The Coal India (CIL) stock will remain in the focus as the Government is working out on modalities to sell 10 per cent stake in the company. A Bloomberg report quoting a draft proposal by the Finance Ministry said the Centre plans to raise about Rs 20,000 crore by disinvesting 10 per cent stake in the company through offer-for-sale (5 per cent) to the public and buyback (5 per cent).
At the end of March 2012, CIL's cash balance stood at Rs 58,202 crore. The Ministry of coal has been asked to take CIL’s workers’ unions into confidence. Meanwhile, according to a PTI report, a section of the employees has warned of going on strike if the Government goes ahead with stake sale proposal. Amidst all, UK—based hedge fund TCI, an investor in Coal India, had asked directors of the coal major to take steps for the removal of their CMD to run the company efficiently in the wake of fuel supply dispute with power major NTPC.
Wipro to remain in focus on de-merger
The stock of Wipro will attract market attention this week, as the company fixed April 11 as record date for the proposed demerger to find out eligible investors. As per the deal, the company plans to demerge its non-IT businesses into a new entity, Wipro Enterprises Ltd (WEL).
The new entity will not be listed, and public shareholders in Wipro are entitled to receive one share in WEL for every five shares they hold in Wipro. They can also choose to receive a 7-per cent preference share (redeemable after 12 months, at a price of Rs 235.2) in WEL for every five shares in Wipro. The third option is to convert their WEL shares into Wipro shares – by receiving one share in Wipro for every 1.65 shares in WEL. Shareholders of Wipro on December 28 had approved the demerger and the process is expected to complete in 4 to 5 months.
Reliance and insider trading case
Reliance Industries is likely to attract market attention as the Securities Appellate Tribunal will hear its appeal on Monday. The company has appealed against market regulator SEBI, which rejected its application to settle the matter through a consent mechanism. The case relates to the alleged violation of insider trading norms in sale of shares of the company’s erstwhile subsidiary Reliance Petroleum in 2007. Last year, SEBI tweaked the norms for settlement through consent framework, which resulted in many cases, including those related to insider trading, are not being settled through this mechanism.