Shares of country’s leading software exporter Infosys surged as much as 2.54% on the Bombay Stock Exchange after media reports that the software behemoth is planning to bid for European consultancy firm Capgemini.
Infosys scrip opened firm at Rs 1,951 and rallied ahead to touch a high of Rs 1,975 in early trading on the BSE, gaining as much as Rs 49.10 over its previous close.
However, the scrip of the company parted with some gains and was later trading at Rs 1952.30 at 10.34 am on BSE and over 68,000 shares got exchanged in early trade.
Yesterday, the French firm Capgemini’s scrip surged more than 4% on the Paris bourse over reports that Infosys Technologies is planning to acquire a stake in the company to expand its global presence.
Infosys has a market value of nearly $27 billion, while Capgemini has a market capitalisation of about 10 billion dollars (7.7 billion euro).
Friday, June 29, 2007
Fidelity buys efunds for $1.8 billion
The US-based Fidelity National Information Services (FIS), has acquired EFD/ eFunds Corporation in an all-cash deal valued at approximately $1.8 billion (around Rs 7,380 crore). Under the terms of the agreement, EFD shareholders will receive $36.50 in cash for each share of the common stock.
Both these companies have a presence in India. eFunds, headquartered in Gurgaon, has close to 4,000 employees in India. It also has a presence in Chennai and Bangalore.
Similarly, FIS has a presence in India since 2003. In February, FIS expanded its offshore presence in the country through the acquisition of California-based Second Foundation, a provider of offshore global information technology services.
As a result of the acquisition, Fidelity Business Solutions India now has centres in Bangalore and Chandigarh. This acquisition added close to 600 employees to FIS operations. FIS had close to 2,000 India- and Philippines-based staff contracted through strategic partners.
After the acquisition of Second Foundation, the company had said, “FIS plans to continue investing in the development of offshore capabilities to broaden its global service offerings and to reduce internal operating costs.”
Read more in The Business Standard article.
Both these companies have a presence in India. eFunds, headquartered in Gurgaon, has close to 4,000 employees in India. It also has a presence in Chennai and Bangalore.
Similarly, FIS has a presence in India since 2003. In February, FIS expanded its offshore presence in the country through the acquisition of California-based Second Foundation, a provider of offshore global information technology services.
As a result of the acquisition, Fidelity Business Solutions India now has centres in Bangalore and Chandigarh. This acquisition added close to 600 employees to FIS operations. FIS had close to 2,000 India- and Philippines-based staff contracted through strategic partners.
After the acquisition of Second Foundation, the company had said, “FIS plans to continue investing in the development of offshore capabilities to broaden its global service offerings and to reduce internal operating costs.”
Read more in The Business Standard article.
Saraswat Bank on a buying spree
The Mumbai-headquartered Saraswat Co-operative Bank is on a buying binge and plans to acquire seven co-operative banks by the end of the current financial year.
Saraswat Bank director Eknath Thakur told media persons on Thursday that talks are in the final stage with the Vadodara- (Gujarat) based Anyonya Co-operative Bank and a deal will be finalised ‘soon.’ He, however, did not name the six other banks in the acquisition list. “All of them are from Maharashtra, including the one from Pune,” he said, adding that the bank will effectively make 10 acquisitions this financial year to reach a member base of one lakh.
The two Sangli- (Maharashtara) based co-operative banks - Annasaheb Karale Janata Sahakari Bank and Murgharajendra Sahakari Bank - will be merged with Saraswat Bank this Saturday, he said.
While the former has 11 branches with a deposit base of Rs 79 crore and advances of Rs 57 crore, the latter has 11 branches, with a deposit base of Rs 70 crore and advances of Rs 53 crore. The two together have losses of about Rs 40 crore, Thakur said.
Post merger, Saraswat Bank will have 127 branches, a deposit base of Rs 9,039 crore and advances of Rs 6,493 crore, he said.
Saraswat Bank director Eknath Thakur told media persons on Thursday that talks are in the final stage with the Vadodara- (Gujarat) based Anyonya Co-operative Bank and a deal will be finalised ‘soon.’ He, however, did not name the six other banks in the acquisition list. “All of them are from Maharashtra, including the one from Pune,” he said, adding that the bank will effectively make 10 acquisitions this financial year to reach a member base of one lakh.
The two Sangli- (Maharashtara) based co-operative banks - Annasaheb Karale Janata Sahakari Bank and Murgharajendra Sahakari Bank - will be merged with Saraswat Bank this Saturday, he said.
While the former has 11 branches with a deposit base of Rs 79 crore and advances of Rs 57 crore, the latter has 11 branches, with a deposit base of Rs 70 crore and advances of Rs 53 crore. The two together have losses of about Rs 40 crore, Thakur said.
Post merger, Saraswat Bank will have 127 branches, a deposit base of Rs 9,039 crore and advances of Rs 6,493 crore, he said.
TCS close to acquiring 2 firms
The $4.3 billion Indian IT services provider, Tata Consulting Service (TCS), is close to acquiring two IT firms in Latin America.
The estimated value of these two firms is around Rs 200 crore. TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies.
Sources close to the development said that TCS was looking at one business process outsourcing (BPO) company and an IT services company.
These companies have a headcount of nearly 100 each. These acquisitions would enable TCS to outsource various business activities at much lower cost compared with other international locations.
TCS announced some time ago that it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico.
The estimated value of these two firms is around Rs 200 crore. TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies.
Sources close to the development said that TCS was looking at one business process outsourcing (BPO) company and an IT services company.
These companies have a headcount of nearly 100 each. These acquisitions would enable TCS to outsource various business activities at much lower cost compared with other international locations.
TCS announced some time ago that it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico.
IL&FS to wrap up $400 mn PE fund
IL&FS Investment Managers Limited (IIML), the publicly listed private equity arm of IL&FS, is set to close its $400 million fund by October 2007. It will have its first closure of $150 million by July-end and the remaining would be wrapped up by October.
This is IIML’s sixth fund and will be its largest fund after the $525 million real estate fund launched in 2006. With this $400 million fund, IIML is more than doubling its fund size from the earlier $153 million Leverage India Fund.
IIML had started the roadshows for this $400 million fund in September 2006. According to company sources, the investors in the Leverage India Fund such as Taib Bank of Bahrain and Punjab National Bank are investing in the fresh fund.
The new fund is expected to focus on late-stage funding for profitable, cash-generating companies. “IL&FS PE Fund has been lately focussing on the pre-IPO and private investments of listed companies (PIPE), which enable the fund to achieve early exit,” an industry analyst explained.
This is IIML’s sixth fund and will be its largest fund after the $525 million real estate fund launched in 2006. With this $400 million fund, IIML is more than doubling its fund size from the earlier $153 million Leverage India Fund.
IIML had started the roadshows for this $400 million fund in September 2006. According to company sources, the investors in the Leverage India Fund such as Taib Bank of Bahrain and Punjab National Bank are investing in the fresh fund.
The new fund is expected to focus on late-stage funding for profitable, cash-generating companies. “IL&FS PE Fund has been lately focussing on the pre-IPO and private investments of listed companies (PIPE), which enable the fund to achieve early exit,” an industry analyst explained.
Kesoram plans Rs1,200cr expansion
Basant Kumar Birla, chairman, B K Birla Group, announced an ambitious
investment plan of more than Rs 1,200 crore in the next two years for
cement and tyre manufacturing units of Kesoram Industries at
the annual general meeting of the company today.
The expansion plan will involve an investment of around Rs 650 crore in a
greenfield car tyre project near Haridwar in Uttarakhand with a production capacity of 250 million tonne.
The company plans to augment cement production by 5 million tonne by
adding another unit at the Vasvadatta Cement unit. The investment in the
project would be close to Rs 500 crore.
Of the Rs 1,200 crore lined up for expansion, nearly Rs 250 crore will be
raised through internal accruals, and the rest will be funded through debt
from financial institutions.
investment plan of more than Rs 1,200 crore in the next two years for
cement and tyre manufacturing units of Kesoram Industries at
the annual general meeting of the company today.
The expansion plan will involve an investment of around Rs 650 crore in a
greenfield car tyre project near Haridwar in Uttarakhand with a production capacity of 250 million tonne.
The company plans to augment cement production by 5 million tonne by
adding another unit at the Vasvadatta Cement unit. The investment in the
project would be close to Rs 500 crore.
Of the Rs 1,200 crore lined up for expansion, nearly Rs 250 crore will be
raised through internal accruals, and the rest will be funded through debt
from financial institutions.
Travelers may buy into HDFC Chubb
A high-level team from US insurer Travelers is in town to finalise a joint venture partner for non-life insurance. According to sources, the American insurer is in talks with HDFC to buy a 26% stake in HDFC Chubb General Insurance, following the buyout of Chubb’s stake by HDFC.
Travelers was spun off as an independent non-life insurer from Citigroup, which currently holds around 12% in HDFC. On Wednesday, HDFC chairman Deepak Parekh said that he expected to receive a premium for the 26% stake in HDFC Chubb General Insurance. “The partner will get the advantage of the HDFC brand, an existing business and infrastructure. So we do expect a premium for our stake,”
Mr Parekh added. HDFC has been allowed to use the HDFC Chubb name for two months. The corporation said that it expected to have a partner in place before the renaming. At present, Suresh Menon, general manager, Mumbai region, HDFC, has been appointed to the non-life insurance venture.
Travelers was spun off as an independent non-life insurer from Citigroup, which currently holds around 12% in HDFC. On Wednesday, HDFC chairman Deepak Parekh said that he expected to receive a premium for the 26% stake in HDFC Chubb General Insurance. “The partner will get the advantage of the HDFC brand, an existing business and infrastructure. So we do expect a premium for our stake,”
Mr Parekh added. HDFC has been allowed to use the HDFC Chubb name for two months. The corporation said that it expected to have a partner in place before the renaming. At present, Suresh Menon, general manager, Mumbai region, HDFC, has been appointed to the non-life insurance venture.
Jay Shree Tea share soars 5% on retail push
Jay Shree Tea shares surged over 5% on Friday after the company said it was in talks with retail majors to sell branded packaged tea through their outlets.
“We are talking to a few retail majors to sell our branded tea through their outlets. We have already tied up with Reliance Fresh,” RK Ganeriwala, president, Jay Shree Tea & Industries, was quoted as saying.
The stock ended 5.4% higher at Rs 114 with volume traded at 75,385 as against two-week average of 19,769 shares.
The company has installed the latest blending and packaging systems and will invest at least Rs 5-6 crore in modernising the existing packaging system, he said.
Shareholders passed resolutions for amalgamation of subsidiaries Birla Tea, Darjeeling Consolidated and Marionbari Tea. With consolidation of these subsidiaries, the company would produce more 12 lakh kg of tea including 6 lakh kg of high quality Darjeeling tea.
Read more in The Economic Times article.
“We are talking to a few retail majors to sell our branded tea through their outlets. We have already tied up with Reliance Fresh,” RK Ganeriwala, president, Jay Shree Tea & Industries, was quoted as saying.
The stock ended 5.4% higher at Rs 114 with volume traded at 75,385 as against two-week average of 19,769 shares.
The company has installed the latest blending and packaging systems and will invest at least Rs 5-6 crore in modernising the existing packaging system, he said.
Shareholders passed resolutions for amalgamation of subsidiaries Birla Tea, Darjeeling Consolidated and Marionbari Tea. With consolidation of these subsidiaries, the company would produce more 12 lakh kg of tea including 6 lakh kg of high quality Darjeeling tea.
Read more in The Economic Times article.
Brushman India to raise $30 mn
Brushman India on Friday said it will raise $30 million through the issue of securities in the domestic and international markets.
The board of directors at its meeting today approved the allotment of various securities including Global Depository Receipts, Foreign Currency Convertible Bonds and equity shares, subject to necessary provisions and approvals.
Pursuant to the shareholders approval the board has decided to borrow upto Rs 200 crore, subject to necessary approvals.
An Extra-ordinary General Meeting of the shareholders would be convened on July 25, to get their approval for the above.
The board of directors at its meeting today approved the allotment of various securities including Global Depository Receipts, Foreign Currency Convertible Bonds and equity shares, subject to necessary provisions and approvals.
Pursuant to the shareholders approval the board has decided to borrow upto Rs 200 crore, subject to necessary approvals.
An Extra-ordinary General Meeting of the shareholders would be convened on July 25, to get their approval for the above.
Gayatri Projects launches bonds issue
Gayatri Projects Ltd on Friday said it has launched yen 3,075 million unsecured zero coupon convertible bonds maturing in 2012. The company plans to use the proceeds for capital expenditure and investment in infrastructure projects and for international acquisitions.
The bonds have a yield to maturity of 3.75 per cent per annum and the conversion price is expected to be set at a premium of 25 per cent to the share price on the June 27-28 on Bombay Stock Exchange.
The bonds will be issued at par and redeemed 120.414 per cent of par on maturity. They will be listed on the Singapore Exchange. The issue closes on July 31.JP Morgan is the sole book runner and lead manager for the offering.
The bonds have a yield to maturity of 3.75 per cent per annum and the conversion price is expected to be set at a premium of 25 per cent to the share price on the June 27-28 on Bombay Stock Exchange.
The bonds will be issued at par and redeemed 120.414 per cent of par on maturity. They will be listed on the Singapore Exchange. The issue closes on July 31.JP Morgan is the sole book runner and lead manager for the offering.
RBI transfers SBI's stake to govt for Rs 35,531.33 cr
The government on Friday picked up Reserve Bank's entire 59.7 per cent stake in the country's largest lender State Bank of India.
"The entire shareholding of Reserve Bank aggregating 31.43 crore shares with face value of Rs 10 each in SBI was transferred to the Central Government today," SBI informed the Bombay Stock Exchange.
The deal was carried out on the last day of the RBI financial closure and shares of the SBI ended at Rs 1,525.30, up Rs 54.95 or 3.74 per cent, on the BSE.
Earlier, SBI had informed the bourses that the Centre would pick up 31.43 crore equity shares on June 29 for a cash payment of Rs 35,531.33 crore.
In Mumbai, SBI Chairman O P Bhatt had earlier said that government equity would be brought down to 51 per cent once necessary transfers of RBI's share in SBI to the government are completed.
The deal will not have revenue implications for the government since RBI is expected to transfer the surplus to the Centre during the first half of August.
"The entire shareholding of Reserve Bank aggregating 31.43 crore shares with face value of Rs 10 each in SBI was transferred to the Central Government today," SBI informed the Bombay Stock Exchange.
The deal was carried out on the last day of the RBI financial closure and shares of the SBI ended at Rs 1,525.30, up Rs 54.95 or 3.74 per cent, on the BSE.
Earlier, SBI had informed the bourses that the Centre would pick up 31.43 crore equity shares on June 29 for a cash payment of Rs 35,531.33 crore.
In Mumbai, SBI Chairman O P Bhatt had earlier said that government equity would be brought down to 51 per cent once necessary transfers of RBI's share in SBI to the government are completed.
The deal will not have revenue implications for the government since RBI is expected to transfer the surplus to the Centre during the first half of August.
Thursday, June 28, 2007
Spice IPO sold 37 times, BEML offer on a roll
Investors’ interest in Spice Communications’ initial public offering (IPO) picked up on the final day backed by qualified institutional investors as the issue was subscribed 37.554 times. Suryachakra Power Corporation, which has two more days to close, is yet to impress investors.
The Noida-based cellular operator’s public issue of over 113 million equity shares, which opened for subscription on the Bombay Stock Exchange (BSE) on Monday, received over 4,247 million bids, according to the BSE website. The issue is priced in the band of Rs 41-46 a share.
The public issue of Suryachakra Power Corporation, which opened for subscription on Monday for selling 34 million equity shares, received bids for 79 per cent of the shares on offer. The company received a total of 26.802 million bids.
The qualified institutional buyers’ (QIB) portion was subscribed 1.5124 times, while the retail portion was subscribed 0.1142 times. The non-institutional investor portion has not got any investors so far. The price band for the issue has been fixed at Rs 17-20 a share.
Meanwhile, mining and construction equipment major Bharat Earth Movers’ (BEML) follow-on public offer (FPO) opened for subscription today. I-Sec is the lead banker to the issue. The issue has already been subscribed 1.02 times.
The Noida-based cellular operator’s public issue of over 113 million equity shares, which opened for subscription on the Bombay Stock Exchange (BSE) on Monday, received over 4,247 million bids, according to the BSE website. The issue is priced in the band of Rs 41-46 a share.
The public issue of Suryachakra Power Corporation, which opened for subscription on Monday for selling 34 million equity shares, received bids for 79 per cent of the shares on offer. The company received a total of 26.802 million bids.
The qualified institutional buyers’ (QIB) portion was subscribed 1.5124 times, while the retail portion was subscribed 0.1142 times. The non-institutional investor portion has not got any investors so far. The price band for the issue has been fixed at Rs 17-20 a share.
Meanwhile, mining and construction equipment major Bharat Earth Movers’ (BEML) follow-on public offer (FPO) opened for subscription today. I-Sec is the lead banker to the issue. The issue has already been subscribed 1.02 times.
UTI Bank promoters plan fresh retail issue
The Specified Undertaking of Unit Trust of India (SUUTI) and the Life Insurance Corporation (LIC), the principal promoter shareholders of UTI Bank, want the bank management to give retail investors a chance to make further investments in the bank’s growth through subscription to fresh equity shares.
UTI Bank was planning to raise $600 million through a global depository receipts (GDR) issue and a simultaneous preferential offer to its promoters, which also include the General Insurance Corporation (GIC).
The bank, at its extraordinary general meeting on June 25, deferred its capital raising plans after both SUUTI, an entity carved out of the erstwhile Unit Trust of India, and LIC asked for more time to take a call on subscribing to the preferential offer. SUUTI is the largest shareholder in the bank with 27.43 per cent stake and LIC owns 10.38 per cent of the bank.
Read more in The Business Standard article
UTI Bank was planning to raise $600 million through a global depository receipts (GDR) issue and a simultaneous preferential offer to its promoters, which also include the General Insurance Corporation (GIC).
The bank, at its extraordinary general meeting on June 25, deferred its capital raising plans after both SUUTI, an entity carved out of the erstwhile Unit Trust of India, and LIC asked for more time to take a call on subscribing to the preferential offer. SUUTI is the largest shareholder in the bank with 27.43 per cent stake and LIC owns 10.38 per cent of the bank.
Read more in The Business Standard article
SBI stake sale by Dec; to float NBFC
State Bank of India (SBI) is likely to go for a stake sale by December as part of its efforts to mobilise Rs 50,000 crore in the next three years.
"We are awaiting amendment to the SBI Act. We should be able to go for a stake sale by December," chairman O P Bhatt told reporters today.
The bank will also form a non-banking financial company (NBFC) to manage its insurance and asset management businesses for which details are being worked out, Bhatt said.
Bhatt also said that the issue of preferential shares was another option for raising capital, and it would be also considered once the amendment is through.
Bhatt said SBI would be forming joint venture for the NBFC, and is looking at both Indian and foreign partners. Regarding its listing, Bhatt said the bank would not sell more than 10% as the main purpose of the sale would be price discovery.
Read more in The Business Standard article.
"We are awaiting amendment to the SBI Act. We should be able to go for a stake sale by December," chairman O P Bhatt told reporters today.
The bank will also form a non-banking financial company (NBFC) to manage its insurance and asset management businesses for which details are being worked out, Bhatt said.
Bhatt also said that the issue of preferential shares was another option for raising capital, and it would be also considered once the amendment is through.
Bhatt said SBI would be forming joint venture for the NBFC, and is looking at both Indian and foreign partners. Regarding its listing, Bhatt said the bank would not sell more than 10% as the main purpose of the sale would be price discovery.
Read more in The Business Standard article.
Meghmani Organics IPO lists at 75% premium
Meghmani Organics Ltd. listed on the stock exchanges Thursday. It opened at Rs 33.25 on the National Stock Exchange, a premium of 75% to the issue price of Rs 19. The low was Rs 26.
The six crore share-public offer was subscribed 23.94 times. The price band of the issue was Rs 17-Rs 19 per share of Re 1 each.The issue was subscribed 44.75 times by non-institutional investors. Of the 3.60 crore shares on offer, qualified institutional buyers applied 19.43 times, while retail investors subscribed the balance 26.01 times.
The objects of the issue included financing a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli.
The company will also use the proceeds to invest in Meghmani Energy, finance a 3MW captive power plant at Chharodi, Gujarat, for diversification opportunities and working capital requirements.
The six crore share-public offer was subscribed 23.94 times. The price band of the issue was Rs 17-Rs 19 per share of Re 1 each.The issue was subscribed 44.75 times by non-institutional investors. Of the 3.60 crore shares on offer, qualified institutional buyers applied 19.43 times, while retail investors subscribed the balance 26.01 times.
The objects of the issue included financing a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli.
The company will also use the proceeds to invest in Meghmani Energy, finance a 3MW captive power plant at Chharodi, Gujarat, for diversification opportunities and working capital requirements.
HDFC to place 7% equity with Citi,CMP Asia
Housing Development Finance Corporation Ltd will issue total 1.8 crore shares or 7.11 per cent equity to Citigroup Strategic Holdings Mauritius and CMP Asia of the Carlyle group. The preferential allotment was cleared by shareholders at the annual general meeting Wednesday.
The shares will be allotted at Rs 1,730 each, a discount of Rs 152 to the current market price of Rs 1,882 on the National Stock Exchange. The stock is today up nearly 1 per cent over Wednesday.
Citigroup Strategic Holdings Mauritius already holds 9.15% equity in HDFC. Post -allotment, its stake will rise to 9.55 per cent. CMP Asia will hold 5.63 per cent post allotment, against nil now.
Read more in The Economic Times article.
The shares will be allotted at Rs 1,730 each, a discount of Rs 152 to the current market price of Rs 1,882 on the National Stock Exchange. The stock is today up nearly 1 per cent over Wednesday.
Citigroup Strategic Holdings Mauritius already holds 9.15% equity in HDFC. Post -allotment, its stake will rise to 9.55 per cent. CMP Asia will hold 5.63 per cent post allotment, against nil now.
Read more in The Economic Times article.
Standard Life to up stake in HDFC JV to 26%
UK-based life insurance company Standard Life will increase its stake in HDFC Standard Life Insurance Company to 26% from 14%.
The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.
Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''
HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
Read more in The Business Standard article.
The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.
Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''
HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
Read more in The Business Standard article.
Wednesday, June 27, 2007
Kazakh firm makes open offer for 20 pc stake in Petron
Kazakhstan-based oil and gas services firm KazStroyService Plc has made an open offer to shareholders of Petron Engineering for acquiring a 20 per cent stake in the latter for Rs 27.13 crore.
The offer is to acquire 1,507,680 fully paid up equity shares, representing 20 per cent of the outstanding equity shares (with voting rights) at Rs 180 each, Petron Engineering told the BSE today.The offer would open on August 14 and would close on September 3, it added.
On June 19, promoters of Petron Engineering Construction had said that they have decided to sell their controlling stake to a Kazakh firm for an undisclosed amount.KazStroyServices Plc, bought the stake from Petron Investments, the holding company of Petron Engineering with 52.22 per cent stake.Shares of Petron Engineering closed at Rs 185.25, down 2.06 per cent on the BSE.
The offer is to acquire 1,507,680 fully paid up equity shares, representing 20 per cent of the outstanding equity shares (with voting rights) at Rs 180 each, Petron Engineering told the BSE today.The offer would open on August 14 and would close on September 3, it added.
On June 19, promoters of Petron Engineering Construction had said that they have decided to sell their controlling stake to a Kazakh firm for an undisclosed amount.KazStroyServices Plc, bought the stake from Petron Investments, the holding company of Petron Engineering with 52.22 per cent stake.Shares of Petron Engineering closed at Rs 185.25, down 2.06 per cent on the BSE.
IDFC to raise $500 mn via QIP route
The Infrastructure Development Finance Company (IDFC), the nation’s biggest infrastructure lender, has roped in Citigroup, UBS, Kotak Mahindra and JM Financial, to raise $500 million through share issuances to foreign and domestic institutions early next month.
This will be the biggest ever fund mobilisation through the Qualified Institutional Placement (QIP) route, after GVK Power & Infrastructure’s $300 million, handled by Kotak Mahindra, Citigroup and SSKI, and the $240 million issue by Max India, which was lead managed by CLSA.
IDFC’s roadshows for the QIP issue will start in the first week of July, said sources close to the development. The funds will be used to meet the growing demand from companies and the government to build ports, roads, power projects and other utilities.In the last eight months, 18 firms have raised more than Rs 4,500 crore ($1.09 billion) through the QIP route.
Read more in The Business Standard article.
This will be the biggest ever fund mobilisation through the Qualified Institutional Placement (QIP) route, after GVK Power & Infrastructure’s $300 million, handled by Kotak Mahindra, Citigroup and SSKI, and the $240 million issue by Max India, which was lead managed by CLSA.
IDFC’s roadshows for the QIP issue will start in the first week of July, said sources close to the development. The funds will be used to meet the growing demand from companies and the government to build ports, roads, power projects and other utilities.In the last eight months, 18 firms have raised more than Rs 4,500 crore ($1.09 billion) through the QIP route.
Read more in The Business Standard article.
BoB, Andhra Bank in insurance venture talk
Bank of Baroda (BoB) has initiated discussions with the Hyderabad-based Andhra Bank to form a tripartite venture to foray into life insurance, officials close to the development said.
BoB has already signed a memorandum of understanding with the UK-based insurer Legal & General for the proposed life insurance company.BoB will hold 50 per cent stake in the joint venture, while Legal & General will have 26 per cent, the maximum permissible limit for a foreign insurer in India.
“According to the proposal from BoB that came last month, Andhra Bank can hold 24 per cent in the joint venture,” an official said.When contacted, Andhra Bank Chairman and Managing Director K Ramakrishnan said, “I do not want to comment on the issue at this stage.” BoB officials were not available for comment. The insurance venture will have an initial capital of about Rs 200 crore.
According to the Reserve Bank of India’s guidelines, public sector banks are not allowed to hold more than 51 per cent in an insurance venture.Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Read more in The Business Standard article.
BoB has already signed a memorandum of understanding with the UK-based insurer Legal & General for the proposed life insurance company.BoB will hold 50 per cent stake in the joint venture, while Legal & General will have 26 per cent, the maximum permissible limit for a foreign insurer in India.
“According to the proposal from BoB that came last month, Andhra Bank can hold 24 per cent in the joint venture,” an official said.When contacted, Andhra Bank Chairman and Managing Director K Ramakrishnan said, “I do not want to comment on the issue at this stage.” BoB officials were not available for comment. The insurance venture will have an initial capital of about Rs 200 crore.
According to the Reserve Bank of India’s guidelines, public sector banks are not allowed to hold more than 51 per cent in an insurance venture.Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Read more in The Business Standard article.
Shekhar Kapur to raise $500mn in S'pore
Shekhar Kapur, the director of Oscar-nominated film Elizabeth, is in talks to raise a $500 million fund in Singapore to invest in the entertainment industry, including movies and music across Asia.
Investors in Singapore were more willing to bet on businesses that might take a longer period of time to make a profit, unlike hedge funds or private equity firms, the Indian director said in an interview in Singapore.
Kapur aims to capitalise on rapid economic growth in Asia, home to 3.8 billion people, or 60 per cent of the global population. In India, the second-fastest growing major economy after China, he directed Bandit Queen in 1994, a controversial film that gained international attention when it was banned by the Indian government.
Startup companies with innovative ideas and technology needed time to nurture their businesses, said Andrew Craissati, a former investment banker and chief executive officer of the US-based Transpac Media, which advises companies on listing on the London Stock Exchange’s Alternative Investment Market (AIM).
Read more in The Business Standard article.
Investors in Singapore were more willing to bet on businesses that might take a longer period of time to make a profit, unlike hedge funds or private equity firms, the Indian director said in an interview in Singapore.
Kapur aims to capitalise on rapid economic growth in Asia, home to 3.8 billion people, or 60 per cent of the global population. In India, the second-fastest growing major economy after China, he directed Bandit Queen in 1994, a controversial film that gained international attention when it was banned by the Indian government.
Startup companies with innovative ideas and technology needed time to nurture their businesses, said Andrew Craissati, a former investment banker and chief executive officer of the US-based Transpac Media, which advises companies on listing on the London Stock Exchange’s Alternative Investment Market (AIM).
Read more in The Business Standard article.
Strides $100mn FCCB conversion at 145% prem
Strides Arcolab today announced that the company has successfully completed the issue and allotment of $100 million 'zero coupon convertible bonds due 2012'.
According to a release issued by Strides to the BSE today, the bonds to be listed at the Singapore Exchange, have been issued at an initial conversion price of Rs 461.55 per share with a fixed rate of exchange on conversion of Rs 40.70 = $1. The yield to maturity has been set at 7.575% and the bonds will be redeemed at 145% premium to its yesterday's closig price on BSE.
According to a release issued by Strides to the BSE today, the bonds to be listed at the Singapore Exchange, have been issued at an initial conversion price of Rs 461.55 per share with a fixed rate of exchange on conversion of Rs 40.70 = $1. The yield to maturity has been set at 7.575% and the bonds will be redeemed at 145% premium to its yesterday's closig price on BSE.
PTC India board nod to raising Rs 1,200cr
The board of directors of PTC India have approved a proposal raise Rs 1,200 crore for expansion of the company's existing business.
According to a release issued by PTC to the BSE today, the board after agreeing have recommeded the matter to the next AGM for necessary enhancement of equity base.
According to a release issued by PTC to the BSE today, the board after agreeing have recommeded the matter to the next AGM for necessary enhancement of equity base.
Nelcast lists at 15% premium to issue price
Nelcast Ltd. listed at Rs 252 at a 15% premium on the NSE against issue price of Rs 219 per share. At 10:21 AM, the scrip was at Rs 221.40, up Rs 2.40 or 1.10% on the NSE with volume of 16,97,197 shares. So far, it rose to a high of Rs 274 and low of Rs 215.
The company has raised Rs 95.26 crore from its public issue of 43.50-lakh shares of face value Rs 10 each. The IPO, which was open from June 4-8, was subscribed 7.36 times.
Nelcast caters mainly to commercial vehicle and tractor industries. It plans to use the issue proceeds for expansion and modernisation of its iron casting units at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu, to reach a production capacity of 1,50,000 MT per annum by 2008-09.
The company’s customer base includes Tata Motors, Ashok Leyland, Eicher Motors, Tata Cummins, Mahindra and Mahindra, TAFE, International Tractors and New Holland India. It exports to the US, Europe and Australia, its client list comprising Arvin Meritor, Volvo, SIGMA and Dobbie Dico Meter.
The company has raised Rs 95.26 crore from its public issue of 43.50-lakh shares of face value Rs 10 each. The IPO, which was open from June 4-8, was subscribed 7.36 times.
Nelcast caters mainly to commercial vehicle and tractor industries. It plans to use the issue proceeds for expansion and modernisation of its iron casting units at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu, to reach a production capacity of 1,50,000 MT per annum by 2008-09.
The company’s customer base includes Tata Motors, Ashok Leyland, Eicher Motors, Tata Cummins, Mahindra and Mahindra, TAFE, International Tractors and New Holland India. It exports to the US, Europe and Australia, its client list comprising Arvin Meritor, Volvo, SIGMA and Dobbie Dico Meter.
GAIL, China Gas to form gas joint venture
GAIL (India) Ltd. and China Gas Holdings Ltd. will form a joint venture to pursue gas sector business opportunities in India, China and other countries, a GAIL statement said on Tuesday.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
"Subsequently, more projects shall be identified and implemented by joint venture. Project specific joint ventures will be formed along with local governments/companies, wherever it is required," the statement said.
"GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful," it added.In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
"Subsequently, more projects shall be identified and implemented by joint venture. Project specific joint ventures will be formed along with local governments/companies, wherever it is required," the statement said.
"GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful," it added.In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest.
Tuesday, June 26, 2007
Unitech to raise $2-3 bn overseas to fund projects, expansion
Unitech Ltd, the second largest real estate firm in India by market capitalization, is looking to float a Real Estate Investment Trust (Reit) in an overseas market to raise $2-3 billion (about Rs8,000-12,000 crore) to meet its expansion plans.
Unitech and its investment arm will sell a stake in the six special purpose vehicles (SPV) that currently own six commercial properties to the Reit.
This trust could likely be listed in Singapore, though Hong Kong or the London Stock Exchange are also options, R. Nagaraju, general manager, corporate planning, Unitech, said.
The Reit will be listed in the later half of 2008, after a portion of the construction work in each of the various projects is completed.Reits, common in several developed countries, use money from investors to purchase and manage property. They are traded on major exchanges just like stocks. They are also granted special tax considerations and enable sharing in non-residential properties as well, such as hotels, malls, and other commercial or industrial properties that yield rental income. Much of the income from the properties owned by Reits is shared among its investors.
Unitech’s Reit will acquire a 60% stake in each of the six SPV’s created for the six commercial projects that Unitech is developing,. This stake is currently held by Unitech Corporate Parks Plc.
Read more in The Livemint article.
Unitech and its investment arm will sell a stake in the six special purpose vehicles (SPV) that currently own six commercial properties to the Reit.
This trust could likely be listed in Singapore, though Hong Kong or the London Stock Exchange are also options, R. Nagaraju, general manager, corporate planning, Unitech, said.
The Reit will be listed in the later half of 2008, after a portion of the construction work in each of the various projects is completed.Reits, common in several developed countries, use money from investors to purchase and manage property. They are traded on major exchanges just like stocks. They are also granted special tax considerations and enable sharing in non-residential properties as well, such as hotels, malls, and other commercial or industrial properties that yield rental income. Much of the income from the properties owned by Reits is shared among its investors.
Unitech’s Reit will acquire a 60% stake in each of the six SPV’s created for the six commercial projects that Unitech is developing,. This stake is currently held by Unitech Corporate Parks Plc.
Read more in The Livemint article.
Onmobile plans Rs 600 cr IPO
The Bangalore-based value-added services (VAS) provider OnMobile is planning to tap the capital market with an initial public offering (IPO) of Rs 500-600 crore.
The company’s maiden offer is expected to open during the current financial year and it intends to invest the proceeds for its foray into the Wireless Application Protocol (WAP) and General Packet Radio Service (GPRS) segments.The company is gearing up to become an end-to-end VAS solution provider, according to sources close to the development.
If OnMobile succeeds in raises around Rs 500 crore, it will be the one of the largest IPOs in the VAS sector. The company, headed by its founder and CEO Arvind Rao, is believed to be posting annual revenues of around $50 million (around Rs 210 crore).According to industry analysts, the company has an estimated value of around $300 million (around Rs 1,250 crore).
The company was incubated by Infosys Technologies in 2000, and at present the IT major holds a 14 per cent stake in it.Global investment banking majors Deutsche Bank and Goldman Sachs, the UK-based private investment firm Polygon Investment Partners and venture capital firm Argo Global Capital are the other investors in the company. However, the percentage of stakeholding could not be ascertained.
Read more in The Business Standard article.
The company’s maiden offer is expected to open during the current financial year and it intends to invest the proceeds for its foray into the Wireless Application Protocol (WAP) and General Packet Radio Service (GPRS) segments.The company is gearing up to become an end-to-end VAS solution provider, according to sources close to the development.
If OnMobile succeeds in raises around Rs 500 crore, it will be the one of the largest IPOs in the VAS sector. The company, headed by its founder and CEO Arvind Rao, is believed to be posting annual revenues of around $50 million (around Rs 210 crore).According to industry analysts, the company has an estimated value of around $300 million (around Rs 1,250 crore).
The company was incubated by Infosys Technologies in 2000, and at present the IT major holds a 14 per cent stake in it.Global investment banking majors Deutsche Bank and Goldman Sachs, the UK-based private investment firm Polygon Investment Partners and venture capital firm Argo Global Capital are the other investors in the company. However, the percentage of stakeholding could not be ascertained.
Read more in The Business Standard article.
UTI Bank puts off $600m GDR
UTI Bank, a mid-sized private sector bank, has deferred its $600 million global depository receipts (GDR) issue as well as the simultaneous preferential offer to its promoters.
The bank said the decision to put off capital raising plans was taken in order to provide promoter shareholders - Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation and General Insurance Corporation - more time to take a call on subscribing to the preferential offer.
SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake. LIC owns 10.38 per cent of the bank’s equity and GIC 2.38 per cent.
In a statement released after the bank’s extraordinary general meeting (EGM) here today, UTI Bank said the special resolutions on raising capital have been deferred “to provide promoter shareholders further time for consultation” on the preferential share offer.
The shareholders would again meet on July 13 to consider the plans to raise capital. The shareholders, however, passed a resolution increasing the bank’s authorised capital to Rs 500 crore from Rs 300 crore.
Banking sources said LIC, which bid in the recently concluded ICICI Bank’s follow-on equity offer for shares worth about Rs 4,000 crore, has asked for more time to arrange for funds as it was currently experiencing a “tight liquidity” situation.
SUUTI, which has already obtained the government’s permission, also needs to arrange for funds to subscribe to its portion of the preferential offer.
Read more in The Business Standard article.
The bank said the decision to put off capital raising plans was taken in order to provide promoter shareholders - Specified Undertaking of Unit Trust of India (SUUTI), Life Insurance Corporation and General Insurance Corporation - more time to take a call on subscribing to the preferential offer.
SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake. LIC owns 10.38 per cent of the bank’s equity and GIC 2.38 per cent.
In a statement released after the bank’s extraordinary general meeting (EGM) here today, UTI Bank said the special resolutions on raising capital have been deferred “to provide promoter shareholders further time for consultation” on the preferential share offer.
The shareholders would again meet on July 13 to consider the plans to raise capital. The shareholders, however, passed a resolution increasing the bank’s authorised capital to Rs 500 crore from Rs 300 crore.
Banking sources said LIC, which bid in the recently concluded ICICI Bank’s follow-on equity offer for shares worth about Rs 4,000 crore, has asked for more time to arrange for funds as it was currently experiencing a “tight liquidity” situation.
SUUTI, which has already obtained the government’s permission, also needs to arrange for funds to subscribe to its portion of the preferential offer.
Read more in The Business Standard article.
ICICI Bank, Sterlite mop up $4 bn from US in a week
Two Indian companies, including the country's largest private lender ICICI Bank, have raised over four billion dollars last week from the US market.ICICI Bank, in the biggest offering by an Indian company, raised $4.3 billion in a global follow-on issue, half of which was in the form of American Depository Shares.
The ADS issue of 42.14 billion, including a green shoe option of $0.32 billion, was priced at $49.25 each, translating into a price of about Rs 1,002.5 per equity share and representing a premium of about 6.6 per cent over the domestic issue price.Each ADS represents two equity shares of the Bank.
Earlier, Vedanta group's Sterlite Industries, a non-ferrous metal and mining firm, raised $1.75 billion through an initial public offering on the NYSE.Each ADS represents one equity share of the firm and the were priced at $13.44 each.
Combining ICICI Bank's 42.46 billion offer and 41.75 billion of Sterlite Industries India Ltd, the two firms have mopped up over four billion dollars from the US market.
The ADS issue of 42.14 billion, including a green shoe option of $0.32 billion, was priced at $49.25 each, translating into a price of about Rs 1,002.5 per equity share and representing a premium of about 6.6 per cent over the domestic issue price.Each ADS represents two equity shares of the Bank.
Earlier, Vedanta group's Sterlite Industries, a non-ferrous metal and mining firm, raised $1.75 billion through an initial public offering on the NYSE.Each ADS represents one equity share of the firm and the were priced at $13.44 each.
Combining ICICI Bank's 42.46 billion offer and 41.75 billion of Sterlite Industries India Ltd, the two firms have mopped up over four billion dollars from the US market.
3i Infotech prices $100 mn FCCBs at Rs 331.87/share
3i Infotech Ltd has priced its foreign currency convertible bonds offering of $100 million at Rs 331.87 per share.
The zero coupon FCCBs are proposed to be listed on the Singapore Stock Exchange and are convertible after five years, the company said in a notice to the BSE Tuesday.
At Rs 331.87 per share, the FCCBs are at a premium of 10% to the closing price on National Stock Exchange Monday (June 25). The FCCBs will be redeemable on expiry at a yield to maturity of 7.05%.
"3i Infotech is looking at achieving leadership position in the BFSI solutions space. Proceeds of this FCCB offering will be used to further fuel our expansion plans in the coming years," V Srinivasan, managing director and CEO was quoted as saying in the notice.
The zero coupon FCCBs are proposed to be listed on the Singapore Stock Exchange and are convertible after five years, the company said in a notice to the BSE Tuesday.
At Rs 331.87 per share, the FCCBs are at a premium of 10% to the closing price on National Stock Exchange Monday (June 25). The FCCBs will be redeemable on expiry at a yield to maturity of 7.05%.
"3i Infotech is looking at achieving leadership position in the BFSI solutions space. Proceeds of this FCCB offering will be used to further fuel our expansion plans in the coming years," V Srinivasan, managing director and CEO was quoted as saying in the notice.
Saudi Telecom buys 25% of Maxis for $ 3 bn
Saudi Telecom Co, the largest phone company in Saudi Arabia, bought 25 per cent of Malaysia's biggest mobile-phone operator Maxis Communications Bhd to reach out to more subscribers.
Saudi Telecom paid 11.4 billion riyals ($3 billion) for the acquisition, its first major foreign purchase, the company said on Tuesday in a statement posted on the Saudi stock market Web site.
The transaction would value Maxis at about $12 billion. Maxis is controlled by T Ananda Krishnan, Malaysia's second-richest man.
Read more in The Economic Times article.
Saudi Telecom paid 11.4 billion riyals ($3 billion) for the acquisition, its first major foreign purchase, the company said on Tuesday in a statement posted on the Saudi stock market Web site.
The transaction would value Maxis at about $12 billion. Maxis is controlled by T Ananda Krishnan, Malaysia's second-richest man.
Read more in The Economic Times article.
Jet FY-08 net dips 94 pc; to raise $400 mn
Private carrier Jet Airways India, which recently acquired rival Air Sahara, on Tuesday posted a 93.8 per cent dip in net profit at Rs 27.94 crore for the fiscal ended March 31, as compared to Rs 452.04 crore in the previous year.
The carrier's total income increased 21.5 per cent to Rs 7,401.31 crore for the fiscal from Rs 6,087.57 crore a year ago, it informed the Bombay Stock Exchange (BSE).Jet Airways' net profit for the fourth quarter ended March 31 declined 61.24 per cent at Rs 88.01 crore, as compared to Rs 227.12 crore for the same period last year.
The fund raising comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.
The airline chief Naresh Goyal had earlier said all necessary government clearances for JetLite have been received. The company might operate JetLite on international sectors in future.
Read more in The Economic Times article.
The carrier's total income increased 21.5 per cent to Rs 7,401.31 crore for the fiscal from Rs 6,087.57 crore a year ago, it informed the Bombay Stock Exchange (BSE).Jet Airways' net profit for the fourth quarter ended March 31 declined 61.24 per cent at Rs 88.01 crore, as compared to Rs 227.12 crore for the same period last year.
The fund raising comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.
The airline chief Naresh Goyal had earlier said all necessary government clearances for JetLite have been received. The company might operate JetLite on international sectors in future.
Read more in The Economic Times article.
IDFC to double stake in brokerage SSKI
Infrastructure Development Finance Company Ltd will raise its equity interest in brokerage SSKI to 66.67% from 33.33%.
IDFC and SSKI propose to pool their resources and expertise to provide investment banking and capital markets solutions, especially to infrastructure clients, the company said in a notice to BSE.IDFC share closed at Rs 131.45 on the BSE, up 1.15% from Monday's close.
IDFC and SSKI propose to pool their resources and expertise to provide investment banking and capital markets solutions, especially to infrastructure clients, the company said in a notice to BSE.IDFC share closed at Rs 131.45 on the BSE, up 1.15% from Monday's close.
Monday, June 25, 2007
Zydus Cadila acquires Brazilian firm Nikkho
Zydus Cadila said on 25 June it has signed an agreement for acquiring 100% stake in the Brazilian firm, Nikkho, to mark its foray into Brazil’s branded generics market.
“Nikkho’s well entrenched presence will help Zydus Cadila in launching ‘branded speciality’ products aggressively across Brazil and enable it to step up the registration process of several molecules,” Zydus Cadila chairman and managing director Pankaj R Patel said in a release.
He said the foray in the branded generics segment is expected to fetch better margins and earnings.The acquisition is being made through Zydus Healthcare Brasil Limitada, a wholly owned subsidiary of Cadila Healthcare but the company, however, did not disclose the investment being made in the process.
Read more in The Livemint article.
“Nikkho’s well entrenched presence will help Zydus Cadila in launching ‘branded speciality’ products aggressively across Brazil and enable it to step up the registration process of several molecules,” Zydus Cadila chairman and managing director Pankaj R Patel said in a release.
He said the foray in the branded generics segment is expected to fetch better margins and earnings.The acquisition is being made through Zydus Healthcare Brasil Limitada, a wholly owned subsidiary of Cadila Healthcare but the company, however, did not disclose the investment being made in the process.
Read more in The Livemint article.
BEML fixes FPO price band at Rs1,020-1,090
Bharat Earth Movers Ltd (BEML) on 25 June announced a price band of Rs1,020-1,090 for its follow-on public issue to mop up upto Rs534 crore, to fund expansion and diversification plans.
The price band has been fixed at a discount to the scrip’s market price of Rs1,144 at 3pm on 25 June on the National Stock Exchange.BEML chairman and managing director V R S Natarajan said the price-band was “reasonably kept” keeping in mind the interests of retail investors.
BEML’s follow-on public offer of 4.9 million shares opens on 27 June and would constitute the company’s 11.77% of the fully diluted post-issue paid-up equity capital.The defence public sector undertaking posted 8.58% increase in net profit at Rs93.51 crore for the fourth quarter ended 31 March, against Rs86.12 crore for the same period last year.
Read more in The Livemint article.
The price band has been fixed at a discount to the scrip’s market price of Rs1,144 at 3pm on 25 June on the National Stock Exchange.BEML chairman and managing director V R S Natarajan said the price-band was “reasonably kept” keeping in mind the interests of retail investors.
BEML’s follow-on public offer of 4.9 million shares opens on 27 June and would constitute the company’s 11.77% of the fully diluted post-issue paid-up equity capital.The defence public sector undertaking posted 8.58% increase in net profit at Rs93.51 crore for the fourth quarter ended 31 March, against Rs86.12 crore for the same period last year.
Read more in The Livemint article.
Govt nixes ICICI plan to sell stake in arm
ICICI Bank, India’s second largest lender that raised a record $4.9 billion in follow-on share sale last week, said its plan to sell a 5.9% stake in a subsidiary has failed to get the government’s nod.
The bank had aimed to raise about $650 million from the stake sale in ICICI Financial Services Ltd, a fully owned subsidiary that has controlling holdings in insurance and asset management ventures.The unit holds 74% each of ICICI Prudential Life Insurance Co. and ICICI Lombard General Insurance Co. It also owns 51% each of ICICI Prudential Asset Management Co. and in ICICI Prudential Trust Ltd.
ICICI Bank said it had not yet received an official communication from the Foreign Investment Promotion Board, but added the deal would be terminated if the approval failed to materialise within a mutually agreed date.It did not disclose who the buyers were nor the date.
Local media said Goldman Sachs and other foreign funds were interested in buying the stake.They also cited this as the reason why the approval failed to come through because of a government rule that limits foreign holding in insurance ventures at 26%.
The bank had aimed to raise about $650 million from the stake sale in ICICI Financial Services Ltd, a fully owned subsidiary that has controlling holdings in insurance and asset management ventures.The unit holds 74% each of ICICI Prudential Life Insurance Co. and ICICI Lombard General Insurance Co. It also owns 51% each of ICICI Prudential Asset Management Co. and in ICICI Prudential Trust Ltd.
ICICI Bank said it had not yet received an official communication from the Foreign Investment Promotion Board, but added the deal would be terminated if the approval failed to materialise within a mutually agreed date.It did not disclose who the buyers were nor the date.
Local media said Goldman Sachs and other foreign funds were interested in buying the stake.They also cited this as the reason why the approval failed to come through because of a government rule that limits foreign holding in insurance ventures at 26%.
IndusInd Bank raises $50mn
IndusInd Bank today got a $50 million credit line from Wachovia Bank.
"The funds under this credit line will be utilised for providing trade related financing. The arrangement also cuts the lead time for fund availability generally associated with loan syndications," said Moses Harding, executive vice president and head of wholesale banking group, Indusind Bank.
IndusInd Bank has representative offices in Dubai and London, and has entered into strategic alliances with Union National Bank in the UAE and Doha Bank in Qatar. The bank also has arrangements with sixteen exchange houses in UAE, Kuwait, Bahrain, and Oman to provide convenient, cost-effective, and quick fund transfer facilities to non-resident Indians.
"The funds under this credit line will be utilised for providing trade related financing. The arrangement also cuts the lead time for fund availability generally associated with loan syndications," said Moses Harding, executive vice president and head of wholesale banking group, Indusind Bank.
IndusInd Bank has representative offices in Dubai and London, and has entered into strategic alliances with Union National Bank in the UAE and Doha Bank in Qatar. The bank also has arrangements with sixteen exchange houses in UAE, Kuwait, Bahrain, and Oman to provide convenient, cost-effective, and quick fund transfer facilities to non-resident Indians.
Charter makes 20% open offer for Esab India
London-based Charter has made an open offer to the shareholders of Esab India for acquiring 20% stake in the engineering firm for Rs 131.14 crore.
A Charter subsidiary has made an offer for acquiring 3,078,604 fully paid up equity shares in Esab India representing 20% stake at Rs 426 per share, the company said in a filing to the London Stock Exchange.
According to Esab India's shareholding pattern as of March 31, Charter holds 5,743,200 shares amounting to 37.31% in in the company through a subsidiary, Esab Holdings.With this offer, Charter's shareholding in Esab India would increase to 57.3%, subject to the regulatory approvals.
Shares of Esab India, which is engaged in the business of welding consumables and equipments, closed at Rs 460.35, up by 8.8% on the BSE today.
London-based Charter owns two international engineering businesses through a number of intermediate companies - Esab, which is a global welding company, and Howden, a global leader in the manufacture of air and gas handling equipment.
A Charter subsidiary has made an offer for acquiring 3,078,604 fully paid up equity shares in Esab India representing 20% stake at Rs 426 per share, the company said in a filing to the London Stock Exchange.
According to Esab India's shareholding pattern as of March 31, Charter holds 5,743,200 shares amounting to 37.31% in in the company through a subsidiary, Esab Holdings.With this offer, Charter's shareholding in Esab India would increase to 57.3%, subject to the regulatory approvals.
Shares of Esab India, which is engaged in the business of welding consumables and equipments, closed at Rs 460.35, up by 8.8% on the BSE today.
London-based Charter owns two international engineering businesses through a number of intermediate companies - Esab, which is a global welding company, and Howden, a global leader in the manufacture of air and gas handling equipment.
Everonn IPO in Rs 125-140/shr band
Chennai-based education and learning solutions company Everonn Systems India is tapping the capital markets with a public issue of Rs 50 crore. The price band has been fixed between Rs 125 and Rs 140 per share of Rs 10 each.
With a current authorised capital of 16 million shares and paid-up capital of 10.28 million shares, the company will increase its issued shares by 35.71 lakh at the lower end of the IPO band and 40 lakh shares at the upper end. The company plans listings on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The issue will open on July 5, 2007, and close on July 11, 2007.
Everonn Systems has budgeted an outlay of Rs 30 crore for IT infrastructure services. Out of the IPO proceeds, the company will allocate Rs 17.25 crore towards capital expenditure for virtual and tech-enabled learning solutions, and Rs 8 crore has been earmarked for mergers and acquisitions during 2007-08, Rs 5 crore for working capital, while brand building and investments in the company’s proposed subsidiary will be taken up with the rest of the funds.
Read more in The Business Standard article.
With a current authorised capital of 16 million shares and paid-up capital of 10.28 million shares, the company will increase its issued shares by 35.71 lakh at the lower end of the IPO band and 40 lakh shares at the upper end. The company plans listings on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The issue will open on July 5, 2007, and close on July 11, 2007.
Everonn Systems has budgeted an outlay of Rs 30 crore for IT infrastructure services. Out of the IPO proceeds, the company will allocate Rs 17.25 crore towards capital expenditure for virtual and tech-enabled learning solutions, and Rs 8 crore has been earmarked for mergers and acquisitions during 2007-08, Rs 5 crore for working capital, while brand building and investments in the company’s proposed subsidiary will be taken up with the rest of the funds.
Read more in The Business Standard article.
NSDL, CDSL tie-up with US depository DTCC
The Depository Trust & Clearing Corporation (DTCC), the world's largest depository based in New York, has signed separate agreements with the National Securities Depository (NSDL) and the Central Depository Services (CDSL), India's two leading depositories, for information sharing and to exchange clearing and settlement data.
The deals signed by DTCC, which provides custody and asset servicing for 2.8 million security issues from the United States and 100 other countries and territories valued at $36 trillion, is the first of this sort by a global depository company in India.
The pacts also gains importance in view of the recent government regulations allowing foreign players to pick upto 26% in stock market infrastructure companies such as domestic depositories.
The financial sector, including stock exchanges and brokerages, are attracting huge foreign interest for strategic investment. Industry experts feel global players are already exploring opportunities to invest in depositories.
Read more in The Business Standard article.
The deals signed by DTCC, which provides custody and asset servicing for 2.8 million security issues from the United States and 100 other countries and territories valued at $36 trillion, is the first of this sort by a global depository company in India.
The pacts also gains importance in view of the recent government regulations allowing foreign players to pick upto 26% in stock market infrastructure companies such as domestic depositories.
The financial sector, including stock exchanges and brokerages, are attracting huge foreign interest for strategic investment. Industry experts feel global players are already exploring opportunities to invest in depositories.
Read more in The Business Standard article.
Gujarat NRE unit's A$15mn IPO fully subscribed
The initial public offering (IPO) of India NRE Minerals, a subsidiary of Gujarat NRE Coke, of 30 million shares at A$ 0.50 each aggregating A$ 15 million has closed with full subscription.
"This is a major reason for us to celebrate," Arun Kumar Jagatramka, vice chairman & managing director, Gujarat NRE Coke said. "The issue also marks the entry of Indian retail investors, perhaps for the first time on such a scale, who have overwhelmingly responded to our call to come on board the flagship in the making of the NRE group in Australia."
India NRE Minerals owns and operates the NRE No 1 colliery with proven resources of more than 300 million tonne in the southern coalfields of New South Wales. The mine re-commenced production in September 2005 since when it has produced over 6,00,000 tonne of coking coal that has been exported to India.
"The current issue was floated to raise funds for the commencement of long wall mining, which is supported by external technical consultants with a view to ramp up production from the current level of one MTPA to over four MTPA.Gujarat NRE Coke would continue to hold more than 90% stake in India NRE Minerals even after the IPO.
"This is a major reason for us to celebrate," Arun Kumar Jagatramka, vice chairman & managing director, Gujarat NRE Coke said. "The issue also marks the entry of Indian retail investors, perhaps for the first time on such a scale, who have overwhelmingly responded to our call to come on board the flagship in the making of the NRE group in Australia."
India NRE Minerals owns and operates the NRE No 1 colliery with proven resources of more than 300 million tonne in the southern coalfields of New South Wales. The mine re-commenced production in September 2005 since when it has produced over 6,00,000 tonne of coking coal that has been exported to India.
"The current issue was floated to raise funds for the commencement of long wall mining, which is supported by external technical consultants with a view to ramp up production from the current level of one MTPA to over four MTPA.Gujarat NRE Coke would continue to hold more than 90% stake in India NRE Minerals even after the IPO.
Spice Comm IPO opens today
Spice Communications Ltd’s initial public offer opens on Monday. The company is offering 11.31-crore equity shares of Rs 10 each through the 100% book building route. The price band has been fixed between Rs 41 and Rs 46 per share. The issue constitutes 16.39% of the fully diluted post-issue equity share capital of the company.
The book running lead managers to the issue are Enam Financial Consultants and UBS Securities India.The issue closes Friday.At least 60% of the issue will be allocated to qualified institutional buyers, up to 30% to retail investors and up to 10% to non-institutional investors.
The IPO proceeds will be mainly utilised towards repayment of debt, payment of license fee for national long distance and international long distance services and related capital expenditures. The funds will also be used for payment to vendors for network equipments and other capital expenditures.
The company recently concluded a pre-IPO placement of 2.4 crore shares at Rs 45 per share, raising about Rs 112 crore. Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom.
Read more in The Economic Times article.
The book running lead managers to the issue are Enam Financial Consultants and UBS Securities India.The issue closes Friday.At least 60% of the issue will be allocated to qualified institutional buyers, up to 30% to retail investors and up to 10% to non-institutional investors.
The IPO proceeds will be mainly utilised towards repayment of debt, payment of license fee for national long distance and international long distance services and related capital expenditures. The funds will also be used for payment to vendors for network equipments and other capital expenditures.
The company recently concluded a pre-IPO placement of 2.4 crore shares at Rs 45 per share, raising about Rs 112 crore. Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom.
Read more in The Economic Times article.
Minda close to acquiring 51% stake in Australia co
Auto component maker Ashok Minda Group is close to acquiring a 51% stake in Australian company NTS Global for around Rs 70 crore. This will be the group’s third acquisition in the last 18 months. The group is also considering consolidation of its operations into a single holding company.
The new company, to be re-christened as Minda NTS (MNTS), will set-up its greenfield tooling operations in India and another greenfield unit in Germany. Besides catering to Minda’s in-house tooling requirements, the company will also look at servicing other original equipment manufacturers (OEMs).
The Ashok Minda Group, with revenues of around $200 million is growing at a CAGR of over 40%. Over the past 18 months, the group has forged three joint ventures with Stoneridge, USA; Silca, Italy; Kaba, Switzerland. In addition, it has acquired a controlling stake in Valeo of France and in KTSN, a plastic injection company in Germany. It also bought back the 36.75% stake of its German partner Huf in its flagship company Minda Huf .
Read more in The Economic Times article.
The new company, to be re-christened as Minda NTS (MNTS), will set-up its greenfield tooling operations in India and another greenfield unit in Germany. Besides catering to Minda’s in-house tooling requirements, the company will also look at servicing other original equipment manufacturers (OEMs).
The Ashok Minda Group, with revenues of around $200 million is growing at a CAGR of over 40%. Over the past 18 months, the group has forged three joint ventures with Stoneridge, USA; Silca, Italy; Kaba, Switzerland. In addition, it has acquired a controlling stake in Valeo of France and in KTSN, a plastic injection company in Germany. It also bought back the 36.75% stake of its German partner Huf in its flagship company Minda Huf .
Read more in The Economic Times article.
United Spirits allots shares upon FCCB conversion
Vijay Mallya-led United Spirits on Monday said it has allotted over 5.79 lakh equity shares upon conversion of 10,190 Foreign Currency Convertible Bonds (FCCBs) for Rs 45.27 crore.
The committee of directors alloted 5,79,692 equity shares of Rs 10 each, upon conversion of 10,190 bonds at Rs 781 per share, United Spirits said in a communique to the Bombay Stock Exchange (BSE).
The FCCBs were converted at a fixed rate of exchange of Rs 44.43 per dollar.Earlier on March 24, the company had launched an FCCB issue of 100 million dollar due on 2011. Of these, United Spirits has received conversion notices in respect of 10,190 bonds aggregating to 10,190,000 dollar from the bond holders.
Consequent to the allotment, the total issued and paid-up equity capital of the company stands increased to Rs 95.93 crore from Rs 95.36 crore.Shares of the company were trading at Rs 1,222, up 3.30 per cent on BSE in early morning trade.
The committee of directors alloted 5,79,692 equity shares of Rs 10 each, upon conversion of 10,190 bonds at Rs 781 per share, United Spirits said in a communique to the Bombay Stock Exchange (BSE).
The FCCBs were converted at a fixed rate of exchange of Rs 44.43 per dollar.Earlier on March 24, the company had launched an FCCB issue of 100 million dollar due on 2011. Of these, United Spirits has received conversion notices in respect of 10,190 bonds aggregating to 10,190,000 dollar from the bond holders.
Consequent to the allotment, the total issued and paid-up equity capital of the company stands increased to Rs 95.93 crore from Rs 95.36 crore.Shares of the company were trading at Rs 1,222, up 3.30 per cent on BSE in early morning trade.
ICICI Bank prices Follow-on issue at Rs 940 per share
ICICI Bank Ltd on Monday said it has priced its recently concluded follow-on issue at Rs 940 per equity share. The Rs 8,750-crore issue was made at an offer price of Rs 885-950 per share and was open from June 19-22.
At 10:51AM, ICICI Bank shares were down nearly 1 per cent at Rs 944.50 on the Bombay Stock Exchange in line with the general weakness in banking shares. So far, the stock has seen a high of Rs 960 and low of Rs 940 with volume traded at 42,306 against two-week average of 3,96,524 shares.
The issue price represents a premium of 3.6 per cent to the average closing price since the announcement of the issue on April 28.
The bank’s American depositary share offering of $ 2.14 billion has been priced at $ 49.25 per ADS, which amounts to Rs 1,002.5 per equity share. It represents a premium of 6.6 per cent over the domestic issue price.
The ADS offering, which represents two equity shares of the bank, has a green shoe option of $ 0.32 billion.
At 10:51AM, ICICI Bank shares were down nearly 1 per cent at Rs 944.50 on the Bombay Stock Exchange in line with the general weakness in banking shares. So far, the stock has seen a high of Rs 960 and low of Rs 940 with volume traded at 42,306 against two-week average of 3,96,524 shares.
The issue price represents a premium of 3.6 per cent to the average closing price since the announcement of the issue on April 28.
The bank’s American depositary share offering of $ 2.14 billion has been priced at $ 49.25 per ADS, which amounts to Rs 1,002.5 per equity share. It represents a premium of 6.6 per cent over the domestic issue price.
The ADS offering, which represents two equity shares of the bank, has a green shoe option of $ 0.32 billion.
Friday, June 22, 2007
Bank of India acquires 76% in Indonesian bank
Public sector lender Bank of India said on 22 June it has acquired a 76% stake in Indonesia-based PT Bank Swadesi for an undisclosed amount.The bank has signed an acquisition deed for acquiring majority stake in PT Bank Swadesi, BoI said in a communique to the Bombay Stock Exchange.
This is the first overseas acquisition by BoI, which has a representative office in Jakarta, and is expected to enhance its international operations in Indonesia.
Bank Swadesi is a mid-sized bank, operating in Indonesia for the last 38 years and has 16 outlets. Bank Swadesi has a licence for forex business and is listed on the Jakarta Stock Exchange.
Earlier in 11 December 2006, BoI had said that it would acquire 76% stake PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.
The acquisition would be completed after obtaining approval or confirmations from Bank Indonesia and capital market regulators in Indonesia, BoI had said.
This would be the second acquisition of a bank in Indonesia by an Indian lender after State Bank of India bought 76% stake in Bank Indomonex.BoI shares were trading at Rs223.50, up 3.40%, in afternoon trade on BSE.
This is the first overseas acquisition by BoI, which has a representative office in Jakarta, and is expected to enhance its international operations in Indonesia.
Bank Swadesi is a mid-sized bank, operating in Indonesia for the last 38 years and has 16 outlets. Bank Swadesi has a licence for forex business and is listed on the Jakarta Stock Exchange.
Earlier in 11 December 2006, BoI had said that it would acquire 76% stake PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.
The acquisition would be completed after obtaining approval or confirmations from Bank Indonesia and capital market regulators in Indonesia, BoI had said.
This would be the second acquisition of a bank in Indonesia by an Indian lender after State Bank of India bought 76% stake in Bank Indomonex.BoI shares were trading at Rs223.50, up 3.40%, in afternoon trade on BSE.
Singapore’s Temasek, GIC set to raise stakes in ICICI Bank
Temasek Holdings and the Government of Singapore Investment Corp. (GIC), two investment arms of Singapore, have made aggressive bids for the ICICI Bank Ltd’s public issue that was subscribed 5.18 times on the third day.
The per-share pricing of the issue is expected on Friday after it closes.
Temasek, through its investment arm, Allamanda Investments, already has a 7.34% stake in the bank, while GIC has a 2.24% stake.Temasek and GIC’s combined stake will go well beyond 10% after the issue.
Under the Indian banking law, no single entity is allowed to hold more than 10% stake in a bank. Until recently, the Indian central bank was treating Temasek and GIC as one entity as both of them are Singapore government’s arms and did not allow them to hold more than 10% in the bank, jointly.
For the domestic part of ICICI Bank’s issue, the qualified institutional buyers subscribed 10.38 times on Thursday, but the retail portion was subscribed only 10.27%.Retail investors trickled in on the third day of the issue, putting in bids for 3.37 crore shares against 32.8 crore reserved for them.
Read more in The Livemint article.
The per-share pricing of the issue is expected on Friday after it closes.
Temasek, through its investment arm, Allamanda Investments, already has a 7.34% stake in the bank, while GIC has a 2.24% stake.Temasek and GIC’s combined stake will go well beyond 10% after the issue.
Under the Indian banking law, no single entity is allowed to hold more than 10% stake in a bank. Until recently, the Indian central bank was treating Temasek and GIC as one entity as both of them are Singapore government’s arms and did not allow them to hold more than 10% in the bank, jointly.
For the domestic part of ICICI Bank’s issue, the qualified institutional buyers subscribed 10.38 times on Thursday, but the retail portion was subscribed only 10.27%.Retail investors trickled in on the third day of the issue, putting in bids for 3.37 crore shares against 32.8 crore reserved for them.
Read more in The Livemint article.
Rolta India raises $150 mn in global market
Rolta India said on 22 June it has raised $150 million (Rs600 crore) through the issue of foreign currency convertible bonds (FCCBs) in international markets.
The company would issue 1,500 FCCBs of $1,00,000 each. The FCCBs are expected to be listed in Singapore, the company informed the Bombay Stock Exchange.
Conversion price for the FCCBs is Rs737.40 per share, which is at a premium of 50% over the 21 June closing of the company’s share on National Stock Exchange.The company has entered into subscription agreement with the arrangers and bookrunners, Lehman Brothers International (Europe).Shares of the company were trading at Rs474.40, down 3.54% on BSE in early morning trade.
Read more in The Livemint article.
The company would issue 1,500 FCCBs of $1,00,000 each. The FCCBs are expected to be listed in Singapore, the company informed the Bombay Stock Exchange.
Conversion price for the FCCBs is Rs737.40 per share, which is at a premium of 50% over the 21 June closing of the company’s share on National Stock Exchange.The company has entered into subscription agreement with the arrangers and bookrunners, Lehman Brothers International (Europe).Shares of the company were trading at Rs474.40, down 3.54% on BSE in early morning trade.
Read more in The Livemint article.
ICICI Bank FPO gets over 100 cr bids
India's largest private sector lender ICICI Bank on Friday received over 100 crore bids, exceeding the total issue size of over 9.88 crore shares by over 10 times.
The Follow-on-Public Offer (FPO) has been subscribed 10.53 times receiving bids for over 104.13 crore shares on the last day of the bidding process, latest data available with stock exchanges show.
The company could raise over Rs 9,000 crore from the issue, if it sells the shares at the higher end of the price band of Rs 885-950 a share.The FPO is a part of the company's plan to raise about five billion dollars from the issue of equity shares in domestic and international markets.
The issue, which opened on June 19, was fully subscribed soon after the bidding began and would close at the end of working hours today.Investment bankers had expected the last day to be marked with higher subscriptions from retail investors, taking a cue from strong demand by institutional investors.
The Follow-on-Public Offer (FPO) has been subscribed 10.53 times receiving bids for over 104.13 crore shares on the last day of the bidding process, latest data available with stock exchanges show.
The company could raise over Rs 9,000 crore from the issue, if it sells the shares at the higher end of the price band of Rs 885-950 a share.The FPO is a part of the company's plan to raise about five billion dollars from the issue of equity shares in domestic and international markets.
The issue, which opened on June 19, was fully subscribed soon after the bidding began and would close at the end of working hours today.Investment bankers had expected the last day to be marked with higher subscriptions from retail investors, taking a cue from strong demand by institutional investors.
Sterlite raises over 2 bn dlr in US
Vedanta group flagship Sterlite Industries on Friday said it has raised over two billion dollar (about Rs 8,215 crore) through an initial public offering in the US, including the over allotment option.
The American Depository Shares (ADSs) were priced at 13.44 dollar each, resulting in gross proceeds of 2,016 million dollar from the offering, the Anil Agarwal-led metals and mining company said in a communique to the Bombay Stock Exchange (BSE).The underwriters, joint global coordinators and bookrunners for the American Depository Shares (ADSs) offering exercised over allotment option to purchase additional 1.96 crore equity shares.
With the exercise of the over-allotment option, the total number of ADSs issued by the company in the offering increased to 15 crore and this would represent around 21.2 per cent interest in the company.The company on June 19 said it has raised 1.75 billion dollars (about Rs 7,000 crore) through the initial public offering in the US.
Read more in The Economic Times article.
The American Depository Shares (ADSs) were priced at 13.44 dollar each, resulting in gross proceeds of 2,016 million dollar from the offering, the Anil Agarwal-led metals and mining company said in a communique to the Bombay Stock Exchange (BSE).The underwriters, joint global coordinators and bookrunners for the American Depository Shares (ADSs) offering exercised over allotment option to purchase additional 1.96 crore equity shares.
With the exercise of the over-allotment option, the total number of ADSs issued by the company in the offering increased to 15 crore and this would represent around 21.2 per cent interest in the company.The company on June 19 said it has raised 1.75 billion dollars (about Rs 7,000 crore) through the initial public offering in the US.
Read more in The Economic Times article.
UTI Bank hires Citi, Goldman for $600 mn GDR
UTI Bank Ltd has hired Citigroup and Goldman Sachs to handle its $600 million global depository receipt sale at the end of June, a person familiar with the matter said on Friday, 22 June.
UTI Bank, which on 1 June said it would issue up to 42.4 million new shares, will be selling up to 13% of its enlarged share capital, the source said.Analysts say the funds from the offering will be used to meet capital requirements, as UTI Bank and most lenders in India are facing huge loan demand.
UTI Bank shares have risen nearly 31% this year, outperforming a 5% increase in India’s benchmark index.Indian lenders have some of Asia’s biggest fund-raising plans this year, with top private bank ICICI Bank selling up to $4.9 billion worth of shares and smaller rival HDFC Bank planning a $1 billion offering.
Two teams of bankers will pitch UTI Bank’s deal to investors in the United States, Asia and Europe, with books opening on 26 June and pricing expected for 29 June, the source said.
UTI Bank, which on 1 June said it would issue up to 42.4 million new shares, will be selling up to 13% of its enlarged share capital, the source said.Analysts say the funds from the offering will be used to meet capital requirements, as UTI Bank and most lenders in India are facing huge loan demand.
UTI Bank shares have risen nearly 31% this year, outperforming a 5% increase in India’s benchmark index.Indian lenders have some of Asia’s biggest fund-raising plans this year, with top private bank ICICI Bank selling up to $4.9 billion worth of shares and smaller rival HDFC Bank planning a $1 billion offering.
Two teams of bankers will pitch UTI Bank’s deal to investors in the United States, Asia and Europe, with books opening on 26 June and pricing expected for 29 June, the source said.
ICICI Bank FPO subscribed 11.38 times
The follow-on public offer (FPO) of ICICI Bank has been subscribed 11.38 times, according to data on the website of the National Stock Exchange.
The offer of 9.88 crore shares in the price band of Rs 885-950 per share received bids for 112.48 crore shares.
The maximum bids (for over 67 crore shares) have been made at the top end of the offer - i.e at Rs 950 per share.
The offer of 9.88 crore shares in the price band of Rs 885-950 per share received bids for 112.48 crore shares.
The maximum bids (for over 67 crore shares) have been made at the top end of the offer - i.e at Rs 950 per share.
Thursday, June 21, 2007
Max India plans acquisitions in contract research, insurance
Insurance and health-care firm Max India Ltd said it secured a Rs300 crore investment commitment from International Finance Corp. (IFC), the private investment arm of the World Bank, for its Max Healthcare unit. The company has raised another Rs1,000 crore from the market to fuel expansion of its insurance business.
Max, which is promoted by entrepreneur Analjit Singh, plans acquisitions in contract research as well as health insurance, while adding two hospitals a year to its network. The group plans to acquire contract research organizations in the US and Europe to bolster its existing operation, Neeman Medical International.A Ficci-Ernst & Young study pegged the clinical trials market as rising to $1.27 billion (Rs5,207 crore) worldwide in 2012 with profit margins of 20-25%
Read more in The Livemint article.
Max, which is promoted by entrepreneur Analjit Singh, plans acquisitions in contract research as well as health insurance, while adding two hospitals a year to its network. The group plans to acquire contract research organizations in the US and Europe to bolster its existing operation, Neeman Medical International.A Ficci-Ernst & Young study pegged the clinical trials market as rising to $1.27 billion (Rs5,207 crore) worldwide in 2012 with profit margins of 20-25%
Read more in The Livemint article.
Blackstone gets ready for public debut
Blackstone Group LP, the private-equity powerhouse that controls corporate names like Universal Studios Orlando and cable operator Adelphia Communications, is just hours away from finalising terms to bring the firm public.
The nation's second-largest buyout fund, run by billionaires' Stephen Schwarzman and Peter G. Peterson, will spend Thursday monitoring investor appetite for what will likely be one of the biggest initial public offerings in US history. The 17 investment banks underwriting the deal will spend most of the day trying to determine if there's enough demand for the stock to hike its offering price.
Blackstone's IPO is expected to raise between $3.87 billion and $4.14 billion, with shares expected to sell for $29 to $31 before they begin trading Friday on the New York Stock Exchange. If it comes in at the high end of the range, it will be the sixth-largest US offering of all time and the biggest in nearly five years, according to Renaissance Capital and IPOHome.com.
Read more in The Economic Times article.
The nation's second-largest buyout fund, run by billionaires' Stephen Schwarzman and Peter G. Peterson, will spend Thursday monitoring investor appetite for what will likely be one of the biggest initial public offerings in US history. The 17 investment banks underwriting the deal will spend most of the day trying to determine if there's enough demand for the stock to hike its offering price.
Blackstone's IPO is expected to raise between $3.87 billion and $4.14 billion, with shares expected to sell for $29 to $31 before they begin trading Friday on the New York Stock Exchange. If it comes in at the high end of the range, it will be the sixth-largest US offering of all time and the biggest in nearly five years, according to Renaissance Capital and IPOHome.com.
Read more in The Economic Times article.
Cabinet nod to Mittal stake buy in HPCL unit
Hindustan Petroleum Corporation shares were up 4.20 per cent at Rs 274 on the BSE, after the Cabinet Committee on Economic Affairs approved the proposal allowing steel baron Lakshmi Mittal to pick up 49 per cent stake in the state-run oil refiner’s Bhatinda unit.
The petroleum ministry had approached the Cabinet panel for project-specific approval to Mittal Investments Sarl for the stake sale as currently foreign direct investment in petroleum refineries of public sector units is allowed only up to 26%.
The current policy also restricts PSU holding to 26% in such projects and makes it mandatory for the balance 48% to be offered to public. END
The petroleum ministry had approached the Cabinet panel for project-specific approval to Mittal Investments Sarl for the stake sale as currently foreign direct investment in petroleum refineries of public sector units is allowed only up to 26%.
The current policy also restricts PSU holding to 26% in such projects and makes it mandatory for the balance 48% to be offered to public. END
GAIL, IOC enters JV for gas distribution
Gail (India) Ltd has forged a joint venture with Indian Oil Corporation (IOC) for gas distribution in Kolkata and other towns, chairman and managing director of the company U D Choubey said on Thursday.
Choubey told reporters the new company would be incorporated shortly, and the estimated investment would be around Rs 500 crore.GAIL and IOC would hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent).
Choubey said gas distribution would be possible only after completion of Jagdishpur-Haldia pipeline in 2011.In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression. He said piped natural gas was cheaper than LPG sold in cylinders.
Choubey told reporters the new company would be incorporated shortly, and the estimated investment would be around Rs 500 crore.GAIL and IOC would hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent).
Choubey said gas distribution would be possible only after completion of Jagdishpur-Haldia pipeline in 2011.In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression. He said piped natural gas was cheaper than LPG sold in cylinders.
Labindia Instruments sells 49% stake in PerkinElmer India
US-based scientific instruments maker PerkinElmer has acquired the 49% stake held by its Indian joint venture partner Labindia Instruments in PerkinElmer India for an undisclosed amount. The 51:49 joint venture was formed three years back and is believed to be clocking revenues of more than Rs 100 crore.
PerkinElmer is engaged in the area of designing, manufacturing, marketing and servicing products and systems for life and analytical sciences and optoelectronics.The company has just roped in Jay Shankar as the new country head for its wholly owned Indian subsidiary. He was earlier working with Novartis Healthcare where he led its global services organisation.
The Indian subsidiary currently employs about 170 people in Bangalore, Baroda, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune and Thane.
PerkinElmer is engaged in the area of designing, manufacturing, marketing and servicing products and systems for life and analytical sciences and optoelectronics.The company has just roped in Jay Shankar as the new country head for its wholly owned Indian subsidiary. He was earlier working with Novartis Healthcare where he led its global services organisation.
The Indian subsidiary currently employs about 170 people in Bangalore, Baroda, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune and Thane.
HDIL IPO to raise Rs 1,485 cr from mkt
Housing Development and Infrastructure (HDIL) on Thursday announced that it will enter the capital markets with an Initial Public Offering (IPO) to raise upto Rs 1,485 crore to part finance land acquisition for development of its ongoing projects.
The 100 per cent book building issue, to be opened from June 28-July 3, would offer 2.97 crore equity shares of Rs 10 each at a price band of Rs 430-500 each.
“Of the total, there will be a green shoe option of up to 44.5 lakh equity shares while six lakh shares would be reserved for eligible employees,” HDIL Group Advisor B M Chaturvedi said here.
The net issue would constitute 13.86 per cent of the fully-diluted post-issue equity capital of the company. However, if the green shoe option is also fully exercised, the dilution could be up to 15.65 per cent.
Kotak Mahindra Capital Company and Enam Financial Consultants are the global coordinators and book-running lead managers to the issue.
The 100 per cent book building issue, to be opened from June 28-July 3, would offer 2.97 crore equity shares of Rs 10 each at a price band of Rs 430-500 each.
“Of the total, there will be a green shoe option of up to 44.5 lakh equity shares while six lakh shares would be reserved for eligible employees,” HDIL Group Advisor B M Chaturvedi said here.
The net issue would constitute 13.86 per cent of the fully-diluted post-issue equity capital of the company. However, if the green shoe option is also fully exercised, the dilution could be up to 15.65 per cent.
Kotak Mahindra Capital Company and Enam Financial Consultants are the global coordinators and book-running lead managers to the issue.
Wednesday, June 20, 2007
Tata Motors to raise $ 450 mn from intl mkt
Tata Motors on Wednesday said it will raise 450 million dollars (Rs 1,832 crore) from the international market to meet product development expenditure and fund other corporate projects.
The committee of directors, at its meeting today gave in principle approval, for raising of additional long term resources of 450 million dollars, excluding green shoe option, by issue of appropriate securities in the international markets, Tata Motors told the Bombay Stock Exchange.
Tata Motors recently launched a mass transport passenger vehicle - Magic, developed on the platform of its popular mini truck Ace and a higher capacity van - Winger.
The company plans to roll out more variants in the commercial passenger vehicle segment and plans to invest Rs 5,000-6,000 crore over the next three years in the segment.
Shares of Tata Motors closed at Rs 686.90, up 3.53 per cent on the BSE.
The committee of directors, at its meeting today gave in principle approval, for raising of additional long term resources of 450 million dollars, excluding green shoe option, by issue of appropriate securities in the international markets, Tata Motors told the Bombay Stock Exchange.
Tata Motors recently launched a mass transport passenger vehicle - Magic, developed on the platform of its popular mini truck Ace and a higher capacity van - Winger.
The company plans to roll out more variants in the commercial passenger vehicle segment and plans to invest Rs 5,000-6,000 crore over the next three years in the segment.
Shares of Tata Motors closed at Rs 686.90, up 3.53 per cent on the BSE.
Batliboi buys 70% in French firm for Rs90 mn
Engineering firm Batliboi Ltd today bought a majority stake in French firm AESA Air Engineering to gain access to technology and newer markets, sending its shares soaring.
Batliboi, paid Rs90 million for 70% in loss-making AESA, an Industrial airconditoning maker, chairman Nirmal Bhogilal told reporters.AESA, now 30% owned by employees, is expected to break even in 2007 on revenue of Rs1billion, up from Rs700 million a year ago, he said.
Batliboi’s shares extended gains to touch a high of Rs118.40 on the news. The shares ended 7.1% up at Rs116 in a firm Mumbai market.“There were only two big Western firms left in this space and we needed a global footprint,” Bhogilal said. “AESA gives us the brand and the network.” Batliboi makes machine tools, industrial airconditions and sells textile machinery.
Read more in The Livemint article.
Batliboi, paid Rs90 million for 70% in loss-making AESA, an Industrial airconditoning maker, chairman Nirmal Bhogilal told reporters.AESA, now 30% owned by employees, is expected to break even in 2007 on revenue of Rs1billion, up from Rs700 million a year ago, he said.
Batliboi’s shares extended gains to touch a high of Rs118.40 on the news. The shares ended 7.1% up at Rs116 in a firm Mumbai market.“There were only two big Western firms left in this space and we needed a global footprint,” Bhogilal said. “AESA gives us the brand and the network.” Batliboi makes machine tools, industrial airconditions and sells textile machinery.
Read more in The Livemint article.
WNS, Accenture join race for Citi`s BPO arm
The race for Citigroup Global Services, the business process outsourcing arm (BPO) of Citigroup is hotting up with the entry of the BPO firm WNS and consultancy firm Accenture.
Sources close to the development said these were the latest entrants into the fray. The list of suitors includes IBM, Automatic Data Processing (ADS), Infosys, EDS, Genpact, Capgemini and private equity players such as Blackstone and General Atlantic. A Citigroup spokesperson declined to comment.
Although there was no official confirmation on the impending sale of Citigroup’s business processing arm, sources in the know said Citi might receive Rs 3,000 crore from divesting this non-core area of its business.
Sources said Citigroup might sell 80 per cent stake in the BPO firm currently and pull out at the time of listing after divestment. Citigroup might induct a strategic partner for the BPO arm, they added.
Citigroup Global Services, which changed its name from e-Serve in November, employs close to 8,000 people in Mumbai and Chennai.
Read more in The Business Standard article.
Sources close to the development said these were the latest entrants into the fray. The list of suitors includes IBM, Automatic Data Processing (ADS), Infosys, EDS, Genpact, Capgemini and private equity players such as Blackstone and General Atlantic. A Citigroup spokesperson declined to comment.
Although there was no official confirmation on the impending sale of Citigroup’s business processing arm, sources in the know said Citi might receive Rs 3,000 crore from divesting this non-core area of its business.
Sources said Citigroup might sell 80 per cent stake in the BPO firm currently and pull out at the time of listing after divestment. Citigroup might induct a strategic partner for the BPO arm, they added.
Citigroup Global Services, which changed its name from e-Serve in November, employs close to 8,000 people in Mumbai and Chennai.
Read more in The Business Standard article.
Roman Tarmat IPO subscribed 29 times over
The initial public offer (IPO) of infrastructure developer Roman Tarmat was subscribed 29.67 times, receiving 8.60 crore bids for the 29 lakh shares.
The qualified institutional buyers (QIB) portion of the issue, comprising of 14 lakh shares, received around 3.85 crore bids, subscribing the portion reserved for them by over 27 times, data available on the National Stock Exchange showed.
Foreign institutional investors (FII) pitched with 2.86 crore bids, while mutual funds bid for 20 lakh shares.The company had fixed the price band at Rs 150-175 per share.
The IPO also got a huge response from retail investors and non-institutional investors, as the allocated segments were subscribed 21 and 62 times respectively.Overall, around two crore bids were received at the cutoff price for the issue.
The qualified institutional buyers (QIB) portion of the issue, comprising of 14 lakh shares, received around 3.85 crore bids, subscribing the portion reserved for them by over 27 times, data available on the National Stock Exchange showed.
Foreign institutional investors (FII) pitched with 2.86 crore bids, while mutual funds bid for 20 lakh shares.The company had fixed the price band at Rs 150-175 per share.
The IPO also got a huge response from retail investors and non-institutional investors, as the allocated segments were subscribed 21 and 62 times respectively.Overall, around two crore bids were received at the cutoff price for the issue.
Temasek, Singapore GIC eye 40% of ICICI Bank public issue
Temasek and Government of Singapore Investment Corporation (GIC) are looking at cornering a little less than 40% of the fresh public issue of ICICI Bank. This would involve an investment of around Rs 8,000 crore. Temasek has already put in an application of Rs 8,300 crore — the maximum possible — on Tuesday when the issue opened for subscription.
Though retail investors are yet to step in, the issue was oversubscribed 2.7 times on the first day, thanks to demand from institutional investors.
The Singapore government arms may face some competition from government-owned institutions in the Middle East. State-owned entities from Dubai, Abu Dhabi, Kuwait and Qatar are also said to looking at subscribing to the issue.
The RBI has allowed the two Singapore government arms to pick up 10% stake each in the country’s largest private sector bank. Incidentally, four Middle East government-led institutions are also said to be looking at subscribing to a significant portion in the $5-billion issue, half of which would be raised from the local market.
Other overseas institutional investors who may subscribe include Capital International, T Rowe Price, Legatum Capital and Aberdeen. Temasek and GIC together hold 9.61% stake in ICICI Bank — Temasek through Allamanda Investments has a 7.37% stake while GIC owns 2.24% equity.
Read more in The Economic Times article.
Though retail investors are yet to step in, the issue was oversubscribed 2.7 times on the first day, thanks to demand from institutional investors.
The Singapore government arms may face some competition from government-owned institutions in the Middle East. State-owned entities from Dubai, Abu Dhabi, Kuwait and Qatar are also said to looking at subscribing to the issue.
The RBI has allowed the two Singapore government arms to pick up 10% stake each in the country’s largest private sector bank. Incidentally, four Middle East government-led institutions are also said to be looking at subscribing to a significant portion in the $5-billion issue, half of which would be raised from the local market.
Other overseas institutional investors who may subscribe include Capital International, T Rowe Price, Legatum Capital and Aberdeen. Temasek and GIC together hold 9.61% stake in ICICI Bank — Temasek through Allamanda Investments has a 7.37% stake while GIC owns 2.24% equity.
Read more in The Economic Times article.
ICICI, Spanco take over GTL BPO for Rs 253 cr
Mumbai-based IT company GTL has entered into an agreement with ICICI Bank and Spanco Telesystems to lease out its BPO assets for 25 years for Rs 253 crore. GTL has two BPO facilities located in Navi Mumbai and Pune with a combined capacity of 1,500 seats. In terms of area, these two units have a combined capacity of over 1.5 lakh sq ft. According to sources close to the development, the deal is likely to be announced on Wednesday.
Sources in the know told ET that despite GTL putting its BPO arm on the block, the deal would only involve the leasing out of the facilities. “This is not an outright sale, but the leasing of the BPO assets. The companies have agreed to this system as GTL does not want to let go of the real estate where its BPO units are located.
At the same time, as reported first by ET, GTL is also close to signing a deal with France Telecom for sale of its IT business. The deal, which is slated to be announced shortly is estimated at Rs 250-300 crore. (The acquisition will be made through France Telecom’s business arm, Orange Business Services). GTL has also put its ERP businesses on the block and is looking for suitors for it.
Read more in The Economic Times article.
Sources in the know told ET that despite GTL putting its BPO arm on the block, the deal would only involve the leasing out of the facilities. “This is not an outright sale, but the leasing of the BPO assets. The companies have agreed to this system as GTL does not want to let go of the real estate where its BPO units are located.
At the same time, as reported first by ET, GTL is also close to signing a deal with France Telecom for sale of its IT business. The deal, which is slated to be announced shortly is estimated at Rs 250-300 crore. (The acquisition will be made through France Telecom’s business arm, Orange Business Services). GTL has also put its ERP businesses on the block and is looking for suitors for it.
Read more in The Economic Times article.
Tatas form finance co for bigger spread
Five years after the Tata group merged its finance unit Tata Finance with Tata Motors, the wheel has turned a full circle for the conglomerate. On Tuesday, Tata Sons, the group’s holding company, said it has formed a new firm, Tata Capital, for financial services that will operate in the large growing segments within the finance sector that also include businesses that Tata Finance earlier operated in.
It has also been learnt that segments of Tata Finance that are now operating within Tata Motors, such as asset and vehicle financing, would be spun off into Tata Capital.
Apart from private equity, which has become a buzzword in India due to recent large deals, Tata Capital would also function in capital market services, merchant banking, housing finance, assets and vehicle financing and retail finance.
Read more in The Economic Times article.
It has also been learnt that segments of Tata Finance that are now operating within Tata Motors, such as asset and vehicle financing, would be spun off into Tata Capital.
Apart from private equity, which has become a buzzword in India due to recent large deals, Tata Capital would also function in capital market services, merchant banking, housing finance, assets and vehicle financing and retail finance.
Read more in The Economic Times article.
Tuesday, June 19, 2007
Petron Engg to sell stake to Kazakhstan firm
Petron Engineering Construction on Tuesday said its promoters have decided to sell their controlling stake to a Kazakh firm for an undisclosed amount.KazStroyServices, an oil and gas services company, bought the stake from Petron Investments, the holding company of Petron Engineering with 52.22 per cent stake.
Shares of Petron jumped nearly 20 per cent to hit its upper circuit limit and closed at Rs 227.15 on the Bombay Stock Exchange. The scrip opened firm at Rs 191 and rallied to touch its 52-week high with 10.05 lakh shares being traded.
Shares of Petron jumped nearly 20 per cent to hit its upper circuit limit and closed at Rs 227.15 on the Bombay Stock Exchange. The scrip opened firm at Rs 191 and rallied to touch its 52-week high with 10.05 lakh shares being traded.
UTV Motion raises $70mn from UK IPO
Media and entertainment firm UTV Motion Pictures on Tuesday said it has raised 70 million dollars (around Rs 290 crore) through its listing on the Alternative Investment Market (AIM) of London Stock Exchange.
Upon listing, UTV Motion Pictures, a subsidiary of UTV Software, is expected to have a market value of 309.3 million dollars (over Rs 1,200 crore) as promoters are seeking to dilute 25 per cent of its total equity base through the share-sale at 2.90 dollars apiece, a company statement said.
The Isle of Man incorporated firm today announced the book closure of its initial public offer and over 2.41 crore shares carrying a face value of 0.05 dollars each (comprising of 23.17 per cent of the equity post-issue).
Read more in The DNA Money article.
Upon listing, UTV Motion Pictures, a subsidiary of UTV Software, is expected to have a market value of 309.3 million dollars (over Rs 1,200 crore) as promoters are seeking to dilute 25 per cent of its total equity base through the share-sale at 2.90 dollars apiece, a company statement said.
The Isle of Man incorporated firm today announced the book closure of its initial public offer and over 2.41 crore shares carrying a face value of 0.05 dollars each (comprising of 23.17 per cent of the equity post-issue).
Read more in The DNA Money article.
ICICI Bank FPO off to a blistering start
The country's biggest ever follow-on public issue (FPO) for Rs 8,750 crore ($ 2.13 billion) by ICICI Bank was fully subscribed within the first 10 minutes of its opening today morning following big bids by institutional investors. At the end of the first day, the FPO was subscribed by 2.74 times.There are three more days for the issue to close.The bank received bids for 270.84 million shares for the 98.87 million shares on offer. Bids for 1,77,516 shares were at the cut-off price.
Data available with the National Stock Exchange shows that foreign institutional investors (FIIs) have placed bids for shares out of the shares reserved for qualified institutional buyers (QIBs)."Mutual Funds are sitting on good cash. This coupled with FII interest has led to oversubscription of the FPO," Kashyap Jhaveri, analyst at Emkay Share, said.The QIB portion was subscribed by 5.6 times, say sources.
"It's not surprising. The issue was expected to get good response from investors. The liquidity situation continues to be good in the Indian markets," said Jayesh Shroff, fund manager, SBI Mutual Fund.
Shares of the bank traded at Rs 944.40 on the 30-stock Sensex of the Bombay Stock Exchange(BSE), up by 2.89% from its previous close.
The Mumbai-headquartered bank is offering shares in a price band of Rs 885-950 per share. For retail investors (those applying for Rs 1 lakh or lower amount), the bank is offering a discount of Rs 50 a share.
The minimum bid size is six equity shares for retail bidders and existing retail shareholders.
Data available with the National Stock Exchange shows that foreign institutional investors (FIIs) have placed bids for shares out of the shares reserved for qualified institutional buyers (QIBs)."Mutual Funds are sitting on good cash. This coupled with FII interest has led to oversubscription of the FPO," Kashyap Jhaveri, analyst at Emkay Share, said.The QIB portion was subscribed by 5.6 times, say sources.
"It's not surprising. The issue was expected to get good response from investors. The liquidity situation continues to be good in the Indian markets," said Jayesh Shroff, fund manager, SBI Mutual Fund.
Shares of the bank traded at Rs 944.40 on the 30-stock Sensex of the Bombay Stock Exchange(BSE), up by 2.89% from its previous close.
The Mumbai-headquartered bank is offering shares in a price band of Rs 885-950 per share. For retail investors (those applying for Rs 1 lakh or lower amount), the bank is offering a discount of Rs 50 a share.
The minimum bid size is six equity shares for retail bidders and existing retail shareholders.
Jet Airways plans to raise $400 mn
Private carrier Jet Airways, which recently acquired rival Air Sahara, said on 19 June it plans to raise $400 million (Rs1,600 crore).“The board of directors at its meeting on 26 June would consider issuance of equity shares on a rights basis for an amount of up to $400 million or an equivalent amount in Indian Rupees,” Jet Airways informed Bombay Stock Exchange.
The proposal comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.The company would also consider the audited financial results for the fourth quarter and year ended 31 March and recommend dividend for 2006-07.
The shares of Jet were up 1.06% in intra-day trading at Rs793.10 on the BSE.
Jet Airways executive director Saroj Dutta had said earlier this month the company was open to raise additional resources to fund its expansion plans.The airline chief Naresh Goyal had said earlier that all necessary government clearances for JetLite had been received and the company might operate JetLite on international sectors in the future.
The proposal comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.The company would also consider the audited financial results for the fourth quarter and year ended 31 March and recommend dividend for 2006-07.
The shares of Jet were up 1.06% in intra-day trading at Rs793.10 on the BSE.
Jet Airways executive director Saroj Dutta had said earlier this month the company was open to raise additional resources to fund its expansion plans.The airline chief Naresh Goyal had said earlier that all necessary government clearances for JetLite had been received and the company might operate JetLite on international sectors in the future.
Sterlite prices ADS offering at $13.44
Sterlite Industries, the flagship of the Vedanta Group, said on 19 June it has priced its initial public offering of American Depositary Shares (ADS) at $13.44 each.
Calculated on the basis of this price, Sterlite would raise over $1.75 billion through the issue of over 130 million equities in the form of ADS.
Post-offering, the ADS represent around 18.9% interest in Sterlite. The company’s ADSs were approved for listing on the New York Stock Exchange under the symbol “SLT”, Sterlite Industries said in a communique to the Bombay Stock Exchange.
After this offering, the company would have around 689 million equity shares. The company granted the representatives an option to purchase up to an additional 19.5 million ADS to cover over-allotments.
In May, Sterlite Industries announced plans to raise $2 billion through ADS issue for acquisitions, increasing stake in subsidiaries and setting up a thermal coal-based power facility in Orissa for around Rs8,730.5 crore.
Read more in The Livemint article.
Calculated on the basis of this price, Sterlite would raise over $1.75 billion through the issue of over 130 million equities in the form of ADS.
Post-offering, the ADS represent around 18.9% interest in Sterlite. The company’s ADSs were approved for listing on the New York Stock Exchange under the symbol “SLT”, Sterlite Industries said in a communique to the Bombay Stock Exchange.
After this offering, the company would have around 689 million equity shares. The company granted the representatives an option to purchase up to an additional 19.5 million ADS to cover over-allotments.
In May, Sterlite Industries announced plans to raise $2 billion through ADS issue for acquisitions, increasing stake in subsidiaries and setting up a thermal coal-based power facility in Orissa for around Rs8,730.5 crore.
Read more in The Livemint article.
Spice fixes IPO price band at Rs 41-46
Cellular operator Spice Communications Ltd said on 19 June it has fixed the price band of its proposed public issue between Rs41 and Rs46 an equity share of Rs10 each.
“We have recently concluded a pre-IPO placement of 24,837,889 shares at Rs45 per share, thereby raising about Rs112 crore. A clutch of investors led by Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom,” company chairman and managing director Dilip Modi told reporters at a press conference.
Following the IPO, the stakes of the both the promoters, B K Modi and Telekom Malaysia, would come down by 10% each.At present, B K Modi holds 51% and Telekom Malaysia, the remaining 49%.Post-IPO, Modi will hold 41% while Telekom Malaysia, 39%, with the public holding the remaining 20%.
Read more in The Livemint article.
“We have recently concluded a pre-IPO placement of 24,837,889 shares at Rs45 per share, thereby raising about Rs112 crore. A clutch of investors led by Lehman Brothers and Sinnaker Investments have picked up a small stake in Spice Telecom,” company chairman and managing director Dilip Modi told reporters at a press conference.
Following the IPO, the stakes of the both the promoters, B K Modi and Telekom Malaysia, would come down by 10% each.At present, B K Modi holds 51% and Telekom Malaysia, the remaining 49%.Post-IPO, Modi will hold 41% while Telekom Malaysia, 39%, with the public holding the remaining 20%.
Read more in The Livemint article.
Wipro set to acquire German firm
Wipro Technologies, an information technology and outsourcing company, is poised to acquire the IT arm of a major company in Germany.The company has initiated talks with potential targets in Germany, even though the names were kept under wraps.
All major companies — BMW, Lufthansa, BASF and Siemens — have captive IT organisations in Germany.While automobile major BMW has an IT subsidiary, Softlab, with SAP capabilities, German airline major Lufthansa runs Lufthansa Systems, the third biggest IT vendor in Germany. BASF’s IT services division and a host of small companies could also be on the Indian IT major’s radar.
According to industry sources, the Bangalore-based company is increasing its presence in Germany and is looking at both organic and inorganic growth in the country.The company is looking at increasing its presence in enterprise resource planning (ERP) solutions, captive customer base and data centre applications.
Acquiring a company with these capabilities would be the fastest way to establish a presence in the country, the sources added.
Earlier, Wipro Chairman Azim Premji had stated that the company would look at acquisitions in Europe, especially in the UK, Germany and France.The company is on the lookout for acquisition that would help it gain a presence in the continent and embark on a much faster growth rate.
A strong presence in Germany will enable Wipro to tap the biggest ERP market in the world and enable it to tap one of the virgin markets for outsourcing of IT services. At present, German major SAP is the leading ERP solutions provider in the world.
All major companies — BMW, Lufthansa, BASF and Siemens — have captive IT organisations in Germany.While automobile major BMW has an IT subsidiary, Softlab, with SAP capabilities, German airline major Lufthansa runs Lufthansa Systems, the third biggest IT vendor in Germany. BASF’s IT services division and a host of small companies could also be on the Indian IT major’s radar.
According to industry sources, the Bangalore-based company is increasing its presence in Germany and is looking at both organic and inorganic growth in the country.The company is looking at increasing its presence in enterprise resource planning (ERP) solutions, captive customer base and data centre applications.
Acquiring a company with these capabilities would be the fastest way to establish a presence in the country, the sources added.
Earlier, Wipro Chairman Azim Premji had stated that the company would look at acquisitions in Europe, especially in the UK, Germany and France.The company is on the lookout for acquisition that would help it gain a presence in the continent and embark on a much faster growth rate.
A strong presence in Germany will enable Wipro to tap the biggest ERP market in the world and enable it to tap one of the virgin markets for outsourcing of IT services. At present, German major SAP is the leading ERP solutions provider in the world.
Mukesh zooms into Yashraj films for JV
Reliance Industries and Yashraj Films, the makers of hits such as Kabhie Kabhie and Dilwale Dulhaniya Le Jayenge, are in talks for a joint venture to set up multiplexes, run entertainment channels and produce soap operas for television.
People close to the negotiations say that Reliance Retail, an associate of Reliance Industries, will float a new company where Yashraj Films will hold close to 26%. The new company will use the space provided by Reliance Retail’s gigantic malls to set up a chain of multiplexes across the country.
The Reliance group is believed to have committed over $50 million for the joint venture. “We are in talks with several players for new initiatives that we are currently evaluating. We have had talks with Mukesh Ambani as well, but there has been no outcome as yet,” Sanjeev Kohli, CEO, Yashraj Films, told ET. An email to Reliance Industries went unanswered but senior group officials confirmed the talks with Yashraj Films.
The move ties in well with Reliance Retail’s plans of setting up mega malls in urban centres, replete with an array of entertainment, food courts and other services. Yashraj Films, with domain expertise in entertainment, will be a formidable partner for Reliance.
Read more in The Economic Times article.
People close to the negotiations say that Reliance Retail, an associate of Reliance Industries, will float a new company where Yashraj Films will hold close to 26%. The new company will use the space provided by Reliance Retail’s gigantic malls to set up a chain of multiplexes across the country.
The Reliance group is believed to have committed over $50 million for the joint venture. “We are in talks with several players for new initiatives that we are currently evaluating. We have had talks with Mukesh Ambani as well, but there has been no outcome as yet,” Sanjeev Kohli, CEO, Yashraj Films, told ET. An email to Reliance Industries went unanswered but senior group officials confirmed the talks with Yashraj Films.
The move ties in well with Reliance Retail’s plans of setting up mega malls in urban centres, replete with an array of entertainment, food courts and other services. Yashraj Films, with domain expertise in entertainment, will be a formidable partner for Reliance.
Read more in The Economic Times article.
Genpact acquires Axis Risk Consulting
Genpact, the largest BPO in the country, on Monday announced it has signed an agreement to acquire Axis Risk Consulting Services for an undisclosed amount. The acquisition is expected to be closed in the next 60-90 days, subject to necessary regulatory approvals.
The acquisition expands Genpact’s finance and accounting (F&A) solutions that include outsourced transactional services and financial planning and analysis.Post-acquisition, Axis will operate as an independent unit of Genpact within its governance practice. Axis managing director and founding partner Ameet Parikh will lead the governance business unit.
The acquisition, Genpact said, will enable it to offer end-to-end internal audit service solutions by combining its own process and technology expertise with Axis’ audit staff and automated control testing.
Read more in The Economic Times article.
The acquisition expands Genpact’s finance and accounting (F&A) solutions that include outsourced transactional services and financial planning and analysis.Post-acquisition, Axis will operate as an independent unit of Genpact within its governance practice. Axis managing director and founding partner Ameet Parikh will lead the governance business unit.
The acquisition, Genpact said, will enable it to offer end-to-end internal audit service solutions by combining its own process and technology expertise with Axis’ audit staff and automated control testing.
Read more in The Economic Times article.
Jet to consider $400 mn rights issue
India's top private carrier, Jet Airways Ltd , said on Tuesday that its board would consider on June 26 a rights issue of shares to raise up to $400 mn, or an equivalent amount in Indian rupees.
The company will also declare its fourth-quarter and full-year results on the day, it said in a statement to the stock exchange.
The company will also declare its fourth-quarter and full-year results on the day, it said in a statement to the stock exchange.
PFC to mop up $1 b from overseas mkts
Power Finance Corporation (PFC) is planning to tap the overseas market to raise a whopping $1 billion in the current fiscal. The borrowing programme is aimed at meeting the funding requirements of the power sector, which requires an estimated Rs 8,50,000 crore during the 11th Plan to add 68,869 mw of fresh capacity.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
SBI to raise $225m in bonds abroad
State Bank of India is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday and the bank is expected to price the bonds this week. The bank has appointed Citibank and JP Morgan Chase as merchant bankers to the issue.
The bank plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II). The proposed issue, perpetual note, will be the first tranche of its tier-I borrowing this year. If the SBI Act is amended, the bank plans to raise close to Rs 6,000 crore by way of public issue. The balance would be raised from the debt market.
In February this year, SBI had raised $400 million by way of perpetual bonds at 6.43% and it had a call option in 2017. The proposed perpetual note, too, would have a call option at the end of 10 years. The proposed borrowing is a part of SBI’s $5 billion MTN issuance and is likely to be raised at 1.3-1.4% over Libor, which is now ruling at 6.6-6.7%.
Read more in The Economic Times article.
International rating agency Standard & Poor’s has assigned a ‘BB’ rating to the bank’s $225 hybrid issue. The rating of BB is sub-investment grade. However, the senior secured borrowing has been rated at BBB-, which is an investment grade.
The bank plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II). The proposed issue, perpetual note, will be the first tranche of its tier-I borrowing this year. If the SBI Act is amended, the bank plans to raise close to Rs 6,000 crore by way of public issue. The balance would be raised from the debt market.
In February this year, SBI had raised $400 million by way of perpetual bonds at 6.43% and it had a call option in 2017. The proposed perpetual note, too, would have a call option at the end of 10 years. The proposed borrowing is a part of SBI’s $5 billion MTN issuance and is likely to be raised at 1.3-1.4% over Libor, which is now ruling at 6.6-6.7%.
Read more in The Economic Times article.
International rating agency Standard & Poor’s has assigned a ‘BB’ rating to the bank’s $225 hybrid issue. The rating of BB is sub-investment grade. However, the senior secured borrowing has been rated at BBB-, which is an investment grade.
Ruias to raise $900 m to fund Algoma buy
Essar Global, the international holding company for the Ruias, will raise $900 million through a combination of senior notes and loans to fund its acquisition of Canada’s Algoma Steel, sources said.
The non-recourse fund raising exercise by Essar Global is the second-largest such transaction by an Indian steel company, after Tata Steel’s almost $7 billion loan to finance its acquisition of Anglo-Dutch steelmaker Corus.
The Ruias’ international holding company had acquired Algoma in April for $1.58 billion in an all-cash leveraged buyout that is likely to pitchfork the Essar group with the Tatas in North America. Essar Global’s acquisition is considered the second biggest by an Indian company in North America, after Hindalco paid $6 billion to buy Atlanta-based Novelis in February. To finance its Algoma acquisition, Essar Global will sell $450 million of senior notes, recoursed to the Canadian company’s balance sheet, according to sources. The eight-year notes, denominated in dollars, may yield 9.75% to 10%. UBS is the financial advisor to the offer.
Essar Global also plans to issue $450 million in loans, based on Algoma’s earnings. The group’s own contribution will be about $500 million. It could not be ascertained how the rest of the acquisition amount — about $100 million — will be raised.
Read more in The Economic Times article.
The non-recourse fund raising exercise by Essar Global is the second-largest such transaction by an Indian steel company, after Tata Steel’s almost $7 billion loan to finance its acquisition of Anglo-Dutch steelmaker Corus.
The Ruias’ international holding company had acquired Algoma in April for $1.58 billion in an all-cash leveraged buyout that is likely to pitchfork the Essar group with the Tatas in North America. Essar Global’s acquisition is considered the second biggest by an Indian company in North America, after Hindalco paid $6 billion to buy Atlanta-based Novelis in February. To finance its Algoma acquisition, Essar Global will sell $450 million of senior notes, recoursed to the Canadian company’s balance sheet, according to sources. The eight-year notes, denominated in dollars, may yield 9.75% to 10%. UBS is the financial advisor to the offer.
Essar Global also plans to issue $450 million in loans, based on Algoma’s earnings. The group’s own contribution will be about $500 million. It could not be ascertained how the rest of the acquisition amount — about $100 million — will be raised.
Read more in The Economic Times article.
Monday, June 18, 2007
SpiceJet denies move to offload stake
Low-cost carrier SpiceJet, which is being eyed by other airlines including Vijay Mallya’s Kingfisher, on 18 June denied any move to offload stake, and said it has adequate resources to fund expansion plans.
“SpiceJet would like to reiterate that there is absolutely no plan to sell any stake in the company to anybody. It is one of the best funded airlines in the country with a large cash reserve for expansion,” an airline spokesperson said in a statement.
SpiceJet Director Ajay Singh said SpiceJet’s promoters can’t sell their stake until February 2008, according to an agreement between them.
Royal Holding Services, which owns 12.91% of SpiceJet, is one of the founders of the airline, along with investors such as Singh, who has a 4.16% stake, according to the SpiceJet Web site. Istithmar holds 13.42% in the airline.Shares of SpiceJet advanced Rs 2.2, or 3.8%, to 59.65 at the close of trading on the Bombay Stock Exchange today, having risen as much as 6% earlier.
Read more in The Livemint article.
“SpiceJet would like to reiterate that there is absolutely no plan to sell any stake in the company to anybody. It is one of the best funded airlines in the country with a large cash reserve for expansion,” an airline spokesperson said in a statement.
SpiceJet Director Ajay Singh said SpiceJet’s promoters can’t sell their stake until February 2008, according to an agreement between them.
Royal Holding Services, which owns 12.91% of SpiceJet, is one of the founders of the airline, along with investors such as Singh, who has a 4.16% stake, according to the SpiceJet Web site. Istithmar holds 13.42% in the airline.Shares of SpiceJet advanced Rs 2.2, or 3.8%, to 59.65 at the close of trading on the Bombay Stock Exchange today, having risen as much as 6% earlier.
Read more in The Livemint article.
After DLF, it is now Omaxe’s turn to sell the Indian real estate story
Omaxe Ltd, the Delhi-based property developer that plans to kick off the road show for its initial public offering in a week, may have to price its shares lower than rival DLF Ltd’s share price for it to attract investors, say analysts.
While Omaxe has not yet decided on the price band for the issue, a senior company official familiar with the offer, speaking on the condition he wouldn’t be named, said the price band would be below Rs500 a share, the lower end of the DLF band.
Omaxe is currently consulting with its merchant bankers to arrive at a price band. Mint could not independently verify the Rs500-a-share number.Omaxe’s offer of 17.8 million shares pales in comparison with DLF’s 175 million shares, which is the largest share sale to hit the Indian market. The DLF offer got Rs9,187 crore from the market at a price of Rs525 per share. At Rs500, Omaxe could generate Rs890 crore.
Read more in The Livemint article.
While Omaxe has not yet decided on the price band for the issue, a senior company official familiar with the offer, speaking on the condition he wouldn’t be named, said the price band would be below Rs500 a share, the lower end of the DLF band.
Omaxe is currently consulting with its merchant bankers to arrive at a price band. Mint could not independently verify the Rs500-a-share number.Omaxe’s offer of 17.8 million shares pales in comparison with DLF’s 175 million shares, which is the largest share sale to hit the Indian market. The DLF offer got Rs9,187 crore from the market at a price of Rs525 per share. At Rs500, Omaxe could generate Rs890 crore.
Read more in The Livemint article.
Kaupthing says buys stake in Indian M&A advisor
Icelandic bank Kaupthing said on Monday it had inked a deal to buy 20 percent of Indian investment services firm FiNoble Advisors Private Ltd.
The purchase price was not disclosed. Kaupthing said in a statement it had an option to buy the remaining 80 percent in the New Delhi-based firm, which has 25 employees, in five years.
FiNoble mainly advises Indian firms on acquisitions in Europe and the United States and foreign firms entering the Indian market, Kaupthing said.
The purchase price was not disclosed. Kaupthing said in a statement it had an option to buy the remaining 80 percent in the New Delhi-based firm, which has 25 employees, in five years.
FiNoble mainly advises Indian firms on acquisitions in Europe and the United States and foreign firms entering the Indian market, Kaupthing said.
Glory Polyfilms soars 75% after listing
Shares of Glory Polyfilms, a packaging material maker, rose 75% on 18 June, to Rs84 in early morning trade, against its issue price of Rs48 on the Bombay Stock Exchange.
The scrip had opened at Rs50 on listing, a premium of 4.17% over its issue price. It was last trading at Rs61.70, as 4.76 million shares exchanged hands in a market that saw the emergence of buying by funds and retail investors.
Glory Polyfilms raised over Rs39 crore in its 8.2-million share fixed price IPO that closed on 15 May. The issue proceeds will be used to part finance the expansion of multi-layer film, printing capacity and lamination film, the company said.
On the National Stock Exchange, the company’s shares opened at Rs48, its issue price. The counter saw brisk buying in the morning as the scrip touched highs of Rs84 intra-day.Shares of Glory Polyfilms were last trading at Rs60.85, up 13.7%’ as 5.56 million shares changed hands on the NSE.
The scrip had opened at Rs50 on listing, a premium of 4.17% over its issue price. It was last trading at Rs61.70, as 4.76 million shares exchanged hands in a market that saw the emergence of buying by funds and retail investors.
Glory Polyfilms raised over Rs39 crore in its 8.2-million share fixed price IPO that closed on 15 May. The issue proceeds will be used to part finance the expansion of multi-layer film, printing capacity and lamination film, the company said.
On the National Stock Exchange, the company’s shares opened at Rs48, its issue price. The counter saw brisk buying in the morning as the scrip touched highs of Rs84 intra-day.Shares of Glory Polyfilms were last trading at Rs60.85, up 13.7%’ as 5.56 million shares changed hands on the NSE.
Gulf cos plan $200 mn Indian private equity fund
Three financial institutions from the Middle East are promoting a $200-million Sharia compliant fund for investing in India.Khaleej Finance and Investment (KFI) from Bahrain, Kuwait Investment Company (KIC) and Kuwait Finance House (KFH)-Baytak said, “‘Indian Private Equity Fund’ targets activities with controlled risks in growing sectors like the real estate.”
The fund is designed to reach an internal rate of return (IRR) exceeding 25% at the end of the 5 years investment period, they said in a statement.“The fund has an investment period ranging between 3-5 years and is partially underwritten in Kuwait by Warba Investment Company,” it said.
The fund constitutes a qualitative change in the activities of KFI and is designed to help the bank go beyond the regional level. “Indian Private Equity Fund will enable KFI to compete with major investment institutions worldwide,” KFI chief executive officer Nabil Hadi said.
Read more in The Livemint article.
The fund is designed to reach an internal rate of return (IRR) exceeding 25% at the end of the 5 years investment period, they said in a statement.“The fund has an investment period ranging between 3-5 years and is partially underwritten in Kuwait by Warba Investment Company,” it said.
The fund constitutes a qualitative change in the activities of KFI and is designed to help the bank go beyond the regional level. “Indian Private Equity Fund will enable KFI to compete with major investment institutions worldwide,” KFI chief executive officer Nabil Hadi said.
Read more in The Livemint article.
SBI, LIC, others to dilute 50% in UTI MF via IPO
UTI Asset Management Company will float an initial public offer by March-end next year to help its sponsors, SBI, LIC, PNB and BoB, offload up to 50%.
UTI Asset Management Company Ltd chairman and managing director U K Sinha told PTI that the board of the company had recently approved the proposal to offload up to 50% stake held by the four sponsors.State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB) and Bank of Baroda (BoB), individually hold 25% stake each in the asset management firm.
Sinha said UTI AMC would probably be the first domestic mutual fund in the country to go for an IPO, through which the four sponsors would make a partial exit.He said the details on the valuation of the company were being worked out.The valuation of the firm was last done in November 2005, when the four sponsors bought stake in it.
UTI Asset Management Company Ltd chairman and managing director U K Sinha told PTI that the board of the company had recently approved the proposal to offload up to 50% stake held by the four sponsors.State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB) and Bank of Baroda (BoB), individually hold 25% stake each in the asset management firm.
Sinha said UTI AMC would probably be the first domestic mutual fund in the country to go for an IPO, through which the four sponsors would make a partial exit.He said the details on the valuation of the company were being worked out.The valuation of the firm was last done in November 2005, when the four sponsors bought stake in it.
Brazilian firm will buy 10% stake in Dollex Ind
Brazilian Renewable Energy Company or Brenco, the largest renewable energy company in Brazil, is in talks for a 10% stake in Dollex Industries, a fully integrated alcohol-ethanol-sugar manufacturer.
Brenco, which plans to produce 1 billion gallons of ethanol a year, was founded by Philippe Reichstul, former chief executive of Brazili’s state oil company Petrobras.
Venture capitalist Vinod Khosla, American supermarket magnate Ron Burkle and America Online founder Steve Case invested in the company in March this year.
Read more in The DNA Money article.
Brenco, which plans to produce 1 billion gallons of ethanol a year, was founded by Philippe Reichstul, former chief executive of Brazili’s state oil company Petrobras.
Venture capitalist Vinod Khosla, American supermarket magnate Ron Burkle and America Online founder Steve Case invested in the company in March this year.
Read more in The DNA Money article.
RTI to keep stock exchanges on high alert
The Central Information Commission's (CIS) decision to bring stock exchanges within the purview of RTI Act will keep the bourses on high alert and ensure that necessary information is made available to public in cases of manipulation by operators, feel experts.
"The RTI Act will ensure that stock exchanges reveal information to investors on suspected cases of manipulation," investment consultant Prime Database's Managing Director Prithvi Haldea told.
However, he added, the decision of the CIC would not cut much ice as enough transparency is available in working of the stock exchanges since their corporatisation.
Read more in The DNA Money article.
"The RTI Act will ensure that stock exchanges reveal information to investors on suspected cases of manipulation," investment consultant Prime Database's Managing Director Prithvi Haldea told.
However, he added, the decision of the CIC would not cut much ice as enough transparency is available in working of the stock exchanges since their corporatisation.
Read more in The DNA Money article.
Nicholas Piramal may hive off research arm
Pharmaceuticals major Nicholas Piramal India is exploring options to increase its funding towards research and development and plans to hive off its R&D activities into a separate company to launch the first new drug by 2010.
Nicholas Piramal, one of the highest R&D investors among the Indian pharma companies, had spent about Rs 130 crore in 2006-07 in R&D, an increase of about 63 per cent over the previous year.
However, though the company had earlier planned to invest about 7 per cent of its turnover in R&D, the actual spend was 5 per cent. This was due to the financial burden by the acquisition of the Morepath facility of Pfizer in 2006, Dr Ajay Piramal, chairman, said.
While none of the global generic drug research companies has hived off its R&D into a separate new company, three Indian companies hived off R&D in the recent past, in three unique different models.
Read more in The Business Standard article.
Nicholas Piramal, one of the highest R&D investors among the Indian pharma companies, had spent about Rs 130 crore in 2006-07 in R&D, an increase of about 63 per cent over the previous year.
However, though the company had earlier planned to invest about 7 per cent of its turnover in R&D, the actual spend was 5 per cent. This was due to the financial burden by the acquisition of the Morepath facility of Pfizer in 2006, Dr Ajay Piramal, chairman, said.
While none of the global generic drug research companies has hived off its R&D into a separate new company, three Indian companies hived off R&D in the recent past, in three unique different models.
Read more in The Business Standard article.
Geodesic board recommends 1:2 bonus issue
The board of directors of Geodesic Information have recommended a bonus issue in the ratio of 1:2, i.e one free share for every two shares held.
Further, the company also plans to raise upto $150 mn from overseas markets, as per a release issued by the company to the BSE.
Further, the company also plans to raise upto $150 mn from overseas markets, as per a release issued by the company to the BSE.
Look at what lies beneath
The Market is in turmoil. Barring the support on Thursday, on account of a global bounce-back, the benchmark indices looked weak — whether you talk about technicals or look at plain index numbers. Consider the movement of the index since the past couple of weeks. The Nifty has been making new intra-day lows. This indicates weakness. The volumes have also declined considerably from the average. This confirms the downward trend. The DLF IPO, which just managed to scrape through the retail and the non- institutional category, sucked out some liquidity last week. ICICI Bank’s follow-on public offer (FPO) will suck out some more. So, the market faces tough times ahead.
This is the first FPO of the current year. ICICI Bank has raised money through FPOs twice in ’04 and ’05. The stock appreciated 230% and 75% over its FY04 and FY05 FPO prices respectively. So, long-term
investors who had applied for the FPO made good returns on their investment. The upcoming issue looks promising as the bank aims to unlock value by creating a holding company for its non-banking business.
Read more in The Economic Times article.
This is the first FPO of the current year. ICICI Bank has raised money through FPOs twice in ’04 and ’05. The stock appreciated 230% and 75% over its FY04 and FY05 FPO prices respectively. So, long-term
investors who had applied for the FPO made good returns on their investment. The upcoming issue looks promising as the bank aims to unlock value by creating a holding company for its non-banking business.
Read more in The Economic Times article.
Thursday, June 14, 2007
Kolkata restaurateurs plan for growth, IPO
The Savourites Group, a partnership of four hotel management graduates-turned-entrepreneurs, may soon become India’s first stand alone restaurant chain to make an entry into the stock market through an initial public offering (IPO).
Savourites, which started life in 1998 as a caterer operating out of a garage in south Kolkata’s Jodhpur Park neighbourhood, today owns four eateries in Kolkata and Bangalore, including the popular “6 Ballygunge Place (6BP).”
It has plans to roll out another three in the city of its birth before the festive season in September-October.S. Ramani, the managing partner of the group, which had a turnover of Rs5.75 crore in fiscal 2007, said, “We hope to raise at least Rs30 crore to fund our expansion into Mumbai and the National Capital Region (NCR). In Mumbai, we have identified locations in Malad and Lokhandwala while in the NCR, we plan to start off in Noida. All this would require money, which we intend to raise through an IPO.”
Savourites, which started life in 1998 as a caterer operating out of a garage in south Kolkata’s Jodhpur Park neighbourhood, today owns four eateries in Kolkata and Bangalore, including the popular “6 Ballygunge Place (6BP).”
It has plans to roll out another three in the city of its birth before the festive season in September-October.S. Ramani, the managing partner of the group, which had a turnover of Rs5.75 crore in fiscal 2007, said, “We hope to raise at least Rs30 crore to fund our expansion into Mumbai and the National Capital Region (NCR). In Mumbai, we have identified locations in Malad and Lokhandwala while in the NCR, we plan to start off in Noida. All this would require money, which we intend to raise through an IPO.”
Sensex surges 200 points on funds buying, short-covering
The Bombay Stock Exchange benchmark Sensex climbed 200 points on 14 June on the back of a rally in blue chip stocks, led by metals and capital goods sectors.Firming global markets also influenced the trading sentiments here, triggering the buying spree.
The Sensex moved in a one-way direction throughout the session and ended 200.69 points, or by 1.43%, up at 14,203.72 after touching the day’s high of 14,219.24. It had lost nearly 128 points on 13 June.Similarly, the second wide-based National Stock Exchange index shot up by 56.95 points to close the session at 4,170.
The Sensex moved in a one-way direction throughout the session and ended 200.69 points, or by 1.43%, up at 14,203.72 after touching the day’s high of 14,219.24. It had lost nearly 128 points on 13 June.Similarly, the second wide-based National Stock Exchange index shot up by 56.95 points to close the session at 4,170.
FMC may decide on BSE stake in NMCE by next week
Forward Markets Commission is likely to take a decision soon on the proposal of Bombay Stock Exchange to buy 26% stake in Ahmedabad-based National Multi Commodity Exchange (NMCE).
The commodity market regulator had in December asked all agri-bourses to maintain status quo in their shareholding pattern till guidelines were issued. The decision came after foreign firms Goldman Sachs and Fidelity bought stakes in Indian agri exchanges MCX and NCDEX.An NMCE official said the discussions on BSE’s offer to buy a stake were going on for the last several months.
If BSE is allowed to buy 26%, it would be highest by a stock exchange in any commodity exchange.The National Stock Exchange has 15% stake at leading agri commodity bourse NCDEX.
Read more in The Livemint article.
The commodity market regulator had in December asked all agri-bourses to maintain status quo in their shareholding pattern till guidelines were issued. The decision came after foreign firms Goldman Sachs and Fidelity bought stakes in Indian agri exchanges MCX and NCDEX.An NMCE official said the discussions on BSE’s offer to buy a stake were going on for the last several months.
If BSE is allowed to buy 26%, it would be highest by a stock exchange in any commodity exchange.The National Stock Exchange has 15% stake at leading agri commodity bourse NCDEX.
Read more in The Livemint article.
Vishal sells out, DLF awaits retail buyers
Vishal Retail Ltd’s initial public offering, which closed on Wednesday, was subscribed 68.06 times, according to data on the National Stock Exchange website. The Rs100 crore public offering from the retailer, which has annual sales of Rs603 crore, had been overshadowed this week by Rs9,625 crore public offering from the Delhi-based real estate developer DLF Ltd, which also opened on Monday.
DLF’s offer was subscribed 1.96 times by Wednesday evening. According to the exchange’s website, orders for 343.4 million shares were received against 175 million shares being sold. DLF’s issue, which has a price band of between Rs500 and Rs550 a share, closes Thursday.
Much of the demand for DLF shares is coming from institutional investors, or so called “qualified institutional buyers”, which include banks, mutual funds and overseas buyers. They have sought to buy 317% of the 104 million shares offered to them. Non-institutional buyers, which includes individuals with high net worth, have subscribed to 49% of the 17.4 million shares on offer to them.
The closely watched retail individual investor group has so far only subscribed to 20% of the 52 million shares set aside for them, though such investors typically wait until the last day, which is Thursday, to put in their bids. DLF’s own employees have also subscribed to 50% of the one million shares set aside for them.
Read more in The Livemint article.
DLF’s offer was subscribed 1.96 times by Wednesday evening. According to the exchange’s website, orders for 343.4 million shares were received against 175 million shares being sold. DLF’s issue, which has a price band of between Rs500 and Rs550 a share, closes Thursday.
Much of the demand for DLF shares is coming from institutional investors, or so called “qualified institutional buyers”, which include banks, mutual funds and overseas buyers. They have sought to buy 317% of the 104 million shares offered to them. Non-institutional buyers, which includes individuals with high net worth, have subscribed to 49% of the 17.4 million shares on offer to them.
The closely watched retail individual investor group has so far only subscribed to 20% of the 52 million shares set aside for them, though such investors typically wait until the last day, which is Thursday, to put in their bids. DLF’s own employees have also subscribed to 50% of the one million shares set aside for them.
Read more in The Livemint article.
Merrill, UBS may help HDFC Bank overseas
HDFC Bank Ltd, India’s third biggest by market value, may hire Merrill Lynch & Co. and UBS AG to help raise $690 million (Rs2,829 crore) selling shares to overseas investors, two people with knowledge of the matter said.
The bank is likely to sell the shares in July, they said, declining to be identified before an announcement.HDFC Bank had on 17 May said it planned to raise Rs4,200 crore, including the sale of Rs1,390 crore to its founder, Housing Development Finance Corp. Ltd (HDFC), to fund accelerating demand for loans.
“Stronger banks out of India which want to raise capital will get good demand and investors will also make a good return,” said Sandip Sabharwal, who manages $245 million in equities as chief investment officer at JM Financial Mutual Fund in Mumbai.
Indian banks, led by ICICI Bank Ltd, are selling shares to fund growing demand for credit in an economy which has expanded an average of 8.6% in the past four years, trailing only China among the world’s major economies.
New loans grew by 28% in the year to March, slowing from 35% as the central bank raised rates to contain inflation.Mark Panday, a UBS spokesman based in Hong Kong, declined to comment. Rob Stewart, a Hong Kong-based spokesman for Merrill Lynch, also declined to comment, as did Neeraj Jha, a Mumbai- based spokesman for HDFC Bank.
HDFC Bank’s sale of shares to HDFC will enable the founding company to maintain its shareholding at about 23%, the bank had said on 17 May.
Read more in The Livemint article.
The bank is likely to sell the shares in July, they said, declining to be identified before an announcement.HDFC Bank had on 17 May said it planned to raise Rs4,200 crore, including the sale of Rs1,390 crore to its founder, Housing Development Finance Corp. Ltd (HDFC), to fund accelerating demand for loans.
“Stronger banks out of India which want to raise capital will get good demand and investors will also make a good return,” said Sandip Sabharwal, who manages $245 million in equities as chief investment officer at JM Financial Mutual Fund in Mumbai.
Indian banks, led by ICICI Bank Ltd, are selling shares to fund growing demand for credit in an economy which has expanded an average of 8.6% in the past four years, trailing only China among the world’s major economies.
New loans grew by 28% in the year to March, slowing from 35% as the central bank raised rates to contain inflation.Mark Panday, a UBS spokesman based in Hong Kong, declined to comment. Rob Stewart, a Hong Kong-based spokesman for Merrill Lynch, also declined to comment, as did Neeraj Jha, a Mumbai- based spokesman for HDFC Bank.
HDFC Bank’s sale of shares to HDFC will enable the founding company to maintain its shareholding at about 23%, the bank had said on 17 May.
Read more in The Livemint article.
TV 18 , Lokmat come together for Marathi news channel
The Maharashtra-based Lokmat Group of Newspapers, which owns the Marathi newspaper Lokmat, is in talks with TV 18 Group to launch a Marathi news channel.
The Marathi news channel will be called ‘IBN Lokmat’ and is likely to go on air by the year-end. Sources in the know confirmed the development and added that the news content would be provided by IBN.
With the launch of IBN-Lokmat, the TV 18 Group would further strengthen its foothold in the news space. The group last year forayed in to Hindi news broadcasting by acquiring Channel 7 from Jagaran Group, through CNN-IBN.
At present, in the non-English news space the group operates channels two channels - CNBC Awaaz, a Hindi business news channel and Hindi news channel IBN 7.
Read more in The Business Standard article.
The Marathi news channel will be called ‘IBN Lokmat’ and is likely to go on air by the year-end. Sources in the know confirmed the development and added that the news content would be provided by IBN.
With the launch of IBN-Lokmat, the TV 18 Group would further strengthen its foothold in the news space. The group last year forayed in to Hindi news broadcasting by acquiring Channel 7 from Jagaran Group, through CNN-IBN.
At present, in the non-English news space the group operates channels two channels - CNBC Awaaz, a Hindi business news channel and Hindi news channel IBN 7.
Read more in The Business Standard article.
ICICI Bank FPO opens on June 19
The follow-on issue of ICICI Bank opens Tuesday and closes no June 22. The bank plans a domestic float and ADS issue. The price band for the issue will be fixed on Monday.
The domestic issue is for Rs 8,750 crore, with a greenshoe option of Rs 1,312.5 crore. The bank also plans an American depositary share issue of Rs 10,100 crore. Both the ADS and domestic issues will run simultaneously.
Of the total domestic float, 5 per cent will be reserved for existing retail shareholders, and they will get 5 per cent discount to issue price. However, only those shareholders who hold shares less than Rs 1 lakh in value on record date, which was June 13, will be eligible.
The offer constitutes 19.8 per cent of diluted equity, and the ADS component about 9.9 per cent of post-issue capital.The issue is being made to meet the capital adequacy requirements and augment bank's capital to fund future requirements.The bank's CAR is currently at 11.69 per cent. Post-issue it is seen at 15 per cent.
The domestic issue is for Rs 8,750 crore, with a greenshoe option of Rs 1,312.5 crore. The bank also plans an American depositary share issue of Rs 10,100 crore. Both the ADS and domestic issues will run simultaneously.
Of the total domestic float, 5 per cent will be reserved for existing retail shareholders, and they will get 5 per cent discount to issue price. However, only those shareholders who hold shares less than Rs 1 lakh in value on record date, which was June 13, will be eligible.
The offer constitutes 19.8 per cent of diluted equity, and the ADS component about 9.9 per cent of post-issue capital.The issue is being made to meet the capital adequacy requirements and augment bank's capital to fund future requirements.The bank's CAR is currently at 11.69 per cent. Post-issue it is seen at 15 per cent.
IDBI to raise $1.5 bn via bonds
State-run lender IDBI Ltd is planning to raise $1.5 bn in a medium-term note issue, its chairman and managing director VP Shetty said on Thursday.
The first tranche would be issued overseas within three months and the lead arrangers to the issue are HSBC and Barclays , he told reporters.Deputy Managing Director OV Bundellu, on his part, said the whole process could take about a year.
Shetty said IDBI was aiming for a credit growth of 18-20 percent and a deposit growth of 25 percent in the year to March 2008, Shetty said. IDBI's loan growth was 18 percent and deposit growth was 67 percent in 2006/07.
Read more in The Economic Times article.
The first tranche would be issued overseas within three months and the lead arrangers to the issue are HSBC and Barclays , he told reporters.Deputy Managing Director OV Bundellu, on his part, said the whole process could take about a year.
Shetty said IDBI was aiming for a credit growth of 18-20 percent and a deposit growth of 25 percent in the year to March 2008, Shetty said. IDBI's loan growth was 18 percent and deposit growth was 67 percent in 2006/07.
Read more in The Economic Times article.
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