Current Affairs May 2013
Usha Ananthasubramanian becomes the first Chief of Bharatiya Mahila Bank – India’s first all women Bank
The Union Government appointed Usha Ananthasubramanian as the Chairperson and Managing Director (CMD) of public sector Bharatiya Mahila Bank (BMB), the first women bank of India.
Prior to her appointment in BMB, she was an Executive Director with Punjab National Bank (PNB).
About Bharatiya Mahila Bank (BMB)
- Objective: Focus on the banking needs of the women and promote economic empowerment. It will also address the gender related issues and will be helpful in financial inclusion.
- India’s first all-women public sector bank; expected to be formally launched on November 19, 2013.
- First 6 branches at Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati.
- Government approved Rs 1,000-crore seed capital for the bank in Budget 2013-14
- Headquarter of Bharatiya Mahila Bank: Delhi.
- CMD: Usha Ananthasubramanian
Providing a significant impetus to the government’s disinvestment programme to raise Rs.40,000 crore in this fiscal (2013-14), Cabinet Committee on Economic Affairs (CCEA) gave its approval for the Follow-on Public Offer (FPO) of Power Grid Corporation of India Limited (PGCIL) to raise about Rs.7,500 crore.
PGCIL will issue its 17% stake through FPO. This includes 13% fresh equity and 4% stake sale by the government. The government will sell 18.51 crore shares in the public sector company.
The company will issue fresh 60.18 crore shares through the offer. At current market valuations, the FPO is likely to raise close to Rs.7,500 crore. After FPO, the government shareholding in the company will reduce to 57.89% from 69.42%. The company may fetch close to Rs.5,700 crore while the government will get an estimated Rs.1,700 crore.
What is Follow-on Public Offer (FPO)?
It is an issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.
How FPO is different from IPO?
FPOs should not be confused with IPOs, as IPOs are the Initial Public Offering of equity to the public while FPOs are supplemantary issues made after a company has been established on an exchange.
Types of FPOs:
It can be of two types or mixture of the two:
- Dilutive FPO
How FPO is different from Secondary Offering?
A secondary offering is an offering of securities by a shareholder of the company (as opposed to the company itself, which is a primary offering). A follow on offering is preceded by release of prospectus similar to IPO: Follow-on Public Offer (FPO).
A secondary market offering is a registered offering of a large block of a security that has been previously issued to the public. The blocks being offered may have been held by large investors or institutions, and proceeds of the sale go to those holders, not the issuing company. A secondary offering is not dilutive to existing shareholders since no new shares are created. The proceeds from the sale of the securities do not benefit the issuing company in any way.
William C Lowe (72), who pioneered the conception and manufacturing of IBM’s first personal computer, passed away in Lake Forest, Illinois.
William C Lowe:
Lowe joined IBM in 1962, when he finished college with a physics degree. In 1980, William C Lowe, who was a lab director at that time, proposed the idea that IBM should develop a personal computer that could be mass marketed. He persuaded his bosses that he could set up a team to build a personal computer in a year. Lowe and his team developed the IBM PC by adopting open architecture, using parts and software from outside vendors, including Microsoft. In 1981, the IBM 5150 personal computer was launched, several years after Apple had brought its first computer to market.
Lowe went on to serve as an IBM vice president and president of its entry systems division, which oversaw the development and manufacturing of IBM’s personal computers and other businesses. He left the company in 1988 to work for Xerox, and later became president of Gulfstream Aerospace Corp.
With the aim to contain the dwindling population of Parsis in India, the Jiyo Parsi scheme has been launched by the Ministry of Minority Affairs, Government of India.
What is Jiyo Parsi scheme?
Jiyo parsi scheme has the objective of reversing the declining trend of Parsi population by adopting scientific protocol and structured interventions, stabilize the Parsi population and increase the population of Parsis in India.
Key features of the Jiyo Parsi scheme:
- 100% financed by Ministry of Minority Affairs, Government of India.
- Medical interventions under Standard Medical protocols in select hospitals/clincs.
- Confidentiality of the patients to be given utmost importance.
Who will be the target group under Jiyo Parsi scheme?
The scheme is designed only for Parsi community. It will be available for Parsi married couples of child bearing age who seek assistance and adults/young men/women/adolescent boys/girls for diagnosis of diseases.