The News International Team
02:55pm Liberty Shoes on buyers’ radar
Fast-moving consumer goods company Liberty Shoes is likely to undertake a consolidation exercise to increase operational efficiencies and eliminate royalty. According to sources, the consolidation will possibly complete in three years in three different phases.
The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms, say sources.
Liberty had entered into a two-year agreement with partnership firms in FY13. Sources told CNBC-TV18 that the proposal is likely to be submitted to the board after clarity on tax implication, evaluation of assets.
The stock gained 4 percent.
In an interview to CNBC-TV18, Ravi Uppal, MD, JSPL, said investments worth around Rs 250,000 crore is at stake. “Hundreds of thousands of people are employed by this group so I don’t think Supreme Court has done any consolation.”
The company’s blocks in question are Gare-Palma-IV/1 (allocated in 1996), Gare-Palma-IV/2 (1998), Gare-Palma-IV/3 (1999), Utkal B1 (2003), Jitpur (2007) and Amarkonda Murgadangal, allocated in 2008.
“The coal blocks given to us had coal of extremely inferior quality with ash running between 45 percent and 50 percent. And when the list was drawn up in 1993, these coal blocks were among the list which were not on the agenda of production of Coal India and its subsidiary SECL. So they were not even considered worthy of production. That is why it was given to private companies. We happened to be the one who took the coal out of this ash. Normally you talk of ash in coal, but here in the blocks we had coal in ash,” he said.
02:00pm Consistent buying in banking & financials, technology, FMCG and auto stocks helped the market stay higher. The Sensex rose 133.53 points to 26576.34 and the Nifty gained 33.55 points at 7938.30.
About 1513 shares have advanced, 1318 shares declined, and 122 shares are unchanged.
Jindal Steel & Power, which fell 20 percent in previous two sessions post SC order on coal block allocation case, managed to bounce back today, up 2 percent on short covering.
Realty major DLF fell over 4 percent after the Supreme Court asked DLF to submit penalty of Rs 630 crore within three months. The company will submit undertaking of interest of 9 percent on payment and pay Rs 50 crore of penalty within 3 weeks, says the court.
On July 11, the company had moved the apex court against the Competition Appellate Tribunal or COMPAT order announced in May that upheld competition regulator Competition Commission of India’s (CCI) ruling, which imposed Rs 630 crore penalty with 9 percent interest alleging abuse of dominant position in Gurgaon.