Videocon`s D2H arm gets Sebi nod for Rs 700 cr IPO

Bharat Business Channel, direct to home TV arm of Videocon Group, has received the go-ahead from market regulator Sebi for its proposed Rs 700 crore initial public offering.
The company had filed its draft red herring prospectus (DRHP) with Sebi (Securities and Exchange Board of India) in December last year for the proposed public offer.

Sebi issued its final observations on the draft offer documents on March 15, as per the latest update by the market regulator. The regulator's observations are necessary for the companies to launch any public offer.

The regulator had received the draft offer documents on December 14 through its lead manager Enam Securities.

The company's proposed Initial Public Offer (IPO) estimates to raise Rs 700 crore. It is also considering to mop-up Rs 50 crore through a pre-IPO placement of its shares to institutional investors.

The proposed IPO would comprise at least 25 per cent of equity capital, giving a valuation of Rs 2,800 crore to Bharat Business Channel.
The company plans to use the funds for "acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes."

Earlier in January, Sebi had sought clarifications from the merchant banker of Bharat Business Channel regarding the proposed IPO.

SAIL OFS to hit market on March 22, stock up

The divestment secretary confirmed on Wednesday about the Empowered Group of Ministers (EGoM) approving SAIL 's divestment programme which will hit the market on March 22.
The government is likely to divest over 10 percent stake of which 5.82 percent will be offloaded via offer-for-sale (OFS) issue on March 22 and the remaining 5% will be divested in FY14, say sources

The EGoM, headed by finance minister P. Chidambaram will decide on the floor price of OFS tomorrow.

The merchant bankers for the issue include SBI Caps, Kotak Mahindra and Deutsche Bank. Post divestment, the government's stake in the company would come down to 75 percent and is likely to fetch it around Rs 3,000 crore.

Of the Rs 24,000 crore divestment target for FY13, the government has already raised over Rs 21,000 crore by offloading stakes in various public sector firms. For the next fiscal, the government is expected to raise over Rs 55,000 crore.

Meanwhile, the company's chairman CS Verma in an interview to CNBC-TV18 said that the company will soon start road shows for the divestment programme, but a decision on pricing is not yet taken.

"In a dynamic market, prices keep changing each day. We will take a call on it during our road show," he added.

Shares of the company are up 0.53 percent to Rs 65.80.

Manappuram Finance crashes 13.5% on Merrill Lynch downgrade

India's largest gold loan financing company Manappuram General Finance (MGFL) crashed 13.5 percent on Wednesday after foreign research house Bank of America Merrill Lynch (BofAML) downgraded the stock.
The stock had fallen 20 percent on Tuesday after the company selectively shared information about large loan losses with some investors before an analyst call.

Later the company issued a statement to stock exchange saying, "We expect an under-recovery of revenue on certain gold loan portfolios due to correction in the gold price. This may result in reduction in profit numbers for the fourth quarter ending March 31, 2013."

On Wednesday BofAML cut MGFL rating by 2 notches to an underperform against buy rating and reduced its price target to Rs 20 from Rs 48. According to the research firm, a 30 percent EPS cut for both FY13/14 is due to higher than estimated under recoveries from auctions in 4Q.

Secondly, BofAML believes their guidance has been inconsistent and the risk to future earnings is high, as company still needs to auction Rs 900-1,000 crore of gold loans in 1QFY14, which can be impacted by gold prices.

BofAML expects MGFL to report a loss in fourth quarter of FY13 against earlier estimate of a profit.

Meanwhile, Religare recommends holding the stock. The broking firm has cut their price target to Rs 30 and has pared down its FY14 earnings estimates by 18 percent.

At 10:18 hours IST, shares plunged 12.27 percent to Rs 24.30 on Bombay Stock Exchange.

In the previous trading session, the share tanked 20 percent to Rs 27.70.

Market Updates 20/03/2013

Fortune Financial Servies has come out with its report on commodities. According to the research firm, MCX Silver May Contract is looking positive for the day. Market may find support near 54400 & 53900; intraday resistance can be seen near 54900 & 55400. Day traders can buy intraday on dips.
Bullion: Gold futures were trading higher on the local bourses as the rupee weakened against the dollar and also rise in benchmark contract. Investors will now turn their focus to the US Federal Open Market Committee's two-day meeting for cues on its asset-purchase programmed.

Energy: Domestic crude oil futures were trading higher due to depreciation in rupee against the dollar and tailing mild upward recovery in benchmark contracts on the New York Mercantile Exchange. The upward recovery in NYMEX crude oil futures, however, was restricted, as market is awaiting release of key weekly US oil inventory report on Wednesday.

Metals: Base metal futures on MCX were trading higher due to the weakness in rupee against the dollar, but a rangebound movement in benchmark contracts on the London Metal Exchange limited the rise. On LME, base metal contracts traded higher earlier in the day on bargain buying and as the initial shock over the Cyprus debt deal eased to some extent.

MCX Gold April Contract is looking positive for the day. Market may find support near 29780 & 29670; intraday resistance can be seen near 29940 & 30040. Day traders are advised to buy intraday on dips. (Buy around 29780 with SL 29670, for the target of 29940 & 30040.)

MCX Silver May Contract is looking positive for the day. Market may find support near 54400 & 53900; intraday resistance can be seen near 54900 & 55400. Day traders are advised to buy intraday on dips. (Buy around 54400 with SL 53900, for the target of 54900 & 55400.)

MCX Natural Gas March contract is looking positive the day. Market may find support near 214 & 211 intraday resistance can be seen near 218 & 221. Day traders are advised to buy intraday on dips. (Buy around 214 with SL 211 for the target of 218 & 221.)

MCX Crude oil April contract is looking positive for the day. Market may find support near 5070 & 5020; intraday resistance can be seen near 5140 & 5210. Day traders are advised to buy intraday on dips. (Buy around 5070 with SL 5020, for the target of 5140 & 5210.)

MCX Copper April contract is looking negative for the day. Market may find support near 410 & 407; intraday resistance can be seen near 415 & 418. Day traders are advised to sell intraday on rise. (Sell around 415 with SL 418, for the target of 410 & 407.)

MCX Lead March contract is looking negative for the day. Market may find support near 116.80, 115.70, intraday resistance can be seen near 118.80 & 119.80 Day traders are advised to sell intraday on rise. (Sell around 118.80 with SL 119.80 for the target of 116.80 & 115.70)

MCX Nickel March contract is looking negative for the day. Market may find support near 896, 888, intraday resistance can be seen near 908 & 918. Day traders are advised to sell intraday on rise. (Sell around 908 with SL 918 for the target of 896 & 888.)

MCX Aluminium March contract is looking negative for the day. Market may find support near 103.20, 102.20 intraday resistance can be seen near 104.80 & 105.90 Day traders are advised to sell intraday on rise. (Sell around 104.80 with SL 105.90 for the target of 103.20 & 102.20) (http://www.moneycontrol.com/news/brokerage-recos-commodities/buy-mcx-silver-may-near-rs-54400-sl-rs-53900-fortune-fin_840909.html)

Technical Updates

Geojit Comtrade has come out with its technical report on Gold, Silver, Crude, Natural Gas, Copper, Nickel, Lead, Zinc and Aluminium. According to the research firm, one can sell MCX Natural Gas March around Rs 215 levels with a stop loss above Rs 217 levels for a target of Rs 210 levels.

Technical Updates:
MCX Gold April : Buy around 29750 levels with a stop loss placed below 29650 levels for targets of 29900 levelsv.

MCX Silver May : Buy around 54500 levels with a stop loss placed below 54200 levels for targets of 55200 levels.

MCX Crude April : Buy around 5080 levels with a stop loss placed below 5050 levels for targets of 5130 levels.

MCX Natural Gas March : Sell around 215 levels with a stop loss placed above 217 levels for targets of 210 levels.

MCX Copper April : Buy around 416 levels with a stop loss placed below 413 levels for targets of 420 levels.

MCX Nickel March : Buy around 910 levels with a stop loss placed below 895 levels for targets of 930 levels.

MCX Lead March : Buy around 117.50 levels with a stop loss placed below 116.50 levels for targets of 119 levels.

MCX Zinc March : Buy around 103.50 levels with a stop loss placed below 102.50 levels for targets of 105.50 levels.

MCX Aluminium March : Buy around 107.50 levels with a stop loss placed below 106.50 levels for targets of 109 levels(Moneycontrol)

Panaji: Anand Mahindra's nephew killed in Goa road mishap

Panaji (PTI): The 32-year-old nephew of Mahindra & Mahindra CMD Anand Mahindra was killed in Anjuna in Goa when his scooter was hit by a speeding car, police said today.
The mishap took place in the wee hours on Monday killing Kaveesh Nath, who was holidaying in Goa and taking a scuba diving course before he could join the Mahindra group, they said.
Anjuna police reportedly failed to conduct timely alcohol test on the accused driver Rahul Kaushik, who got bail soon after the accident.
 
Mahindra was informed about the accident yesterday after he launched an electric car in New Delhi and he flew on a special jet to Goa, along with father of the deceased, to take the body.
"This is devastating news for our family. Kaveesh was a brilliant boy," Mahindra told PTI outside Goa Medical College near here today.
Seeking justice for his dead nephew, the industrialist hoped that those involved in the accident would be punished.
"I want to ensure that justice is done. People who recklessly drove and hit him must meet the consequences. I am sure police will do their job," he said after Anjuna police failed to conduct timely alcohol test on the driver.
Kaushik was given bail by a local court yesterday soon after his arrest.
The CMD said he has full faith in police and will be in touch with Chief Minister Manohar Parrikar seeking his help to get justice.
Kaveesh, son of Mahindra's sister, was an expert scuba diver but was taking further training at Anjuna to hone his hobby.
The deceased had graduated from Howard University and worked with Boston Consulting Group, before heading to India to join his uncle's company.
Police Inspector Vishwesh Karpe, who is investigating the case, said Kaveesh was referred to Candolim primary health centre soon after the mishap where he breathed his last.
The police official admitted that there was a delay in conducting alcohol test on the driver, who rammed against Kaveesh's scooter.
A case under culpable homicide not amounting to murder has been registered, he added.

Mangalore: Young girl found hanging close to Jogi Mutt, Kadri Hills

Mangalore, March 19: A young girl aged around twenty years found hanging in a tree near Jogi Mutt, at Kadri Hills. The unfortunate sight was noticed by a passer-by who had informed the police in the evening on Tuesday, March 19, 2013. The victim is identified as Pramila, aged around 20, daughter of Ammu Poojary, hailing from Kaniyoor, Dolpady, Puttur in Dakshina Kannada
 
Pramila was a student of computer sceince and said to be employed in the ‘Coffee Day’ outlet in Mangalore. The police have recovered a mobile phone, an ATM card and some visiting cards from the body of the deceased. The police have serious doubts about the suicide. ‘The crime could have happened on Monday night’ said the police. The body is shifted to Wenlock hospital for post-mortem. More details awaited.

Kadri Police is investigating the case

Congress committed to provide corruption-free rule in Udupi: Oscar

The Udupi CMC under the leadership of the Congress Party is committed to provide a good administration free from corruption said senior Congress leader and Rajya Sabha Member Oscar Fernandes.

He was speaking at a felicitation function organized at the Chittaranjan Circle on behalf of the Block Congress in honour of the victorious candidates of the Congress in the CMC elections and also all other party candidates who contested. The function was organized to also thank the voters for electing the party to power in the CMC.

“Udupi is a sacred land which is known for its communal amity. Still there have been incidents which counter this statement in the recent past. The Congress is committed to retain the glorious tradition of Udupi,” Oscar assured. He called upon all the newly elected councilors to strive to ensure a corruption free rule.

MP K Jayaprakash Hegde who also spoke, said the public opinion has been converted into votes in the ULB Polls. The same thing will be repeated in the assembly elections, he opined and added the     BJP government in the state was only for namesake with no development taking place.

Udupi Block Congress President Pramod Madhwaraj, in his address, said the Congress which could win just six seats in the previous elections has emerged victorious  in 22 seats this time. All out efforts would be made to fulfill the assurances given in the manifesto, he promised.
                                                                                                                                                    AICC General Secretary and former Udupi MP Vinaykumar Sorake, former minister Vasanth V Salian, AICC Secretary MA Gafur, Mahila Congress President Veronica Carnelio, Youth Congress President Yatish Karkera and others were present.