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In the wake of escalating face-off between the Chennai-based Tractors and Farm Equipment (TAFE) and its American partner AGCO over the ownership rights of Massey Ferguson in India, a two-member bench of the Madras High Court has stepped in to direct the warring parties to “maintain status quo until the original applications are heard and disposed of by the learned single judge. “For avoidance of doubt, we hasten to add that the observations made herein are tentative and solely intended for the purpose of disposing of these appeals. We have not delved much into the various rival submissions. All rights and contentions are kept open,” the two-member bench said in its order on Monday. The relationship between TAFE, an Amalgamation group company, and AGCO Corporation of the U.S. hit a nasty bump in April last when the AGCO management terminated commercial agreements -– including the one on licensing the Massey Ferguson brand — with TAFE. The Chennai firm quickly got a stay on this from a commercial court. When AGCO subsequently confirmed the termination, TAFE filed a contempt petition in the Chennai commercial court. Separately, TAFE also moved the Madras High Court, asserting its ownership right to Massey Ferguson brand. TAFE had got a favourable interim order from the Madras High Court. TAFE had filed a civil suit before the Madras High Court against Massey Ferguson Corporation, a subsidiary of AGCO, claiming that the said trademarks are distinctive of TAFE in India and exclusively owned by it. It had sought the Madras High Court to declare that TAFE owns the Massey Ferguson brand/trademarks in India. With the HC bench asking both parties to maintain status quo, all eyes are on the upcoming proceeding before the single judge. It is “advantage TAFE” at the moment, however.
With only 12 days remaining for the BCCI Secretary Jay Shah to take charge as independent chairman of the International Cricket Council (ICC), clarity has not emerged as to who would perform the duties of the Secretary from December 1, 2024. First and foremost, election has not been called for the post, and this could be because the BCCI Constitution has adequate provisions for its Joint Secretary to perform the Secretary’s duties. The BCCI Constitution says: “The President shall, in the event of a vacancy or indisposition of an office bearer, delegate the functions to another office-bearer until the vacancy is duly filled up, or the indisposition ceases.” In this case the BCCI President Roger Binny has the right to assign duties to any other office-bearer. Shah who has been the Secretary from 2019 may be allowed a grace period to hand over the work to someone else. Next week is going to be hectic for the ICC to take a call on the format and venues of the ICC Champions Trophy 2025 (Feb-Mar) because the BCCI has conveyed to the ICC that India will not travel to Pakistan. The BCCI, nay Jay Shah, would like to see a finality to the Champions Trophy issue, in particular where India will play before he takes charge of the ICC. If the Champions Trophy has to take place, the Pakistan Cricket Board has to accept a hybrid model with one group (with India in it) playing league matches, most likely in Dubai and keeping the venue of the semi-finals and final, open. The PCB may not be in a position to lose the hosting rights and thereby with it a fee of around $ 70 million!
The ‘Satta Bazaar’ is betting down (dampened market sentiments) over Maha Vikas Aghadi (MVA) forming Maharashtra’s next government. A market player says, “Punters have never been wrong before. Dampened stock market spirits indicate the Mahayuti Alliance is unlikely to win notwithstanding sops galore unleashed by CM Eknath Shinde.” Differing with market pundits, BJP says, “Markets crashed after Foreign Portfolio Investors withdrew Rs 1.25 lakh crore in October (out of total Rs 71 lakh crore total stock investments in India) seeking better pastures after China announced stimulus. FPIs sold Rs 8700 crore stocks in April, Rs 25,600 crore in May then bought Rs 26,600 crore worth in June, Rs 32, 400 crore in July, Rs 7300 crore in August and Rs 57,700 crore in September before the big sell off in October. Already overleveraged NSE slumped, the subdued corporate sector quarterly results after much hype triggered a profit-booking mindset among investors.” Donald Trump’s ascendancy as the next U.S. president (previous tenure witnessed negative bias towards precious metals) bodes badly setting price corrections of gold and silver even as the U.S. dollar firms up, adding to Indian stock market woes. The BJP leader adds, “Maharashtra contributes around 14% to India’s GDP but even when MVA ruled for 2.5 years Modi-nomics ensured high buoyancy on Indian bourses despite stalling of bullet train project, Rs 14,000 crore cost escalation of Metro project.” The market punter, however, cites India’s financial capital Mumbai in Maharashtra that ensures most Indian business gravitates around the state while explaining the gloomy market mood over MVA’s likely win. November 23 will reveal the truth when the political bets are finally called out.
In a massive setback to AAP, Delhi’s transport minister and Jat leader Kailash Gahlot resigned from the party, citing “grave challenges” and “awkward” controversies in a letter to AAP convener Arvind Kejriwal months ahead of Delhi Assembly polls. He has joined the BJP. Gahlot’s exit is well timed in the sense that it comes days before Maharashtra goes to polls. AAP, an INDIA Bloc partner that has no stake in the state polls. But it must be said Gahlot’s exit was something that was in the works for some time now. It is believed that the seeds of discord between Gahlot and the AAP leadership were sown on August 15 over unfurling the national flag during the Delhi Govt’s I-Day celebrations. Delhi CM Arvind Kejriwal, who was in jail on charges linked to the alleged liquor policy scam, had wanted Education Minister Atishi to unfurl the flag. Delhi Lieutenant Governor VK Saxena however felt Gahlot was more suitable for the job as he held the Home Department. Meanwhile, Kejriwal indicated that Gahlot had quit as he was under pressure from the ED and IT. In his resignation letter, Gahlot pointed to how “Political ambitions have overtaken our commitment towards people, leaving many promises unfulfilled”. In an apparent swipe at Kejriwal, he referred to “many embarrassing and awkward controversies like the “Sheeshmahal” — a term used by the BJP to refer to the CM’s residence renovated during Kejriwal’s term costing the exchequer Rs 45 crore.
A major controversy has erupted in Tollywood as over 233 directors from films, TV and independent media have filed a defamation suit against Swarup Biswas, president of the Federation of Cine Technicians and Workers of Eastern India. The Rs 23-crore lawsuit follows Biswas’s contentious remarks alleging rampant sexual harassment in the film industry, with 60% of complaints purportedly against directors and producer-directors. The hearing will take place on January 10. Swarup, the younger brother of Aroop Biswas, Bengal’s Power and Housing Minister and a close aide of chief minister Mamata Banerjee, finds himself at the centre of an unprecedented protest by Tollywood’s creative community. This is, perhaps, the first time that Tollywood has publicly challenged the Federation. Directors and producers have also criticized what they call “red-tapism” and “arbitrary demands” imposed by the Federation, including its control over unit sizes, pay scales, working hours, and technician selection. At the Eastern India Motion Picture Association’s (EIMPA) recent AGM, Swarup Biswas proposed that producers deposit Rs 5 lakh each as security to ensure timely technician payments, citing Rs 50 lakh in pending dues. Producers have outright rejected the demand, questioning the Federation’s accountability and EIMPA’s silence on the matter. Veteran actor-director Aparna Sen has publicly questioned Swarup Biswas’s credentials, asking for proof of his contributions to the industry. Biswas holds an assistant director’s card, which is reportedly issued only to those involved in at least two films. Actor-politician Roopa Ganguly also criticized the Federation, accusing it of politicizing the industry and questioning why filmmakers often seek the CM’s intervention during crises.
If rising onion prices decided the election outcome in many states some decades ago, falling soybean prices could impact the outcome in around 70 assembly constituencies in Maharashtra. Hence, Prime Minister Narendra Modi as well as Congress president Mallikarjun Kharge, representing two ends of the political spectrum, are found promising farmers of much higher rates, but only after they are elected on 20 November. The sensitive constituencies are spread in Marathwada and Vidarbha regions, where cotton and soybean are the main cash crops. The current market rate of Rs 4000 per quintal is unacceptable to the growers though they have no choice but to sell the produce as it can’t be stored for long. The MSP is Rs 4800 but not enough stocks are lifted by the machinery. The ruling saffron alliance has been promising better tariffs. The government hiked the soybean import duty in a bid to jack up the prices but the hike was of only around Rs 400, still leaving a gap of the same amount. Sensing the distress and the government’s inability to make any major announcement, Congress leader Rahul Gandhi has promised Rs 6000 per quintal of the legume. To go a step further, Congress president Mallikarjun Kharge has pledged to pay Rs 7000. Shiv Sena leader Uddhav Thackeray has also joined the chorus. The two regions had by and large supported the opposition Maha Vikas Aghadi during the Lok Sabha election. Hence, Mahayuti leaders are wary of saying anything that can dampen their prospects.
Are the re-runs slowly becoming a revenue model both for producers and exhibitors who have been grappling to bring back the audiences to cinema halls? Diwali turned out to be decent but then again we are gone back to re-release of films. Shah Rukh Khan’s Veer Zara re-release has been appreciated. Rakesh Roshan plans a re-release of Karan Arjun with a huge number of screens after 30 years of its release. This again has Shah Rukh Khan and Salman Khan coming together for the first time on screen. SRK’s Kal Ho Naa Ho and Pardes too are re-releasing in cinemas. Those in the trade feel that re-release of Tumbbad, Rehna Hai Tere Dil Mein and Laila Majnu have given courage to producers to cash on re-runs. The re-runs have stirred both excitement and curiosity. Traditionally, re-releases were reserved for timeless classics, but now more recent films are being revived, prompting questions: Is this trend purely nostalgic, or is there a deeper strategy at play? According to Trade Analyst Saurabh Varma, the re-release phenomenon is benefiting the cinema industry in multiple ways. For producers, re-releasing films is a cost-effective option. The marketing and distribution expenses are far lower than for new releases. Re-releases tap into the large fan bases of iconic films, giving long-time fans a chance to relive their favourite stories on the big screen. Furthermore, these revivals provide a unique opportunity for younger viewers who may have missed these films during their initial release. The combination of nostalgia and iconic music resonates deeply with audiences.
It’s a drivetrain solution provider for windmills and industry applications. Every one out of three drive train products installed across the globe bears the brand name of this one. Truly, this German major has traversed quite a long way and undergone a major metamorphosis in the process. One-and-a-quarter-century-old Bocholt-headquartered Flender has significant presence in India. Not surprisingly, the top management team of Flender was in Chennai a few days ago. The presence of the top honchos was more to reiterate the commitment of Flender to India. After all, it has been in India since 1961. It now has three production sites — one each at Kharagpur (WB), Chennai (TN) and Walajabad (TN). Around 10% of its nearly 9,000 skilled personnel across the globe are housed in India. And, it has been putting more money into this country since 2020. Why not? For one, India is the right choice for all those who are looking for the China Plus One option in the post-Covid era. For another, the focus world-over is now increasingly on sustainable development. The robust ecosystem — the presence of assorted turbine makers and a well-evolved supply chain — according to its India CEO Vinod Shetty, is ideal suited for Flender to aspire for a bigger role in driving energy transition in the country. Indeed, Flender is quietly expanding its India operations for a bigger role in its global game plan.
Tamil film producers and their financial backers are now rethinking this model — big money, big stars, big projects but no guarantee that it will reap profits. So the new strategy…safe and secure than spend thrift and sorry. Can small budget films do big business? A resounding yes to three of 2024s baby budget films that warmed the cockles of producers’ hearts. Three films of this year, Lover, Lubber Pandhu and Vaazhai have pulled in amazing profits and massive margins. Lover’s budget was a mere Rs 5 crore, and plus other expenses added the total cost to Rs 6 crore. Hold your breath! It made a profit of Rs 13 crore. But Lubber Pandhu (Rubber Ball), a title that would have gone unnoticed, made the biggest rake in for Prince Pictures who earned Rs 35 crore in TN gross alone — 300% profit. Vaazhai was no sneeze over either…it brought Rs 12 crore profits in TN. Film making costs and exhibition/promo expenses can zoom up dangerously, and after paying the incredible star salaries, if the film’s overflow is modest, stakeholders have no insurance cover to fall back on. Small is big is fast becoming the new open sesame for Kollywood to stay safe.
Veteran leader Sharad Pawar finds commonality between Vote Jihad and a particular section of the people voting for the BJP. Explaining his stand, the NCP founder said it was seen in Pune that the BJP was consistently supported by a certain segment (read Brahmin) in some areas. We expect this to happen though don’t call it Vote Jihad, he remarked. According to Pawar, if such voting patterns happen, it is the right of every community to vote as per its choice. He again charged that deputy chief minister Devendra Fadnavis had raised the issue of Vote Jihad. Pawar’s jab was directed at those specific areas of Pune where Brahmin population is dominant and mostly BJP candidates are elected from such localities. Time and again, Pawar has been accused of creating the bogey of caste with an eye on electoral gains by engineering a rift between sections of the electorate. In support of his contention, Pawar said slogans like ‘batenge toh katenge also fall in the same category as they have a communal shade. He alleged that the issue has been cropped up by the ruling dispensation as it is desperate at the bleak prospect in the assembly election, after the Lok Sabha rout. Fadanvis had condemned the Vote Jihad philosophy after cleric Sajjan Nomani released a list of the Maha Vikas Aghadi candidates and asked the Muslims to vote for them.
The Navi Mumbai-registered ideaForge Technology Ltd (iFTL) is coming out with its maiden public issue valued at Rs 567 crore. The IPO consists of a fresh issue of Rs 240 crore from the company and an offer for sale of Rs 327 crore by one promoter, five individual shareholders and eight corporate shareholders of the company. The price band is Rs 638-672 for Rs 10 paid-up share. The 2007-registered iFTL was a loss-making company until fiscal 2021. The company could wipe out its accumulated deficit only in fiscal 2022. The company claims to be the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems market, with a market share of approximately 50% in fiscal 2022. It has one of the industry’s leading product portfolios targeted at civil and defence applications. It has a broad range of products with feature-based differentiation. Sixteen year-old company was not eligible for making an IPO on its own financial performance and has adopted a `technical route’ to float its maiden public issue. If the company’s prospects are promising, why are so many big shareholders offloading their stake and making their cost of residual holding negative? Unstable past performance, unassuming promoter stake and absurd issue pricing make the IPO a risky proposition. For detailed story click https://investlive.net/
The Agra-registered HMA Agro Industries Ltd (HAIL) is coming out with its maiden public issue valued Rs 480 crore (82.05 lakh equity shares at the cap price). The offer is being made through the book-building route with a price band of Rs 555-585 for Rs 10 paid-up share. HAIL, promoted by five brothers, have been in the meat business for more than four decades. HAIL is the flagship company of the group and is a three star export house. HAIL is currently among the largest exporters of frozen buffalo meat products from India and it accounts for more than 10% of India’s total export of frozen buffalo meat. A disturbing aspect of the promoters is they have disassociated themselves from as many as eight companies during the last three years preceding the date of the Red Herring Prospectus. It is family-run business with brothers and children occupying key positions. Promoters hold 100 per cent stake. When compared to the other frozen food players, HAIL’s Return on Net Worth and Return on Capital Employed is quite impressive. In terms of price discounting too, HAIL compares reasonably well with frozen food heavyweights like Venky’s. Nevertheless, a disturbing aspect of HAIL is, the promoters and their relatives would be holding more than 83% of the post-IPO capital of Rs 50 crore at a negative cost which makes the stock vulnerable post lock-in period. By arrangement with https://investlive.net/.
FSN E-Commerce Ventures, popularly known by its listed name Nykaa, promoted by the high profile banker couple Falguni and Sanjay Nayar tapped the capital market in October 2021 with a public issue of Rs 5,352 cr. More than 475 lakh shares of Re 1 each were offered at an exorbitant price of Rs 1125 per share. The company which moved into black on the eve of IPO, saw its issue subscribed more than 45 times! Retail investors’ portion attracted around 11 times subscription, HNIs 111 times and QIBs 92 times. Thus, the Rs 5,352 cr issue attracted bidding for a whopping amount of Rs 244,495 cr!. Effectively, Nykaa, a decade old and yet to earn profits, asked for a market cap of Rs 53, 200 cr while highly rated MNCs like P&G and Colgate commanded a lesser market cap of about Rs 47,000 cr and Rs 42,500 cr respectively. The public float was a grand success. However, the gullible public did not realize that shares allotted to Anchor investors were locked-in only for 30 days. Nykaa listed on November 10, 2021 at a premium of 78% over the offer price and scaled Rs 2248 yielding 99.8% return. At the end of the one year lock-in period, the stock price went below the IPO rate inflicting 13% capital loss on the IPO investors. Sensing deep trouble, the management quickly declared a bumper 5 for 1 bonus issue which could temporarily arrest the price slide. Even though the top line is attractively growing, the company’s current bottom line (annualized) gives an abysmal EPS of 9 paise on Re 1 paid-up share. By arrangement with https://investlive.net.
Generally Rs 10 paid-up stock that carries a dividend of 1725% (Rs 172.50 per share) would have commanded a price of not less than Rs 2000. Taparia Tools, which earned more than Rs 200 per share from its operations and distributed Rs 172.50 as dividend for fiscal 2022, was quoted on March 20, 2023 at just Rs 10.50. At this price the dividend yield works out to 1643%! The company has now proposed a first interim dividend of 775% as against 700% first interim last year which indicates that in all probability current year’s yield may shoot up beyond 1700%! The Nasik-based Taparia Tools Ltd has been manufacturing hand tools in technical collaboration with a Swedish company since 1969. Its financials have been very impressive with topline growing from Rs 475 cr in FY20 to Rs 670 cr in FY22. In FY23 it is expected to touch Rs 750 cr. Likewise net profit more than doubled from Rs 30 cr to Rs 65 cr during the same period and expected to exceed Rs 75 cr in FY23. Why is the stock quoting so low? It has a small equity base of Rs 3.04 cr with promoters holding 69.73%, directors & relatives 13.72%, two corporate bodies 10.56% and 229 shareholders 3.84%. In the last 21 years, TTL was traded only on 39 days. In the first three months of 2023, the stock has been traded for 5 days. By arrangement with https://investlive.net/.
There is nothing wrong with newcomers and start-ups tapping the capital market. Take the case of the Davangere-based Udayshivakumar Infra Ltd which has filed a Red Herring Prospectus. It has evolved from a proprietorship firm in August 2002 to a public limited company in September 2022. But, according to the official website of the company (www.uskinfra.com), Udayshivakumar Infra Ltd was incorporated in the year 1995! The prospectus says Udayshivakumar was appointed as the MD of the company for a period of five years with effect from January 1, 2020 but did not draw any remuneration for the fiscals 2021 and 2022. Pursuant to a resolution passed by the board of directors and approved by the shareholders at the AGM held on September 19, 2022, the new terms of remuneration for the MD would certainly raise many eyebrows. The company, whose average annual employee cost was around Rs 3.5 cr during the last three fiscals, has proposed a basic salary of up to Rs 50 lakh per month (Rs 6 cr per annum) with an annual increment of Rs 10 lakh for its promoter-MD besides other perks. But, what’s more baffling is that his 24-year-old daughter Manjushree with experience of just two years as manager with the company, has been promoted as executive director and offered the same level of remuneration as her 53-year old father. Clearly it raises the question of corporate governance. By arrangement with https://investlive.net/.
The Vadodara-based Styrenix Performance Materials Ltd is a strange company in many ways. In the last three decades, the company has changed its name as many as seven times. Its original promoter sold the company on the eve of its Silver Jubilee and bought it back on the eve of its Golden Jubilee. Surprisingly, MNC INEOS Styrolution sold its stake to the Indian promoter at a time when the company had achieved its best performance. What’s more, the MNC sold its stake at less than one-third of the peak price. Just before the MNC sold its stake, the company, for the first time, came out with bumper special and interim dividends aggregating to Rs 297 per share which benefited the MNC to the tune of Rs 253 cr. The acquirer, whose net worth was less than Rs 60 cr, committed to buy the MNC’s stake for a consideration of more than Rs 600 cr. The transaction between the MNC and the Indian promoter triggered a mandatory tender offer to the non-promoter shareholders. The quarterly disclosure filed by Styrenix on January 18, 2023 presented SPML’s holding of 62.73% as promoter’s stake. But on February 9, 2023, the company made a revised filing which lists SPML’s stake under the `Public’ category! How has the promoter become a `public’ investor? The company is yet to reply to the e-mail sent in this regard. By arrangement with https://investlive.net/.
From a peak of Rs 24.33 tn (Rs 2,433,000 cr) last year Adani group’s market capitalization has already nose-dived more than 70% to Rs 7.16 tn (Rs 716,000 cr). Is this the end of the slide, or is it going to fall further? A close study of the Adani group stocks reveals that, in the first decade during which the group had just one listed company, Adani’s P/E multiples were in single digit which was far below the market average. In the second decade, when the group started unlocking the value of its closely-held companies, the discounting vastly improved. In the third decade, when the count of the group’s listed entities increased from 3 to 10, the P/E multiples shot up to three digits which were many times more than the market average. The current slide has corrected the group’s P/E from 147X to 43X. However, this is still far higher than the current market composite P/E of 25X. At the current market composite P/E, the Adani group’s market cap should be about Rs 4.2 tn (Rs 420,000 cr). In other words, the group’s market cap may possibly contract another 40% (about Rs 300,000 cr) under the present circumstances. By arrangement with https://investlive.net/.
Is having a famous surname boon or bane? Ask the Hyderabad-registered Electronics Mart India Ltd (EMIL), a leading consumer durables and electronics retailer. It is facing a court battle on this front. It was originally set up as a proprietorship firm under the banner of Bajaj Electronics in 1980 over the years it became a public limited company with the present name but sells goods under the brand name Bajaj Electronics. But they are not connected with the famous Bajaj conglomerate. Bajaj Electricals Ltd (BEL) have filed a suit against EMIL, its promoters and Astha Bajaj, director of EMIL, alleging infringement of the trademark “BAJAJ ELECTRICALS”. In the suit, BEL has prayed for a perpetual order to restrain EMIL, its directors, subsidiaries and other associated persons or entities from infringing and passing off its said registered trademarks by manufacturing, marketing, selling and/or dealing in any products bearing the said trademark or using any name/mark containing the word “BAJAJ” for any goods/products or service/ business activity including on any e-commerce/online platform, except for using the trade mark/trading name “BAJAJ ELECTRONICS” for the electronic retail business/retail stores in the State of Andhra Pradesh and Telangana, alone. The suit and interim application are currently pending before the Bombay High Court. If the legal proceedings are not decided in EMIL’s favour, then it may not be able to use the trademark “BAJAJ ELECTRONICS” outside the states of Andhra Pradesh & Telangana. By arrangement with https://investlive.net/
A seven-year-old company whose revenue is only Rs 10 crore and bottom line is just Rs 54 lakh against a capital base of more than Rs 18 crore is asking for an IPO premium of Rs 60 crore! Still worse, market regulators, despite the group’s murky past, has allowed the promoter to sell at Rs 103 a share which was acquired by him at just Rs 10 in 2021. Pune-registered but Ahmedabad-headquartered Pace E-Commerce Ventures Ltd is entering the capital market with an initial public offer of Rs 66.53 crore. Incorporated in 2015, Pace E-Commerce Ventures offers children’s furniture, bedding, housewares and essentials. It may be recalled that between 1989 and 1993, Gandhi brothers Navinchandra, Dharnendra and Bhupendra floated public issues under the banners Dharnendra Ice-cream, Fly Up Fashions and Dharnendra Agro Food. Few years after their public issues, not only they performed miserably on the operation front but also failed to comply with the listing guidelines which resulted in compulsory delisting of the shares by the stock exchange. In fact, Group flagship Dharnendra Ice-cream was suspended by BSE for 13 years and was eventually delisted by the exchange in 2016. But, that has not stopped the generation-next of the Gandhis from tapping the capital market. By arrangement with https://investlive.net/
Markets regulator SEBI has kept in abeyance the “issuance of observations” with regard to the IPO of Go Digit General Insurance Ltd which had filed draft papers for the IPO on August 17. Go Digit’s proposed IPO consists of a fresh issue of Rs 1,250 crore from the company and an offer for sale of 109,445,561 shares from four shareholders, including the promoter. Though promoted by Kamesh Goyal, former CEO of Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance Company, Go Digit, which counts cricketer Virat Kohli and his wife, Bollywood actor Anushka Sharma among its investors, is largely controlled by the Fairfax Group owned by Canadian person of Indian origin, Prem Watsa, who was awarded the fourth highest civilian award of India, Padma Shri, in 2020. SEBI has not disclosed the reason for withholding the issuance of observations on Go Digit IPO. However, a close scrutiny of the IPO draft papers reveals that the company is yet to obtain IRDAI’s clearance on certain matter related to the promoter-company. Currently, almost the entire promoter holding (83.65%) of the issuer company is held by Go Digit Infoworks Services Private Ltd (GDISPL). While Kamesh Goyal and his Oben Ventures LLP together hold 54.75% of GDISPL’s tiny equity capital of Rs 1.02 crore, Mauritius-registered FAL Corporation of the Fairfax group has a minority stake of 45.25%. By arrangement with https.//investlive.net/
The draft offer document of Inox Green Energy Services Ltd (IGESL) has a peculiar disclosure. The company has listed five people as Key Managerial Personnel. Of these, two are the whole-time directors namely Manoj Shambhu Dixit and Mukesh Manglik. The other three are `consultants’ hired without remuneration! Strangely, none of the Inox-Jain family members, promoters of the Inox Group, are on the board of IGESL. Promoter-family member Devansh Jain is named as one of the consultants along with Kailash Lal Tarachandani and Jitendra Mohananey. Devansh Jain is a whole-time director of Inox Wind, Kailash Lal Tarachandani is CEO and Jitendra Mohananey is senior vice-president of Inox Wind. The 2012-incorporated IGESL proposes to float an IPO of Rs 740 crore. Though loss-making with an accumulated deficit of Rs 367 crore, the company has managed to raise a huge share premium amount of Rs 920 crore based on which it may even ask the IPO investors to shell out hefty premium. But, is the management capable of rewarding the investing public? The track record of the parent company, Inox Wind would surely advise caution. In the so-called `disclosure era’, the dismal performance of Inox Wind under the same management should have been the main risk factor that the market regulator should have insisted on for the benefit of the prospective investors of Inox Green. By arrangement with https://investlive.net/
This is an unusual story of an Indian promoter selling his company to a MNC and buying back the same company from another MNC. In 1997, on the eve of ABS Industries’ Silver Jubilee, promoter Rakesh Agrawal sold his stake to Bayer AG which rechristened it as Bayer ABS Ltd. Now, in 2022, on the eve of the same company’s Golden Jubilee, Agrawal has bought back the same company now known as INEOS Styrolution India Limited (ISIL), controlled by a MNC — INEOS Styrolution — by paying Rs 645 crore for 61.19% stake. The parent company INEOS Styrolution, a global leader in styrenics, recently announced that it had entered into an agreement for the sale of its entire shareholding in ISIL to Shiva Performance Materials (SPM) – part of the Vadodara-based Shiva Group. Incidentally, the promoter-chairman of Shiva Group is Rakesh Agrawal. But, what’s surprising is MNC selling its stake to the original promoter at less than one-third the peak price? How did MNC agree for a price of Rs 600 for a stock which was quoting above that price for the last 20 months? Since the current market price of the stock is hovering above Rs 900, no retail investor is expected to tender their shares. Hence, the open offer has become meaningless. Clearly, this below-the-market-price transaction has hit the small investor’s hard and the deal warrants market regulators’ attention. By arrangement with https://investlive.net/.
The country’s fastest growing business house of the day, Ahmedabad-based Adani Group, is reportedly entering into the cement business by acquiring two major companies of the Indian cement industry from world’s second largest cement producer, Holcim of Switzerland. The deal is worth more than Rs 50,181 crore. Strangely, none of the India-based Adani Group companies is involved in the acquisition process. Interestingly, the net worth of the so called acquirer of the two large Indian cement conglomerates at the end of fiscal 2022 was less than Rs 20 lakh! To acquire Ambuja Cements Ltd (ACL) and ACC Ltd (ACCL), Adanis have adopted a complex route. The main face of the group, Gautam Adani, does not come into the picture. The takeover process is executed via elder sibling, Vinod Adani, a citizen of Cyprus, a resident of Dubai and Singapore and a director of dozens of companies & trusts spread across many tax havens like Mauritius and British Virgin Islands (BVI). The acquirer of ACL/ACCL is the Mauritius-registered Endeavour Trade and Investment Ltd which is 100% owned by another Mauritius-based company, Xcent Trade and Investment Ltd, which is again 100% owned by Acropolis Trade and Investment Ltd which too is a Mauritius incorporated company. Acropolis Trade is held 100% by Adani Global Investment DMCC, a UAE incorporated company. Adani Global is held 100% by AR Global Holding Ltd, a BVI incorporated company. AR Global is held 100% by another BVI incorporated company Amulya Resources Holding Ltd which is held 100% by Amulya Resources Family Trust, a BVI incorporated trust. By arrangement with https://investlive.net/.
TRENDS & VIEWS
Editor’s Note: Big Punch In Small Pack
It is the Third Anniversary of Short Post and as a news media startup launched during the Covid-19 pandemic it certainly feels better than good to find ourselves where we are today. Here, I must cite the unstinted support of our seasoned contributors, all senior editors in the country, who brought a great degree of maturity and sagacity to the Short Post newsroom. But for them, our tagline “Authentic Gossip”, an Oxymoron, would not have matured viably. Our user numbers may be small but our stories have created the desired impact among people who matter — decision makers and influencers. We offer a big punch in a small pack and Short Post with its 225-word stories has been punching above its weight category. Having posted close to 3,000 stories in the last 36 months, Short Post, I feel, is an idea whose time has come.
And this is vindicated by our two marquee advertisers – IDFC FIRST Bank and ICICI Lombard. Both believed in our story and have supported us from Day one. A big thank you to both.
If you look at the media landscape – print, TV and digital — it is a mixed bag. There are job losses as some outfits have closed down while a lucky few were bailed out by large corporate houses. Yes, there is a lot of action in the digital space. However, the entry of corporate houses has raised the question of independence of news media outfits. Sadly, there are just a handful of independent media outfits in the country that are highly respected for their neutrality. At Short Post, our credo is not to take sides, prejudge issues or be biased but, informing readers of behind-the-scenes happenings. In essence, Short Post strives to be a neutral editorial platform — neither anti-establishment nor pro-establishment.
As I said last year, disruptions in the media world are moving at a fast and furious pace. Technology is playing a very big role in how content is generated and consumed. But, we are neither alarmed nor perturbed as it is all a part of the evolution process. What gives us comfort is that AI is unable to create original gossipy content. And that is the news arena where we have achieved a distinction.