Companies & Sectors
Warburg Pincus open offer to Future Cap shareholders delayed

The Kishore Biyani-led Future group company said the open offer by Warburg Pincus to buy 26% in Future Capital is delayed due to regulatory clearances  

 
New Delhi: Future Capital Holdings on Monday said the open offer by US-based private equity firm Warburg Pincus for acquiring 26% stake in the company has been delayed as it has not received regulatory clearances, reports PTI.
 
The offer was originally scheduled to open on 25th July and close on 11th August.
 
"The open offer is delayed from its tentative schedule as the relevant parties are in the process of obtaining necessary regulatory approvals," Future Capital Holdings said in a filing to the BSE.
 
The shareholders of the target company as requested to note that the revised timeline for the open offer will be intimated on receipt of regulatory approvals, it added.
 
Last month, debt-ridden Future Group had sold its 53.67% stake in Future Capital Holdings to Warburg Pincus for an estimated Rs560 crore.
 
After the stake purchase, the US-based PE firm had made an open offer to acquire 1.77 crore shares or 26% stake in Future Capital Holdings at Rs162 apiece.
 
As per the SEBI norms, Warburg Pincus will have to make an open offer of 26% to the shareholders of Future Capital Holdings. Open offer provides an opportunity to the existing investors to exit the company.
 
The open offer share price of Rs162 apiece is at 14% premium over the price when the sale announcement was made on 4th June.
 
The flagship Future Group of Kishore Biyani, which is into retail business through Big Bazaar, Food Bazaar and e-zone and Pantaloon has over Rs5,000 crore debt.
 

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Drought impact: Feed prices skyrocketing

Poultry feed prices jumped as much as 69% in July from a month ago. Is this an early indicator of the potential impact a drought could have on food prices in India?  

 
Feed prices in India are skyrocketing and the price increase is outpacing those during the 2009 drought, according to Nomura, a global stockbroking company. “Average prices of poultry feed—consisting of oilseed cakes, rice bran, grounded maize and soya—rose by 69% year-on-year (y-o-y) in July up from 18% in June, because of the lack of rainfall and higher global prices. These price increases outpace those during the 2009 drought,” it said in a research note.
Nomura said rising feed prices are an early indicator of the potential impact that the deficient monsoons could have on food prices. 
 
According to Nomura, feed is a key input in poultry farming and this sharp price increase suggests that prices of eggs and chicken (protein food items) may rise sharply in the coming months. “If farmers choose to substitute poultry feed with cereals then prices for cereals could rise as well,” it added.
 
“As delayed monsoons hurt production of vegetables, cereal and oilseeds, we expect wholesale price index (WPI) food (primary and manufactured) inflation, which is currently 9% y-o-y, to rise into double digits in the coming months. This will keep both WPI and consumer price index (CPI) inflation elevated above the central bank’s comfort zone,” Nomura added. 
 

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Bank of Baroda Q1 net profit up 10% to Rs1,136 crore

The Bank' interest income rose 29% to Rs8,557 crore, while total revenues increased 28.3% to Rs9,328 crore during the first quarter

 
Mumbai: State-run lender, Bank of Baroda on Monday reported a rise of 10.3% in net profit at Rs1,138 crore for the quarter ended June 2012 as compared to Rs1,032 crore in the same period last year, reports PTI.
 
Its total reveneus, including interest income rose 28.3% to Rs9,328 crore for the quarter ended June 2012 from Rs7,272 crore in the year ago period.
 
Interest earned during the June quarter increased to Rs8,557 crore as compared to Rs6,631 crore for the quarter ended June 2011, representing an increase of 29.0%.
 
The bank's net NPA jumped 80.1% to Rs1,844 crore during the first quarter as against Rs1,024 crore for the quarter ended June 2011.
 
Net NPA of the bank was at 0.65% as on June 2012 as compared to 0.44% as on June 2011.
 
Bank of Baroda's Capital Adequacy Ratio (CAR) is at 13.7% as on June 2012 as compared to 13.1% a year ago.
 

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