Sebi seeks clarification on Videocon’s D2H arm IPO
The Securities and Exchange Board of India (Sebi) has sought clarifications from the merchant banker of Bharat Business Channel, direct-to-home TV arm of Videocon Group, regarding the company's proposed R700-crore public offering. Without disclosing the details of the clarifications sought, Sebi said that “clarifications (are) awaited from lead manager” for the proposed public offer. As per the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications were awaited on the IPO of Bharat Business Channel, which provides direct-to-home TV services under Videocon D2H brand, as on January 11, 2013.
FII holding in United Spirits dips to three-year low
Foreign institutional investors have pared their stake to a three-year low in UB Group firm United Spirits, which is currently awaiting regulatory nod for sale of a majority stake to global liquor giant Diageo. As per the latest shareholding pattern data of the company, FIIs held 45.81% stake in Vijay Mallya-led UB group firm United Spirits (USL) as on December 31, 2012. This is the lowest FII holding in the company since 34.99% over three years ago on September 30, 2009. Besides, the FIIs’ ownership in the company has been on a declining trend for four consecutive quarters now — falling from a high of about 53% at the end of 2011.
Goldman sees buying opportunity in ITC shares
Goldman Sachs on Monday said a recent correction in cigarette maker ITC shares was overdone, offering a buying opportunity. ITC is down 10.6% since index compiler FTSE cut its free-float weighting on the stock in mid-December, adding to lingering concerns that India would implement a plain packaging norm or bigger warning pictures for cigarettes. Goldman said ITC offered ‘an attractive risk-reward’, given the cigarette maker had robust pricing power and would benefit from the launch of new cigarettes. An analysis of nine markets that have introduced large pictorial warnings since 2001 did not make a difference in smoking patterns, either on prevalence or premiumisation, said the investment bank.
CLSA cuts oil stocks, says fuel price rally overdone
CLSA on Monday downgraded ONGC to ‘underperform’ from ‘outperform’. The brokerage also cut IOC and HPCL to ‘sell’ from ‘underperform’. CLSA said the rally in these state-owned stocks on the back of hopes for a hike in fuel prices was overdone, given any ‘sweeping’ changes to pricing would be hard to implement in a ‘very