Niskalps market operations burn a hole in Tata Finance pockets
Mumbai-- Niskalp Investments, market operations have cost Tata Finance over Rs 200 crore.
This is four times the figure Tatas reported in the first information report (FIR) with the economic offences wing of the Maharashtra government early this month.
The loss is due to a massive exposure in five stocks whose market value has been eroded substantially over the last few months.
The list of stocks in the Niskalp portfolio includes DSQ Software, Global Telesystems, Vakrangee Softare, Pentamedia Graphics and Cyberspace Infosys.
Tata sources said Y Kale, senior partner of AF Ferguson & Co, which was appointed to conduct a probe into the affair, has submitted its preliminary report and the quantum of loss has been ascertained. The next stage involves the restructuring of Niskalp.
Tata Finance spun off Niskalp in the wake of the controversy that engulfed the non-banking finance company.
Ewart Investments, a Tata Sons outfit, picked up a shade under 50 per cent in Niskalp for Rs 39.85 crore, reducing Tata Finance's stake from 99.4 per cent to little below 50 per cent. A set of Telco dealers hold less than 1 per cent in Niskalp.
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 Taj plans equity issue
MumbaiIndian Hotels Company, which manages the Taj group of Hotels, is considering an equity issue to raise about $75 million (Rs 356.25 crore) from the markets. This will be used to fund the companys overseas acquisitions.
Following this, the current paid-up capital of IHCL is likely to be increased by a maximum of 30 per cent to Rs 58.65 crore from the current equity base of Rs 45.12 crore.
In addition to the equity issue, the company will also consider overseas borrowings to fund the cost of acquisitions. The company could tap both the domestic and the ADR/GDR market.
Tata said IHCL was looking at acquisitions of premium hotel properties in the US and other places abroad. Extension of the Taj group in the overseas market is aimed at enhancing the Taj Groups brand equity in the international market.
To actively look out for properties
Indian Hotels Company Ltd (IHCL) will continue to actively scout for high calibre properties to enhance its spread and breadth and even consider international borrowings, if worthwhile, company chairman Ratan Tata said at the 100th annual general meeting (AGM) of the company on Friday.
An enabling resolution increasing the authorised capital of IHCL to Rs 200 crore from the existing Rs 50 crore was passed unanimously, among others.
Mr Tata said that IHCL has earmarked Rs 66 crore for renovation and capex for the current fiscal. This expenditure earmarked would also cover the construction of the 98-apartment Wellington Mews a luxury serviced apartment in South Mumbai. The construction of Wellington Mews would be spread over a period of 18 months at a project cost of Rs 120 crore and would be ready for operations by 2003, he added.
During the previous year, the company had incurred an expenditure of Rs 34 crore on renovation along with Rs 58.34 crore on voluntary retirement scheme, for which it had raised an amount of Rs 150 crore through secured redeemable non-convertible debentures.
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