Tata Steel may be disqualified in Odisha iron ore auction

The Odisha government may not be able to issue the letter of intent (LOI) without prior approval from the Centre in case the bidder holds or may hold one or more mining leases covering a total area of more than 10 sq km in respect of any mineral or prescribed group of associated minerals in Odisha.

Tata Steel is likely to be disqualified in the e-auction conducted by the Odisha government for allotment of iron ore mining lease under the new MMDR Act, as the company is found to be ineligible under one criteria relating to lease area held previously in the state, reports a business daily.

The Odisha government may not be able to issue the letter of intent (LOI) without prior approval from the Centre in case the bidder holds or may hold one or more mining leases covering a total area of more than 10 sq km in respect of any mineral or prescribed group of associated minerals in Odisha.

At present, Tata Steel has six iron ore/manganese (an associated mineral) leases in Odisha with combined lease area of 10 sq km.

"This will automatically disqualify Tata Steel in the auction process," a top official of Odisha Steel & Mines Department has been quoted as saying.

Tata Steel does have an option in the clause whereby it can seek permission of the Centre to relax the norm in deserving cases, reports the daily.

   

But, the Odisha government was unlikely to recommend Tata Steel's case to the Centre for relaxation of the eligibility norm, as it might prompt other bidders to go into litigation, it adds.

Bharti Telecom plans to increase stake in Bharti Airtel

Report says that the company intended to acquire stake from Indian Continental Investment Ltd.

Bharti Telecom Ltd is planning to raise its stake in Bharti Airtel to over 50 per cent through open market purchases, according to reports.

Report says that the company intended to acquire stake from Indian Continental Investment Ltd (ICIL) that owns 6.65% stake in Bharti Airtel. 

Bharti Airtel Ltd ended at Rs. 324, up by Rs. 3 or 0.93% from its previous closing of Rs. 321 on the BSE.

The scrip opened at Rs. 322 and touched a high and low of Rs. 325.3 and Rs. 318.6 respectively. A total of 2492777(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 129515.76 crore.

The BSE group 'A' stock of face value Rs. 5 touched a 52 week high of Rs. 452.45 on 21-Jul-2015 and a 52 week low of Rs. 282.3 on 29-Jan-2016. Last one week high and low of the scrip stood at Rs. 334.8 and Rs. 316.15 respectively.

The promoters holding in the company stood at 65.62 % while Institutions and Non-Institutions held 25.4 % and 8.93 % respectively.

The stock traded below its 200 DMA.

Mukesh Ambani richest Indian, net worth jumps 30% to $26 bn

"The combined wealth of the Indian billionaires surge up by 16% to USD 308 bn and the average age was 64," the report added.

Industrialist Mukesh Ambani remains India's richest person with a surge of 30% in his net worth to $26 billion, pushing his global rank to 21st on a worldwide rich list topped by Bill Gates, according to Hurun Global Rich List 2016 report.

The total number of billionaires from India has risen to 111, consolidating the country's third position after China and the US, according to Hurun Global Rich List 2016.

The number of the world's billionaires grew by 99 to 2,188, which is a new world record.

Bill Gates, retained the top spot with a fortune of $80 bn, followed by Warren Buffett with a net worth of $68 billion further followed by Amancio Ortega with USD 64 billion net worth in the third place.

"The combined wealth of the Indian billionaires surge up by 16% to USD 308 billion and the average age was 64," the report added.

Besides Ambani, the Indians who got featured in the coveted list include Dilip Shanghvi ranked 46th with a net worth of USD 18 bn, followed by Pallonji Mistry (rank 69, USD 13 bn), Shiv Nadar (rank 78, USD 12 bn), Cyrus S Poonawalla (rank 149, USD 8.1 bn), Uday Kotak (rank 152, USD 8 billion), Azim Premji (rank 155, USD 7.7 bn).

Unilever names Bayer CEO Marijn Dekkers as new Chairman

Dr. Dekkers is currently Chief Executive Officer of Bayer AG and, as announced by Bayer AG earlier today, he will step down from this role at the end of April.

Unilever today announced that it is proposed that Dr. Marijn Dekkers, one of Europe's leading global business figures, will succeed Michael Treschow as Chairman of Unilever N.V. and Unilever PLC. He will be nominated for election to the Boards at the Annual General Meetings in April 2016.

Dr. Dekkers is currently Chief Executive Officer of Bayer AG and, as announced by Bayer AG earlier today, he will step down from this role at the end of April.

Michael Treschow will retire from Unilever at the 2016 AGMs after having served Unilever's usual maximum tenure of nine years as Chairman. He joined the Unilever Boards in 2007 and was the first independent, non-executive Chairman of Unilever.

Michael Treschow said, “Marijn Dekkers is a highly successful businessman with a formidable track record gained in some of the world’s most competitive industries. I have no doubt that Unilever will greatly benefit from his knowledge, international experience and his strong belief in driving business growth responsibly and in the long term.”

Marijn Dekkers said, “I am honoured to have been invited by the Boards to become Unilever's Chairman and to help contribute to the purpose, vision and strategy of this Group. It is a great business, with great brands and an unequalled global reach. I know Paul Polman as an outstanding global leader and he and I are looking forward immensely to working together in the future.”

Ann Fudge, Vice-Chairman and Senior Independent Director said:

“The Boards of Unilever are delighted to make this appointment. Our Nomination and Corporate Governance Committee conducted a thorough search. We set the bar high and I'm delighted our efforts have yielded such an excellent result.

The Boards would also like to pay special tribute to Michael and the significant contribution he has made. Under his leadership Unilever has undergone one of its most successful periods in its history and he leaves the business well placed in its transformation journey. His strong leadership and commitment to sustainability and building long term profitable growth have been hallmarks of his Chairmanship and we wish him well in the years ahead.”

Unilever also announced that in addition to Michael Treschow, Hixonia Nyasulu will be retiring from the Unilever Boards at the conclusion of the 2016 AGMs having also served for nine years. Michael Treschow said: “I would like to thank Hixonia for her contribution as a Unilever Non-Executive Director. She has brought invaluable experience to the Unilever Boards and been a great source of advice and guidance for the business, in particular in relation to Africa and her role on the Audit Committee. She leaves with the best wishes of us all.”

It is proposed that Strive Masiyiwa and Prof. Youngme Moon join the Boards as Non-Executive Directors. They will be nominated for election to the Boards at the 2016 AGMs. As previously announced it is also proposed that Graeme Pitkethly will be nominated for election to the Boards as an Executive Director in the role of Chief Financial Officer at the 2016 AGMs.

Strive Masiyiwa is the founder and executive chairman of global telecommunications group Econet Wireless and Youngme Moon is senior associate dean for strategy and innovation, as well as the Donald K. David Professor of Business Administration, at Harvard Business School.

Michael Treschow said: “I am delighted that Strive Masiyiwa and Youngme Moon have agreed to join the Boards as Non-Executive Directors. They will bring, in addition to their distinguished international business and marketing experiences, unique perspectives into the impact technology, particularly digital, is having on new business models for the future both in the developed and developing world.”

The following Directors will offer themselves for re-election at the 2016 AGMs: Nils Andersen, Laura Cha, Vittorio Colao, Louise Fresco, Ann Fudge, Judith Hartmann, Mary Ma, Paul Polman, John Rishton and Feike Sijbesma.

SBI, Tata Motors, Bharti Airtel, among 18 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

SBI: State Bank of India's Rs. 11,700 crore worth loans have been locked up as non-performing assets as nearly 1,160 defaulters have willfully decided not to repay, acording to reports.

Tata Motors: Tata Motors reclaimed the number one position in the light commercial vehicle (LCV) segment during the December-January period, reports a business daily.

Tata Steel: Tata Steel is likely to be disqualified in the e-auction conducted by the Odisha government for allotment of iron ore mining lease under the new MMDR Act, as the company is found to be ineligible under one criteria relating to lease area held previously in the state, reports a business daily.

GMR group: An arbitration tribunal in Singapore has ruled in favour of the GMR group in the legal dispute with the Maldives government on an airport project, reports a business daily.

TVS Motor: TVS Motor is aiming 20% market share in India's two-wheeler market over the next three years, according to reports.

Bharti Airtel: Bharti Telecom Ltd is planning to raise its stake in Bharti Airtel to over 50 per cent through open market purchases, according to reports.

Ramco Systems: Ramco Systems, the global Aviation software provider on Cloud, Mobile & Tablets, partners with Aeroxchange, industry’s leading electronic business network supporting all MRO business processes for buyers and sellers within the aviation industry.

Castrol India: The company reported Q4 Profit after Tax was up by 29.7% to Rs.615.2 crores as against Rs.474.5 crores during the same period in the previous year.

Spicejet, Jet Airways, Indigo: Spicejet, Jet Airways and Indigo Airlines announced pre-summer sale.SpiceJet will kick start its ‘Pre-Summer Sale’ with red hot fares across its domestic network.Jet Airways announced special offers on Economy and Premiere fares for guests travelling on the airline’s international network. IndiGo also joined the race of discounting tickets.“Book till 25 February for travel between 1 March to 13 April 2016 and enjoy unbelievable low fares starting Rs.737,” IndiGo reportedly said.

Punj Lloyd Ltd: The company has bagged Rs. 308 crore order for construction of luxury villas in Dubai, the UAE.

Infosys: Infosys has extended the tenure of its chief Vishal Sikka by nearly two years, till March 2021, saying his initiatives have helped the company move towards reclaiming its industry leadership position.

Ponni Sugars Erode: The Reserve Bank of India has today notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)/Qualified Foreign Investors (QFls)/Non Residential Indians (NRIs)/Person of Indian Origin (PIO) can now invest up to 49 per cent of the paid up capital of Ponni Sugars Erode Limited under the Portfolio Investment Scheme (PIS).

Adani Group: Indian mining giant Adani Group’s 16.5 billion dollar controversy-hit coal mine project in Australia has inched closer to getting its mining lease after it struck a compensation deal with a local government body.

ONGC: The company to invest some US$500mn in their San Cristobal joint venture, the South American company's president said.

Piramal Enterprises: The company is looking to raise up to Rs10bn through issuance of non-convertible debentures on private placement basis.

Eicher Motors: Eicher Motors’ Royal Enfield announced launch of its first retail operations in Thailand.

Sensex, Nifty to open on a flat note

Asian markets are directionless for now with the bias weak. Choppiness could set in as traders adjust their positions on account of F&O expiry. US stock indices recovered from steep losses to close modestly higher. The trend in stocks mirrored movement in oil prices, which also recovered from early losses.

 After days of weakness volatility is set to amplify on account of F&O expiry and the railway budget. Stocks like Siemens, BEML, Texmaco, Titagarh Wagons and Timken are expected to be on investors’ radar as expectations are high that a major chunk of the incremental budget could be spent towards construction of new lines, doubling of lines and towards raising rolling stock (including engines, coaches, wagons). Should a freight hike happen, logistic companies may have a temporary run at the expense of few sectors. Also, what remains interesting to watch is what decision the Railway minister would take to improve the strained finances.

The outlook is a flat start. Asian markets are directionless for now with the bias weak. Choppiness could set in as traders adjust their positions on account of F&O expiry. US stock indices recovered from steep losses to close modestly higher. The trend in stocks mirrored movement in oil prices, which also recovered from early losses. Materials and energy stocks were the leading gainers on the S&P 500 index, rising by 1% and 0.9% respectively. Financial was the only sector that closed in the red, down 0.2%. Oil futures gained 0.9% but was largely volatile after data from the US Energy Information Administration (EIA) showed a rise in weekly crude-oil supplies by 3.5 million barrels but also indicated a decline in crude production. Brent reversed earlier losses to jump by 2.8%.

On the data front, sales of new homes plunged in January to the lowest level since October, the Commerce Department said on Wednesday. A preliminary reading on February’s activity in the US services sector dropped to the lowest level in nearly two-and-a-half years.

Eastern India Power & Mining has purchased total 87,350 shares of ISTL at a price of Rs. 655 from Delux Associates LLP in a bulk deal valued at Rs. 5.72 crore.

ZYMA Laboratories has purchased total 300,000 shares of Lupin at a price of Rs. 1,770 from Deshbandhu Gupta in a block deal value at Rs. 5.31 crore.

Assocham has called for an increase in ticket prices in Railway Budget 2016.“There is lack of political will to raise passenger fares even though the reluctance is not shared by passengers,” Assocham reportedly said in a memorandum submitted to Railway Minister Suresh Prabhu.

SAIL is planning to invest over Rs. 10,200 crore on mine development, according to reports.

Sugar stocks ended higher. According to the International Sugar Organisation (ISO), there is likely to be global sugar shortfall of 5 million tonnes in FY16, much higher than November estimates of 3.5 million tonnes.
 

Railway stocks trade on a mixed note ahead of Rail Budget 2016

Siemens slipped 1.7% to Rs.999.40; Titagarh Wagons stock trading flat 0.4% to Rs.128; and Texmaco Rail & Engineering gained 0.6% to Rs.134.20.

Railway stocks trading on a mixed note on BSE ahead of the rail budget on Thursday. Shares in Kalindee Rail Nirman Engineers trading flat 0.3% to Rs.138.   The scrip opened at Rs. 136.1 and has touched a high and low of Rs. 140.9 and Rs. 128.7 respectively. So far 720482(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 226.68 crore.

Siemens slipped 1.7% to Rs.999.40. The scrip opened at Rs. 1018 and has touched a high and low of Rs. 1018 and Rs. 993 respectively. So far 156126(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 36220.99 crore.

Titagarh Wagons stock trading flat 0.4% to Rs.128. The scrip opened at Rs. 125.7 and has touched a high and low of Rs. 129.75 and Rs. 120.3 respectively. So far 4363906(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1465.96 crore.

Texmaco Rail & Engineering gained 0.6% to Rs.134.20. The scrip opened at Rs. 134 and has touched a high and low of Rs. 136.95 and Rs. 126.25 respectively. So far 972560(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2806.24 crore.

Railway Minister Suresh Prabhu is planning to boost Indian Railways’ capex by nearly 50%, according to reports. Prabhu Prabhu is planning to keep the transporter’s operating ratio (OR) for this fiscal at a level of below 90%.

$25 million Kulfi bonanza for Indian Start ups

500 Startups has launched a $25 million fund which will be focused on India, Bangladesh and Sri Lanka

Global venture capital seed fund and startup accelerator , 500 Startups has launched a $25 million fund which will be focused on India, Bangladesh and Sri Lanka.

Named as ‘Kulfi 500’, the new fund is expected to make about 25 to 50 deals per year, focusing majorly on fledgling companies with market-fit products and demonstrated traction.

The Silicon Valley based investment firm, one of the most active investor in Asia which writes small cheques of a few hundred thousand dollars stated that India is currently the fastest growing economy. Also with the median age in India being 27.3 years old and increasing smart phone penetration gives a great opportunity to invest in India for future growth.

500 Startups provides early-stage companies with up to $250,000 in funding, a startup accelerator program, and conducts events like SmashSummit, UnSexy, and GeeksOnaPlane. It has startup mentors around the world, and a community of startup founders, assisting new ventures under the program.

500 Startups has already invested in over 50 startups in India. ZipDial, SourceEasy, Instamojo, CultureAlley, SilverPush, KartRocket, and Headout are few of the many start-ups that have received funding. 500 Startups has a $200 million corpus and has investments in more than 1,500 companies across 50 countries. In last year alone it funded over 20 start-ups in India.

“Although we are sector-agnostic, we will take a closer look at financial technology, edutech, health and wellness, data analytics, content, SaaS (software-as-a-service) and small and medium businesses," Pankaj Jain, partner at 500 Startups and runs the 500 Kulfi fund, wrote in a blog post on the company's website.

Besides, 500 startups has also announced the launch of two new funds, including a $25 million fintech fund and a $25 million vehicle focused on India. 500 FinTech led by Sheel Mohnot, an investor and entrepreneur who joined 500 Startups after Labor Day, will look at lending, insurance, alternative investing platform and bitcoin.

Punj Lloyd wins Rs 308 crore infrastructure order in Dubai

The company has bagged order in Dubai.

Punj Lloyd Ltd has announced that it has bagged Rs. 308 crore infrastructure order in Dubai.

The scrip opened at Rs. 22.05 and has touched a high and low of Rs. 23.2 and Rs. 21.85 respectively. So far 597971(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 737.26 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 40.75 on 28-Feb-2015 and a 52 week low of Rs. 20.75 on 20-May-2015. Last one week high and low of the scrip stood at Rs. 23.4 and Rs. 22 respectively.

The promoters holding in the company stood at 36.93 % while Institutions and Non-Institutions held 9.84 % and 53.24 % respectively.

The stock is currently trading above its 200 DMA.

KMB to buy 19.9% in Airtel’s payments bank for Rs 98 crore and other top Banking news of the day

Round up of the major headlines that dominated the banking sector, nationally and internationally.

Kotak Mahindra Bank, the country’s third-biggest bank by market capitalisation, has signed a share subscription and shareholders agreement with Bharti Airtel and its 100% subsidiary Airtel M Commerce Services Ltd. (AMSL) to buy a 19.9% stake in the latter for Rs 98.38 crore.

Reserve Bank of India has, with the concurrence of the Government of India, decided to extend the SAARC Currency Swap Arrangement till November 14, 2017.

It may be recalled that the SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012. 

The government is considering a proposal to increase the cap on foreign institutional investment in public sector banks to 49 per cent from 20 per cent. The move comes at a time public sector banks need equity capital while their stocks have taken a hammering after reporting huge losses in the third quarter due to a sharp rise in non-performing assets, banking industry sources said. 

Standard Chartered on Tuesday said it has incurred a pre-tax loss of $981 million from its India operations owing to rise in impaired assets to $1.3 billion in 2015, the bank said in its annual report. 

The state government is committed to extending banking services to all gram panchayats (GPs) that don't have banks, chief secretary Aditya Prasad Padhi said here on Monday. 

Consolidation of state-run lenders has climbed to the top of the banking reforms agenda as the cleaning up of their account books gets under way.

Government owned IDBI Bank would sell some of its non-core assets and would place equity with the largest domestic investor, Life Insurance Corporation to raise capital. On Tuesday, the government owned bank, IDBI Bank, received approval from market regulator, Sebi, to raise Rs 3771 crore from qualified investors. 

Unsure about valuations and interest from investors, public sector banks are yet to actively pursue the sale of non-core assets as a way to boost their capital base, which has seen an erosion due to the increase in stressed assets.