ALF to mop up Rs 105 cr through preferential issue
Chenni: Chennai-based Ashok Leyland Finance Ltd plans to raise Rs 105 crore through the issue of 2.08 crore cumulative convertible preference shares to the existing shareholders of the company. The board of directors, in their meeting held on Friday, has decided that the shareholders will be issued two CCPS for every three equity shares held. The CCPS will have a face value of Rs 50 and carry an interest rate of 7.5 per cent per annum. The CCPS will be converted into equity shares after a three year period at a premium of Rs 40 (face value Rs 10) or the average of the six month trading price at the exchange, where the stock is frequently traded (with a minimum of Rs 10), whichever is lower. The issue of CCPS will help extend the firms financing capabilities besides boosting capital adequacy, which stands comfortably at 16 per cent (March 2002), as against the RBI stipulated 12 per cent. Currently, the paid-up share capital stands at Rs 31.13 crore and the CCPS will be considered as tier II capital.
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IFC likely to pick IMGC stake
Chennai: The National Housing Bank is likely to get a $6 million (approximately Rs 30 crore) equity investment from the International Finance Corporation, Washington for its India Mortgage Guarantee Company. IMGC is being promoted by NHB in association with four foreign partners as the first mortgage guarantee company for housing finance firms in the country. Though NHB has not yet finalised the initial equity capital base, the paid-up equity of the company is expected to go up to $40 million as per business requirements. IFC has evinced keen interest in investing in the venture and is expected to take a final decision in this regard by early next month, senior NHB officials said. IFC director board would consider the investment in IMGC at its next meeting scheduled to be held on July first week, IFC has notified.
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HDFC targets 30 per cent growth in loan approvals, disbursements
Kolkata: Housing Development Finance Corp Ltd has set a 30 per cent growth target in loan approvals and disbursements during the current financial year 2003-04, HDFC managing director Keki M Mistry said. “During the financial year ended March 31, 2003, HDFC’s total loan approvals stood at Rs 11,732 crore and we hope to achieve a 30 per cent growth during the current fiscal,” he said, while attending a seminar on Real Estate and Housing — New Growth Sectors in Eastern India — organised by the Bengal Chamber of Commerce & Industry here on Friday. During the fiscal 2002-03, HDFC disbursed a total loan of Rs 9,957 crore. “We have set a target to increase this figure by 30 per cent as well during the current financial year,” he said, adding HDFC has securitised Rs 500 crore worth of loan in 2002-03. “We have done this securitisation in six Indian states where the stamp duty on loan securitisation has been reduced,” he said. These six states are West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat and Maharashtra
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HDFC expects to borrow Rs 6,000 cr from markets
Kolkata: Housing Development Finance Corporation expects to borrow over Rs 6,000 crore this year from both domestic and global markets. It is specifically looking at a $200-million package from International Finance Corporation. HDFC, said Keki M. Mistry, corporation's Managing Director, is in negotiations with the Washington-based agency with regard to the loan. This will form a critical part of the company's overall borrowings. The housing finance company also expects to close the year with a 30 per cent growth in loan approvals and disbursals. Last year, its approvals stood at Rs 11,732 crore, and disbursements at Rs 9,957 crore.
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HDFC sells 20 lakh shares of AMC to Standard Life
Mumbai: Housing Development Finance Corporation Ltd has sold 20 lakh equity shares of Rs 10 of its subsidiary, HDFC Asset Management Company Ltd, to Standard Life Investment Ltd for a consideration of Rs 34 crore. In an intimation to the Bombay Stock Exchange, HDFC has said that consequent to this sale, the corporation would hold 50.10 per cent of the total paid-up capital of HDFC AMC and the balance 49.90 per cent would be held by Standard Life Investment Ltd.
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Rs 28-cr loan default to Karur Vysya Bank — Interim injunction passed against Hamsaveni Spinners
Coimbatore: The Debt Recovery Tribunal, Coimbatore, has passed an interim injunction against Hamsaveni Spinners (P) Ltd - a spinning unit - for defaulting their bankers - Karur Vysya Bank to the tune of Rs 28 crore. The order was passed on June 9. The DRT, in its order, identified Shivashanmugham as the Official Receiver to take possession of the property. KVB had extended various credit facilities to this unit, which had filed a reference with the Board for Industrial and Financial Reconstruction under Section 15 (1) of the Sick Industrial Companies (Special Provisions) Act in September 2001.
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Arvind Mills commercial paper gets `P1+' rating
Mumbai: The Rs 20-crore commercial paper programme of Arvind Mills Ltd has been assigned a `P1+' rating by Crisil, which indicates a "very strong" rating for the paper. According to Crisil, the rating is based on the unconditional and irrevocable standby facility provided by State Bank of Saurashtra to the extent of the rated amount. The standby facility will be available for the entire duration of the commercial paper to make timely repayments. The rating on the Rs 25.36-crore non-convertible debenture has been upgraded to BB, indicating "inadequate safety," from D, which falls in the "default" category.
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DRT recovers Rs 53 cr till April
Coimbatore: The year-old debt recovery tribunal) here has recovered Rs 53 crore up to April 2003. Appreciating the efforts taken by the presiding officer of the DRT at the second annual meet of banks and FIs, the Co-ordination Committee for DRT (represented by bankers) noted that the tribunal had performed reasonably well during last year.
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SIDBI seeks Govt nod to buy securitised assets
Mumbai: The Small Industries Development Bank of India is envisaging a new role for itself, as a buyer of securitised assets in an attempt to increase the lending capacity of banks to the small-scale sector. "The board of directors of the development financial institution has approved the idea and we are now writing to the union government for permission to buy securitised assets. We should be starting the process in a month's time once we procure regulatory consent,'' said P. Srinivasa Rao, chief general manager, SIDBI. The SIDBI Act 1989 does not specifically authorise the institution to purchase securitised assets and therefore the Government's approval is necessary. The aim is two-fold for SIDBI, to increase bank credit to SSIs and to grow its own asset book.
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IFC to advance $15 million to Balrampur Chini Mills
New Delhi: The International Finance Corporation will be providing a loan of $15 million (Rs 72 crore) to Balrampur Chini Mills Ltd, one of the leading manufacturers of sugar in the country. According to an IFC release, this loan will partially finance an integrated greenfield sugar mill with a capacity of 4,000 tons of cane a day and an associated 20 megawatt co-generation power plant in Haidergarh in Uttar Pradesh. It will also partly fund a 60 kilolitre a day ethanol distillery with a biomass fertiliser unit at the company’s existing Babhnan plant in UP. The new plant is expected to process sugarcane from about 40,000 farms in the area. Production of ethanol is also expected to reduce the environmental impact of relying on fossil fuel. Ethanol and gasoline will be blended to generate electricity on a sustainable basis through the use of bagasse, a by-product of the milling process.
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