AI puts up 5 more Dreamliners for leaseback

The national carrier has issued a tender inviting bids for the sale and leaseback of five Boeing 787-8 Dreamliners, which were delivered between August 26 last year and January 28 this year, the bid document said.

Air India will sell and lease back five of its new Dreamliners as part of cost-cutting measures and save substantial sums to pay off the bridge loans it has taken against these aircraft, official sources said.

The national carrier has issued a tender inviting bids for the sale and leaseback of five Boeing 787-8 Dreamliners, which were delivered between August 26 last year and January 28 this year, the bid document said.

Leaseback, short for sale-and-leaseback, is a financial transaction where one sells an asset and leases it back for the long-term. Hence, one continues to use the asset but no longer owns it.

Air India has fixed a reserve purchase price of USD 116 million for an aircraft and bids below this amount would not be considered, the document said, adding that the airline would sell the five planes and immediately lease them back for a period of 12 years with an option to extend the lease.

The national carrier has so far taken delivery of 14 of these aircraft and concluded leaseback arrangement for the first seven of those. It had ordered 27 of these fuel- efficient planes in January 2006 from its US manufacturer.

Airline officials, while leasing the previous lot of seven Dreamliners, had estimated that the company would earn over USD 800 million through that sale.

This time round, the airline is expecting to raise over USD 600 million by way of selling the five aircraft, they said, adding that the amount would be used to pay off the bridge loans taken against these planes apart from other operational requirements.

The officials also said that the Boeing 787s have given positive results on routes on which the airline was incurring cash losses as the fuel burn on these aircraft was 15 percent less than that for Boeing 777s.

Air India last year sold five of its Boeing 777-200 (Long Range) planes to Abu Dhabi-based carrier Etihad for about USD 350 million.

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Aiming 10% market share in India: Nissan's Andy Palmer

Nissan's chief planning officer, Andy Palmer says the company's India business has grown some 140 percent in revenues in the last one year.

Nissan which recently launched its Nissan Sunny in India, is quite optimistic about the Indian market. In an exclusive chat with CNBC-TV18's Menaka Doshi, Nissan's chief planning officer, Andy Palmer says the company's India business has grown some 140 percent in revenues in the last one year and expects to double its market share in FY15 as well.

Watch videos for more.

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SBI flags concern on AP,Telengana farm loan waiver talks

"Stress in our agri portfolio in Q1 will not be so much because of the monsoon deficit as that does not translate into stress so quickly, but definitely on account of the proposed debt waiver (in Andhra and Telengana) yes," SBI Chairperson Arundhati Bhattacharya told reporters

Country's largest lender SBI today raised concerns over the proposed farm loan waivers by Andhra Pradesh and Telengana chief ministers, saying it may mount the already high stress on its agriculture portfolio in the first quarter. "Stress in our agri portfolio in Q1 will not be so much because of the monsoon deficit as that does not translate into stress so quickly, but definitely on account of the proposed debt waiver (in Andhra and Telengana) yes," SBI Chairperson Arundhati Bhattacharya told reporters late this evening after the bank's 59th annual general meeting. She was answering to a question on the impact of the proposed farm loan waivers , running into over Rs 1 lakh crore in Andhra Pradesh and Telengana by their newly-elected chief ministers N Chandrababu Naidu and K Chandrasekhar Rao.

While the agri loan book in Andhra is worth Rs 87,000 crore, the data for Telengana is not immediately available. Bhattacharya said already the issue has created problems in Telengana and Andhra as people have stopped paying the dues. On the overall non-performing loans in the banking sector, she said with the improvement in the macroeconomic environment and an expected revival in growth, should mitigate risks and resolve problems of asset quality. "This stress is lessening and so hopefully going forward the number should start looking better," said Bhattacharya, who for the first time in the history of the over 200-year-old bank had sold Rs 3,500 crore NPAs to asset reconstruction companies (ARCs) last quarter.

She also said the bank may sell around Rs 3,000 crore more of bad loans to ARCs in this quarter. The bank's year to date loan growth is around 13 percent and it is targeting a growth of 15-16 per cent this fiscal. "I continue to stick to it (15-16 percent loan growth in FY15) because even though we are hopping that growth will come back, but for it to translate into credit books of the bank will take time. Maybe, in the last quarter we may see substantial pick up, and if not, definitely in the first quarter of the next year," Bhattacharya said. She said with improvement in macroeconomic condition  and rise in profitability, the bank will try to meet its fund requirement internally rather than from other avenues. However, she said although internal accruals is a good source of getting capital it cannot be the only source. "So,we will have to look at other sources."

Last year, the bank raised had Rs 8,032 crore through qualified institutional placement and Rs 2,000 crore via tier-II bonds. Bhattacharya said the bank is well-capitalised for now and does not require funds currently but will look at when the credit growth picks up. "I have a lot of room in additional tier I, tier II. Regarding the common equity tier I, I can look for rights issue or follow-on or a QIP. So, all of them are on the table. But at this point capital is not of a very primary importance," Bhattacharyya said. SBI's capital adequacy ratio stands at 12.44 percent.

SBI stock price

On July 03, 2014, State Bank of India closed at Rs 2691.95, down Rs 9.15, or 0.34 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 145.88 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.45. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.70.

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Shree Renuka Sugars' open offer fails

As per the BSE filing, both the joint-venture partners were able to acquire only 1750 shares worth Rs 38,307 as the open offer rate was much lower than the market price that hovered around Rs 28-29 per share.

Shree Renuka Sugars' open offer has failed as the company has been able to acquire only 1,750 shares out of over 24 crore shares due to higher share price compared with the offer rate. In February, the company had announced sale of 27.5 percent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore through a preferential allotment of fresh equity, triggering mandatory open offer by both Wilmar and existing promoters.

Also Read: Sugar import duty raised to 40%, relief proposed for mills

In the open offer, Shree Renuka Sugars Group along with Wilmar International proposed to acquire 24.31 crore shares at Rs 21.89 per share, representing 26 per cent stake. The offer started on June 9 and closed on June 20. As per the BSE filing, both the joint-venture partners were able to acquire only 1750 shares worth Rs 38,307 as the open offer rate was much lower than the market price that hovered around Rs 28-29 per share. Post open offer, the combined stake of Shree Renuka Sugars and Wilmar stands at little over 55 percent in the company with both partners having an equal stake.

As per the deal, both Wilmar and the existing promoters will jointly participate in a rights issue to raise up to Rs 725 crore for investment in the company. Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonne per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, speciality fats, biodiesel and fertilisers manufacturing and grains processing.

Shree Renuka stock price

On July 03, 2014, Shree Renuka Sugars closed at Rs 27.15, down Rs 0.6, or 2.16 percent. The 52-week high of the share was Rs 31.80 and the 52-week low was Rs 14.50.

The latest book value of the company is Rs 14.56 per share. At current value, the price-to-book value of the company was 1.86.

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India Inc needs USD 1.52 bn to refinance debt in 2014: RBS

On the outlook for fresh fund-raising by domestic corporates, Manmohan Singh said given the benign interest rate environment in the West, especially in the EU, fund mopping up will take place in the second half of 2014.

Leading British brokerage RBS Wednesday said Indian corporates will have to arrange USD 1.52 billion funds in foreign exchange in the current calendar year to refinance their debt, which will jump to USD 2.3 billion next year and to USD 9.1 billion in 2016.

"The high number of callable/maturing USD bonds in the next five years point to major re-financing opportunities, which we see at USD 1.52 billion this calendar year, USD 2.3 billion next year and USD 9.1 billion in 2016," RBS India and SE Asia Managing Director and head of debt capital markets Manmohan Singh said here.

However, the fresh funds for refinancing will drop to USD 3.5 billion in 2017 but rise to USD 8.87 billion the next year and again fall to USD 7.55 billion in 2019, he said.

On the outlook for fresh fund-raising by domestic corporates, Singh said given the benign interest rate environment in the West, especially in the EU, fund mopping up will take place in the second half of 2014.

He saw significant refinancing transactions from domestic corporates, which will help reduce the overall cost.

"The current negative interest rate regime by ECB will add impetus to issuance volume across the globe," Singh said.

Domestic corporates have raised a little over USD 10 billion in debt in the first six months of the year, representing 6.9 percent of the entire debt of USD 144 billion in Asia, excluding Japan, he said.

The companies that hit the overseas debt market included Bank of Baroda , Bharti , BPCL , Exim Bank, ICICI Bank , IDBI Bank , IRFC and SBI .

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Ashok Leyland raises over Rs 666 cr through QIP issue

The QIP issue of 1,852 lakh equity shares of face value of Re 1 each had opened on June 26. The fund raising committee of the company had fixed the floor price at Rs 34.30 apiece.

Hinduja Group flagship company  Ashok Leyland has raised over Rs 666 crore through allotment of shares at a price of Rs 36 apiece to institutional investors.

The company in a filing to the BSE said that its fund raising committee has "approved the issue price of Rs 36 per equity share (share), which is at a premium of Rs 1.70 per share, to the Floor Price of Rs 34.30 per equity share."

The committee also approved closure of the qualified institutional placement (QIP) on July 2, 2014, the filing said.

The QIP issue of 1,852 lakh equity shares of face value of Re 1 each had opened on June 26. The fund raising committee of the company had fixed the floor price at Rs 34.30 apiece.

Ashok Leyland's board had approved the fund raising on May 10, 2013 and had got shareholders approval on July 16, 2013.

Shares of Ashok Leyland closed at Rs 36.35 apiece at BSE, down 1.09 percent from previous close.

Ashok Leyland stock price

On June 30, 2014, Ashok Leyland closed at Rs 36.50, up Rs 0.35, or 0.97 percent. The 52-week high of the share was Rs 39.00 and the 52-week low was Rs 11.82.

The company's trailing 12-month (TTM) EPS was at Rs 0.11 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 331.82. The latest book value of the company is Rs 16.74 per share. At current value, the price-to-book value of the company is 2.18.

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BSNL issues buy order of Rs 8,678 cr for defence network

BSNL has issued advance purchase order of about Rs 2,110 crore to state-run manufacturing unit ITI, Rs 2,442 crore to Larsen & Toubro, Rs 1,448 crore to Telecommunications Consultants India Ltd, Rs 1,036 crore to Vindhya Telelinks and of about Rs 1,640 crore to Sterlite Technologies.

State-run BSNL has issued advance purchase order of around Rs 8,678 crore to five companies for supplying and deploying optical fibres for the communication network of defence forces.

"We have issued letter of intent to companies for supply, roll out, commission and maintenance of optical fibre network for defence forces. The total order is of about Rs 8,678 crore. The contract has to be completed within 18 months from the date work is awarded to them," BSNL Managing Director AN Rai told PTI.

BSNL has issued advance purchase order of about Rs 2,110 crore to state-run manufacturing unit ITI, Rs 2,442 crore to Larsen & Toubro , Rs 1,448 crore to Telecommunications Consultants India Ltd, Rs 1,036 crore to Vindhya Telelinks and of about Rs 1,640 crore to Sterlite Technologies .

The Cabinet in July 2012 had approved outlay of Rs 13,334 crore for the project, which includes OFC based network for Army, Navy and Tri-services backbone. The government had fixed the deadline for completion of the project by June 2015. The Defence Ministry and the DoT had signed an agreement under which the Defence Ministry had agreed to vacate 25 megahertz (MHz) of 3G spectrum and 20 MHz of 2G in phases. In return, the DoT had committed to set up an exclusive defence band and defence interest zone for the armed forces.

The Defence Ministry vacated 15 MHz of 3G spectrum, which was auctioned in 2010 fetching revenue of about Rs 67,700 crore to the exchequer. Defence also vacated 15 MHz of 2G spectrum, which was allocated to new operators. Under the agreement, the remaining spectrum - 10 MHz spectrum in 3G and 5MHz in 2G - is to be vacated only after the OFC network is completed.

Rai said that he expects work will be awarded to companies in other two months time. The Rs 597-crore tender of OFC network for Navy and Rs 4,211-crore tender for transmission network have come under litigation and the matter is sub judice.

Larsen stock price

On July 01, 2014, Larsen and Toubro closed at Rs 1725.35, up Rs 23.75, or 1.40 percent. The 52-week high of the share was Rs 1774.70 and the 52-week low was Rs 678.10.

The company's trailing 12-month (TTM) EPS was at Rs 61.44 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 28.08. The latest book value of the company is Rs 272.45 per share. At current value, the price-to-book value of the company is 6.33.

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SpiceJet adds new flights on three routes

The airline launched a new daily flight on the Delhi-Hyderabad sector for a limited period, keeping in mind the seasonal demand, a release said here. The introductory fare on this flight starts at Rs 3,999 all inclusive, it said, adding that with this, the airline will operate five daily flights on the sector.

Budget carrier  SpiceJet today added new flights on its Hyderabad-Delhi, Coimbatore-Hyderabad and Bangalore-Delhi sectors with an introductory fare of Rs 2,998-3,999 to cater to seasonal demand.

The airline launched a new daily flight on the Delhi-Hyderabad sector for a limited period, keeping in mind the seasonal demand, a release said here. The introductory fare on this flight starts at Rs 3,999 all inclusive, it said, adding that with this, the airline will operate five daily flights on the sector.

With the launch of a second flight on the Hyderabad-Coimbatore sector, with an all-inclusive introductory fare starting at Rs 2,998, the frequency on the route now stands at five times a week, the release said. This includes two direct flights between Coimbatore and Hyderabad and three flights via Chennai.

SpiceJet is also increasing the frequency between Bangalore and Delhi with an additional flight on every first and third Sunday with effect from July 15, offering up to four flights daily on these days, the release added.

SpiceJet stock price

On June 30, 2014, SpiceJet closed at Rs 19.10, up Rs 0.05, or 0.26 percent. The 52-week high of the share was Rs 30.35 and the 52-week low was Rs 12.50.

The latest book value of the company is Rs -3.50 per share. At current value, the price-to-book value of the company was -5.46.

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Optimistic on Rafale deal with India: French FM

The French foreign minister also called for stronger exchanges in sectors like health, tourism and urban development.

French foreign minister Laurent Fabius who is on a two day visit to India is confident about the outcome of talks to sell 126 Rafale fighter jets to India in a multi-billion-dollar deal that has been stalled for months.

The French foreign minister also called for stronger exchanges in sectors like health, tourism and urban development. Here is a slice of his conversation with CNN-IBN's Amrita Tripathi.

Below are excerpts from the interview:

Q: What is your view on French investments in India?

A: French investments are present in India but unfortunately the two way trade is not high enough. Indian investments in France are not so high. Therefore, we have to take decisions - there is a political will both sides but we have to take decisions in order to develop these exchanges both in the traditional sectors, defence, nuclear but also in new sectors as well such as health, urban development, tourism and so on. That is the reason why we have decided it will be implemented on January 1, 2015 to deliver visa in 48 hours which will be I think the best.

Indian tourists are most welcome in France and French tourist in India as well.

Q: There have been a lot of concerns about the delays when it comes to the Rafale deal. You are going to be talking to the defence and finance minister, what is the French position on that?

A: Rafale is excellent, truly the best. We are close to the final decision. There are still details because it is complex, but I am pretty optimistic.

It is not only a question about selling, it is a question of sharing – sharing technology. You have to have the best technology because of the military defence situation and Rafale is the best one. There are some details to implement, however, I am pretty confident.

It will be very important because it is the basis of real partnership in the field of defence between two independent countries – India which is independent and France which is independent as well.

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JSW Steel to complete Welspun Maxsteel buy in 15 days: Srcs

This deal is subject to lenders' approval and CCI nod may also be required. JSW Steel would acquire full management control post regulatory nods, sources said.

JSW Steel  will complete the acquisition of Welspun Maxsteel in the next 15 days, CNBC-TV18 learns from sources. The deal is being valued at over Rs 1,000 crore.

JSW may ink deal with Welspun Maxsteel by mid-July for its 0.9 mt gas-based steel plant in Maharashtra. Sources add that JSW will also take over the company's debt which stands at about Rs 1,030 crore. But, JSW Steel is yet to finalise payout over and above the debt. 

This deal is subject to lenders' approval and CCI nod may also be required. JSW Steel would acquire full management control post regulatory nods, sources said.

Meanwhile, when contacted by CNBC-TV18, JSW Steel said that it does not offer any comments on market rumours and speculation. However, the company would like to expand both organically and inorganically.

Also Read: Govt should boost mfg for double-digit growth, says JSW Steel

JSW Steel stock price

On June 30, 2014, JSW Steel closed at Rs 1237.65, up Rs 5.40, or 0.44 percent. The 52-week high of the share was Rs 1317.00 and the 52-week low was Rs 451.50.

The company's trailing 12-month (TTM) EPS was at Rs 55.21 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 22.42. The latest book value of the company is Rs 866.72 per share. At current value, the price-to-book value of the company is 1.43.

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