The country’s three leading commodity exchanges are in the final stages of negotiations with their global counterparts for a possible stake sale even as the government is set to announce foreign investment guidelines for comexes in the next few days.
While the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (Nymex) are expected to pick up 5 per cent stake each - the maximum to be allowed to a single entity under the policy - in the Multi Commodity Exchange of India (MCX), the US-based Intercontinental Exchange (ICE) is in talks with the National Commodity & Derivatives Exchange (NCDEX).
Exchanges are getting the highest valuations in the global marketplace and sources close to the developments said Nymex may buy stake in MCX based on an enterprise value of $1 billion. The Ahmedabad-based National Multi-Commodity Exchange (NMCE) is also looking at a strategic partner and is in talks with various international and domestic exchanges. The Bombay Stock Exchange is believed to be one of the contenders.
Read more in The Business Standard article.
Saturday, April 14, 2007
LKB merger in doldrums
The merger of Kochi based Lord Krishna Bank (LKB) with the Centurion Bank of Punjab (CboP) is in doldrums, as the case pending with the Kerala High Court is likely to prolong further.
Umesh Pai, a shareholder of LKB and the original petitioner, had challenged the resolutions and proceedings of the bank’s annual general meeting before the High Court. Justice M N Krishnan has posted the case for further hearing on 25th May.
Meanwhile, the scheme of amalgamation approved by the boards of both the banks and the AGM will expire by 30th April, 2007. The boards recently extended the scheme for a further period of 3 months effective from 1st May, 2007.
Legal sources have opined that the extension would not be valid unless approved by a fresh AGM. But sources at the bank said that the last AGM had given prior approval to extend the scheme unless it were not to be in effect by the deadline.
Since the merger issue is under judicial scrutiny, RBI has not responded to the Kerala chief minister, V.S Achuthanandan’s letter citing serious concerns about the merger of LKB with CboP.
Umesh Pai, a shareholder of LKB and the original petitioner, had challenged the resolutions and proceedings of the bank’s annual general meeting before the High Court. Justice M N Krishnan has posted the case for further hearing on 25th May.
Meanwhile, the scheme of amalgamation approved by the boards of both the banks and the AGM will expire by 30th April, 2007. The boards recently extended the scheme for a further period of 3 months effective from 1st May, 2007.
Legal sources have opined that the extension would not be valid unless approved by a fresh AGM. But sources at the bank said that the last AGM had given prior approval to extend the scheme unless it were not to be in effect by the deadline.
Since the merger issue is under judicial scrutiny, RBI has not responded to the Kerala chief minister, V.S Achuthanandan’s letter citing serious concerns about the merger of LKB with CboP.
ICRA zooms 141% on Day 1
Shares of ICRA, a credit rating agency part-owned by Moody's Investors Service, rose by 141% on its debut day on the markets, becoming the fourth biggest riser on the listing day.
ICRA, which was listed at Rs 525 per share on the Bombay Stock Exchange - 60% premium from the issue price of Rs 325, ended the day at Rs 797.60. The top three biggest gainers on the listing day were Tantia Construction (220% increase), Nissan Copper (230%) and Cambridge Technologies (163%).
Moody's shareholding at 28.51% is valued at Rs 204.19 crore at the current prices while State Bank of India's stake of 9.99% is worth Rs 80 crore.
New Delhi-based ICRA raised Rs 39.42 crore ($9.2 million) selling about 1.2 million shares at Rs 330 apiece.Investors of ICRA, including IFCI, the administrator of the Unit Trust of India and the State Bank of India, sold their stakes in the initial sale.
Domestic financial institution IFCI sold its entire 21% stake (1.86 million shares), while Unit Trust sold 7,00,000 shares (7.95% stake) and State Bank of India offloaded 20,500 shares, equivalent to 1.6%, out of its 11.6% holding in ICRA.
ICRA, which was listed at Rs 525 per share on the Bombay Stock Exchange - 60% premium from the issue price of Rs 325, ended the day at Rs 797.60. The top three biggest gainers on the listing day were Tantia Construction (220% increase), Nissan Copper (230%) and Cambridge Technologies (163%).
Moody's shareholding at 28.51% is valued at Rs 204.19 crore at the current prices while State Bank of India's stake of 9.99% is worth Rs 80 crore.
New Delhi-based ICRA raised Rs 39.42 crore ($9.2 million) selling about 1.2 million shares at Rs 330 apiece.Investors of ICRA, including IFCI, the administrator of the Unit Trust of India and the State Bank of India, sold their stakes in the initial sale.
Domestic financial institution IFCI sold its entire 21% stake (1.86 million shares), while Unit Trust sold 7,00,000 shares (7.95% stake) and State Bank of India offloaded 20,500 shares, equivalent to 1.6%, out of its 11.6% holding in ICRA.
Danone offers Wadia $ 1.34 mn to use Tiger brand
French dairy major Groupe Danone has offered to pay the Wadia Group ¤1 million ($1.34 million) as compensation to use its Tiger brand in international markets.According to a report in the Financial Times, Danone has also asked for a five-year exclusive licensing agreement in countries like Singapore, Malaysia and Indonesia.
Meanwhile, a television channel reported that the commerce ministry had come around to the view that Groupe Danone had violated Press Note 1 regulations, which make it mandatory for a foreign company to take a no-objection certificate from its Indian partner if it is investing on its own in the same business.
Nusli Wadia and Danone have equal stakes in Britannia. Wadia had objected to Danone’s investment in nutraceutical firm Avesthagen. The Wadia group had moved the Bombay High Court and also lodged a complaint with the Union commerce ministry.
Read more in The Business Standard article.
Meanwhile, a television channel reported that the commerce ministry had come around to the view that Groupe Danone had violated Press Note 1 regulations, which make it mandatory for a foreign company to take a no-objection certificate from its Indian partner if it is investing on its own in the same business.
Nusli Wadia and Danone have equal stakes in Britannia. Wadia had objected to Danone’s investment in nutraceutical firm Avesthagen. The Wadia group had moved the Bombay High Court and also lodged a complaint with the Union commerce ministry.
Read more in The Business Standard article.
Global PE funds set to hit the road with $1.5 b kitty
Global private equity funds are set to drive on Indian roads. At least half a dozen PE firms, including Goldman Sachs, Lehman Brothers, Citigroup and few Gulf-based funds are keen on making a foray into the domestic road sector. Experts say funds worth $1-1.5 billion may be invested in the next 6-8 months. This would be the first time PE investments of such magnitude would flow into the sector.
Goldman Sachs recently picked up 5% stake in IL&FS Transportation Networks Limited (ITNL) for a consideration of $20 million. ITNL is a vehicle promoted by IL&FS to spearhead its initiative in the roads sector.Industry experts say PE firms are in talks for investing in public-private partnerships (PPP) projects in which revenue stream has been fixed and identified.
Construction companies are in discussion with PE funds for jointly investing in road projects through the SPV route. Investment bankers say deals in southern and western parts of India are being discussed and some of these are in the range of $50-80 million. Several Gulf-based funds which have global expertise in managing road projects are also learnt to be interested in picking equity in Indian road projects.
Read more in The Economic Times article.
Goldman Sachs recently picked up 5% stake in IL&FS Transportation Networks Limited (ITNL) for a consideration of $20 million. ITNL is a vehicle promoted by IL&FS to spearhead its initiative in the roads sector.Industry experts say PE firms are in talks for investing in public-private partnerships (PPP) projects in which revenue stream has been fixed and identified.
Construction companies are in discussion with PE funds for jointly investing in road projects through the SPV route. Investment bankers say deals in southern and western parts of India are being discussed and some of these are in the range of $50-80 million. Several Gulf-based funds which have global expertise in managing road projects are also learnt to be interested in picking equity in Indian road projects.
Read more in The Economic Times article.
Friday, April 13, 2007
MTNL may bid for 26% in Telkom Kenya
The Kenyan government had recently invited bids for the 26% stake in the state-owned landline company, which has about 300,000 customers and an average revenue per user of about $40 per month. The successful bidder will be announced on September 25 and the dateline for signing the deal is October 17. Kenya also plans to sell additional 34% stake in Telkom Kenya through an IPO after identifying a strategic partner for the company.
MTNL, which offers both fixed line services in Mumbai and Delhi, plans to bid for 26% equity stake in Telkom Kenya. According to MTNL sources, the company was planning to bid for the 26% stake for Telkom Kenya as it had lost the bid to acquire a mobile license in the African country last year.
The IPO date will be finalised only after consultations with the successful bidder for the 26% stake. The International Finance Corporation is the transaction advisor to the Kenyan government for the deal.
Read more in The Economic Times article.
MTNL, which offers both fixed line services in Mumbai and Delhi, plans to bid for 26% equity stake in Telkom Kenya. According to MTNL sources, the company was planning to bid for the 26% stake for Telkom Kenya as it had lost the bid to acquire a mobile license in the African country last year.
The IPO date will be finalised only after consultations with the successful bidder for the 26% stake. The International Finance Corporation is the transaction advisor to the Kenyan government for the deal.
Read more in The Economic Times article.
BSE to sell 41% stake for $ 384mn
The Bombay Stock Exchange (BSE) is selling 41% stake to 20 investors, including domestic and foreign financial institutions, for about $ 384 milliion - the biggest private placement of equity ever in the country.
Insurance behemoth Life Insurance Corporation of India (LIC) and State Bank of India (SBI) are among the investors though no confirmation was available from the exchange.BSE held its board meeting and extra-ordinary meeting (EGM) today to complete the demutualisation process. The deadline for completing the 51% stake held by broker- members in BSE, Asia's oldest exchange, is mid-May this year.
Recently, it sold 5% stake each to Franfurt-based Deutsche Boerse AG and Singapore Exchange at Rs 5,200 per share. The deal valued the exchange at $800 million.
Read more in The Business Standard article.
Insurance behemoth Life Insurance Corporation of India (LIC) and State Bank of India (SBI) are among the investors though no confirmation was available from the exchange.BSE held its board meeting and extra-ordinary meeting (EGM) today to complete the demutualisation process. The deadline for completing the 51% stake held by broker- members in BSE, Asia's oldest exchange, is mid-May this year.
Recently, it sold 5% stake each to Franfurt-based Deutsche Boerse AG and Singapore Exchange at Rs 5,200 per share. The deal valued the exchange at $800 million.
Read more in The Business Standard article.
Bennet Coleman acquires 17% in LLIS
Bennet Coleman & Co Limited (BCCL) has acquired close to 17% stake in Bangalore-based Leisure & Lifestyle Information Services (LLIS), which owns the travel community portal — Holiday IQ.
The investments by BCCL will constitute both equity and convertibles. This will be the second round of institutional funding for Holiday IQ as it has earlier received investments from Erasmic Ventures and Vireet Investments.
According to Holiday IQ CEO Hari Nair, the portal serves as a neutral and independent information provider on various tourist destinations. The portal was set up to fill the multiple gaps in sourcing good quality information in the leisure travel sector, Mr Nair added.
Read more in The Economic Times article.
The investments by BCCL will constitute both equity and convertibles. This will be the second round of institutional funding for Holiday IQ as it has earlier received investments from Erasmic Ventures and Vireet Investments.
According to Holiday IQ CEO Hari Nair, the portal serves as a neutral and independent information provider on various tourist destinations. The portal was set up to fill the multiple gaps in sourcing good quality information in the leisure travel sector, Mr Nair added.
Read more in The Economic Times article.
Infosys Q4 net profit jumps 69%, beats f'cast
Leading software services provider, Infosys Technologies today posted 69.27 per cent increase in net profit at Rs 1,124 crore for the quarter ended March 31, as compared to Rs 664 crore for the year-ago period.
The total income of the company increased by 43.38 per cent to Rs 3,675 crore for the fourth quarter ended March 31, from Rs 2,563 crore for the corresponding quarter a year ago, Infosys informed the BSE.
Highlights of Infy's Q4 show
1. Infosys declares final dividend of Rs 6.5 per share
2. Infosys Q4 net profit Rs 1124 cr versus 983 cr Q-o-Q
3. EPS growth seen at 22.6%
4. Infosys projects EPS at Rs 80.29-81.58 for this fiscal
5. 4 Offshore salary hike projected at 12-18%
6. Infosys adds 34 new clients, 3992 employees worldwide
7. IP Global Services to show strong growth: Nilekani
8. Infosys factors Rupee value at 43.10 visa-viz dollar
9. Infosys projects revenue growth at Rs 17300 cr for 07-08
For the year ended March 31, the company posted a net profit after tax & exceptional items of Rs 3,783 crore as compared to Rs 2,421 crore a year ago.The total income has increased to Rs 13,524 crore for the year ended March 31 from Rs 9,172 crore in the year-ago period.
The company declared a final dividend of Rs 6.50 on shares of Rs 5 each (130 per cent).
Read more in The Economic Times article.
The total income of the company increased by 43.38 per cent to Rs 3,675 crore for the fourth quarter ended March 31, from Rs 2,563 crore for the corresponding quarter a year ago, Infosys informed the BSE.
Highlights of Infy's Q4 show
1. Infosys declares final dividend of Rs 6.5 per share
2. Infosys Q4 net profit Rs 1124 cr versus 983 cr Q-o-Q
3. EPS growth seen at 22.6%
4. Infosys projects EPS at Rs 80.29-81.58 for this fiscal
5. 4 Offshore salary hike projected at 12-18%
6. Infosys adds 34 new clients, 3992 employees worldwide
7. IP Global Services to show strong growth: Nilekani
8. Infosys factors Rupee value at 43.10 visa-viz dollar
9. Infosys projects revenue growth at Rs 17300 cr for 07-08
For the year ended March 31, the company posted a net profit after tax & exceptional items of Rs 3,783 crore as compared to Rs 2,421 crore a year ago.The total income has increased to Rs 13,524 crore for the year ended March 31 from Rs 9,172 crore in the year-ago period.
The company declared a final dividend of Rs 6.50 on shares of Rs 5 each (130 per cent).
Read more in The Economic Times article.
Thursday, April 12, 2007
TCS looks at foreign listing
Tata Sons, the holding company of the Tata group, is considering a $1 billion-plus (over Rs 4,300 crore) overseas equity sale in Tata Consultancy Services (TCS) this year to fund acquisitions of other entities.
Banking sources said the equity offer may take place in six months and include a fresh share offer as well. The group is examining the pros and cons of listing on the major exchanges, including London, Luxembourg and New York stock exchanges.
A listing on the New York Stock Exchange, where other software giants – Infosys, Wipro and Satyam — are listed, gets immediate attention from global brokerages. But the flip side is the time-consuming compliance norms under the Sarbanes-Oxley regulations.
Bankers said raising funds through an equity sale in TCS makes sense as Tata Sons holds a 78.35 per cent stake in the country’s largest software company. As a policy, Tata Sons chips in with funds whenever any group entity makes a major acquisition.
For instance, Tata Sons is expected to contribute to Tata Steel’s $12.15 billion purchase of Anglo-Dutch steel company Corus, although a major chunk of the money will be raised through debt.
Read more in The Business Standard article.
Banking sources said the equity offer may take place in six months and include a fresh share offer as well. The group is examining the pros and cons of listing on the major exchanges, including London, Luxembourg and New York stock exchanges.
A listing on the New York Stock Exchange, where other software giants – Infosys, Wipro and Satyam — are listed, gets immediate attention from global brokerages. But the flip side is the time-consuming compliance norms under the Sarbanes-Oxley regulations.
Bankers said raising funds through an equity sale in TCS makes sense as Tata Sons holds a 78.35 per cent stake in the country’s largest software company. As a policy, Tata Sons chips in with funds whenever any group entity makes a major acquisition.
For instance, Tata Sons is expected to contribute to Tata Steel’s $12.15 billion purchase of Anglo-Dutch steel company Corus, although a major chunk of the money will be raised through debt.
Read more in The Business Standard article.
L&T Info looking at buys to boost banking fin biz
L&T Infotech, the IT arm of the engineering major L&T, has drawn up an inorganic growth strategy to boost its revenues from the BFSI segment and foray into the lucrative telecom billing and services space.
The firm will look for targets that are $ 50 million or lesser in revenues, but the overall kitty for its acquisitions could swell up to $ 150 million.
BFSI is the largest vertical for all the IT services firms. However, it accounts only for about 25% of revenues for L&T Infotech. In BFSI, the company is especially keen on investment banking although it is open to other opportunities as well. Currently, manufacturing accounts for 50% of the firm’s revenues, and the telecom vertical for another 25%.
In December 2006, L&T Info had acquired the US-based GDA Technologies an electronics design firm with over 350 employees. Its current acquisition strategy will also be focused on the US, and Magapu said the company would prefer to acquire a firm without an India footprint because it could add value with its offshore presence.
The firm will look for targets that are $ 50 million or lesser in revenues, but the overall kitty for its acquisitions could swell up to $ 150 million.
BFSI is the largest vertical for all the IT services firms. However, it accounts only for about 25% of revenues for L&T Infotech. In BFSI, the company is especially keen on investment banking although it is open to other opportunities as well. Currently, manufacturing accounts for 50% of the firm’s revenues, and the telecom vertical for another 25%.
In December 2006, L&T Info had acquired the US-based GDA Technologies an electronics design firm with over 350 employees. Its current acquisition strategy will also be focused on the US, and Magapu said the company would prefer to acquire a firm without an India footprint because it could add value with its offshore presence.
India breaks into top 10 M&A league
India became the world’s eighth largest market in the first quarter of 2007 — an improvement over the 11th rank in calendar year 2006. According to Alan S Alpert, managing partner (M&A transaction services), Deloitte Tax LLP, there has been a substantial increase in M&A in India. Inbound M&A (into India) and local M&A have been growing.
The Vodafone Hutch accounted for the majority of the gains in the first quarter. Also the number of M&A transactions by Indian companies overseas has gone up substantially. The US and the UK continues to be the number one and two M&A market. According to Thomson Financial, in the first quarter India saw inbound and local deals of $25.581 billion.
In the first quarter India pipped markets like France (2006: $76.8 billion, 2007: $24.79 billion), Italy (2006: $17.40 billion, 2007: $14.79 billion), Luxembourg (2006: $34.65 billion, 2007: $2.5 billion). According to Mr Alpert, India has now surpassed China and South Korea in the Asian M&A league table and is behind only behind Japan.
He added that the global M&A saw record levels of deals worth $3.7 trillion in 2006. However, there has been a shift in the participants in the M&A market. Around three to four years ago private equity players contributed to around 10% of the deals. In 2006 however, this has now changed to 25%. PEs have been gaining force on the back of liquidity and a stable economy.
That could be the reason why players like Deloitte have launched a dedicated private equity practice here — Deloitte Corporate Finance Services India. The team in India is led by managing director Sandeep Gill and director Bomal Modi. Both were earlier part of the corporate finance practice of Deloitte & Touche LLP In London.
The Vodafone Hutch accounted for the majority of the gains in the first quarter. Also the number of M&A transactions by Indian companies overseas has gone up substantially. The US and the UK continues to be the number one and two M&A market. According to Thomson Financial, in the first quarter India saw inbound and local deals of $25.581 billion.
In the first quarter India pipped markets like France (2006: $76.8 billion, 2007: $24.79 billion), Italy (2006: $17.40 billion, 2007: $14.79 billion), Luxembourg (2006: $34.65 billion, 2007: $2.5 billion). According to Mr Alpert, India has now surpassed China and South Korea in the Asian M&A league table and is behind only behind Japan.
He added that the global M&A saw record levels of deals worth $3.7 trillion in 2006. However, there has been a shift in the participants in the M&A market. Around three to four years ago private equity players contributed to around 10% of the deals. In 2006 however, this has now changed to 25%. PEs have been gaining force on the back of liquidity and a stable economy.
That could be the reason why players like Deloitte have launched a dedicated private equity practice here — Deloitte Corporate Finance Services India. The team in India is led by managing director Sandeep Gill and director Bomal Modi. Both were earlier part of the corporate finance practice of Deloitte & Touche LLP In London.
Three firms in race for RComm's $1.5 bn deal
Telephony major Reliance Communications is believed to have short-listed three global IT companies – IBM, EDS and T-Systems – for its $1.5 billion outsourcing contract.
A high-level internal committee of the Anil Ambani group company is expected to finalise one of the vendors for the 10-year deal in 6-8 weeks, sources close to the development said today. A RComm spokesperson refused to divulge the names of the short-listed vendors. He, however, admitted that the company was in talks with leading IT services vendors, which include large global players.
US IT major IBM has a strong presence in India and had recently announced its intention of focusing on IT outsourcing contracts from the country. If finalised, this would be the second major contract for the company as the Big Blue had earlier bagged a $800-million outsourcing contract from GSM major Idea Cellular.
Texas-based Electronics Data Systems, popularly known as EDS, is a market leader in the US and Europe and has been providing IT services and support for the last 40 years. T-Systems, the subsidiary of German telecom major Deutsche Telekom, is also one of the major players in the IT sector with expertise in managing IT requirements for telecom companies.
Earlier, RComm’s Internal Committee had decided to outsource its information technology requirements for 10 years to a technology service provider. The company was planning to outsource its wireless, enterprise and international business, under a $1.5 billion deal that was considered as one of the biggest in the Indian telecom outsourcing sector.
The move is expected to reduce the company’s projected IT spends “significantly” and also enable it to remain asset light. Industry analysts opined that the company would save 20 per cent by outsourcing and would also enable it to concentrate on its core competencies.
RComm had earlier earmarked a capital expenditure of $2.5 billion for this financial year that would be spread across its three business segments – personal, enterprise and international.
RComm’s mobile business has a subscriber base of close to 30 million, growing by over a million subscribers every month for the last 10 months. The company also has a 50 per cent plus market share in the enterprise market with around 1,000 top corporates in its client list.
A high-level internal committee of the Anil Ambani group company is expected to finalise one of the vendors for the 10-year deal in 6-8 weeks, sources close to the development said today. A RComm spokesperson refused to divulge the names of the short-listed vendors. He, however, admitted that the company was in talks with leading IT services vendors, which include large global players.
US IT major IBM has a strong presence in India and had recently announced its intention of focusing on IT outsourcing contracts from the country. If finalised, this would be the second major contract for the company as the Big Blue had earlier bagged a $800-million outsourcing contract from GSM major Idea Cellular.
Texas-based Electronics Data Systems, popularly known as EDS, is a market leader in the US and Europe and has been providing IT services and support for the last 40 years. T-Systems, the subsidiary of German telecom major Deutsche Telekom, is also one of the major players in the IT sector with expertise in managing IT requirements for telecom companies.
Earlier, RComm’s Internal Committee had decided to outsource its information technology requirements for 10 years to a technology service provider. The company was planning to outsource its wireless, enterprise and international business, under a $1.5 billion deal that was considered as one of the biggest in the Indian telecom outsourcing sector.
The move is expected to reduce the company’s projected IT spends “significantly” and also enable it to remain asset light. Industry analysts opined that the company would save 20 per cent by outsourcing and would also enable it to concentrate on its core competencies.
RComm had earlier earmarked a capital expenditure of $2.5 billion for this financial year that would be spread across its three business segments – personal, enterprise and international.
RComm’s mobile business has a subscriber base of close to 30 million, growing by over a million subscribers every month for the last 10 months. The company also has a 50 per cent plus market share in the enterprise market with around 1,000 top corporates in its client list.
Wednesday, April 11, 2007
Tatas plan Rs 3500cr rights issue for Corus
Tata Steel is likely to launch a rights issue of nearly Rs 3,500 crore to part-finance its $12.15 billion acquisition of Anglo-Dutch steelmaker Corus Group, payment for which is to be made tomorrow. The issue may be priced at around Rs 400 a share, against today’s close of Rs 495.55 on the Bombay Stock Exchange.
Sources close to the situation said the Tata Steel board is slated to discuss the issue at its meeting on April 17. The proportion of the issue — how many rights shares to be given against existing shares—could not be ascertained. When contacted, a Tata Steel spokesperson declined comment.
The Tata Steel stock has risen 16.84 per cent in the past one week, anticipating such a move from the company. The BSE Sensex has risen 4.5 per cent in the period. In the past one month, the stock has gone up by 14.23 per cent, against the Sensex’s rise of 2.2 per cent.
Read more in The Business Standard article
Sources close to the situation said the Tata Steel board is slated to discuss the issue at its meeting on April 17. The proportion of the issue — how many rights shares to be given against existing shares—could not be ascertained. When contacted, a Tata Steel spokesperson declined comment.
The Tata Steel stock has risen 16.84 per cent in the past one week, anticipating such a move from the company. The BSE Sensex has risen 4.5 per cent in the period. In the past one month, the stock has gone up by 14.23 per cent, against the Sensex’s rise of 2.2 per cent.
Read more in The Business Standard article
Hathway buys 39% in ING Vysya MF
Hathway Investments, a company owned by the Rajan Raheja group, has bought out ING Vysya Bank’s entire 39% stake in ING Vysya Mutual Fund for an undisclosed sum.
Following the deal, ING will hold 42.5% in the fund, to be renamed ING Mutual Fund, Hathway 39%, and existing Indian shareholder—Kirti Equities—will retain 18.5%. The asset management company’s (AMC) total assets under management as on March 31, ‘07, were close to Rs 3,630 crore.
For the year ended March ‘06, the AMC had reported a net loss of Rs 21 crore. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs 300 crore from the sale of its stake.
Read more in The Times of India article.
Following the deal, ING will hold 42.5% in the fund, to be renamed ING Mutual Fund, Hathway 39%, and existing Indian shareholder—Kirti Equities—will retain 18.5%. The asset management company’s (AMC) total assets under management as on March 31, ‘07, were close to Rs 3,630 crore.
For the year ended March ‘06, the AMC had reported a net loss of Rs 21 crore. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs 300 crore from the sale of its stake.
Read more in The Times of India article.
Venture capitalists line up for online biz
Indian start-ups that use the Internet and mobile phones to sell their products and services are attracting large funds from venture capitalists, raising the spectre of a bubble similar to the one that destroyed the budding Internet commerce industry at the turn of the millennium.
In 2006, venture capitalists (VCs) struck 30 deals worth a total of $200 million; money they believe would multiply as Internet and mobile phones proliferate in the world's second fastest growing major economy.
In comparison, VCs invested a total of only $36 million in 7 deals in 2005. The trend has continued into 2007 with five deals worth $13 million already sealed in the first four months in the mobile and Internet sector alone, according to Venture Intelligence, a Chennai-based research service focussed on private equity and venture capital activity.
Read more in The Times of India article.
In 2006, venture capitalists (VCs) struck 30 deals worth a total of $200 million; money they believe would multiply as Internet and mobile phones proliferate in the world's second fastest growing major economy.
In comparison, VCs invested a total of only $36 million in 7 deals in 2005. The trend has continued into 2007 with five deals worth $13 million already sealed in the first four months in the mobile and Internet sector alone, according to Venture Intelligence, a Chennai-based research service focussed on private equity and venture capital activity.
Read more in The Times of India article.
Sharekhan may sell 15% to PE players
Sharekhan, the retail broking arm of the Mumbai-based SSKI Group, is raising funds from private equity (PE)players to finance its expansion.A few private equity players have already started due diligence on Sharekhan, which may dilute close to 15 per cent stake. Shripal Morakhia, promoter of Sharekhan, said, “We are planning to dilute close to 15 per cent stake. This will result in a dilution of stakes of all existing shareholders.”
He, however, refused to divulge the amount the company was planning to raise.At present, the Morakhias hold 37 per cent stake in Sharekhan, while its employees hold 15 per cent and the rest is held by General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India.
In April last year, General Atlantic invested about Rs 144 crore ( $31 million) in the company through a combination of primary and secondary investments through buying out the entire shareholding of First Carlyle Ventures.
Sharekhan is looking at expanding its presence in the country through organic growth. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.
He, however, refused to divulge the amount the company was planning to raise.At present, the Morakhias hold 37 per cent stake in Sharekhan, while its employees hold 15 per cent and the rest is held by General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India.
In April last year, General Atlantic invested about Rs 144 crore ( $31 million) in the company through a combination of primary and secondary investments through buying out the entire shareholding of First Carlyle Ventures.
Sharekhan is looking at expanding its presence in the country through organic growth. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.
Suzlon ups REpower offer to e150/share
Suzlon Energy has upped the ante in the battle for REpower by increasing its offer to e150, or 7.14% higher than French giant Areva’s e140-per-share offer. The Tulsi Tanti company announced on Tuesday that its foreign joint venture with Martifer—Suzlon Wind Energie—raised the takeover offer for REpower Systems after its subsidiary purchased 7.7% in the German firm for that price.
“The decision to increase the offer was taken after careful analysis and review of potential synergies that Suzlon can contribute to REpower, given our fully integrated business and control over component level technology and its integration with turbine technology,” Suzlon CMD Tulsi Tanti said.
A communiqué from Suzlon said SE Drive Technik, a company acting in concert with the bidding company, purchased REpower shares for up to e150 per share over the Easter weekend.
Read more in The Economic Times article.
“The decision to increase the offer was taken after careful analysis and review of potential synergies that Suzlon can contribute to REpower, given our fully integrated business and control over component level technology and its integration with turbine technology,” Suzlon CMD Tulsi Tanti said.
A communiqué from Suzlon said SE Drive Technik, a company acting in concert with the bidding company, purchased REpower shares for up to e150 per share over the Easter weekend.
Read more in The Economic Times article.
Ghosh, Singh can modify deal with Vodafone
Hutchison Telecom International (HTIL) and Vodafone have worked out a revised deal with Max India chairman Analjit Singh and Hutchison Essar (HEL) CEO Asim Ghosh on the valuation of their holdings in HEL.
As per the deal, which has been communicated to the government, the shares of Mr Singh and Mr Ghosh have been valued at a minimum of $226.25 million and $164.51 million, respectively, subject to HEL’s equity valuation being $25 billion or less.
In case the valuation of Hutchison Essar crosses $25 billion at the time the options on these shares are exercised, the value of these shares will be calculated on the basis of a pre-agreed formula devised by Goldman Sachs.
Mr Singh’s investment company is called ND Callus while Mr Ghosh’s investment company is known as Centrino.
It is also understood that Mr Singh and Mr Ghosh may work out a modified agreement with Vodafone. The put option for Mr Singh and Mr Ghosh may become exercisable after five years instead of 10 years envisaged in the original agreement with HTIL. However this could not be confirmed, and sources close to one of them denied this.
Read more in The Economic Times article.
As per the deal, which has been communicated to the government, the shares of Mr Singh and Mr Ghosh have been valued at a minimum of $226.25 million and $164.51 million, respectively, subject to HEL’s equity valuation being $25 billion or less.
In case the valuation of Hutchison Essar crosses $25 billion at the time the options on these shares are exercised, the value of these shares will be calculated on the basis of a pre-agreed formula devised by Goldman Sachs.
Mr Singh’s investment company is called ND Callus while Mr Ghosh’s investment company is known as Centrino.
It is also understood that Mr Singh and Mr Ghosh may work out a modified agreement with Vodafone. The put option for Mr Singh and Mr Ghosh may become exercisable after five years instead of 10 years envisaged in the original agreement with HTIL. However this could not be confirmed, and sources close to one of them denied this.
Read more in The Economic Times article.
Tuesday, April 10, 2007
Financial Tech launches 'Tickerplant'
With a view to provide exchange feeds for Indian and international equities, commodities, forex and precious market rates and news, Financial Technologies India Ltd (FT) has launched a group company — Tickerplant.
Tickerplant, aims to create a digital infrastructure to disseminate real-time, low-latency ticker feed to over 100 market segments across the globe over a period of time, Financial Technologies informed the Bombay Stock Exchange.
The goal is to level the playing field for the smallest Indian investors by bringing 'Wall Street to the Man on the Street'.
Tickerplant, aims to create a digital infrastructure to disseminate real-time, low-latency ticker feed to over 100 market segments across the globe over a period of time, Financial Technologies informed the Bombay Stock Exchange.
The goal is to level the playing field for the smallest Indian investors by bringing 'Wall Street to the Man on the Street'.
Tata to mull financing for Corus on April 17
Tata Steel on Tuesday said its Board will meet on April 17 to discuss plans for funding the 12 billion dollar acquisition of Anglo-Dutch firm Corus Group Plc.The Board would consider proposals to finance investment in the Special Purpose Vehicle floated for acquiring Corus, the company said in a filing to the Bombay Stock Exchange.
Tata Steel had outbid Brazil's CSN to acquire Corus at a price of 608 pence a share after a nine-round auction in January, making it the world's fifth-largest steel firm. The Indian company has already spent close to 2.5 billion dollars for acquiring about 21 per cent stake in Corus through open market transactions.
Read more in The Times of India article.
Tata Steel had outbid Brazil's CSN to acquire Corus at a price of 608 pence a share after a nine-round auction in January, making it the world's fifth-largest steel firm. The Indian company has already spent close to 2.5 billion dollars for acquiring about 21 per cent stake in Corus through open market transactions.
Read more in The Times of India article.
Deutsche Bank picks up 14.9% in RPG Cables
Deutsche Bank AG, Hong Kong, has picked up a 14.9% stake in RPG Cables, manufacturer of power and telecommunications cables and a part of the RPG Group. This is part of the financial restructuring that RPG Cables has completed and which it announced to the Bombay Stock Exchange on Monday.
As per the restructuring package, Deutsche Bank and the promoters have infused Rs151 crore through a combination of debt and equity.Deutsche Bank has been alloted fully convertible debentures of Rs28 crore, or approximately 14.9% of RPG Cables’ equity capital.
As per the restructuring package, Deutsche Bank and the promoters have infused Rs151 crore through a combination of debt and equity.Deutsche Bank has been alloted fully convertible debentures of Rs28 crore, or approximately 14.9% of RPG Cables’ equity capital.
Suzlon acquires 8 pc in REpower
Wind power major, Suzlon Energy has revised its offer price for REpower Systems to 150 Euro per share, with an acquisition of 7.7 per cent stake in the German firm.
The company has purchased 627,000 shares constituting 7.7 per cent of the pre-capital increase share capital of REpower Systems AG, at a price of up to Euro 150 per share, Suzlon Energy informed the Bombay Stock Exchange.
Suzlon Energy said its wholly-owned subsidiary, Germany-based SE Drive Technik GmbH and a company acting in concert with Suzlon Windenergie GmbH, its another step-down wholly owned subsidiary has acquired the said equity shares.
Earlier in March, French nuclear reactor maker Areva offered 140 euros per share for REpower, raising its previous offer of 105 euros by a third, to top Suzlon's bid of 126 Euro per share.
Read more in The Economic Times artticle.
The company has purchased 627,000 shares constituting 7.7 per cent of the pre-capital increase share capital of REpower Systems AG, at a price of up to Euro 150 per share, Suzlon Energy informed the Bombay Stock Exchange.
Suzlon Energy said its wholly-owned subsidiary, Germany-based SE Drive Technik GmbH and a company acting in concert with Suzlon Windenergie GmbH, its another step-down wholly owned subsidiary has acquired the said equity shares.
Earlier in March, French nuclear reactor maker Areva offered 140 euros per share for REpower, raising its previous offer of 105 euros by a third, to top Suzlon's bid of 126 Euro per share.
Read more in The Economic Times artticle.
Batliboi acquires Canada's Quickmill
On an expansion spree in the North American market, Mumbai-based machine tool and engineering company, Batliboi Ltd has acquired Canadian firm Quickmill Inc to leverage on the latter's distribution network and research and development capabilities.
The 100 per cent equity acquisition deal is estimated at Rs 22 crore and is the first foray by Batliboi into the mergers and acquisition space.
Batliboi primarily manufactures machine tools, specialised machines, textile air engineering machines and air conditioners at its Surat and Bangalore facilities. The company's clients include textile manufacturers, automobile manufacturers like TVS, Honda, Mahindra and Mahindra and power makers like BHEL besides hotels which use its air conditioners and refrigerators.
The 100 per cent equity acquisition deal is estimated at Rs 22 crore and is the first foray by Batliboi into the mergers and acquisition space.
Batliboi primarily manufactures machine tools, specialised machines, textile air engineering machines and air conditioners at its Surat and Bangalore facilities. The company's clients include textile manufacturers, automobile manufacturers like TVS, Honda, Mahindra and Mahindra and power makers like BHEL besides hotels which use its air conditioners and refrigerators.
Mid-sized software services firm Mascon Global Ltd is close to making an acquisition in the US at an estimated deal size of more than $30 million (Rs128 crore), its chairman said on 10 April.
The acquisition is expected to add $40 million to the company’s revenues in 2007-08 and $5 million to the earnings before interest, depreciation, taxes and amortisation, he said.
The stake offered would be in the range of 3-4%, but in return the target company would have to give a performance guarantee in terms of revenues and profits.
The company has already obtained the board’s approval to raise $20 million through issue of global depositary receipts to fund the acquisition, and the process for this would be set in place once the deal is finalised.
At the end of this financial year, Mascon expects revenues to exceed $200 million, including the acquisition.The target company has a strong presence in banking, financial services, insurance and life sciences.
Read more in Live Mint article.
The acquisition is expected to add $40 million to the company’s revenues in 2007-08 and $5 million to the earnings before interest, depreciation, taxes and amortisation, he said.
The stake offered would be in the range of 3-4%, but in return the target company would have to give a performance guarantee in terms of revenues and profits.
The company has already obtained the board’s approval to raise $20 million through issue of global depositary receipts to fund the acquisition, and the process for this would be set in place once the deal is finalised.
At the end of this financial year, Mascon expects revenues to exceed $200 million, including the acquisition.The target company has a strong presence in banking, financial services, insurance and life sciences.
Read more in Live Mint article.
Mittal competes with Kumar Birla, Vedanta to take control of Sesa Goa
Lakshmi Mittal, the world’s fifth- richest man, is competing with two fellow Indian billionaires to buy control of Sesa Goa Ltd, the nation’s largest non-state iron ore exporter, people familiar with the plan said.
Japan’s Mitsui and Co. is selling its 51% stake in Panaji, Goa-based Sesa Goa worth as much as $1 billion (Rs4,286 crore) and may select a buyer this week, said the people, who didn’t want to be identified before an announcement. The three bidders are Arcelor Mittal, the world’s largest steel company, Aditya Birla Group and Vedanta Resources Plc, they said.Lakshmi Mittal wants to fend off Kumar Mangalam Birla and Vedanta’s Anil Agarwal to obtain iron ore for his steel mills and reduce production costs.
Read more in Live Mint article.
Japan’s Mitsui and Co. is selling its 51% stake in Panaji, Goa-based Sesa Goa worth as much as $1 billion (Rs4,286 crore) and may select a buyer this week, said the people, who didn’t want to be identified before an announcement. The three bidders are Arcelor Mittal, the world’s largest steel company, Aditya Birla Group and Vedanta Resources Plc, they said.Lakshmi Mittal wants to fend off Kumar Mangalam Birla and Vedanta’s Anil Agarwal to obtain iron ore for his steel mills and reduce production costs.
Read more in Live Mint article.
Jet to buy Air Sahara at less than $500 mn
Nine months after calling it off, Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, but at a lower price than the $500 million offered in January last year.
The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.
Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.
Meanwhile, there are reports that valuation of Air Sahara could be around Rs 1,800 crore and Jet may offer to takeover the airline for that amount, which would include adjustment of Rs 500 crore already paid to the Lucknow-based carrier.
Read more in The Economic Times article.
The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.
Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.
Meanwhile, there are reports that valuation of Air Sahara could be around Rs 1,800 crore and Jet may offer to takeover the airline for that amount, which would include adjustment of Rs 500 crore already paid to the Lucknow-based carrier.
Read more in The Economic Times article.
Bharati buys out UK shipyard major Swan
Bharati Shipyard, the country’s second-largest private sector ship-builder, is understood to have acquired the UK-based Swan Hunter Shipyard for an undisclosed amount.The acquisition might be one of the biggest deals till date in the domestic shipbuilding industry. A comparable new shipyard would have cost Rs 200-250 crore.
A spokesperson for Bharati Shipyard declined to comment, saying, “As a company policy we do not react on market speculation.”
This acquisition assumes significance given the fact that all international shipyards are overbooked till 2009-end as the general economic upswing has resulted in a demand for new ships.Moreover, the International Maritime Organisation has brought in a number of regulations leading to scrapping of old vessels. This has also fuelled demand.
Read more in The Business Standard article.
A spokesperson for Bharati Shipyard declined to comment, saying, “As a company policy we do not react on market speculation.”
This acquisition assumes significance given the fact that all international shipyards are overbooked till 2009-end as the general economic upswing has resulted in a demand for new ships.Moreover, the International Maritime Organisation has brought in a number of regulations leading to scrapping of old vessels. This has also fuelled demand.
Read more in The Business Standard article.
Brand Factory to invest Rs 500 cr by 2010
Brand Factory — the discount store format of the Future Group which runs retail business chains such as Central and Big Bazaar — is planning an expansion drive to set up 55 outlets in 40 cities in India by 2010.
The group launched its first Brand Factory store in Pune (its fourth) last week and plans to open one each in Hyderabad and Noida next week. It has three stores, one each in Bangalore, Hyderabad and Ahmedabad.
Vishnu Prasad, President and Chief Executive Officer, Central and Brand Factory business for Future Group said that the company is expected to invest about Rs 500 crore by 2010 for the 55 stores it plans by then.
Prasad said that the BF stores will offer 15 per cent to 25 per cent discount round the year on a wide range of national and international brands.Prasad said that the BF stores will provide an important link in shifting a customer from stitched to readymade to branded apparel. The only difference between what is offered in the Central or other formats of the company is the freshness of design, he said, adding that BF will not sell defective garments.
Sadashiv Nayak, head of Western market for the group, said that BF will target the young customers who want wear a brand but don’t want to spend big money for them. BF, with its discount appeal will give them the brand experience without any compromise on quality.
Nayak did not offer any projections of the sales revenue BF will record when it reaches the 55-outlet mark in 2010. He said that the business started only during October, 2006, and income projections have not been built so far. He, however, claimed that the customer response in the three stores opened so far has been “huge”.
The group launched its first Brand Factory store in Pune (its fourth) last week and plans to open one each in Hyderabad and Noida next week. It has three stores, one each in Bangalore, Hyderabad and Ahmedabad.
Vishnu Prasad, President and Chief Executive Officer, Central and Brand Factory business for Future Group said that the company is expected to invest about Rs 500 crore by 2010 for the 55 stores it plans by then.
Prasad said that the BF stores will offer 15 per cent to 25 per cent discount round the year on a wide range of national and international brands.Prasad said that the BF stores will provide an important link in shifting a customer from stitched to readymade to branded apparel. The only difference between what is offered in the Central or other formats of the company is the freshness of design, he said, adding that BF will not sell defective garments.
Sadashiv Nayak, head of Western market for the group, said that BF will target the young customers who want wear a brand but don’t want to spend big money for them. BF, with its discount appeal will give them the brand experience without any compromise on quality.
Nayak did not offer any projections of the sales revenue BF will record when it reaches the 55-outlet mark in 2010. He said that the business started only during October, 2006, and income projections have not been built so far. He, however, claimed that the customer response in the three stores opened so far has been “huge”.
MMTC, STC, PEC look at merging businesses
MMTC Ltd, State Trading Corporation (STC) and Project Equipment Corporation (PEC) are considering merging their businesses to form a $10 billion (Rs 43,000 crore) Navratna-status company.
MMTC Ltd, the largest of the three companies, is seeking approval for the merger from its 2,000-odd employees this week, and State Trading Corporation and PEC will launch a similar exercise next month.
The merger, recommended by management consultancy McKinsey, will create a behemoth of over 3,000 employees, with a combined turnover of more than Rs 27,000 crore (2005-06 figures).
The merger is part of a larger exercise to improve the profitability of these companies that currently have overlapping areas of operation, which sees them eat into each other’s margins. A “navratna” is a profit-making public sector company with significant financial autonomy.
Read more in The Business Standard article.
MMTC Ltd, the largest of the three companies, is seeking approval for the merger from its 2,000-odd employees this week, and State Trading Corporation and PEC will launch a similar exercise next month.
The merger, recommended by management consultancy McKinsey, will create a behemoth of over 3,000 employees, with a combined turnover of more than Rs 27,000 crore (2005-06 figures).
The merger is part of a larger exercise to improve the profitability of these companies that currently have overlapping areas of operation, which sees them eat into each other’s margins. A “navratna” is a profit-making public sector company with significant financial autonomy.
Read more in The Business Standard article.
PE investors to buy 24% in NDTV Networks
A clutch of private equity (PE) investors, which include Lehman Brothers, Goldman Sachs, CSFB and eight others, would acquire nearly 24 per cent stake in NDTV Networks, a fully owned subsidiary of NDTV India, for $120 million. The valuation of the new company would, thus, be over Rs 2,200 crore.
The UK-based NDTV Networks has five companies in its fold. It holds 100 per cent in NDTV Labs, which will develop the market and sell software and technology products; NDTV Imagine, which will operate a non-news Hindi mass entertainment channel; NDTV Lifestyle, which will provide content to TV channels in India and abroad; and NDTV Convergence, which houses all dotcom and mobile properties of the group. NDTV Network also owns 50 per cent in NDTV Media services with Genpact for media process outsourcing.
NDTV India controls news channels, NDTV 24x7, NDTV Profit, among others.
The group flagship has a market capitalisation of Rs 1,992 crore compared with Rs 3,609 crore of rival TV18.
The broadcaster is also believed to have scrapped its initial public offer for the moment and may reconsider it later.
The UK-based NDTV Networks has five companies in its fold. It holds 100 per cent in NDTV Labs, which will develop the market and sell software and technology products; NDTV Imagine, which will operate a non-news Hindi mass entertainment channel; NDTV Lifestyle, which will provide content to TV channels in India and abroad; and NDTV Convergence, which houses all dotcom and mobile properties of the group. NDTV Network also owns 50 per cent in NDTV Media services with Genpact for media process outsourcing.
NDTV India controls news channels, NDTV 24x7, NDTV Profit, among others.
The group flagship has a market capitalisation of Rs 1,992 crore compared with Rs 3,609 crore of rival TV18.
The broadcaster is also believed to have scrapped its initial public offer for the moment and may reconsider it later.
Monday, April 9, 2007
M&A deals in co-operative banking sector on the rise
Merger and Acquisition deals, common among corporates today, are also making inroads in the urban cooperative banking sector.As per figures available with the National Federation of Urban Cooperative Banks, 19 co-op banks have already merged with stronger banks while nine more are in the pipeline.
Banks like Saraswat Bank, Shamrao Vithal Co-op Bank and Cosmos Bank have been the major acquirers so far.The co-operative banking sector with over 1,850 banks and total business of about Rs 2,00,000 crore is infested with weakness.
According to Krishna, earlier, there was no organised attempt to revive the weak banks. They would be subjected to many restrictions and eventually go into liquiditation.
Read more in Live Mint article.
Banks like Saraswat Bank, Shamrao Vithal Co-op Bank and Cosmos Bank have been the major acquirers so far.The co-operative banking sector with over 1,850 banks and total business of about Rs 2,00,000 crore is infested with weakness.
According to Krishna, earlier, there was no organised attempt to revive the weak banks. They would be subjected to many restrictions and eventually go into liquiditation.
Read more in Live Mint article.
Royal Palms plans Rs600cr IT SEZ spend
Real estate and hotels major Royal Palms will invest around Rs 600 crore to set up an IT/ITeS special economic zone (SEZ) in Mumbai that would be ready for occupation by end of next year. The company intends to develop the SEZ on a 26-acre land and would rent the space to 15-20 large and a host of small software firms.
The company has received both Central Government and state government (empowered Group of Ministers) approvals for the IT SEZ, and is awaiting Development Commissioner’s approval to commence work. Mumbai-based Hiranandani Builders had also sought approvals for setting up an SEZ for software and is awaiting a notification (approval under SEZ Act).
Royal Palms is planning to build the SEZ under two phases, with a development of around 10 lakh square feet in the first phase and similar area in the second phase. Upon completion, it would be offered on rent to software companies.
Around 70 per cent of the total investment would be raised from internal accruals and promoter’s stake, and the remaining through debt.
Read more in The Business Standard article.
The company has received both Central Government and state government (empowered Group of Ministers) approvals for the IT SEZ, and is awaiting Development Commissioner’s approval to commence work. Mumbai-based Hiranandani Builders had also sought approvals for setting up an SEZ for software and is awaiting a notification (approval under SEZ Act).
Royal Palms is planning to build the SEZ under two phases, with a development of around 10 lakh square feet in the first phase and similar area in the second phase. Upon completion, it would be offered on rent to software companies.
Around 70 per cent of the total investment would be raised from internal accruals and promoter’s stake, and the remaining through debt.
Read more in The Business Standard article.
Sebi mulls 20% day-one price band for re-listing
Scrips going for initial public offering (IPO) in future may have limited movement on debut day as the Sebi has, as a step towards this goal, has sought to restrict sharp ups and downs in re-listing of scrips on day-one on the exchanges.
The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.
Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demerger, amalgamation, capital reduction, scheme of arrangement, restructuring as well as in case if the scrip is already listed on some other stock exchange.
In case of IPOs price band or circuit filter on debut day is still at a discussion stage, there is no circuit filter so far on the day a company lists in the exchange for the purpose of price discovery. However, often it has meant sharp price volatility.
Recently, there was significant price rise on the first day of trading in certain securities such as Ahluwalia Contracts, where recommencement in trading saw scrip rise to Rs 611.90 compared with listing price of Rs 101.50 and finally closed on the debut day at Rs 577.80.
Alarmed by the above case Sebi recently deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.
The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.
Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demerger, amalgamation, capital reduction, scheme of arrangement, restructuring as well as in case if the scrip is already listed on some other stock exchange.
In case of IPOs price band or circuit filter on debut day is still at a discussion stage, there is no circuit filter so far on the day a company lists in the exchange for the purpose of price discovery. However, often it has meant sharp price volatility.
Recently, there was significant price rise on the first day of trading in certain securities such as Ahluwalia Contracts, where recommencement in trading saw scrip rise to Rs 611.90 compared with listing price of Rs 101.50 and finally closed on the debut day at Rs 577.80.
Alarmed by the above case Sebi recently deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.
EXL eyes $25-50 mn buyouts abroad
EXL Service Holdings, an IT services provider, is on the lookout to acquire companies in Eastern Europe, the Philippines, South Africa and China. The company is looking to mitigate its risks by diversifying into delivery and support centres in other cheaper destinations and also offer capabilities to service clients from markets other than the US.
Almost 30 per cent of EXL’s revenues come from the research and analytics, and risk advisory services and the company is keen to add capabilities in the same through acquisitions in the UK, a market that remains unexploited, claimed Kapoor.The company acquired a single company last year, Inductis, a strategy and analytics company serving the financial services and insurance industries.
Read more in The Business Standard article.
Almost 30 per cent of EXL’s revenues come from the research and analytics, and risk advisory services and the company is keen to add capabilities in the same through acquisitions in the UK, a market that remains unexploited, claimed Kapoor.The company acquired a single company last year, Inductis, a strategy and analytics company serving the financial services and insurance industries.
Read more in The Business Standard article.
Traffic on M&A St to swell further
Riding on the boom in the Indian economy, corporate India is expected to be an active player in the global mergers & acquisitions (M&A) market in 2007, with significant deal activity expected in IT/ITeS, telecom, pharmaceuticals, energy, banking and financial services sector, according to a CII whitepaper on M&As. Corporate India is likely to see many billion-dollar deals in energy and pharmaceuticals sectors, the whitepaper said.
One of key enablers for future M&A would be availability of structured financing options. While high economic growth has left Indian companies flush with surplus funds, India Inc is already exploring exchanges like the Alternative Investment Market (AIM) of LSE, Kosdaq of South Korea, TSX of Toronto, Sesdaq of Singapore and the Euronext to take advantage of liberal listing norms, a quicker listing process and better valuations from wider range of international investors.
Indian companies are expected to raise at least £2-3 billion from AIM alone. With almost 60% of the investors in the market being long-term investors willing to invest in long-gestation projects, AIM is likely to emerge as the preferred market for Indian companies to raise capital.
Read more in The Economic Times article.
One of key enablers for future M&A would be availability of structured financing options. While high economic growth has left Indian companies flush with surplus funds, India Inc is already exploring exchanges like the Alternative Investment Market (AIM) of LSE, Kosdaq of South Korea, TSX of Toronto, Sesdaq of Singapore and the Euronext to take advantage of liberal listing norms, a quicker listing process and better valuations from wider range of international investors.
Indian companies are expected to raise at least £2-3 billion from AIM alone. With almost 60% of the investors in the market being long-term investors willing to invest in long-gestation projects, AIM is likely to emerge as the preferred market for Indian companies to raise capital.
Read more in The Economic Times article.
Genpact eyes $600-million US listing
Genpact, one of the country's largest business process outsourcing firms, is mulling a US listing through an initial public offer to raise over $600 million for the company and its promoters.
The company is planning to sell about 15% equity through a public float on either Nasdaq or New York Stock Exchnage later this year, merchant banking sources said.The company's major shareholders — GE and US-based private equity giants Oakhill Capital and General Atlantic — are likely to sell part of their holding through this IPO, which could value the firm at around $4 billion.
Genpact has appointed three US-based investment banks — Morgan Stanley, JPMorgan and Citigroup — for the IPO and it may file the regulatory prospectus in the next few weeks, to be followed with a listing later this year.
Read more in The Times of India article.
The company is planning to sell about 15% equity through a public float on either Nasdaq or New York Stock Exchnage later this year, merchant banking sources said.The company's major shareholders — GE and US-based private equity giants Oakhill Capital and General Atlantic — are likely to sell part of their holding through this IPO, which could value the firm at around $4 billion.
Genpact has appointed three US-based investment banks — Morgan Stanley, JPMorgan and Citigroup — for the IPO and it may file the regulatory prospectus in the next few weeks, to be followed with a listing later this year.
Read more in The Times of India article.
SABMiller eyes UB ally S&N
In a move that could change the sweepstakes in the Indian beer market, brewing giant SABMiller is planning to acquire rival Scottish & Newcastle in a $12.8 billion deal, the Sunday Express said on Sunday.
Scottish & Newcastle is a partner of Vijay Mallya’s United Breweries Group in India. The two have formed an equal joint venture, McDowell Alcobev Pvt Ltd, which has in its stable brands like Sand Piper Lager, Zingaro Strong Beer and Kalyani Black Label Strong.
UB Group CFO Ravi Nedungadi said he expected more companies to join the race for Scottish & Newcastle as SABMiller could face regulatory hurdles.
In the last few years, SABMiller has emerged the main challenger to the UB Group’s dominance of the Indian beer market by effecting a series of high-profile acquisitions. After acquiring the brewery business of Shaw Wallace & Co from the Chhabria family, it acquired Foster’s business and brand in India for a consideration of $120 million.
Scottish & Newcastle is a partner of Vijay Mallya’s United Breweries Group in India. The two have formed an equal joint venture, McDowell Alcobev Pvt Ltd, which has in its stable brands like Sand Piper Lager, Zingaro Strong Beer and Kalyani Black Label Strong.
UB Group CFO Ravi Nedungadi said he expected more companies to join the race for Scottish & Newcastle as SABMiller could face regulatory hurdles.
In the last few years, SABMiller has emerged the main challenger to the UB Group’s dominance of the Indian beer market by effecting a series of high-profile acquisitions. After acquiring the brewery business of Shaw Wallace & Co from the Chhabria family, it acquired Foster’s business and brand in India for a consideration of $120 million.
Saturday, April 7, 2007
Future group enters consumer finance
The Kishore Biyani-promoted Future group, known for its retail chains Big Bazaar and Food Bazaar, today entered the growing segment of consumer finance by launching its consumer finance outfit called Future Money.
The new company, which will fall under Future Capital Holdings, will initially provide credit up to 70-80 per cent of the cost of purchases made by customers at Future group’s retail stores. It will later consider extending its services to retail outlets owned by others, providing home and car loans, and floating credit cards. The venture will be headed by Rakesh Makkar, who was earlier with Citifinancial.
“Right now there is a complete disconnect between financing and consumption. Future Money is aiming at converging that. After all a retailer is interested in selling goods and by providing financing, we can perhaps increase sale of items like furniture and consumer electronics,” said a senior executive of Future Money.
Makkar said he was not concerned with the increasing cost of money. “It is increasing for everyone, not just us. In fact, we are looking at offering competitive lending rates,” he said. Big Bazaar, Future group’s format of hypermarkets, has an arrangement with ICICI Bank for co-branded credit cards. This relationship will continue as of now.
Reliance Retail and Bharti Retail are also planning in-house credit arms to support their retail ventures. “We will enjoy at least a three-year headstart. It is not easy to set up well-penetrated credit facilities,” said a senior executive of Future Money.
As Future Capital Holdings has the status of a non-banking finance company, Future Money need not apply for it.
The new company, which will fall under Future Capital Holdings, will initially provide credit up to 70-80 per cent of the cost of purchases made by customers at Future group’s retail stores. It will later consider extending its services to retail outlets owned by others, providing home and car loans, and floating credit cards. The venture will be headed by Rakesh Makkar, who was earlier with Citifinancial.
“Right now there is a complete disconnect between financing and consumption. Future Money is aiming at converging that. After all a retailer is interested in selling goods and by providing financing, we can perhaps increase sale of items like furniture and consumer electronics,” said a senior executive of Future Money.
Makkar said he was not concerned with the increasing cost of money. “It is increasing for everyone, not just us. In fact, we are looking at offering competitive lending rates,” he said. Big Bazaar, Future group’s format of hypermarkets, has an arrangement with ICICI Bank for co-branded credit cards. This relationship will continue as of now.
Reliance Retail and Bharti Retail are also planning in-house credit arms to support their retail ventures. “We will enjoy at least a three-year headstart. It is not easy to set up well-penetrated credit facilities,” said a senior executive of Future Money.
As Future Capital Holdings has the status of a non-banking finance company, Future Money need not apply for it.
Thursday, April 5, 2007
Fortis acquires Hiranandani Healthcare for Rs25.6 crore
Fortis Healthcare Ltd, a company controlled and managed by the Singh family, the promoters of Ranbaxy Laboratories Ltd, has acquired Hiranandani Healthcare Pvt. Ltd for Rs25.6 crore in an effort to expand its presence, hitherto largely restricted to the north and the western parts of India.With this acquisition, Hiranandani Healthcare’s work-in-progress 152-bed facility in Navi Mumbai comes under the Fortis fold.
The health-care company now plans a facility in the south, which will give it a pan-India presence. Its foray into the southern market is likely to happen by the end of the year, said Singh, who added that the company is considering either acquiring a southern health- care firm or signing a management contract (where it gets to manage a hospital owned by someone else) with one. Fortis has also started work on a new hospital in New Delhi, which will cost it an estimated Rs200 crore.
Read more in The Live Mint article.
The health-care company now plans a facility in the south, which will give it a pan-India presence. Its foray into the southern market is likely to happen by the end of the year, said Singh, who added that the company is considering either acquiring a southern health- care firm or signing a management contract (where it gets to manage a hospital owned by someone else) with one. Fortis has also started work on a new hospital in New Delhi, which will cost it an estimated Rs200 crore.
Read more in The Live Mint article.
Fortis plans to expand hospital network
Fortis Healthcare, promoted by the Singh family of Ranbaxy, plans to expand its network to 40 hospitals within three years by either acquiring new facilities or setting up greenfield projects. The investment in these projects, primarily in western and southern India, will be over Rs 1,000-Rs 1,500 crore. Fortis, at present, runs 12 corporate hospitals in north India.
A source close to the development said, in another one or two years, Fortis would set up a network of five to six hospitals in Mumbai. This would be either through a takeover of existing facilities or through strategic alliances with reputed trust-run hospitals. Fortis is also evaluating the option of starting green field projects in Mumbai.
Further, the company is in advanced negotiations with the Mumbai-based real estate major Hiranandanis to manage their proposed hospital projects. A memorandum of understanding is being worked out by the partners.
Confirming this, a Hiranandani spokesperson said they are planning five to 10 hospitals within the next five years, though yet to finalise the locations. Fortis has already set its foot in Mumbai recently by acquiring the Hiranadani hospital project at Vashi in Navi Mumbai for over Rs 25 crore.
Read more in The Business Standard article.
A source close to the development said, in another one or two years, Fortis would set up a network of five to six hospitals in Mumbai. This would be either through a takeover of existing facilities or through strategic alliances with reputed trust-run hospitals. Fortis is also evaluating the option of starting green field projects in Mumbai.
Further, the company is in advanced negotiations with the Mumbai-based real estate major Hiranandanis to manage their proposed hospital projects. A memorandum of understanding is being worked out by the partners.
Confirming this, a Hiranandani spokesperson said they are planning five to 10 hospitals within the next five years, though yet to finalise the locations. Fortis has already set its foot in Mumbai recently by acquiring the Hiranadani hospital project at Vashi in Navi Mumbai for over Rs 25 crore.
Read more in The Business Standard article.
Sherwin-Williams to buy Nitco Paints
Sherwin-Williams Company, the largest paint retailer in the United States, has announced that it had bought the Mumbai-based Nitco Paints for an undisclosed sum.
This deal marks the entry of the $8 billion paint manufacturer into the Indian market. “We are excited at the dynamic, growing Indian market,” said Christopher M Connor, chairman and chief executive officer of Sherwin-Williams.
Last month, the company acquired the Philadelphia-based M A B Paints, adding 132 outlets and contractors to its network of more than 3,000 US stores.
Nitco is a privately owned manufacturer with sales of about Rs 80 crore and specialises in exterior paints and coatings. Sanjiv Batra, director, Nitco Paints, said the focus would be to scale up the brand presence in the rest of the country.
Read more in The Business Standard article.
This deal marks the entry of the $8 billion paint manufacturer into the Indian market. “We are excited at the dynamic, growing Indian market,” said Christopher M Connor, chairman and chief executive officer of Sherwin-Williams.
Last month, the company acquired the Philadelphia-based M A B Paints, adding 132 outlets and contractors to its network of more than 3,000 US stores.
Nitco is a privately owned manufacturer with sales of about Rs 80 crore and specialises in exterior paints and coatings. Sanjiv Batra, director, Nitco Paints, said the focus would be to scale up the brand presence in the rest of the country.
Read more in The Business Standard article.
Aptech to buy content development co in US
IT and multimedia training firm Aptech Ltd is planning to acquire an existing content development firm, either domestic or one based in the United States, at a cost of "$4-5 million" to strengthen its presence in this arena. Aptech is one of the new entrants in the content development space.
"We have appointed a merchant banker and the process is expected to be over by June," Aptech CEO & MD Pramod Khera told TOI. However, he did not comment on whether Aptech has already zeroed in on any firm and the likely size of the entity.
Khera said the proposed acquisition would help Aptech lower operating costs as it would have access to the target firm's facilities and mayalso use latter's human resources.
He did not elaborate on the number of Aptech employees engaged in content development for US clients. Aptech would spend over Rs 20 crore to set up 50 aviation training centres nationwide by 2009. It now has seven.
"The eastern region offers good potential in aviation sector and we plan to open eight-nine centres there, including one in Kolkata in two-three months." Aptech will lessen its focus on training the government sector, as it is a capital-intensive and low-return business. "We want to exit this space by 2008," he said.
"We have appointed a merchant banker and the process is expected to be over by June," Aptech CEO & MD Pramod Khera told TOI. However, he did not comment on whether Aptech has already zeroed in on any firm and the likely size of the entity.
Khera said the proposed acquisition would help Aptech lower operating costs as it would have access to the target firm's facilities and mayalso use latter's human resources.
He did not elaborate on the number of Aptech employees engaged in content development for US clients. Aptech would spend over Rs 20 crore to set up 50 aviation training centres nationwide by 2009. It now has seven.
"The eastern region offers good potential in aviation sector and we plan to open eight-nine centres there, including one in Kolkata in two-three months." Aptech will lessen its focus on training the government sector, as it is a capital-intensive and low-return business. "We want to exit this space by 2008," he said.
Re hits 8-yr high vs dollar
The rupee touched a near eight-year high on Wednesday, breaching the Rs 43 to a dollar mark to touch Rs 42.84. However, in the open market, because of the purchases from refiners and importers, rupee recovered to close at Rs 43.04 a dollar as against the previous close of Rs 43.06 on Tuesday. But RBI pegged its reference rate at Rs 42.90 on Wednesday.
Since July 19, 2006, rupee has appreciated by 8.75% and in 2006-07 it appreciated by around 4%. This will simply reduce the profitability of exporting companies by that many percentage points. The appreciation in the Rupee will affect profitability of exporters, IT companies, and business process outsourcing firms.
At the same time it will help companies that are importing, since they can source products from abroad by paying less. Oil refining companies, which import crude petroleum products from abroad, are the biggest beneficiaries.
Read more in The Times of India article.
Since July 19, 2006, rupee has appreciated by 8.75% and in 2006-07 it appreciated by around 4%. This will simply reduce the profitability of exporting companies by that many percentage points. The appreciation in the Rupee will affect profitability of exporters, IT companies, and business process outsourcing firms.
At the same time it will help companies that are importing, since they can source products from abroad by paying less. Oil refining companies, which import crude petroleum products from abroad, are the biggest beneficiaries.
Read more in The Times of India article.
Wednesday, April 4, 2007
Financial Technology sells 1% in Dubai bourse for $12.5 mn
The Dubai Multi Commodities Centre (DMCC) has bought an additional 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from its partner, the Financial Technologies Group, for $12.5 million.
The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.
The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.
Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.
DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.
Read more in The Business Standard article.
The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.
The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.
Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.
DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.
Read more in The Business Standard article.
Global acquires Chennai hospital for Rs 257 crore
The Hyderabad-based Global Hospitals, part of Ravindranath GE Medical Associates, has acquired Sri Kanchi Kamakoti Sankara Hospital (formerly Tamilnad Hospital) in an all-cash deal, for Rs 257 crore to be paid in tranches.
The Madras High Court on Monday permitted Sri Kanchi Kamakoti to encash the earnest money deposit of Global Hospitals and complete the sale of the property. The Chennai-based Sankara Hospital, abutting the Old Mahabalipuram road, is spread over 46 acres and has 450 beds.
In July 2006, a division bench of the Madras High Court had permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to sell the Sankara Hospital. The trust, in its application to sell the hospital, said it could not run it and had become heavily indebted.
Subsequently, corporates and healthcare majors, including the Murugappa group, Satya Sai Hospitals of Chennai, Bangalore-based Shriram Properties, Kolkata-based Advanced Medical and Research Institute and Global Hospitals bid for the property. Global emerged winner by quoting Rs 257 crore and assuring that it would run the existing hospital, retain the employees and provide 50 free beds.
Read more in The Business Standard article.
The Madras High Court on Monday permitted Sri Kanchi Kamakoti to encash the earnest money deposit of Global Hospitals and complete the sale of the property. The Chennai-based Sankara Hospital, abutting the Old Mahabalipuram road, is spread over 46 acres and has 450 beds.
In July 2006, a division bench of the Madras High Court had permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to sell the Sankara Hospital. The trust, in its application to sell the hospital, said it could not run it and had become heavily indebted.
Subsequently, corporates and healthcare majors, including the Murugappa group, Satya Sai Hospitals of Chennai, Bangalore-based Shriram Properties, Kolkata-based Advanced Medical and Research Institute and Global Hospitals bid for the property. Global emerged winner by quoting Rs 257 crore and assuring that it would run the existing hospital, retain the employees and provide 50 free beds.
Read more in The Business Standard article.
Indian Hotels to acquire US hotel for Rs 264 c
After buying the Ritz Carlton in Boston, Indian Hotels Company (IHCL), owners of the Taj group of hotels, have done it again.
The country's largest hotel chain is now acquiring Hotel Campton Place in San Francisco. The acquisition cost, pegged at $60 million (Rs 264 crore), will be completed in partnership with a clutch of financial investors, IHCL said on Tuesday.
Hotel Campton Place is a 110-room luxury boutique hotel situated at Union Square in the heart of San Francisco. The acquisition is routed through IHCL's wholly-owned subsidiary in US.
The sale-purchase agreement was signed on Monday and the transaction is scheduled to close on April 30. The Campton Place is the Taj group's first acquisition on the West Coast of US.
Two other properties that it owns are located on the East Coast of US. Last year, it purchased Ritz-Carlton Boston (renamed as Taj Boston) for $170 million.
In 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue. The lease price was $5 million a year.
The country's largest hotel chain is now acquiring Hotel Campton Place in San Francisco. The acquisition cost, pegged at $60 million (Rs 264 crore), will be completed in partnership with a clutch of financial investors, IHCL said on Tuesday.
Hotel Campton Place is a 110-room luxury boutique hotel situated at Union Square in the heart of San Francisco. The acquisition is routed through IHCL's wholly-owned subsidiary in US.
The sale-purchase agreement was signed on Monday and the transaction is scheduled to close on April 30. The Campton Place is the Taj group's first acquisition on the West Coast of US.
Two other properties that it owns are located on the East Coast of US. Last year, it purchased Ritz-Carlton Boston (renamed as Taj Boston) for $170 million.
In 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue. The lease price was $5 million a year.
Tuesday, April 3, 2007
Uttam Galva raises $20mn, to list in Singapore
Uttam Galva Steels, a producer of galvanized and cold-rolled steel, raised $20 million via global depositary receipts (GDRs) to fund expansion plans. The issue was priced at about 92 cents (Rs 40) per GDR, which represents one local share.
The GDRs will trade on the Singapore Exchange Securities Trading. Uttam is spending Rs 700 crore this year on increasing production of galvanized steel to 8,00,000 tonne.
The company recently entered into a joint venture with Liberty Commodities, a UK-based trading company, to construct two new steel re-roller mills in Ghana with an investment of $60 million (around Rs 270 crore). The JV company will invest $20 million in a 70,000 tonne per annum hot-dip galvanising line and $40 million in a 2,00,000-2,50,000 tonne per annum cold rolling mill.
The GDRs will trade on the Singapore Exchange Securities Trading. Uttam is spending Rs 700 crore this year on increasing production of galvanized steel to 8,00,000 tonne.
The company recently entered into a joint venture with Liberty Commodities, a UK-based trading company, to construct two new steel re-roller mills in Ghana with an investment of $60 million (around Rs 270 crore). The JV company will invest $20 million in a 70,000 tonne per annum hot-dip galvanising line and $40 million in a 2,00,000-2,50,000 tonne per annum cold rolling mill.
Wipro to invest Rs 375cr in Pune
Wipro Technologies, the global IT services division of Wipro, today announced an investment of Rs 375 crore in Pune after the inauguration of its new development centre in Hinjewadi.
Wipro currently has 6,300 people in Pune operating from a 5,80,000 square feet campus at the Rajiv Gandhi Infotech Park Phase I at Hinjewadi and its new development centre at Phase II of the Hinjewadi Park. The IT major has also applied for 50 acre in Phase III of the Park, which is a notified special economic zone (SEZ).
With the addition of the new facility, Wipro will ramp up capacity to 17,000 people in Pune. Azim Premji, chairman, Wipro said: "We will invest Rs 375-400 crore over the next 3-5 years to develop this facility as we ramp up our headcount in Pune from 6,400 to 17,000 people." The overall employee base in five years will cross 1,60,000 people, he added.
The centre was inaugurated in the presence of Maharashtra Chief Minister Vilasrao Deshmukh who urged Wipro to set up shop in other cities in Maharashatra. "We need your presence in every city - Kolhapur, Nagpur, Aurangabad and even Latur. The government will act as a facilitator to enable you to set up offices in these cities," Deshmukh said.
Wipro currently has 6,300 people in Pune operating from a 5,80,000 square feet campus at the Rajiv Gandhi Infotech Park Phase I at Hinjewadi and its new development centre at Phase II of the Hinjewadi Park. The IT major has also applied for 50 acre in Phase III of the Park, which is a notified special economic zone (SEZ).
With the addition of the new facility, Wipro will ramp up capacity to 17,000 people in Pune. Azim Premji, chairman, Wipro said: "We will invest Rs 375-400 crore over the next 3-5 years to develop this facility as we ramp up our headcount in Pune from 6,400 to 17,000 people." The overall employee base in five years will cross 1,60,000 people, he added.
The centre was inaugurated in the presence of Maharashtra Chief Minister Vilasrao Deshmukh who urged Wipro to set up shop in other cities in Maharashatra. "We need your presence in every city - Kolhapur, Nagpur, Aurangabad and even Latur. The government will act as a facilitator to enable you to set up offices in these cities," Deshmukh said.
Mahindra-Renault launch Logan
Fuelling competition in the Indian mid-size car market, Mahindra-Renault on Tuesday unveiled 'Logan' - an entry-level no frills sedan - with prices starting at Rs 4.28 lakh for the base petrol variant.
The joint venture company between India's Mahindra and Mahindra and French auto maker will be rolling out 50,000 units of Logan this year from Mahindra's Nashik facility set up at a cost of Rs 700 crore.
While the 1.4 litre petrol engine variant is priced at Rs 4.28 lakh (ex-showroom Mumbai), the 1.61 litre carries a price tag of Rs 5.69 lakh. The 1.5 litre diesel engine car, which has two variants, comes at a price of Rs 5.47 lakh to Rs 6.44 lakh.
Initially, Logan will hit the roads in the top 10 cities of the country in the second week of this month.
Read more in The Times of India article.
The joint venture company between India's Mahindra and Mahindra and French auto maker will be rolling out 50,000 units of Logan this year from Mahindra's Nashik facility set up at a cost of Rs 700 crore.
While the 1.4 litre petrol engine variant is priced at Rs 4.28 lakh (ex-showroom Mumbai), the 1.61 litre carries a price tag of Rs 5.69 lakh. The 1.5 litre diesel engine car, which has two variants, comes at a price of Rs 5.47 lakh to Rs 6.44 lakh.
Initially, Logan will hit the roads in the top 10 cities of the country in the second week of this month.
Read more in The Times of India article.
Monday, April 2, 2007
Wadias chart pan-India realty plan
Bombay Dyeing joint MD Ness Wadia says the group's real estate arm under him has drawn up plans to set up 30-40 shopping malls over the next five to seven years that will be spread across the country starting from Bangalore and Hyderabad to Delhi, Ahemdabad, Chandigarh and Kolkata. And each of them will be spread over 500,000 square feet with separate space for luxury brands. "We have tied up with some foreign luxury brands and are talking to some Indian players which can use space in our malls or we can jointly go to a third party,"Wadia told TOI.
As for the land, he says, the group will use some of the space that it already has and is talking to potential allies with whom it intends to tie-up. While the luxury brand spread is clear, Wadia says the other retail formats like hypermarkets is still being worked on.
Read more in The Times of India article.
As for the land, he says, the group will use some of the space that it already has and is talking to potential allies with whom it intends to tie-up. While the luxury brand spread is clear, Wadia says the other retail formats like hypermarkets is still being worked on.
Read more in The Times of India article.
Spice to sell 48 pc stake to MCorpGlobal
Mobile operator Spice Telecom's manufacturing arm Spice Ltd is going to sell its 48.23 per cent stake in Spice Systems Ltd (SSL) to B K Modi-controlled MCorpGlobal for Rs 10.59 crore.
The Board of Directors of Spice Ltd in a meeting held on March 31 approved the sale of 81.50 lakh shares, constituting 48.23 per cent holding in SSL, at Rs 13 per share, the company informed the BSE.
No other details of the deal were immediately made available in the communique to the stock exchange.Spice Ltd (formerly known as Spice Net) manufactures servers, PCs and other equipments while Spice Systems (SSL) is engaged in office automation.
The Board of Directors of Spice Ltd in a meeting held on March 31 approved the sale of 81.50 lakh shares, constituting 48.23 per cent holding in SSL, at Rs 13 per share, the company informed the BSE.
No other details of the deal were immediately made available in the communique to the stock exchange.Spice Ltd (formerly known as Spice Net) manufactures servers, PCs and other equipments while Spice Systems (SSL) is engaged in office automation.
Hershey is all set to enter Indian market
Chocolate and confectionery maker, The Hershey Company is finally set to enter the Indian market by acquiring the stakes in Mumbai-based Godrej Beverages and Foods (GBFL).
Godrej executives declined to comment on the matter, sources in the know said the deal between Hersheys and GBFL had been signed a while ago. Hersheys has acquired 51 per cent stakes in GBFL, acquiring 40 per cent stakes by IL&FS. The remaining stakes is expected to be acquired from Godrej Industries and A Mahendran, managing director, GBFL who also holds stake in the company. Post acquisition, Mahendran and Godrej Industries’ stake in GBFL will together come down to 49 per cent.
Read more in The Business Standard article.
Godrej executives declined to comment on the matter, sources in the know said the deal between Hersheys and GBFL had been signed a while ago. Hersheys has acquired 51 per cent stakes in GBFL, acquiring 40 per cent stakes by IL&FS. The remaining stakes is expected to be acquired from Godrej Industries and A Mahendran, managing director, GBFL who also holds stake in the company. Post acquisition, Mahendran and Godrej Industries’ stake in GBFL will together come down to 49 per cent.
Read more in The Business Standard article.
Tata Power eyes overseas for JV
Tata Power Company is looking to form a joint venture with an overseas electrical equipment manufacturing company just two days after ensuring coal linkage for its ultra mega power project (UMPP) in Mundra and other projects in Maharashtra through a billion dollar transaction.
Prasad Menon, managing director TPC, told ET that the company is in talks with some potential partners and that a deal will be finalised before June 2007. TPC, the country’s largest private power producer with 2,300 MW, is in talks with Japanese companies such as Hitachi, Mitsubishi and Toshiba, said sources close to the development.
They added that TPC is weighing several options including a possible joint venture manufacturing facility in India as the company plans over 10,000 mega watt (MW) greenfield projects across the country. Mr Menon refused to divulge the name of the company.
Recently, TPC’s tie up with Siemens had broken down because Siemens opted to keep away from the aggressive bid for UMPPs. TPC has tie up with Korea’s Doosan Heavy Industries and Construction Company for super critical boilers.
Read more in The Economic Times article.
Prasad Menon, managing director TPC, told ET that the company is in talks with some potential partners and that a deal will be finalised before June 2007. TPC, the country’s largest private power producer with 2,300 MW, is in talks with Japanese companies such as Hitachi, Mitsubishi and Toshiba, said sources close to the development.
They added that TPC is weighing several options including a possible joint venture manufacturing facility in India as the company plans over 10,000 mega watt (MW) greenfield projects across the country. Mr Menon refused to divulge the name of the company.
Recently, TPC’s tie up with Siemens had broken down because Siemens opted to keep away from the aggressive bid for UMPPs. TPC has tie up with Korea’s Doosan Heavy Industries and Construction Company for super critical boilers.
Read more in The Economic Times article.
RBI IMPACT: Sensex tanks 617pts
The Sensex opened with a huge negative gap of 260 points at 12,812 following the Reserve Bank of India (RBI) decision to hike the cash reserve ratio and repo rate last Friday.
Unabated selling, mainly in auto and banking stocks, saw the index drift to lower levels as the day progressed. The index tumbled to a low of 12,426 before finally settling with a hefty loss of 617 points (4.7%) at 12,455. In the process, the index today recorded its second-biggest loss ever in absolute terms.
The BSE Mid-cap index plunged 3.3% (175 points) to 5209, and the Small-cap index slumped 2.7% (176 points) to 6294. The Bankex and the auto index tumbled around 6% each to 6153 and 4570, respectively. The IT, Metal and Oil & Gas indices dropped around 4% each to 4673, 8132 and 6172, respectively.
The market breadth was fairly bearish - out of 2,546 stocks traded, 1,771 declined, 702 advanced and 73 were unchanged today.
Read more in The Business Standard article.
Unabated selling, mainly in auto and banking stocks, saw the index drift to lower levels as the day progressed. The index tumbled to a low of 12,426 before finally settling with a hefty loss of 617 points (4.7%) at 12,455. In the process, the index today recorded its second-biggest loss ever in absolute terms.
The BSE Mid-cap index plunged 3.3% (175 points) to 5209, and the Small-cap index slumped 2.7% (176 points) to 6294. The Bankex and the auto index tumbled around 6% each to 6153 and 4570, respectively. The IT, Metal and Oil & Gas indices dropped around 4% each to 4673, 8132 and 6172, respectively.
The market breadth was fairly bearish - out of 2,546 stocks traded, 1,771 declined, 702 advanced and 73 were unchanged today.
Read more in The Business Standard article.
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