NCLT sets 90-day deadline for Jet Airways bankruptcy resolution

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Jet stopped operations on April 17 leaving over 14,000 employees in the lurch

The National Company Law Tribunal (NCLT) on Thursday admitted the insolvency petition moved by State Bank of India (SBI) — under section 7 of the Insolvency and Bankruptcy Code (IBC) — against Jet Airways, and instructed that the resolution process be wrapped up in 90 days as the matter is of national importance.

Typically, the corporate insolvency resolution process (CIRP) should be completed in 180 days, and an extra 90 days’ time is granted in case the process doesn’t conclude in the stipulated period. The interim resolution professional (RP) has been instructed to submit fortnightly progress reports on the CIRP process, with the first to be filed on July 5, the day of the next hearing.

The tribunal also declared a moratorium on recovery of dues from Jet, the country’s first aviation firm to be admitted for bankruptcy. Jet had over 120 planes, of which only about a dozen have not been de-registered by the civil aviation regulator. The rest of the planes had their leases terminated and many of them have been inducted by other airlines in India or abroad.

Also, on a day which saw the beleaguered airline being admitted under the insolvency process, Jet shares posted their highest single-day gain on the bourses on Thursday, rising 93 per cent on the BSE to end at Rs 64 after declining 75 per cent in the previous 10 sessions. Such a movement in share prices is highly unusual.

Moreover, presiding judges V P Singh and Ravi Kumar Duraisamy did not take cognizance of the Dutch court order that had declared Jet bankrupt, given that cross-border insolvency is still not in place under the IBC and because the jurisdiction of the corporate debtor rests with the tribunal (as the company is listed in India).

SBI, in its plea, said the airline had defaulted on working capital loans of up to Rs 970 crore. Jet had a working capital facility of Rs 505 crore. This account was overdrawn by around Rs 460 crore for 30 days. The lender had also provided a term loan facility of Rs 1,292 crore to the carrier, which owes over Rs 8,000 crore to a consortium of 26 lenders.

Jet stopped operations on April 17 leaving over 14,000 employees in the lurch. SBI had declared Jet an NPA and made provisions in its Q4 results. The other 25 lenders will have to get their claims admitted when the interim RP begins to admit claims of various lenders. On the Jet case, SBI chairman Rajnish Kumar said lenders had taken every decision after a lot of deliberation.

“It (taking Jet to NCLT) is the last effort. This is the first case of bankruptcy in the aviation sector, which will be tested,” he said on the sidelines of the bank’s annual general meeting. Nobody appeared on behalf of the airline as most of the key management personnel had resigned as early as in May, the bank told the tribunal.

Ashish Chhawchharia of Grant Thornton has been chosen as the interim RP by SBI for 30 days, and the final decision on the RP will be taken by the committee of creditors. The interim RP will gather details of the airline’s assets along with along with inviting claims from creditors and employees. The two operational creditors — who had filed separate insolvency pleas — will file their claims with the interim RP now that the SBI plea is admitted.

https://www.business-standard.com/article/companies/nclt-sets-90-day-deadline-for-jet-airways-bankruptcy-resolution-119062100041_1.html

Suzlon Energy jumps as bankers meet today to resolve $1.4 billion debt

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Approval for the proposal is critical for Suzlon as ratings on its long-term bank facilities were downgraded at Care Ratings to D from BB in April

Suzlon Energy jumped the most in five months on Thursday a day before its lenders are poised to consider the beleaguered wind-turbine maker’s plan to sell its operations and maintenance business to pare debt.

Suzlon shares gained 22.4 per cent to close at Rs 4.1 in Mumbai paring its losses for the year to 24 per cent. The benchmark BSE Sensex index gained 9.9 per cent this year. The firm plans to offer a so-called one time settlement to the lenders led by SBI using the proceeds of the sale, said sources, asking not to be identified as the information is private. A spokesman for SBI and a spokeswoman for Suzlon didn’t immediately respond to an email seeking comment.

Approval for the proposal is critical for Suzlon as ratings on its long-term bank facilities were downgraded at Care Ratings to D from BB in April.

“Unfortunately, on account of a temporary mismatch in cash flow, the company was unable to fund its scheduled repayment obligations to its lenders,” Suzlon Chief Executive Officer J.P. Chalasani said in an exchange filing in April, reacting to the downgrade. He said the company was actively working with lenders for a debt revamp.

https://www.business-standard.com/article/companies/suzlon-energy-jumps-as-bankers-meet-today-to-resolve-1-4-billion-debt-119062100042_1.html

Indiabulls Housing Finance-Lakshmi Vilas Bank merger gets CCI nod

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In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach.

Indiabulls Housing Finance on Friday said the Competition Commission of India (CCI) has approved the proposed merger of the company with Lakshmi Vilas Bank.

In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach.

“The Competition Commission of India… at its meeting held on June 20, 2019, considered the proposed combination and approved the same,” Indiabulls Housing Finance said in a BSE filing.

The board of Lakshmi Vilas Bank had approved the merger with Indiabulls Housing Finance in which shareholders of the bank will get 14 shares of Indiabulls Housing Finance for every 100 shares they hold.

The combined entity, with employee strength of 14,302, will have a loan book size of Rs 1.23 lakh crore for the first nine-month period of 2018-19.

After the proposed merger, Indiabulls Housing Finance will get access to low cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.

https://www.moneycontrol.com/news/business/indiabulls-housing-finance-lakshmi-vilas-bank-merger-gets-cci-nod-4122711.html

Gold price jumps 2.21% on US Federal Reserve’s interest rate cut signal

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Yellow metal likely to hit Rs 35,000/10 gm; energy, base metals also firm up

Standard gold price in India on Thursday recorded the highest single-day gain of 2.21 per cent in recent years, following a sharp spurt in its prices in global markets on the US Fed’s dovish stance on economic growth in the United States.

The data compiled by the India Bullion and Jewellers Association (IBJA) showed standard gold price  at Rs 33,559 per 10 gm in Zaveri Bazaar here on Thursday, barely 0.3 per cent lower than the all-time high of Rs 33, 716 in February this year. On Wednesday, Standard gold price  in Zaveri Bazaar was Rs 32,851 per 10 gm.

Oil prices, too, jumped on Thursday but on rising US-Iran tensions, with gains accelerating on a cryptic tweet by American President Donald Trump after Iranian forces shot down a US spy drone. At 8.35 pm IST, US benchmark West Texas Intermediate climbed 6.3 per cent to $57.13 a barrel, while Brent futures in London gained 4.7 per cent to $64.69 a barrel.

Base metals remained resilient to trade, with a marginal gain on the London Metal Exchange (LME).

“The sharp spurt in gold prices can be attributed to the dollar’s weakness. The US Fed in its last meeting changed the narrative. So far, the narrative has been that the dollar interest rate is going up. But, the Fed is now turning dovish due to the ongoing trade talks, with the delay affecting the US economy. Thus, the Fed signals problems in the US economy with steady interest rate cuts. Consequently, crude and base metals did not follow the speed of surge in gold prices,” said Gnanasekar Thiagarajan, director, Commtrendz.

On Wednesday, the US Federal Reserve hinted at interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took the stock of rising trade tensions and growing concerns about weak inflation. Lower interest rates, in fact, decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, thus making gold cheaper for investors holding other currencies.

In the US, gold price hit the highest in five years in the late Wednesday trade as investors sought refuge in the bullion as a safe haven. Spot gold was up by 2 per cent at $1,386.38 an ounce, the highest since March 17, 2014. The gold price traded at $1,382.87 an ounce in London on Thursday.

“Gold has given a breakout above $1,365 an ounce, which could lead to a sustained upmove towards $1,430-1,440 an ounce. Domestic gold prices also holding firm above the breakout level of Rs 33,400 per 10 gm could trigger a further upside to Rs 34,300 per 10 gm in the short term,” said Navneet Damani, vice president, Motilal Oswal Financial Services.

Both Gnanasekar and Damani forecast gold price in the rupee term at Rs 35,000 per 10 gm in the near term before investors start a pullback from riskier assets like bullion for investment in equity markets.

On India’s Multi Commodity Exchange (MCX), gold futures for delivery in August jumped by 2.31 per cent to trade at Rs 33,844 per 10 gm. Silver and crude oil futures also moved up by 2.43 per cent and 2.7 per cent to Rs 38,210 a kg and Rs 3,876 a barrel for delivery in July, respectively. Copper and zinc futures jumped, too, jumped, albeit marginally.

Meanwhile, jewellery stores remained deserted as buyers deferred their non-essential purchases awaiting softness in gold prices.

https://www.business-standard.com/article/economy-policy/gold-price-jumps-2-21-on-us-federal-reserve-s-interest-rate-cut-signal-119062100023_1.html

Daily Bulletin (21st June, 2019)

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There are no current notifications of our companies on this date

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190621-26

1. Scrip code : 524208
Name : Aarti Industries Ltd
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Intimation of order of the NCLT approving the composite scheme of Arrangement between Aarti Industries Limited, Arti Surfactants Limited and Nascent Chemical Industries Limited and their respective shareholders.

2. Scrip code : 531223
Name : Anjani Synthetics Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
With Reference to above mentioned subject, please note that ANITA VASUDEV AGARWAL has purchased 4,500 equity shares on 21.06.2019 of Anjani Synthetics Limited, a Company registered under the Companies act, 1956, having its registered office at 221 (Maliya) New Cloth Market, Ahmedabad-380002. Please find enclosed herewith Annexure the Disclosure as per Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

3. Scrip code : 532187
Name : IndusInd Bank Ltd.
Subject : Indusind Bank Takes Note Of Record Date July 4, 2019 Determined By Bharat Financial Inclusion Ltd. (BFIL)For The Purposes Of Determining The Shareholders Of BFIL Who Shall Be Entitled To Receive Shares Of The Bank In Accordance With The Scheme Of Arrangement Amongst BFIL, IBL And IFIL.
IndusInd Bank takes note of Record Date July 4, 2019 determined by Bharat Financial Inclusion Ltd. (BFIL)for the purposes of determining the shareholders of BFIL who shall be entitled to receive shares of the Bank. In accordance with the Scheme and pursuant to its effectiveness, the Bank will issue and allot to those shareholders of BFIL whose names would appear in the register of members of BFIL on the Record Date, 639 (six hundred and thirty nine) equity shares of the Bank, credited as fully paid up, for every 1,000 (one thousand) equity shares of the face value of INR 10/ (Rupees ten) each fully paid-up held by such member in BFIL.

4. Scrip code : 533181
Name : Intrasoft Technologies Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Shares Purchase by Promoter

5. Scrip code : 534690
Name : LAKSHMI VILAS BANK LTD
Subject : Approval Received From The Competition Commission Of India For The Proposed Amalgamation Of Indiabulls Housing Finance Limited (IHFL) And Indiabulls Commercial Credit Limited (ICCL) (Which Is A Wholly-Owned Subsidiary Of IHFL), As ‘Transferor.
Companies’, Into And With The Lakshmi Vilas Bank Limited (LVB), As ‘Transferee Company’. In compliance with applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended and with reference to our intimation on April 05, 2019 and May 03, 2019 on the proposed amalgamation of Indiabulls Housing Finance Limited (the ‘Company’ or ‘IBH’ or ‘Transferor Company 1’) and Indiabulls Commercial Credit Limited (‘ICCL’ or ‘Transferor Company 2’) into and with The Lakshmi Vilas Bank Limited (‘LVB’ or ‘Transferee Company’) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, as amended, Companies (Compromises, arrangements and Amalgamations) Rules, 2016, as amended, and other rules and regulations framed thereunder, the Bank has taken up with applicable regulatory authorities for approval of the amalgamation process. Further, as intimated by Bank to the Stock Exchanges on April 12, 2019, April 22, 2019 and May 20, 2019 on the proposed preferential issue of Equity Shares to Indiabulls Housing Finance Limited, the Bank had also sought approval from Competition Commission of India (‘CCI’). Towards the same, this is to inform that the CCI has by way of its letter dated June 20, 2019 intimated that at its meeting held on June 20, 2019, considered the proposed combination (Comb Reg. No. (C-2019/05/662) and approved the same under Section 31 (1) of the Competition Act, 2002. Further, it is informed that the Amalgamation process is also subject to receipt of other applicable regulatory approvals, which we note to intimate on receipt. This is for your information and record

6. Scrip code : 540650
Name : Magadh Sugar & Energy Limited
Subject : Intimation Of Record Date For Issue Of Bonus Shares
Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, in continuation with the announcement made by the Company on May 14, 2019, for Issue of Bonus shares in the ratio of 4:10 [i.e. 4 (Four) Bonus equity shares of Rs. 10/- each for every 10 (Ten) existing fully paid up equity shares of Rs. 10/- each], subject to the approval of the shareholders through Postal Ballot, the Company has fixed June 30, 2019 as the Record date to determine eligible shareholders entitled to receive the Bonus shares BSE Limited National Stock Exchange of India Limited The Calcutta Stock Exchange Ltd Type of Security Record Date Purpose 540650 MAGADSUGAR 23935 Equity Sunday, June 30, 2019 Issue of Bonus shares, to be approved by shareholders by passing resolution through Postal Ballot result to be declared on or before June 23, 2019. Kindly take the same on your record. Thanking you, Yours faithfully For Magadh Sugar & Energy Limited S Subramanian Company Secretary.

7. Scrip code : 532819
Name : MindTree Limited
Subject : Updates on Open Offer
Axis Capital Ltd and Citigroup Global Markets India Private Ltd (“Managers to the Offer”) has submitted to BSE a copy of Corrigendum to the detailed public statement and the letter of offer with respect to the open offer by Larsen & Toubro Ltd (“Acquirer”) to the shareholders of Mindtree Ltd (“Target Company”)

8. Scrip code : 539917
Name : NAGARJUNA FERTILIZERS AND CHEMICALS LTD.
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
This is to inform you that we have received a disclosure under Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (‘SAST Regulation’) from Mr. K Rahul Raju on behalf of his daughters, pursuant to Family Settlement, in respect of inter-se transfer of his shares amongst immediate relatives on June 15, 2019 and the same is enclosed herewith for your kind information and records. This being an Inter-se transfer of shares amongst immediate relatives, the same falls within the exemption under Regulation 10(1)(a)(i) provided under SAST Regulation. Further, the aggregate holding of the Promoter and Promoter Group before and after the above inter-se transaction remains the same.

9. Scrip code : 513023
Name : Nava Bharat Ventures Ltd
Subject : Corporate Action-Updates on Buy back
Sub: Buy back- daily report With reference to the subject cited above, we hereby submit the daily report pursuant to Regulation 18(i) of the SEBI (Buy Back of Securities) Regulations, 2018 regarding equity shares bought back by Nava Bharat Ventures Limited as on June 21, 2019.

10. Scrip code : 533166
Name : Sundaram Multi Pap Ltd.
Subject : Filing Of Scheme Of Amalgamation With NCLT
This is further to our communication dated January 12, 2019 wherein we had informed National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) (together referred to as the ‘Stock Exchanges’) about the Scheme which, inter alia, envisages amalgamation of the ECESL into and with SMPL and dissolution of the ECESL without being wound up, subject to requisite approvals, permissions and sanctions of regulatory and other authorities. We further wish to draw your attention to our communication dated May 07, 2019 wherein we had informed the Stock Exchanges about the receipt of the observation letters from the Stock Exchanges giving their ‘No Objection’ in terms of regulation 94 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enabling the Company to file the draft Scheme with the National Company Law Tribunal.

11. Scrip code : 514236
Name : TTL ENTERPRISES LIMITED
Subject : Updates on Open Offer
TTL Enterprises Ltd has submitted to BSE a copy of Recommendations of the Committee of Independent Directors (“IDC”) of TTL Enterprises Limited (Formerly known as Trupti Twisters Limited) (“Target Company”) in relation to the Open Offer (“Offer”) made by Ardent Ventures LLP (“Acquirer”), to the Public shareholders of the Target Company (“Shareholders”) under Regulations 26(7) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and Subsequent Amendments thereto (“SEBI (SAST) REGULATIONS, 2011”).

Daily Bulletin (20th June, 2019)

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There are no current notifications of our companies on this date

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190620-36

1. Scrip code : 532633
Name : Allsec Technologies Ltd.
Subject : Updates on Open Offer
Axis Capital Ltd (“Manager to the Offer”) has submitted to BSE a copy of advertisement in accordance with Regulation 18(7) of Page 47 bu200619 the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (as amended) (“Takeover Regulations”) and Second Corrigendum to the detailed Public Statement with respect to the Open Offer to the public shareholders of Allsec Technologies Ltd (“Target Company”).

2. Scrip code : 531223
Name : Anjani Synthetics Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
With Reference to above mentioned subject, please note that ANITA VASUDEV AGARWAL has purchased 10,500 equity shares on 20.06.2019 of Anjani Synthetics Limited, a Company registered under the Companies act, 1956, having its registered office at 221 (Maliya) New Cloth Market, Ahmedabad-380002. Please find enclosed herewith Annexure the Disclosure as per Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 We request you to take the above information on your records.

3. Scrip code : 533228
Name : Bharat Financial Inclusion Limited
Subject : Record Date For The Purposes Of Composite Scheme Of Arrangement Among Bharat Financial Inclusion Limited (“BFIL”), Lnduslnd Bank Limited (“Bank”), Lnduslnd
Financial Inclusion Limited (“IFIL”) And Their Respective Shareholders And Creditors (“Scheme”)
This is in furtherance of our letter dated June 19, 2019, wherein we had intimated that the Board of Directors of BFIL (“Board”) at its meeting convened on June 19, 2019 inter alia considered and noted the order dated June 10, 2019 (“NCLT Order”) vide which the Hon”ble National Company Law Tribunal, Mumbai Bench sanctioned the Scheme and fixed Thursday, July 4, 20 I 9 as the Effective Date of the Scheme, on which date the NCLT Order will be filed by the Bank, BFIL and lFIL with the jurisdictional Registrar of Companies. 2. In accordance with Regulation 42(l)(e) of the SEBI LODR Regulations, we would like to inform you that the Board of BFIL, at its meeting held on June 19, 2019, has also fixed Thursday, July 4, 2019 as the Record Date, following the effectiveness of the Scheme, for the purposes of determining the shareholders of BFIL who shall be entitled to receive shares of the Bank, as consideration pursuant to the Scheme.

4. Scrip code : 533160
Name : D B REALTY LIMITED
Subject : Announcement under Regulation 30 (LODR)-Acquisition
Disclosure details of Mr. Vinod K. Goenka regarding Purchase of shares by him in terms of Regulation 29(2) of SEBI (SAST) Regulations, 2011

5. Scrip code : 507552
Name : Foods & Inns Ltd.
Subject : Disclosure By Promoters For Acquisition Of Shares Under SEBI (SAST) Regulations 2011
This refers to the reporting requirements in terms of Regulations 29 (2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 by the Promoters of the Company. We have received from the following Promoter the report under above Regulation, a copy of which is enclosed for your records: 1. MPIL Corporation Limited Kindly take the said reports on record and oblige.

6. Scrip code : 540614
Name : G G Engineering Limited
Subject : Intimation Of REVISED Record Date For The Purpose Of Allotment Of Bonus Equity Shares As Per Regulation 42 Of The SEBI (Listing Obligations And Disclosure Requirements), Regulations, 2015
In pursuance of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, We further wish to inform that the Board of Directors of the Company have approved and fixed 29th June, 2019, as the Record Date for the purpose deciding the Members who shall be eligible to the allotment of the Bonus Shares.

7. Scrip code : 532764
Name : GeeCee Ventures Limited
Subject : Corporate Action-Updates on Buy back
In reference to the captioned subject and in furtherance to our letter dated May, 30 2019 whereby we had submitted the Draft Letter of Offer, the Company hereby submits the Letter of Offer (‘LOF’) dated June 18, 2019 in terms of Buyback Regulations and relevant provisions of the Act.

8. Scrip code : 531213
Name : Manappuram Finance Limited
Subject : Acquisition Updates
Pursuant to Regulation 30(2) of the SEBI(LODR) Regulations, 2015, this is to inform your good office that the Company has completed acquisition of 92.6% of Equity Shares of M/s Manappuram Comptech & Consultants Ltd by way of purchase of 25000 shares at Rs.365.37/- per share, for the total consideration of Rs 91,34,250 (Rupees Ninety One Lakh Thirty Four Thousand Two Hundred and Fifty.) Acquisition of remaining 7.4% (2000 Equity Shares) is in process and will be completed by 31st August, 2019.

9. Scrip code : 538970
Name : Manvijay Development Company Limited
Subject : Announcement under Regulation 30 (LODR)-Open Offer – Updates
We are in receipt of letter dated June 20, 2019 from Mark Corporate Advisors Private Limited regarding Open Offer along with Public Announcement (PA) to the extent of 16,84,800 Equity Shares of Rs. 10/- each at an offer price of Rs. 10/- per share by Yatin Sanjay Gupte and M/s. Wardwizard Solutions India Private Limited (Acquirers’) pursuant to Share Purchase Agreement dated June 20, 2019 signed between all the Promoters of the Company and the Acquirers. The Promoters intend to sale their entire shareholding of 45,28,800 Equity Shares of Rs. 10/- each representing 69.89% of the paid-up capital of the Company. We are enclosing herewith letter of Mark Corporate Advisors Private Limited along with PA the contents of which are self-explanatory.

10. Scrip code : 532663
Name : Sasken Technologies Limited
Subject : Corporate Action-Updates on Buy back
We wish to inform you that the Buy-back Committee of the Board of Directors, at its meeting held on June 20, 2019, inter alia, considered and determined the Buy-back Price of Rs.825/- (Rupees Eight hundred twenty five only) per equity share (the Buy-back Price) and the total consideration for Buy-back not exceeding Rs.16,988.76 lakhs (the Buy-back Size) excluding the transaction costs viz. brokerage, applicable taxes such as securities transaction tax, GST, stamp duty, etc., With the Buy-back price of Rs.825 per equity share and the Buy-Back Size of not exceeding Rs.16,988.76 lakhs, the total number of shares to be bought back in the Buy-Back shall be up to 20,59,243 equity shares representing 12.04% of the total number of equity shares of the Company as on March 31, 2019.

ED arrests two former IL&FS executives in alleged money laundering case

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The ED had registered the enforcement case investigation report (Ecir) on February 19.

They will both be presented on Thursday at a special court of PMLA in Mumbai.

The Enforcement Directorate (ED) on Wednesday arrested two former top executives — Arun Kumar Saha and Karunakaran Ramchand — for their alleged involvement in money laundering activities at Infrastructure Leasing & Financial Services (IL&FS) group.

Saha was former joint managing director (MD) of IL&FS Financial Services, while Ramchand was former MD of IL&FS Transportation Networks (ITNL).

Confirming the development, a senior ED official told Business Standard that they were arrested under Section 19 of the Prevention and Money Laundering Act (PMLA). The ED had registered the enforcement case investigation report (Ecir) on February 19. They will both be presented on Thursday at a special court of PMLA in Mumbai, the official added.

Hari Shankaran, ex-chairman, il&fs, had already been arrested by the SFIO. According to the ED, the PMLA investigation revealed that Saha and Ramchand, who were also members of the Committee of Directors of IL&FS Financial Services (IFIN), were involved in “illegal activities”.

“They were involved in sanctioning and disbursement of loan without taking proper security to the group companies, which were already in financial distress and unable to pay earlier loans,” the ED said.

Further, they were involved in indirectly routing funds from IFIN to ITNL through the third party, which was the contractor of ITNL — a flagrant violation of RBI norms.

The ED said both of them were not cooperating and were evasive while responding on the issues. Both the officials, being part of the top management earlier as well as being influential people, may try to influence witnesses and destroy evidence. Therefore, they were arrested under Section 19 of the PMLA Act, it noted.

The enforcement agency examining the books of IFIN and other subsidiaries found significant transactions between group firms such IL&FS Rail and Transportation Networks. It was also observed that groups firms had done so deliberately, with an intent to siphon off the loan amount.

https://www.business-standard.com/article/companies/ed-arrests-two-former-il-fs-executives-in-alleged-money-laundering-case-119062000061_1.html

HDFC to acquire Apollo Munich Health Insurance for Rs 1,347 crore

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Apollo Munich will be later merged with general insurance company HDFC ERGO, part of the HDFC group.

Mortgage lender Housing Development Finance Corporation (HDFC) will acquire controlling stake of 51.2 per cent in Apollo Munich Health Insurance for about Rs 1,347 crore from Apollo Hospitals group and few employees who hold stake in the standalone health insurer.

After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months.

“We had to do a two-step transaction since if HDFC Ergo had directly bought Apollo stake, it would have breached the 49 per cent cap on foreign investment in insurance for Munich Re,” Deepak Parekh, chairman of HDFC and HDFC Ergo General Insurance, said while addressing a press meet.

Munich Re is already HDFC’s partner in the general insurance company.

Ergo International AG, which holds 49 per cent stake in HDFC Ergo, is a subsidiary of Munich Re and Munich Re also holds stake in Apollo Munich Health Insurance. After the amalgamation, Munich Re will continue to hold 49 per cent stake in HDFC Ergo and the combined entity will have a gross direct premium of Rs 10,807 crore.

To support the transaction with its material benefits for Apollo Munich, Munich Health will give Rs 294 crore to Apollo Hospitals Enterprises and Apollo Energy in connection with the termination of their joint venture.

The merged entity will have a combined market share of 6.4 per cent in the non-life insurance industry with 308 branches in the country. It will also be the second largest private insurer in the accident and health segment in the country, HDFC said in a statement.

Apollo Munich Health Insurance is a joint venture between Apollo Hospitals group and German reinsurer Munich Re where Apollo Hospitals holds around 10 per cent and Apollo Energy 40.4 per cent of Apollo Munich on a fully diluted basis and Munich Re holds 49 per cent. “The combined expertise of HDFC Ergo and Apollo Munich will result in greater product innovation, wider distribution and enhanced servicing capabilities, benefiting their 1.2 crore policy holders,” said Parekh. With this acquisition, three of the seven standalone health insurance companies have been acquired. Recently, Max Bupa Health Insurance was acquired by private equity firm True North. Similarly, Star Health Insurance was also acquired by private equity firms and Rakesh Jhunjhunwala.

“We are sure that the new shareholder will continue to nurture and scale the business to greater heights and confident that all stakeholders will be positively impacted. The funds from the divestment will enable us to focus on investing and growing our core healthcare business,” said Shobana Kamineni, chairperson of Apollo Munich Health Insurance.

In FY19, Apollo Munich Health Insurance collected premiums to the tune of Rs 2,194 crore and the profit after tax of the company was Rs 11 crore. The combined ratio of the standalone health insurer was 100.7 per cent. It has a market share of 4.4 per cent in the health insurance market and 7.6 per cent in the retail health insurance market.

The combined entity will have a portfolio mix of 39 per cent accident and health insurance, 28 per cent health insurance and the rest will be commercial and crop insurance.

https://www.business-standard.com/article/companies/hdfc-to-acquire-apollo-munich-health-insurance-for-rs-1-347-crore-119061900949_1.html

IndiaMART to launch IPO on June 24, plans to raise Rs 475 crore

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The company has priced its IPO between Rs 970 and Rs 973 per share. The offer will close on June 26.

IndiaMART InterMESH, which operates Indiamart.com, an online listing platform for small and medium businesses in India, will launch its initial public offering (IPO) on June 24. The firm is planning to raise Rs 475 crore. The company has priced its IPO between Rs 970 and Rs 973 per share. The offer will close on June 26.

Intel Capital, Amadeus Capital Partners and Quona Capital will make a partial exit through the IPO. The IPO is purely offer for sale and the company will not receive any proceeds. ICICI Securities, Edelweiss Financial Services and Jefferies are managing the IndiaMART initial share sale.

IndiaMART’s online marketplace provides a platform for business buyers to discover products and services, and contact the suppliers of such business products and services. As of March 31 2019, the company had 82.7 million registered buyers and 5.5 million suppliers.

IndiaMART is the first firm to hit the primary markets with an IPO after the election. Companies had deferred their fundraising plans due to election-related uncertainties.

https://www.business-standard.com/article/markets/indiamart-to-launch-ipo-on-june-24-plans-to-raise-rs-475-crore-119061901408_1.html

IndusInd Bank, Bharat Financial gain over 2% after fixing record date for merger

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M R Rao, currently the MD and CEO of Bharat Financial, will become the MD and CEO of IFIL

IndusInd Bank and Bharat Financial Inclusion shares gained more than 2 percent each on June 20 after both companies board members fixed July 4 as the record date for merger.

“All assets and liabilities of Bharat Financial shall become assets and liabilities of the Bank with effect from the appointed date, being January 1, 2018. Simultaneously with amalgamation, the business correspondent undertaking of Bharat Financial shall be transferred to IFIL, a wholly-owned subsidiary of the Bank. All assets and liabilities originated by IFIL will be booked in the balance sheet of the Bank,” IndusInd said in its BSE filing.

The Bank further said both board members fixed July 4, 2019 as the effective date of the scheme, on which date the NCLT Order will be filed by the bank, Bharat Financial and IFIL with Registrar of Companies.

July 4 will also be the record date, following the effectiveness of the scheme, for determining the shareholders of Bharat Financial who shall be entitled to receive shares of the bank, as consideration pursuant to the scheme, it added.

The board of directors have decided to publish consolidated financial results for the quarter ending June 2019 on July 12.

As per the scheme, the Bank will issue and allot its 639 shares to shareholders of Bharat Financial on the record date against every 1,000 shares held by them in Bharat Financial.

“The scheme also contemplates a preferential allotment of share warrants to the promoters of the bank. Each share warrant, upon exercise, shall entitle the promoters to one equity share. The share warrants shall be issued to the promoters of the bank at Rs 1,709 per warrant,” IndusInd Bank said.

M R Rao, currently the MD and CEO of Bharat Financial, will become the MD and CEO of IFIL.

Bharat Financial Inclusion was quoting at Rs 888.65, up 2.48 percent and IndusInd Bank was up 2.09 percent at Rs 1,411.75 on the BSE at 1013 hours IST.

https://www.moneycontrol.com/news/business/markets/indusind-bank-bharat-financial-record-date-merger-4118221.html