The promoters of TeleCanor allege that investor Hemant Gupta is trying all the tricks to make an open offer for the company. Mr Gupta powerfully argues otherwise
The messy fight between the promoters of TeleCanor Global Ltd and savvy investor Hemant Gupta has surfaced once again where Mr Gupta is on the verge of making an open offer to buy the company if his 1 million warrants are converted into shares.
However, on Thursday, TeleCanor informed the Bombay Stock Exchange (BSE) that “the company is in the process of refunding any amount paid for conversion which is not accompanied by a consent or full payment from the warrant holder. Such refunds will be processed after deducting the initial amount paid for advance amount for share warrants.”
TeleCanor held a board meeting on 26th February to discuss the various complaints of Mr Gupta and also to consider conversion of his warrants into shares. But there seems to be some confusion regarding the ownership of these shares.
“He (Mr Gupta) wants to take away 4.2 lakh shares from the purview of (the) takeover code. He has 2.9 lakh shares, which are with Motilal Oswal Financial Services Ltd (MOFSL),” said Maruti Ram, managing director, TeleCanor.
“On 3 September 2009, shares were transferred from Mr Gupta to Motilal Oswal but it did not appear on the BSE website. We still don’t know who is the real owner of these shares. Why do we have to take his consent if the warrants are fully paid?” asked Mr Ram.
As of end-September 2009, Mr Gupta had 7,72,097 shares or about 12.34% stake in TeleCanor. However, subsequently, his name disappeared from the public shareholders’ list. According to BSE data, as of December 2009, MOFSL held 1,44,900 shares or around 2.5% stake in TeleCanor.
Mr Gupta admitted that he bought some shares from MOFSL and after his failure to pay, the brokerage took over the shares. “I had purchased some shares from MOFSL under margin funding and I have not made the payment, so MOFSL has taken those shares back,” admitted Mr Gupta. An email query sent to MOFSL from Moneylife remained unanswered till writing the story.
TeleCanor promoters have alleged that MOFSL is not disclosing Mr Gupta’s name. Mr Ram said that Mr Gupta has not even signed a consent letter that was sent to him on Wednesday.
If Mr Gupta’s take goes above 15% following conversion of his warrants into shares, he will have to make an open offer. TeleCanor officials met BSE officials on Thursday to discuss the issue, but refused to divulge the details of their discussion.
Separately, Mr Gupta has also questioned how BSE can allot 45 lakh warrants to the promoters which is over 90% of paid-up equity of the company (Rs5 crore).
Moneylife had earlier reported that Mr Gupta had accused the promoter of siphoning off funds meant for funding of a payment gateway business. (Read here). TeleCanor shares shed 23% to Rs33.75 as on 4 March 2010 from Rs43.80 on 8 October 2009.
According to Mr Gupta, shareholders Vimal and Om Prakash agreed to take around 2 million warrants from Maruti Ram at Rs17-18 (issue price was Rs11.80 which means Maruti Ram will make a profit of Rs5-6 per warrant). “These two gentlemen have paid a total of Rs1.80 crore (part of it in the name of TeleCanor and part in the name of Maruti Ram). This entire money has been deposited by (the) promoter in TeleCanor’s bank account,” alleged Mr Gupta.
He also alleged that the promoter agreed to sell 1.50 lakh warrants at Rs19 per warrant, to Mukesh Shah, a shareholder in TeleCanor. According to Mr Gupta, thereafter, Mr Shah prepared two demand drafts favouring TeleCanor and also in the name of Mr Ram for 90% premium but did not hand over the demand draft to Mr Ram as he was not given possession of warrants and the transfer deed (signed by the seller).
Mr Gupta demands that the BSE declare the promoter’s warrants null and void. “He (Mr Ram) did not pay cash to TeleCanor for application money. He just passed accounting (entries in) the journal voucher. Only under special conditions, a promoter can convert his loan into equity for which disclosure has to be made and permission has to be taken from regulatory bodies to convene an Extraordinary General Meeting (EGM),” added Gupta. He also alleged that Mr Ram has frequently cancelled board meetings due to lack of quorum, but the BSE was keeping quiet. “It makes a mockery of (TeleCanor’s) listing,” said Mr Gupta.
Mexican officials have confirmed the first mutation of the A (H1N1) flu virus in a girl who survived the infection
Mexican officials have said that they have confirmed the first mutation of the A (H1N1) flu virus in a girl who survived the infection, reports PTI.
Health minister Jose Angel Cordova told Mexican journalists yesterday that the case was the first confirmed mutation of the swine flu virus, though there were 423 other suspected cases.
He said that the girl was treated two months ago at a hospital in Mexico City for a respiratory illness and then returned with a case of severe pneumonia, from which she recovered.
Mr Cordova called on anybody with risk factors that could make them more susceptible to the virus to be vaccinated against it, warning that "these viruses can mutate at any time" with serious consequences.
Officials say 1,088 people have died in Mexico from the virus commonly referred to as the swine flu since the pandemic first emerged in the country in April 2009.
Nearly 16,000 people have died worldwide from the strain after it spread into 212 countries and territories.
The World Health Organisation said last month that it was too early to declare that the peak of the global flu pandemic had passed as infections were still rising in regions such as western Africa.
Fresh developments in Greece and strong Indian economic data helped Indian markets to stay positive
Indian markets continued their gains on the back of strong services and manufacturing activity in the month of February and rise in exports for the third consecutive month in January. Positive global markets following fresh developments in Greece also had their impact on Indian bourses. At the end of the day, the Sensex was up 227 points from the previous day’s close at 17,000, while the Nifty gained 71 points to close at 5,088.
Yesterday we had said to watch out for 17,000 on the Sensex and the index did breach this point. We expect Indian markets to continue their uptrend. However, wait to buy at a dip.
At the end of the day, Reliance Industries Limited (RIL) gained 4% after reports stated that the board of LyondellBasell Industries had rejected an acquisition bid by the Indian company.
Tata Power Company rose 5% on reports of its plans to increase coal mining capacity in Indonesia by a fourth, starting in the latter half of FY11. The capacity will be increased to 75 metric tonnes (MT) a year from the current 60MT.
Steel Authority of India rose 1% after the company raised product prices by Rs500-Rs600 a tonne, after factory-gate duties were raised in the Union Budget on 26 February 2010.
ACC remained flat after the company's cement dispatches declined 2.29% to 17.1 lakh tonnes in February 2010 over February 2009.
Jaiprakash Associates rose 6% after the company’s cement shipments in February 2010 jumped 61% from a year earlier to 11.6 lakh tonnes.
Orient Abrasives is setting up two 1.5MW wind turbine generators in Kalmangi (Karnataka) for generation of power. The stock was up 1%.
TAKE Solutions remained flat after the company announced a partnership with Liquent Inc, a life sciences solutions company.
Hindustan Dorr Oliver, a subsidiary of IVRCL Infrastructures and Projects Ltd, has acquired UK-based heavy engineering company DavyMarkham. The stock was up 2%.
Era Infra Engineering Ltd rose 1% after the company secured contracts worth Rs508.89 crore.
During the day, agriculture minister Sharad Pawar said that the winter-sown crops output will be good and will ease high food prices.
Steel secretary Atul Chaturvedi said that steel demand is seen rising by 10% in the fiscal year to March 2011, helped by higher spending on infrastructure.
According to reports, business activity among Indian service companies grew at its fastest pace in 17 months in February 2010, climbing for the third straight month as both output and new orders increased. The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 60.9 in February 2010, its highest since September 2008, and compared with 59.0 in January. The manufacturing industry in February 2010 grew at its fastest pace in 20 months, expanding for the third month, thanks to increasing output and new orders, a survey showed. The HSBC Markit Purchasing Managers' Index, based on a survey of 500 companies, rose to 58.5 in February, its strongest reading since June 2008, from 57.7 in January. A reading above 50 means activity is expanding.
During the day, Asia’s key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan rose between 0.31%-0.78%; indices in Hong Kong and Singapore fell between 0.14%-0.37%.
According to Australia's Bureau of Statistics, gross domestic product climbed 0.9% from the third quarter.
On Tuesday, 2 March 2010, the Dow Jones Industrial Average was up 2 points whereas the Nasdaq Composite and the S&P 500 were up 7 points and 3 points respectively.
In premarket trading, the Dow was trading 5 points higher.