The Tribune, Chandigarh, India

	SEBI liberalises takeover norms Raises trigger point for open offer to 25%; new rules expected to revive mergers and acquisitions Mumbai, July 28 The Securities & Exchange Board of India (SEBI) today said an entity buying 25 per cent stake in a listed firm will have to mandatorily make an offer to buy additional 26 per cent from public shareholders. This is seen as an attempt to lure investment after mergers and acquisitions fell 37 per cent. The new norms mark an increase in the open offer size for public shareholders from 20 per cent currently, while the trigger for such offer has also been raised from 15 per cent in the existing regulations. In Japan, the trigger for an open offer is 33.3 per cent, while in Hong Kong it is 30 per cent and in Singapore it is 29.99 per cent. In all three, the trigger requires an acquirer to make an offer for the entire company. The panel, which included Tata Steel Ltd. (TATA) Chief Financial Officer Koushik Chatterjee and YM Deosthalee, CFO Larsen & Toubro Ltd. (L&T), also said that shareholders who already own more than 25 percent can make a voluntary open offer of a minimum size of 10 percent, half the earlier minimum size of 20 percent. The decisions were taken at a SEBI board meeting and were later announced by Chairman UK Sinha. The panel on new takeover regulations had recommended an open offer for buying up to 100 per cent in the target company, while suggesting an increase in the trigger limit to 25 per cent. While the recommendation on trigger has been accepted, the same for the offer size has been kept lower due to intense opposition from industry and market participants. For removal of non-compete fees, which could be as high as 25 per cent of deal value, the logic was given that promoters should not get higher price than that for public shareholders. Commenting on the SEBI decision, consultancy firm Corporate Professionals Managing Director Pavan Kumar Vijay said: “The SEBI Board approved new Takeover Regulations. It's a good move in the direction of simplification of the complicated law." He said the move to raise open offer trigger point from 15 per cent to 25 per cent was a "good move for increasing fund raising options and joint ventures". It has been said that institutional investors were not able to put money in listed companies in excess of 15 per cent in fear of mandatory requirement of additional 20 per cent open offer. Now, the investors can buy up to 25 per cent stake without making an open offer.— Agencies Rs 100 fee on Mutual Fund investments New investors will now have to cough up an additional Rs 150 for investment of Rs 10,000 and above in mutual funds, while the charge will be Rs 100 for existing investors, SEBI has said. Investors are already paying a commission in some cases, besides up to 2.5 per cent of their investment towards expanses of fund management. SEBI said to help mutual funds penetrate into retail segment in smaller towns, the distributor would be allowed to charge Rs 100 as transaction charge per subscription. No charge can be made for investments below Rs 10,000. An additional amount of Rs 50 can be charged to first time MF investor, it said Now shorter and simpler IPO form A new short and simple form for IPO investors for increasing retail participation in the stock markets will be introduced. "The whole form has been changed and this will lead to reduction in the size of the form by about one-fourth," Sebi chairman U K Sinha said here. To implement on report in IPO scam In an unprecedented move of reviving charges dismissed as "null and void" in the past, SEBI today decided to implement a two-member committee's report charging depository NSDL and others of irregularities in the IPO scam of 2003-2006. The regulator would ask NSDL to comply with the findings of the report.
	PNB net up 3.4% to Rs 1,105 crore New Delhi, Jul 28 The country's second largest state-run lender Punjab National Bank today posted a marginal 3.4 per cent rise in net profit to Rs 1,105 crore for the first quarter on account of higher provisioning against bad debts and decline in treasury income. The bank had a net profit of Rs 1,068 crore during the April-June quarter of the previous fiscal. Total income during the first quarter, however, grew by 36.9 per cent at Rs 9,399 crore against Rs 6,863 crore in the same period during 2010-11. The net profit has been impacted due to higher provisioning, decline in treasury income during the quarter, PNB Chairman and Managing Director KR Kamath told reporters here. However, the operating profit of the bank during the quarter rose by 18 per cent to Rs 2,474 crore as compared to Rs 2,098 crore in the same quarter a year ago, he said. During the quarter, the bank made total provision of Rs 1,368 crore. Of this, Rs 566 crore was towards bad debts and Rs 475 crore was towards income tax. At the same time, the net interest income of the bank grew by 20 per cent at Rs 3155 crore during the quarter.— PTI
	Ford to invest Rs 4,000 crore to set up second facility in Gujarat Ahmedabad, July 28 US car-maker Ford today said it will invest Rs 4,000 crore to set up its second manufacturing facility in India with an initial installed capacity of 2.4 lakh units annually. The company, which is present in the country through wholly-owned subsidiary Ford India, will set up the facility in a 460-acre location at Sanand, in Gujarat. The facility will also house an engine plant having an installed capacity of 2.7 lakh units annually. The proposed investment is likely to create 5,000 jobs in the state. "Ford will invest approximately Rs 4,000 crore (approximately USD 1 billion) in the two facilities, which include stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing," Ford India said in a statement. The vehicle assembly unit and the engine plant will have initial production capacities of 2.4 lakh units and 2.7 lakh units, respectively, it added. The company will start construction of both plants later this year and the plant is scheduled to be operationalised in 2014, the statement said. "We are delighted to announce that Ford's newest vehicle manufacturing site will be here in Gujarat. "Ford has very aggressive expansion plans in India and in Asia Pacific and Africa, and these two new plants will be important in realising our growth strategy here in one of the most dynamic regions in the world," Ford President and CEO (Asia Pacific and Africa) Joe Hinrichs said. Ford said it selected Gujarat because of the state's pro-business environment, infrastructure, access to ports in North Western India and skilled workforce. With this announcement, Ford's total investment in India will increase to about $2 billion, the company said.— PTI
	Entertainment and media industry to grow by 13.2%, says PwC Mumbai, July 28 The Indian entertainment and media industry is expected to grow cumulatively at a 13.2 per cent compound annual growth rate (CAGR) over 2011-15 to reach Rs 1,19,900-crore (Rs 1199 billion), a Price Waterhouse Coopers (PwC) report released here today said. The industry is expected to continue its double digit growth trajectory in 2011; and with sustained growth in advertising as well as consumer spend, it is likely to achieve double digit growth in the forecast period of 2011-2015, with TV, print and movies continuing to dominate for the foreseeable future, PwC's latest report 'India Entertainment & Media Outlook 2011', said. The report has also outlined the outlook for major segments of the Indian entertainment and media sector in 2011-2015. The television sector is projected to command half of the entertainment pie by 2015, as it is estimated to grow at a robust 14.5 per cent cumulatively over the next five years, from an estimated Rs 30,650 crore in 2010 to Rs 60,250 crore by 2015, the report said. The movie sector is expected to grow at a CAGR of 9.3 per cent over the next five years, reaching Rs 13,650-crore in 2015 from the present Rs 8750-crore billion in 2010. The report expects the print media to grow by 9.6 per cent over the period 2011-15, reaching Rs 28,200-crore in 2015, from the present Rs 17,870-crore in 2010.— PTI
	Global luxury giant LVMH enters India New Delhi, July 28 L Capital Asia, a private equity fund of global luxury giant LVMH Group, today announced its first investment in India by picking up 25.5 per cent stake in Genesis Luxury Fashion Pvt Ltd for an undisclosed sum. L Capital Asia has already invested and signed agreements with five companies in South East Asia and China. “The investment in Genesis Luxury Fashion is the first investment in India. It will entail initially taking a 25.5 per cent stake in Genesis and forming another JV for new businesses,” it said. The investment shall be done in two tranches, it said without giving the investment figures. L Capital Asia launched a private equity fund of $650 million dedicated to investments focused on markets like China, South East Asia and India. The investment shall be primarily made in consumer brands, lifestyle concepts, lifestyle food and beverages, media, hospitality, beauty and wellness and private education.— PTI
	HUL net up 17% to Rs 627 crore Mumbai, July 28 Boosted by strong sales across segments and lesser spending on advertisements, FMCG giant Hindustan Unilever (HUL) today posted a 17.62 per cent increase in net profit to Rs 627.18 crore for the quarter ended June 30, 2011. The company had posted a net profit of Rs 533.21 crore for the same period last fiscal. In the first quarter this fiscal, the company's net sales jumped by 35.67 per cent to Rs 6,503.89 crore from Rs 4,793.89 crore in the corresponding quarter last fiscal. "This is the fourth consecutive quarter of double-digit growth, led by a combination of innovations, market development and relentless focus on execution," HUL Chairman Harish Manwani said in a statement. ITC Q1 net up 24% Driven by strong growth across segments, diversified business firm ITC today posted 24.51 per cent increase in net profit to Rs 1,332.72 crore for the quarter ended June 30, 2011. The company had registered a net profit of Rs 1,070.31 crore for the quarter ended June 30, 2010, ITC said in a statement. ONGC net up 12% State-owned Oil and Natural Gas Corp (ONGC) today reported a near 12 per cent rise in its net profit for the quarter ended June 30, even after its fuel subsidy payout more than doubled. Net profit in April-June quarter rose 11.9 per cent to Rs 4,095 crore, ONGC Chairman and Managing Director A K Hazarika told reporters here. "Our gross realisation on crude sales was USD 121.29 per barrel in Q1 but after giving subsidy discounts our net realisation was only $48.76 per barrel, almost the same as the net realisation in the same period last fiscal," he said. Welspun Corp's net profit down 27.52 pc Leading steel pipe maker Welspun Corporation today reported a decline of 37.52 per cent in its consolidated net profit at Rs 119.11 crore for the quarter ended June 30, 2011. The company had posted a net profit of Rs 190.64 crore during the corresponding quarter of last fiscal. Sun Pharma net at Rs 501 crore Sun Pharmaceutical Industries Ltd today reported a consolidated net profit of Rs 501 crore for the first quarter ended June 30, 2011. The firm had posted a net profit of Rs 564.32 crore for same quarter last fiscal, but said the figures were not comparable due to the acquisition of Israel's Taro Pharmaceutical Industries, which became its subsidiary in September last year. HCC net down 90% Infrastructure major Hindustan Construction Company (HCC) today reported a 89.86 per cent decline in net profit for the first quarter ended June 30 to Rs 287.17 crore on the back of high interest rates and a general slowdown in the infra sector. The company had posted a net profit of Rs 2,831.40 crore in the corresponding period of last fiscal. Corp Bank net at Rs 351 crore Higher cost of deposits dragged profit growth of state-run lender Corporation Bank, which today posted 5 percent rise in its net profit at Rs 351.45 crore for the first quarter ended June 30.— Agencies
	Fresh trouble at Maruti’s Manesar plant Sunit Dhawan / TNS Manesar/Gurgaon, July 28 Fresh trouble erupted at the Manesar plant of Maruti Suzuki India Ltd (MSIL) as hundreds of workers observed a tool-down strike for two hours. Suspension of four workers after an altercation between workers and a supervisor was said to be the immediate provocation behind the workers’ move. The unrest comes close on the heels of a 13-day-long strike at the plant last month that had resulted in a loss of about Rs 630 crore. A company spokesperson said: "One of the supervisors was assaulted by workers yesterday and when disciplinary action was being taken today by way of suspension, they struck work at the plant. The number of workers on strike are fewer this time.” — With PTI inputs