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Friday, April 26, 2002,
Chandigarh, India  
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Allow IOC to bid for HPCL, BPCL: committee
SEBI to safeguard UTI investors’ interest: Bajpai
CII for 50 basis point cut in bank rate
Allahabad Bank to raise 100 cr |
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Exporters left high & dry
Nirulas may set up hotel in Chandigarh
Asahi India net up 49 pc
Tame wild bulls and bears
i-flex set to enter market
Siemens to cut 6,500 more jobs
Graphic:
PERFORMANCE OF INFRASTRUCTURE
INDUSTRIES
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Allow IOC to bid for HPCL, BPCL: committee New Delhi, April 25 The government had recently barred IOC from bidding for other PSUs like IPCL after it successfully bid for the retailing giant IBP. The committee headed by Mr Mulayam Singh Yadav said the IOC should be allowed to acquire stake in Hindustan Petroleum and Bharat Petroleum or other private players like Reliance Industries should also be debarred from the bidding process. “Alternatively, the (government) should also force similar conditions on Reliance Industries participating in the bidding process of IPCL since if they are successful in obtaining the share of IPCL, they would almost have 100 per cent monopoly in the petrochemicals sector because other PSUs are sick with negligible contribution,” the committee said. Expressing strong reservation on the government view that the IOC participation in bidding process of acquiring stake in BPCL and HPCL would create a situation of monopoly, the committee said “the purpose of disinvestment is to obtain maximum price for the government share. In this process, to ensure a competitive and fair bidding there should not be any restriction for any company.” The committee further commented that “It is surprising that on one hand the government treat IOC as flagship company for refining and marketing and on the other hand they are preventing them from participating in the bidding process of similar type companies under the pretext of preventing monopoly.”
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SEBI to safeguard UTI investors’ interest: Bajpai
New Delhi, April 25 After the SEBI’s board meeting here today, Chairman G.N. Bajpai told reporters: “UTI was discussed. Our job is to take care of the investors’ interest. We will take care of it”. He declined to comment on the outcome of the meeting, saying “I don’t want to give details as the discussion is privy to the members of the board. Whatever is necessary to communicate, we will do it at the appropriate time.” Indications are that the regulator would insist on UTI to make timely repayment to investors. SEBI might also permit UTI to float a new scheme to provide a switchover option to unitholders of the close-ended MIP scheme of 1997 that matures on April 30, as part of efforts to provide some relief to the fund. The country’s largest mutual fund has applied to SEBI for launching a new monthly income scheme exclusively for MIP-1997 investors. MIP-1997 unitholders can also opt for reinvestment option in any other UTI scheme open for sale. UTI’s MIP-1997 had a corpus of over Rs 1,400 crore as on December 31, while its market value was about Rs 980 crore. The scheme is likely to run a shortfall of over Rs 400 crore. UTI was in talks with LIC, SBI and IDBI for bringing in the additional funds. Even if UTI does not get the funds from the financial institutions, it can still draw upon the trust’s Development Reserve Fund Assistance.
PTI
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CII for 50 basis point cut in bank rate
New Delhi, April 25 In a detailed note on the credit policy, the CII also suggested increased freedom to banks to enable them to set the savings and deposit rates, subject to the ceiling prescribed by the RBI. CII said the policy should focus on improving liquidity in the short-term by using the traditional tools of the monetary policy and deepening structural reforms in the financial system. Other measures suggested to increase liquidity and reduce volatility in the markets include formulation of a roadmap to reduce the requirement of maintenance of cash reserve ratio (CRR) from the current level of 5.5 per cent to 3 per cent of net demand and time liabilities.
UNI
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Allahabad Bank to raise 100 cr
Kolkata, April 25 “We have already received in principle clearance from the Ministry of Finance to go ahead with the IPO and will approach SEBI after finalisation of accounts for 2001-02,” Allahabad Bank Chairman and Managing Director B. Samal said. He said the exact timing, pricing and size of the proposed IPO would depend on finalisation of the bank’s year-end account. “The tentative arrangers and merchant bankers to the issue will be SBI Caps and Kotak Mahindra,” Samal said. Likely to be issued at par around September next, the Rs 100 crore IPO would bring down the government holding in Allahabad Bank from 100 per cent to about 70 per cent.
PTI
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Exporters left high & dry Attari (Amritsar), April 25 Amritsar Exporters Chambers of Commerce has asked the Prime Minister, the Railway Minister and the Chairman of Railway Board to help them release their goods. The chamber alleged that since it was a pre-paid cargo to Lahore it was the responsibility of the Railways to offload the material and hand over it to the exporters at Amritsar where these wagons were loaded.
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Nirulas may set up hotel in Chandigarh
Panipat, April 25 He said Nirula’s was exploring cities like Jaipur, Agra Lucknow, Jalandhar and Chandigarh for setting up budget hotels and to expand into Himachal Pradesh, Uttaranchal and Punjab with “family style” restaurants. Mr Grover said that Panipat hotel was the first highway hotel and restaurant of Nirula’s in the region. He claimed that despite entry of foreign companies int his industry, the chain had maintained its growth of around 20 per cent.
PTI
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Asahi India net up 49 pc New Delhi, April 25 The company’s subsidiary FloatGlass India also turned black during the fiscal by posting a net profit of Rs 4.30 crore after incurring losses of Rs 13.24 crore a year ago, an Asahi India statement said. Asahi India’s total sales grew by 4 per cent year-on-year to Rs 233 crore from Rs 224 crore. InfoTech Hyderabad-based InfoTech Enterprises has reported a 67 per cent jump in its net profit at Rs 28.76 crore for the year ended March 31, 2002 as compared to Rs 17.23 crore in the previous year. The board that met today recommended a bonus issue of 1:1 and a 24 per cent dividend for 2001-02, here today. During the fourth quarter ended March 31, the company earned a net profit of Rs 7.82 crore (Rs 4.2 crore) while total income stood at Rs 27.75 crore (Rs 18.27 crore). Income from exports was Rs 26.01 crore (Rs 15.69 crore). Mico Motor Industries Co (MIco), the Indian subsidiary of German auto ancillary giant Robert Bosch GmbH, plans to invest Rs 400 crore to develop advanced common rail engines and has decided not to proceed with a fresh equity buyback programme. The company concluded three share buybacks in the past one year. Pentamedia The net profit of entertainment graphics major Pentamedia Graphics Ltd slumped to Rs 98.74 crore in the financial year 2001-02 from Rs 131.45 crore in the previous fiscal indicating a decline of 35.6 per cent. According to the financial results released here today, the company’s total sales also dropped to Rs 461.88 crore from Rs 633.21 crore in the 2000-01 fiscal. Geometric Software Geometric Software Solutions Company Ltd has reported a 34.42 per cent rise in net profit at Rs 12.8 crore in financial year ended March 2002 compared to Rs 9.53 crore in the previous fiscal.
Agencies |
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Tame wild bulls and bears It is inspiring to observe the new SEBI chief, Mr
G.N. Bajpai, vowing ‘to bring back public participation to the capital market as fast and in as large numbers as possible’, further holding out that ‘protection of stakeholders and shareholders will be another priority’ for him. However, the economic affairs of the government are perhaps being run in a manner that the left hand does not know what the light one does. The Union Finance Minister, Mr Yashwant Sinha, on his side is just killing the goose that laid golden eggs. Through his Budget proposals on the point he has only tried to kill the ‘bher’ (sheep) having failed to tame the ‘bheria’ (wolf) believing that both ‘bher’ and ‘bheria’ belong to the same family. Otherwise it does not need an experts committee to identify the reasons for the average investor and common people having fled from the field. How the corporate crooks and flyby night operators looted and fleeced the small investor in the recent years is only reminiscent of the times from 1828 to 1835, when under the British rule with Lord William Bentinck as the Governor General, ‘thugs’, highwaymen robbers and swindlers masquerading an saintly persons, ‘darvesh’ (path finders) and godmen stalked the length and breadth of this country to loot, maim, kill innocent and unsuspecting citizens, to decamp with their money, valuables and other belongings. But then the great Lord William Bentinck in collaboration with Raja Ram Mohan Roy, a great social reformer of his times handled the situation deftly and ruthlessly to save innocent, law abiding citizens from this scourge. They put an end to this menace of enormous dimensions in a manner that their names went down in history in golden letters. Hasn’t the menace surfaced again though in a refined and sophisticated form. Will the Union Finance Minister and the new SEBI chief combine to subjugate and tame these wild bulls and bears, corporate crooks and fly by night operators to save gullible investors from their gnawing and nibbling teeth and
jaws. S.P. SINGH, Chandigarh |
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i-flex set to enter market During the course of the Indian cricket team’s recent victory over the West Indies at Port of Spain, there was no dearth of commentators and self-professed experts (read as cynics) who kept criticising the Indian captain Saurav Ganguly, and his tactics. Well, he silenced them in style by not only leading his team and pulling off a famous victory, but also showed that unlike many of his contemporaries, he has the fire within him to take on the odds and not only survive, but also thrive. Remember the short shrift he gave Steve Waugh and his Aussie “invincibles” when they toured India last year. Well, there are many Saurav like leaders in the Indian pharma sector, who are ready to roll up their sleeves and flannels and stand up to be counted. Fears that the writing is on the wall for Indian pharmaceutical companies in the post-GATT scenario are beginning to fade away as confident Indian promoters are readying themselves to take MNCs head on by concentrating in their niche areas. However, everyone already knows all about the big success stories of the pharmaceutical majors of today like Dr Reddy’s Labs, Ranbaxy and Cipla. The real test for an investor today, however, lies in identifying tomorrow’s likely success stories. One company, whose prospects we have been quite bullish about is Elder Pharmaceuticals (EPL), a company promoted by the charismatic Jagdish Saxena. His transition from being an Indian Air Force pilot to a very successful entrepreneur is quite remarkable in itself. EPL enjoys the benefit of associations with foreign companies for manufacturing and marketing their original research molecules in India under licence, thus lessening the impact of a possible clash of interest in the post-GATT scenario. Saxena’s principled stand on this issue right through is bound to yield EPL excellent rewards here from. So, what is it that could make EPL tick? In line with its corporate strategy, Elder operates in smaller but highly potent market segments, where it targets market leadership through concept selling and product differentiation. Its diverse presence in the therapeutics segment gives it fair leeway for adjusting to changes in the business environment. Elder’s strong brand equity that translates into popular products and presence in niche areas offer fair scope for margin growth. Since I am scheduled to meet Jagdish Saxena later this week, I will defer the rest of this discussion for later so as to ensure a more updated perspective on this company for you. Another company whose management team I am scheduled to meet is I-Flex. Now, I-Flex is all set to foray into the primary segment of the equity market at a time when IT stocks, by and large, appear down and out for the count. When my better-half casually enquired “What’s your take on this IPO, AK?’, I was certain she already knew something more about this company. Hopefully, I will have more information from both, the company’s management, as well as mine, to pass on to you next week. In the meanwhile, have a laugh watching our cricket experts and fund managers on the idiot box. |
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Siemens to cut 6,500 more jobs Erfurt (Germany): Siemens said today it would shed an additional 6,500 jobs in its fixed-line telecommunications networks business on top of the 10,000 already planned in a move to cut costs by an additional 1.5 billion euros ($ 1.3 billion). Siemens said in a statement released at its half-year earnings news conference here that the job cutting will be implemented during the coming quarters and will generate restructuring charges of some 300 million euros ($ 264 million).
AFP
Sony to screen Ghai’s films Mumbai:
Subhash Ghai’s Mukta Arts has sold its film library to Sony Entertainment Television where several blockbusters from the Ghai stable will be screened from next month. The deal, which was signed by Kunal Dasgupta of Sony and Ghai at the Mukta Arts office in Mumbai yesterday, has been finalised for Rs 16.10 crore for 11 films for five years and is only for satellite telecast in Hindi language. A ‘Subhash Ghai film festival’ will be screened from May 25 on Sony, which will showcase his 11 films — Karz, Hero, Karma, Trimurti, Ram Lakhan, Saudagar, Khalnayak, Pardes, Taal, Rahul and Yaadein.
UNI
Xerox records $ 64 m loss NEW YORK: Xerox Corp. on Wednesday posted a first-quarter net loss versus a year-ago profit and an 11 per cent drop in revenues — unaudited results that are subject to change under an agreement with federal regulators. Three weeks ago, the Securities and Exchange Commission charged Xerox, known for its printers and photocopiers, with using accounting tricks to distort financial results from 1997 through 2000. Xerox, said its net loss was $64 million, or 9 cents a share. For the same period in 2001, Xerox had net income of $202 million, or 25 cents.
Reuters |
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