Tata Teleservices stock rises on fund infusion reports

 
Mumbai-based Tata Teleservices' stock on Thursday rose about 9 per cent amid reports that its parent Tata Group has decided to infuse Rs 4,000 crore into the company.  At 2: 09 pm, the telecom firm's stock was trading at Rs 7.45 , a rise of 8.60 per cent above its previous close.  The Sensex was trading at 158 points lower at 21013 points, the third day of losses after the election result-based 400 points rally on Monday.

NSEL defaults for 17th time; pays Rs 9 cr against Rs 174.72 cr

Crisis-ridden bourse National Spot Exchange Ltd (NSEL) on Tuesday paid about Rs 9 crore against the scheduled payment amount of Rs 174.72 crore, defaulting for the 17th straight time. With Tuesday's pay-out, NSEL has so far settled about Rs 253 crore against about Rs 5,600 crore dues to 13,000 investors. NSEL, which is engulfed in a payment crisis, had previously defaulted for 16 times. On its seventh pay-out date and thirteenth pay-out date, the spot commodity bourse was unable to make any payment. "The total amount being disbursed today is around Rs 9 crore," an NSEL spokesperson said. Topworth Steels and Power has made a payment of about Rs 9 crore to the exchange, while 23 of other investors have defaulted, he added. The bourse has sought commodity market regulator Forward Markets Comission's (FMC) approval for disbursement of Rs 11 crore in the escrow account received from defaulting member Mohan India last week. NSEL had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors. NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling dues to 148 members after it suspended trade on July 31 following a government order. NSEL's decision to suspend trading followed a Consumer Affairs Ministry directive asking the bourse not to launch any new contracts till further order as it found violations of government norms in trading at NSEL. The bourse had earlier said it plans to settle all the dues in 30 weeks time, by paying Rs 174.72 crore for first 20 weeks followed by Rs 86.02 crore in next 10 weeks.

Power Grid FPO price fixed at Rs 90 per share, govt to get Rs 1,600 cr

 
The government on Tuesday fixed the issue price for the sale of Power Grid Corporation shares at Rs 90 apiece, the upper end of the band, which would fetch about Rs 7,000 crore.

The follow-on public offer (FPO) of the state-run transmission utility last week saw bids for 530 crore shares, or 6.74 times the 78.7 crore shares on offer.

Retail investors and eligible employees will get a discount of Rs 4.50 a share on the issue price, Power Grid said in a filing to the BSE. The price band for the FPO was Rs 85-90 apiece.

The Cabinet approved the FPO last month. The offer comprised 13 per cent fresh equity by the company and 4 per cent stake sale by the central government.

The government will get about Rs 1,600 crore from selling 18.51 crore shares, while Power Grid will raise close to Rs 5,400 crore from its offer of 60.18 crore new shares.

After the issue, the government's holding in the company will come down to 57.89 per cent from the present level of 69.42 per cent.

The retail portion of the FPO, which closed on December 6, was subscribed 2.17 times. Qualified institutional buyers bid for 9.09 times the shares reserved for them and non-institutional buyers bid for 9.7 times the shares they were offered.

Power Grid shares closed at Rs 98.90 on the BSE, up 2.86 per cent.

This was Power Grid's second FPO. The company and the government each sold a 10 per cent stake in November 2010 at Rs 90 a share.

The company hit the capital market with an initial public offering in October 2007.

So far in the current financial year, the government has raised over Rs 1,300 crore through the sale of minority stakes in PSUs. It has set a target of Rs 40,000 crore from disinvestment this financial year.

Heineken buys United Breweries shares for Rs 275 crore

 
Dutch beer maker Heineken International BV, on Tuesday picked up more than 35 lakh shares of Vijay Mallya-led United Breweries for an estimated Rs 275 crore.

According to the information available with the bourses, Heineken International acquired a total of 35,58,030 shares, amounting to 1.35 per cent stake, of United Breweries through open market route.

The shares were purchased, from Citicorp Finance (India) Ltd on an average price of Rs 772.9, valuing the transaction at Rs 275 crore.

As of September quarter, Heineken International held 4.27 lakh shares, equivalent to 0.16 per cent holding, in United Breweries, while Heineken UK Ltd, held 84.89 lakh scrips, amounting to 3.21 per cent stake, in the Vijay Mallya-led company.

Heineken and UB Group inked an agreement in 2008 and started selling the imported beer in India a year ago.

Earlier in May, United Breweries had allotted over 84.89 lakh shares, representing 3.21 per cent, to Heineken UK Ltd, a shareholder of Scottish and Newcastle India Pvt Ltd (SNIPL).

The acquisition was pursuant to amalgamation of Scottish & Newcastle India with United Breweries, whereby SNIPL would cease to exist.

United Breweries shares settled at Rs 776.25 apiece on the BSE, up 0.67 per cent from the previous close.

CCI imposes Rs 1,773 crore fine on Coal India

 
The Competition Commission of India (CCI) has imposed a fine of  Rs 1,773 crore ($290 million) on state-run miner Coal India for abusing its dominant position and imposing unfair conditions in fuel supply agreements with customers.

CCI on Tuesday issued a "cease and desist order" to the state miner and directed it to modify clauses in its fuel supply contracts related to sampling and testing transportation charges and compensation on supply of stones.

Officials at Coal India-the world's largest coal miner by output-were not immediately available for comment.

The company, which accounts for 80 per cent of the country's coal output changed its pricing system last year allowing it to charge higher prices from some customers.

However, it still sells domestic coal at discounts of between 45 and 70 per cent to international prices.

The CCI had launched a probe earlier this year after complaints from state utilities Maharashtra State Power Generation Co. and Gujarat State Electricity Corp against the miner and its units.