Stocks
Glodyne, Radico, Pipavav, Parsvnath, Tulip and Era Infra under scanner

Due to surveillance concerns, BSE and NSE in consultation with SEBI decided to reduce the price bands of Glodyne, Radico, Pipavav, Parsvnath, Tulip and Era Infra to 5% from 20% earlier

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have decided to reduce the price band of six companies to 5% from 20% allegedly linked with Kolkata-based broker Dinesh Singhania. Yesterday, Moneylife had sent a mail to the Securities and Exchange Board of India (SEBI) asking about the volatility in stock markets on Thursday.

 

While, the market regulator did not reply to our mails, the joint statement from the bourses does mention “in consultation with SEBI”, both BSE and NSE decided to reduce the price bands due to “surveillance concerns” from 30th July.

 

The bourses reduced price bands of Glodyne Technoserv, Radico Khaitan, Pipavav Defence and Offshore Engineering Co, Parsvnath Developers, Tulip Telecom and Era Infra Engineering to 5% from 20%.

 

“The above measure was communicated to the exchanges for implementation today during pre-open phase, however, as the revised price bands were being implemented, the market opened for trade. Since a few trades were already executed at the original price band of 20%, the price bands were restored back to 20% in a coordinated manner by both the stock exchanges in consultation with SEBI in these stocks to ensure uniformity among investors trading these stocks,” the bourses said in a joint release.

 

Yesterday, there were rumours in the market that some financiers from Kolkata were selling stocks held by Dinesh Singhania of the DSQ Software fame. Anticipating some regulatory action, even some foreign institutional investors (FII) like Mauritius-based Vanguard Investments, exited from these stocks kept by them under P Notes.

 

On Friday, Glodyne ended 20% down at Rs218.90, Radico up 7.7% at Rs109, Pipavav down 10.5% at Rs55.60, Parsvnath down 20% at Rs37, Tulip 13% higher at Rs99.50 and Era Infra 20% up at Rs137.80 on the BSE, while the benchmark Sensex closed the day 1.2% up at 16,839.

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Sun TV Network, SpiceJet shares plunge by up to 12%

Shares of Sun TV Network and SpiceJet plunged by up to 12% on reports that the CBI is poised to file charge sheet against the Maran brothers

 
Mumbai: Shares of Sun TV Network and SpiceJet have plunged by up to 11% on the bourses on reports that the Central Bureay of Investigation (CBI) is poised to file a charge-sheet against the Maran brothers over allegations of kickbacks in the controversial Aircel-Maxis deal, reports PTI.
 
The scrip of Sun TV crashed by 40% in the intra-day's trade to touch its 52-week low at Rs176.75 on the BSE. Although, it recovered some lost ground and finally settled at Rs261.65, down 11.2% from the previous close.
 
On the National Stock Exchange, the stock tanked 11.5% to close at Rs262.
 
SpiceJet, too, slipped 10.6% to close at Rs25.20 on the BSE. During the trading session, the stock had touched a low of Rs24.50 and a high of Rs29.
 
The sharp fall in the share prices were in contrast with overall strength in the broader market. The BSE's benchmark Sensex rose 199.37 points, or 1.20%, to close at 16,839.19 points.
 
Former telecom minister Dayanidhi Maran, whose brother Kalanithi controls Sun TV, was believed to have been questioned by the CBI in connection with the allegations that he had received Rs547 crore as kickbacks from a Malaysian company in the controversial Aircel-Maxis deal.
 
According to media reports, CBI is poised to file a charge-sheet against the Maran brothers over allegations of kickbacks.
 

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Educomp pays off FCCBs through $155 million package

Educomp said it paid off all its outstanding overseas debt from a $155-million financial package that it received from IFC, private investment firm Mount Kellett and others

 
Mumbai: Education solutions provider Educomp on Friday said it has paid off all its outstanding overseas debt from a $155-million financial package that it received from IFC, private investment firm Mount Kellett and others, reports PTI.
 
The company also announced a partnership with Mount Kellett wherein a representative from the investment firm will join its board of directors.
 
The board of the company had approved a comprehensive financing package of $155 million, which included funds from World Bank arm IFC, French development finance entity Proparco, private investment firm Mount Kellett and the company's promoters.
 
"Using these funds, Educomp has since paid off its outstanding foreign currency convertible borrowings (FCCB) in full (including outstanding principal of $78.5 million and redemption premium of about $32.25 million) on due date," Educomp said in a filing on the BSE.
 
As part of the package, Educomp has received $70 million under external commercial borrowings (ECBs) -- $30 million from IFC and $40 million from French development finance institution Proparco (Societe De Promotion Et De Participation Pour La Cooperation Economique) -- under an 8.5 year facility.
 
Besides, the company got $10 million via FCCB from IFC, convertible into equity shares at a 40$ premium to the floor price.
 
Educomp received about $50 million as equity comprising $15 million from IFC, $5 million from Proparco and $30 million from funds managed by Mount Kellett at the price of Rs149.16 per share, a 10% premium to the floor price.
 
The company also got $25 million from the promoter group comprising $15 million of equity and $10 million of equity warrants, at a price of Rs193.74 per share.
 
"Not only have we tied up the requisite funding requirements for our liabilities but we have gotten world class investors like IFC, Proparco and Mount Kellett as long term partners," Educomp Solutions Chairman and MD Shantanu Prakash said.
 

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