Orbit Corporation, the Mumbai based niche luxury realty developer's promoter Pujit Aggarwal has redeemed 23 per cent or 1.22 crore pledged shares from financial institution Edelweiss today. The company notified the same on the Bombay Stock Exchange (BSE).
The promoters Pujit Agarwal and his father Ravi Kiran Aggarwal have pledged 77.22 per cent of their holdings in Orbit as collateral to FI's Edelweiss and Industrial Finance Corporation of India (IFCI) for financing the acquisition of the last palace of Mumbai- the Kilachand House at Napean Sea Road. It had raised a loan of Rs 150 crore for the same.
An analyst tracking the company said, “It has total pledging of 4.06 crore shares between Edelweiss and IFCI, the promoter has pledged around three small chunk of land parcels and released their shares from Edelweiss.”
The company was earlier planning to put the Kilachand property as collateral and release the entire block of pledged shares from both the financial institutions. It has paid Rs 220 crore for acquisition of 50 per cent of the property.
A source close to the development said, “IFCI is not interested in having the Kilachand property as collateral due to the nature of the property as it was entangled in legal battle most of the time and the developer too is not keen to put up anything on that property in next one-two years. Though Edelweiss was ready to accept the deal, IFCI has clearly not given its nod. The promoters will release another substantial chunk soon.”
The promoters earlier had to increase the amount of pledged shares to 77.22 per cent from the 67.67 per cent when initially pledged which meant an additional two million promoter shares were pledged to the FIs. Orbit's share closed today at Rs 44.10 per share, it fell 3.50 per cent at the end of the day on BSE.
The margin of share collateral was thrice that of the loan value, and as its prices collapsed, the developer also faced an increase in interest rate by 100 basis points. Its interest cost for the loan is around 13 per cent.
Thursday, July 21, 2011
Wednesday, July 20, 2011
Billionaire Rakesh Jhunjhunwala and Radhakrishna Damani enter Sterling Holidays
The Chennai based leisure hospitality and vacation ownership company, Sterling Holidays Resorts (India) Ltd, had a dream run in its stock prices in last one month. The shares of the company reached a 52- week high today and closed today at Rs 122.90 per share at the oldest bourse, BSE. The share ran up by Rs 20.45 or 19.96 per cent till the end of the day. Not too long ago, mere twenty days back the share was trading at Rs 55.10 per share. A bulk trading of 8lakh shares were undertaken for Rs 121.86 per share in the noon which is the highest single bulk trade for the company in last 10 months.
The investor duo of billionaire Rakesh Jhunjhunwala and Radhakrishna Damani which bought 11 per cent stake in Delta Corp last year, is set to buy stake in Sterling through preferential allotment , said sources close to the development.
The company had notified on BSE onJuly 15 that it will convene a board meeting on july 20, to consider various options of raising funds including issue of shares and issue of warrants on preferential basis.
Sources add, "The promoters, Rakesh Jhunjhunwala and Radhakrishna Damani will each be alloted shares at a price band of Rs 80-85 per share, which would help raise around Rs 120-140 crore for the company." The company has been looking to raise close to Rs 130-170 crore for its expansion in international destinations like South Asia Pacific region via acquisitions. Sterling is at present headed by Sidhartha Mehta, as non executive chairman of the company, who is also the Chief executive officer of Bay Capital, a private equity firm which already owns 31 per cent stake in the company. Till date Bay Capital has invested $13.8 million.
According to BSE, the promoters of the company, R Subramanian, Sidharth Shankar S and S Dhanalakshmi at present own 14.75 per cent in the company whereas mutual funds at and FII's own 17.46 per cent..
at the end of the day on BSE to close at Rs 122.90 per share.
Sterling has a network of 14 resorts in 12 holiday destinations in India, enabling over 100,000 Vacation Ownership members The company is slated to add six new destinations to its existing list of resorts.
Calls made to Ramesh Ramanathan, managing director of the company and Sidharth Mehta went unanswered. Rakesh Jhunjhunwala could not be reached for comment.
The investor duo of billionaire Rakesh Jhunjhunwala and Radhakrishna Damani which bought 11 per cent stake in Delta Corp last year, is set to buy stake in Sterling through preferential allotment , said sources close to the development.
The company had notified on BSE onJuly 15 that it will convene a board meeting on july 20, to consider various options of raising funds including issue of shares and issue of warrants on preferential basis.
Sources add, "The promoters, Rakesh Jhunjhunwala and Radhakrishna Damani will each be alloted shares at a price band of Rs 80-85 per share, which would help raise around Rs 120-140 crore for the company." The company has been looking to raise close to Rs 130-170 crore for its expansion in international destinations like South Asia Pacific region via acquisitions. Sterling is at present headed by Sidhartha Mehta, as non executive chairman of the company, who is also the Chief executive officer of Bay Capital, a private equity firm which already owns 31 per cent stake in the company. Till date Bay Capital has invested $13.8 million.
According to BSE, the promoters of the company, R Subramanian, Sidharth Shankar S and S Dhanalakshmi at present own 14.75 per cent in the company whereas mutual funds at and FII's own 17.46 per cent..
at the end of the day on BSE to close at Rs 122.90 per share.
Sterling has a network of 14 resorts in 12 holiday destinations in India, enabling over 100,000 Vacation Ownership members The company is slated to add six new destinations to its existing list of resorts.
Calls made to Ramesh Ramanathan, managing director of the company and Sidharth Mehta went unanswered. Rakesh Jhunjhunwala could not be reached for comment.
Tuesday, July 5, 2011
Reliance Cementation puts first step forward, enters into LOI with European companies
Reliance Cementation Private Limited (RCPL), the cement arm of Anil Ambani promoted Anil Dhirubhai Ambani Group (ADA), has put its first step forward to put its cement plant in place.
An official close to the development says, “Reliance Cementation has issued letter of intent (LoI's) for equipments for its Satna I unit in Madhya Pradesh. The LoI has been issued to European engineering majors Polysius, FL Smidth and Loesche.”
The European majors stole the show from Chinese equipment players as the price differential is not more than 5 per cent for European companies and also European insurance agencies charge 5 per cent of the debt raised as fees whereas the nodal insurance agency in China charges 7-8 per cent of debt raised.
RCPL, is at present a wholly owned subsidiary of reliance Infrastructure. The LoI has been signed for the Satna I unit where it has plans to put up a capacity of 5.08 million tonne per annum (mtpa) manufacturing unit. It has planned a clinker capacity of approximately of 3.6 mtpa. The game plan includes an integrated unit at Maihar, a blending unit at Gondavli and a grinding unit at Kundangang in Madhya Pradesh.
The source further says, “ A part of the site has received environmental clearance where work would start first and they have received Terms of Reference (ToR) clearance for the final stage. ToR is the first level of clearance from the environmental ministry before it gives the final nod for the project.”
Since the inception of the company in 2007, it has not yet placed any order for construction of cement units. The company has been focusing on setting up of two 5 million tonne (mt) greenfield plants in Mukutban in Maharashtra and in Maihar in Madhya Pradesh. The company website says that a grinding unit at Butibori, Maharashtra will be the first operational unit from the company's stable with an initial capacity of 0.6 mtpa. According to RCPL, this unit is slated for commissioning in March-April, 2012.
However the source adds, “Though the company has been saying the Butibori capacity will come first they have not placed any order for the same. So it would be difficult to say which one would come first. As of now they have just signed LoI, the final contract would be signed soon for the same.”
The first move from the company has come after joining of Sumit Banerjee, the erstwhile chief executive officer (CEO) of ACC cements. It is also looking at inorganic expansion and is in talks with Andhra Pradesh based Sree JayaJyothi Cements (SJJC). The group had an ambitious plan of setting up manufacturing plant of 50 mtpa capacity by both organic and inorganic route.
An official close to the development says, “Reliance Cementation has issued letter of intent (LoI's) for equipments for its Satna I unit in Madhya Pradesh. The LoI has been issued to European engineering majors Polysius, FL Smidth and Loesche.”
The European majors stole the show from Chinese equipment players as the price differential is not more than 5 per cent for European companies and also European insurance agencies charge 5 per cent of the debt raised as fees whereas the nodal insurance agency in China charges 7-8 per cent of debt raised.
RCPL, is at present a wholly owned subsidiary of reliance Infrastructure. The LoI has been signed for the Satna I unit where it has plans to put up a capacity of 5.08 million tonne per annum (mtpa) manufacturing unit. It has planned a clinker capacity of approximately of 3.6 mtpa. The game plan includes an integrated unit at Maihar, a blending unit at Gondavli and a grinding unit at Kundangang in Madhya Pradesh.
The source further says, “ A part of the site has received environmental clearance where work would start first and they have received Terms of Reference (ToR) clearance for the final stage. ToR is the first level of clearance from the environmental ministry before it gives the final nod for the project.”
Since the inception of the company in 2007, it has not yet placed any order for construction of cement units. The company has been focusing on setting up of two 5 million tonne (mt) greenfield plants in Mukutban in Maharashtra and in Maihar in Madhya Pradesh. The company website says that a grinding unit at Butibori, Maharashtra will be the first operational unit from the company's stable with an initial capacity of 0.6 mtpa. According to RCPL, this unit is slated for commissioning in March-April, 2012.
However the source adds, “Though the company has been saying the Butibori capacity will come first they have not placed any order for the same. So it would be difficult to say which one would come first. As of now they have just signed LoI, the final contract would be signed soon for the same.”
The first move from the company has come after joining of Sumit Banerjee, the erstwhile chief executive officer (CEO) of ACC cements. It is also looking at inorganic expansion and is in talks with Andhra Pradesh based Sree JayaJyothi Cements (SJJC). The group had an ambitious plan of setting up manufacturing plant of 50 mtpa capacity by both organic and inorganic route.
Subscribe to:
Posts (Atom)