

Star Alubuild specializes in designing, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughout India.

DLF, founded by billionaire Kushal Pal Singh, has a land bank of 10,255 acres, the biggest in the real estate sector. At its peak, its debt pile stood at Rs 23,000 crore.

Health Insurance TPA of India formed

This company which was incorporated on August 14, 2013, as per information available from Ministry of Corporate Affairs, recently held its first board meeting

The common in-house third party administrator (TPA) of the public general insurers has been formed and is named Health Insurance TPA of India. This company which was incorporated on August 14, 2013, as per information available from Ministry of Corporate Affairs, recently held its first board meeting.

Officials involved in this project said that the Health Insurance TPA of India will be operationalised by April 2014. This common TPA to process health claims has National Insurance Company, New India Assurance Company, National insurance Company, Oriental Insurance Company and General Insurance Corporation of India (GIC) as stakeholders. While the former four public general insurers have 23.75% stake, GIC has 5% stake.

This TPA will look into health claims and would handle majority of the claims received by the public general insurers. The common TPA has been proposed to prohibit large-scale leakages while settling insurance claims in the health segment. Further, it is intended to process claims of public general insurers in-house, rather than being handled by an external agency.

Industry players said that this common TPA is expected to speed up the claim-settlement process as well as reduce the claims ratio of insurance companies. This move is also expected to reduce costs for these insurance players, who pay a commission of approximately 6% of premiums to TPAs to settle claims.

Presently, most claims in the health segment are handled by external players, which increased the time taken to settle claims. PK Bhagat has been recently appointed as the additional director of the company in the company’s first meeting held on September 4, 2013. G Srinivasan, the chairman and managing director of New India Assurance is the chairman of the board of this company, which is based in New Delhi.

When the TPA comes into operation, the claims handling and processing from external agencies will gradually be transferred to the new entity. Health Insurance TPA of India has been formed with authorised capital of Rs 300 crore and paid-up capital of Rs 10 crore.

According to details sourced from company filings with the ministry of corporate affairs, the incorporation document of the company said that the parties shall at all times be committed to increase the Share Capital of the company at least upto Rs 200 crores (Minimum Commitment) in accordance with the Business Plan and if the Board of the Company determines that such additional capital is necessary for the operation of the Company.

“The Parties shall cause the increased capital to be contributed in proportion to the Shares they hold in the Share Capital of the Company at the relevant time,” said the incorporation document. Also, if further funding is required by the Company beyond the Minimum Commitment in accordance with the Business Plan then the Board may consider further capitalisation or any other alternate source of financing such as shareholders loans, external debt financing.

Though Life Insurance Corporation of India (LIC) was offered a proposal to be a stakeholder in this venture, the life insurer decided not be become a part of it.

Sebi to soon notify norms for listing of start-ups, SMEs

Move is aimed at providing easier exit options for entities such as Angel Investors, Venture Capital Funds and Private Equities

Market regulator Sebi will soon notify new norms for listing of start-ups and small and medium enterprises on stock exchanges without having to make initial public offer (IPO).

The Sebi board had in June approved the amendments of rules to permit listing of start-ups and SMEs in Institutional Trading platform (ITP) without an IPO.

Sources said the Securities and Exchange Board of India is expected to notify the new regulations within a week.

Lack of exit opportunities for investors and restricted access to new ones is a major problem faced by start-ups and SMEs.

Sources said the move is aimed at providing easier exit options for entities such as Angel Investors, Venture Capital Funds and Private Equities. Besides, the move will provide better visibility, wider investor base and greater fund raising capabilities to such companies.

Sebi, in June, had said that the minimum amount for trading or investment on the ITP would be Rs 10 lakh. Such companies would also be exempted from the requirements of having to offer up to 25% of shareholding to public through an offer document in order to get listed.

Therefore the listing can be done without an IPO and the expenses associated with it. While such companies are listed on the ITP they would not be permitted to raise capital, though they can continue to make private placements.

Further, listing on ITP by start-ups and SMEs is expected to offer their existing investors better chances to find alternate buyers than if they search using their own network in the investment community.