Several months after the Osian Art Fund period has ended, some investors still await final payment, while a few others are waiting for their first payments
The Osian Art Fund’s three-year period ended last year. Despite the major delays, investors still await final payments, while a few are in anticipation of the very first payment itself. To add to the woes of investors, the Fund’s NAV (net asset value) is just Rs111.72.
The latest that investors have heard from Osian officially, is a letter dated 24 March 2010. It states, “We sincerely regret and apologise for the delay caused to yourself in not being able to meet the previous deadlines for repayment. However, let me reassure you that we will shortly complete the process of redeeming your investment in the ‘Osian’s Art Fund-Contemporary 1 Scheme’ latest by the 3rd week of April 2010.”
The letter further states, “The final NAV is Rs111.72 (cum-income). A detailed statement of your account will also be sent to you shortly.” However, neither the statement of account nor the final payment has reached the investors with whom Moneylife has been in touch.
Further, not all investors have received the first payment. As Moneylife had earlier reported, some of the investors who had invested through ABN AMRO still await first payments.
Moneylife has spoken to two ABN AMRO customers who have not received their first payments. “ABN AMRO officials state that the payments have been first made to the small investors from the smaller cities,” stated an investor who has invested a large amount in the Fund through the Bank.
“There are a few final investors who are being paid in this coming week. It has nothing to do with them being investors with ABN AMRO or any other bank,” said Neville Tuli, chief advisor, Osian Art Fund, on being questioned whether a few investors who invested through ABN AMRO still await first payments.
The Osian Art Fund was a 36-month close-ended scheme launched in July 2006. At the time of exit company officials claimed that the returns would be around 5% per annum. As of July 2006, the fund’s total corpus was Rs102.40 crore and it had 656 unit-holders across 39 cities.
The weak rally is still playing out. We maintain that a dip is likely over the short term
The market was up today, taking a cue from global bourses, with bank and software stocks supporting the uptrend. The Sensex ended at 17,558, higher by 55 points (0.3%) and the Nifty ended at 5,278, higher by 24 points (0.4%). The market started the day with a sharp rise and touched the intraday high of 17,646 in the early morning session. However, it pared its gains and traded throughout the day in a narrow range.
Asian markets rose for the first time in four days as improved quarterly results buoyed investors’ sentiment. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Indonesia were up by 0.08% to 1.42%. Taiwan’s main index fell 0.62%. US stocks surged on Thursday (29th April), after fear subsided over the eurozone debt crisis. The Dow rose 122 points (1.10%) to 11,167. The Nasdaq gained 40 points (0.63%) to 2,512 and the S&P 500 was up 15 points (1.3%) to 1,206. The US economy’s growth is expected to slow down in the first quarter. However, growth in consumer and business spending is likely to be robust. The Bank of Japan has said that it will soften monetary policy further to spur economic growth. The central bank kept the interest rate unchanged at 0.1% at its policy meeting. It also forecast that the consumer price index will edge up to 0.1% by March 2012, relieving concerns over the persistent price decline that is threatening Japan’s economic recovery.
Closer home, the consumer price index (CPI) rose 14.86% in March from a year earlier. The industry secretary said that the industrial output growth in March is expected to be around 15% on a year-on-year basis. In February, industrial output grew an annual 15.1%. The government has pledged to reduce the fiscal deficit and also increase spending in infrastructure and has announced changes in personal tax slabs for individuals. The government is set to borrow a record $100 billion in FY11 to fund its fiscal deficit, which is projected to be 5.5% of gross domestic product. The fiscal deficit has been a dominating factor in the monetary policy of the Reserve Bank of India, limiting its option in its fight against inflation which is near 10%.
Foreign institutional investors were net buyers on Thursday of Rs90 crore. Domestic institutional inventors also bought stocks worth Rs266 crore. The rupee was strong due to the small gain in the equity markets and on the weakness of the dollar.
Spanco (up 17.4%) and GTL (up 1.4%) have emerged as the highest bidders to distribute power in two cities in Maharashtra. The bids were called by State-owned Maharashtra State Electricity Distribution Company for appointing licensees to distribute electricity in Nagpur and Aurangabad. Pantaloon Retail (up 1%) and its unit Future Value Retail plan to issue non-convertible debentures worth Rs750 crore in the next three-four months. The proceeds will be used to repay debt and convert certain short-term loans into longer duration debt. MindTree (down 0.08%) has received an application development service offer from the government’s Unique Identification (UID) Project at a cost of about Rs20 crore. Peninsula Land (up 0.61%) has invested Rs115 crore to acquire a plot for redevelopment in south Mumbai. Air India has written to the government, asking it not to allow the tie-up between Kingfisher Airlines (up 2.5%) and British Airways, arguing that the move will hurt its commercial interests. Puravankara Projects (up 3.8%) plans to launch about 18 million square feet of residential space in FY11 on the upsurge in demand for houses in south Indian cities. Jindal Steel & Power (up 0.3%) is close to acquiring Oman-based Shadeed Iron and Steel for nearly $500 million. Tata Motors (up 3.5%) touched its 52-week high taking a cue from the surge in its ADRs which rose 2.46% on Thursday.
UltraTech Cement (down 4.5%) posted growth of 3% in sales; its operating profit declined 24% in the March quarter over the year-ago period.
The government has already approved 20% share sale in the steel major, which will include 10% equity dilution by the government and the company raising fresh equity in the same proportion
The government today said that it is targeting to raise Rs18,000 crore through the 20% share sale in the country's largest steel-maker SAIL, reports PTI.
“At current prices, total receipt from the disinvestment and issue of fresh equity would be approximately Rs18,000 crore,” steel minister Virbhadra Singh informed the Rajya Sabha today.
The minister, however, said, “The actual amount that would be raised through disinvestment as well as from FPO would depend on a number of factors, including the prevailing market conditions, share price and the investors’ interest at the time of the actual disinvestment.”
The SAIL counter today closed at Rs218.55, down 1.38%, on the BSE.
The government has already approved 20% share sale in the steel major, which will include 10% equity dilution by the government and the company raising fresh equity in the same proportion. At present the Centre holds about 85% stake in the steel major.
The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL—among others—in the current fiscal to raise about Rs40,000 crore.