Herd on the Street: JM Financial, IDBI Bank, South Indian Bank, Brushman India Shree Ashtavinayak Cine Vision, Development Credit Bank

JM Financial: Despite the company's denials, market talk around this stock refuses to abate. The belief is that there will be a majority stake in JM's asset management company. The market also believes that Spandana Sphoorty Financial (the microfinance company in which JM is said to hold a stake) will soon go public. JM Financial is a financial services group with interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, NBFC activities, private equity and asset reconstruction.

In the June quarter, the company earned Rs1.1 billion from its investment banking and securities business (versus Rs772 million y-o-y), Rs651 million from its securities funding and fund-based activities (versus Rs254 million), Rs176 million from alternative asset management (versus Rs101 million) and Rs91 million from asset management (versus Rs77 million). Nimesh Kampani, chairman & managing director, is an accused in the Rs1 billion Nagarjuna Finance deposits scam.

IDBI Bank, South Indian Bank: There are rumours floating around that IDBI Bank will take over South Indian Bank. IDBI Bank earned a net profit of Rs2.5 billion in its June quarter while South Indian Bank earned Rs583 million.

Brushman India: Rumours are floating around of Asian Paints taking over. There is also some buzz that the promoter is being questioned by the CBI for his involvement in the Koda scam. The company makes paintbrushes. The stock has risen from Rs7 levels to Rs10+ levels. The activity looks suspiciously operator-driven. Retail investors should be careful. This is an 'S' group company which earned a revenue of Rs33 million in its June quarter and a loss of Rs15.3 million. Kapil Kumar is the MD of the company.

Shree Ashtavinayak Cine Vision: After the stock took off after the success of Dabangg (reported by Moneylife in this section), there are now rumours of Anil Ambani's interest in acquiring a stake in the company. The stock has risen from Rs11 in July to Rs30+ currently.

Development Credit Bank: Rumours of a merger with HDFC Bank. Market players are even talking about a due diligence by HDFC Bank. DCB has been looking at merging with a larger bank for the last couple of years. In the June quarter, HDFC Bank earned a net profit of Rs8 billion while DCB made a loss of Rs29 million (FY10 loss at Rs785 million).

(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).




6 years ago

i love the sight. content is king that is what you have proved.


6 years ago

while i admire moneylife for exposing for its eyeopening articles and exposures im quite surprised at the complete absence of any expose on andra pradesh s most notorious group
hoping to see something from you about this group


6 years ago




In Reply to TARUN DAS 6 years ago

specifially what stock are you talking about "tarun das" ??

ashok mahajan

6 years ago

these are the part of share market specialy in bull phase.
both company make fool to innocent invester and make huge money


6 years ago

Theres nothing going on just that hawala crook trying to dump his stock t

Koda money rode on hawala

Navin Upadhyay | New Delhi

The economic investigation agencies probing the Madhu Koda scam have unearthed huge pay-off remitted from abroad to agents and facilitators for grabbing mining lease in Jharkhand when Koda was the Chief Minister.

Sources said that Koda’s close aide Binod Sinha helped a major steel company grab mining lease in the State. The company agreed to pay part of the payment in cash for the contract of extracting iron ore from Jharkhand mines and remaining by remitting it to two separate companies linked to Sinha and his aides.

Sources said probe agencies have learnt that Koda and his associates used hawala channels in a big way to receive pay-offs for awarding mining lease to different companies. The bribes were routed to a spate of companies and then passed off to Koda and his aides.

In the present case, the probe agencies have learnt that as per the understanding reached between the steel company and Koda’s aides, the former allegedly routed the money through Global Absolute Research Private Ltd and Brushman India Ltd. The two separate companies are headed by one person, whose role is already under scanner in the scam.

Sources said there is evidence to establish that Tony Dildar Singh, a senior official of the Global Research, visited Ranchi in 2007 to finalise the mining lease and cut off the ‘deal’ with Koda’s aides. Dildar Singh is believed to be the main person involved in transferring funds from Dubai, Delhi, London, India, and Singapore.

The probe agencies have found evidence to establish that Koda’s APS Arun Kumar Srivastava had written to Dildar Singh and one Anil Adi Nath Bastabade in 2007, inviting them to explore business possibilities in Jharkhand on the instruction of Koda and Binod Sinha. Anil Bastabade is a key player in the scam.

Probe agencies are investigating a series of suspected transactions reflected in the accounts of Global Absolute Research Pvt Limited and Brushman India Ltd. Sources said that on March 14, 2007, Global Research received payment of Rs 3.5 lakh from London and again received Rs 11 crore in the third week of October from New York.

On March 10, 2008, the company again received Rs 46 lakh from the same source in New York. On April 4, Global Research received foreign remittance of US$ 1,99,972.50 by Vishes Infotechnic from New York. On June 6, another London-based company remitted US$ 1,41,14.02 to it.

Also under scanner is a remittance of $11,710,507.00 that flowed into the account of Brushman India from London on August 1, and then re-routed to Singapore, Hong Kong, and Dubai.

Bastabade is well connected in Delhi, London, Dubai and had visited Ranchi several times between 2006 and 2008 when Koda was the CM...

Kuwait Petroleum may bid in upcoming NELP round with ONGC

New Delhi: Kuwait Petroleum Corporation (KPC) is likely to bid in the forthcoming round of New Exploration Licensing Policy (NELP) with state-owned Oil & Natural Gas Corporation (ONGC), reports PTI quoting a company official.

Kuwait Foreign Petroleum Exploration Company (KUFPEC), a subsidiary of KPC, will join ONGC in bidding for oil and gas blocks to be offered in the ninth round of NELP scheduled to be launched on 15th October.

"We are joining our friends (ONGC)," KUFPEC head for east operations Ali D Al-shammari said after delegation-level talks between the Kuwait's oil minister and Indian petroleum minister Murli Deora.

Mr Deora said India imports around 11.8 million tonnes of crude annually from Kuwait and is looking at increasing the volumes.

KPC was one of the seven suitors for fuel retailing firm IBP Co Ltd, in which the government sold its shareholding through a strategic sale in 2002. IOC outbid KPC, Royal Dutch Shell and Reliance Industries to buy IBP.

Yesterday, Kuwait's oil minister Sheikh Ahmad al-Abdullah al-Sabah had said that his country is keen on entering into a long-term contract for supply of Kuwaiti crude oil to India. He also deliberated on the Organisation of Petroleum Exporting Countries (OPEC) nation using strategic crude oil storages being built in Mangalore and Vizag for storage of Kuwaiti crude.

This, along with downstream investment opportunities in petrochemical projects, such as the olefin project of ONGC Petro Additions Ltd (OPAL), the aromatics project of ONGC Mangalore Petrochemicals Ltd (OMPL) and IOC's Paradip petrochemicals project, would be discussed threadbare when he meets oil minister Murli Deora tomorrow afternoon.

Also, the interest of Indian companies to acquire a fertiliser plant in Kuwait, run by Petrochemicals Industries Company (PIC) and KPC, as well as the possibility of investing jointly in fertiliser production inside and outside Kuwait, and negotiation of a long-term urea offtake agreement from Kuwait by India, would figure in tomorrow's talks.


Action against new telcos if found submitting wrong info: DoT

New Delhi: The telecom ministry has warned of action against companies that won licences by falsifying information, but maintained it had done no wrong in the second generation (2G) licence allocation in 2008, reports PTI.

"All the Unified Access Service (UAS) licences in 2008 were issued as per the policy decisions taken by the government in November 2003 and subsequent detailed guidelines issued in December 2005," the Department of Telecommunications (DoT) said in a statement.

DoT further clarified that since 2003 as many as 51 new licences were issued prior to January 2008 under the same guidelines on 'First Come First Served Basis'.

The new licences were granted based on information filed by the applicants as per the prescribed guidelines.

"If any misrepresentation of facts is brought to notice at a later date, necessary action can be taken as per due procedure under the relevant rules," the DoT said in a statement.

Nine firms were given 2G licences bundled with spectrum in 2008. Firms like Unitech, Shyam-Sistema and dual technology operators like Reliance Communications (RCom) and Tatas have started services in most of the circles and are in the process of completing the roll out.

The DoT statement comes in the wake of the apex auditor Comptroller and Auditor General (CAG) raising issues, saying many licences were given without checking the qualification and credibility of the applicants.

According to reports, CAG in its draft report found that there were serious flaws and irregularities in the process of 2G spectrum allocation.

Telecom minister A Raja is facing allegations that awarding of 2G licences in 2008 at Rs1,658 crore for pan-India operations resulted in huge losses to the exchequer.

Even the Central Bureau of Investigation (CBI) has filed a case against unknown officials of the DoT and some private persons to investigate the irregularities in the 2G licences allocation. The agency has submitted in the Supreme Court last week that it was not in a position to confirm or deny any wrong doing at this stage as the investigations were still on.

It, however, had asserted that the CBI was conducting the investigations in a fair and impartial manner.

The matter is currently being looked into by various agencies and has also been raised from time to time in various courts and the Special Leave Petition (SLP) filed before the Supreme Court is pending consideration for admission, DoT statement said.


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