- Lakshmi Mittal
- Mukesh Ambani
- Anil Ambani
- Azim Premji
- Kushal Pal Singh (DLF)
- Sunil Mittal
- Kumar Mangalam Birla
- Shashi & Ravi Ruia (Essar ;-) )
- Ramesh Chandra (Unitech)
- Pallonji Mistry
Via Forbes
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Tuesday, September 11, 2007
India's Top 10 Billionaires
Via Forbes
Seventymm selling out ?
In its bid to expand its footprint in the entertainment business, Anil Ambani-controlled Anil Dhirubhai Ambani Group (ADAG) is negotiating a buyout of India’s largest online movie rental company Seventymm Services Pvt. Ltd, which delivers video compact discs and digital video discs to homes of around 25,000 customers.
Reliance Entertainment Pvt. Ltd, part of ADAG, is already into movie rentals under the brand of Big Flix.
Seventymm chief operating officer Subhankar Sarkar denied buyout talks, but two senior ADAG and Seventymm executives, both of whom did not want to be identified, said negotiations were at an advanced stage. Terms of the potential acquisition were not immediately available. An ADAG spokesman said in an email that the group does not comment on speculation.
An executive at venture fund Matrix Partners India, a local arm of US-based firm Matrix Partners, which is one of the key investors in Seventymm with a $7 million (Rs28.7 crore) investment, too declined comment. Other backers of Seventymm include venture capital firms such as Draper Fisher Jurvetson and ePlanet Ventures.
Bangalore-based Seventymm is the largest online movie rental service in India, offering access to more than 15,000 titles across multiple languages including English, Hindi, Tamil, Telugu, Malayalam, Kannada, Bengali, Gujarati, Marathi, Assamese, Oriya, Bhojpuri, Rajasthani and Punjabi.
“This deal assumes significance as Seventymm claims 25,000 customers in six cities including Chandigarh, Bangalore, Chennai, Hyderabad, Delhi and Mumbai. Reliance ADAG could smoothly launch online movie rental business as other majors are planning to getting into this space,” a senior executive of a rival online movie rental company, who does not want to be named, said.
He added that the market is set to grow significantly with the entry of firms such as Nimbus Communications and Moser Baer. The players in the online movie rental space today include Catchflix, Friday Box Office, Cinesprite and Clix Flix.
Seventymm, promoted by entrepreneur Raghav Kher, recently acquired New Delhi-based Madhouse, which was the first Indian company to offer movie DVD rental service through the Internet, phone and text messaging services, for an undisclosed amount.
SBI gives Tata Steel 1billion $ for Corus
The State Bank of India (SBI), the country's largest lender, has come to Tata Steel’s aid for completing the fund-raising for its $12.9 billion acquisition of Anglo-Dutch steelmaker Corus.
The bank has agreed to provide up to $1 billion to Tata Steel’s special purpose vehicle, Tata Steel UK, to refinance $7.2 billion of bridge loans taken for the biggest buyout by an Indian company.
“We have approved a loan of $800 million to $1 billion to Tata Steel,” said a senior SBI official. A Tata Steel spokesperson confirmed that the company was availing of the loan from the SBI.
Tata Steel had to turn to the SBI after some foreign banks backed out, thanks to the sub-prime crisis in the US and the credit squeeze that followed.
According to reports, about $500 billion of fund-raising has been caught in a global credit logjam caused by risk aversion among banks and otherinvestors.
This is also the first acquisition financing of this size provided by the SBI, which till now was involved in deals of less than $100 million (Rs 410 crore).
“In February, the SBI had raised close to $700 million — $300 million under the medium term note programme and $400 million through innovative perpetual debt instruments — which could have been used to fund the acquisition. The company (Tata Steel) did not avail of the loan then, but now it wants it,” said the SBI official.
Early last month, Tata Steel had to agree to pay 50 basis points more on a $1-billion, seven-year loan as the banks participating in the loan syndication bargained with the underwriters for higher yield. The loan’s underwriters were ABN Amro, Citigroup and Standard Chartered.
There has been as much as 200 basis point increase in credit spreads on Indian loan and bond issues since the last week of July, when the sub-prime crisis first struck international credit markets.
Gammon India plunges as its flyover crumbles
Shares of Gammon India plunged 9% to Rs 420.65 on the Bombay Stock Exchange, post the flyover collapse in Hyderabad on Sunday evening.
The market perceives that the collapse of the flyover will result in huge losses for the company and affect the company’s ability to secure new contracts. Around 8.37 lakh shares exchanged hands on BSE on Monday.
However, analysts believe all is not lost. If it were to recover from the flyover muddle, Gammon still has the quality to do well on the bourses. The order book of the company provides strong growth visibility.
An order book at “3.6 times FY3/07” revenues provides strong visibility for growth over the next three years. With the initial mobilisation phase for a large proportion of the order book over, margins should remain stable, a construction analyst said.
Poll Results - At current market levels, you would
Total Number of Votes : 522
BUY - 25% - 135 votes
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HOLD - 41% - 218 votes
Most of the people visiting this site are holding on to their equities, sizeable % actually are buying too.
Monday, September 10, 2007
Dollar falls , Fed move watched
The dollar slid to a 15-year low against a basket of currencies on Monday, 10 September, after data showing US employers cut jobs for the first time in four years, stoking expectations for a hefty Federal Reserve rate cut this month.
Friday’s data showing companies cut 4,000 jobs last month, the first such decline since August 2003, leading investors to see a bigger chance the Fed will cut rates by 50 basis points next week to protect the economy from the housing market crisis.
Investors again sold the dollar on Monday after the unexpected drop in US jobs.
“The trend in the dollar is clearly downward,” said Tsutomu Soma, a senior manager of foreign securities at Okasan Securities.
The dollar’s trade-weighted index against six major currencies fell to a low of 79.826, the lowest since September 1992. It later pared its losses and traded at 79.927.
The dollar fell to as low as 112.60 yen on electronic trading platform EBS early on Monday but trimmed its losses on buying by Japanese importers and stood at 113.31 yen down a tad from around 113.40 yen in late US trading on Friday.
A 2.2% fall in Japan’s Nikkei share average, following a decline on Wall Street, prompted investors to trim risky yen carry trades, pushing down the dollar and higher-yielding currencies against the yen.
But Japanese importers bought the dollar aggressively, helping limit its losses, traders said.
In yen carry trades, investors use the low-yielding yen to finance purchases of assets with higher returns elsewhere. That kind of trade played a big part in the yen’s fall to a trade-weighted and inflation-adjusted 22-year low in June
Analysts believe the Fed may opt for an unusually big cut in rates from the current 5.25% to help restore confidence among banks that have become reluctant to lend to each other, leading to strains in money and credit markets.
“A September Fed rate cut is a done deal,” said Hiroshi Yoshida, a forex trader at Shinkin Central Bank. “The market is now focused on whether it will be by 25 or 50 basis points.”
The Fed usually moves in 25 basis point increments, but worries about exposures and commitments of banks to US subprime mortgages, asset-backed commercial paper and structured investment vehicles has caused money market trading to dry up.
While the interbank lending problems have affected sterling and euro markets as well, investors are increasingly turning negative on the dollar as the US economy shows most evidence of taking a hit from the housing problems.
The euro edged up 0.09% to $1.3778 edging back towards a high of $1.3853 struck in July — the highest since the single currency was first launched in 1999.
It was little changed at 156.08 yen after falling to as low as 155.15 yen on EBS earlier on Monday.
The high-yielding Australian dollar fell 0.6% against the yen and the New Zealand dollar slipped around 0.4% versus the Japanese currency.
Japanese economy shrinks
Government data on Monday showed Japan’s economy shrank 0.3% in April-June from the previous quarter, against an initial estimate of 0.1% growth.
The gross domestic product data reinforced expectations the Bank of Japan is likely to leave interest rates unchanged at 0.5% at a 18-19 September policy meeting.
“If signs emerge that the global market turmoil has a negative effect on the real economy, the BOJ might be forced to put off a rate hike this year,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
The market shrugged off the Japanese data, however, as investors were more worried about the health of the US economy, expecting the dollar’s yield advantage over the yen to shrink if the Fed cuts the benchmark interest rate.
The European Central Bank held interest rates at 4% last week, citing increased market uncertainty as the reason for its wait-and-see approach.
Sensex recovers, ITC soars
The Sensex opened with a negative gap of 176 points at 15,414, and further dropped to a low of 15,364, on the back of weak global cues. However, the index soon pared losses owing to fresh buying at lower levels.
Steady buying in select heavyweights saw the index rebound into the positive zone in mid-noon trades. The index touched a high of 15,626 - up 262 points from the day's low. The Sensex finally a tad higher (six points) at 15,597.
While the BSE FMCG index soared nearly 2% to 2085, the IT index dropped nearly 2% to 4571.
The market breadth was fairly positive - out of 2,798 stocks traded so far, 1,653 advanced, 1,086 declined, and 59 were unchanged.
INDEX MOVERS...
ITC zoomed 3.7% to Rs 185. Ambuja Cements soared nearly 3% to Rs 144.
NTPC and Ranbaxy surged over 2% each to Rs 191 and Rs 419, respectively.
Reliance Energy moved up 1.6% to Rs 864. Reliance and SBI advanced 1.3% each to Rs 1,987 and Rs 1,641, respectively.
...AND THE SHAKERS
TCS tumbled nearly 3% to Rs 1,047. Wipro shed 2.4% to Rs 467. Infosys slipped 2% to Rs 1,872, and Satyam declined 1.7% to Rs 442.
ONGC plunged over 2% to Rs 832. Hindalco dropped 1.5% to Rs 155.
HDFC and Cipla were down over 1% each at Rs 2,104 and Rs 179, respectively.
VALUE & VOLUME TOPPERS
IFCI topped the value chart with a turnover of Rs 164 crore followed by Reliance (Rs 123 crore), Aptech (Rs 106 crore), Reliance Petro (Rs 74 crore) and SBI (Rs 72.80 crore).
IFCI led the volume chart with trades of around 2.26 crore shares followed by Tata Tele (89 lakh), Nagarjuna Fertilisers (83 lakh), IKF Technologies (81 lakh) and Nandan Exim (64.30 lakh).
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