Jagatjit Ind.- Feud Settled??

There is interest building up in this stock due to rumours that the family feud between Anand Jaiswal and Jagatjit Jaiswal is close to being settled. In March 2009, the Company Law Board (CLB) had ruled that there was no merit in challenging the allotment of shares with differential voting rights (DVRs) as it was legally permissible. Anand and Jagatjit had moved the CLB against the company decision in 2004 on preferential allotment of shares with DVRs, giving Karamjit 64% voting rights on his 32% stake in the company. At that time itself, the two brothers had apparently agreed to the CLB-proposed settlement where Karamjit would buy out Anand and Jagatjit's 12% stake in the company for roughly Rs730 million.

However, according to the latest shareholding pattern, 2.15 million shares held by Karamjit Jaiswal are shown under the pledged or otherwise encumbered account and placed in an escrow account. In addition to this, there is also talk of a takeover bid from UB. Jagatjit owns Aristocrat Liquor, Binnie's Malt and dairy products, and also makes glass containers.

Jet, Godrej to ink Mumbai land deal soon

Jet Airways and Godrej  Properties are in the process of signing a deal for developing Jet’s land in the Bandra Kurla Complex area of Mumbai together.  The deal is expected to conclude within two weeks, they said.

Jet Airways  had purchased a 2.5-acre plot from the Mumbai Metropolitan Region Development Authority in March 2008 for Rs 826 crore (Rs 8.26 billion) for developing its global headquarters. However, the airline did not go ahead with the plans and started negotiations to sell off the land.

The initial term sheet agreement between the companies is likely to allow Jet to retain 250,000 square feet as required by the MMRDA and the carrier will pay around Rs 320 crore (Rs 3.2 billion) for the retained portion. Jet Airways and Godrej Properties’ profit sharing ratio is likely to be in the range of 45-50 per cent from the sales of the remaining 1.1 million sq ft.

Godrej Group Chairman Adi Godrej, in a concall, said, “On the Jet Airways deal… it is work in progress, negotiations are going on.

“As and when it is concluded, we will make an announcement. We need to get 10 million square feet in a short number of years in order to execute all our present and future programmes that we will take into account. Hopefully, we can exceed 10 million square feet per year in course of time.”

Thangamayil Jewellery bet overseas market??

Mumbai-based HNIs have been buying shares of Madurai-based jewellery manufacturing and retailing firm Thangamayil Jewellery. The stock has gained almost 50% over the past one month. The buzz is that these buyers are betting on the company’s expansion plans. Brokers tracking the stock say that the company plans to open overseas branches to cater to the needs of ethnic population. This apart, it is also looking at a franchise model in Tamil Nadu. The expansion will be funded by internal accruals. Thangamayil shares closed at Rs 139 on Wednesday, up about 8% from the previous close, supported by heavy volumes. 

HCL Tech tanks 7 per cent on promoters shares sale report

 IT services provider HCL Technologies tanked 7 per cent on BSE in morning trade on Thursday amid a report that one of its promoters is likely to offload nearly 1.5 per cent stake in the open market.

Shares of HCL Technologies plunged 7 per cent to a low of Rs 347 a piece on the Bombay Stock Exchange (BSE). The scrip nosedived to Rs 353, down 5.28 per cent, on the National Stock Exchange.

According to the media report, promoter group firm HCL Corporation is eyeing to sell about 1 crore shares representing 1.5 per cent stake in HCL Tech, for an aggregate amount of Rs 360 crore.

As per the March quarter shareholding pattern available on BSE, HCL Corporation held 50.27 per cent stake in HCL Technologies.

Anil Ambani likely to hive off DTH, IPTV biz into new entity

After placing its film exhibition and processing business Reliance Media Works and FM radio and outdoor advertising business Reliance Media World under separate listed entities, Anil Ambani’s Reliance Anil Dhirubhai Ambani Group (ADAG) may soon hive off its DTH and IPTV under a new entity—Reliance Digital Works (RDW).

Currently, the group operates its DTH business under the brand name Reliance Big TV, which is a subsidiary of Reliance Communications. RDW, that has existed for some time now, is expected to initiate the process of demerger from RComm soon. RDW may also become the group’s launch vehicle in the cable distribution business, industry sources said.

However, it is not clear whether the group’s foray into cable distribution will be a part of RDW or its subsidiary. Reliance ADAG has been looking for a substantial chunk of cable subscribers to foray into the business of cable distribution which is currently pegged at over Rs 3,500 crore.

While both Reliance Media Works and Reliance Media World are listed entities on the Bombay Stock Exchange, the group has been looking for capital infusion in its growing DTH business–Reliance Big TV. “In near future, the company may look at listing RDW as well,” a source said.

According to investment banking executives, RDW may help the ADA Group unlock the right value for its existing direct-to-home (DTH) and IPTV business. “If any entity gets hold of DTH, cable and IPTV business under one roof, the signals points to the direction of attracting investments,” an investment banker said. “Moreover, the DTH business requires big cash even more now as there are six players competing for the business. Unless the companies are clearly demarcated, foreign investors are not interested,” a senior executive a leading brokerage firm said.

While the foreign investment limits for the IPTV sector are kept at 74%, the government is expected to announce an increase in the foreign investment limits for the DTH sector as well–from current 49% to 74%. A similar move may be recommended by the sector regulator for the cable business, Trai insiders said.

“If the norms on foreign investments are at par in DTH, IPTV and the cable business, it will give a big levy to any firm that houses all these services under one company,” a senior executive of an existing cable company…

Hindalco may bid for Rio Tinto Alcan unit

Aditya Birla Group is evaluating the possibility of bidding for the rolled products division of Rio Tinto Alcan to boost sales in the United States and Europe, a financial daily reported today.

North American-based Novelis Inc, a unit of aluminium maker Hindalco Industries that is controlled by the Indian group, could put in a bid, the newspaper said, citing people familiar with the development.

It said the group was looking at various options for the deal including owning less than 100 per cent of the rolled products division of Rio Tinto Alcan, a unit of the global mining giant Rio Tinto.

Novelis is a Canadian corporation formed in January 2005 as a spin-off from Alcan Inc. In 2007, Novelis was acquired by Hindalco Industries. It is the world’s leading aluminium rolled products producer based on shipment volume.

It produces about 19 per cent of the world’s flat-rolled aluminium products and is the number one producer in Europe, South America and Asia, and the second-largest in North America, according to information on Hindalco’s website. Officials at Hindalco and Rio Tinto could not immediately be reached by Reuters for comment.