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We d n e s d ay 2 2 , O c to b e r 2 0 1 4
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 Japan exports rebound, but economy still
not out of woods
 President signs ordinance for auction of
coal blocks
 Plan to set up steel research &
technology body
 NMDC-CMDC JV to mine 1 MTPA iron
ore from Bailadila
 JSW Steel posts Q2 net profit of
Rs. 748.76 cr
2
Wednesday 22, October 2014
Daily
MMR Landed Prices
London Metal Exchange : Tuesday 21, October 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6615.00
6658.00
6660.00
6707.00
6708.00
6716.75
45.0
1,57,625
MMR LP
4,41,771
3-mth
6570.50
6620.00
6621.00
6662.00
6663.00
6669.00
50.5
-100
14-D MA
4,45,366
PP (HCL)
4,56,624
Average
10-days - 6711.70
20-days - 6720.80
30-days - 6769
Tin High Grade
Spot
19400.00
19475.00
19500.00
19434.00
19435.00
19410.00
100.0
9,155
--
--
3-mth
19450.00
19475.00
19500.00
19474.00
19475.00
19450.00
50.0
0
--
--
--
--
Average
10-days - 19810
20-days - 20158.80
30-days - 20495
Lead
Spot
2012.00
1999.00
1999.50
2011.00
2012.00
2017.75
-12.5
2,24,700
MMR LP
1,38,334
3-mth
2021.00
2009.00
2011.00
2022.00
2023.00
2029.00
-10.0
0
14-D MA
1,40,559
PP (HZL)
1,46,300
Average
10-days - 2036.80
20-days - 2056.20
30-days - 2066.90
Zinc Special High Grade
Spot
2222.50
2187.50
2188.00
2206.00
2207.00
2207.50
-34.5
7,19,925
MMR LP
1,57,155
3-mth
2223.00
2191.50
2192.00
2209.00
2210.00
2210.00
-31.0
-1650
14-D MA
1,61,594
PP (HZL)
1,69,200
Average
10-days - 2279
20-days - 2273.80
30-days - 2266.60
Aluminium
Spot
1954.50
1971.00
1972.00
1987.00
1987.50
1982.50
17.5
44,97,350
MMR LP
1,50,806
3-mth
1970.00
1980.00
1981.00
1995.00
1996.00
1991.00
11.0
-10150
14-D MA
1,47,956
PP (Nalco)
1,56,900
Average
10-days - 1919
20-days - 1912.40
30-days - 1931
Aluminium Alloy
Spot
2090.00
2085.00
2095.00
2093.00
2094.00
2089.00
5.0
27260
3-mth
2095.00
2090.00
2100.00
2100.00
2100.00
2095.00
5.0
-120
Average
10-days - 2089.50
20-days - 2084.80
30-days - 2084.80
Nickel
Spot
15315.00
15200.00
15225.00
15329.00
15330.00
15230.00
-90.0
3,77,136
--
--
3-mth
15390.00
15300.00
15310.00
15400.00
15400.00
15300.00
-80.0
630
--
--
-Copper
Aluminium
-01-Oct
14-Oct
Zinc
Lead
20-Oct
20-Oct
Average
10-days - 15970.50
20-days - 16291
30-days - 16836.80
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/LB)
Antimony
99.65%
9,600
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
14.25
Tantalite
30% Ta2O5
92.00
Titanium Ferro-vana
Con. Ti02
650.00
24.90
Silicon
2,050
Week ended Avg of Steel Prices: 11/10/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Mandi
29,400 HMS
33,600 CRP(LSLP)
Mumbai
29,800
32,900
Kolkata
29,500
-
Indicative Domestic Market Rates (Rs./kg)
Mumbai
21-Oct
Chennai
29,800
32,200
MS Ingots
Bhiwandi
38,300
Comex Copper (cents/lb)
Prev
Delhi
21-Oct
Prev
-506.0
-506.0
428.0
-
432.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
166.0
183.0
136.0
1,480.0
1,100.0
166.0
185.0
136.0
1,490.0
1,110.0
172.0
195.0
133.0
1,475.0
1,102.0
172.0
196.0
133.0
1,475.0
1,112.0
471.0
425.0
472.0
427.0
---
---
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-328.0
-340.0
134.0
-327.0
-339.0
134.0
415.0
-319.0
142.0
421.0
-320.0
142.0
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
29,700
-
Oct'14
Nov'14
Dec'14
Rate
303.10
303.00
302.80
Change
1.4
1.3
1.3
Kanpur
38,000
Durgapur
34,300
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
21-Oct
27,700
39,600
1,250.3
17.36
1,251.0
17.50
Prev
27,550
39,000
1,244.5
17.38
1,244.0
17.30
Forex: Oct 21, 2014 (Rs/Unit Currency)
Buy
USD
61.15
61.32
EURO
85.32
GBP
99.16
99.03
SGD
49.07
—
—
AUD
54.05
YEN
0.5774
0.5766
SFR
64.41
Sell
80.34
48.27
53.98
64.30
Buy
Sell
Customs Notified Rates: Oct 02, 2014 [Rs.(Imp/Exp)]: US$ 62.30/61.30;Pound Sterling 101.25/99.00;Euro 79.00/77.10
3
Wednesday 22, October 2014
U.S stock market ended with positive gained
USD/INR - 21/10/14
on stronger-than-expected quarterly earnings,
strong performance on upbeat results from two
USD/INR Overnight VAR
technology bellwethers offset investors' recent
Data releases today
concerns about the outlook for the global
17:00
solid gains on Wednesday, after Wall Street's
16:00
9:00
rising session. Asian shares were on track for
15:00
gain since October 2013 and its fourth straight
14:00
1.96 percent to mark its biggest daily percentage
13:00
.IXIC more than 2 percent. The S&P 500 added
12:00
lifting the tech-heavy Nasdaq Composite index
11:00
61.26
61.27
61.28
61.29
61.30
61.31
61.32
61.33
61.34
61.35
61.36
10:00
Daily
0.3570
Forecast
Previous
USD Core CPI m/m
0.2%
0.0%
USD CPI m/m
0.0%
-0.2%
economy. MSCI's broadest index of Asia-Pacific
Source : Mecklai Financial
shares outside Japan .MIAPJ0000PUS extended
gains and was up 0.9 percent, while Japan's
from a year earlier, the fastest pace in seven
Nikkei stock average .N225 added 1.7 percent,
months, a tentative sign that external demand
rebounding from Tuesday's 2 percent drop.
is starting to pick up. The upbeat mood in
Asian sentiment also got a lift from the European
global equities markets sapped the safe-haven
Central Bank's plan to buy corporate bonds,
appeal of U.S. Treasuries, pushing their yields
a step that would help banks free up more of
away from last week's 17-month lows. The
their balance sheets for lending. The ECB might
yield on benchmark 10-year U.S. Treasury notes
decide on the matter as soon as December
US10YT=RR stood at 2.209 percent in Asian
with a view to begin purchases early next year,
trade, steady from Tuesday's U.S. close of 2.208
several sources familiar with the situation told
percent.
Reuters.
Currency Market
Among the regional economy update,
Japanese trade data released early Wednesday
The dollar index, which measures the US
underpinned buying in Tokyo, as it showed
currency’s strength against major currencies,
Japan's exports rose 6.9 percent in September
was trading at 85.285, down 0.02% from the
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.32
USD / INR
-
ATM Options (put/call)
0.14
Forward Rates v/s INR (Export/ Import)
October
November December
March
June
September
61.18/ 19
61.09/ 11
61.23/ 25
61.60/ 63
62.03/ 07
63.17/ 21
64.28/ 32
65.33/ 37
-
-
-
0.00/0.52
0.00/0.73
0.00/0.91
0.00/1.36
0.00/1.75
0.00/2.12
EUR / USD
1.2730
77.88/ 89
77.77/ 79
77.94/ 97
78.43/ 46
79.00/ 04
80.50/ 54
81.98/ 02
83.38/ 42
0.16
USD / JPY(100)
106.84
57.26/ 27
57.18/ 20
57.31/ 33
57.67/ 69
58.09/ 13
59.23/ 27
60.33/ 38
61.37/ 42
0.69
GBP / USD
1.6128
98.67/ 69
98.52/ 56
98.75/ 74
99.35/ 26
99.99/ 71
101.74/ 95
103.42/ 01
105.03/ 92
0.06
USD / CHF
0.9480
64.53/ 55
64.44/ 47
64.58/ 61
64.97/ 00
65.47/ 50
66.75/ 78
68.02/ 02
69.21/ 21
3.06
AUD / USD
0.8793
53.79/ 80
53.71/ 73
53.84/ 85
54.17/ 19
54.55/ 58
55.55/ 58
56.53/ 56
57.45/ 48
Source : Mecklai Financial
Wednesday 22, October 2014
Daily
previous close of 85.27. The dollar inched lower
Indonesian rupiah was trading down 0.26%,
on the day against the yen JPY= to 106.84 yen,
Thai baht fell 0.17%. Since the beginning of this
while the euro EUR= nursed its losses after
year, the rupee has gained 0.98%, while foreign
dropping on the ECB news, and edged slightly
institutional investors have bought $13.25
higher to $1.2728. The euro flirted with one-week
billion from local equity markets.
lows on Wednesday following a Reuters report
Precious Metal
that the European Central Bank is considering
buying corporate bonds, while recovery in risk
Gold held near the highest in six weeks on
appetite underpinned the dollar against the
signs of increasing demand in India, the biggest
yen. The euro traded at $1.2710, near its lowest
user after China, spurred by the Diwali festival
level since Thursday last week after having fallen
and wedding season. Bullion for immediate
0.7 percent on Tuesday. Several sources told
delivery added as much as 0.3 percent to
Reuters the ECB is considering buying corporate
$1,251.90 an ounce and was at $1,248.64 by
bonds on the secondary market and may make
11:37 a.m. in Singapore, according to Bloomberg
a final decision as soon as December with a view
generic pricing. Prices climbed to $1,255.34
to begin buying the bonds early next year.
yesterday, the highest since Sept. 10.
Most of the Asian currencies were trading
Gold rose 3.4 percent this month as equities
higher. Japanese yen was trading up 0.13%.
fell after the International Monetary Fund
The Indian rupee on Wednesday strengthened
cut its growth outlook and Federal Reserve
for the fourth consecutive session against the
policy makers said slowing foreign economies
dollar, tracking gains in local equities and Asian
were a risk to U.S. expansion. Demand in India
currencies market. The local unit opened at 61.21
noticeably strengthened before Diwali after
per dollar. At 9.06am, the home currency was
gold traded near this year’s lows in the month
trading at 61.20, up 0.20% from previous close
or so before the festival, UBS AG said.
of 61.32. The yield on India’s 10-year benchmark
“Physical demand has been strong,” Australia
bond was trading at 8.369%, compared with
& New Zealand Banking Group Ltd. wrote in a
its Tuesday’s close of 8.373%. Bond yields and
note today. Demand leading up to Diwali is
prices move in opposite directions. China
“particularly robust,” it said.
renminbi was up 0.1%, South Korean won
Diwali, the festival of lights celebrated by
rose 0.07%, Singapore dollar jumped 0.07%.
the country’s more than 800 million Hindus
tomorrow, is considered an auspicious time for
buying gold. Researcher CPM Group estimates
Market Highlights - Gold (% change)
Gold
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
(Oct’14)
MCX Gold
(Oct’14)**
Unit
Last
Prev.
day
as on October 21, 2014
WoW MoM
the holiday generates about a fifth of the
YoY
country’s annual purchases. India’s imports
$/oz
1249.1
0.24
0.7
2.1
-5.0
probably surged to 95 metric tons last month
Rs/10
gms
27450.0
0.37
#N/A
2.4
-7.9
from 15 tons to 20 tons a year earlier, the All India
$/oz
1251.0
0.56
1.4
2.7
-4.8
Gems & Jewellery Trade Federation estimates.
Rs /10
gms
27554.0
0.51
#N/A
2.4
-7.4
Gold touched $1,183.24 on Oct. 6, the lowest
this year.
Source: Angel Broking
4
Wednesday 22, October 2014
Daily
Prices have tumbled 28 percent in the past
due tomorrow. A reading above 50 indicates
two years as the Fed signaled an end to stimulus
expansion. Chinese economic growth and U.S.
measures intended to revive the U.S. economy,
home sales beat projections yesterday.
while inflation remained in check. Bullion may
Global zinc demand will exceed production
be supported after breaking above the 50-day
by 403,000 metric tons in 2014 and 366,000 tons
moving average of about $1,248 yesterday,
in 2015, the International Lead and Zinc Study
James Steel, an analyst at HSBC Securities (USA)
Group said Oct. 17. World demand will rise 5.1
Inc., wrote in a note. The move may increase
percent this year, driven mainly by increasing
buying from momentum investors, he said.
usage in China for galvanized steel sheet
Gold for December delivery declined 0.2
production, according to the group.
percent to $1,248.70 an ounce on the Comex
“Investors are refocusing on stronger
in New York, snapping a two-day advance.
fundamentals for zinc after recent declines,”
Silver for immediate delivery was at $17.4916
said Chae Un Soo, a metals trader at Korea
an ounce from $17.5145 yesterday. Platinum
Exchange Bank Futures Co. “They will closely
retreated 0.1 percent to $1,278.69 an ounce and
watch Chinese manufacturing data tomorrow
palladium rose 0.2 percent to $777.75 an ounce.
for direction.”
Zinc for delivery in three months on the
Base Metal
London Metal Exchange climbed 0.2 percent
Base metal prices traded lower on London
to to $2,215.25 a ton at 10:55 a.m. in Tokyo. The
Metal Exchange on Tuesday. Zinc rebounded
metal closed at $2,210 yesterday, the lowest
from the lowest in more than three months
since July 1. Stockpiles tracked by the LME fell
before a report projected to show sustained
for a 29th day to 719,925 tons, the lowest since
manufacturing expansion in China, the biggest
Aug. 12. Copper in London was little changed
consumer of industrial metals. The metal rose
at $6,656.75 a ton after gaining 1.7 percent
as much as 0.6 percent in London, gaining
yesterday, the most since Sept. 16. In New York,
for the first time in three days. A preliminary
futures for December delivery slid 0.3 percent
manufacturing gauge from HSBC Holdings
to $3.0205 a pound, while the contract for the
Plc and Markit Economics for October will be
same month in Shanghai climbed 1.3 percent
50.2, unchanged from the previous month,
to 47,130 yuan ($7,702) per ton. On the LME,
according to a Bloomberg survey before data
aluminum and lead declined, while nickel and
tin were unchanged.
Market Highlights - Crude Oil (% change)
as on October 21, 2014
Crude Oil
Unit
Last Prev.
day
Brent (Spot)
$/bbl
85.5
1.0
1.7
-12.1 -22.0
Nymex
Crude (Sep ’14)
$/bbl
82.8
0.1
1.2
-10.8 -16.5
ICE Brent
Crude (Oct’14)
$/bbl
MCX Crude
(Oct ’14)
WoW
MoM
YoY
Energy Market
West Texas Intermediate crude held above
$82 a barrel before a report that may show
motor-fuel inventories shrank to a two-year low
Rs/
bbl
86.2
1.0
2.9
-12.9 -21.4
5025.0
-1.1
#N/A
-12.3 -17.7
in the U.S., the biggest oil consumer. Brent was
steady in London. December futures were little
changed in New York after gaining 0.7 percent
Source: Angel Broking
5
Daily
Wednesday 22, October 2014
yesterday. Gasoline stockpiles probably fell by
million, the industry-funded API said yesterday.
1.45 million barrels to 204.2 million, according
The API in Washington collects information
to a Bloomberg News survey before data from
on a voluntary basis from operators of refineries,
the Energy Information Administration today.
bulk terminals and pipelines. The government
That would be the lowest since November 2012.
requires that reports be filed with the EIA, the
Inventories slid by 500,000 barrels through Oct.
Energy Department’s statistical arm.
17, the American Petroleum Institute reported,
News & Report
Analysis
according to Bain Energy.
Oil is paring its collapse into a bear market
as banks including BNP Paribas SA and Bank
of America Corp. predict the rout may be over.
They’re in part counting on the Organization
of Petroleum Exporting Countries to reduce
supply as the U.S. pumps the most oil in almost
three decades.
Japan exports rebound,
but economy still not out of
woods
Japan's exports rose at the fastest pace in
seven months in September as sales to Asia
“The market is consolidating,” Jonathan
picked up pace, but signs of slowing global
Barratt, the chief investment officer at Ayers
growth may hurt the trade sector's ability to
Alliance Securities in Sydney, said by phone.
recharge the world's third-biggest economy
“There is the potential for OPEC to really
and keep pressure for fresh stimulus.
disagree” on crude production targets, he said.
In particular, cooling growth in China and an
WTI for December delivery was at $82.54 a
economic chill in Europe - two key markets for
barrel in electronic trading on the New York
Japanese exporters - are adding to pressure on
Mercantile Exchange, up 5 cents, at 3:17 p.m.
the Bank of Japan and the government to step
Sydney time. The November contract expired
up policy support as the economy struggles
yesterday after rising 10 cents to $82.81. The
to recover from the pain of an April sales tax
volume of all futures traded was about 38
hike. A recent run of weak data including a
percent below the 100-day average. Front-
shocking slump in factory output prompted
month prices have decreased 16 percent this
the government to cut its economic view on
year. Brent for December settlement was up 6
Tuesday, raising speculation that it may roll out
cents at $86.28 a barrel on the London-based
fresh stimulus steps when it makes a decision
ICE Futures Europe exchange. The European
on the second-stage of the sales tax hike in
benchmark crude was at a premium of $3.78 to
December. In that context, Wednesday's trade
WTI for the same month, compared with $3.73
figures should be welcome news to Tokyo.
yesterday.
The 6.9 percent annual increase in exports in
U.S. crude stockpiles probably increased by
September was roughly in line with a 6.8 percent
3 million barrels last week, according to the
gain expected by economists, and the biggest
median estimate of nine analysts surveyed by
rise since February. It follows a 1.3 percent year-
Bloomberg before the EIA report. That would
on-year decline in August.
be a third weekly advance. Supplies rose by 1.2
Exports to Asia, which accounts for more
6
Wednesday 22, October 2014
Daily
than half of Japanese shipments, rose 8.1
BOJ expected this year and domestic demand is
percent in September from a year ago due to
weak, so the BOJ will cut its growth projections
growing demand for electronic parts and metals
at the end of this month," he said. "The bank may
from China and Vietnam, the data showed. Sales
still insist that the economy is on track to meet
to China also gained an annual 8.8 percent, but
its inflation goal, but I see it will come under
there are worries as growth in Asia's economic
pressure for fresh stimulus sooner or later." Still,
powerhouse slowed to its weakest since the
the Bank of Japan is expected to hold off from
global financial crisis in the third quarter.
launching a fresh round of stimulus in the near
Exports have disappointed for much of this
term, hoping that domestic consumption will
year because many companies have shifted
steadily pick up and help spur growth.
production overseas, tempering the benefits
President signs ordinance for
auction of coal blocks
of weaker yen. Now, renewed turbulence in
the global markets on signs of a slowing world
economy could snuff out any gains in exports,
hurt Japan's economy and complicate the
"Exports staged a rebound but they are still
lacking momentum as a trend, as Japanese
and
other
firms
okayed an ordinance for auctioning the 214
coal blocks whose allotments were cancelled by
planned sales tax hike next year.
carmakers
President Pranab Mukherjee on Tuesday
are
shifting
production abroad and global growth remains
moderate," said Takeshi Minami, chief economist
at Norinchukin Research Institute.
"Exports have not been growing the way the
the Supreme Court in September. The Cabinet
Committee on Economic Affairs had on Monday
recommended promulgation of the ordinance
to acquire the blocks to break the logjam over
the cancelled blocks, sparking fears of choked
coal supplies. Under the usual process, the
ordinance would now be sent back to the coal
7
Wednesday 22, October 2014
Daily
ministry, which would forward it to the law
bidders would have to compete in the e-auction
ministry for notification. Under the ordinance,
through reverse bidding.
the government would allot mines to public
Plan to set up steel research &
technology body
sector companies, including state electricity
boards or state government's mining ventures
without bidding. But private companies would
have to bid for blocks that would be put under
a Central pool. Only that generation companies,
steelmakers and cement manufacturers with
end-use plants would be allowed to bid for
blocks. The bidding would be done through
e-auction method with the aim of ensuring
transparency
and
maximising
bid
price.
Government would put sufficient blocks in the
pool for the private sector players.
The
enabling
ordinance
provision
would
to
also
allow
have
an
commercial
mining by private companies in future. All
proceeds from the auction would go to the
coal-bearing states. Jharkhand, Odisha, West
Bengal and Chhattisgarh would be the biggest
beneficiaries. Madhya Pradesh, Maharashtra
and Andhra Pradesh would also benefit. All
companies, except those convicted by courts,
will be allowed to participate in the auction and
there would be no right of first refusal and all
The ministry of steel will set up a “Steel
Research & Technology Mission of India”
(SRTMI) to promote collaborative research
programmes in the steel sector, minister of
steel, mines, labour & employment Narendra
Singh Tomar has said. He said SRTMI will be
steel industry’s contribution to "Make in India,
Made in India" initiative. Investment in research
8
Wednesday 22, October 2014
Daily
and development in the steel sector must
had joined hands with the state-run CMDC. The
increase from the present level of 0.2-0.3 per
NMDC would have 51 per cent stake in the JV
cent of turnover to international benchmark of
while the CMDC would enjoy 49 per cent share.
one to two per cent of turnover by the leading
According to officials, the CMDC would sell the
companies, he added. The conceptualisation of
iron-ore from its share to the steel units located
SRTMI was done by a high-level task force, set
in Chhattisgarh.
up by the steel ministry.
JSW Steel posts Q2 net profit
of Rs. 748.76 cr
NMDC-CMDC JV to mine 1
MTPA iron ore from Bailadila
JSW Steel reported a consolidated net profit
of Rs. 748.76 crore for the quarter that ended
September against a net loss of Rs. 115.55 crore
in the corresponding quarter. Analysts, on an
average, were expecting a profit of Rs. 655.08
crore on revenue of Rs. 13740.98 crore, according
to a poll conducted by Bloomberg. Sales during
the quarter rose 7 per cent to Rs. 13691.76 crore.
JSW Steel sold 3.10 million tonne of steel during
the quarter, a slight fall from 3.14 million tonne
last year, mainly because of a small drop in steel
The Joint Venture company between the
exports. The company was hit by rising exports
National Mineral Development Corporation
from China, which has flooded the world market.
(NMDC) and state-owned Chhattisgarh Mineral
Development
Corporation
(CMDC)
would
explore 1 million tonne iron ore every year from
the new deposit of the Bailadila mines in state's
Dantewada district.
Both the mining companies had formed
a Joint Venture (JV) in 2008 to develop and
explore the deposit 13 in the Bailadila mines
where the NMDC has two deposits namely
Kirandul and Bacheli. The third mine in Bailadila
that had been endowed with rich and worldclass iron ore deposit would be developed after
nearly 54 years.
In late 60s, the NMDC started the two mines
in Bailadila that shared the major share of
company's total production. For developing
JSW Steel took a charge of Rs. 189 crore during
and mining in the deposit no13, the company
the quarter.
9
Wednesday 22, October 2014
Daily
JSPL confident of being
allowed to take part in coal
block auction
10
Without disclosing the details of clarifications
sought from RINL, Sebi has said "clarifications
(are) awaited from lead manager" for the
JSPL, whose coal blocks were among those
proposed public issue. As per the latest weekly
cancelled by the Supreme Court, on Tuesday
update to the processing status of draft
exuded confidence that it will be allowed to
offer documents, Sebi has said clarifications
take part in the proposed auction of mines.
are awaited on the proposed IPO of RINL as
"Of course, we will be allowed to participate.
on October 17, 2014. However, it could not
Government has made it clear that those firms
be ascertained whether the company has
which are convicted would not be allowed
replied to Sebi's queries in the meantime.
to participate in auction process. We haven't
Sebi said that it might issue observations on
done any such thing, there is no reason," said
RINL's IPO document within 30 days from the
JSPL's MD and CEO Ravi Uppal told a television
date of receipt of satisfactory reply from the
channel. Against the backdrop of Supreme
lead merchant bankers to the clarification or
Court last month quashing allocation of 214
additional information sought from them.
coal blocks to various companies since 1993,
The regulator had received the draft offer
the Union Cabinet on Monday recommended
documents on September 19 through RINL's lead
promulgation of an Ordinance to facilitate
manager UBS Securities India Private Limited.
e-auction of coal blocks for private companies
Under the proposed IPO, the government
for captive use and allot mines directly to state
would offload 48,89,84,620 shares through
and central PSUs.
an offer for sale, of which 35 per cent will be
Sebi seeks clarification on
RINL's IPO
reserved for retail investors and 50 per cent for
Market
regulator
Sebi
has
sought
clarification from the merchant banker of
Rashtriya Ispat Nigam Ltd (RINL) regarding the
company's proposed initial public offer (IPO).
qualified institutional buyers. A discount of up
to 5 per cent on the Offer Price shall be offered
to retail investors. The IPO of state-owned steel
maker RINL is scheduled to hit the markets in
the current fiscal, and the Cabinet has already
accorded its approval for the stake sale.