Month: June 2022

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LIC ups stake in Capri Global to over 7 pc with Rs 221 crore investment

LIC has increased its stake in non-banking finance company Capri Global Capital, to over 7 per cent from 5 per cent earlier, during the February-June period with an investment of over Rs 221 crore, the state-owned insurer said on Tuesday.

LIC’s shareholding in Capri Global Capital has increased from 88,58,348 equity shares to 1,24,00,000 equity shares or from 5.043 per cent to 7.059 per cent of the paid-up capital of the latter, Life Insurance Corporation (LIC) said in a regulatory filing.

The holding increased during the period from February 21 to June 10, through open market purchase at an average cost of Rs 624.61, LIC said. This translates into an investment of about Rs 221.22 crore by the life insurer for the stake buy in Capri Global.

Capri Global is an NBFC with presence across different segments like MSME, construction finance, affordable housing and indirect retail lending segments.Shares of LIC were trading at Rs 673.45 apiece on BSE, up by 0.79 per cent from its previous close, while Capri Global scrip was up 0.14 per cent at Rs 695.30 apiece on BSE.

Eqwires Research Analyst

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Dhanlaxmi Bank shareholders question rights issue plan

The shareholders of controversy-ridden Dhanlaxmi Bank on Sunday raised queries on the lender’s plan to raise Rs 130 crore via a rights issue in its extraordinary general meeting (EGM). Questions were also asked about the management’s strategy to boost growth of the Kerala-based bank.

“The registered speaker shareholders raised queries relating to the bank on various topics including strategies considered by the bank for the bank’s growth as well as maximizing shareholder value, proposed rights issue…,” the bank said in an exchange filing.

On March 17, the bank had approved a rights issue of up to Rs 130 crore. Following that, the bank announced an expansion plan which included opening of an administrative office and 20 new branches in southern India.

A clutch of minority shareholders in April called for an EGM shortly after the bank announced the fund raising and the expansion plan, alleging inordinate expenditure by the bank’s management. B Ravindran Pillai and B Goindan, along with nine other shareholders had called for the EGM.

These shareholders together hold more than 10% stake in the bank. As per the norms, shareholders having 10% stake in a company can call for an EGM. A total of 46 Shareholders were present in the EGM.

Earlier, the shareholders had also raised a red flag on the bank’s rising cost-to-income ratio and also said that the lender needs to place controls over expenditure especially in light of the deteriorating capital adequacy ratio, which is adversely commented upon by the Reserve Bank of India.

The cost-to-income ratio of the bank declined consistently in FY22 from 85.04% in Q1FY22 to 74.73% in Q4FY22. Similarly, capital requirement adequacy ratio (CRAR) declined from 14.57% in Q1FY22 to 12.98% in Q4 FY22.

Independent director G Rajagopalan Nair, MD & CEO J K Shivan and director C K Gopinathan along with other executives attended the EGM. Other than these three board members, the bank has only two RBI-appointed board members, Jayakumar Yarasi and D K Kashyap. Yarasi was appointed as additional director in place of G Jagan Mohan. The term of his appointment is from May 2022 till May 2024.

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SAT directs Malvinder Mohan Singh, Malav Holdings to deposit 50 pc of Sebi penalty amount

The Securities Appellate Tribunal (SAT) has directed businessman Malvinder Mohan Singh and Malav Holdings to deposit 50 per cent of the penalty amount imposed by markets regulator Sebi within six weeks in connection with violations in a case related to Fortis Healthcare.

If they deposit the amount, then the market regulator will not collect the remaining penalty during the pendency of the appeal, the appellate tribunal said in its order. The amount deposited by the appellants will be kept in an interest bearing account and would be subject to the result of the appeal, it added.

The order came after Singh and others approached SAT against the capital markets regulator’s order passed in April, whereby it had slapped a fine of Rs 5 crore on Singh, who was the promoter of Fortis Healthcare, besides Rs 2.5 crore each on Malav Holdings, a company owned by Singh, and Gagandeep Singh Bedi, who was the chief financial officer of Fortis Healthcare.

In addition, Sebi had barred Malvinder Mohan Singh and his brother Shivinder Mohan Singh from the securities market for a period of three years. They have also been restrained from being associated as directors or key managerial personnel in a listed company or Sebi-registered intermediary of any market infrastructure institution.

The case relates to the Singh brothers, along with other entities, allegedly diverting funds from Fortis Healthcare for the ultimate benefit of RHC Holding Pvt Ltd — an entity indirectly owned and directly controlled by the erstwhile promoters. These entities acted in a fraudulent and deceptive manner which led to misuse and/or diversion of funds to the tune of Rs 397.12 crore for the ultimate benefit of RHC Holding, as per the order.

It was also alleged that Gagandeep Singh Bedi deliberately failed to carry out adequate due diligence and exercise independent judgement. In an order passed on Monday, SAT directed “the appellant Malvinder Mohan Singh, noticee no.2 and Malav Holdings P. Ltd., noticee no.4 each deposit 50 percent of the penalty amount within six weeks from today.” Bedi has been asked to deposit Rs 25 lakh within six weeks. August 1 is the next date of hearing.

Malvinder Mohan Singh’s counsel submitted before the appellate tribunal that Singh was not given adequate opportunity to contest the matter. It has been stated that the appellant is still in jail and that his advocate could not have access to him and could not receive adequate instructions.

The counsel further said it is not known as to how much penalty has been calculated under each head, adding that the penalty amount is excessive. Singh brothers are now not associated with Fortis Hospitals and Fortis Healthcare

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