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Monday, November 28, 2011
Daily News Roundup - Nov 28 2011
Reliance Industries has scrapped its plan to acquire Bharti’s stake in the life and general insurance joint ventures with French insurer AXA. (ET)
Bharti Retail, a wholly-owned subsidiary of Bharti Enterprises, has said that it will now initiate talks with Walmart for equity partnership in its front-end stores. (FE)
Essar Oil Ltd has renewed a major product sale and purchase agreement with Indian Oil Corporation Ltd. (BS)
Subex is looking to raise US$135mn to pay back foreign currency convertible bond holders and service debt. (ET)
Stability at start!
“True stability results when presumed order and presumed disorder are balanced. A truly stable system expects the unexpected, is prepared to be disrupted, waits to be transformed.” - Tom Robbins.
The markets world over have been waiting to be transformed. For the time being, Investors can look forward to a positive start on the back of a couple of encouraging reports on the debt-stricken eurozone. European leaders have prepared draft operational rules for the European Financial Stability Facility (EFSF). The budget committee of Germany's lower house of parliament is scheduled to vote on the amended guidelines for the euro zone's rescue fund. Eurozone and EU finance chiefs are also scheduled to discuss EFSF terms of reference.
Asian stocks are up amid speculation that the IMF will help Italy financially after the nation’s borrowing costs surged. Belgium, Italy, Spain and France are due to raise money via debt auctions this week. Jobs data and other important statistics from the US will also be in focus this week.
Markets may see a positive start on Europe fund hopes
The Indian markets are likely to begin in the green zone on Europe fund hopes and IMF's Italy assistance report. Positive Asian cues may lift the sentiments.
Headlines for the day:
Petrol may turn cheaper by Re 1
Fitch lowers Dhanlaxmi Bank's outlook to 'stable'
DLF hopes to reduce debt to Rs10,000 crore in two years
Nalco expects 3-fold rise in exports
Lupin eyes Rs780 crore from US market by FY14
Government considering alternatives to SAIL disinvestment
Events for the day:
Results: Escorts, Triveni Engineering & Industries, NELCO
Market may open higher on firm Asian stocks
The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 64.50 points at the opening bell. Asian shares jumped on Monday, 28 November 2011, as investors reacted to reports of European and international measures to get a grip on euro-zone debt crisis.
Reliance Industries (RIL) and its associate Reliance Industrial Infrastructure (RIIL) said on Friday that negotiations on contemplated acquisitions by RIL and RIIL of Bharti's 74% shareholding in Bharti AXA Life Insurance Company and Bharti AXA General Insurance Company were jointly terminated as parties were unable to reach agreement on the long-term vision and joint governance of the ventures with AXA. Reliance had said in June that it would buy out Bharti's stakes in joint ventures with France's AXA as it sought to build on moves beyond its core energy business. Bharti Enterprises, which controls leading Indian telecoms firm Bharti Airtel had set up the ventures -- Bharti AXA Life Insurance and Bharti AXA General Insurance -- with AXA, Europe's second biggest insurer, in 2006.
Sunday, November 27, 2011
IDFC and L&T Infrastructure Bonds for Tax Saving
Two more infrastructure bonds, which will get you an additional tax deduction of Rs. 20,000 under section 80CCF of the Income-tax Act, are out: IDFC Ltd launched its bond on 21 November and L&T Infrastructure Finance Co. Ltd launched its issue on 24 November. The tax benefit is available only for fiscal 2012.
Just a month back, Power Finance Corp. Ltd and Industrial Finance Corp. of India Ltd launched their infrastructure bonds.
IDFC to issue tax saving infra bonds
Infrastructure Development Finance Company Ltd has announced a Public Issue of long term infrastructure bonds. The fresh issue of Tranche 1 bonds will open for subscription on 21 November, 2011 and close on 16 December, 2011 or ealier as may decided by the Board of the Company. The Tranche 1 bonds are proposed to be listed on National Stock Exchange of India Ltd and BSE Ltd. The bonds will be issued in one or more tranches not exceeding Rs50bn for fiscal 2011-12. The first tranche bonds will carry interest rate of 9% per annum. The bonds will be issued in one or more tranches not exceeding Rs50bn for fiscal 2011-12. The funds raised through the Tranche 1 bonds issue will be utilized towards "Infrastructure bonds" as defined by Reserve bank of India as defined by Reserve Bank of India in the Regulations issued by it from time to time, after meeting the expenditures of and related to the issue.
Pipavav Defence sells strategic stake to US firm
Shares of Pipavav Defence and Offshore Engineering Co. Ltd. rallied on Nov. 22 after the company said that its Board of Directors had approved issue of up to 81,880,000 shares of Rs. 10 each to an international strategic investor in one or more tranches. The shares will be issued to the international strategic investor at a price not less than Rs. 110 per share or price to be determined as per the formula prescribed by market regulator SEBI. The share sale is subject to the approval of the shareholders of the Company and other requisite approvals. The investment will be a long-term strategic investment in the Company. The investor will initially subscribe to 5% of the paid up capital of the company and within specified time will increase its holding up to 10% of the paid-up capital of the company. The investor is a leading and externally reputed global conglomerate with strong interest in the defence sector. The investor will bring in critical technology required for the manufacture of complex and critical equipment, systems required by the armed forces. The investor will have a right to nominate one director on the Board of the company.
ONGC withdraws FPO documents...May file RHP again
State-run oil and gas explorer ONGC has withdrawn its FPO documents filed with market regulator SEBI apparently on the back of weak market conditions, dealing another blow to the Government's disinvestment programme. Last week, an oil ministry official reportedly said that the ONGC FPO may not take place in the year ending March 31. ONGC will file the red herring prospectus (RHP) again if instructed by the Government, Chairman and Managing Director Sudhir Vasudeva said today. "The withdrawal of RHP is technical. The document filed in September had a validity of 90 days and so we have withdrawn it. It is no reflection if the follow-on offer (FPO) is coming or not," he told reporters in New Delhi. "If and when required, we will file it again," Vasudeva said, adding that the timing will have to be decided by the Department of Disinvestment. ONGC had filed the RHP in September for the FPO whereby the Government had planned to sell a 5% stake, or 427.77 million shares, in the company.
GSM operators add 7.12 million users in Oct
A total 7.12mn subscribers have been added to the GSM operators in October compared with 6.52mn additions in the previous month. GSM subscriber base with this in the country stood at 625.41mn on October 31. According to reports, Bharti Airtel in October added 0.94mn users, taking its total subscriber base to 173.73 million. Vodafone Essar notched up 0.92mn new subscribers during the month. Its subscriber base reached 145.91 million in October. Idea Cellular with 1.63mn new users taking its total subscriber base to 101.81mn is added highest during the month. Aircel added 0.48mn customers to take its subscriber base to 60.28mn. Reports stated that BSNL and MTNL added 0.51mn and 34,919 new users, respectively, taking their subscriber base to 91.58mn and 5.36mn. MTS added 7.95mn customers, taking its total customer base to 14.06million. Reliance Communications has not been included in the Cellular Operators Association of India (COAI) data, added reports.
2G scam...Five corporate honchos get bail
Five India Inc. executives, who are accused in the 2G scam, have been granted bail by the Supreme Court, sending shares of RCOM, Unitech and DB Realty higher in a weak market. The five persons in question are: Sanjay Chandra of Unitech, Swan Telecom director Vinod Goenka and three Reliance-ADAG executives, Gautam Doshi, Hari Nair and Surendra Pipara. A bench comprising Justice GS Singhvi and Justice HL Dattu delivered the order on the bail pleas of five corporate honchos in the 2G case. They are presently lodged in Tihar Jail. The Delhi high court had denied them bail in the 2G case after the CBI opposed it saying that the accused were likely to tamper with the evidence and influence witnesses. The apex court directed the five accused to furnish two sureties of Rs. 5 lakh each. The bail to the five corporate officials has given hope to the other accused in the 2G case, including disgraced former Telecom Minister A. Raja and DMK MP Kanimozhi. On December 1, the Delhi High Court will hear the bail plea of Kanimozhi and four other accused, including Kalaignar TV Managing Director, Sharad Kumar, Director of Cineyug Media & Entertainment, Karim Morani, and Directors of Kusegaon Fruits & Vegetables, Asif Balwa and Rajiv Agarwal. Raja has not filed any application for bail so far. All the 2G accused are facing charges of criminal conspiracy, cheating, forgery and some provisions under the Prevention of Corruption Act, including abatement of offenses. The charges also include criminal breach of trust, which is punishable with imprisonment for life, or imprisonment for a term extending up to 10 years and fine.
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