Drug company Wockhardt has been ordered to pay bondholders a large sum of money. On Tuesday the Bombay high court set a schedule for Wockhardt to repay dues to holders of foreign currency convertible bonds. That means a total of Rs417.47 crore. Wockhardt will have to pay Rs80 crore by the end of the year. And another Rs30 crore by the end of January followed by an extra Rs100 crore before April and Rs50 crore in June. All dues that still remain will have to be paid up by August. The money will be in addition to a Rs115 crore Wockhardt has already paid up. The company had defaulted on a redemption of more than Rs500 crore in October of 2009, which led to legal action. On the bright side, Tuesday’s court decision clears the way for Wockhardt to complete the sale of its nutrition business to French firm Danone.
Tuesday proved to be traumatic for private lender Dhanlaxmi Bank. Shares of the bank took a severe battering after concerns about irregularities. They plunged some 24% on the BSE at one point—only to recover after the bank denied the accusations. Shares of Dhanlaxmi Bank closed 10% lower at 64.45 on a day overall markets ended flat. The rout of Dhanlaxmi stocks came after reports that the All India Bank Officers Confederation had told the Reserve Bank about alleged tampering with accounts and other problems.
In other news, Prime Minister Manmohan Singh has sounded an optimistic note about India’s economy. In a statement on Tuesday he said the country’s GDP would grow at close to 8% this fiscal. But Singh added that curbing inflation was still a challenge. Wholesale inflation in India stood at 9.78% in August.