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Weekend News
(8th Nov. to 14th Nov. 2010)
Presented By
Supriya Nayyar
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.
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.
ICICI Bank raises $1 billion via 10-year
Bond sale
 ICICI Bank has raised $1 billion through the issue of 10-year
fixed rate notes to International Investors.
 The Bonds carry a Coupon of 7.5%.
 The offering had an order book of $5 billion with strong
interest from over 325 institutional investors.
 The return on the Bonds translates into a spread of 309.26
basis points over London Interbank Offered Rates for a
similar tenor.
 At $1 billion, the bond offering is ICICI’s largest in over
three years.
 This is also the First 10-year senior bond from the Indian
Banking sector.
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.
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.
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.

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8 nov

  • 1. Weekend News (8th Nov. to 14th Nov. 2010) Presented By Supriya Nayyar
  • 2. 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.
  • 3. 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.
  • 4. ICICI Bank raises $1 billion via 10-year Bond sale  ICICI Bank has raised $1 billion through the issue of 10-year fixed rate notes to International Investors.  The Bonds carry a Coupon of 7.5%.  The offering had an order book of $5 billion with strong interest from over 325 institutional investors.  The return on the Bonds translates into a spread of 309.26 basis points over London Interbank Offered Rates for a similar tenor.  At $1 billion, the bond offering is ICICI’s largest in over three years.  This is also the First 10-year senior bond from the Indian Banking sector.
  • 5. 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.
  • 6. 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.
  • 7. 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.