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The Mint Report for 27 April 2010

The Mint Report for 27 April 2010
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First Published: Wed, Apr 28 2010. 12 12 AM IST
Updated: Wed, Apr 28 2010. 12 12 AM IST
The government could revolutionize the way it reaches out to investors during PSU share sales. It has finally decided to pay commissions to brokers who sell those shares to retail investors and high net worth individuals. Brokers will get a 35 basis points commission for roping in retail investors and 15 basis points for every high net worth individual. The government will bear the expense of paying brokers.
PSU stake sales could also get more lucrative for some financial firms. The government has decided to put an end to the zero commission structure for investment bankers handling the public floats of state-run firms.
Companies wanting to run duty free shops at Hyderabad airport may have to pay steep fees. The GMR Group, which runs the airport, will invite bids for duty free shop operators shortly. And its terms include a one-time fee of Rs30 crore that a company will have to pay within days of winning a bid. Companies bidding for the rights will have to share revenues with GMR for 15 years. The contract will go to the firm that pledges to share the highest portion of its revenue. GMR started looking for a new operator after the existing Nuance Group said it was exiting the venture by the end of May.
Maruti may be pitching new models every year, but the novelty is coming at a price. The company’s royalty payments during the last year have shot up 47% to Rs 1,001 crore. Maruti’s royalty money goes to its parent Suzuki. Technical fees on new car models are usually higher.
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First Published: Wed, Apr 28 2010. 12 12 AM IST
More Topics: Mint Report | Government | Maruti | Brokers | PSU |