The Tribune, Chandigarh, India

	Hind Copper share sale raises Rs 800 cr; LIC, SBI key investors At Rs 155 floor, big discount price saves the day for govt Tribune News Service New Delhi, November 23 The government has decided to retain the entire subscription of Rs 800 crore mopped up from divestment of a 5.58% equity stake in Hindustan Copper Ltd. The Cabinet Committee on Economic Affairs (CCEA) had earlier approved disinvestment of 9.59% paidup equity capital of the state-owned company through offer for sale under the stock exchange mechanism. In the issue, which concluded on Friday, a minimum of 4% of the company’s paidup equity — 3.79 crore shares — was offered for sale with an option to sell an additional 5.59% or 5.17 crore paidup equity shares. The floor price had been fixed by the Empowered Group of Ministers at Rs 155 per share. Bid for a total of 5.16 crore shares were received. It has been decided to accept the entire number of shares bid for at or above the floor price. Thus, approximately 5.58% of the company’s total paidup share capital stands divested through this issue, with the gross receipts from the issue amounting to about Rs 800 crore. With the resumption of the disinvestment process through Hindustan Copper, the government is hopeful that the target can be achieved. Following the subscription of the Hindustan Copper issue, Finance Minister P. Chidambaram said he hoped the government would be able to meet the budget target of raising Rs 30,000 crore from stake sale in public sector undertakings during the current financial year. "This is the resumption of the disinvestment process and we will go forward with the process as approved by the CCEA between now and March," he told reporters. The government has decided to divest minority stakes in Rashtriya Ispat Nigam Ltd, Hindustan Aeronautics Ltd, BHEL and Steel Authority of India Ltd. Besides, sale of stakes in MMTC, National Aluminium Co, Oil India Ltd, NTPC and National Mineral Development Corp (NMDC) are also planned during the current fiscal. STOCK tanks 20% on govt stake sale day, Market cap skids by `5,000 cr Shares of Hindustan Copper dived by 20% to hit its lower circuit limit on a day the government sold its 4% stake at huge discount of 41% over its previous close. The stock opened on a weak note on the Bombay Stock Exchange and then slumped 20% and got stuck at Rs 213.05. In a similar move, on the NSE the share opened weak and then fell 20% to hit its lower circuit limit of Rs 212.95. "Although HCL is the only vertically integrated copper producer in India, the stock is currently trading at an expensive valuation due to low free float (0.41% of its market cap). Even at a floor price of Rs 155... is expensive compared to its peers," Angel Broking said in a research note. — PTI
	Wal-Mart India suspends CFO, others pending bribery probe Mumbai, November 23 The Indian joint venture of Wal-Mart Stores Inc has suspended its chief financial officer and other employees as it investigates alleged violations of US anti-bribery laws, a development that could hamper India's efforts to open its domestic supermarket sector to foreign investment. Wal-Mart, the world's largest retailer, said last week it has opened internal inquiries or investigations into bribery allegations in Brazil, China and India, which follows an earlier probe in Mexico. "The suspension is a routine global practice followed in such investigations," an official at the Indian unit said, declining to be named. "We cannot carry out a fair investigation when the people we are investigating are in office. What we must not forget is they are innocent until proven guilty," the person said. Separately, a spokeswoman for the joint venture confirmed the suspensions and said the venture was "committed to conducting a complete and thorough investigation." Wal-Mart's partner in the venture is Bharti Enterprises. Tax authorities are also investigating claims that Wal-Mart violated foreign exchange rules when it invested $100 million in a domestic unit owned by its wholesale joint venture partner. Opposition parties and allies within the Congress party-led coalition government are opposed to allowing global giants like Wal-Mart into the retail sector, saying to do so would drive small traders, especiall mom and pop stores, out of business. — Reuters
	Ranbaxy recalls generic Lipitor in US, stock falls Mumbai, November 23 Drugmaker Ranbaxy Laboratories Ltd has voluntarily recalled its cholesterol-lowering drug atorvastatin in the United States, a development that could dent its image further in the world's biggest prescription drug market where the company faced an earlier ban. Ranbaxy did not specify the reason for the recall of the drug, which largely drove the company's sales in the first of half the year. Shares of the company fell more than 4 per cent following the announcement. The recall of atorvastatin, a generic version of Pfizer Inc's Lipitor, will temporarily disrupt supplies in the US market while the company conducts an investigation that is expected to take two weeks, it said. Lipitor is considered as the world's best-selling drug ever and at its peak generated $13 billion in one year for Pfizer. Ranbaxy was the first company to launch generic Lipitor in the United States after Pfizer's patent expired last year. The Indian company enjoyed marketing exclusivity for the first six months that generics were allowed to be sold along with US-based Watson Pharmaceuticals Inc. "The development will impact the firm's credibility to an extent," said Bhagwan Singh Chaudhary, a research associate at the brokerage IndiaNivesh. "There’ve been issues in the past (about compliance) and a recall suggests, corrective measures suggested by the US FDA aren’t being implemented." Generic Lipitor generated nearly $600 million in sales for Ranbaxy during its exclusive marketing period, he said. Other drugmakers including Indian rival Dr Reddy's Laboratories have since launched their own generic atorvastatin versions in the United States. Controlled by Japan's Daiichi Sankyo Co, Ranbaxy has had a troubled history in the US. — Reuters
	SEBI to guard investors from stock crashes TNS & Agencies Mumbai, November 23 The Securities & Exchange Board of India will soon announce measures to safeguard investors against sudden crashes in the stock markets, U.K. Sinha, who heads the capital markets regulator, said Friday. Referring to the “flash crash” last month on the National Stock Exchange, he said efforts would be made to avoid such incidents in the future. The crash was triggered when a Mumbai-based brokerage, Emkay Global Financial Services, sent the exchange index tumbling as much as 15.5% in just a few seconds, creating a panic among traders. The crash was the result of erroneous trades worth US $126 million, placed by Emkay Global. "We’re going to take some measures so that there is some precheck in orders, in pricing and there are some other checks also introduced. We are looking at avoiding similar incidents”, Sinha told reporters on the sidelines of a securities market conference here. “We’re going to announce some measures based on experts views. Lapses on part of any intermediaries will be looked at separately and actions will be taken," he added. He assured the regulator is acting on both the fronts – systematic improvement and action for lapses. Commenting on regulator's decision to discontinue mini-derivatives contracts, Sinha said as a measure of experiment, SEBI allowed mini derivatives contracts, but data show that trading in mini contacts constitute only a minuscule and it was felt that there might be certain amount of misuse and misselling happening in those contracts. "Therefore, as a measure to provide safety to small investors we have taken the decision to discontinue mini contracts," Sinha said.
	Bharti Infratel IPO, India’s biggest in 2 years, set for Dec 10 New Delhi/Mumbai, November 23 Bharti Infratel Ltd, the cellular tower arm of Bharti Airtel Ltd, is likely to launch its initial public offering to raise up to $900 million on December 10, sources said, in what will be the country's biggest IPO in two years. The offer to sell a 10% stake in Bharti Infratel could raise $800 million to $900 million, the sources said, valuing the company at as much as $9 billion. The sources, who have direct knowledge of the deal, declined to be named. Bharti Infratel's IPO would be India's biggest since October 2010 when state-run Coal India raised $3.5 billion. Bharti Infratel expects a go-ahead from capital markets regulator SEBI as early as Friday, the sources said, adding the IPO would open for cornerstone investors on Dec 10 and for the public a day later. Bharti Infratel will sell new shares in the IPO, which will be a key test for overseas investors' appetite in a market that has risen nearly 20% so far this year. — Reuters
	Govt considering demand for raising subsidised LPG cap Tribune News Service New Delhi, November 23 The government is considering the demand for raising the annual cap on supply of subsidised LPG cylinders per households. "Representations have been received to revise the annual cap, which are being looked into," Petroleum Minister Veerappa Moily said in a written reply to a question in the Lok Sabha. There have been several demands, including from within the Congress party, to raise the annual cap of six cylinders per household which was announced by the government. Some Congress states had been asked to give another three cylinders on subsidised rates to BPL families. Any requirement beyond this had to be bought at market rates which are more than double the subsidised price of Rs 410.50/cylinder in Delhi. Moily said any requirement beyond the six subsidized cylinders are currently being priced at Rs 895.50 per 14.2-kg cylinder in Delhi. Following the government’s decision, fuel marketing companies are weeding out consumers having multiple connections. “They have generated a list of suspected customers who have multiple connections”, Moily added.
	Domestic politics to drive rupee: HSBC London/Mumbai, November 23 Domestic politics will increasingly drive the fate of the Indian rupee, much like the Japanese yen or the euro, HSBC said in a note on Friday. HSBC said its base case scenario is for the government to maintain its reform agenda, but warned the parliamentary process is "fraught with downside risks." "This debate will be a litmus test for the rupee and the reform process," HSBC said. "If we were to a see a reversal of some of these recent reforms, it would undoubtedly put increasing weakening pressure on the rupee." HSBC expects "strong upward pressure" on the USD/INR, should the reform process falter, but for the pair to retrace its recent gains, should the government gain traction with its policies, HSBC says. — Reuters
	Tata Steel to axe 900 jobs in UK London, November 23 Tata Steel said on Friday it would cut 900 jobs across Britain as part of a restructuring plan aimed at stemming losses in weak European markets. The group said 580 jobs would go at its Port Talbot plant in south Wales as part of proposals to restructure its management and administrative functions. It also plans to close 12 steel finishing and processing sites in England and Wales. "Today's proposals are part of a strategy to transform ourselves into an ‘all-weather' steel producer, capable of succeeding in difficult economic conditions," said Karl Koehler, CEO of Tata Steel's European operations. — Reuters
	Amway plans R&D centre in India Chandigarh, November 23 To offer a unique ‘touch and feel’ experience of its health and beauty products, the Indian arm of Amway, the world’s largest direct selling firm, opened a brand assessment centre in Sector 26 on Friday. Speaking on the occasion, Amway India MD & CEO William S. Pinckney said the company planned to open an R&D centre in India and a team of experts would visit the country to scout for possible locations. This facility will develop India-specific products, especially in health and beauty categories, he added. Pinckney said Amway also planned to invest Rs 550 crore to set up a manufacturing facility in Tamilnadu in the near future. — TNS