SpiceJet's new promoters to launch open offer on 18th October

New Delhi: SpiceJet's new promoters SunTV chief Kalanithi Maran and his company KAL Airways will launch an open offer to acquire an additional 20% stake in the low-cost carrier on 18th October, reports PTI quoting Enam Securities, the manager of the offer.

"The open offer will open on 18th October and will close on 6 November 2010, as per the revised schedule," Enam Securities, which is managing the offer on behalf of Maran and KAL Airways, said in a filing to the Bombay Stock Exchange (BSE).

In June, the Chennai-based industrialist had clinched a deal to acquire a 37.7% stake in the low-cost carrier for Rs739.57 crore from American investor Wilbur Ross, his investment companies and the Kansagara family-promoted Royal Holding Services Ltd.

Shareholders will be offered Rs57.76 for every share they hold in SpiceJet, translating into a 3% premium over the closing price of Rs56.05 on 11 June 2010.

This would involve an outgo of around Rs480 crore, taking the overall deal size to Rs1,220 crore as Maran and his firm KAL Airways had clinched the deal to pick up a 37.73% stake in SpiceJet at Rs47.25 apiece.

As per market regulator Securities and Exchange Board of India’s (SEBI) takeover norms, the new promoters of a company are required to make an open offer in case their stake crosses the threshold limit of 15%.

Enam's filing further said the Letter Offer to the equity shareholders of SpiceJet is in continuation and should be read in conjunction with the public announcement of 14 June 2010, pursuant to SEBI regulations.

It had said on 14th June that it will acquire as many as 8.30 crore shares of Rs10 face value at a price of Rs57.76 per fully paid-up equity share through the open offer, representing 20% of the equity in the company.

On Monday, Mr Maran had increased his direct stake in the airline to 25.12% by acquiring a 7.42% additional stake through off-market transactions for Rs135 crore.

The new promoters have also appointed Neil Mills, the former chief financial officer of Dubai-government controlled FlyDubai as the new chief executive officer of SpiceJet as part of its management revamp.


Rlys to provide additional coal to NTPC’s 2 plants

New Delhi: Indian Railways has assured state-owned NTPC of supplying it with additional coal for improving power generation at its stations in Farakka in West Bengal and Kahalgaon in Bihar, reports PTI.

The additional supply will help improve the generation level at both the stations to about 500 MW. They have been producing power at lower capacity due to coal shortage.

Sources said that at a meeting of senior officials of the two sides, Indian Railways has assured NTPC of additional movement of coal to the plants.

The railways will make arrangements for moving two more coal rakes a day to the stations, they added. A rake of coal roughly equals to 4,800 tonnes.

The Farakka and Kahalgaon stations have total installed capacity of 1,600 MW and 2,340 MW, respectively.

These two power projects faced critical coal shortage in the past due to transportation hurdles from the Rajmahal mines allotted for these plants, thereby leading to low electricity generation.

Last year, the government gave approval for implementing the Rajmahal Opencast Expansion Project, from 10.5 million to 17 million tonnes per annum with an estimated capital investment of Rs153.82 crore.

NTPC, on its part, has taken several initiatives to ensure increased availability of coal by buying it from different mines of Coal India, beside e-auctions and imports.

The installed capacity of NTPC is over 32,194 MW. It operates over 27 power stations across the country.

Currently, over 17,000 MW capacity is under construction at 17 projects in 12 states and NTPC plans to become a 75 GW company by 2017.


ML Foundation Event Update: Wills, nomination and transmission

Jayesh Desai, senior associate, Singhi & Co, engaged a large and enthusiastic audience on the issue of wills, nomination and transmission at the Moneylife Foundation on 9 October 2010

Dying without executing a 'will' can lead to a bitter and public dispute between the legal heirs, as was the case with the Ambani brothers. On the other hand, leaving a will behind may not guarantee against litigation, as was witnessed in the tussle over the inheritance of Priyamvada Birla that was contested by her confidant RS Lodha and the Birlas. Last month, the Bombay High Court rejected two different wills submitted by feuding siblings, both signed by their mother.

These cases notwithstanding, it is important that one executes a will-irrespective of whether you are young or old. A will is an expression of one's wish or desire. It is a legal document in which one gives instructions about what should be done with the money and property after one's death.

The issue of wills, nominations and transmission was discussed at a seminar conducted by Moneylife Foundation on 9 October 2010. Jayesh Desai, senior associate, Singhi & Co, engaged an enthusiastic audience. The vastness of the issue and the complications that do arise were brought out in the numerous questions by the participants.

Mr Desai elaborated on what is a will, its importance and terminology; he explained the requirements of a will and types of wills, the need for a probate, the cost of a probate, how to make changes in the will; and described crucial details involving documentation of nominations.

The main elements of a will are the name and identity of the author/testator, two witnesses and their addresses, the list of assets and their distribution. This must be signed by two witnesses and the testator in the presence of each other.

The different types of wills are: Privileged and Unprivileged wills, Conditional or Contingent wills, Joint wills, Mirror wills/Mutual wills, Duplicate wills, Concurrent wills, Sham wills and Holograph wills.

It may be surprising to know that 'nominations' can mean different things, based on the type of assets whether it is real estate, shares, bank account, insurance policy, and so on. There are differences also in the matter of probate, based on the location of the author of the will and the location of the property.

The religion of an individual matters for succession differently under the Hindu Succession Act, Muslim personal law, Parsi personal law,  Christian law and for others by default under the Indian Succession Act. Each has different tables for arriving at legal heirs in the absence of a will. The law also treats ancestral property differently, based on whether it is acquired by will or without a will.

There is a lot of confusion about wills. The facts on some of these issues are as follows: No stamp duty is payable on a will; no special paper is required to execute a will; registration of a will is not compulsory; in Mumbai, a will needs to be probated; a will should clearly demarcate the share of each of the beneficiaries.
Most of the questions that were raised by the participants related to their individual situations. Mr Desai addressed each question patiently, clearly explaining all important aspects.

Moneylife Foundation has planned more seminars on the subject of wills and nominations in response to the huge number of registrations that are still coming in for this programme.

Everybody would want to ensure proper legacy for their loved ones. The way to do this is through a comprehensive will and by completing nominations and transmission formalities for one's movable and immovable properties. Getting a will right is crucial if disputes between heirs over legacy are to be avoided. A will could clear the way. 
Pictures of the event



bharat shah

6 years ago

"As per sec.57 of Indian Succession Act if the will is executed only at metro cities like bombay,madras and calcutta,the probate is required,otherwise probate is not required. Will has to be probated if executed in Presidency towns, U can go for mutation basing on inheritance by will. Mutation only if the will is not disputed by others,otherwise probate at district court."

Subrahmanian S H

7 years ago

Sincere thanks.
In fact I missed the workshop badly as I didn't know the date.
We need a session on "Succession Issues". Kindly keep in mind.


7 years ago

Query: You have mentioned that 'in Mumbai, a Will needs to be probated'. Well, this is news. First of all, it is not clarified whether 'each and every Will whether consisting property or not should be probated ?' Secondly, if it is that Wills involving property should be probated, then I know of a case where recently a residential property in Mumbai was transferred to the beneficiary (out of four legal heirs with three issuing N.O.C. and indemnity from the beneficiary) by a Co-op. Soc. based on the Will without it being probated. Probating of a Will should not be mandatory and should be left to the legal heirs. If they expect a dispute then they can probate it, since probating is a time consuming and expensive affair. When even registering a Will is not mandatory, why Probate should be mandatory ? Seeking clarifications, answers, opinions on this.

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