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Monday, September 15, 2014

Oswal Chemicals & Fertilizers Limited: Buy
CMP: Rs.35.35

The company is presently known as Oswal Greentech Ltd (NSE Code: BINDALAGRO). At present, the company is operating in the business of Real Estate, Investment activities, Fertilizer and Trading in shares/ commodities/ Goods as separate Business Segments.

The sudden fall in the profitability was due to stoppage of work under the joint development agreement with M/s. Oswal Agro Mills Ltd. for the development of land at Chembur, Mumbai for residential and commercial complexes, as per the order of Hon’ble High Court of Mumbai. 

As the project at Chembur, Mumbai was shelved indefinitely till the decision on the petition of M/s. Oswal Agro Mills Ltd. before the Hon’ble Supreme Court of India is received. The company is informed that the hearing in the case by Hon’ble Supreme Court of India is completed and the judgment is expected soon. The company is seriously considering diversification in the field of power, energy and natural resources and is under discussion with experts of respective fields. The future outlook in the case of Real Estate looks encouraging.

Aruna Oswal of Oswal Chemicals and Fertilizers Ltd last month announced the launch of a health care project for rural women in and around Ludhiana. She said the programme would be conducted by a able team of the Mohan Dai Oswal Cancer Hospital. The family is already running educational institutions to provide education to the underprivileged sections of society. Chief minister Parkash Singh Badal asked Aruna to give a detailed project report so that the state government could join them in this venture. He also requested her to come up with more projects for the state.

Net profit of Oswal Green Tech declined 39.46% to R.10.05 crore in the quarter ended June 2014 as against Rs.16.60 crore during the previous quarter ended June 2013. Sales reported to Rs.0.92 crore in the quarter ended June 2014. There were no Sales reported during the previous quarter ended June 2013.

Oswal Green Tech is holding 14.17% stake in NDTV Ltd (Rs.109.80). The share price of NDTV Ltd hit 20% upper circuits today.  

Oswal Green Tech Ltd, the Delhi-based chemicals and fertilisers company, acquired 14.1% stake in television broadcasting major NDTV Ltd for about Rs.24 crore through open market transactions in 2011. Through bulk deal transactions on the National Stock Exchange, Oswal Green Tech purchased a total of 91,36,894 shares of NDTV at a price of Rs.26.64 a piece, which appreciated by more than 4 (four) times during the last few years. 

Oswal Greentech Limited mainly develops and promotes residential and commercial real estate properties in India. It is also involved in the trading of shares/commodities/goods; and investment activities. The company was formerly known as Oswal Chemicals & Fertilizers Limited and changed its name to Oswal Greentech Limited in November 2011. Oswal Greentech Limited was incorporated in 1981 and is based in New Delhi, India.

Thursday, September 04, 2014

Vijayawada, new Andhra Pradesh capital, set to witness real estate boom
[Editor: The Real estate prices are set to skyrocket around Vijayawada following this announcement by Andhra Pradesh government. PVP Ventures Ltd (Rs.7.70) could see a sudden SPURT in its share price.The company possessed a 70-acre land parcel - popularly known as Binny Mills - in the heart of Chennai (Just 3.5 kms from Chennai central railway station)--this project will be fast tracked. The Company also owns 135 acres of land in Shamshabad, Hyderabad, through its subsidiary and affiliate companies. The company targets to line up projects aggregating to USD One billion (~Rs.6100 Cr) in the ensuing five years across South India. Its strategic partnership with Arihant, Unitech in real estate and urban infrastructure areas gives the necessary cutting-edge advantage. The Company has zero external debt--a big asset in a cash intensive business and cash starved-economy. According to a Tehelka report, Potluri purchased stake in Jagan's businesses and was later awarded land by the Andhra Pradesh government. Potluri, reportedly, bought 13,88,888 Jagati shares held through PVP Business Ventures Pvt. Ltd and was allotted disputed land in Nadergul, Ranga Reddy district. Potluri Vara Prasad, the CMD, hails from Vijayawada, Andhra Pradesh and is the co-founder of the Engineering school, Prasad V. Potluri Siddhartha Institute of Technology. He owns, PVP Energy, PVP Cinema and PVP Foundation under PVP Ventures
Photo: NDTV Ltd
September 4, 2014: Real estate prices are set to skyrocket around Vijayawada following announcement by Chief Minister N Chandrababu Naidu-led Andhra Pradesh government that the new capital would be located "near" the second largest city of the residuary state.

The land prices started shooting up in the region after media reports indicated that the area is "being considered" for locating the new seat of power of Andhra Pradesh which lost Hyderabad to newly-formed Telangana State.

A Siva Reddy, Vijayawada chapter President of Confederation of Real Estate Developer Associations of India, said property prices within 25km radius of the coastal city in Krishna district have doubled during the past few months.

"Ever since the division of State was announced, land prices started shooting up between Vijayawada and Guntur. Prior to the announcement, the prices used to be around Rs 1 crore per acre and now they have gone up to Rs 4 crore. Rates are expected to rise further," Reddy said.

The rush to buy land in and around Vijayawada had gone to such an extent the Government had to intervene and issue orders banning conversion of agriculture land into residential plots in part of Krishna District, said M Ramakrishna, Proprietor of Sri Gayatri Real Estates.

"With today's announcement, the land prices are set to skyrocket as most of the realty sales had been put on hold pending clarity from the Government on capital city. Now that the air has been clear, Vijayawada will witness real estate boom," Ramakrishna said.

Barring some small residential plots, no major land dealings have taken place "officially" for the past few months, he added.

However, the task of acquiring adequate land for building capital may not be easy for the government given the prices prevailing there, a senior official said.

There is no clarity yet on the quantum of government land available in the area and also the amount of real estate that needs to be acquired to build the necessary infrastructure, he added.

Courtesy: The Financial Express
Ashok Leyland Ltd: Sell
Ashok Leyland Ltd (Rs.37.35) has a whopping market cap of Rs.10,643.58 Cr, which is near the total FY14 earnings of Rs.10,009.95 Cr. Besides it is already trading at 2.38 times its book value of Rs.15.69. The dividend yield at the current price is only 1.60%, which is very poor. 

In fact the whole of the auto sector seems to be overvalued, especially the large cap ones (Tata Motor Ltd's P/E is blinding 6,410.63 while the industry P/E is 248.08).......and therefore a DOTCOM-like CRASH can happen at any time. 
Financial Technologies Ltd: What are its Future Short Term Targets?
Some points need to be highlighted here:
(i) According to NDTV Profit, August 27, 2014: 
Jignesh Shah-led FTIL asserted that promoters of MCX-SX did not conceal facts while seeking extension of recognition of the exchange in 2009 from capital market regulator Sebi.
The Bombay High Court did not find anything illegal in the buyback arrangement.
" was expressly held that the said buy back arrangement is not in violation of the Securities Contract Regulation Act (SCRA), 1956, and the Securities Contract (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulation, 2006 (MIMPS)," it said.
This Bombay High Court order was challenged by Sebi in the Supreme Court.
"The Supreme Court passed a consent order. Finally, Sebi granted permission to MCX-SX to undertake the business for all segments in addition to currency derivative segment after being satisfied that MCX-SX has complied with all the legal requirements."
"Thus the matter regarding the alleged violation of SCRA and MIMPS regulations stands adjudicated at the highest judicial level and cannot be re-opened," the statement said.

Regarding alleged irregularities in grant of extension to MCX-SX, FTIL said promoters of the exchange had always believed that the inter-se arrangements amongst the shareholders were legal.
"Further at the time of extension of recognition of MCX-SX in the year 2009, we understand that MCX-SX only sought time from Sebi for reducing the shareholding to comply with applicable Sebi regulations."
"We understand that at that point of time, no statement/representation was made by MCX-SX to Sebi in its application for extension that it was in compliance with all the relevant Sebi regulations. Therefore, the question of concealing certain facts by the promoters of MCX-SX does not arise," FTIL said.
Stating that the application for extension of recognition was made by MCX-SX and not by FTIL or Mr Shah, the company said it was surprising that promoters of MCX-SX and Jignesh Shah are being implicated in the FIR for certain alleged non-disclosures in the application.
(ii) The Bombay High Court recently appointed a three-member committee to audit NSEL and liquidate assets of its defaulting borrowers to facilitate a refund of investors’ money. Authorities claim they have attached properties worth about Rs.5,000 crore of the defaulting borrowers. 

(iii) Justice AM Thipsay of the Bombay High Court, said the transactions in question were being entered through brokers who had knowledge of the commercial market. He said: "Those terming themselves as investors were actually traders". And, so, the judge also questioned whether the Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act was at all valid in this case.

The judge says the fact that transactions in question were not genuine ones of sale or purchase was known to both sides. The so-called investors and their brokers were pursuing high returns without bothering about the legalities of the trades in question. That these trades were fictitious were quite clear to the investors, too, said the judge, and they’d “entered into the transactions purely as financial investments”.
“Going by the broad probabilities of the case, it cannot be accepted that the persons who are now crying foul, were not aware of the fact that their transactions were not genuine. They were looking at these transactions clearly as an investment of their monies yielding safe returns,” the court said.
(iii) Merging NSEL with FTIL, according to the experts would be difficult to undertake, given that FTIL was a publicly-listed company and such a move may be opposed by minority shareholders.

(iv) According to Forbes India, 4 September, 2014:
As in some financial market scams, investors entered into these contracts through registered brokers, lured by expectations of capital growth. 
How much did (Jinesh) Shah know about this and what could he have done? His closest friends and business associates told Forbes India that while he expanded operations to Southeast Asia, the Middle East and Africa, he began losing the plot. Shah had spent years battling with regulator Securities and Exchange Board of India (Sebi) to acquire a stock licence for his newest exchange, MCX-SX. He won that mandate, but probably did not bother to monitor what was unfolding at NSEL. 
The imbroglio also revealed more about Shah’s personality. Some friends and associates, seen as part of Shah’s “inner circle”, revealed that he could have actually walked out of the mess with his head held high. There were at least two possible corporate suitors, who were in talks for a potential bailout of FTIL, if Shah had agreed to move out. But ego and the need for control perhaps prevented him from going ahead with the deal. 
Also, unlike most previous cases, several investors who lost money in the NSEL scam were well-off. As an investment consultant told us he had “no sympathy” for investors who–keen on making quick bucks and higher returns-lost money. They did not do their due diligence. 

Wednesday, September 03, 2014

Shipping ministry in talks with firms to set up fund of up to Rs.15,000 Cr to extend low-cost loans
Bangalore, September 02 2014.: The shipping ministry has initiated discussions with financial institutions such as IFCI and IDBI to establish a fund of as much as Rs.15,000 crore to extend low-cost loans to shipbuilders. The shipbuilding development fund will form a key part of a policy being drafted by the shipping ministry to promote local shipbuilding as announced by finance minister Arun Jaitley in his budget speech on 10 July. 

“We are discussing the finer details of the shipbuilding development fund with IFCI and IDBI,” a shipping ministry spokesman said. Other features of the policy could include granting special economic zone (SEZ) status to shipyards and declaring it as a strategic sector with attendant fiscal incentives. 

“Shipbuilding is a big opportunity today,” Prime Minister Narendra Modi said on 16 August during the foundation stone laying ceremony for a special economic zone (SEZ) and road connectivity project at Jawaharlal Nehru Port Trust located near Mumbai. “India’s contribution to global shipbuilding has been very low. South Korea, a very small country, smaller than the state of Maharashtra today alone has a 40% share of global shipbuilding,” Modi said. 

“We want to encourage shipbuilding.” Elaborating on his theme of “come, make in India”, which he mentioned during his Independence Day speech, Modi said his government will encourage foreign investment in shipbuilding. India, Modi said, has a large army of youngsters which was as long as the country’s vast coastline. “We have young people, skilled manpower who can be easily mobilized. Shipbuilding is also not about technology. 

Turner, fitter, welder also are involved in shipbuilding. The poorest of the poor gets employment,” Modi added. Local shipbuilders have been struggling to get orders for constructing merchant ships after the global recession of 2008. Indian shipyards are outbid by Chinese and Korean shipyards due to cost differentials arising from lack of support for the industry in India, said a spokesperson for the Shipyards Association of India, an industry lobby. 

“On the other hand, foreign shipyards benefit from direct fiscal and non-fiscal support from their respective governments,” he said. Indian shipyards pay an interest of 13-14% on capital expenditure and working capital loans for purchasing raw materials and other inputs as against around 4-6% in countries such as China and South Korea. 

“The differential interest cost imposes a significant cost burden on Indian built ships,” the Shipyards Association spokesman added. China’s EXIM bank gives preferential loans to its domestic shipyards at rates as low as 2.7% which provides a huge cost advantage to Chinese shipyards, especially when a ship is financed at debt-to-equity ratios which are as high as 90:10 and the working capital requirements for building a ship can be as much as 35% of the cost of a ship, on an average, during its construction period, the ministry spokesman said. 

“Korea, China and Japan have pursued a mix of fiscal and non-fiscal incentives for encouraging growth and development of their shipbuilding industry. Shipbuilding is a capital intensive industry with a sell first, build later model where buyers pay a small percentage of the price of the ship upfront. This requires shipbuilders to invest substantial capital in executing orders,” the spokesman said. “Availability of loans at a low cost is a significant support provided by most shipbuilding countries to their yards.”

CourtesyLive Mint

Monday, September 01, 2014

Financial  Technologies Ltd
CMP: Rs.254.80
24 August 2014: Jignesh Shah, founder and promoter of Financial Technologies Group, who was out of action following the Rs 5,500- crore National Spot Exchange scam, has secured bail. 

Shah's high-profile friends may have deserted him, but his core team-his friend and cofounder of Financial Technologies Dewang Neralla, brother Manjay Shah and cousin Paras Ajmera-is said to be conducting business in his absence.

In fact, insiders say it is Ajmera, who is carrying out all crucial behind-the-scene operations. Some in the market believe that Ajmera is a master strategist and close to the broking fraternity. 

Such is Ajmera's hold that he is said to have even controlled the salary of every employee in the company. Last November, Ajmera resigned as a director from the Board of MCX, but sources say he was the architect in signing the deal with Kotak Mahindra Bank for selling Financial Technologies' 15-per cent stake in the Exchange for Rs 459 crore.

Courtesy: Mail Online

The great Indian financial inclusion circus 
To be fair to Narendra Modi, he has resorted to inclusion at gunpoint out of sheer frustration as lazy bankers have been refusing to expand their services writes, Tamal Bandyopadhyay
According to a 2012 working paper of the 
World Bank, only 35% of India’s adult 
population has access to formal banking
AUG 31, 2014: For about a million public sector bank employees, the past fortnight has been extremely hectic. Senior executives could hardly sleep; they were busy video conferencing with colleagues in every state and even district while junior employees were literally on the street, chasing prospective depositors—something never seen in the history of Indian banking. 

They were put on notice on Independence Day, when Prime Minister Narendra Modi announced the Pradhan Mantri Jan Dhan Yojana as a national mission on financial inclusion and fixed 28 August as the launch date. In his address, Modi spoke about the ambitious project to offer banking facilities to all households in India to complement the Bharatiya Janata Party-led National Democratic Alliance government’s development philosophy of Sab Ka Sath Sab Ka Vikas; he followed it up with a personal letter to all senior bankers. 

He wrote, “We need to enrol over seven crore households and open their accounts. This is a national priority and we must rise to meet this challenge. There is an urgency to this exercise as all other development activities are hindered by this single disability.... I will myself recognize the achievements of the best-performing branches.” One cannot find fault with Modi’s earnestness. People in remote villages drink American fizzy drinks like Coke and Pepsi and carry mobile telephones in their pockets but they are pariahs when it comes to banking; India’s banks do not find doing business with them profitable. 

According to a 2012 working paper of the World Bank, only 35% of India’s adult population has access to formal banking. So, what’s the Pradhan Mantri Jan Dhan Yojana all about? It’s aimed at bringing at least 75 million un-banked families into India’s banking system by opening two bank accounts per household in rural and urban pockets. All such accounts are being linked to the RuPay debit card, a domestic card network. Every individual who opens a bank account becomes eligible to receive an accident insurance cover of up to Rs.1 lakh and once the bank account has been active for six months and linked to the account holder’s Aadhaar identity number, he or she would become eligible for an overdraft of up to Rs.5,000. 

Last Thursday, the government rolled out the programme, claiming about 15 million accounts were opened, exceeding the first day’s target of 10 million. An excited Modi shortened the deadline for achieving the target of 75 million new accounts to 26 January from 15 August 2015. He also topped up each account with life insurance cover of Rs.30,000, adding to the Rs.1 lakh accidental insurance benefit. “Never before in economic history were 15 million bank accounts opened on a single day,” Modi said. Many Union ministers and at least 20 chief ministers simultaneously launched the scheme in states. Information and broadcasting minister Prakash Javadekar launched it in Pune, law minister Ravi Shankar Prasad in Chennai, external affairs minister Sushma Swaraj in Bhopal, home minister Rajnath Singh in Lucknow and human resource development minister Smriti Irani in Surat. Nirmala Sitharaman, minister of state for finance, even cancelled a visit to Myanmar to be part of the launch. I happened to be present at minority affairs minister Najma Heptulla’s launch function in Kolkata. 

Forty-odd financially included persons, who opened accounts on that day, walked into a five-star hotel for the first time in their lives and were treated to tea and cookies after Heptulla handed over to them a RuPay debit card and a passbook which says, Mera Khata–Bhagya Vidhaata. It didn’t take much time to find out that for all of them, it was not their first bank account. Clearly, the banks wanted to meet the target at any cost. A retired banker even compared this programme with the late Sanjay Gandhi’s compulsory sterilization programme in 1975. 

At that time, the health department in various states forced many to undergo sterilization more than once to meet their targets. Bankers followed the same path—beg, borrow or steal, get a human being to open a bank account; it doesn’t matter whether the person is already financially included. Should we blame Modi for the great Indian financial inclusion circus? 

To be fair to him, he has resorted to inclusion at gunpoint out of sheer frustration. Lazy bankers have been refusing to expand their services, citing high transaction and technology cost for going rural, while they are sanguine about thousands of crores in loans, given to corporate borrowers, turning bad. For the first time, in January 2006, the Reserve Bank of India had allowed banks to appoint business correspondents and address the so-called last mile problem in providing banking services to the masses, but nothing much has happened except for opening millions of so-called no-frills accounts. 

By December 2013, banking connectivity had been extended to 328,679 villages from 67,694 in March 2010 and 229 million basic accounts have been opened, but how many of them are operational? Financial inclusion is the process of ensuring access to financial services and timely and adequate credit to weaker sections and low income groups at an affordable cost. Merely opening a bank account doesn’t ensure that. 

Unlike Sanjay Gandhi’s sterilization programme or the government’s Pulse Polio immunization initiative, financial inclusion cannot be achieved only by meeting the target numbers. Pushed to the wall, banks will hit the target by doling out passbooks indiscriminately to anybody and everybody, including those who already have bank accounts. 

The government must make the bankers accountable and, at the same time, ensure that financial inclusion is supported by inclusion in infrastructure, education and other socio-economic areas. Finally, we need many more banks. Until now, licences for new domestic banks have been a once-a-decade affair. 

Tamal Bandyopadhyay, consulting editor of Mint, is adviser to Bandhan Financial Services Pvt. Ltd, India’s newest bank in the making. He is also the author of Sahara: The Untold Story and A Bank for the Buck.

Courtesy: Live Mint
Abhishek Bachchan, John Abraham photobomb Sachin Tendulkar’s selfie at ISL launch! 
Please Click on the Photo to Expand
New Delhi, Aug 28, 2014: Master Blaster Sachin Tendulkar’s modest attempts of clicking a selfie were photobombed by Bollywood celebs Abhishek Bachchan and John Abraham in Mumbai on Thursday. The trio also doubles up as team owners in the ambitious Indian Super League (ISL), a franchise-based football league set to start on October 12. The inaugural edition will conclude on December 20.

Modelled around the cash-rich Indian Premier League (IPL), the ISL stipulates two games for each team against every team in home and away format. Depending upon their respective ranks and points, top four teams will qualify for the knock out round, ie the semi finals.

Semi finals will also be played in home and away format, making it a total of four semi-final matches. 

With base price of each team set at Rs 12 crore, the most expensive franchise is the Kolkata team, which was won by a group that had former skipper Sourav Ganguly, alongside businessmen Harshavardhan Neotia, Sanjiv Goenka, Utsav Parekh, and Spanish La Liga side Atlético Madrid, for approximately Rs 18 crores.

Master Blaster Sachin Tendulkar, alongside PVP Ventures, owns Kerala Blasters.

Among B-town celebs, John Abraham, partnering with Shillong Lajong, owns the Guwahati team.

Ranbir Kapoor, alongside Bimal Parekh, won the bidding of the Mumbai team while Salman Khan won the Pune team with the Wadhawan Group. The Delhi team was won by DEN Networks while the Chennai team was won by a consortium headed by Abhishek Bachchan. The Goa team was won by a three-way partnership between Videocon, Dempo, and Salgaocar.

Apart from the 14 Indian players, seven international players and one marquee player each that the teams have contracted, franchises can independently contract up to five more players.

Courtesy: Daily Bhaskar