Google faces anti-trust probes in India, 4 more regions

Internet major Google is facing probes by fair trade regulators in India, Europe, Argentina, Brazil and Taiwan for alleged anti-competitive practices.

Fair trade watchdogs have the mandate to keep a check on anti-competitive business practices across sectors.

"The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India, the Taiwan Fair Trade Commission and Brazil's Council for Economic Defense have also opened investigations into certain of our business practices," Google Inc said in a recent regulatory filing.

The Competition Commission of India (CCI) began its probe in August last year. Google accounts for over 90 percent of the Internet search market in the country.

"... As far as I recall, the allegation or the complaint was that their (Google) search engine is such that it is discriminatory and it favours the platforms which Google wants to support. That is when you click on Google under a certain category, you will get the platforms where there is a tendency to put them in a certain order which may not be the fair and non-discriminatory manner. So, what is the software and what is the algorithmic search, (that is) what the investigation team is looking at," CCI Chairman Ashok Chawla had said recently.

Meanwhile, in its filing, Google also said it was pursuing a potential resolution with the European Commission's Director General of Competition, which is probing various anti-trust related complaints against the company.

"We believe we have adequately responded to all of the allegations made against us. We continue to cooperate with the EC and are pursuing a potential resolution that would avoid a finding of infringement and a fine," it said.

Besides, European Commission has opened an investigation into Motorola's licensing practices for standards essential patents and use of standards-essential patents in litigation following complaints by Microsoft and Apple.

"The European Commission has issued a Statement of Objections against Motorola alleging abuse of a dominant position with respect to these standards-essential patents. We have responded to the Statement of Objections and are defending the case," the filing said.

Also, state attorneys general from Texas, Ohio and Mississippi have also issued Civil Investigative Demands relating to the company's business practices.

"We are co-operating with the state attorneys general and are responding to their information requests on an ongoing basis," it added.

08.12 | 0 komentar | Read More

Optimistic on Indian aviation sector in long-run: Boeing

Boeing management said that while the aviation sector in India may continue to face short term pain, the overall sentiments would improve in the coming years with new players like Air Asia and Tata-SIA entering the market. Dinesh Keskar, VP- sales, of Boeing Commercial Airplanes is very bullish on the Indian aviation sector going forward.

Also read: What govt needs to do to boost low-cost carriers in India

Below is the edited transcript of his interview to CNBC-TV18.

Q: What are your thoughts on the Indian aviation market?

A: We have a very good backlog in our system and we can adjust some of it if we need to. However we think Indian market will continue to grow.

There could be a slower growth; there could be a higher growth. But it will grow and we continue to be bullish on Indian market. This is a key product and we will be here.

Q: There are new alliance coming in AirAsia; Tata Singapore Airlines have already applied for NOC. So, overall does it augur well for the overall aviation market? As a big manufacturer how do you look at these developments?

A: We have always said that this is a market that is going to grow. Our forecast today is about 1450 airplanes, USD 175 billion. The forecast doesn't say who will be the airlines flying. The demand for this market is to satisfy its needs.

Clearly, we will see that this forecast will be matched because our previous forecasts have been true. I have no reason to believe this forecast will not be matched. Tata-Singapore and other airlines into the market will only help this forecast grow.

If the prices of the fuel and exchange rate, which is out of control of the airline are reasonable, the growth here is going to be phenomenal.

08.12 | 0 komentar | Read More

IRB Infra commences toll collection on Kolhapur highway

Oct 29, 2013, 09.17 PM IST

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

Like this story, share it with millions of investors on M3

IRB Infra commences toll collection on Kolhapur highway

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

Like this story, share it with millions of investors on M3

IRB Infra commences toll collection on Kolhapur highway

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

Share  .  Email  .  Print  .  A+A-

Construction and engineering firm IRB Infrastructure Developers  on Tuesday said it has commenced toll collection on Kolhapur highway in Maharashtra.

"IRB Kolhapur Integrated Road Development Co Pvt Ltd, wholly-owned SPV (Special Purpose Vehicle) of the company, has commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17," IRB Infrastructure Developers Ltd said in a BSE filing.

The company said that "subsequent to withdrawal of suspension on toll notification by the State of Maharashtra and pursuant to the directions of the Honourable Bombay High Court to the State of Maharashtra to provide police protection to each of the toll plaza of the Project," it has commenced the toll collection on the project.

On October 29, 2013, IRB Infrastructure Developers closed at Rs 77.10, up Rs 3.55, or 4.83 percent. The 52-week high of the share was Rs 146.95 and the 52-week low was Rs 51.90.

The company's trailing 12-month (TTM) EPS was at Rs 5.31 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 14.52. The latest book value of the company is Rs 47.28 per share. At current value, the price-to-book value of the company was 1.63.

08.11 | 0 komentar | Read More

Tata Steel says could cut around 500 UK jobs

Tata Steel , Europe's second-largest steel producer, said on Tuesday it could cut around 500 jobs under plans to restructure the part of its British business that supplies the construction and engineering industries.

Also Read: Tata Steel to build 15mn pound furnace at UK plant

Changes to its long products business - which makes tubes, rails and rods, used in many industrial sectors - will affect management and administrative jobs at sites in northern England, primarily Scunthorpe, where 340 positions could be lost, Tata said.

It blamed a prolonged downturn in demand, particularly for construction steel in Britain, a market which is at about half of 2007 levels.

"European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years," Karl Koehler, CEO of Tata Steel's European operations, said.

"On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry."

The USD 500-billion-a-year steel industry, a gauge of the health of the global economy, has suffered from a drop in demand from austerity-hit Europe and worries about the outlook for the Chinese economy.

Tata has battled tough conditions in Europe almost since taking over steelmaker Corus in 2007, just before the global financial crisis, and Tuesday's cuts follow a major restructuring of its long products unit in 2011, with the loss at the time of about 1,500 jobs in Britain.

Tata said then that it was mothballing parts of its Scunthorpe plant to refocus on high-value markets.

On October 29, 2013, Tata Steel closed at Rs 325.65, up Rs 13.25, or 4.24 percent. The 52-week high of the share was Rs 448.10 and the 52-week low was Rs 195.40.

The company's trailing 12-month (TTM) EPS was at Rs 52.13 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 6.25. The latest book value of the company is Rs 568.46 per share. At current value, the price-to-book value of the company was 0.57.

08.11 | 0 komentar | Read More

Apollo Hospitals Group partners with KKR to raise Rs 550 cr

Healthcare major Apollo Hospitals said it has entered into a partnership with American private equity fund Kohlberg Kravis Roberts (KKR) to raise Rs 550 crore to repay promoters' debt and build more hospitals.

"The partnership involves a Rs 550 crore long-term investment by KKR, together with its affiliates and select investors, in PCR, the holding company for the Apollo Hospitals Group," the healthcare group said in a statement.

The PE fund will subscribe to the convertible debentures issued by Prathap Reddy's holding company PCR Investments with an option to convert these debentures into equity shares of listed Apollo Hospitals at the end of five years, Apollo Hospitals said.

The promoters also will have the right to buy back these instruments at the end of two years, it added.

At the end of September quarter, PCR Investments held 18.42 percent stake in Apollo Healthcare.

"The investment is in the form of 5 year callable security that consolidates existing debt at PCR and initiates a partnership in the healthcare sector across the two firms," Apollo Hospitals said.

Commenting on the development, Apollo Hospitals Group Chairman Pratap C Reddy said: "This transaction is the culmination of very involved deliberations with the clear intent of working together to create long term value for the group and reflects our philosophy of partnering with players who have a long term view and deep understanding of the healthcare space."

Kohlberg Kravis Roberts (KKR) also said it is looking forward to partnering with the domestic healthcare major.

"KKR has a history of successful investments in the healthcare sector globally, including in market-leading businesses like Hospital Corporation of America and Alliance Boots, and we are very excited with the opportunity to partner with Dr Reddy and family who have created one of India's finest healthcare businesses," KKR India CEO Sanjay Nayar said on the development.

This partnership that has been initiated through the company's alternative credit business in India, and will look to pave the way for a much broader engagement between the firms as partners, he added.

Shares of Apollo Healthcare closed at Rs 878.95 apiece, down 1.35 percent on the BSE

On October 28, 2013, Apollo Hospitals Enterprises closed at Rs 878.95, down Rs 12.05, or 1.35 percent. The 52-week high of the share was Rs 1096.15 and the 52-week low was Rs 759.00.

The company's trailing 12-month (TTM) EPS was at Rs 22.88 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 38.42. The latest book value of the company is Rs 196.05 per share. At current value, the price-to-book value of the company was 4.48.

08.11 | 0 komentar | Read More

SpiceJet hopes for a revival in profitability

Oct 28, 2013, 10.35 PM IST

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

Like this story, share it with millions of investors on M3

SpiceJet hopes for a revival in profitability

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

Like this story, share it with millions of investors on M3

SpiceJet hopes for a revival in profitability

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

Share  .  Email  .  Print  .  A+A-

Low cost carrier SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to SpiceJet senior vice president V Raja on the strategy undertaken by the airline to return on the path of profitability.

Also Read: SpiceJet plans gradual global expansion

V Raja, senior VP- Commercial, SpiceJet says "We have rationalised some of the routes that we have operated. We have increased our forays into international markets where costs are probably lower in terms of the ATF (aviation turbine fuel). We are increasing our revenues from the ancillary revenue source and are trying to reduce cost wherever possible. So, we are taking some of these steps to ensure that we return back to profitability as soon as possible."

On October 28, 2013, SpiceJet closed at Rs 20.30, down Rs 0.5, or 2.4 percent. The 52-week high of the share was Rs 50.90 and the 52-week low was Rs 18.05.

The latest book value of the company is Rs -3.88 per share. At current value, the price-to-book value of the company was -5.23.

08.11 | 0 komentar | Read More

Walmart resumes US lobbying on FDI in India

Global retail giant Walmart has resumed its lobbying with the US lawmakers on matters related to FDI in India and it spent USD 1.5 million on about 50 specific issues, including those related to Indian market during the last quarter.

"Discussions regarding Foreign Direct Investment in India" is one of the ten-odd specific issues in the area of trade that were carried out by registered lobbyists on behalf of Walmart during third quarter of 2013, according to its latest Lobbying Disclosure Form submitted to the US Senate.

Also read: Studying feasibility of FDI norms in multi-brand: Wal-Mart

Overall, Walmart lobbyists discussed nearly 50 'specific issues' with the US lawmakers during the quarter, resulting into total expenses of USD 1.5 million relating to lobbying activities for the reporting period, shows the 19-page disclosure report.

Walmart's lobbying activities covered the Senate, House of Representatives, Department of State, US Trade Representatives, US Agency for International Development and the Department of Labour, among others.

As per Congressional records, Walmart had halted its lobbying with the US lawmakers and federal agencies on India- specific issues in the preceding quarter, after seeking their support for about five years to facilitate its entry into the high-growth Indian retail market.

However, such lobbying activities resumed during the last quarter -- a period which also saw hectic parleys in India with regard to Walmart's business activities in the country.

After months of discussions, Walmart earlier this month announced buyout of Bharti group's 50 per cent stake in their wholesale retail business in India.

Walmart has also been requesting the Indian government to further relax norms for FDI in multi-brand retail business, where 51 per cent foreign equity was allowed last year despite opposition by various political parties.

Incidentally, a probe report on Walmart's lobbying for entering India may soon be discussed by the Union Cabinet. The probe is said to have remained inconclusive as Walmart and others did not provide required information. .

The Indian government had ordered the probe on Walmart's lobbying late last year after a huge political outcry over the American retail giant having spent millions of dollars on its lobbying activities in the US for years on various issues, including on access to the Indian market and the relevant FDI norms.

Lobbying is legally permitted in the US, but the companies and their registered lobbyists are required to make detailed disclosures about their activities every quarter.

Walmart, on its part, has been maintaining that it has disclosed all its lobbying activities as per the US rules and it did not violate any Indian regulations in this regard.

There are no clear regulations on lobbying in India, although companies here also indulge in activities promoting their cause with the government and other agencies, either directly or through industry bodies and other groups.

As per the Congressional records, Walmart began lobbying in the US on India-specific issues way back in 2008. Since then, the company has spent a total amount of USD 39.42 million (about Rs 242 crore) on numerous lobbying issues, including those related to India.

Out of this, over USD five million have been spent so far in 2013. Walmart's lobbying issues did not include India in the second quarter of this year, while the first quarter of 2012, as also all four quarters of 2009 also did not have any single lobbying issue related to India.

Walmart and many other overseas supermarket chains have been wanting to set shop for many years in India, which opened up this business for foreign players only last year.

Still, there are many restrictions, such as those on sourcing of products, that are keeping foreign multi-brand retailers away from the country.

Separately, Walmart was also facing a probe by the Enforcement Directorate here for alleged violation of FEMA (Foreign Exchange Management Act) norms, but is said to have been given clean chit on that front.

08.12 | 0 komentar | Read More

SpiceJet plans gradual global expansion

Aiming to expand its international network gradually, no-frills carrier SpiceJet today said it would add two more global destinations, Dammam and Kuala Lumpur, by March next year along with increasing frequencies on certain foreign routes.

"We are going to start operations to Dammam (Saudi Arabia) and Kuala Lumpur (Malaysia) within this financial year. We are currently working on the financial details and also trying to increase frequencies to certain existing destinations," SpiceJet's Senior Vice President (Commercial) V Raja said here today.

Also read: FIR against Mallya, KFA for non-payment of airport fee

Asked whether SpiceJet was in talks with any foreign carrier for investment in its equity, he said these were "only reports", but added that "if there is a good proposal which is economically and commercially good for us, it will be wrong not to look at it".

With this planned expansion, SpiceJet would raise its foreign flights per day from 28 to about 42 within this financial year, Raja and other senior airline officials said.

Raja was talking to reporters after the airline added the Thai capital, Bangkok, as its tenth foreign destination, launching two flights simultaneously from Bangalore and Pune to the Suvarnabhumi International Airport here.

Congratulating the Indian carrier for starting the services, Indian Ambassador to Thailand Anil Wadhwa said the growing number of flights from India would further cement the historic bilateral ties and improve regional connectivity.

There were currently 156 flights per week between the two countries, with leisure and business travel growing at a phenomenal pace.

"Last year over 1.15 million Indians visited Thailand, while 88,000 Thai visitors went to India, mainly to Buddhist pilgrimage sites," the envoy said.

Besides being a popular destination for shooting of films, Thailand have also emerged as a favourite wedding destination with business estimated at around 30-40 million Baht (USD 32 million) a year, growing at a rate of 15-20 per cent rate.

"These is certainly a positive trend for airlines operating from India," Wadhwa said, adding that ten Indian cities are now connected with Bangkok.

Referring to road connectivity, the Indian ambassador said initiatives like the India-Myanmar-Thailand trilateral highway under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) framework is under construction to connect the two nations.

India has invested USD 258 million on the 1,632 km long highway and is constructing 71 bridges on the entire length.

On October 25, 2013, SpiceJet closed at Rs 20.80, up Rs 0.50, or 2.46 percent. The 52-week high of the share was Rs 50.90 and the 52-week low was Rs 18.05.

The latest book value of the company is Rs -3.88 per share. At current value, the price-to-book value of the company was -5.36.

08.12 | 0 komentar | Read More

No-confidence motion moved against GCMMF Chairman

A no-confidence motion has been moved against the Chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), the apex marketing body of various district dairy cooperatives that markets Amul brand for alleged mismanagement.

The resolution to bring no-confidence motion against Vipul Chaudhary was signed by 14 out of 17 directors of various district dairy cooperatives and is expected to be taken up at the board meeting on Saturday.

A director, who had signed the resolution, said "Despite protests from several quarters in the Board not to sell cattle feed to Maharashtra, Mr. Chaudhary went ahead with the decision and gave it for free to the neighbouring state."

"However, when Gujarat was reeling under scarcity and the state government approached the federation for cattle feed, it was provided but not free of cost," the director said.

"Mismanagement in Mehsana's Dudhsagar Dairy Board, where Mr. Chaudhary is the chairman, has also come to the fore," the director said, adding that Mr. Chaudhary had taken several decisions which were against the federation's constitution.

Mr. Chaudhary had taken over as GCMMF chairman in August 2012.

Repeated attempts to contact Mr. Chaudhary failed. There are three district dairy cooperatives which are backing him. Those who are not signatories to the resolution to move no-confidence motion are Amul Dairy of Anand, Mehsana's Dudhsagar Dairy and Valsad Dairy.

Kaira District Cooperative Milk Producers' Union Ltd Chairman Ramsinh Parmar said, "The no-confidence motion against Chaudhary is illegal. Why have they brought the motion? What wrong has he done? Has he caused losses to GCMMF, farmers?"

"Those who have brought the motion are not thinking about the consumers or about marketing," he said.

08.11 | 0 komentar | Read More

Ajit Singh writes to PM seeking export sops for sugar mills

In view of surplus domestic sugar output, Union Minister Ajit Singh today shot off a letter to Prime Minister Manmohan Singh demanding export sops and hike in import duty to improve finances of millers.

The letter to PM comes in the backdrop of sugar mills, particularly from Uttar Pradesh, facing financial problems because of lower sugar rates. UP mills have not been able pay cane arrears to the tune of Rs 2,400 crore. They have also incurred cash loss of Rs 3,000 crore last year. Singh, the chief of Rashtriya Lok Dal, also warned that mills may delay crushing operation of sugarcane and compel farmers to burn cane this year.

"30-40 lakh tonnes of sugar needs to be exported in the next 8-10 months. I understand that the global sugar prices are depressed and sugar exports from India is unviable. "Therfore, similar to 2006-07 and 2007-08 season, the government should announce incentives to target for 30 lakh tonnes of exports," said Singh, whose party has strong presence in the sugarcane belt of western UP, in the letter. The country's sugar output stood at over 25 million tonnes in the 2012-13 season (October-September) against the demand of 22 million tonnes. India started the new sugar marketing year on October 1 with record carry-forward stocks of 8 million tonnes.

With so much surplus sugar in the country, Singh said: "There is obsolutely no reason to import any sugar into India. We need to export sugar and not import cheap sugar from Brazil and Pakistan. Hence, the improt duty on sugar should be increased from 15 percent to 40-60 percent immediately."

Stating that banks are not showing interest to extend working capital loans to mills, Singh said, "Unless efforts are made to reduce the surplus to the manageable levels and mills are financially assisted, the sugar industry will struggle for liquidity."

The ex-factory sugar price in UP have falled to Rs 29 per kg now, as against Rs 36 per kg in the year-ago period. "May I therefore request for your personal intervention in the matter and get the above request examined in the next meeting of the Cabinet," he wrote in the letter.

"Any delay may cause many sugar mills do no operate and may lead farmers to burn their cane, which will create a difficult situation to control," he said in the letter.

08.11 | 0 komentar | Read More

Q2 earnings hit by recent regulatory actions: Wockhardt

Troubled drug maker Wockhardt reported a weak set of Q2 earnings . It posted a 70 percent drop in its profit after tax at  Rs 138 crore and an 11 percent drop in consolidated revenues at Rs 1197 crore on a year on year basis because of product recalls and import ban on its facilities from the US and UK regulators on non GMP compliance.

As the drug regulators tighten their noose, Wockhardt stock has been volatile and investors are wary of the company's recovery and this was evident during the company's investor call as prominent investor Rakesh Jhunjhunwala quizzed Wockhardt chairman Habil Khorakiwala about the company's remediation plans.

Below is the edited transcript of the interview

Q: You have various regulatory problems in various plants. So you think to resolves all this it will take around 15 months?

A: In terms of our corrective and remediation plan it will take about six months, I feel. Then we will apply for re-inspection and then it depends on the regulatory agency. Probably the entire process will take upwards of a year from now. It could be earlier than that or it could take longer than that. The situation is very uncertain and it is very difficult to predict.

Q: Today Waluj facility is under an import alert, remediation plan is under progress and when it is complete and we are ready, we will ask FDA for a re-inspection. Is it the same for Chikalthana?

A: That's right. For Chikalthana, as far as US is concerned, we have provided our responses, they have not taken any action as of now.

Q: So we are able to export to the US from Chikalthana?

A: Yes we are exporting to the US from Chikalthana. For the UK market, we can export 10 out of the 22 products that are registered there, which has an annualized value of 3 million pounds.

On October 25, 2013, Wockhardt closed at Rs 455.35, down Rs 4.5, or 0.98 percent. The 52-week high of the share was Rs 2166.05 and the 52-week low was Rs 344.15.

The company's trailing 12-month (TTM) EPS was at Rs 51.43 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 74.56 per share. At current value, the price-to-book value of the company was 6.11.

08.11 | 0 komentar | Read More

No-confidence motion moved against GCMMF Chairman

A no-confidence motion has been moved against the Chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), the apex marketing body of various district dairy cooperatives that markets Amul brand for alleged mismanagement.

The resolution to bring no-confidence motion against Vipul Chaudhary was signed by 14 out of 17 directors of various district dairy cooperatives and is expected to be taken up at the board meeting on Saturday.

A director, who had signed the resolution, said "Despite protests from several quarters in the Board not to sell cattle feed to Maharashtra, Mr. Chaudhary went ahead with the decision and gave it for free to the neighbouring state."

"However, when Gujarat was reeling under scarcity and the state government approached the federation for cattle feed, it was provided but not free of cost," the director said.

"Mismanagement in Mehsana's Dudhsagar Dairy Board, where Mr. Chaudhary is the chairman, has also come to the fore," the director said, adding that Mr. Chaudhary had taken several decisions which were against the federation's constitution.

Mr. Chaudhary had taken over as GCMMF chairman in August 2012.

Repeated attempts to contact Mr. Chaudhary failed. There are three district dairy cooperatives which are backing him. Those who are not signatories to the resolution to move no-confidence motion are Amul Dairy of Anand, Mehsana's Dudhsagar Dairy and Valsad Dairy.

Kaira District Cooperative Milk Producers' Union Ltd Chairman Ramsinh Parmar said, "The no-confidence motion against Chaudhary is illegal. Why have they brought the motion? What wrong has he done? Has he caused losses to GCMMF, farmers?"

"Those who have brought the motion are not thinking about the consumers or about marketing," he said.

08.11 | 0 komentar | Read More

IMG reviews performance of 16 coal blocks

The Inter-Ministerial panel on coal blocks today reviewed the performance of 16 mines alloted to firms including JSPL , NTPC , SAIL , Abhijeet Infrastructure and Tata Power . However, no decision was taken on the coal blocks, said a source, adding that some of the companies present gave reasons like lack of environmental clearances and regulatory hurdles for delays in development of the mines.

"The allocatees of 16 coal blocks made presentations before the Inter-Ministerial Group (IMG). However no decision was taken today," the source said. IMG will meet again tomorrow, for the third day, and review the performance of another 14 mines alloted to firms including JSPL, Monnet Ispat & Energy, Birla Corp and Rathi Udyog, he said. The panel reviewed the progress of 17 mines yesterday and recommended that show-cause notices be issued to some of the companies for delays in developing them.

Also Read: CBI files fresh status report in SC on Coalgate

The Coal Ministry had earlier asked the companies to make presentations before the IMG on the achievement of milestones prescribed for developing mines that were allotted to them and their reasons for delays. "It has been decided to provide an opportunity to you (coal block allocatees) to present your explanation/version before the IMG on the current status of development of allocated coal block," the ministry had said.

"You are requested to make a presentation with respect to the achievement of different milestones prescribed for the development of coal block and reasons for delay, if any, with respect to achievement of the same," it had said. The coal block allottees were earlier issued show-cause notices for delaying the production from their mines. The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation.

The panel under the chairmanship of Additional Secretary in the Coal Ministry has members from other ministries including steel and power.

On October 24, 2013, Jindal Steel & Power closed at Rs 240.90, down Rs 4.55, or 1.85 percent. The 52-week high of the share was Rs 473.90 and the 52-week low was Rs 181.55.

The company's trailing 12-month (TTM) EPS was at Rs 19.46 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.38. The latest book value of the company is Rs 132.09 per share. At current value, the price-to-book value of the company was 1.82.

08.11 | 0 komentar | Read More

Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Oct 24, 2013, 09.18 PM IST

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

Like this story, share it with millions of investors on M3

Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

Like this story, share it with millions of investors on M3

Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

  .   Share  .  Email  .  Print  .  A+A-

The government is unnecessarily wasting time on HZL and Balco. That's the word coming in from Vedanta chairman Anil Agarwal. Vedanta will take the proposal to shell out nearly USD 4 billion to buy the residual stake to its shareholders in 6 days from now. Agarwal insists this is not a revised offer to the government, but only an enabling resolution.

Also Read: Vedanta hopeful of govt taking Rs 21,600 cr divestment bait

Anil Agarwal, Chairman, Vedanta, says: "The intention that we can merge together, we can have a fungibility, so this year this was the intention. The government also keeps telling us but it also doesn't want us to buy the share. This share government wants to disinvest. It can offload in the market, it can give it to us, but they have to take a view. It is probably unnecessarily spending so much of time. We are always ready."

CNBC-TV18's Nayantara Rai reports that this has been in the works for a very long time and the part of the problem is that the government is still deciding whether it can look at an out of court settlement, etc.

Finance Ministry is very keen for this stake sale to take place. The Mines Ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared, the mines ministry has been sticking to its stance over there.

Meanwhile, Vedanta chairman added that business as usual, but he would like to have full control and ownership of both of these companies. He also insisted that this is not a revised offer to the government, but merely an enabling resolution that is going to be taken from shareholders on October 31 in London.

Further, he added that as of now, there are no discussions about Vedanta buying Cairn Energy's minority stake in Cairn India , but he is open to it and this could be looked at a later stage.

On October 24, 2013, Hindustan Zinc closed at Rs 134.10, down Rs 0.4, or 0.3 percent. The 52-week high of the share was Rs 146.80 and the 52-week low was Rs 94.00.

The company's trailing 12-month (TTM) EPS was at Rs 16.75 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 8.01. The latest book value of the company is Rs 76.39 per share. At current value, the price-to-book value of the company was 1.76.

08.11 | 0 komentar | Read More

Hope to get clearance by Dec for Malanjkhand expansion: HCL

State-owned Hindustan Copper today said it is hopeful of securing National Wildlife Board's permission by December for expanding its flagship Malanjkhand mine in Madhya Pradesh, which is the single largest copper deposit of India with nearly 70 per cent of the country's reserves.

Expansion of the Malanjkhand mine to 5.2 million tonnes per annum capacity (MTPA) has already been held up by over one and half years due to delays in securing various regulatory approvals. Hindustan Copper (HCL) had secured environment clearance last month for expanding the capacity of the mine subject to a final clearance from National Wildlife Board as the mine is located only 20 km from the Kanha National Park.

Also Read:  Output rises at Indian zinc, oil and gas units, says Vedanta

"State Wildlife Board has given its recommendation, now it has been sent to National Wildlife Board, where we have submitted the required documents. We hope to get the forest clearance by December if everything goes as per plan. There is no delay on our side," company's Chairman and Managing Director Kailash Dhar Diwan said.

He was speaking to reporters after presenting a dividend cheque of Rs 83.27 crore to Mines Minister Dinsha Patel. In 2012-13, the company had reported its best ever profit after tax of Rs 355.64 crore.

The Malanjkhand mine currently has a production capacity of 2.25 million tonnes and contributes about 80 per cent of Hindustan Copper's total production. It has extractable copper reserves of 141 million tonnes, amounting to 70 percent of India's known copper reserves. The company has set a target of completing the expansion of mine by 2017 despite the delays and will be spending about Rs 1,857 crore for the purpose. Of that, the company has already awarded contracts worth Rs 1,176 crore, Diwan said.

Speaking on the occasion, Mines Minister Patel said his ministry will lend all support in securing clearance from National Wildlife Board, so that expansion of the Malanjkhand mine can get completed on time.

"Their (HCL's) performance has improved last year compared to previous two years. There is nothing called 100 percent satisfaction but they are doing good work and I hope that their performance will improve further... Our department will try its level best to secure clearances for the (Malanjkhand) mine," he said.

Hindustan Copper is working on three-pronged strategy to expand its production capacity to 12.41 MTPA from existing 3.66 MTPA and has plans to invest about Rs 3,434 crore by 2017-18.

Accordingly, the company is working to increase the capacities of its existing mines like Malanjkhand, Khetri, Kolihan and Surda. Besides, it also plans to reopen closed Kendadih and Rakha mines and undertake mining at new mines, Banwas and Chapri-Sidheswar. During the current fiscal, it is expecting to invest about Rs 690 crore.

On October 23, 2013, Hindustan Copper closed at Rs 73.60, up Rs 7.25, or 10.93 percent. The 52-week high of the share was Rs 276.50 and the 52-week low was Rs 42.50.

The company's trailing 12-month (TTM) EPS was at Rs 3.53 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 20.85. The latest book value of the company is Rs 17.78 per share. At current value, the price-to-book value of the company was 4.14.

08.11 | 0 komentar | Read More

Govt for minimum 6% of vehicle price as registration tax

The government today favoured a levy of a minimum 6 percent of the sale price of the vehicle as a lifetime tax by various states. Ministry of Road Transport and Highways today recommended all the states should levy a lifetime tax at floor rate of 6 percent of the sale price of the 2-wheelers, cars and LMVs (light motor vehicles).

Also Read: Global carmakers need to look beyond 'BRICs': Study

"These are recommendations to the states, we are trying to prevail upon them," Road Secretary Vijay Chhibber told reporters after the meeting of Transport Development Council. The council comprises transport commissioners from all the states and Union Territories.

At present different states have different tax structure. States having higher taxes lose out on revenue when people purchase vehicles from states that have lesser levies, he said. "In our various discussions over the proposal there seem to be a clear idea that a uniform tax is not possible, nobody (state) will agree to it and so we decided that let us agree on a floor/base rate and it is in common interest of everyone," Chibber said.

He added that if the government brings it down to make it uniform it will lose revenues. These are recommendations by the central government to all the states. He said that for the Union Territories the central government can enforce it but for other states there cannot be enforcement.

"Majority of states have resolved to carry forward the recommendations barring a few and efforts are on to bring them board," a Road Ministry official present at the meeting said. As part of the resolution passed by the council, flexibility is made available to the states to charge higher tax (above the floor rate of 6 percent) in general or specific mode of vehicles.

Haryana government has said the percentage of levy should be raised in phases instead of making it one time. Transport Commissioner, Haryana, Ashima Brar said that if the levies are undertaken in a phased manner there would be lesser burden on the consumer if it is a case of increase in tax.

"In our state raising it from present 3 percent to the minimum level of 6 percent will hurt the consumer, so we have a request that it should be done in a phased manner," she said in her presentation. These recommendations, discussed in today's meeting of the Transport Development Council, will be applicable from April 1, 2014.

08.11 | 0 komentar | Read More

SBI to take decision on raising fund from QIP in a month

State Bank of India (SBI) today said it will take a decision on raising fund through qualified institutional placement (QIP) in a month's time.

"We will take a decision on QIP shortly...within a month," SBI Chairperson Arundhati Bhattacharya said here. "Now, whatever capital they (government) give, to that extent we can take QIP or whatever other ways possible...So that we can retain the government stake at the same level," she said.

Financial Services Secretary Rajiv Takru said that banks will be allowed to raise capital from the markets in the proportionate amount infused by the government to maintain the government's shareholding.

"Government shareholding will not go down from the current level," he said. On capital infusion, Bhattacharya said last time also when the govt infused money in SBI, they had actually increased their shareholding from 58 per cent to 63 percent.

Last fiscal, the government had infused Rs 3,004 crore into SBI. The lender raised the money through a preferential allotment of shares to the government. Asked about measure taken to reduce non-performing assets, she said: "We have to extend the time period that we have given to them in order to perform."

If management change is required, it will be done for recovery of loan, she said. "But it is not something that will be done in one or two days' time. We will a considered view. We will consider it as one of the ways in which to resolve the NPAs," she added.

On October 22, 2013, State Bank of India closed at Rs 1676.90, up Rs 5.65, or 0.34 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 198.74 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.44. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company was 1.16.

08.11 | 0 komentar | Read More

New launches not linked to Nokia-Microsoft deal: Elop

Finnish handset-maker Nokia is taking the battle straight to the doorsteps of market leaders Apple and Samsung. In the Nokia World event in Abu Dhabi, the company unveiled its new Windows-based tablet - the Lumia 2520. The tablet comes with a 10-inch screen and a 6.7 megapixel camera and has been priced at USD 499.

Also Read: Nokia launches tablet, joins large-screen smartphone race

Not just that, Nokia has also launched Lumia phone with a bigger 6-inch screen and a 20 megapixel camera. The new Lumia 1520 has been priced at USD 799.

The company also launched three low-cost phones in its Asha series targeting developing nations like India. One of the Asha models will also support 3G.

Nokia Executive Vice-President Stephen Elop told CNBC-TV18's Malvika Jain that with each of the devices it picks the right moment to enter the market when the company is convinced that it has a compelling and differentiated solution something that really stands out. He says the timing of the launch is not linked to the Nokia-Microsoft deal.

Meanwhile, Elop is worried about the tax issues plaguing the company in India. He says the company is in talks with the Indian government to resolve these issues. "We are fully compliant with all tax laws," he stresses.

Below is the verbatim transcript of Stephen Elop's interview on CNBC-TV18

Q: Tell us more about your new product launches?

A: We decided to enter the market with a series of products that demonstrate the very best in design. Some great imaging capabilities, the ability to take pictures in a beautiful way as well as a whole range of new experiences and with each of the devices we pick the moment to enter the market when we think we have a very compelling and differentiated solution something that really stands out.

So, whether it is something like the Lumia 2520 tablet, where the design of this is so beautifully aligned with all the other work that we have done. We look at products like that and pick the right moment to enter the market. Today we felt it was the right moment for these products.

Q: In hindsight do you feel that Nokia should have probably tried atleast one device on the Android platform?

A: Our belief was it was more important to focus on something that was truly different because if you look at the Android marketplace right now, while there is one vendor who is quite successful there are many others that have fallen by the wayside or are having a great deal of difficulty.

We recognize the need to partner differently because of where we were in our development with Symbian and various other efforts. We recognize that difference and said we need to do something quite different. So, we are pleased with what we have done.

Q: While this launch of swanky Asha devices and convergence with say an Instagram or a Whatsapp is something that's been on Nokia's mind for a while but we did not see any movement and now with your intent to enter into a deal with Microsoft we are seeing a lot of traction. So, is it correct to infer that it is Microsoft that is driving Nokia's future strategy already?

A: The timing of the launch of any of these devices is unrelated entirely to the Microsoft transaction with Nokia. Devices like this take many months to properly plan and consult with customers and so to be able to stand here today with working devices with brilliant new experiences is something that is many months in the making.

So, what you see here is a natural next step in the process that you have seen with for example our Lumia products all along.

Q: What is it that the Microsoft deal would actually mean for Nokia as a company in terms of its business strategy, operations other than the devices segment and in terms of human resource planning?

A: Two things happen simultaneously when the Microsoft transaction happens and just to remind viewers it hasn't happened yet, it is something that is subject to our shareholder approval and regulatory approval. When it does happen the devices team at Nokia will join Microsoft and our belief because of the opportunity to reduce the natural frictions between two companies the ability to place greater concentrated and focused investments, the pooling of technology, we think this means an even greater chance of success for the Windows phone efforts which translates into better job security and growth for that portion of Nokia that is going to Microsoft.

However, Nokia separately carries on after the Microsoft transaction because it has the Nokia solutions and networks business which is focused on mobile broadband and its intellectual property capabilities.

Q: What about the tax issues that Nokia is facing in India?

A: We have always followed all the proper regulations and everything appropriate from a tax perspective and we are very open and continue to work with the Indian government to find a resolution to the difficulty and I hope at some point we will.

Q: Do you think arbitration is an option?

A: I think we will just continue to work with the government and find a way through it.

08.11 | 0 komentar | Read More

TCS wins multi-million dollar IT deal from Bombardier

IT services major TCS has bagged a multi-million dollar deal from leading rail vehicles maker Bombardier Transportation for managing IT infrastructure of its newly commissioned data centres.

"The multi-year, multi-million deal, is the first that TCS has signed with a rail-transportation technology provider," TCS said in a release. It did not reveal financial details of the deal. Bombardier Transportation is a world leader in rail transportation with operations in over 60 countries.

As part of the contract, TCS will provide remote infrastructure management (RIM) of Bombardier Transportation's recently established data centres in Germany. The new data centres will establish a technology platform for Bombardier, through introduction of private cloud services paired with a high level of virtualisation, the statement said.

Also Read: TCS plans lateral hiring; ups FY14 target to 50,000

TCS will also provide SAP Basis support to Bombardier Transportation. "India is central to Bombardier's Information Services strategy - our relationship with TCS offers operational excellence in markets around the world," Bombardier Transportation Vice President Thomas Leidenbach said.

Sapthagiri Chapalapalli, Head of Central Europe at TCS, said: "This is a strategic step forward for TCS as it establishes us as a partner of choice for infrastructure services in the German market." TCS' Central Europe operations (an operating area cutting across Germany and Austria) comprise over 4,000 professionals, servicing more than 80 leading German and Austrian companies such as Commerzbank, Daimler, Deutsche Bank, Deutsche Börse, as well as growing set of upper midsize companies.

Backed by large deal wins from Europe and the US, TCS last week announced better than expected 34 per cent jump in net profit to Rs 4,702 crore for the July-September quarter this year.

On October 21, 2013, Tata Consultancy Services closed at Rs 2073.50, down Rs 46.9, or 2.21 percent. The 52-week high of the share was Rs 2258.05 and the 52-week low was Rs 1197.60.

The company's trailing 12-month (TTM) EPS was at Rs 77.34 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 26.81. The latest book value of the company is Rs 165.86 per share. At current value, the price-to-book value of the company was 12.50.

08.11 | 0 komentar | Read More

Privatisation of 6 major airports likely ahead of LS polls

Civil Aviation Ministry is hopeful of completing the process of privatising six major airports, including those at Chennai and Kolkata, within a time-frame and ahead of the 2014 general elections. The Ministry's move to hand over these airports, developed by the Airports Authority of India (AAI), through public-private partnership in the next 2-3 months to private parties suffered a setback with the sale of bid documents for Chennai and Lucknow airports being postponed by several weeks.

"We are quite optimistic about doing it within the time-frame. There is some cushion period available which we are using now," Civil Aviation Secretary K N Shrivastava said when asked whether the entire process of bidding, selection of the bidder and the award of the project would be completed before the general elections likely early next year.

"We are going through the process of consulting all stakeholders, including Planning Commission. We have held pre-bid consultations with prospective bidders. Our effort is to see that Request for Proposal (RFP), Requests for Qualification (RFQ), the concession agreement and other documents are properly drafted so that no issues are raised later," he said.

To questions on changes being made in the documents, Shrivastava said, "The stakeholders have given several suggestions. We may incorporate some of the valid suggestions and change the RFQ accordingly.

The documents have to be legally perfect." The private parties, which are in the race to participate in the operation, management and transfer of these airports at Chennai, Kolkata, Ahmedabad, Jaipur, Lucknow and Guwahati and wanted to submit the RFQ, have raised several issues including those relating to workforce and returns to be given to AAI.

08.11 | 0 komentar | Read More

Roadshow for Coal India stake sale likely from Monday

Oct 20, 2013, 08.08 PM IST

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

Like this story, share it with millions of investors on M3

Roadshow for Coal India stake sale likely from Monday

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

Like this story, share it with millions of investors on M3

Roadshow for Coal India stake sale likely from Monday

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

Share  .  Email  .  Print  .  A+A-

The Department of Disinvestment is likely to embark on eight-day roadshow in London and some cities in the US from tomorrow to woo foreign investors for further 5 percent stake sale in Coal India Ltd.

"The eight-day roadshow in places like London and some of the cities of the US, to attract foreign investors in CIL will begin from Monday," said an official.

However, he added: "This is a non-deal roadshow. The entire purpose of this roadshow is to tell the investors about CIL as a company and the kind of reserves it has."

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

CIL workers' union had in September decided to defer its proposed three-day strike to December 17. Earlier, it was planned from September 23.

The government, which currently holds 90 percent stake in the company, had earlier pared a plan to sell 10 percent stake in CIL to placate employee unions. The proposal now is to divest 5 percent stake through offer for sale (OFS) route.

CIL was listed on bourses in 2010 after the government raised Rs 15,199 crore by selling 10 percent stake in the country's biggest initial public offering.

The company has a cash balance of about about Rs 62,000 crore. The government plans to garner Rs 40,000 crore this fiscal by way of disinvestment, of which CIL's stake sale would be the largest.

On October 18, 2013, Coal India closed at Rs 285.85, up Rs 1.85, or 0.65 percent. The 52-week high of the share was Rs 374.05 and the 52-week low was Rs 238.35.

The company's trailing 12-month (TTM) EPS was at Rs 13.88 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 20.59. The latest book value of the company is Rs 32.48 per share. At current value, the price-to-book value of the company was 8.80.

08.11 | 0 komentar | Read More

Fewer tickets being booked; cash-strapped Railways worried

Trains may be running full, but there is a decline in number of tickets booked in the past six months, causing worry for cash-strapped Railways.

The number of passengers travelling in the non-suburban sector, which include reserved and unreserved class in mail and express trains, during April-September was 1,982.35 million as against 2,058.03 million in the same period last year.

Ticket bookings in the six-month period, according to Railway Ministry data, showed a decrease of 3.68 percent as compared to last year.

Though the passenger fare along with reservation fee and super-fast surcharge were hiked this year, the growth in earnings is not up to the expectation.

The passenger earnings during April-September period were Rs 18,099.83 crore as against Rs 15,582.42 crore during the same period last year, an increase of 16.16 percent only though the projection was more than 20 percent.

Blaming ticket-less journey for the fall in revenue, Railway Board Member (Traffic) Devi Prasad Pandey said, "We have intensified ticket checking exercise at major stations. Steps are being taken to make tickets easily available with opening up of more counters and deployment of more personnel for this."

Besides intensifying ticket checking drive, Railways is also installing ticket vending machines at more stations for short journey.

"Though coaches are running with full capacity, ticket bookings are not matching to it," Pandey said, adding that, "It should not happen because all trains are running full."

Asked whether fare hike and economic slowdown have adversely affected the passenger movement, Pandey said, "Road travel is costlier than train and it is the preferred mode of transport for common people in the country."

As far as economic slowdown is concerned, he said, "It is not the sole reason. People are travelling in trains and there are long queues for buying train tickets always."

Booking in long distance journey has not been affected. The fall in ticket booking has been noticed in short journeys, he said.

Pandey is, however, hopeful of tiding over the situation. "Passenger bookings will improve in the coming months and it has already shown an increasing trend this month due to various measures being undertaken," he said.

08.11 | 0 komentar | Read More

MCX CEO MD Shreekant Javalgekar submits resignation

Oct 19, 2013, 02.33 PM IST

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

Like this story, share it with millions of investors on M3

MCX CEO & MD Shreekant Javalgekar submits resignation

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

Like this story, share it with millions of investors on M3

MCX CEO & MD Shreekant Javalgekar submits resignation

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

Share  .  Email  .  Print  .  A+A-

The Multi Commodity Exchange of India said on Saturday its managing director and chief executive officer, Shreekant Javalgekar, had submitted his resignation from the company, in which Financial Technologies holds a 26 percent stake.

It did not specify a reason for the resignation in a statement.

Financial Technologies also owns National Spot Exchange Ltd (NSEL). The NSEL has been under investigation by police since last month after India's commodities regulator ordered it to suspend trading over suspected violations of rules on contract duration.

The MCX board will meet on Tuesday to discuss the appointment of a new CEO, its spokesman said.

On October 18, 2013, Multi Commodity Exchange of India closed at Rs 510.35, down Rs 2.5, or 0.49 percent. The 52-week high of the share was Rs 1616.00 and the 52-week low was Rs 238.30.

The company's trailing 12-month (TTM) EPS was at Rs 57.65 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 226.82 per share. At current value, the price-to-book value of the company was 2.25.

Action in Multi Commodity Exchange of India

08.12 | 0 komentar | Read More

No wrongdoing by PM in Hindalco coal block allocation: PMO

Breaking its silence, the Prime Minister's Office today rejected any criminality in the controversial allocation of coal block to Hindalco , saying Prime Minister Manmohan Singh had approved it on the basis of "merits" of the case placed before him.

Also read: Hindalco has done no wrong; nothing to worry about: Birla

The PMO, while making it clear that Singh was the 'competent authority' who cleared the proposal mooted by the Coal Ministry in 2005, underlined that the allocation to a joint venture, including Hindalco , was not done at the cost of PSU Neyveli Lignite Corporation .

It released details of the sequence of events leading to Singh's approval on October 1,2005 and said "the Prime Minister is satisfied that the final decision taken in this regard was entirely appropriate and based on the merits of the case placed before him".

While defending the decision, the PMO referred to Singh's statements earlier that the government has nothing to hide and it will fully cooperate with CBI which is probing the case.

The allocation of Talabira coal block in Odisha is in the eye of a storm with CBI booking Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P C Parakh.

Parakh has said if he was accused of conspiracy, then the Prime Minister also should be made an accused as he had approved the revised decision.

The PMO acknowledged that the final decision on the allocation "differed" from the earlier recommendation of the Screening Committee. "This was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal," the PMO said in a statement.

The PMO said CBI is free to investigate the case as it may have got hold of some documents post-allocation.

On October 18, 2013, Hindalco Industries closed at Rs 114.70, up Rs 3.50, or 3.15 percent. The 52-week high of the share was Rs 137.00 and the 52-week low was Rs 83.05.

The company's trailing 12-month (TTM) EPS was at Rs 8.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 13.54. The latest book value of the company is Rs 161.96 per share. At current value, the price-to-book value of the company was 0.71.

08.12 | 0 komentar | Read More

Birla highly respected; be 100% sure prior accusing: Murthy

Oct 18, 2013, 08.58 PM IST

Narayana Murthy, executive chairman, Infosys slammed the Central Bureau of Investigation (CBI) today for leveling charges against Birla. He said, "a detailed, highly diligent and complete set of facts is not likely to move well in the eyes of investors from abroad as well as the Indian businesses.

Like this story, share it with millions of investors on M3

Birla highly respected; be 100% sure prior accusing: Murthy

Narayana Murthy, executive chairman, Infosys slammed the Central Bureau of Investigation (CBI) today for leveling charges against Birla. He said, "a detailed, highly diligent and complete set of facts is not likely to move well in the eyes of investors from abroad as well as the Indian businesses.

Like this story, share it with millions of investors on M3

Birla highly respected; be 100% sure prior accusing: Murthy

Narayana Murthy, executive chairman, Infosys slammed the Central Bureau of Investigation (CBI) today for leveling charges against Birla. He said, "a detailed, highly diligent and complete set of facts is not likely to move well in the eyes of investors from abroad as well as the Indian businesses.

  .   Share  .  Email  .  Print  .  A+A-

As India Inc continues to back Aditya Birla Group-head Kumar Mangalam Birla, yet another doyen of the industry has voiced his displeasure at naming Birla in an FIR in the coal scam.

Also read: Hindalco has done no wrong; nothing to worry about: Birla

Narayana Murthy, executive chairman, Infosys slammed the Central Bureau of Investigation (CBI) today for levelling charges against Birla. He said, "a detailed, highly diligent and complete set of facts is not likely to move well in the eyes of investors from abroad as well as the Indian businesses.

Voicing his concern, Murthy further added, "It is very, very important for the authorities to be 100% certain about their facts and data before making an accusation against such an icon."

The CBI on Wednesday named Birla and former coal secretary PC Parakh in its fourteenth FIR in the coal block allocation scam. The agency has accused Birla of cheating, alleging that he was shown undue favour in a coal block being allotted to Hindalco in 2005.

On October 18, 2013, Infosys closed at Rs 3316.15, up Rs 46.05, or 1.41 percent. The 52-week high of the share was Rs 3360.00 and the 52-week low was Rs 2190.00.

The company's trailing 12-month (TTM) EPS was at Rs 159.27 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 20.82. The latest book value of the company is Rs 627.95 per share. At current value, the price-to-book value of the company was 5.28.

08.11 | 0 komentar | Read More

Balrampur Chini to merge Khalilabad Sugar Mills

Balrampur Chini Mills today said it will merge Khalilabad Sugar Mills, located in Uttar Pradesh with a cane crushing capacity of 2,500 tonnes per day, with itself. The shareholders of Khalilabad Sugar Mills would get one equity shares of Re 1 each in Balrampur Chini Mills for every 20 shares of Rs 10 each held by them.

In a BSE filing, Balrampur Chini Mills Ltd (BCML), said October 30 has been fixed as record date for the purpose of determining the eligibility of the shareholders of Khalilabad Sugar Mills Pvt Ltd (KSMPL).

Also read: UP sugar crisis: Govt mulls linking cane with sugar prices

"The members of KSMPL, whose names will appear in the Register of Members as on October 30, 2013 will be allotted  one equity share of Re 1 each in BCML credited as fully paid  up for every 20 shares of Rs 10 each held by them in KSMPL," the filing added.

The Board for Industrial and Financial Reconstruction (BIFR) had on August 14 sanctioned the modified draft rehabilitation scheme for the merger of Khalilabad Sugar Mills with Balrampur Chini Mills.Balrampur will have to issue and alott 5,26,894 shares.

The company's share price fell by 1.2 per cent to close at Rs 45.15 on BSE. The company has sugar plants in Uttar Pradesh with a sugarcane crushing capacity at 76,500 tonne per day, distillery 320 kilo litre per day and co-generation 126 MW.

On October 18, 2013, Balrampur Chini Mills closed at Rs 45.15, down Rs 0.55, or 1.2 percent. The 52-week high of the share was Rs 71.80 and the 52-week low was Rs 34.60.

The company's trailing 12-month (TTM) EPS was at Rs 6.97 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 6.48. The latest book value of the company is Rs 54.15 per share. At current value, the price-to-book value of the company was 0.83.

08.11 | 0 komentar | Read More

Coalgate: I-T seizes Rs 25cr found at Hindalco office

Income Tax department today seized Rs 25 crore that was recovered by CBI here during searches at the office of Hindalco Industries , which has been booked by the agency for alleged corruption in coal block allocations.

"The cash has been seized under Income Tax laws and further proceedings to check the source of the money are on," an official said.

A Hindalco spokesperson, however, said the company is checking the details.

Also read: 14th Coalgate FIR: Is it a case of criminal conspiracy?

I-T will now ask the company to produce documents and validate the source of the recovered cash, sources said.

The CBI, during its searches conducted yesterday, at the fourth floor office of the UCO Bank building of the firm here at Parliament Street, had found unaccounted Rs 25 crore in cash and incriminating documents.

The agency had then sounded the I-T department.

Soon after registering FIR against former Coal Secretary P C Parakh, Aditya Birla Group Chairman Kumar Mangalam Birla and Hindalco Industries for alleged irregularities in the allocation of Talabira II and III coal block eight years ago, searches were conducted by CBI at six locations.

The searches were carried out in Delhi, Mumbai, Hyderabad and Bhubaneshwar.

CBI has registered the 14th FIR in the coal scam in the alleged "undue favours" shown to Birla by the then Coal Secretary.

Sources said the probe is monitored by Supreme Court and CBI will inform the apex court of all developments that have taken place in its status report to be filed on October 25.

They said they have strong evidence to buttress their claims in connection with the case and the allegations would be probed further during their probe in the case.

CBI sources said they have slapped charges of criminal misconduct on the part of the government official and that stands even if there is no quid pro quo.

The sources claimed that alleged favours shown to Birla in awarding Talabira II and III resulted in notional loss to the exchequer which are enough to book Parakh and Birla for criminal conspiracy.

Parakh and Hindalco have both refuted the allegations and claimed no wrong doing was involved in the decision.

On October 17, 2013, Hindalco Industries closed at Rs 111.20, down Rs 1, or 0.89 percent. The 52-week high of the share was Rs 137.00 and the 52-week low was Rs 83.05.

The company's trailing 12-month (TTM) EPS was at Rs 8.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 13.13. The latest book value of the company is Rs 161.96 per share. At current value, the price-to-book value of the company was 0.69.

08.11 | 0 komentar | Read More

ED finds no violation of FDI guidelines by Walmart

The Enforcement Directorate, which probed the alleged contravention of foreign exchange laws by Walmart in its investments in domestic supermarket chain Bharti Enterprises, has found no violation of FDI guidelines by the US multinational retail giant.

The Enforcement Directorate (ED) has found no contravention of foreign exchange laws as the government has recently amended the Foreign Exchange Management Act (FEMA) and the guidelines regulating FDI in multi-brand retail sector.

"There is no concrete basis for the agency to take forward the probe, unless otherwise there are some new directions from the RBI," sources privy to the probe said today.

Also read: Wal-Mart's India departure, a sign of things to come?

The ED probe was ordered after CPI Rajya Sabha member M P Achuthan wrote to Prime Minister Manmohan Singh alleging that a unit of Walmart in 2010 bought Rs USD 100 million worth of compulsorily convertible debentures in Cedar Support Services Ltd, the holding company through which Bharti controls 'Easyday,' a multi-brand retail chain.

Following this, the Reserve Bank of India (RBI) in November last year asked the ED, a central investigative agency, to probe the allegations.

"The ED has investigated the matter and intimated its findings to the RBI. As far as the FDI component is concerned, investment by Cedar in Bharti Retail is as per provisions of the circular and notification issued recently by the RBI," the sources said. The sources, however, said the RBI may initiate the process of slapping a fine or issuing a warning to Walmart as well as Bharti Enterprises for not converting the USD 100 million worth of debentures into 49 per cent equity in time.

08.11 | 0 komentar | Read More

PFC withdraws RFQ for Surguja UMPP in Chhattisgarh

The government has withdrawn the the tender inviting preliminary bids for the proposed 4,000 MW ultra mega power project at Surguja in Chhattisgarh.

Also Read: Should you invest in PFC tax-free bonds?

"The Request for Qualification (RFQ) for 4,000 MW Chhattisgarh UMPP issued on March 15, 2010 is withdrawn," PFC said in a notice posted on its website.

PFC (Power Finance Corporation) is the nodal agency for UMPPs.

According to sources, the proposal to set up the UMPP in Chhattisgarh has been dropped as the coal blocks for the proposed project fall under dense forest area and will impact the environment adversely.

However, there was no official information about the reason for the withdrawal notice.

The process for invitation of initial bids for the Surguja UMPP has been delayed several times in the past due to lack of environment clearance for the allotted coal mines.

Ministry of Environment and Forests had classified the Hasdeo-Arand coal blocks, allocated to the Surguja plant, as no-go which meant that mining cannot take place in those mines as it may cause damage to the environment.

However, a committee headed by Planning Commission Member, B K Chaturvedi, in its report expressed reservations on the legal sanctity of "no-go".

A Group of Ministers (GOM) constituted for tackling environment issues impacting power projects accepted the suggestions of the Chaturvedi panel.

Meanwhile, PFC has initiated the process of calling preliminary bids for the two proposed UMPPs -- Bedabahal (Odisha) and Cheyyur (Tamil Nadu).

The last date for submission of RFQs (Request for Qualification) for both the projects is November 11, 2013.

On October 15, 2013, Power Finance Corporation closed at Rs 130.85, down Rs 2.85, or 2.13 percent. The 52-week high of the share was Rs 227.00 and the 52-week low was Rs 97.40.

The company's trailing 12-month (TTM) EPS was at Rs 35.20 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 3.72. The latest book value of the company is Rs 182.22 per share. At current value, the price-to-book value of the company was 0.72.

08.11 | 0 komentar | Read More

Jignesh Shah, Massey seek more time to reply to FMC notices

Financial Technologies India Ltd (FTIL), founder Jignesh Shah and two top officials have sought a one-month extension to reply to the regulator's show cause notices questioning their 'fit and proper' status to operate group company MCX .

The Forward Markets Commission (FMC) issued the show cause notices on October 4 to FTIL, Shah, MCX Managing Director and CEO Shreekant Javalgekar and MCX Stock Exchange Managing Director and CEO Joseph Massey and sought replies by October 18.

"FTIL, Shah, Javalgekar and Massey have asked FMC to give four weeks more time to reply to the show cause notices," sources said, without giving any reasons. Calls to FMC Chairman Ramesh Abhishek were not answered.

The notices were issued following the Rs 5,600 crore payment crisis at the National Spot Exchange Ltd (NSEL), which, along with the Multi Commodity Exchange of India Ltd (MCX), is promoted by FTIL.

The NSEL was plunged into a payment crisis after halting trading in commodities from August 1 on a government directive.

FMC guidelines require exchange board directors to satisfy fit and proper criteria such as a general reputation and record of fairness and financial integrity. The regulator has seven conditions for disqualification, including involvement in acts of fraud or dishonesty and conviction by a court for moral turpitude or economic offences.

Earlier this month, the Mumbai police registered an FIR against Shah and others in connection with the NSEL payment crisis and searched their offices, residences and warehouses across the country.

Last week, Mumbai police arrested two persons in connection with the NSEL crisis -- Amit Mukherjee, Assistant Vice-President of the NSEL, and Jay Bahukhundi, a former Assistant VP who was in charge of the department tasked with the verification of borrowing companies and investors at the exchange.

On May 23, 2013, Fintech Communication closed at Rs 1.82, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 5.90 and the 52-week low was Rs 1.60.

The latest book value of the company is Rs 0.39 per share. At current value, the price-to-book value of the company was 4.67.

08.11 | 0 komentar | Read More

Declare Cooper deal conditions not met: Apollo to US court

Oct 15, 2013, 10.35 PM IST

Last week, Apollo's demand for a price reduction in the deal, citing problems related to the US firm's operations in China and concessions to the union, was rejected by Cooper.

Like this story, share it with millions of investors on M3

Declare Cooper deal conditions not met: Apollo to US court

Last week, Apollo's demand for a price reduction in the deal, citing problems related to the US firm's operations in China and concessions to the union, was rejected by Cooper.

Like this story, share it with millions of investors on M3

Declare Cooper deal conditions not met: Apollo to US court

Last week, Apollo's demand for a price reduction in the deal, citing problems related to the US firm's operations in China and concessions to the union, was rejected by Cooper.

Share  .  Email  .  Print  .  A+A-

Apollo Tyres has asked a US court to declare that conditions precedent to closing the USD 2.5 billion merger with Cooper Tire & Rubber Company have not been satisfied .

The Indian company, responding to a complaint filed by Cooper Tire with the Delaware Court of Chancery on October 4, also denied allegations that it sought to delay an agreement with United Steelworkers (USW), which represents Cooper employees at facilities in Ohio and Arkansas.

"Apollo also filed a counterclaim seeking a declaratory judgement that the conditions precedent to the closing of the merger have not been satisfied," the company said in a statement today.

Apollo said it filed its reply and the counterclaim yesterday. The response detailed Cooper's failures to provide information required under the merger agreement due in part to its lack of control over Chinese subsidiary, Cooper Chengshan Tire, as well as Cooper's breach of several representations, warranties and covenants, it added.

The company said that "it has worked diligently to reach a settlement with the United Steelworkers to enable Cooper to overcome the United Steelworkers injunction prohibiting Cooper from consummating the merger."

"Apollo also asserted affirmative defenses, including that conditions precedent to closing had not been satisfied because the marketing period for the financing, central to Cooper's claims in its complaint, had never commenced and that Cooper has failed to meet its contractual obligations under the merger agreement," the statement said.

Last week, Apollo's demand for a price reduction in the deal, citing problems related to the US firm's operations in China and concessions to the union, was rejected by Cooper. In the deal announced in June, Apollo agreed to buy Cooper at USD 35 per share in an all-cash transaction that was to be completed by the end of this year.

According to Cooper, Apollo wanted a price renegotiation "far greater than the USD 2.5 reduction it had earlier proposed, and at one point referencing 'USD 8 or USD 9' per share." Cooper maintains that "the situations with the USW and the joint venture partner and union in China are a direct result of the merger agreement, and are risks Apollo assumed under the merger agreement."

The combined company would be the seventh-largest tyre manufacturer in the world with a presence in high growth end-markets across four continents.

On October 15, 2013, Apollo Tyres closed at Rs 65.05, down Rs 1.4, or 2.11 percent. The 52-week high of the share was Rs 101.50 and the 52-week low was Rs 54.60.

The company's trailing 12-month (TTM) EPS was at Rs 6.56 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 9.92. The latest book value of the company is Rs 46.24 per share. At current value, the price-to-book value of the company was 1.41.

Tags: Apollo Tyres, Cooper, USD, United Steelworkers, Cooper Tire&Rubber Company, China, Cooper Chengshan Tire, Business Partnership, M&A, Delaware Court of Chancery, US court

08.11 | 0 komentar | Read More

Bajaj Auto launches new Discover bike priced at Rs 45,996

Oct 15, 2013, 10.37 PM IST

The new bike will be available in five colours – Flame Red, Brilliant Blue, Midnight Black, Midnight Black and Midnight Black, the company said.

Like this story, share it with millions of investors on M3

Bajaj Auto launches new Discover bike priced at Rs 45,996

The new bike will be available in five colours – Flame Red, Brilliant Blue, Midnight Black, Midnight Black and Midnight Black, the company said.

Like this story, share it with millions of investors on M3

Bajaj Auto launches new Discover bike priced at Rs 45,996

The new bike will be available in five colours – Flame Red, Brilliant Blue, Midnight Black, Midnight Black and Midnight Black, the company said.

Share  .  Email  .  Print  .  A+A-

Pune-based Bajaj Auto today launched a new 100cc motorcycle, the 'Discover 100M' claiming to deliver a fuel economy of 84 km per litre, priced at Rs 45,996 (ex-showroom Delhi).

Also read: Bajaj Auto Q2 PAT seen up 7.3%, revenues may fall: Poll

Commenting on the launch, Bajaj Auto President (Motorcycle Business) K Srinivas said the The new Discover 100M has not compromised on power to achieve high mileage.

"Thanks to our patented twin-spark, 4-Valve engines we are able to power up the Mileage bikes, the Discover 100M gives 9.3 PS power and yet delivers 84 km to the litre," he said.

The new bike will be available in five colours Flame Red, Brilliant Blue, Midnight Black, Midnight Black and Midnight Black, the company said.

On October 15, 2013, Bajaj Auto closed at Rs 2124.15, down Rs 14.05, or 0.66 percent. The 52-week high of the share was Rs 2228.95 and the 52-week low was Rs 1657.50.

The company's trailing 12-month (TTM) EPS was at Rs 105.85 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 20.07. The latest book value of the company is Rs 273.08 per share. At current value, the price-to-book value of the company was 7.78.

08.11 | 0 komentar | Read More

Vodafone tax issues to continue; solution likely post polls

Vodafone's desire to reconcile with the Indian government over it Rs 11000 crore tax dispute seems to have hit a roadblock as the talks are stuck on the issue of transfer pricing, reports CNBC-TV18's Aakansha Sethi.

Also read: Will strongly raise Nokia tax issue with India: Finland

Sources in the Finance Ministry have indicated that a resolution of the Vodafone tax case will now happen only after the elections with the new government because Vodafone is now insisting that the transfer pricing Rs 8,500 crore case be resolved along with the capital gains case.

The Finance Ministry's view, meanwhile, is that is that the Bombay High Court has already dismissed Vodafone's plea on this and has asked them to approach the Income Tax appellate tribunal and the two cases cannot be clubbed together.

While the stalemate on the conciliation continues, the government is not going to initiate tax collection proceedings against Vodafone, even though that would be the legal course of action. This is because it is concerned about foreign investments as well as the widening Current Account Deficit (CAD). So, even though no resolution is in sight and one is likely only after the elections at least Vodafone is not going to have to pay tax at this point in time.

Vodafone is faced with over Rs 11000 crore tax liability along with interest on its 2007 acquistion of Hutchinson Whampoa's stake in Hutchinson Essar.

08.11 | 0 komentar | Read More

Airtel, RCom to start selling iPhone 5c, 5s from Nov 1

Leading telecom operators Bharti Airtel and Reliance Communications will start selling Apple's iPhone 5s and iPhone 5c smartphones from November 1.

Airtel has started pre-bookings for the latest iPhones which saw record sales in the first three days of launch in the US market.

Also read: Sony faces fight to clamber up smartphone ranking tables

"Interested customers can visit select Airtel Retail Store for pre registration," Airtel said in a statement. RCom said it will offer the iPhones "to customers beginning on November 1, 2013."

iPhone 5c would be available at price starting from about Rs 42,000 and iPhone 5s at Rs 54,000, market sources said.

A contract-free and unlocked 16GB version of the iPhone 5c is available for USD 549 (about Rs 34,700) in the US, while an unlocked and contract-free iPhone 5s can be bought for USD 649 (about Rs 41,000).

iPhone 5c will be a choice for consumers evaluating Apple's 16 GB model of iPhone 5 while iPhone 5s can be an option for customers looking for an alternate option to 64 GB model of iPhone 5.

The 16 GB variant of iPhone 5 is available in the country for around Rs 45,000 and 64 GB variant of the smartphone is available for around Rs 59,000.

Apple last week announced that iPhone 5s and iPhone 5c would be available in more than a dozen countries on November 1, including India, without revealing their prices.

Apple has timed the release of latest iPhones in India before Diwali, which is on November 3. Apple products have previously hit the Indian markets in the last fortnight of November or the first fortnight of December.

On October 14, 2013, Bharti Airtel closed at Rs 332.65, down Rs 1.9, or 0.57 percent. The 52-week high of the share was Rs 370.40 and the 52-week low was Rs 256.65.

The company's trailing 12-month (TTM) EPS was at Rs 11.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 29. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company was 2.45.

08.11 | 0 komentar | Read More

Haryana discoms extends Out of Court Settlement Scheme

Haryana Discoms (Dakshin Haryana Bijli Vitran Nigam and Uttar Haryana Bijli Vitran Nigam) have decided to extend the Out of Court Settlement Scheme up to November 30. The scheme was launched to avoid prolonged litigation and to settle long-pending court cases.

The cases can be settled in the Lok Adalat being held regularly at all the district headquarters. The scheme would be applicable for cases pending in courts, District Consumer Disputes Redressal Forum, State Commission and Arbitration as on February 28, 2013, a spokesman of the DHBVN said here today.

However, the cases already settled/decided will not be re-opened and the scheme will not be applicable to the cases which have been decided in favour of Nigam. But the cases disposed off on the jurisdiction ground will be treated as pending cases if the consumer had gone to the civil court, the spokesman said.

Also read: Tata Power to acquire AES Corp's wind farm in Gujarat

He said all such disputes where penalties have been levied can be settled under the scheme provided the consumer pays a reduced amount of 50 per cent of the amount initially assessed, along with interest at the rate of 12 per cent. Disputes on account of levy of development charges are also covered under the scheme.

08.11 | 0 komentar | Read More

Airtel raises ISD rates up to 80 pc, Idea Cellular by 25 pc

Telecom major Bharti Airtel has increased international call rates by up to 80 per cent this month mainly due to the impact of depreciation in rupee.

Another leading operator Idea Cellular has also hiked international call rates by up to 25 per cent, according to the company's website. As per the information available on the websites of two companies, standard call rates to countries like the US, the UK and Canada has been raised to Rs 8 per minute, from Rs 6.40 per minute earlier.

Also read: Apple will reveal new iPads October 22: Report

Maximum hike of 80 per cent has been on Airtel network on calls made for special services in Australia with effect from October 10. The calls which cost Rs 100 for dialling Australia numbers with ISD code 6113 and 6114 have been raised from Rs 100 to Rs 180.

"The strengthening dollar has put tremendous pressure on rate realisation in the ISD segments which Bharti Airtel had been absorbing till now. However, due to the recent steep fluctuations, this cost structure has become unviable resulting in corrections in ISD tariffs," an Airtel spokesperson said.

No immediate comments could be received from Idea Cellular. The websites of both the companies show rise in call rates to most of the countries to Rs 12 a minute from Rs 10 a minute earlier, and Rs 17-20 a minute from Rs 15 a minute earlier. Some of the ISD rates have been hiked to Rs 60 a minute from Rs 50 a minute, and to Rs 120 a minute from Rs 100 earlier.

In case of calls to Germany, Airtel has maintained old rates on certain codes. Idea has changed call rates to certain destinations in Germany by 20 per cent. At some destination in Germany, call rates on Idea Network is around 88 per cent lower compared to that offered by Airtel.

On October 11, 2013, Bharti Airtel closed at Rs 334.55, up Rs 2.05, or 0.62 percent. The 52-week high of the share was Rs 370.40 and the 52-week low was Rs 256.65.

The company's trailing 12-month (TTM) EPS was at Rs 11.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 29.17. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company was 2.47.

08.11 | 0 komentar | Read More

Our mantra is good assets from stressed developers: IDFC

Finance company IDFC , which recently set-up infrastructure fund worth USD 650 million, will be investing in existing operating assets that stressed infrastructure developers will be shedding to correct their overleveraged position.

In an interview with CNBC-TV18's Gopika Gopakumar, Managing Partner & CEO, IDFC Alternatives MK Sinha, said, "The strategy for this fund is little different from the first fund. In the first fund, we did invest in the greenfield construction projects. Now we are staying away from that at least in the initial couple of years."

Recently, IDFC bought 74 percent equity in GMR's road project in Tamil Nadu. Sinha added that the company is looking at similar assets and has identified similar opportunities.

Meanwhile, the company is confident of raising USD 1 billion in December via India Infra Fund.

Also Read: Most roads projects have lost viability, says Gammon Infra

Below is the edited transcript of MK Sinha's interview with CNBC-TV18

Q: What were the challenges that you faced in closing a second infrastructure fund, in the given environment?

A: I wouldn't say it's easy, but there is always an opportunity and right now the opportunity is the massive deleveraging that is happening in the Indian infrastructure market. That is the story that we conveyed. Fortunately we have a first fund, we did have a track record to speak off. Most of our investors in second fund are re-ups from our first fund, so that made it a little easier our track record and our story.

Q: How was the second fund different from the first fund?

A: It is same in the mandate, it is going to continue to invest in core infrastructure, but in the strategy it is going to be different. Right now we are going to be investing in existing operating assets that stressed infrastructure developers are going to be shedding to correct their overleveraged position. So, the strategy is little different from the first fund. In the first fund we did invest in the greenfield construction projects.

We are going to stay away from that at least in the initial couple of years, in the second fund. Potentially things will get ironed out in the next few years and then we will come back to investing in greenfield construction infrastructure. Right now we are going to be buying existing operating assets from stressed developers. So, our mantra is good assets from stressed developers.

Q: Have you already identified these operating assets and it is big news because you are buying into operating assets which could be potentially facing some difficulties at this point in time. So, have you identified any of these assets?

A: We just recently bought 74 percent equity in GMR's road project in south India in the state of Tamil Nadu. There are similar assets that we are looking. There is a huge pipeline of these operating assets across the board. There are opportunities we have got them identified. I cannot be talking about them in public.

Q: How much of the problems infrastructure problems back home is because of financing difficulties and how much is it because of policy paralysis because we keep hearing more about policy paralysis issues. So, considering that now the fund has been launched, do you think that this could solve the infrastructure challenges back home?

A: I do not think financing is a problem. The issue is clarity in consistency in policy. There is policy out there. It is not just very clear or consistent. So, if the Government of India has clarity in consistency in its policy then a lot more money can come into Indian infrastructure.

Fundamentally, Indian infrastructure opportunity is a very robust investment opportunity. A lot of money especially of pension funds from the West are looking to buy into long-term annuity assets and India provides the largest opportunity to invest in such assets going forward.

08.11 | 0 komentar | Read More