Categories
Excerpts

ICICI Lombard scores over HDFC Ergo

(Disclosure:I am market making in the shares of ICICI Lombard)
Given the stringent criteria set forth by national carrier Air India while inviting technical bids, a consortium of four state owned non-life insurers and private insurer ICICI Lombard General Insurance Company have qualified for providing insurance cover to it. Theseinsurers will have to submit financial bids by next month. Private insurer HDFC Ergo General Insurance failed to qualify for the technical bidding. The four state owned non-life insurers namely New India Assurance, Oriental Insurance, United India Insurance and National Insurance Company bid as a consortium. Unlike previous years where private and public sector general insurers formed separate groups to bid, and the overall group’s financial strength was evaluated, this time, the national carrier developed a detailed score system to evaluate each insurer’s financial strength.

“We were asked to submit details including networth, investments, assets under management, liquid assets, gross premium underwritten, market share, retention capacity, solvency margin. On every parameter, an insurer was given a score. Till last year, the overall score of a consortium (of insurers) was counted. But this year they said that the average score of a consortium would be counted. So the average score of ICICI Lombard would fall if another private insurer’s score is less. Therefore ICICI Lombard did not bid in a consortium with HDFC Ergo General Insurance but bid alone,” an industry official tod Financial Chronicle.

A senior official of HDFC Ergo General Insurance confirmed that the insurer has failed to qualify for the technical bidding. The airlines will now be sharing information on passenger growth they are projecting, growth in fleet size etc. Insurers would be appointing brokers to conduct road shows in the overseas reinsurance market. The financial bids have to be done by September said another insurance official.

Air India insurance policy is the country’s largest aviation policy and is due for renewal on October 1.-from DigitalFC

Categories
CoatTailing

Portfolio of Ashish Kacholia

This post is in continuation of my coat tailing series (see here)

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Ashish Kacholia of Lucky Securities is a well known investor in the Indian Equity Markets.

His significant holdings in India aggregating around Rupees 326 Crores as on 30 June,2015 as per Stock Exchanges is given below:

Company Name Symbol/Code Entity Date End # of Shares % Value (Rs Crores)
Ashiana Housing Limited ASHIANA ASHISH KACHOLIA 201506 1322613 1.29 29.66
AXISCADES Engineering Technologies Limited AXISCADES ASHISH KACHOLIA 201506 375000 1.38 9.58
Eveready Industries India Limited EVEREADY Ashish Kacholia 201506 1550000 2.13 55.33
GATI Limited GATI Ashish Kacholia 201506 1500000 1.71 27.52
Lokesh Machines Limited LOKESHMACH Ashish Kacholia 201506 1000000 7.83 10.5
Navin Fluorine International Limited NAVINFLUOR ASHISH KACHOLIA 201506 242218 2.48 26.79
Pennar Industries Limited PENIND ASHISH KACHOLIA 201506 2500000 2.08 14.95
Pokarna Limited 532486 ASHISH KACHOLIA 201506 348315 5.62 40.78
SHAILY ENGINEERING PLASTICS LTD 501423 ASHISH KACHOLIA 201506 1000000 12.02 41.5
Shreyas Shipping & Logistics Limited SHREYAS ASHISH KACHOLIA 201506 526209 2.4 29.25
Vadilal Industries Limited VADILALIND ASHISH KACHOLIA 201506 231130 3.22 18.26
Vadilal Industries Limited VADILALIND SUSHMITA ASHISH KACHOLIA 201506 110279 1.53 8.71
Zen Technologies Limited ZENTEC ASHISH KACHOLIA 201506 1549456 2.01 14.98
Zen Technologies Limited ZENTEC SUSHMITA ASHISH KACHOLIA 201506 948642 1.23 9.17
Categories
Realty

A Bull Market in Highway Lands

The cost of land acquisition for highway projects in the country has gone up 70 per cent in the last three years, even as new compensation mechanism under the land acquisition law is not applicable. The new law became applicable from January 1 this year, and will have its effect on the land acquired for highways during the current financial year.

Speaking to Business Standard, a senior official in the National Highways Authority of India (NHAI) said, “This is beyond doubt that the cost of land has grown dramatically in the last three years, mainly on account of increase in circle rates, sale deeds, increase in realty prices etc. In the last three years, the cost of compensation has gone up by 73 per cent. Further, with the new land acquisition law in place from this January, the cost of land will further go up. The effect of the new law in awarding compensation will be reflected in the land acquired in 2015-16.”-from BS

 

Categories
Links

Linkfest:August 14,2015

Some stuff I am reading today morning:

Is Catholic Syrian Bank’s IPO a rare opportunity? (Seasonal)

Why Equity Funds don’t beat real estate (VRO)

Cyrus Mistry under fire for skipping Tata Motors Dividend (Mint)

ICICI Research:Buy Powergrid (MyIris)

Good days for mutal funds (BS)

How to arrange finance for a new business (Simply Paisa)

15 Rules for availing loan against PPF (Basu Nivesh)

Time is an investing ally (Barry)

How great investors deal with losses (TRB)

Someone owes Carl Icahn an apology (Deal Breaker)

Categories
Excerpts

FII limit in Catholic Syrian Bank raised to 74%

(Disclosure:I am market making in the shares of Catholic Syrian Bank)

The government on Thursday said it has cleared 23 foreign investment proposals, including that of Catholic Syrian Bank and Bandhan Financial Services, amounting to Rs 10,378.92 crore.

The investment proposals were approved following the recommendation for the same by the Foreign Investment Promotion Board (FIPB), headed by Finance Secretary Rajiv Mehrishi.

Besides, private sector Catholic Syrian Bank has got clearance for raising foreign investment limit in the bank from 49% to 74%. The proposal is worth Rs 1,200 crore. The bank has recently got nod for IPO.-from DNA

And

Foreign investment in the bank is currently at 30 per cent—19 per cent with individuals and 11 per cent with FIIs. The move from the bank comes as it is preparing for an IPO worth about Rs400 crores.

The firm is expecting support from foreign investors as well as NRIs. The share of foreign companies would be a deciding factor with regard to share prices when the firm goes public.

Out of banks that are based in Kerala, Federal Bank was the first which was able to increase foreign investments to a majority level. The bank, which is now 49 per cent owned by foreign entities, wants to increase that investment level to 74 per cent. South Indian Bank is looking to increase foreign investments in it to 59 per cent and shareholders have approved the move.

Even after foreign investments are hiked in these banks, it would not mean that they would go into foreign hands because that would need foreign majority in the board of directors of the bank, which is a distant possibility.

However, analysts are of the opinion that such a situation could arise if foreign companies are allowed to increase their stake in local firms. In such a case, local small banks could be the first targets for board-level manipulations and subsequent takeovers.-from Manorama