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RCoVL debuts at Rs 290, propels Sensex to new high
DoT questions Tatas about Idea
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India becomes London’s second largest foreign investor
Maruti may end Zen production
Arcelor to take 50 per cent stake in Moroccon firm
Corporate News
ICICI Bank hikes auto loan rates
BPCL loses Rs 4,000 cr on selling fuel below cost
Media Video signs MoU for Rs 220-cr township project
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RCoVL debuts at Rs 290, propels
Mumbai, March 6 RCoVL Managing Director Anil Ambani, who announced the listing by ringing the opening bell, later told stockbrokers at the Reliance Infocomm headquarters that the company would hike FDI. “A mechanism would be in place after two to three weeks of listing,” Mr Ambani said. RCoVL has already sought approval of the shareholders to increase the FDI up to 74 per cent by the month end. The company presently has foreign holding of 32 per cent just behind promoters stake of 37 per cent. In his presentation, Mr Ambani, while comparing the telecom operations of his group with Bharti and Tatas, said the performance of RCoVL was better than the competitors. Recalling his family history, Mr Ambani said: “My mother had been the force behind the success of my father, some even said hidden force. Now she is the force behind the success of myself and my elder brother Mukesh in creating two independent Reliance groups. We will gain strength to strength and create world-class assets for prosperity of our shareholders.” Anil Dhirubhai Ambani Group’s market capitalisation increased to Rs 86,000 crore following the listing of RCoVL. “The market capitalisation of ADAG has jumped to Rs 86,000 crore following the listing of RcoVL today,” Mr Ambani said. The networth of the ADAG stands at Rs 25,000 crore making it the third largest on this parameter. The operating profit of the group stands at Rs 5,000 crore. Mr Ambani said the group would invest Rs 5,000 crore a year over the next three years on telecom business, including broadband and wireless. The equity of RCoVL is Rs 612 crore and will consist of 122 crore shares of Rs 5 each. Meanwhile, the Sensex today breached the 10,700 mark on the back of across-the-board buying by FIIs. Among other things, the enthusiastic response to the listing of Reliance Communication Ventures Limited (RCoVL) buoyed the sentiments. After opening well today, the Sensex ruled high for most of the day to gain 139 points to close at 10,735. In the broader markets, the Nifty closed at 3,188. Among the major gainers included scrips in the metals, automobile, cement, engineering, technology and infrastructure stocks. |
Investors dump other telecom shares Shares of telecommunication companies showed mixed trends today as investors reshuffled their portfolios following the listing of Reliance Communication Ventures Ltd (RCoVL), the holding company of Anil Ambani’s telecom businesses, on the bourses. “Many, both retail and institutional investors, have sold other telecom stocks from their portfolios and bought RCoVL. Bharti Televentures has witnessed heavy sell out today,” Mr Suresh Paramar, a dealer with Mumbai-based Darashaw Broking and Investment Banking said. While the biggest loser in the basket of telecom shares was Bharti Televentures that slid 1.27 per cent or Rs 5.20 to close at Rs 403.25, MTNL went down by 0.40 per cent at Rs 149 on the day. However, Tata Teleservices grew stronger by 4.38 per cent to close the day at Rs 26.20. VSNL made marginal gains moving up by 0.43 per cent at Rs 382. |
DoT questions Tatas about Idea
New Delhi, March 6 Besides Idea, the Department of Telecom has asked Tatas to give the details of shareholding in Tata Industries, which holds stake in the joint venture, and other telecom entities — Tata Teleservices
(TTSL) and Tata Teleservices Maharashtra (TTML). Tatas are expected to file their reply by tomorrow. DoT has sought details of the shareholdings on six different dates since January 2004, sources in the know said. DoT has also sought information from the Tatas on cross-holding of various group companies, they said. The query follows allegation by Birlas that Tatas had not complied with the licence conditions and hence, be asked to exit from Idea, where they hold over 48 per cent equity, expeditiously. Earlier, tearing down the arguments of Tatas that as a group they were not promoters of telecom joint venture Idea and hence not obliged to exit, Birlas today urged the government to act fast on its plea, saying non-compliance by Tatas was “grave, wide-ranging and comprehensive.”
— PTI |
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India becomes London’s second
New Delhi, March 6 Think London, the foreign direct investment agency for London, today announced that the number of Indian companies it had assisted in setting up business in London had doubled in the past year. Indian companies now represent 30 per cent of all foreign investment in London, making it the capital’s second biggest overseas investor after the USA, which accounts for 50 per cent, it claimed. During the past year alone, 22 Indian companies have set up their operations in London. Three quarters of the investing businesses are in the telecom, pharmaceutical and IT sectors, led by software and computer companies from Bangalore and Mumbai. “While much attention has been given to UK companies outsourcing jobs to India, the fact is that successful Indian businesses - notably in the technology sector - are expanding rapidly in the global market and bringing new jobs to London,” said Mr Michael Charlton, Think London’s Chief Executive. Among the biggest new Indian investors in London last year was Bangalore-based Microland, said Mr Charlton, adding that other companies included D’zine Interactive and the Export-Import Bank of India (Exim Bank). Mr Anupam Jhunjhunwala, Senior Business Development Manager at Think London, said: “Indian-owned businesses already in London include 140 Indian multi-nationals and generate a combined turnover of approximately £8.5 billion, representing 5 per cent of London’s total economy. Between 1997 and 2004, there were 119 Indian foreign direct investment projects in Europe, of which almost half - 55 - went to London.” |
Maruti may end Zen production
New Delhi, March 6 Sources, however, said the “Zen” brand would continue. The model, once among the top-selling brands of the country’s largest carmaker, has witnessed dwindling sales since the introduction of Swift and the rising popularity of WagonR and Alto models. Industry watchers believe that the company may come out with an all-new model under the same brand in the coming months.
Tata-Fiat network
Tata Motors and Fiat India Private Limited today announced the commencement of a Tata-Fiat dealer network to sell both Tata and Fiat cars under one roof, along with service and sales of spare parts, in 11 cities across India. The Tata-Fiat dealer network comprises 25 existing Tata Motors passenger vehicles dealers and three existing Fiat India dealers. These 28 Tata-Fiat dealers will sell Fiat Palio (1.2 EL PS, 1.2 ELX, 1.6 Sports) and Fiat Adventure (1.6 Sports), besides Tata Indica, Tata Indigo, Tata Indigo Marina, Tata Sumo and Tata Safari. These 28 Tata-Fiat dealers, who together have 44 outlets, are located in 11 cities - Mumbai, Pune, Ahmedabad, NCR Delhi, Chandigarh, Ludhiana, Bangalore, Chennai, Hyderabad, Kochi and Kolkata. Mr Rajiv Dube, Senior Vice-President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata Motors, said: “ Between the Tata and Fiat brands, the company is in a position to offer one of the widest product offerings in the Indian market with the promise of several exciting options to come.” The Fiat Palio range will now be available at a new attractive price of Rs 3.8 lakhs onwards (all prices ex-showroom Delhi). The 1.6 litre Adventure Sports is now available at a new uniform price across the country at Rs 5.65 lakh. Discussions are on to explore other areas of
co-operation. |
Arcelor to take 50 per cent stake in Moroccon firm
Brussels, March 6 Arcelor and Morocco’s state-owned Societe Nationale d’Investissement would join an all-cash capital increase for a holding company that would take 64.86 per cent of Sonasid, the company said. The holding company will then launch a takeover bid for the rest of the shares, offering 1,350 Moroccan dirhams ($148) in a deal valuing Sonasid at Euro 480 million ($577 million.) Arcelor, currently fending off a surprise Euro 18.6 billion ($22.13 billion) bid from rival Mittal Steel Co., is trying to convince shareholders that it would offer better value if it remained independent. Meanwhile, a report from London said Lakshmi Mittal is considering relinquishing his controlling stake — a move that could lower the barriers to shareholders accepting his $22.1 billion hostile offer for Luxembourg-based Arcelor, a media report said today. Lakshmi Mittal and family who own 88 per cent of the shares in Mittal Steel, is considering letting his stake fall to less than 50 per cent to address concerns of Arcelor shareholders, The Financial Times said. Under one option being studied by the Indian billionaire’s advisers, the company could drop its insistence that the Mittal family have twice as many votes as ordinary shareholders in a new combined Mittal/Arcelor, it said. Some Arcelor shareholders had reservations about the size of the overall stake and the preferential voting rights for his family, an advisor was quoted as saying in the paper. The decision to reduce his stake and scrap the special voting rights might also encourage the Arcelor Board, hostile to the bid so far, to agree to open talks, it said.
— AP, PTI |
Vietnam plans unit with Essar Steel
Hanoi, March 6 If approved, the mill would be Vietnam’s first to produce hot-rolled steel and have a designed capacity of 2 million tonnes per year, the Dau Tu (Investment) newspaper quoted officials of the Vietnamese firm as saying. They said the mill would be built in the southern province of Ba Ria-Vung Tau and its construction would take around two years. $170 m US order
Mumbai-based Uttam Galva Steels (UGSL), the country’s galvanised steel manufacturer, has bagged a $ 170 million order from world major Stemcor to supply cold-rolled, galvanised and color coated steel, company sources said. While the deal is for supply of steel over three years, Uttam Galva Steels will fix the price of its products every quarter, thereby ensuring factoring of market dynamics through the tenure of the agreement.
Valuemart
Valuemart Info Technologies Limited (Valuemart), a Bangalore-based software development and BPO company, has hiked its stake in Tejas Infoscripts Private Limited, a city-based BPO, to 100 per cent. Valuemart, which had acquired a 74 per cent stake in Tejas in 2005, has bought out the balance 26 per cent from its promoters.
New venture
Hotmail founder Sabeer Bhatia has floated a new venture Blogeverywhere.com, that enhances the speed and functionality of e-mail browsing and allows users to post their comments on any website in the world. “In the past 10 years, there has been no significant development of technology in Hotmail.
— Agencies |
ICICI Bank hikes auto loan rates
Mumbai, March 6 However, there was no change in the home loan rates, he said, adding that the discount the bank had been offering on certain categories of home loans had been withdrawn. The bank had also hiked the deposit rates by 50 basis points with effect from February 7. It had hiked the home loan rates by 50 basis points, effective from February 13. However, for the existing floating rate customers, the hike would be applicable from the next financial year, it
said. — PTI |
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BPCL loses Rs 4,000 cr on selling fuel below cost
New Delhi, March 6 Mr Sinha said the company was also losing Rs 171 on an LPG cylinder and about Rs 12 per litre on kerosene. Mr Sinha said the company expected at least one-fourth of the Rs 11,500 crore bonds that the government would issue to oil retailers for compensating them for losses suffered on the sale of LPG and kerosene below cost.
— PTI |
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Media Video signs MoU for
Mumbai, March 6 |
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