JSW Steel has challenged the orders of the Delhi High Court which had approved the Rs220 crore bid of the Vedanta Group company and directed IFCI to sell the debt-ridden Bellary Steel to Sesa Goa
New Delhi: The Supreme Court today issued notices to Sesa Goa and Industrial Financial Corporation of India (IFCI) on a plea by JSW Steel challenging the Delhi High Court's approval to the Vedanta Group company's Rs220 crore bid to buy out Bellary Steel and Alloys (BSAL), reports PTI.
A bench comprising Justices Altamas Kabir and Cyriac Joseph issued notices to Sesa Goa and IFCI directing them to file their replies within three weeks. The apex court also directed the parties concerned to maintain status-quo as of today till the next date of hearing.
JSW Steel challenged the orders of the Delhi High Court which had approved the Rs220 crore bid of the Vedanta Group company and directed IFCI to sell the debt-ridden Bellary Steel to Sesa Goa.
Last month, Sesa Goa had said that it has acquired the assets of BSAL, put on the block by a consortium of lenders led by IFCI for Rs220 crore.
The assets of the acquired company have been transferred on "as is where is" basis to Sesa Goa effective 22nd March, the Vedanta Group firm had said in a statement.
BSAL, a Karnataka-based company promoted by S Madhav and S Parvathi, had embarked on a plan to set up an integrated 0.5 million tonnes per annum (MTPA) capacity steel plant with provision of taking it to 2 MTPA, at Bellary on 700 acres of freehold land.
However, BSAL could not complete the project and ran into debt, following which the lenders consortium led by IFCI put it on the block for sale.
The selloff process was eventful. Sesa Goa fought a legal battle against the process adopted by IFCI in December, in which JSW Steel was declared winner for its bid of Rs210 crore for acquiring the asset of BSAL.
However, Sesa Goa in its plea before the high court in January this year contended that IFCI initially announced the Vedanta Group firm as the only qualified bidder and declared the company winner verbally for its bid of Rs206 crore.
Following this, the Delhi High Court allowed the Sesa Goa to rebid in an inter se bidding process, where the Goa-based company put a successful bid of Rs220 crore.
Inter se bidding process means the shortlisted companies will have to rebid with their fresh offer.
On a consolidated basis, IFCI's net profit rose to Rs745.50 crore for 2010-2011 as compared to Rs693 crore in the previous fiscal, a 7.58% growth
Mumbai: IFCI today posted a net profit of Rs233 crore for the fourth quarter ended 31 March 2011, down marginally by 4% from Rs243.30 crore in the corresponding quarter last fiscal, IFCI said in a filing to the Bombay Stock Exchange.
However, the total income of the firm rose by 32.5% to Rs716.60 crore for January-March quarter from Rs540.40 crore in the corresponding period last year, reports PTI.
The board has proposed a 10% dividend of Re1 per share for the year ended March 2011.
For the year ended 31 March 2011, the company had posted a net profit of Rs706 crore against Rs671 crore in the previous year, an increase of 5%.
Total income also improved from Rs1,679.30 crore for the year ended 31 March 2010 to Rs2,486.30 crore for the last fiscal.
On a consolidated basis, IFCI's net profit rose to Rs745.50 crore for 2010-2011 as compared to Rs693 crore in the previous fiscal, a 7.58% growth.
Lamon Rutten, MD & CEO, MCX said, "Gold is considered as an investment option, and has now become a part of portfolio of many investors and hedge funds. Availability of Gold Petal, a product that can act as a SIP product, will attract retail participants"
Mumbai: Multi Commodity Exchange of India (MCX) today launched one gram gold contract called Gold Petal futures contract. Currently, Gold Petal May and June 2011 contracts have been offered for trading.
The trading unit of the gold contract is one gram and price quote for the contract is ex-Mumbai (inclusive of all taxes and levies relating to import duty, customs duty but excluding sales tax / VAT, any other additional tax or surcharge on sales tax, local taxes and octroi).
The delivery of contract is possible in dematerialised or physical form. The physical delivery would be available in multiples of eight gram coins with London Bullion Manufacturers Association (LBMA) certified 999 purity. The delivery centres identified are G4 Securitas at Mumbai, and other delivery centres at New Delhi, Ahmedabad, Hyderabad, Bangalore, Chennai and Kolkata.
Tick size of the contract is Re1 per gram and the maximum order size is 10kg. The initial margin required to trade will be 4% or based on SPAN, whichever is higher. The open position limit for members has been fixed at 12.5 MT for all gold contracts combined together or 15% of the open market position, whichever is higher, and for clients it is 2.5 MT of all gold contracts combined together.
Lamon Rutten, MD & CEO, MCX said, "Gold is considered as an investment option, and has now become a part of portfolio of many investors and hedge funds. Availability of Gold Petal, a product that can act as a SIP product, will attract retail participants."
MCX, India's leading commodity bourse, has developed different contract denominations to accommodate the needs of varied market participants. Apart from Gold Petal, other gold contracts that the exchange offers are Gold (1 Kg), Gold Mini (100 grams) and Gold Guinea (8 grams).