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Indian Finance Weekly newsletter

  1. 1. STCI Buys 5.34% In Enterprise Data Services ProviderTulip TelecomRs 2,854-cr debt recast for Bharati ShipyardReliance may get nod to invest $1.5 b in satellite fieldsVarun Industries To Sell 51% In Madagascar Oil Block For$150MPulses imports led to Rs 1,201-cr loss to firms.Walt Disney to launch delisting offer for UTV Software onJanuary 16.Sebi bans 7 firms from fund raising for IPO violationGMR Infra Sells 30% In Singapore Arm To Petronas For$38.54MGodrej Properties sells 49% stake in subsidiary to Sun-Apollo for Rs 45 croreBalaji Telefilms to sell education, mobile content biz for Rs8.37 cr 1
  2. 2. Weekly Economic ReviewFood inflation has fallen to its lowest in almost six years. India’s foodprice index rose just 0.24% in the period to 17 December. In the weekbefore, it had gone up 1.81%.India and Japan have struck a currency swap deal that could provide therupee some relief. The agreement was signed during a one-day visit toDelhi by Japanese Yoshihiko Noda. Wednesday’s deal could be worth upto 15 billion dollars and help shore up India’s currency.And finally, while 2011 may have brought cheer in many sectors, it’sbeen a disappointing year for Indian markets. The Sensex closed 0.6%lower on Friday, which was 2011’s last trading session. At the end of atumultuous year, it stood at 15,454.92, down 24.6% for the whole year.It was the first annual decline in the Sensex in three years. But analystsare hoping 2012 will bring a rebound, thanks to lower interest rates andbetter global conditions.Also in deals, Tata Power plans to completely own its renewable energyjoint venture. The company says it will buy out BP Alternative Energy’sentire 51% stake in Tata BP Solar. It’s not known how much the deal isworth. Tata BP Solar makes solar cells and modules. The venture willcontinue to have access to certain technologies from BP until 2013.The Munjal group’s electric vehicles business is about to make a bigacquisition overseas. The company Hero Eco is all set to buy Ultra Motorof the UK. But it’s not known how much the deal is worth. Ultra Motoralso makes electric vehicles. Hero Eco claims the acquisition will make itthe biggest manufacturer of two-wheeler electric vehicles in the world.Ultra Motor is a loss-making company, so Hero Eco plans to investRs450 crore over the next five years to turn the company around. 2
  3. 3. STCI Buys 5.34% In Enterprise Data Services ProviderTulip TelecomBank of India-controlled Securities Trading Corporation of India Ltd(STCI) has acquired minority stake in Tulip Telecom Ltd, an enterprisedata services provider, for an undisclosed sum, according to a companystatement to the Bombay Stock Exchange.Under the deal, STCI hasAcquired 77.5 lakh shares that account for 5.34 per cent stake in TulipTelecom.Rs 2,854-cr debt recast for Bharati ShipyardThe board of Bharati Shipyard Ltd on Monday agreed to restructure Rs2,854 crore of it debt.Earlier the lenders had referred the case to theCorporate Debt Restructuring (CDR) cell.In a notice to the stockexchanges, the company said the board has noted and discussed theproposal for restructuring of term/working capital debt of Rs 2,854crore out of a total debt of Rs 3,250 crore.Bharati Shipayrds debt hadmounted following the takeover of the Mumbai-based offshore servicecompany, Great Offshore, two years ago and the subsequent downturnin the shipping market.The company said it currently, has “order bookvisibility” worth Rs 6,800 crore to be executed by 2014 and is inadvance stages of completion of its two greenfield shipyards at Dabholand Mangalore.Reliance may get nod to invest $1.5 b in satellite fieldsThe Government may on Tuesday approve Reliance Industries $1.529-billion investment plan for developing four satellite fields in the flaggingKG-D6 block. Sources privy to the development said the fields canproduce 10 million metric standard cubic metres a day (mmscmd) by 3
  4. 4. 2016 and will help shore up output from the block, which has seen a 35per cent drop in output in the past 15 months.Varun Industries To Sell 51% In Madagascar Oil Block For$150MDiversified public-listed firm Varun Industries is selling 51 per centstake in its onshore oil block located in Madagascar to China’s Da QingOil Field Company for $150 million (Rs 807 crore), the company hasdisclosed in a statement to the Bombay Stock Exchange today.Pulses imports led to Rs 1,201-cr loss to firmsIn its first major audit of spending on food by the UPAgovernment, the Comptroller and Auditor General (CAG) in areport to Parliament cited Rs 1,201-crore loss in the import ofpulses under two schemes since 2006, both failing to stabiliseprices due to a possible cartelization.Walt Disney to launch delisting offer for UTV Software onJanuary 16US-based Walt Disney will launch an offer for delisting shares of mediaand entertainment firm UTV Software Communications from Indianbourses on January 16 next year. Walt Disney plans to delist about 1.22crore shares, representing 29.96 per cent of UTV Softwares equity, andthe offer price for the shareholders has been fixed between Rs 835.03-1,000 a share.Blackstone Affiliate Invests $153M In DLFs Pune SEZAn affiliate of U.S. private equity giant Blackstone has bought a firm thatowns a special economic zone in India from the countrys top listeddeveloper DLF Ltd and its partner for 8.1 billion rupees. The deal comesat a time when the debt-laden sector is struggling with falling property 4
  5. 5. prices as rising interest rates deter residential buyers and funding forbuilders becomes scarce as economic growth slows in Asias third-largest economy. DLF, which had net debt of more than $4 billion at theend of September, plans to sell up to $566 million worth of assets byMarch next year to cut debt, including its luxury Amanresorts chain in adeal set to raise around $400 million.Sebi bans 7 firms from fund raising for IPO violationIndias market regulator has banned seven companies, which recentlyraised funds in initial public offers, from further accessing thesecurities market and has also banned some merchant banks involvedin these issues after investigations. The seven companies include PGElectroplast, Brooks Laboratories, RDB Rasayans, Taksheel Solutions,Tijaria Polypipes, Onelife Capital Advisors and Bharatiya GlobalInfomedia, the regulator said. Securities and Exchange Board of Indiahas also prohibited directors of these firms from buying, selling ordealing in the securities market till further notice.GMR Infra Sells 30% In Singapore Arm To Petronas For$38.54MGMR Infrastructure Ltd has completed the sale of 30 per cent stake in itsSingapore subsidiary GMR Energy (Singapore) Pte Ltd to MalaysianState-run oil company Petronas Power Sdn Bhd, a subsidiary ofPetronas International Corp Ltd, for SGD 30 million ($38.54 million orRs 209 crore.The deal was announced in September this year but GMRdisclosed the financial details only now. Transfer of the shares toPetronas Power was completed on December 27. Petronas also paidSGD 19 million ($14.64 million), equivalent to the 30 per centshareholder loan contributed by GMR to date. 5
  6. 6. Godrej Properties sells 49% stake in subsidiary to Sun-Apollo for Rs 45 croreMumbai-based developer Godrej Properties has sold 49% shareholdingin its subsidiary, Godrej Premium Builders, which is developing aproject at sector 104 in Gurgaon, to Sun-Apollo India Real Estate Fund.The private equity fund has invested Rs 45 crore out of which Rs 18.3crore has been paid to Godrej Properties for sale of stake and the rest Rs26.7 crore has been invested in the subsidiary company.Balaji Telefilms to sell education, mobile content biz for Rs8.37 crProduction house Balaji Telefilms on Friday said it has signed a pact tosell its media education and mobile content businesses for Rs 8.37crore.It, however, did not disclose the buyer. Balaji Telefilms hasentered into binding business transfer agreements on December 29, tosell media education and mobile content production businesses for aconsolidated consideration of Rs 8.37 crore. 6