Companies & Sectors
Uninor plans to auction telecom business; Unitech opposes

Telenor wants to scrap its JV with Unitech and migrate its business to a new company while seeking fresh operating licence  

 
New Delhi: Norway's Telenor-controlled Uninor on Wednesday said it will auction all of its telecom business before 7th September when the company becomes unoperational, a move strongly opposed by the company's minority stakeholder Unitech Ltd, reports PTI.
 
Telenor, which holds 67.25% in Uninor, is keen to acquire the business in the forth coming auction, Uninor said in a statement.
 
The Norwegian company is seeking to scrap the joint venture with Unitech and migrate its business to a new company to seek fresh operating licences as the JV's telecom permits were among the 122 quashed by the Supreme Court in February.
 
Uninor said it wants to auction the company's business, including its assets, while it is a going concern before the 7th September deadline set by the apex court for winding up of operations of all the firms whose licences had been cancelled.
 
"Unitech had dissented and vetoed on Uninor proposal to auction assets. The auction notice of Uninor can best be termed as illegal," Unitech spokesperson said, indicating that the company may initiate legal action is Uninor was to go ahead with the auction.
 
Uninor said auction will allow the company to generate the maximum possible returns for its creditors and secure the future of Uninor's customers, employees and business partners in the hands of new ownership.
 
"Telenor Asia Pte Ltd, majority shareholder of the company, has indicated its willingness to participate through an Indian affiliate entity in the auction of the business of the company," Uninor statement said.
 
Uninor in an auction notice issued today mentioned of the dissent of Unitech nominee director on board of the company.
 
"The interested bidders may note that the nominee directors if Unitech Ltd and its affiliated companies, the minority shareholders of the company, have recorded their dissent to such an auction," the notice said.
 
Unitech hold 32.75% stake in Uninor.
 
Uninor said "an open auction will also remove any dispute around the real valuation of the Uninor business".
 
Valuation of Uninor has been a major bone of contention between Telenor and Unitech. Unitech is willing to exit Uninor but feels the valuation put by Telenor was a fraction of Uninor's real worth.
 
Uninor spokesperson said that the value realised from auction will be divided among stakeholders in the ratio of their shareholding pattern.
 
Telenor, which had accused Unitech of "fraud and misrepresentation" after the licence cancellation order, contested Unitech's claims that it had veto rights to block any asset transfer.
 
"We believe these are automatically forfeited once it is established that the shareholders' agreement and all rights enshrined in it, was based on fraud. We are willing to establish this in court, should the need arise," it said.
 

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FII inflows in stocks at five month high in July

During July, FIIs bought shares worth Rs49,557 crore while selling shares of Rs39,285 crore, translating into a net inflow of Rs10,273 crore, according to the data from SEBI

 
New Delhi: Overseas investors poured more than Rs10,000 crore into the Indian equity markets in July -- the highest monthly inflows in five months -- sidelining concerns over weak monsoon, slowing economic growth and a high interest rate regime, reports PTI.
 
Foreign institutional investors (FIIs) were gross buyers of shares worth Rs49,557 crore, while they sold equities amounting to Rs39,285 crore, translating into a net inflow of Rs10,273 crore ($1.85 billion), according to the data available with the Securities and Exchange Board of India.
 
This was the highest net investment by FIIs in stocks since February 2012 when they had infused Rs25,212 crore.
 
Market experts said foreign investors have sidelined concerns over weak monsoon, slowing economic growth and a high interest rate regime, mainly on hopes that government would initiate fresh reforms initiatives.
 
"Besides, investors are expecting that the government would initiate a few key reforms before the start of the Monsoon Session of Parliament on 8th August," CNI Research CMD Kishor Ostwal said.
 
"The huge FII inflows were not driven by the country's fundamentals, its mainly because of the global factors such as ECB and the US Federal Reserve. In India, there are some concerns like weak monsoon, slowing economic growth among others," Destimoney Securities MD and CEO Sudip Bandhopadhyay said.
 
In addition, FIIs have also invested Rs3,392 crore in the debt market last month.
 
Buoyed by strong inflows, BSE's benchmark Sensex rose 194 points or one% last month to settle at 17,236 points yesterday.
 
After taking the latest inflows into account, FIIs investment in the equity market stood at Rs52,266 crore so far in 2012 and Rs24,253 crore in the debt market during the same period.
 
As on 31st July, the number of registered FIIs in the country stood at 1,757 and total number of sub-accounts were 6,343 during the same period.
 

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About 10% of rural India lives on less than Rs17 a day: NSSO survey

According to the National Sample Survey Organisation, poorest 10% from rural India had an average monthly per capita expenditure of Rs503.49, while the same in urban areas comes to Rs702.26 or Rs23.4 a day  

 
New Delhi: Two decades of economic reforms and drum beating about inclusive growth seem to have failed to change the face of rural India as 10% of the population live on less than Rs17 a day, reports PTI.
 
According to a 2011-12 government survey on household consumer expenditure, "The poorest 10% of India's rural population had an average monthly per capita expenditure (MPCE) of Rs503.49 per month." 
 
Their urban counterparts are only slightly better with daily per capita expenditure of Rs23.40.
 
As per the National Sample Survey Organisation's (NSSO) 68th round of survey for the period of July 2011 to June 2012, "The poorest 10% of the urban population had an average MPCE of Rs702.26."
 
The survey, which was conducted two decades after the economic reforms were launched in 1991, is aimed at measuring the living standards of people in the country.
 
This is in fact much lower than the poverty line of Rs28.65 per capita daily consumption in cities and Rs22.42 in rural areas fixed by the Planning Commission for 2009-11 as released in March this year.
 
In urban areas, it said, 70% of the population live on a daily expenditure of about Rs43.16. Although the person belonging to the top 20% of population consumes more than Rs100 a day.
 
As regards the rural areas, the survey said, half of the population was living on a per capita daily expenditure of Rs34.33.
 
"In rural areas, half of the population belong to households with MPCE below Rs1,030 and nearly 40% of the rural population had MCPE of below Rs 922," the survey said.
 
The provisional results of the NSS survey are based on sample of 59,070 households in 7,391 villages and 41,602 households in 5,223 urban blocks.
 

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