News Roundup: SEBI Bans First Global's Shankar Sharma for One Year

16 February, 2009

Ashok Leyland to Float Finance Subsidiary – Ashok Leyland has progressed towards reviving its plan to have a captive finance arm. It has floated Hinduja Leyland Finance Ltd to provide cost effective financing solutions to truck operators and dealers. The firm expects to finalise the business plans for the new finance company in about three months after getting RBI and other approvals. The finance arm will have a paid up capital of Rs 100 crore and a debt: equity ratio of 1:1. It will take care of 10 to 15% of Ashok Leyland’s vehicle sales. (The Economic Times)

ICICI Venture in Control of Subhiksha Subhiksha promoter and Managing Director (MD) R Subramaniam today stressed that private equity firm ICICI Venture was in complete control of the company under the agreement. Subramaniam’s statement comes close on the heels of reports that ICICI Venture, which owns 23% stake in Subhiksha, has decided to withdraw its two nominee directors, Renuka Ramnathan and Rajeev Bakshi, from the board of the beleaguered retail chain. Subramaniam insisted that he has not received any resignation from the nominee directors of ICICI Venture. The Economic Times Quoted him sating that Even if the two nominee directors decided to resign, effective control of the company would continue to remain with ICICI Venture as complete control of the company was vested with them under the articles of Subhiksha. He even said that the company could hardly take any decision without the consent of ICICI Venture. (Business Standard)

SEBI Bans First Global’s Shankar Sharma for One Year – The Securities and Exchange Board of India (SEBI) has banned Shankar Sharma, vice-chairman and joint managing director, First Global, from dealing in securities for one year for his alleged role in trying to manipulate prices of 10 stocks, including Zee Telefilms, Wipro, Satyam, MTNL, SBI and Infosys Technologies in 2001. The order will come into effect four weeks from now. The SEBI order also said that the show-cause notice issued to Devina Mehra, wife of Mr Sharma and a director of First Global, has been disposed of, without any direction. (The Economic Times)

IBM VP Awtaney Quits, Forms JV with Zamil Group – Ramesh Awtaney, IBM vice-president (strategic outsourcing) for Asia-Pacific has put in his papers. Awtaney has formed a JV with Middle East’s Zamil Group, Zamil New Delhi Infrastructure to build, supply and manage passive infrastructure for telecom companies in India. The Zamil Group will hold 51% in the JV, which has been set up with an authorised capital of Rs 100 crore. Awtaney had sealed IT outsourcing deals worth $8 billion for the IBM, including the $1 billion-plus Bharti deal that became the benchmark for the industry. (The Economic Times)

Posco in Talks for Steel Plant in Maharashtra – Pohang Iron and Steel Company, the world’s fourth largest steel maker, is engaged in negotiations with the Maharashtra government to set up a downstream steel plant in the state. According to reports, the downstream steel plant could either be a galvanising plant, automobile steel plate making plant or some other steel processing centre. (Business Standard)

Reliance Infra to Buy Back Shares Worth Rs 700 Crore – The Anil Ambani promoted Reliance Infrastructure (R-Infra) has announced to buy back shares worth Rs 700 crore, and the offer will remain open until mid-April. Shares will be bought at a maximum price of Rs 700 per share, a premium of 27 per cent to the current market price. Share prices of the company increased 3.51% today to close at Rs 569.30 from Rs 550 at close of trading yesterday.(Business Standard)

No Bidders for Rs 6,200 Crore Mumbai Metro Phase II Work – None of the seven consortiums shortlisted for the Maharashtra government’s flagship project, the Rs 6,200-crore second phase of the Mumbai Metro, participated in the financial bids that closed today. Sources suggest that the government has fixed March 16 as the new date for submission of bids. The government estimated the cost of the 32.7-km elevated line at Rs 7,660 crore, which was considered very low by several bidders. Many bidders estimated the project cost at around Rs 12,000 crore. (Business Standard)

IHC in Talks for Raising Funds for Expansion of Mars Restaurants – India Hospitality Corp (IHC), the London Stock Exchange-listed special purpose acquisition company, is planning to expand its Mumbai-based hotel, restaurant and air-catering company, Mars Restaurants Pvt Ltd, to other parts of the country and is in advanced stage of discussion with several institutional investors to raise funds for it. Mars plans to take its hotel brand-The Gordon House-to Bangalore and New Delhi in addition to other metros and mini-metros. The company is in the process of setting up a hotel management company that will pursue third-party management contracts in India. (DNA Money)

Biyani’s Home Solutions Raises Rs 150 Crore through Rights Issue – Kishore Biyani led Home Solutions Retail (India) along with its two investors, ICICI Ventures Funds Management and Kotak SEAF India Fund, has raised Rs 150-crore via a rights issue to fuel its expansion programme. The proceeds would be used to fuel the company’s expansion in the home-building and improvement merchandise, furniture and consumer durables segments. The company plans to set up more stores in home retailing under its existing formats – Home Town, Electronic Bazaar, Furniture Bazaar, Collection I and eZone. (The Economic Times)


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News Roundup: SEBI Bans First Global's Shankar Sharma for One Year

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