Deliberations on allowing insurance companies to list on the bourses have been going on between capital markets regulator SEBI and IRDA for nearly three years now
New Delhi: The Insurance Regulatory and Development Authority (IRDA) has sought the Life Insurance Council’s views on a revised draft of the proposed new guidelines for initial public offers (IPOs) by insurers, reports PTI.
Sources said the insurance regulator has sent a revised copy of the draft IPO guidelines to the council, seeking its comments prior to finalisation of the IPO guidelines for life insurance companies.
Deliberations on allowing insurance companies to list on the bourses have been going on between capital markets regulator Securities and Exchange Board of India (SEBI) and IRDA for nearly three years now.
SEBI had in October last year given the go-ahead to insurance companies for coming out with IPOs. Under the current SEBI law, companies which have a track record of three successive years profit and have been in business for 10 years are allowed to list on the bourses.
Several of the insurance joint ventures, including Reliance Life, are about to complete 10 years of operations in India, while HDFC Standard Life and ICICI Prudential Life have already completed a decade of business here.
At present, besides state-owned Life Insurance Corporation of India (LIC), 22 private companies are offering life insurance policies. Over the last 10 years, the industry’s assets grew seven-fold to over Rs14 lakh crore.
As per the disclosure norms in the offer document mandated by SEBI, the insurers would have to disclose risk factors specific to their companies.
Also, the offer document would have a glossary of terms used in the insurance sector.
For the fourth quarter, Mandhana Industries saw its net profit touching Rs17.47 crore, which is a 17.73 % rise over the net profit of Rs14.84 crore for the corresponding period last year
Textile & garment maker, Mandhana Industries Ltd, reported its annual audited profit & revenue numbers with a 33.96% rise in revenue and a robust 53.80% jump in the net profit for the year ended on 31 March 2011.
For the fourth quarter, while the company saw its net profit touching Rs17.47 crore, which is a 17.73 % rise over the net profit of Rs14.84 crore for the corresponding period last year, its net sales increased by nearly 57.88% to Rs294.49 crore in the reporting quarter from Rs186.53 crore for the corresponding quarter last fiscal year.
Manish Mandhana, managing director, Mandhana Industries said, “We are delighted that we have exceeded the targets set for ourselves for the year both in terms of sales and profits. Though the last quarter has seen declines in operating and net margins on back of volatile raw material prices and negative non-operating incomes, the annual sales and profits have both grown substantially over the previous financial year. The expanded weaving capacities became operational towards the end of the financial year. With the new garmenting capacities at Tarapur and Baramati becoming operational in phases in the next financial year and also with ‘Being Human’ retail stores rolling out by the end of calendar year, we are well poised to take a further leap in the ensuing year.”
Commenting on the challenges on the business front, Mitesh Shah, vice president, finance & corporate affairs, Mandhana Industries said, “The yarn prices continue to be highly volatile thereby affecting the stability of our existing operating margins. We have been partially successful in balancing the margins through achieving higher sales realisations with our cutting edge in designing coupled with wide product offerings both in fabrics and garments. We have also evolved a better mechanism to systematically hedge our foreign currency exposures and have been successful in managing the volatility in foreign exchange rates to our advantage. For the subsequent periods, our endeavour shall be to improve the operating margins through efficient and economical procurement practices.”
On Tuesday, Mandhana Industries ended 0.47% down at Rs180.10 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.10% to 18,011.97.
Bharat Forge had posted a net profit of Rs61.26 crore during the corresponding quarter of 2009-10
Bharat Forge reported a jump of 63.87% in its standalone net profit at Rs100.39 crore for the quarter ended 31 March 2011. The company had posted a net profit of Rs61.26 crore during the corresponding quarter of 2009-10.
Total revenue of the company grew by 45.44% at Rs836.54 crore during the quarter compared to Rs575.14 crore in the Q4 of FY’10, the company said in a filing to the Bombay Stock Exchange.
Of this, the income from its Indian operations rose by over 30% at Rs478.32 crore, while revenues from its overseas operations went up by over 63% at Rs358.17 crore, the filing added.
For the full year 2010-11, the consolidated net profit of the flagship company—Kalyani Group, stood at Rs296.60 crore against net loss of Rs76.44 crore in the previous year.
Its consolidated total income from operations during the year rose by over 52% to Rs5,151.76 crore, the filing said, adding that in 2009-10, it was Rs3,372.41 crore.
In a separate statement, the company said, “The non auto business has become one of the major drivers of our business. We expect that the non automotive business will continue to be strong with tremendous traction from global clients and new order wins.” It added that contribution of non-auto segment to the standalone business has increased to 37% in 2011.
On Tuesday, Bharat Forge ended 6.19% down at Rs304.40 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.10% to 18,011.97.