CRB Capital Investors - Message to the Blog

Good news for CRB Capital Markets investors

http://www.livemint.com/articles/2011/05/03211357/Depositors-in-CRB-Caps-sister.html?atype=tp

For buying and selling any unlisted/suspended/unquoted shares kindly contact on 08108303330 or dharawat1@gmail.com


Extract of the article

Depositors in CRB Caps, sister firms may get some money back

Liquidator to repay people who deposited up to Rs.50,000 within six months; repayment may run into Rs.100 crore

Fourteen years after CRB Capital Markets Ltd went bust, a section of people who had deposited money with the non-banking financial company (NBFC) and a clutch of sister firms between 1992 and 1996 could be repaid.

The Delhi high court recently formed a seven-member disbursement committee to repay people who had deposited up to Rs.50,000 with CRB Caps—the name by which it was popularly known in its heyday. This committee is to conclude payment of around Rs.100 crore within six months, according to the court’s order.

Founded by Chain Roop Bhansali, a Marwari brought up in Kolkata, CRB Caps and its sister firms such as CRB Mutual Fund and CRB Share Custodian Services Ltd raised at least Rs.600 crore from the public in five years till 1996 through instruments such as fixed deposits, bonds and mutual fund schemes.

The fall of CRB Caps was a watershed event, following which regulations were tightened and many other NBFCs went bust.

Bhansali also raised large sums of money from state-owned banks such as State Bank of India (SBI) and Bank of Baroda.

Bhansali’s aim was to turn CRB Caps, his flagship firm, into a bank; it had cornered a substantial stake in the erstwhile Bank of Punjab, recalls Ajit Day, stockbroker and former president of the Calcutta Stock Exchange.

Besides a high interest rate, Bhansali offered huge cash incentives on deposits that were paid upfront, Day added.

To make his deposit schemes attractive, he even obtained a facility from SBI under which depositors could present redemption and interest cheques issued by CRB Caps at any of the bank’s 4,000 branches at that time. In those days, branches of Indian banks were not interconnected, and it took days, sometimes weeks, to realize money from outstation cheques.

Bhansali’s house of cards eventually collapsed in 1997 following a Reserve Bank of India (RBI) investigation launched in September 1996. It revealed several financial irregularities, and in April 1997, RBI restrained CRB Caps from raising fresh deposits.

CRB was already in a debt-trap, taking fresh loans to repay old ones. Soon after RBI put fetters on its operations, its cheques began bouncing, and Bhansali, who had famously said, “every single drop of my blood is for the depositors”, went underground.

Bhansali, who was arrested in 1997 and spent some three months in jail, turned reclusive. Though he is a member of the Delhi high court-appointed disbursement committee and is believed to be living in Delhi, his whereabouts aren’t widely known. He couldn’t immediately be reached for comments on this story.

But people such as stockbroker Narottam Dharawat of Mumbai, who had bought CRB Caps’ redeemable bonds under a public issue, are not going to receive anything under the disbursement scheme.

Dharawat had bought bonds worth Rs.7,000 in 1994-95, which got converted into shares soon. Subsequently, he subscribed to a rights issue of CRB Caps, paying Rs.9,000.

“It was such a reputed company at that time,” said Dharawat. “It raised such a lot of money from retail investors but no one knows what they did with it.”

Gujarat NRE Mineral IPO - Update by Satyakam Mishra

 Gujarat NRE Mineral Resources Ltd — the holding company of India’s largest independent metallurgical coke producer — has deferred its initial public offer (IPO) citing volatile market conditions.

GNMRL, which owns 45.92 per cent in the listed company Gujarat NRE Coke Ltd, has around 10,000 small shareholders who would have got an exit option following the listing of the company.

In a communication to the bourses, Gujarat NRE Coke chairman and managing director Arun Kumar Jagatramka said the “extreme volatility in the stock markets in India and abroad, has made it difficult for us to get correct and true valuation of the company”. He urged the shareholders to hold on to the stocks to unlock the real value in future.

During the last annual general meeting of Gujarat NRE Coke on September 10, Jagatramka had said he was looking to divest 25 per cent in the holding company. Promoters hold 90 per cent in GNMRL.

The GNMRL board has decided to offer one bonus for every two shares held to pacify the small investors. The Jagatramka family — the promoters — will forego their entitlement of bonus shares in favour of non-promoter shareholders.

In 2009, GNMRL had announced 1:1 bonus for non-promoter shareholders.

Retail shareholders entered GNMRL when the Jagatramka family made a private placement of shares few years back to existing shareholders of listed Gujarat NRE Coke.

Besides a controlling stake in the local met coke maker, the holding company also owns stake in Gujarat NRE Coking Coal Ltd, the Australian mining arm.

GNMRL, through its wholly owned subsidiary, holds 90 per cent in two onshore oil and gas exploration blocks in the prospective Canning Basin in Australia.



Satyakam Mishra

Arch Pharma Update by Saumin Patel

|

saumin patel to me

Private Equity Funds Eyeing Exit Gains In Arch Pharma IPO

ICICI VC, Leverage India Fund and Swiss Technology are looking at part or full exit by the pharma player.

ICICI Venture Capital and Leverage India Fund (jointly sponsored by IL&FS and Punjab National Bank) are among the few other financial investors in mid-sized drugmaker Arch Pharmalabs who are making a part exit in the Mumbai-based company’s public issue.

Arch Pharma is looking to raise Rs 135 crore through a fresh issue of shares that will go alongside an offer for sale by six shareholders including four funds managed by ICICI Venture Capital, Swiss Technology Venture Capital Fund besides Leverage India Fund.

ICICI Venture is fully exiting its investment through India Advantage Fund II, Dynamic India Fund I and Rainbow Fund while part exiting shares held under India Advantage Fund V. Swiss Technology Venture Capital Fund is selling its entire block of 8.16% pre issue stake. Leverage India Fund is selling a little less than a third of its 7.28% holding.

The last equity transaction in the company involved a preferential allotment to Mitsui & Co at Rs 490 per share. If this is taken as a benchmark then the company is looking at maximum fresh issue of 2.75 million shares translating into equity dilution of around 10% of post issue equity base. This would mean the company is seeking valuation of Rs 1,347.5 crore or more (around $300 million), according to VCCircle estimates.

PRIVATE EQUITY GAINS

Swiss Technology Venture Capital Fund had put in Rs 20 crore to acquire shares of the company partly through conversion of cumulative convertible preference shares and rights issue of shares in the 2005-2008 period. Its average cost of purchase is pegged at Rs 83.3 per share. The fund had part exited last year by selling shares to mid-stage India-focused private equity fund Granite Hill India Opportunities Fund at Rs 400 per share or 4.8x returns. It also sold some shares to Emerging India Focus Fund and India Infoline Venture Capital Fund at the same time at the same price. If it sells shares at Rs 490 per share in the IPO, it would earn around Rs 99 crore for its remaining stake generating aggregate returns of 5.7x on its original investment (including part exits).

Leverage India Fund has put in around Rs 26.4 crore (2005-08) in the company through conversion of convertible debenture into equity and a rights issue with average cost of purchase estimated at Rs 124.4 a piece. It also part exited last year earning Rs 12.3 crore with 3.2x returns and will encash around Rs 24.5 crore during the IPO with almost 4x returns. It will continue to own an estimated 4.8% post issue.

ICICI Venture Capital’s India Advantage Fund II had invested around Rs 4.6 crore or about $1 million to buy a stake partly through purchase from promoters and converting warrants into equity in the company in 2004. It has part sold shares over the past five years to promoters, ICICI Bank, Dynamic India Fund I and India Infoline Venture Capital Fund gaining Rs 19.48 crore in the process. If the issue price is set at Rs 490 per share it would encash another Rs 17.6 crore translating into total Rs 37 crore or $8.2 million exit from its original $1 million investment.

ICICI Venture’s separate Dynamic India Fund I had picked shares in the company for around Rs 13.6 crore through secondary transfers from India Advantage Fund II and ICICI Bank at an average price of Rs 252 per share during 2007-08. It part exited by selling to Emerging India Focus Fund last year at Rs 400 per share earning Rs 4.24 crore and by full exiting in the IPO could encash a further Rs 21.5 crore, or selling out completely with 2x gross returns in less than four years.

Another entity under the ICICI banner Rainbow Fund had picked a small stake through transfer from ICICI Bank three years ago at Rs 261 per share and sold part of this to India Infoline Venture Capital Fund at Rs 400 a share and will generate a similar returns like Dynamic India Fund I.

ICICI Venture Capital’s another fund India Advantage Fund V had a much bigger exposure in the company having pumped in Rs 150 crore ($33.3 million) through a mix of share purchase from promoters, preferential allotment, rights issue, conversion of warrants into equity and transfer from India Advantage Fund VI. Its average cost of purchase works out to be Rs 240 per share. It sold some shares at Rs 400 per share last year encashing around Rs 40 crore. It is selling shares that could fetch it over Rs 139 crore if the issue price is around Rs 490 and it would still hold shares worth Rs 117 crore post issue.

ISSUE & COMPANY:

Arch Pharmalabs is looking to use Rs 135 crore raised through the fresh issue to repay/prepay term loan, capital expenditure for its existing manufacturing facilities, investment in environmental, health and safety related infrastructure besides investment in its R&D center.

The company has two business verticals: Products and Services. Its products business comprises manufacture and sale of Active Pharmaceutical Ingredients (API) and Intermediates to innovator and generic pharmaceutical companies in both domestic and international markets. In the services side it is engaged in Contract Research and Manufacturing Services (CRAMS).

It has a diversified product mix of APIs and Intermediates with more than 120 products (over 65 APIs and over 55 Intermediates) across various therapeutic segments. The therapeutic segments it caters to include side chains of Semi-Synthetic Isoxazole Penicillins under Antibiotics, Lipid Lowering Agents, Oncology, Anti-Asthmatic, Anti-Retroviral, Decongestant, Anti-Herpes, Anti-Malarial, among others.

It currently owns and operates 11 multipurpose manufacturing facilities in the western, southern and northern regions of India. Out of the 5 API manufacturing facilities, 3 facilities, (Gurgaon, Dombivali and Avon Solapur that is owned by its subsidiary Avon), are approved by USFDA.

For the year ended March 2010, the company had revenues of Rs 1,170 crore with net profit of Rs 62.6 crore. In the first half of current financial year, it had net profit of Rs 38.6 crore which works out to be around Rs 77 crore for the year ending March 31, 2011. If the issue price indeed works out to be Rs 490 per share, the company is seeking a valuation of around 17.5 times trailing earnings. This could appear a bit expensive compared to Jubilant Life Sciences which is much bigger in size but is trading at relatively modest valuations

For Buying 50 Camac Shares Contact Tushar

Interested in selling 50 shares of CAMAC.Buyers please offer your best quotes.

Tushar

96712-35955

Message to the Blog - From Lalit

DEAR ASWINIJI
WHY 3A CAPITAL NOT QUOTING 2 WAY QUOTATION PL.SEE THAT EVERY DEALER QUOTE TWO WAY QUOTATION SOME DEALER QUOTE TWO WAY QUOTATION BUT RELUCTANT TO EXECUTE TRADE AT QUOTED RATE SO IT IS MEANING LESS THEY CAN PUT TIME LIMIT & WITHIN THAT THEY HAVE TO READY FOR TRADE THANKS

LALIT 09376018280