Mahindra Lifespace Developers after market hours yesterday, 17 November 2015 said it has acquired a land parcel in Palghar district of Maharashtra admeasuring 85,000 square meters for residential development.
Pipavav Defence and Offshore Engineering will be in focus. The Reserve Bank of India yesterday, 17 November 2015 notified that Registered Foreign Portfolios Investors (RFPIs)/Foreign Institutional Investors (FIIs)/Qualified Foreign Investors (QFIs) can now invest up to 12% and Non Resident Indians (NRIs)/ Persons of Indian Origin (PIO) up to 2% of the paid up capital of Pipavav Defence and Offshore Engineering under the Portfolio Investment Scheme (PIS). The Reserve Bank has stated that the company has passed resolutions at its Board of Directors and shareholders' level for allocating the sub limits for the purchase of its equity shares by RFPI/FII/QFIs/NRI/PIOs. The purchases could be made through primary market and stock exchanges.
Indian Overseas Bank (IOB) after market hours yesterday, 17 November 2015 said that credit rating agency Crisil has revised downwards its ratings for lower tier II bonds, upper tier II bonds and Basel II compliant tier I perpetual bond issues of IOB. The revision in the ratings assigned to the bonds is due to continued deterioration in asset quality of IOB in the six months ended 30 September 2015. The ratings continue to factor in the majority Government of India (GOI) shareholding in the bank and that GOI continue to provide support to all the public sector banks, Crisil said.
Shares of Ingersoll-Rand (India) turn ex-dividend today, 18 November 2015, for interim dividend of Rs 3 per share for the year ending 31 March 2016.
Shares of Precision Wires India turn ex-dividend today, 18 November 2015, for interim dividend of Rs 2.50 per share for the year ending 31 March 2016
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Airline stocks will be in focus. The Competition Commission of India (CCI) has imposed penalties upon 3 airlines for concerted action in fixing and revising Fuel Surcharge (FSC) for transporting cargo. The final order was passed by CCI on 17 November 2015 in a matter which was filed by Express Industry Council of India under section 19(1)(a) of the Competition Act, 2002 against Jet Airways (India), InterGlobe Aviation, Spice Jet, Air India and Go Airlines (India) alleging contravention of the provisions of section 3 of the Act which deals with anti-competitive agreements.
The Commission noted that the airlines acted in parallel in collusion in fixing FSC rates. Such conduct was found to have resulted in indirectly determining the rates of air cargo transport and thereby in contravention of the provisions of section 3(1) read with section 3(3)(a) of the Act. Accordingly, penalties of Rs 151.69 crore, Rs 63.74 crore and Rs 42.48 crore were imposed upon Jet Airways (India), InterGlobe Aviation and Spice Jet respectively for the impugned conduct which was found to be in contravention of the provisions of section 3(1) read with section 3(3)(a) of the Act. Besides, cease and desist order was also issued against the Airlines.
No penalty, however, was imposed upon Air India as its conduct was not found to be parallel with other Airlines. Similarly, no penalty was imposed upon Go Airlines (India) as it gave its cargo belly space to third party vendors with no control on any part of commercial/ economic aspects of cargo operations done by vendors including imposition of FSC.
While imposing penalties, the Commission noted that such conduct in the air cargo industry undermines economic development of the country and ultimately acts to the detriment of end-consumers. However, considering the precarious financial position of airlines, the penalty was imposed by the Commission at 1% of their average turnover of the last three financial years.
Gammon India said before market hours that the Board of Directors of the company at its meeting held on 17 November 2015 inter alia, has transacted the business of transfer of the company's Civil EPC undertaking namely, Civil Engineering, Procurement and Construction business carried on by the company in roads, hydro-power, nuclear power, tunnels, bridges, buildings, cooling towers, chimneys and other sectors as a going concern, which shall include all the properties, rights and powers and all debts, liabilities, duties and obligations comprised in/and pertaining to the Civil EPC business (Civil EPC Business) to Gammon Retail Infrastructure, the company's wholly owned subsidiary.
The transfer as approved on 14 August, 2015 will now be carried out through a combination of "Scheme of Arrangement" and "slump sale" subject to lenders and shareholders approval. The board proposed a change in the Appointed Date to 31 December 2015 for the above process or such other date as may be approved by the High Court / CDR Lenders. The carve out of the Civil EPC business with the resultant debt, plant and machinery, properties, employees, projects and all other liabilities is to enable potential equity investors to invest in the Civil EPC business. The board is also evaluating proposals from potential investors for its Civil EPC Business.
The transactions mentioned will be effective upon receipt of approval of the shareholders, Lenders and the High Court of Judicature at Bombay and all necessary approvals.
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