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Front Page News - Nov 25, 2014

Corporate Snippet
 
Ø  Jindal Steel and Power Ltd has shelved a $10 billion coal-to-diesel project, its chairman told Reuters, becoming the first big casualty of a Supreme Court (SC) decision to scrap coalfields allocated to private firms since 1993.( BS )
 
Ø  Amtek Auto said it will acquire two Europe-based and one South East Asia-based auto as well as non-auto component makers through its Singapore-based wholly owned subsidiary.The company did not disclose financial details of the proposed acquisitions.( ET )
 
Ø  Bharti Airtel has sold its 4,800 telecom towers in Nigeria to American Tower Corp for $1.05 billion, as the world's fourth largest carrier attempts to lower its debt in a bid to turn around its loss-making operations in the continent.Airtel though will be the anchor tenant on the portfolio under a lease with a 10-year initial term, the two companies said in a joint statement.( ET )
 
Ø  The board of Oil and Natural Gas Corporation(ONGC) has given its nod to Cairn India’s gas development plan for Rajasthan fields.This ends the speculations that the two partners of Rajasthan block were not on the same page regarding gas production as well as equity structure in the joint venture.( BL )
 
Ø  Bharti Airtel's data packages offering access to Facebook and WhatsApp for fixed but nominal amounts are being examined by the telecom regulator to determine whether they amount to “preferential access“ for such services, an issue at the heart of the debate on net neutrality, a concept recently backed by US President Barack Obama.( ET )
 
Ø  Telangana and Andhra Pradesh are set to place orders worth Rs. 12,000 crore with Central public sector enterprise, Bharat Heavy Electricals Limited(BHEL), which already has five orders worth Rs. 12,337 crore so far this year.( BL )
 
Ø  Reliance Communications,plans to raise funds by issuing US dollar-denominated debt instruments to refinance $255 million of overseas loans. The proceeds will be used to repay existing foreign currency debt to avail of longer maturity redemption period.( ET )
 
Ø  CEAT Ltd has been allowed by the Reserve Bank to raise foreign investment, allowing overseas investors to buy up to 45 % of the paid up capital in the company.( ET )
 
Ø  Dr Reddy’s Laboratories Ltd has launched Docetaxel injection, a therapeutic equivalent of Taxotere, in the US market.It is indicated for the treatment of certain types of cancers. The brand and generic had sales of $218 million in the US for the most recent 12 months ending in September 2014.( BL )
 
Ø  Tata Consultancy Services (TCS), India's largest IT services firm, is setting up offshore development centres in India for Japanese clients in a bid to boost the company's margins in that market.( ET )
 
Ø  IDBI plans to sell its 5% stake in National Stock Exchange (NSE), and has sought the finance ministry's permission to go ahead with the sale.IDBI is the second state-run financial institution after Industrial Finance Corporation of India (IFCI), which is already in the process of divesting its 2.5% stake in the exchange, looking to monetize its holding.( ET )
 
Ø  In an attempt to dollarise its balance sheet, steel major Essar Steel has raised $1 billion through long term export securitisation to pre-pay existing rupee debt.The company had earlier raised $1 billion through external commercial borrowings (ECB) route. With this financing, the company has dollarised $2 billion of its debt which has led to significant benefits.( BS )
 
Ø  Ashok Leyland said it has sold 32 % stake in its subsidiary firm Hinduja Tech Ltd (HTL) to a strategic investor.The company did not disclose the amount for which the stake has been sold.( BL )
 
Ø  The QIP committee of Ceat on Monday fixed the floor price for an institutional placement of shares at Rs.930.53 apiece. The issue opened for subscription on Monday.The company may offer a discount of not more than 5 % on the floor price.( BL )
 
Ø  Overseas investors could get a free run in the construction and development sector with the government considering removal of the three-year lock-in for the overseas investments. The housing ministry's latest proposal is now being examined by stakeholder ministries, including the Department of Industrial Policy and Promotion (DIPP).( ET )
 
Ø  Godrej Properties plans to double the share of its business from the Gulf region. As of now, 15% (250,000 sq ft) of the company's sales are accounted for by the Gulf region.International sales contribute about a quarter to Godrej Properties' overall sales.( BS )
 
Ø  Moody’s Investors Service, a global rating agency, has assigned a (P) Ba3 corporate family rating forLodha Developers Pvt Ltd (LDPL).This international rating agency has also assigned a provisional (P) Ba3 rating to the proposed US dollar denominated Notes to be issued by Lodha Developers International (Mauritius) Ltd, a wholly owned subsidiary of LDPL.( BL )
 
Ø  Global drug majors Mylan and Abbott’s proposed deal in the pharmaceutical products segment has received the green signal from the Competition Commission of India (CCI).( BL )
 
Ø  Ratan Tata-backed online jeweller Bluestone.comsaid that the company is expecting its revenue to go up to Rs 100 crore this year, from Rs 25 crore last year. The company is also contemplating setting up of offline stores to improve its brand value.( BS )
 
Ø  Telecom Regulatory Authority of India (Trai),stuck to its original recommendations on pricing of spectrum and simultaneous auction of 800, 900, 1800 and 2100MHz bands, rejecting Telecom Commission's view that it should consider most of its suggestions that the regulator has given on the next round of auction.( BS )
 
Ø  Cash-strapped budget airline SpiceJet, which has been exploring various means to raise funds for quite some time,said it is in talks with a few investors to mop up fresh capital.( ET )
 
Ø  SEBI said it is revising the rules for offshore derivative instruments (ODIs) to bring them in line with new foreign investment norms approved earlier this year.According to the SEBI statement, ODIs will now have to be consistent with India's new foreign investment requirements, including that an investor be from a country whose central bank is a member of the Bank for International Settlements.( BS )
 
Ø  Hong Kong-based private equity firm SSG Capital Management has acquired a 49% stake in Asset Care & Reconstruction Enterprise (ACRE) for Rs 41 crore, marking the first entry of a foreign investor in the asset reconstruction space by using the foreign direct investment ( FDI) route.( ET )
 
Ø  UK's New Call Telecom eyes substantial stake in wi-fi operator Ozone Networks.UK-based telco goes for second acquisition in India after it picked up majority stake in instant messaging app Nimbuzz.( BS )
 
Ø  Jet Infraventure, a real estate development company which collected Rs.4.50 crore through an initial public offering, will list on the BSE SME platform today.The issue was subscribed 1.28 times with the participation of institutional, retail and high net worth investors.The firm allotted 3.60 lakh shares of Rs.10 each at Rs.125 a share.( BL )
 
Ø  Oxigen Services India, one of the country's largest payment solutions providers, is in talks with investors to raise as much as $200 million (about 1,230 crore) as the company looks to transform itself into a payment bank and step up its mobile wallet offerings.( ET )
 
 
 
Economic Snippet
 
Ø  Government's reforms agenda in Parliament is in for trouble with its biggest ally Shiv Sena joining some opposition parties in declaring resistance to a bill on raising FDI cap in insurance sector from 26 % to 49 %.( BS )
 
Ø  The government will adopt a compensation model to settle claims of stakeholders in the coal mines whose allocation was recently cancelled by the Supreme Court.The mines will be up for fresh bidding through the e-auction route.The bidding amount, which the government is yet to calculate, will be segregated into two parts - fixed and variable. The fixed cost part will constitute value of land and other assets associated with a particular mine.( BS )
 
Ø  India has the potential to achieve 9% growth rate and become a $10 trillion economy by 2034 on the back of concerted efforts by the corporate sector and a constructive role played by the government, a PwC report said.( BS )
 
Ø  Heavy Industry Ministry seeks cap on fine for vehicle recall.The Heavy Industry Ministry has sought key changes in the Draft Road Transport & Safety Bill to make things easier for automobile companies. The draft Bill, floated by the Road Ministry, aims to replace the existing Motor Vehicles Act.( BL )
 
Ø  The battle for alcohol between the liquor industry and oil companies is likely to end. The government plans to allow petrol blending with ethanol produced from non-edible plants.( ET )
 
Ø  The Real Estate Development and Regulation Bill is in the final stage of consultation after talks with various stakeholders, Urban Development Minister M Venkaiah Naidu said on Monday.( BL )
 
Ø  India's public debt increased to Rs 49.6 lakh crore at the end of the July-September quarter of 2014-15, up 2.8% over the previous quarter.( BS )
 
Ø  LIC has invested Rs 45,000 crore in equity markets so far this fiscal and is ready to purchase more shares when government undertakes its divestment programme, Chairman S K Roy said.The life insurance giant has set a Rs 55,000 crore for equity market investments for the current fiscal 2014-15. This is, however, less than a record high of Rs 61,000 crore it had pumped into markets in 2010.( BS )
 
Ø  The Reserve Bank of India (RBI) is considering more measures for non-banking financial companies (NBFCs), including more oversight and bringing state-owned firms under central bank supervision, Deputy Governor R Gandhi said in a speech.( BS )
 
Ø  Prime Minister Narendra Modi’s pet project, the Mumbai-Ahmedabad high-speed train, can cost up to Rs.90,000 crore, will give low internal returns and will have to be largely funded by Government, said experts at an Indo-French Rail seminar.( BL )
 
 
International Snippet
 
Ø  A rule that some US lawmakers want the Federal Reserve to follow when setting monetary policy is now giving conflicting signals on where interest rates should be, a San Francisco Fed study published on Monday showed.( ET )
 
Ø  Some commodity fund managers believe oil prices could slide to $60 per barrel if OPEC does not agree a significant output cut when it meets in Vienna this week.Brent crude futures have fallen by a third since June, touching a four-year low of $76.76 a barrel on November 14.( BS )
 

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