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Sunday, January 17, 2016

J&K Bank gets RBI nod for reduction in authorized capital

Jammu & Kashmir Bank Ltd on Friday said it has received RBI approval for reduction in its authorized capital from Rs 100 crore divided into 100 crore equity shares to Rs 95 crore divided into 95 crore equity shares. In a filing to the Bombay Stock Exchange, the Bank said, “it has received approval from the RBI for reduction in the authorized capital of the Bank from Rs 100 crore divided into 100 crore equity shares of Rs 1 each to Rs 95 crore divided into 95 crore equity shares of Rs 1 each pursuant to Section 12 and 49C of the Banking Regulation Act, 1949.” Meanwhile, shares of the Bank closed at Rs 69.85 apiece, down 5.61 per cent, from previous close on BSE.

Hindustan Unilever Q3 net slips 22.4% at Rs 971.4 cr

Country’s largest consumer goods firm Hindustan Unilever Ltd (HUL) on Friday reported a decline of 22.4 per cent in its standalone net profit at Rs 971.4 crore for the October-December quarter of FY16, as weak demand in rural India continued to hurt sales. The company had posted a net profit of Rs 1,252.17 crore during the third quarter ended December 31, 2015, Hindustan Unilever Ltd said in a filing to the Bombay Stock Exchange on January 15, 2016. The growth in the quarter continued to be impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers, the company said in a statement. HUL's net sales however climbed 3.2 per cent to Rs 7,822.86 crore during the quarter under review as against Rs 7,579.18 crore in the earlier quarter. However, it’s total income grew by 2.9 per cent to Rs 8,120.6 crore in Q3 FY 16 from Rs 7,894.39 crore in Q3 FY15. Commenting on the performance, HUL, Chairman, Harish Manwani said, “We have stepped up investment behind our brands and delivered another quarter of profitable volume led growth, consistent with our strategic intent. In an environment of moderating growth and benign input costs, we remain focused on innovation and market development to drive volumes competitively whilst improving operating margins.” The company’s board has also approved, a Scheme of Arrangement which envisages the transfer of the entire balance of Rs 2187.33 crore standing to the credit of the General Reserve to the profit and loss account. Reacting to the numbers, shares of the company ended Friday’s trade at Rs 804.15 apiece, down 2.7 per cent, from previous close on BSE.

Network 18 Media loss narrows to Rs 2.41 cr in Dec quarter

Reliance Industries owned Network 18 Media & Investments Ltd on Friday has reported that its consolidated net loss contracted to Rs 2.41 crore for the third quarter ended December 31, 2015, mainly on the account of higher income from media operations. “The consolidated net loss of the company stood at Rs 12.15 crore during the same period a year ago,” said Network 18 Media & Investments Ltd in a filing to the Bombay Stock Exchange on January 15, 2016. However, the consolidated total income of the company increased by 9.2 per cent at Rs 915.36 crore during Q3 2015-16, as against Rs 838.47 crore during the same period last year. During the quarter under review, revenue from media operations grew by 7.85 per cent at Rs 895.02 crore while revenue from film production and distribution declined by 11.92 per cent to Rs 10.56 crore. Meanwhile, shares of the company closed at Rs 50 apiece, down 5.30 per cent, from previous close on BSE

Zee Entertainment Q3 net falls 11% to Rs 275 cr

Media firm, Zee Entertainment Ltd has reported a decline of 10.9 per cent in its consolidated net profit at Rs 275 crore for the third quarter ended December 31, 2015. The company has posted consolidated net profit of Rs 308.6 crore in the same quarter a year ago, the company said in a filing to the Bombay Stock Exchange. During the quarter under review, total income of the company increased 12.5 per cent from Rs 1443.9 crore to Rs 1624.06 crore in the Q3 FY 16. Commenting on the performance, Zee Entertainment, Chairman, Subhash Chandra, said, “ZEE saw an impressive performance in the third quarter. We grew ahead of the market through improved performance of our existing channels as well as new channels. Our vision is to provide long-term sustainable growth to our shareholders." Over the outlook, he said, "Our investments continue to provide us with positive results. We will continue to identify and pursue profitable investment opportunities that will enable us to join the ranks of world's leading media companies and become the first Indian media company to do so." In a separate filing, the company informed that its board today approved to dilute its stake in India Webportal Pvt Ltd (IWPL) by inducting a strategic investor. "IWPL shall issue convertible preference shares to the said investor, which may result in potential dilution of company's shareholding in the said subsidiary below 51 percent," the company said. Meanwhile, shares of the company closed trading at Rs 401.80 apiece, down 3.37 per cent from the previous close on BSE.

Second tranche of gold bonds to open on Jan 18: RBI

After a moderate first tranche, the second tranche of sovereign gold bond scheme, aimed at reducing demand for physical gold, will open for five days next week even as the other monetisation scheme netted in 500 kg of idle household and temple gold into government fold. “The second tranche of the government’s gold bond scheme will go on sale between 18-22 January,” the Reserve Bank of India (RBI) said in a statement on its website. The bonds will be denominated in multiples of grams of gold with a basic unit of 1 gram. These bonds will be sold through banks, Stock Holding Corporation of India Ltd (SHCIL) and designated post offices, RBI said. “The investors will be compensated at a fixed rate of 2.75 per cent per annum payable semi-annually on the initial value of investment,” RBI said. The tenor of the bonds is set at eight years, with exit option from 5th year to be exercised on the interest payment dates. The minimum permissible investment would be at 2 grams of gold, while the maximum is capped at 500 grams for each investor, each financial year, RBI said in its statement. The first tranche of the scheme, which was launched in November, had got a subscription for 915.95 kg gold amounting to Rs 246 crore.

Air Works plans to launch IPO to raise Rs 700 cr

India's oldest private sector aircraft maintenance repair and overhaul firm (MRO), Air Works, is planning to launch an initial public offering (IPO) to raise about Rs 700 crore through issue of fresh shares and part stake sale by promoters and existing investors. As per reports, the company plans to use the proceeds for expansion and the IPO is expected in another 12-15 months. Commenting on the issue, an industry Official told the media, “It will be both primary and secondary share sale. The promoters and other investors will sell part of the holding, but will not be exiting the company.” “The draft civil aviation policy with its tax concessions and other reforms is favourable for the MRO sector and existing owners see value in staying invested in the company,” he added. The IPO and offer for sale of existing shares is expected to be on 50:50 basis. As per reports, a few months back the company had denied media reports that promoters and investors were looking for an exit.

Tourists arrivals on E-Tourist Visa spurts 635.8% in Dec 2015

India has registered a 635.8 per cent growth in tourist arrival on E-Tourist visa in December 2015 vis a vis the same period last year and UK leads the E-Visa tally followed by the USA and Russia, the Tourism ministry said. A total of 1,03,617 tourists arrived in India on e-Tourist Visa in December, 2015 as compared to 14,083 during the month of December, 2014 registering a growth of 635.8 per cent. UK continues to occupy top slot followed by USA and Russia Federation. Commencing from 27th November 2014 e-Tourist Visa facility is presently available for citizens of 113 countries arriving at 16 Airports in India. The Tourism ministry has said that This high growth may be attributed to introduction of e-Tourist Visa for 113 countries as against coverage of earlier ETA enabled TVoA scheme for 43 countries. The top ten source countries for availing e-Tourist Visa facilities during December, 2015 are UK (23.81%), USA (19.59%), Russian Fed. (9.33%), Australia (5.44%), Germany (4.86%), France (4.44%), Canada (4.40%), China (3.10%), Republic of Korea (1.83%) and Ukraine (1.67%). e percentage shares of top 10 ports in tourist arrivals on e-Tourist Visa during December, 2015 were New Delhi Airport (36.23%), Mumbai Airport (21.90%), Goa Airport (16.54%), Bengaluru Airport (5.54%), Kochi Airport (4.68%), Chennai Airport (4.21%), Kolkata Airport (2.74%), Hyderabad Airport (2.68%), Trivandrum Airport (2.05%) and Ahmedabad Airport (1.79%).

TCS recognized as leader in Workplace services by Forrester

Tata Consultancy Services, a leading global IT services, consulting and business solutions organization has been recognized as a ‘Leader’ in Workplace Services by Forrester Research, Inc., a leading independent research company, in its three Forrester Wave Q4 2015 reports, covering Global, North American and EMEA Workplace Services. “In the reports, TCS was cited as a leading global application and infrastructure services provider, and was noted for increasing its footprint for all infrastructure services in the North American and EMEA reports,” the company informed in a filing to the Bombay Stock Exchange. Commenting on the issue, TCS Senior Vice President and Global Head, IT Infrastructure Services PR Krishnan said, “The digitization of business and the changing nature of work now demand the reimagination of workplace technologies that live up to the expectation of end users and improve their business productivity.” ”Our Workplace Services offerings address this demand across the globe and TCS continues to invest in digital technologies including IoT and mobility, helping customers seamlessly undergo digital workplace transformation. We are pleased to be recognized as a ‘Leader’ by Forrester in their extensive assessment of the Workplace Services Providers in Global, North American and European markets,” he added. Meanwhile, shares of the company were trading at Rs 2265.05 apiece, down 0.61 per cent from the previous close at 14:05 hours on BSE.

Thomas Cook launches smaller outlets to tap tier-III cities

Travel services provider Thomas Cook India said that it has launched small outlets, Thomas Cook Mini, in a bid to tap tier-III cities in the country. The outlets will provide ease and access to the customers for swift foreign exchange transactions, the company said in a filing to the Bombay Stock Exchange. Thomas Cook India COO Foreign Exchange and Head Visas Mahesh Iyer sai, "With our internal data analysis clearly revealing the untapped yet high potential of tier III markets, a low cost, rapid penetration model was mission critical, and our Thomas Cook Mini fits the bill perfectly." The company plans to harness this model to scale up operations for other ancillary travel related services, he added. In a BSE filing, Thomas Cook India said the technology assisted outlets will be manned by a small team for online connectivity to central systems. Meanwhile, shares of the company were trading at Rs 192 apiece, up 1.83 per cent from the previous close at 11:53 hours on BSE.

Dalmia Bharat signs pact with KKR

Dalmia Bharat Ltd said that it has inked a definitive agreement with KKR, under which DBL will acquire KKR’s stake in Dalmia Cement Bharat Ltd. (DCBL) and concurrently bring in KKR as DBL’s largest institutional shareholder with 8.5 per cent holding. The transaction will simplify DCBL’s shareholder structure with DCBL becoming a 100% subsidiary of DBL, the company said in a filing to the Bombay Stock Exchange. DBL will make a preferential issue of 7.5 million equity shares to KKR at INR 825/share and pay KKR a cash consideration of INR 600 crore (USD 89 million) to acquire KKR’s ~15% stake in DCBL. Commenting on the development, Sanjay Nayar, Chief Executive Officer of KKR India, said “We are proud of our association with Dalmia Bharat and continue to believe in its long-term growth. Dalmia team has executed greenfield projects and integrated its acquisitions successfully. We believe that the Indian macroeconomic growth and infrastructure story is poised for a significant uptick in the coming years and the consolidation in cement industry is likely to happen. Given our confidence in Dalmia’s strategy & execution capabilities and corporate governance, we will continue to back Dalmia Cement’s growth and will leverage KKR’s global platform to support the company’s vision of being a leader in the Cement sector.” The transaction is subject to regulatory approvals and other customary closing conditions. Meanwhile, shares of the company closed trading at Rs 780.70 apiece, down 0.93 per cent from the previous close on BSE.

Max India splits into three listed companies

Multi-business Group Max India Ltd on Friday announced its demerger into three listed companies - Max Financial Services Ltd. (MFS), Max India Ltd. and Max Ventures & Industries Ltd (MVIL). The move has come to provide the company’s investors with specific and undiluted access to its diverse lines of businesses, unlock shareholder value and enable sharper focus on each operating business, Max India Ltd said in a filing to the Bombay Stock Exchange on January 15, 2016. The first holding company, MFS will focus solely on managing the Group’s flagship life insurance business, through its 72 per cent shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance, it added. The company further said that the second holding company, which retains the name Max India Ltd, will manage investments in the high potential Health and Allied businesses - Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses closer attention to fulfill their tremendous potential. Moreover, the third holding company, MVIL will manage the investment in the manufacturing subsidiary, Max Speciality Films. It will also evaluate new ideas in the ‘wider world of business’, including but not limited to sectors such as real estate, education and technology, the company said in a statement. Commenting on the development, Max Group, President, Rahul Khosla said, “The demerger will lead to a more specific value discovery for each vertical. Moreover, it will provide sharper management focus to each underlying business. Due to their inherent features and priorities, each of the three holding companies will be optimally positioned to guide their operating businesses on their respective growth journeys.” Meanwhile, shares of the company closed at Rs 476.15 apiece, down 0.69 per cent, from previous close on BSE.