The Tribune, Chandigarh, India

	22 cos cancel IPOs this fiscal Sluggish trend in stock markets behind the move Sanjeev Sharma Tribune News Service New Delhi, October 3 The primary market has been hit very severely with the turmoil in the capital markets is impacting IPO markets severely and this has led to as many as 22 companies to call off their IPOs during this fiscal year. According to Jagannadham Thunuguntla, strategist and head of research, SMC Global Securities, these 22 companies had valid SEBI approval in hand for their IPOs but even then could not open their IPOs within the validity period of one year from the date of SEBI approval. Of these 22 companies, the list largely featured real estate companies and power companies. The list of real estate companies that called off IPOs include Lodha Developers, Ambience Real Estate, Kumar Urban Developers, Neptune Developers, BPTP, Raheja Universal. The list of power companies that called off the IPOs include Sterlite Energy, Jindal Power, Avantha Power. Other major companies include Reliance Infratel, Glenmark Generics, Gujarat State Petro Corp. Besides these companies, few companies have announced IPO deferrals even though approval for SEBI validity for their IPOs still remain. For instance, One97 communications, Micromax have announced IPO deferrals owing to the market conditions. Thunuguntla says that this surely will impact the ability of the Indian corporate sector to raise funds to finance their expansion projects resulting in slow down in capacity building and job creation. Further, he says this trend in IPO market will surely set panic in the mind of the Private Equity (PE) funds, as they will be unable to exit from their investments as they generally invest in unlisted companies in the hope of exiting through IPOs. Fund raising impacted The call off will impact the ability of the Indian corporate sector to raise funds to finance its expansion projects, resulting in slow down in capacity building and job creation
	Exports rise 44 per cent in Aug; deficit widens to $14 billion New Delhi, October 3 Exports soared 44.25 per cent to $24.31 billion, while imports grew 41.82 per cent to $38.35 billion in August, leaving a trade deficit of $14.04 billion, official data showed Monday. The cumulative value of exports for April-August jumped 54.21 per cent at $134.5 billion as against $87.21 billion during the like period last year, according to data released by the Ministry of Commerce and Industry. Imports surged 41.82 per cent to $38.35 billion in August, resulting in a monthly trade deficit of $14.04 billion. Total exports in the current fiscal till August went up to $189.39 billion, a rise of 40.37 per cent as against $134.9 billion in the five months of 2010-11. The trade deficit for the April-August period now stands at $47.70 billion. India's foreign trade has recorded robust growth in the recent months, buoyed by increased demand of Indian engineering, chemical and petroleum products in overseas markets. However, Commerce Secretary Rahul Khullar warned recently that exports might slow in the coming months, especially during the second half of the current fiscal, due to uncertainties in the economies of major traditional trading partners like US and European countries. In August, oil imports amounted to $10.27 billion, 48.72 percent increase year-on-year, while non-oil imports rose 39.4 percent at $28.07 billion. Oil imports during April-August were valued at $52.25 billion, 27.09 percent higher year-on-year. Total value of non-oil imports during the five months under review were $137.14 billion, 46.19 percent higher than the level of such imports valued at $93.81 billion during the corresponding period last year. — PTI
	Pakistan likely to grant MFN status to India next month Afzal khan in Islamabad In a dramatic break with the past, Islamabad appears willing to grant the Most Favoured Nation (MFN) status to India in a couple of months, after getting a green signal from all stakeholders. As a first step, the Commerce Ministry has sent a summary to all stakeholders, seeking comments on changing the decades-old trade regime with India, it is reliably learnt. The summary was sent a couple of weeks ago. The stakeholders have been asked to submit comments within three weeks. If no objection is raised, the summary will be sent to the Federal Cabinet for approval. Officials said last week’s successful bilateral trade talks in Mumbai have provided impetus to the move to grant MFN status to India. The gesture by India to drop opposition to Pakistan’s bid for tariff concessions from countries in the European Union (EU) has improved the environment. Both countries decided to double trade volume to $6 billion in three years. Current tensions with the US have also had a sobering effect on Pakistan’s attitude towards India. India had extended MFN status to Pakistan a long time back. However, the latter complains that non-tariff barriers imposed by India nullify any benefit. The latest rounds of talks have addressed this issue with India promising to review the issue. The Prime Minister’s Advisor on Textile Mirza Ikhtiar Baig said he hoped the MFN status would be granted to India next month. Baig, who attended the Mumbai talks, said the formalities were likely to be completed ahead of the next meeting of the commerce secretaries of the two countries in November in New Delhi. Indian Commerce and Industry Minister Anand Sharma is scheduled to visit Pakistan in November along with a delegation of businessmen. “I think the decision is more likely to be announced during the Indian Commerce Minister’s visit,” Baig said. Pakistan’s business community, according to Baig, has already recommended to the government to grant the MFN status to India. This is a key recommendation as Pakistani businessmen have, in the past, not prepared to compete with Indian businesses and wanted a restricted regime. Pakistan will also change its trade regime from ‘positive’ to ‘negative list’ as required under the South Asian Free Trade Agreement (SAFTA). This was the key issue due to which Pakistan had not ratified the treaty, Baig said. The country has included 1,945 items in the positive list for trading with India, while the import of other items is banned. Under SAFTA, Pakistan has committed to a sensitive (negative) list of 1,169 items. Baig said the negative list was likely to be reduced to only a few items and the issue would be settled by November. The advisor said that Indian government had agreed to improve the infrastructure on Wagah border and set up cold storages for perishable items. The border will remain open for business for twelve hours, instead of six hours a day.
	CII’s Destination Punjab from October 7-10 Tribune News Service Chandigarh, October 3 The Confederation of Indian Industry (CII) will organise an investment Mega Exposition— Destination Punjab — in Amritsar from October 7-10. The event expects to attract investment and encourage the state’s entrepreneurs. The event will be held in association with the State government. It will focus on farm equipment, implements and machinery; engineering goods; auto and machine tools, leather and sports goods and tourism and hospitality sectors. Apart from providing momentum to the industrial success of Punjab, the event will also highlight the extensive business-2-business (B2B) interactive and participative session and knowledge events. Kamna Raj Aggarwala, Chairperson, CII Punjab State Council and Destination Punjab said Punjab had huge potential for growth, but needed to be properly branded. “The need of the hour is aggressive planning and Destination Punjab can be considered as a proactive step towards branding Punjab to fetch more investments into the state,” she said. On the huge potential with Punjab to manufacture spare parts for helicopters, airplanes and other defence equipment to the Indian Armed Forces, Air Commodore Suresh Singh, Commander, 3BRD Air Force Station, said the government was keen to localise assemblies and sub assemblies of all equipment being imported presently. He said it was mandatory for oversees manufacturers to assemble components worth 30 per cent of the total order value for which they could enter into joint ventures.
	Pantaloon Retail to dilute 15% equity to raise Rs 1,500 crore Mumbai, October 3 Future Group firm Pantaloon Retail India Ltd (PRIL) today said it planned to raise up to Rs 1,500 crore by issuing equity-linked securities amounting to stake dilution of not more than 15 per cent. In a filing to the BSE, PRIL said its Board of Directors which met today approved the raising of additional long-term funds. The securities could be either convertible instruments, convertible into shares, debt instruments with attached warrants giving right to the holder of such warrants to subscribe for Equity/Class B Shares, issue of Equity/Class B shares, it added. The issue of such securities would be for an amount not exceeding Rs 1,500 crore, it said, adding the proposal was subject to shareholders approval. “The Board further directed the company, it should ensure that overall dilution of equity through aforesaid is within 15 per cent and the debt equity ratio is not to exceed 1.33,” the filing said.According to the BSE record, the company’s promoters had 44.92 per cent stake in the firm in June 2011. The filing further said its 24th Annual General Meeting will be held on the November 10, 2011 instead of Oct 22, as earlier informed.
	Draft policy on electronics aims at $400 billion sales by 2020 New Delhi, October 3 The government today unveiled the draft National Policy on Electronics, 2011, which aims at $400 billion turnover in 2020 by the domestic industry and focuses on reducing imports. Announcing the draft policy, Telecom Minister Kapil Sibal said at the current rate of growth, the domestic production could cater to a demand of $100 billion in 2020 as against demand of $400 billion and the rest would have to be met by imports. “There is a demand supply gap of nearly $300 billion by 2020. Unless the situation is corrected, it is likely that by 2020 the electronics import may far exceed oil imports," Sibal added. One of the objectives is to achieve a turnover of about $400 billion by 2020 involving investment of about $100 billion and employment to around 28 million by 2020. “The National Policy of Electronics-2011 envisions creating a globally competitive electronics systems design and manufacturing (ESDM) industry, including nano-electronics, to meet the country's needs and serve the international market,” Sibal said. This is a quantum jump from production level of about $20 billion in 2009. This interalia, includes achieving a turnover of $55 billion of chip design and embedded software industry, and $80 billion of exports. “The final policy on electronics is expected by December. We expect to receive comments on the draft by November,” the minister said. The National Policy on Electronics is aimed at making India the hub of electronic manufacturing. The policy proposes setting up of over 200 electronic manufacturing clusters. — PTI what the POLICY entails The policy proposes an investment of about $100 billion and providing employment to around 28 million persons by 2020. It also proposes setting up of over 200 electronic manufacturing clusters to reduce imports
	FDI jumps two-fold to $2.83 bn in August New Delhi, October 3 India received Foreign Direct Investment (FDI) worth $2.83 billion in August, an over two-fold jump from the corrosponding period last year, an official said today. In August 2010, the country had attracted FDI worth $1.33 billion. Foreign inflows, in July, had declined after a significant jump for two consecutive months in May and June. In June, the inflows saw an annualised increase of 310 per cent to 11-year record of $5.65 billion, while in May, the inflows touched $4.66 billion showing an impressive 111 per cent growth over the same month last year. In July, however, it declined by 38 per cent. For the April-August period, FDI went up by 95 per cent to $17.37 billion from $8.89 billion in the year-ago period as inflows were robust in the initial months, the official said. Despite uncertainties in the global economy, FDI may touch $35 billion in 2011-12, compared with $19.4 billion in the last fiscal on account of major deals like RIL-BP and Posco, the official added. In the previous fiscal, equity inflows through the FDI route dipped 25 per cent to $19.43 billion from $25.6 billion in 2009-10. In 2008-09, FDI stood at $27.3 billion. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major sources of FDI for India. During the period, the sectors that attracted the maximum FDI include services, construction activities, power, computers and hardware, telecommunications. — PTI
	Report on BlackBerry solution by month-end Tribune News Service New Delhi, October 3 A team from the Department of Telecommunications (DoT) is evaluating the latest interception solution provided by Research In Motion (RIM), the makers of BlackBerry smartphone. The final report on its acceptability is expected by the month end. The Canadian firm recently came up with a solution for real-time interception of its Blackberry Enterprise Services (BES) after seeking several extensions of deadlines for nearly a year. RIM has apparently offered lawful interception in its security architecture through Cloud Computing system from Indian operators. It is an Internet-based service, whereby shared servers provide software and data to computers and other devices on demand. RIM infrastructure is ready to receive and process through the cloud computing-based system, lawfully intercepted BlackBerry Messenger data from Indian service providers, the Canada-based firm had earlier said.
	GSK eyes acquisitions worth $2 bn in India London, October 3 Global pharma giant GlaxoSmithKline is eyeing acquisitions worth $2 billion in India, the world’s fastest-growing drug market, media reports said. “India is clearly on the radar. We plan to spend between $500 million and $2 billion. I would love to buy something in India,” GSK Chief Executive Andrew Witty has said GSK, which employs 5,000 people and has turnover of more than $1 billion in India, was, however, unlikely to pursue large-scale merger and acquisitions, and was unwilling to overpay for companies, a report said. “We already have an enviable brand in India so there is no need for us to pay a strategic premium,” he said. — PTI
	Govt mulls 100% FDI in single-brand retail New Delhi, October 3 The government is considering allowing 100 per cent Foreign Direct Investment (FDI) in single-brand retail, a senior official said today. “The matter is under consideration,” the Department of Industrial Policy and Promotion (DIPP) Secretary R P Singh told PTI when asked if 100 per cent FDI was being considered for single-brand retail in India. When asked whether the ministry would bring any discussion paper on the matter, he said: "It is a small issue and there will be no discussion paper on it." However, the Cabinet will take the final decision on it, he added. At present, India allows 51 per cent FDI in single-brand retail and 100 per cent in cash and carry format of the business. — PTI