Companies and Markets

Companies & Markets

SBI to issue shares to govt for Rs 8,800 cr capital infusion

State Bank of India on Friday said it will issue equity shares to government at a price of Rs 300.82 a piece against a capital infusion of over Rs 8,799.99 crore.

The issue price is higher than the prevailing trading price on the stock exchanges.

The committee of directors for capital raising at a meeting held today approved the issue price.

"The committee of directors... Has accorded its approval to fix the issue price of Rs 300.82 per share of face value of Re 1 each, including premium of Rs 299.82 per share," SBI said in a regulatory filing.

Walmart in talks to buy over 40% of Flipkart: sources

Walmart Inc is in talks to buy a stake of more than 40 per cent in Indian e-commerce firm Flipkart, a direct challenge to Inc in Asia’s third-largest economy, two sources familiar with the matter said on Friday.

In what would be one of its biggest overseas deals, the US retailer is looking at buying new and existing shares in Flipkart and due diligence is likely to begin as early as next week, the sources said. They declined to be named as the talks were private.

Fraud-hit PNB looking to monetise assets: source

Fraud-hit Punjab National Bank is considering monetising its real estate assets, including a giant office space in New Delhi worth an estimated Rs 5,000 crore ($778.63 million), a bank source with direct knowledge of the matter told Reuters.

The bank was looking to expedite the process after it said this week it has been hit with a $1.77 billion loan fraud, the biggest bank scam in the country’s history.

Fraud shatters trust in PSBs

Once again the faith of millions of depositors in our ‘Sarkari banks’ has been shattered with the country’s largest corporate fraud of Rs 11,560 crore discovered at state-owned Punjab National Bank (PNB).

Already, depositors fear the controversial financial resolution and deposit insurance (FRDI) bill 2017 tabled in the Parliament in last August, which with its various provisions permits using depositors’ money to bail-in a bank if it fails.

How the cover was blown

After the retirement of deputy manager Gokulnath Shetty, the new official who took charge noticed the fraud and wrote to the CBI on January 29, naming two PNB officials (the other being single window operator Manoj Kharat). The details are revealed in a complaint by PNB. The letter by the PNB official to the CBI also said Modi had claimed to need the cash to pay his import bills, but the Rs 280 crore raised weren’t used for this purpose. But there were no more details available.

Choksi caught in maelstrom

The extent of the malfeasance in the Nirav Modi case may well be far larger and the malaise may have spread to many more banks.

Nirav Modi, Mehul Choksi, Gitanjali under Sebi scanner

As a multi-agency probe continues against Nirav Modi for allegedly masterminding India's biggest-ever banking fraud, the stock market dealings of his relative and close associate Mehul Choksi has come under the scanner of markets regulator Sebi and stock exchanges.

The Securities and Exchange Board of India (Sebi) and the stock exchanges have begun analysing the stock market trade details of all entities associated with Modi including Choksi, who has already been under scanner for various cases including a brokerage default incident, a senior official said.

Nirav Modi gave vague offers to repay money: PNB CMD

Scam-hit PNB on Thursday said Nirav Modi, who allegedly defrauded the bank of about Rs 11,400 crore, has come up with "some vague offers" to repay the amount, even as the Enforcement Directorate continued raids at properties connected with the jeweller designer.

The country's second largest PSU bank has detected a $1.77 billion (about Rs 11,400 crore) scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoU) from a branch in Mumbai to secure overseas credit from other Indian lenders.

Lamborghini looking for presence in Maharashtra for EVs

Iconic Italian sports carmaker Lamborghini is mulling an investment in Maharashtra to aid its electric vehicles plans, a senior state government official said in Mumbai on Thursday.

Maharashtra Industrial Development Corporation chief executive officer Sanjay Sethi said the world-famous manufacturer of luxury supercars, sports cars and SUVs is planning an investment in the state.

Nirav Modi left India with family in first week of January

Billionaire jewellery designer Nirav Modi had left the country on January 1 much before the CBI received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud, officials said.

His brother Nishal, a Belgian citizen, also left the country on January 1, while wife Ami, a US citizen, and business partner Mehul Choksi, the Indian promoter of Gitanjali jewellery chain, departed on January 6, the officials said.

The agency issued a look out circular against all the four after registering the first FIR against them, they said.