Weekend News (8th Nov. to 14th Nov. 2010) Presented By Baljit Singh
Vodafone beats Street with 27% jump in sales India’s 2nd largest telcom by sales, Vodafone Essar beat street expectations posting a 27.7% jump in sales to sales in the 3 months when compared to the last year. This is an Indicator that things are looking up for the company and the domestic telecoms market after operators’ margins and profits has been brutally reduced in the last fiscal due to the savage price wars. Vodafone Essar also added 6.5 million new users in India taking its customer base to over 115.5 million. India accounted for 54% of the customer additions globally during this quarter.
StanChart PE to use IPO door to part-sell Endurance Stake Standard Chartered Private Equity plans to sell a portion of its 13.7% stake in auto component maker Endurance Technologies in a proposed IPO in January. The auto company aims to raise Rs.1,000 crore through the IPO to expand and retire debt. Endurance Plans to issue 1.31 crore shares or 25% of its equity of face value Rs.4 a piece at Rs.750-800 per share in the IPO, valuing the firm at Rs.4,000 crore. Standard Chartered PE, which invested about 190 crore in the company in two tranches, may get roughly 450 crore in the IPO.
TCL to reenter India with a bang TCL, China’s largest TV maker, may trigger a price war in the flat panel TV market when it reenters India by selling 24-inch high-definition, LCD televisions for Rs.14,500. It is about 20% cheaper than 22-inch flat panel TVs of LG, Samsung and Sony. Japanese firm Panasonic & Indian company Videocon sell 24-inch LCD Televisions for Rs.14,000-17,000. Another Chinese player, Haier has reduced prices of LCD televisions by 15% to Rs.16,500.
Reliance Arm Infotel to raise $1.5 Billion Reliance Industries Telecom arm Infotel Broadband Services is in negotiations to borrow an additional $1.5 billion for expenditure on rollout of operations and buying equipment. The money is likely to be raised at 6-7% or around 200-300 basis points over the London Interbank Offered rate, which is the benchmark lending rate in Europe. RIL said that it would spend $4 billion to launch telecom services. A Sizeable part of this has already been spent in acquiring Infotel Broadband.
CAG pegs revenue loss due to Raja at Rs.1.8 L Crore The country’s chief auditor has formally indicted communications minister A Raja for causing a loss of up to Rs.177,000 crore to the government. It id due to selling airwaves, a scarce national resource, at a fraction of their original value. The Telecom Minister Mr. A Raja had caused Rs.90,000-140,000 crore loss by awarding scarce airwaves to new entrants in 2008 using a faulty & outdated policy. Pan-India licences and airwaves were sold to 9 companies for a mere Rs.1,651 crore each, a price fixed in 2001, when mobile subscriber base was 45 million. Reliance Communications & Tata Teleservices were given dual licences enabling them to offer services on both GSM & CDMA technology platforms for just Rs.1,651 crore.