document.writeln("

National Investors Foundation asks for provision to buy out promoters
Kolkata: The National Investors Foundation (NIF) has urged the Securities and Exchange Board of India (SEBI) to make provision for the buying out of promoters, in case a company opts for delisting.

Through a formal presentation to the market regulator, the investor interest group has also proposed an exit value for promoters, similar to the benchmark that prevails in case of keeping control over the company.

NIF said that the promoters holding should command a 25 per cent premium, known as control premium, over the normal exit value.

"While fixing the exit value (for non-promoter shareholders in case of delisting), the promoters should be willing to sell out his stake, should any proposal to buy out his stake at 25 per premium over an exit price is offered," NIF has suggested.

It felt that the onus of determining the true value of the business should be on the promoters since "most of the valuation methods prevalent now are rather theoretical in nature, and do not reflect the inside information, which only the promoter is privy to."

Knowledge of the exact intrinsic value of the company falls exclusively in the domain of the promoter as insiders, it argued.
Back to News Review index page  

Indiabulls to buy back shares
Mumbai: Indiabulls Financial Services has said that it is planning to buy-back up to 10 per cent of its paid-up capital.

A board meeting will be held on November 3 to pass a resolution approving the buy-back of shares, the company said in a notice to stock exchanges.

In the last one week, the stock has shed 18 per cent in value.
Back to News Review index page  

M&M Financial plans IPO through book-building route
Mumbai: Mahindra & Mahindra Financial Services Ltd (MMFSL) has informed the BSE that it would be coming out with an IPO at a price to be determined through the book-building process. The public offer would be a combination of fresh equity issue and dilution by existing shareholders.

The board decision and disclosure follows M&M's announcement on Wednesday stating the extent of equity dilution it was prepared for in its financial subsidiary. "Subject to the approval of the shareholders, the Board has proposed a fresh issue not exceeding 1.5 crore equity shares, including a green shoe option, through an IPO at a price to be determined under the book building process. The IPO will also inter alia include an offer of sale not exceeding 1 crore equity shares, aggregating 14.25 per cent of the paid up capital of the company by Mahindra & Mahindra Ltd, the promoter and the holding company and other existing shareholders of the Company," MMFSL's notice to BSE said.

The company's authorised share capital is also being raised from Rs125 crore to Rs140 crore.

MMFSL has also declared an interim dividend of 15 per cent on 7,01,56,080 equity shares of Rs10 each aggregating Rs10.52 crore and a dividend of 6.9 per cent on 50,00,000 redeemable preference shares of Rs100 each aggregating Rs3.45 crore.

Further, it was informed that Dr Pawan Goenka, who is President of M&M's Auto Sector, had joined the board as director.
Back to News Review index page