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Dalal St loses over Rs 5 trn in 5 days
Reliance Power IPO oversubscribed 47 times |
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Govt tells states to reduce tax on ATF by 4 pc
Oil-price hike: GoM to meet today
Spectrum Allocation
DoT announces roadmap
Inflation at 3.79 pc may hamper rate cut
RIL to invest $1.14 bn in Orissa gas finds
Cobra Beer buys Bihar brewery
HMT to increase tractor production
Corporate Results
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Dalal St loses over Rs 5 trn in 5 days
Mumbai, January 18 Market leader and heavyweight Reliance Industries and other blue-chip stocks, including DAL, NTPC, ICICI Bank Reliance Energy, suffered significant losses on sustained selling pressure. With markets tanking 1,813.75 points in the last five days, companies have lost over Rs 5 trillion in valuation. Continuing weak global cues - triggered by huge sub-prime losses disclosed by Citigroup and Merrill Lynch - and the lowering of domestic economic growth forecast by the Prime Minister’s Economic Advisory Council yesterday seem to have triggered the collapse. The 30-share BSE barometer continued its slide at opening and even went below the 19K level during intra-day. Finally, the index settled the day at 19,013.70, a fall of 687.12 points, or 3.49 per cent, from previous close. Investors’ wealth-measured in terms of cumulative market capitalisation of all the listed firms-has declined by Rs 5,21,310 crore on account of the five-day slide. The National Stock Exchange index Nifty also plunged by 207.90 points, or 3.52 per cent, to close at 5,705.30. “There has been one side selling in the market, mainly driven by the global cues. Once the market falls, a chain reaction of losses is triggered which takes it down further,” said Arjun Kejriwal of Kejriwal Research and Informations Service. — PTI
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Reliance Power IPO oversubscribed 47 times
Mumbai, January 18 The public offer has already set a number of records, including the highest amount to be raised at Rs 11,700 crore and the maximum demand generated. The previous biggest IPO in terms of funds raised was real estate firm DLF that mopped up over Rs 9,000 crore, while the public issue of Adani’s Mundra Port and SEZ Ltd had generated a demand of shares worth more than Rs 200,000 crore. The company is offering equity shares at a price band of Rs 405-450 per share. The issue had opened on January 15 and closes today. The total size of the IPO is 26 crore shares, including promoters’ contribution of 3.2 crore shares. The net issue to the public is 22.8 crore shares. Reliance Power has a diversified portfolio of 13 medium and large-sized power projects under development and strategically located at various places across India.
— PTI |
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Govt tells states to reduce tax on ATF by 4 pc
New Delhi, January 18 At the first-ever National Civil Aviation Conference here, involving state governments, Patel said there is cut-throat competition in this sector and airlines were losing money, mainly because of competition and high taxes”. He said if the taxes, particularly state sales tax, were rationalised, then it would encourage more airlines to fly into a state, leading to creation of aviation as well as tourism infrastructure that would in turn create jobs and income through a multiplier effect. The minister also pointed out that no PSU under his ministry got budgetary support from the Centre. “There is a myth about government support to the ministry. Except for equity in AAI, Air India and some funds for a few airports in the Northeast, these PSUs do not get any financial support.” The conference was also attended by Tourism Minister Ambika Soni, Planning Commission Deputy Chairman Montek Singh Ahluwalia, ministers of several states and officials of Tourism, Finance and Civil Aviation Ministries. States to consider appeal
PTI adds: Some state governments today said they would consider the appeal of the Civil Aviation Ministry to rationalise the state sales tax on jet fuel, which enormously increases the ATF prices burdening the airline industry. Representatives of these state governments said they would consider the appeal made by Patel to rationalise the tax structure. Maintaining that the tax burden on aviation turbine fuel (ATF) ranged from 4 to 34 per cent, Patel specifically mentioned states like Maharashtra, Delhi, Kerala, Tamil Nadu, Andhra Pradesh, West Bengal and Goa for having high rates of taxes on jet fuel. ATF comprises 35-40 per cent of domestic airlines’ total operating costs. While Kerala Minister M Vijayakumar indicated that the state government was considering reduction in sales tax on ATF, his Andhra Pradesh counterpart M V Ramana Rao said discussions in this regard were being held “at the Chief Minister’s level”. Maharashtra Secretary (Special Projects) Sanjay Ubale said he would raise the concerns expressed by the Centre with the state government. |
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Oil-price hike: GoM to meet today
New Delhi, January 18 If that happens Cabinet may be pressed to meet on Monday so that decision is taken before Deora and Oil ministry officials embark on overseas road-shows for auctioning Nelp 8 blocks. The GoM was yesterday inconclusive as two ministers were not present. Officials said Deora was pressing for a marginal increase in fuel prices coupled with rationalisation of import and excise duties to contain the impact high crude oil prices. The GoM yesterday discussed the options of raising petrol price by Rs 4 or Rs 2 a litre and diesel by either Rs 2 or Re 1 per litre together with Rs 50 per 14.5-kg cylinder LPG price increase, but with no raise in PDS Kerosene prices. However, the proposed hike in LPG price may be moderated to Rs 20 per cylinder or possibly even dropped. Officials said the government may go for the minimal price hike of Rs 2 a litre on petrol and Re 1 per litre on diesel and may even drop the idea of raising LPG prices. |
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Spectrum Allocation
New Delhi, January 18 “TRAI has acknowledged that a fully-loaded GSM network has similar spectral efficiency as that of CDMA networks... But in spite of that, TRAI has been recommending double spectrum to them,” Anil Sardana, MD of Tata Teleservices (TTSL) said in a letter to Telecom Secretary. The Department of Telecom (DoT) had, last week, announced a roadmap for allocation of spectrum up to 7.2 Mhz to GSM operators. But TRAI sought a blueprint that would allow distribution of up to 15 Mhz to these operators. TTSL said that TRAI, as an independent regulator, should not have favoured one section of the industry. “TRAI is constituted as an independent regulator and we are pained, distressed to note that TRAI’s concerns on DoT’s implementation of interim spectrum allocation norms are relating to existing GSM operators, who are already holding more spectrum than the contracted amount under their license and who are admittedly not using the spectrum efficiently,” Sardana said. Even in DoT, some officials expressed shock over TRAI Chairman Nripendra Misra’s communiqué to the Telecom Secretary opposing DoT’s move to allot Letters of Intent to new players. According to sources, DoT has not tampered with the TRAI norms and it was the regulator’s recommendation that no cap should be applied on number of operators in each circle, and as far as issuance of LoIs are concerned, they said the licenses were being issued as per the Cabinet decision of 2003 which says the licenses can be issued irrespective of spectrum availability. — PTI
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DoT announces roadmap
New Delhi, January 18 The additional spectrum would be given in multiples of 1 MHz and this would be followed as an interim measure. The announcement is in line with the recommendations of regulator TRAI, which had suggested spectrum allocation till 15 Mhz. Under the new order, which comes into effect immediately, GSM service providers would need to have a subscriber base of 15 lakh in metro areas to become eligible for spectrum of 6.2 MHz and 18 lakh for spectrum of 7.2 MHz. Mobile firms need to have 65 lakh subscribers in these cities with 14.2 Mhz of spectrum before they can be considered for allocation of the last quantum of 0.8 megahertz till the limit of 15 Mhz. The revenue share for spectrum charges, as per orders in this regard, would apply on the AGR for the complete service area.
— PTI |
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Inflation at 3.79 pc may hamper rate cut
New Delhi, January 18 This is on account of higher prices of coking coal and bitumen. The rising rate of inflation fuelled by coal and oil prices has lowered the possibility of RBI slashing interest rate. According to economists the RBI’s monetary policy stance would not be to change interest rates as it could add to the inflationary pressure in the economy. The inflation rate previous year corresponding period was 6.37 per cent. The Prime Minister’s Advisory Council projected inflation to go above 4 per cent, if prices of petrol and diesel are raised. |
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RIL to invest $1.14 bn in Orissa gas finds
New Delhi, January 18 Reliance has submitted an initial development plan (IDP) for six gas discoveries in the NEC-25 block in Orissa, envisaging a production rate of 35-40 million standard cubic meters per day. “We have received the IDP and will be discussing certain issues with Reliance. The development plan in all likelihood will be approved by April,” the official said. Reliance has not detailed a production schedule from the six discoveries where it estimates a total potential of 8.2 Trillion cubic feet, of which 1.1 Tcf is recoverable. The investments projected in IDP would be for drilling 12 developments wells along with production facilities and the onshore receipt terminal, he said. Gas from NEC-25 will flow after Reliance puts its coveted KG-D6 fields off the Andhra coast on production. Reliance is investing $ 5.2 billion in developing Dhirubhai-1 and 3, the first two of the 16 gas discoveries in the 7,645 sq km KG-D6 block. Initial output is likely to be 40 million standard cubic meters per day (mmscmd), which will be raised to 60 mmscmd in 2009-10. Gas production from the block will peak to 80 mmscmd in 2011-12 and remain at that level till 2016-17, after which it will fall to 60 mmscmd in 2017-18 and to 40 mmscmd in 2018-19. The official said Reliance is separately investing $ 2.284 billion to produce up to 40,000 barrels per day of crude oil from KG-D6 from March 2009. — PTI
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Cobra Beer buys Bihar brewery
New Delhi, January 18 The UK-based company has acquired 76 per cent stake in Bihar-based brewery from the Katyal family-owned brewery with Amit Katyal retaining a 24 per cent share, Cobra Beer Founder and Chairman Karan Billimoria said.
— PTI |
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HMT to increase tractor production
Pinjore, January 18 Over the past three years, the company has invested Rs 28 crore for the upgradation of the plant facilities like setting up a state-of-art emission testing laboratory, a new plant for pre-treatment of sheet metal and modernisation of its R& D facility. The company now plans to upgrade its tractor engine design and develop new models. This would be done either through a tie-up with an international tractor manufacturer for technology and design transfer of the engines, or through outsourcing the design to an international player. Prakash Sharan, Executive Director of HMT, Pinjore, said today that the company has developed a new 75 HP engine, which has already been passed by the Automative Research Association of India (ARAI), while a new 50 HP engine is now being designed, which will be launched in the next fiscal. “We will also be installing a new CNC machine at the cost of Rs 10 crore, in production line to improve quality of components. The machinery for the same has already started arriving,” he said. HMT Pinjore has a manufacturing capacity of 12,500 units per annum and is presently using 50 per cent of its capacity. Sharan said that they were now focusing on increasing the production of its 65 HP and 75 HP tractors, as the emerging infrastructure market had created demand for these tractors. “We are now planning to have a new independent assembly line for the 65 HP and 75 HP tractors, with a total capacity of 5,000 units. This new assembly line will become operational by March this year,” he said. Sharan said that they were also working on improving the aesthetics of the tractors, besides strengthening its marketing network in Jharkahnd, Bihar, Orissa, West Bengal, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Gujarat, and introduce a new distribution policy to capture North and Central Indian states.
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Corporate
Results
Bangalore, January 18 NIIT PAT flat
NIIT Technologies has posted an almost flat profit after tax (PAT) at Rs 34.7 crore for the quarter ended December 31, 2007, against Rs 34.6 crore in the same quarter previous year. The consolidated revenues grew by 1 per cent and stood at Rs 233.8 crore during the quarter, against Rs 231.5 crore in the corresponding quarter a year ago, NIIT said in a statement. Nicholas Piramal
Nicholas Piramal India (NPIL) today posted 30.98 per cent rise in its net profit at Rs 72.76 crore for the third quarter ended December 31, 2007, against Rs 55.55 crore in the same quarter of 2006. The total income of the group rose by 13.33 per cent at Rs 736.35 crore for the quarter under review, compared to Rs 649.7 crore in the same period last year, NPIL said in a filing to the BSE. HCC net up
Hindustan Construction Company Ltd (HCC) today posted an increase of 14 per cent in net profit at Rs 25 crore for the quarter ended December 31, compared to Rs 22 crore for the same quarter in 2006. The turnover of the company increased by 39 per cent at Rs 753 crore for the quarter ender December 31, 2007, against Rs 541 crore for the corresponding period during the year-ago period, HCC said in a filing to the BSE. ITC profit up
ITC Limited today posted a 15.79 per cent increase in net profit at Rs 830.72 crore for the quarter ended December ended 31, 2007, compared to Rs 717.40 crore for the same quarter in 2006. The total income of the firm increased to Rs 3,595.39 crore for the quarter under review as against Rs 3,184.49 crore for the corresponding period last year, up 12.90 per cent, the company informed the BSE. HDFC net surges
HDFC has posted an increase of 82.54 per cent in net profit at Rs 648.93 crore for the quarter ended December 31, compared to Rs 355.49 crore for the corresponding period in 2006. The total income of the company rose by 47.81 per cent at Rs 2,154.72 crore for the quarter ended December 31, 2007, the same stood at Rs 1,457.73 crore during the year-ago period, HDFC informed the BSE. PNB Gilts
PNB Gilts has reported more than two fold increase in profit before tax at Rs 27.21 crore for the third quarter, against Rs 13.48 crore in the same period a year ago. While, its total income increased by a 30 per cent from Rs 106.85 crore in the previous year period to Rs 139.87 crore, the company achieved reduction in expenses from Rs 77.34 crore to Rs 70.79 crore, a decline of 8.5 per cent, PNB Gilts said in a release. UTI dividend
UTI Mutual Fund has announced tax free dividend of 8 per cent to its unit holders registered under the dividend option of ‘UTI Dividend Yield Fund’. This was the third dividend of Rs 0.80 per unit on face value of Rs 10, declared by the scheme during the current fiscal. “Pursuant to the payment of dividend, the NAV of the dividend option of the scheme would fall to the extent of payout and statutory levy if any,’’ UTI said. |
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Mumbai, January 18
IT major Wipro today bucked prophecies of a slowdown in the software sector by posted a profit of Rs 854 crore for the quarter ended December last year to record a growth of 11.57 per cent. The company had posted a profit of Rs 756.40 crore during the preceding quarter last year. Its total revenues increased by 33 per cent year on year-to-year basis to Rs 5,303 crore for the quarter ending December 31, 2007.
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