Exide Industries would buy ING's 26% and also another 24% stake from two other promoters for Rs550 crore in ING Vysya Life Insurance Co
New Delhi: The Netherlands-based ING said it will exit ING Vysya Life Insurance Company by selling its 26% stake to domestic partner Exide Industries which will also buy another 24% from two other promoters, reports PTI.
Exide Industries at present holds 50% stake in ING Vysya Life Insurance Company. Remaining 24% stake is held by other two promoters Hemendra Kothari Group and Enam Group.
Exide proposes to pay about Rs550 crore for 50% stake, thereby valuing the ING Vysya Life at about Rs1,100 crore.
"The company has in principle decided to acquire the remaining 50% of the equity capital of ING Vysya Life (26% from ING Group, 16.32% from the Hemendra Kothari Group and 7.68% from the Enam Group) for an aggregate consideration of Rs550 crore approximately," Exide Industries said in a statement.
ING's exit from the Indian life insurance joint venture is part of the previously announced divestment of ING's Asian Insurance and Investment Management businesses, the Dutch banking and insurance company said in a statement.
The process for the remaining businesses is on-going. Any further announcements will be made if and when appropriate, it said.
The deal is subject to regulatory approvals, it said, adding, the transaction is expected to close in the first half of 2013.
Exide further said that it will look for a new foreign partner for its life insurance company.
"Post such acquisition Exide has in principle decided to identify and induct a new international player in the life insurance genre to infuse fresh equity into IVL for the company's expansion plans," it said.
As part of its restructuring process, ING Group last year had sold its insurance business in Malaysia to AIA Group Ltd (AIA).
ING in the statement said that the transaction is not expected to have a material impact on the Group's results.
"Today's agreement does not impact ING Vysya Bank, a publicly listed Indian bank in which ING has a 44% stake, nor ING's fund management business in the country," it said.
Headquartered in Bangalore, ING Vysya Life Insurance has over a decade of experience serving more than one million customers in over 200 cities in India.
The insurance company distributes its products through more than 30,000 advisers, bancassurance partner ING Vysya Bank, corporate agents and brokers.
This is the second exit by any foreign partner in the current fiscal.
In April 2012, US-based New York Life announced exit from Indian life insurance business venture by selling its 26% stake at Rs2,731 crore to Mitsui Sumitomo Insurance of Japan.
According to reports, Future Group and DLF Group are also planning to exit from their life insurance business. But it cannot be independently verified with the respective companies.
There are 52 insurance companies operating in India, of which 24 are in the life insurance business and 27 are in general insurance business. In addition, GIC is the sole national reinsurer.
Of the 24 life insurance players in the country, only two companies-- Life Insurance Corporation (LIC) and Sahara India Life Insurance Co -- are running the business without foreign partners.
SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs5 lakh on two individuals for alleged fraudulent trade practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.
In two separate orders, SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL.
"I am of the view that the facts of the present case clearly bring out an element of fraud and unfair trade practices indulged in by the noticee through brokers in connivance with other entities of Mahesh Mistry Group," SEBI's adjudicating officer PK Kuriachen said in similarly-worded orders.
In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May to 21 November 2003. The regulator said the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.
SEBI said a group of clients connected to each other and collectively referred to as 'Mahesh Mistry Group' traded in the shares of the BGSL. Both Dimple Shah and Piyush Shah were found to be part of the group.
Dimple Shah had acquired 54,300 shares valued at Rs26.60 lakh and sold a total of 7,910 shares for Rs7.33 lakh of the company, SEBI said.
On the other hand, Piyush Shah bought 5.32 lakh shares for Rs4.24 crore and sold 6.82 lakh shares for Rs5.67 crore.
The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year
New Delhi: State-run Rashtriya Ispat Nigam's (RINL) Rs2,500-crore initial public offer (IPO) is unlikely to hit the market in current fiscal as it has to start the process anew following expiry of the offer document filed with Securities and Exchange Board of India (SEBI), reports PTI.
"The company had filed red herring prospectus with SEBI on 8th October hoping to launch the IPO on 16th October. Now, it has gone past three months and with this, it has lost validity. This calls for submission of documents afresh which take some time," a Steel Ministry official said.
"Taking the time required for RINL to file offer document into consideration, it is unlikely that the issue will be launched within the current fiscal," he added.
The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year.
First, it was put on hold as a result of volatile market conditions and then due to a major explosion, which took place during the trial of a new oxygen control unit near the steel melting shop at Vizag Steel Plant (VSP).
Finally, in October last year, it was deferred following disagreements on the pricing of issue with merchant bankers.
The issue was supposed to kick-start the government's Rs30,000 crore disinvestment process for the current fiscal that has mopped up a little over Rs6,900 crore so far. Ten PSUs that include Oil India, NTPC, Bhel and SAIL are on the list of the government's disinvestment programme.
RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10% of governments 100% stake in the firm.