(8th Nov. to 14th Nov. 2010)
Vodafone beats Street with 27% jump
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
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
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
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
A Sizeable part of this has already been spent in acquiring
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
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.