New Delhi: The government on Tuesday fixed a price band of Rs340-Rs375 a share for raising up to Rs1,238 crore through initial sale of shares in Manganese Ore India Ltd (MOIL), which will become the fifth state-run company to see divestment this fiscal, reports PTI.
The Centre will dilute 10% stake in the country's largest manganese manufacturer, while Madhya Pradesh and Maharashtra governments will shed 5% each through the public offer that will open on 26th November and close on 1st December.
The issue would raise a total of Rs1,238 crore at the upper end of the price band, including 5% discount to retail investors and MOIL employees.
A meeting of the Empowered Group of Ministers (EGoM), chaired by finance minister Pranab Mukherjee and attended by home minister P Chidambaram and Planning Commission deputy chairman Montek Singh Ahluwalia, fixed the price band at Rs340-Rs375 a share, according to sources.
The initial public offer (IPO) will consist of over 3.36 crore shares. MOIL has a total employee strength of 6,734 and about 3,000 employees have already opened demat accounts.
For the half year ended 30th September, the company's turnover was at Rs635 crore as compared to Rs430 crore in the first half of previous fiscal. Profit after tax for the first half of this year stood at Rs330 crore against Rs201 crore in the year-ago period.
The government, which hopes to raise Rs40,000 crore through disinvestment this fiscal, has already mopped up close to Rs20,000 crore through divestment in PSUs Satluj Jal Vidyut Nigam, Engineers India, Coal India and Power Grid.
After MOIL, the follow-on public offer (FPO) of state-owned Shipping Corporation of India is next in line. Its public offer would open on 30th November and close on 3rd December. This would be followed by disinvestment in Hindustan Copper, whose FPO opens in the first week of December.
The government is likely to dilute its stake in Indian Oil Corporation, ONGC and SAIL in the last quarter of the current fiscal.
In 2009-10, the government had raised Rs25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.
Money Matters Financial Services Ltd. which raised Rs445 crores in November from four top foreign investors, has been under a CBI raid since last night
Money Matters Financial Services Ltd. (MMFSL), a Mumbai-based non-banking finance company (NBFC) was raided by a large team of officials from the Central Bureau of Investigation investigating irregularities regarding market-related transactions attached to politicians.
Money Matters, until recently a small-time NBFC into debt market financial services company (debt syndication, debt placement) managed to raise a stupendous Rs445 crore at Rs625.25 per share in late October through Qualified Institutional Placement (QIP) from top investors to supposedly to grow its asset financing business such as short-term corporate funding, structured product funding, margin funding and acquisition funding to corporates.
The deal had raised a lot of eyebrows. At a time when NBFCs and debt market brokers have been struggling to grow their businesses, it was amazing that a company like Money Matters with little pedigree could raise Rs445 crores from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO. These investors picked up as much as 60% of the placement. The lead manager to the issue was India Infoline.
Rajesh Sharma is chairman and managing director of MMFSL. The CBI is apparently investigating whether MMFSL was involved in deals with political connections. Recently, IL&FS Milestone Fund had picked up a 74% stake in HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai for around Rs 575 crore. Interestingly, Money Matters Financial Services Ltd was the sole advisor to the deal. HCC's promoter Ajit Gulabchand, who is setting up a controversial township called Lavasa near Pune, is known in market and business circles to be close to Agriculture minister Sharad Pawar.
The stock of Money Matters which was languishing at Rs7 in late 2007, jumped to around Rs120 in early January 2008 and fell to Rs50 in April 2009. Since then, it rose vertically all the way to Rs787 in the last week of October just after the QIP. Yesterday, the stock was quoted at Rs663.90.
What is today Money Matters, was incorporated as Daiwa Securities Limited on November 15, 1994. The Company’s name was changed to Dover Securities Limited on May 19, 1999 with its registered office at 501, Shubham, 1, Sarojini Naidu Sarani, Kolkata-70001. The registered office was shifted to 1-B, 1st Floor, Court Chambers, 35, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020. In March 2008, Dover bought over unlisted Money Matters Securities P Ltd. On 6th October 2008, the name was changed from Dover Securities Limited to Money Matters Financial Services Limited.
The Indian market is likely to witness a soft-to-flat opening on concerns over the geo-political tensions in Korea and the slowing pace of the global economic recovery. Tensions in Asia spooked the US markets overnight causing key indices to drop between 1% and 1.5%. Markets in Asia were mixed in morning trade on Wednesday on account of the developments in the Korean peninsula and on the lingering debt crisis in Europe. The SGX Nifty was up eight points at 5,942, as compared to its previous close of 5,934.
The domestic market was highly volatile yesterday on the back of the developments along the Korean border and over concerns over the political future of the UPA-led government, which has been rocked by corruption allegations. The Sensex opened at 19,841.42; 116.17 points lower compared to its previous close of 19,957.59. It hit an intraday low of 19,342.69-which is the maximum low in the past three months from 16 September 2010 and closed at 19,691.84, 265.75 points down (1.33%) from the previous day's close. The Nifty ended 75.25 points down (1.25%) to 5,934.75.
The US markets closed sharply lower on Tuesday following tensions after North Korea artillery shells at a South Korean island. In economic news, the Federal Reserve on Tuesday revised downwards economic growth forecasts for next year. Besides, a fall in sales of existing homes in October made investors wary of the pace of economic growth in the world’s largest economy.
The Dow tumbled 142.21 points (1.27%) to 11,036. The S&P 500 shed 17.11 points (1.43%) to 1,180. The Nasdaq declined 37.07 points (1.46%) 2,495.
Markets in Asia were mixed due to tensions in Korean peninsula and on continuing debt problems faced by members of the European Union further aggravated by rating agency S&P cutting Ireland’s credit rating. The pace of economic recovery in the US, punctuated by the Fed’s lowering of economic growth forecasts for the next year also played on investors’ minds.
The Shanghai Composite surged 0.85%, the Hang Seng jumped 1.08%, the KLSE Composite gained 0.11%, the Straits Times advanced 0.70% and the Taiwan Weighted rose 0.03%. On the other hand, the Nikkei 225 tanked 0.75% and the Seoul Composite lost 0.23% in early trade this morning. . The SGX Nifty was up eight points at 5,942, as compared to its previous close of 5,934.
A committee appointed by the Securities and Exchange Board of India has opposed listing of stock exchanges on bourses arguing that any downward movement of their share prices could hit the credibility of the market institutions.
The recommendation of the Bimal Jalan Committee, if accepted, would derail the plans of the country's two premier bourses—the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)—to go public.
In another development, the MCX Stock Exchange on Tuesday said the recommendations made by a SEBI-appointed committee on bourses would promote monopoly and anti-competitive business practices in the market.
Without naming the largest stock exchange NSE, rival MCX-SX said the recommendations made by the Bimal Jalan committee “would continue to protect the monopolistic market structure and the perverse anti-competitive practices adopted by some.”