Monday 13 May 2013
Ranbaxy Company to pay $500 million to settle US fraud charges
Ranbaxy Laboratories on Monday agreed to pay $500 million (around Rs 2,743 crore) to resolve fraud allegations made in a whistle-blower's lawsuit and federal criminal charges that the company sold adulterated drugs and lied about it to US regulators. This is the largest false claims case involving a generics drugs manufacturer.
Ranbaxy agreed to pay a criminal fine and forfeiture totalling $150 million and to settle civil claims for $350 million. The generic drugs at issue were manufactured at Ranbaxy's facilities in Paonta Sahib and Dewas, India. They include acne drug Sotret, epilepsy and nerve pain drug gabapentin, and antibiotic ciprofloxacin.
Ranbaxy, in papers filed in Federal court in Baltimore, admitted it had sold batches of drugs that were improperly manufactured, stored and tested. The company also pleaded guilty to making fraudulent statements to the Food and Drug Administration (FDA) about how it tested drugs at two of its Indian plants.
Ranbaxy agreed to pay a criminal fine and forfeiture totalling $150 million and to settle civil claims for $350 million. The generic drugs at issue were manufactured at Ranbaxy's facilities in Paonta Sahib and Dewas, India. They include acne drug Sotret, epilepsy and nerve pain drug gabapentin, and antibiotic ciprofloxacin.
Ranbaxy, in papers filed in Federal court in Baltimore, admitted it had sold batches of drugs that were improperly manufactured, stored and tested. The company also pleaded guilty to making fraudulent statements to the Food and Drug Administration (FDA) about how it tested drugs at two of its Indian plants.
Sebi forces key changes to Justdial IPO
Justdial filed its offer document last year, it intended to sell shares amounting to just 10 per cent of the fully diluted paid-up equity share capital — it was looking for valuations of more than Rs 4,000 crore. According to rule 19 (2) (b) of the Sebi ICDR (Issue of Capital and Disclosure Requirements) Regulations, during an IPO, a company has to allot at least 25 per cent of its shares to the public.
However, there is an exemption. If the post-issue capital of the company, at the issue price, is more than Rs 4,000 crore, the company is allowed to go public with 10 per cent public shareholding. Subsequently, it is given three years to comply with the 25 per cent public shareholding requirement.
According to a source, Sebi wasn’t convinced with the valuation Justdial had sought, a valuation that would have given the company market capitalisation of more than Rs 4,000 crore. To convince Sebi, the bankers had to lower the valuation, which forced it to sell 25 per cent, instead of just 10 per cent, as envisaged earlier.
Though it is beyond Sebi’s mandate to decide IPO pricing, the regulator wanted to ensure the pricing was fair, the source said, adding the company’s promoters were asked to provide a ‘safety net’ feature for retail investors. While it was included in the red herring prospectus, the draft offer document filed by Justdial had no safety net feature.
However, there is an exemption. If the post-issue capital of the company, at the issue price, is more than Rs 4,000 crore, the company is allowed to go public with 10 per cent public shareholding. Subsequently, it is given three years to comply with the 25 per cent public shareholding requirement.
According to a source, Sebi wasn’t convinced with the valuation Justdial had sought, a valuation that would have given the company market capitalisation of more than Rs 4,000 crore. To convince Sebi, the bankers had to lower the valuation, which forced it to sell 25 per cent, instead of just 10 per cent, as envisaged earlier.
Though it is beyond Sebi’s mandate to decide IPO pricing, the regulator wanted to ensure the pricing was fair, the source said, adding the company’s promoters were asked to provide a ‘safety net’ feature for retail investors. While it was included in the red herring prospectus, the draft offer document filed by Justdial had no safety net feature.
Banks might tighten loans to jewellery sector
Senior bankers said the loan-to-value ratio might be made more stringent. For instance, if loan credit was given up to 60 per cent of the value of collateral earlier, now it would be for only 50 per cent.
A Gems and Jewellery Export Promotion Council official said banks had become more careful in issuing fresh standby letters of credit. After a sharp rise in defaults during the global financial crisis of 2008-09, banks had taken a cautious approach to financing units in the sector. Bank loans to the sector grew from Rs 27,477 crore in March 2008 to Rs 67,024 crore at the end of March 2013. Gross non-performing assets rose from Rs 270 crore in March 2008 to Rs 2,750 crore.
Winsome had delayed servicing its maturing letter of credit obligations by about a month, owing to the company’s weakening liquidity position due to a sudden stretch in receivables. Rating agency CRISIL had downgraded the company and some group entities to ‘D’, following the default in repayments. The company is already in talks with lenders to restructure its loans.
Compared to jewellery exporters, diamond exporters could face a bigger hurdle. As they export loose diamonds to traders abroad, these traders remain unidentified. But jewellery exports are mostly sold to retailers, which makes it easier to assure banks.
“We may take a 20 per cent higher margin against the collateral in the case of loans for jewellery exports. Banks have also become very cautious while giving out loans to diamond traders,” said a senior State Bank of India official.
A Gems and Jewellery Export Promotion Council official said banks had become more careful in issuing fresh standby letters of credit. After a sharp rise in defaults during the global financial crisis of 2008-09, banks had taken a cautious approach to financing units in the sector. Bank loans to the sector grew from Rs 27,477 crore in March 2008 to Rs 67,024 crore at the end of March 2013. Gross non-performing assets rose from Rs 270 crore in March 2008 to Rs 2,750 crore.
Winsome had delayed servicing its maturing letter of credit obligations by about a month, owing to the company’s weakening liquidity position due to a sudden stretch in receivables. Rating agency CRISIL had downgraded the company and some group entities to ‘D’, following the default in repayments. The company is already in talks with lenders to restructure its loans.
Compared to jewellery exporters, diamond exporters could face a bigger hurdle. As they export loose diamonds to traders abroad, these traders remain unidentified. But jewellery exports are mostly sold to retailers, which makes it easier to assure banks.
“We may take a 20 per cent higher margin against the collateral in the case of loans for jewellery exports. Banks have also become very cautious while giving out loans to diamond traders,” said a senior State Bank of India official.
Gold sales around Rs 150 cr on Akshaya Tritiya
the jewellers in the state have made a brisk business to the tune of Rs 150 crore on the occasion of Akhsaya Tritiya, trade sources said.
Gold weighing about 500 kg was sold on the auspicious day in the state.
Gold price, at present, is hovering a tad more than Rs 26,000 per 10 gm compared to about Rs 27,900 during the same period last year.
The jewellers have rolled out exciting offers to attract customers.
"In addition to discount on making charges, we are charging Rs 1 for each gram of silver purchased from May 12-15," said N K Das, chief general manager of city-based H M Jewellers.
The overall sales volume has increased by about 20 per cent compared to last year, he added.
Gold weighing about 500 kg was sold on the auspicious day in the state.
Gold price, at present, is hovering a tad more than Rs 26,000 per 10 gm compared to about Rs 27,900 during the same period last year.
The jewellers have rolled out exciting offers to attract customers.
"In addition to discount on making charges, we are charging Rs 1 for each gram of silver purchased from May 12-15," said N K Das, chief general manager of city-based H M Jewellers.
The overall sales volume has increased by about 20 per cent compared to last year, he added.
Tuesday 7 May 2013
Rekha Rakesh Jhunjhunwala buys 25,00,000 shares of SpiceJet
Rekha Rakesh Jhunjhunwala bought 25 Lakh shares of SpiceJet at Rs 38.94 on the BSE.
In the previous trading session, the share closed at Rs 40.50, up Rs 2.45, or 6.44 percent. It has touched an intraday high of Rs 41.80 and an intraday low of Rs 37.20.
The share touched its 52-week high Rs 50.90 and 52-week low Rs 26.90 on 07 December, 2012 and 04 April, 2013, respectively. Currently, it is trading 20.43 percent below its 52-week high and 50.56 percent above its 52-week low. Market capitalisation stands at Rs 2,107.14 crore.
In the previous trading session, the share closed at Rs 40.50, up Rs 2.45, or 6.44 percent. It has touched an intraday high of Rs 41.80 and an intraday low of Rs 37.20.
VPM Electricals buys 10.85 lakh shares of Eon Electric Private ltd
VPM Electricals Private Limited bought 10,85,050 shares of Eon Electric at Rs 24.62 on the BSE.
VPM Industrial Services Corporation LLP sold 10,86,560 shares at Rs 24.62.In the previous trading session, the share closed at Rs 24.60, down Rs 0.45, or 1.80 percent. It has touched an intraday high of Rs 24.70 and an intraday low of Rs 23.10.
The share touched its 52-week high Rs 53.85 and 52-week low Rs 20.30 on 07 May, 2012 and 29 August, 2012, respectively. Currently, it is trading 54.32 percent below its 52-week high and 21.18 percent above its 52-week low. Market capitalisation stands at Rs 39.50 crore.
VPM Industrial Services Corporation LLP sold 10,86,560 shares at Rs 24.62.In the previous trading session, the share closed at Rs 24.60, down Rs 0.45, or 1.80 percent. It has touched an intraday high of Rs 24.70 and an intraday low of Rs 23.10.
The share touched its 52-week high Rs 53.85 and 52-week low Rs 20.30 on 07 May, 2012 and 29 August, 2012, respectively. Currently, it is trading 54.32 percent below its 52-week high and 21.18 percent above its 52-week low. Market capitalisation stands at Rs 39.50 crore.
HDFC Mutual Fund sold 1.10 lakh shares of MM Forgings
HDFC Mutual Fund sold 1,10,000 shares of MM Forgings at Rs 68.25 on the BSE.However, HDFC Mutual Fund A/C HDFC Midcap Opportunities Fund sold 1,70,000 shares at Rs 68.25.
In the previous trading session, the share closed at Rs 68.20, up Rs 1.20, or 1.79 percent. It has touched a 52-week low of Rs 66.50.
In the previous trading session, the share closed at Rs 68.20, up Rs 1.20, or 1.79 percent. It has touched a 52-week low of Rs 66.50.
Godrej Properties to mull rights issue
Godrej Properties shares gained two percent in early trade Tuesday as the board of directors of the company will be considering the issue of equity shares on rights basis on May 9.
The board will also mull and approve the audited financial results for the quarter and year ended March 31, 2013 and recommendation of dividend for the financial year ended March 31, 2013.
The board will also mull and approve the audited financial results for the quarter and year ended March 31, 2013 and recommendation of dividend for the financial year ended March 31, 2013.
Emami rises 3% on strong Q4 earnings, bonus issue
Emami Share Consolidated profit grew by 30 percent year-on-year to Rs 94 crore while sales rose over 13 percent to Rs 451 crore from Rs 398 crore, Y-o-Y.
Revenue growth was tad below street estimates of 19 percent because of 12.3 percent de-growth in international business.
Revenue growth was tad below street estimates of 19 percent because of 12.3 percent de-growth in international business.
BSE and NSE identify scrips for the restricted category
Country's premiere bourses BSE and NSE have identified several scrips to be shifted to the restricted trading category with effect from May 10, as a measure to ensure market safety.
BSE would shift 26 stocks to the trade-to-trade or 'T' group, while NSE would transfer 11 scrips to this category, the exchanges said in separate notifications.
Some of the stocks which would be moved to the 'T' group on both the exchanges are -- Gemini CommunicationBSE 4.85 %, Indiabulls Wholesale ServicesBSE -0.69 %, Ind-SwiftBSE 0.79 % and Kesoram IndustriesBSE 9.96 %.
BSE would shift 26 stocks to the trade-to-trade or 'T' group, while NSE would transfer 11 scrips to this category, the exchanges said in separate notifications.
Some of the stocks which would be moved to the 'T' group on both the exchanges are -- Gemini CommunicationBSE 4.85 %, Indiabulls Wholesale ServicesBSE -0.69 %, Ind-SwiftBSE 0.79 % and Kesoram IndustriesBSE 9.96 %.
Monday 6 May 2013
clean-chit to ICICI Bank, HDFC Bank and Axis Bank_KYC norms
Subbarao, speaking at the customary post-policy media interaction, asserted that while money laundering, which involves use of criminal money, has not been observed in any of the banks, certain "specific transgressions" on the know-your-customer (KYC) front have been discovered.
The RBI said it has not given clean-chit to ICICI Bank, HDFC Bank and Axis Bank, which are accused of money laundering and flouting KYC norms, and stated the probe against the three banks is still on.The inquiry is still in progress," RBI Governor D Subabrao told reporters when asked whether the apex bank had given clean chit to the three banks.
Global markets continue to rally
Positive cues from the US jobs data had a rub-off effect and helped in overcoming uncertainty following downgrade of economic forecasts by the European Union. The European Union had earlier said that it expected the 17-country Eurozone's economy to shrink by 0.4% this year. This is 0.1% higher than its February prediction. The stock markets in Germany and France posted the sharpest gains of 3.9% and 2.7%, respectively. The UK market was up by 1.5%.
The Indian markets closed the week on a positive note with the shares in the FMCG space leading the gains. The Indian stock markets were up by 1.5%. The Brazil market surged by 2.3% backed by rally in the stock of largest airplane manufacturer Embraer. Even the Chinese market was up by 1.3% over the week. The Japanese market was the only loser as strengthening yen dimmed hopes of boosting corporate profits.
All the major global indices, barring the Japanese index, continued to have a positive outing over the week. A strong US jobs report by the Labor Department saw the unemployment rate being revised downwards to 7.5%, the lowest in four years. This helped allay fears of slowdown in the world's largest economy and bolstered the US markets which were up by 1.8%.
The Real Reason U.S Government Is Paying Down the National Debt
After six years of non-stop deficit spending that has added $8.2 trillion to the national debt, the U.S. Treasury has announced that it expects to reduce the country's debt by $35 billion this quarter.Given that national debt growth has rocketed past $16.7 trillion and is on track to exceed $17 trillion at some point in the fall, a $35 billion reduction is laughably tiny. It's just 0.02% of what we as a nation owe.
And in the very same statement, the Treasury admitted that in the following quarter it expects to be back to borrowing as usual - $223 billion worth, more than six times the amount it plans to pay down this quarter.
Stock Market Today Reacts to Gold and China
Dragging stocks down was a report that China's economy grew at 7.7% in Q1, weaker than the 8% growth economists were expecting, and down from Q4's 7.9%. This rattled global markets, as fears spread that there would be continued lower demand for Chinese goods and services.
The Dow Jones Industrial Average dropped 0.61% to 14,773.75. The Standard and Poor's 500 Index slumped 0.75% to 1,576.87. The Nasdaq fell 0.80% to 3,268.45. Oil slipped 3.44% to $88 a barrel.And the biggest loser of the day, gold plunged as much as 6.3%, hitting a low of $1,384.60
Gold futures rise on global cues
The yellow metal for delivery in August traded higher by Rs 139, or 0.51 per cent, to Rs 27,440 per 10 grams in 175 lots.
Analysts said speculators enlarged their positions, driven by firm global trend mainly led to rise in gold prices at futures trade.Gold rose 0.6 per cent to USD 1,479.08 an ounce in Singapore.
Gold prices rose by Rs 142 to Rs 27,104 Rs 27,104 per 10 grams in futures trade today as speculators enlarged their positions.
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