Corporate News 22 Feb 2008

Corporate News 22 Feb 2008

Rural Electrification Corporation (REC) IPO subscribed 4.67 times

The initial public offer of Rural Electrification Corporation (REC), a state-run power sector lender, got subscribed 4.67 times at 11:00 IST on last day of its issue today, 22 February 2008. The price band for the IPO is Rs 90 to Rs 105. The book building process, which opened on February 19, is scheduled to close on February 22. The issue would constitute about 18.18% of the fully diluted post-issue capital of REC. It is looking to raise about Rs 16.40 billion through sale of 156 million equity shares in a price band of Rs 90-105 in the IPO.

Most of the bids today came from the institutional investors that made the portion reserved for Qualified Institutional Buyers (QIBs) getting subscribed 4.52 times.

Rural Electrification is offering shares in a price band of 90 rupees to 105 rupees. The 156.1 million shares on offer will account for 18.2% of the lender's post-issue capital. The holding of the government, which fully owns the company, will be reduced to about 81.8%. IL&FS Investsmart Ltd., ICICI Securities Ltd. and SBI Capital Markets Ltd. are managing the share sale.

Rural Electrification Corporation is a public sector enterprise and is engaged in financing and promoting transmission, distribution and generation projects across the country. The company provides financial assistance to public sector power utilities at the central and state levels, private sector power utilities, and joint sector clients. Its financial products include long-term loans, short-term loans, bridge loans and debt refinancing provided through its corporate office in New Delhi and 17 field units across India.

Govt approves securities for SBI rights issue

New Delhi: The government on Feb 21 approved issuing special marketable securities worth Rs 9,995.99 crore to subscribe to State Bank of India's rights offer.The Cabinet, which met in New Delhi on Thursday, gave its approval to modify an earlier decision to give SLR (statutory liquidity ratio) status to the government securities. The issuance of such securities would have allowed SBI to meet a part of its SLR requirement.

Under SLR provisions, banks have to park 25 per cent of their deposits in government bonds. SBI has decided to raise Rs 16,736.31 crore by issuing about 10.5 crore shares on a rights basis. The issue, which opened on February 18 will close on March 18.

ICICI Prudential Life hires retired armed forces personnel to sell policies news

Chennai: Private life insurer ICICI Prudential Life Insurance Company Limited has begun hiring graduate non-commissioned officers of the armed forces or ex-servicemen to sell policies in rural areas. The source said that the retired servicemen with 10 years experience are eligible to become unit manager in rural areas. On successful completion of training, the selected ex-servicemen will be given a Certificate of Insurance Management and absorbed by the life insurer. Till date the company has recruited around 231 retired armed forces personnel across the country and nearly 48 per cent of them belong to South India.This move is expected to boost ICICI Prudential Life's premium income and its agency field force in rural areas, which currently numbers 30,000 rural agents who contribute around 3 per cent of fresh business.

Indiabulls Financial - Application for setting up Mutual Fund

Indiabulls Financial Services Ltd has informed that Securities and Exchange Board of India (SEBI) has approved setting up of an Asset Management Company and a Trustee Company, pursuant to application of the Company for setting up a Mutual Fund.

The Company is in the process of setting up of an Asset Management Company and a Trustee Company in terms of the approval of the SEBI, for setting up the Mutual Fund.

Pidilite Industries - Updates

Pidilite Industries Ltd has informed about the following:

1. The Company has acquired entire issued and Paid-up Capital of following Companies by investing Rs 1,70,000/- each: a. Bhimad Commercial Co. Pvt. Ltd. b. Madhumala Traders Pvt. Ltd. The current business of both these Companies is Investment.

2. Both the above Companies which are now Wholly Owned Subsidiaries of the Company have joined as Partners in the existing firm, M/s. Nitin Enterprises engaged in the business of manufacturing of branded Sealants and Adhesives in the State of Jammu & Kashmir.

3. The Company also acquired assets and business of branded Sealants and Adhesives from M/s. Hardcastle & Waud Manufacturing Co Ltd., and associates.

Dr Reddys - Allotment of equity shares under ESOP

Dr Reddys Laboratories Ltd has informed that pursuant to Dr. Reddy's Employees Stock Option Scheme, 2002, the Compensation Committee of the Board of Directors of the Company has allotted 37,094 equity shares of Rs 5 each of the Company on February 21, 2008, to Employees who have exercised their Stock Options.

Jaiprakash Associates signs shareholders' agreement with Steel Authority of India

Jaiprakash Associates has signed the shareholders' agreement with Steel Authority of India (SAIL) for setting up of 2.1 MTPA capacity slag-based cement plant at Bokaro Steel City, Jharkhand in joint venture through a special purpose vehicle to be incorporated for the purpose.

Jaiprakash Associates shall hold 74% equity in the joint venture company and 26% equity of the same shall be held by SAIL.

The company made this announcement after the trading hours on Thursday, 21 February 2008.

GlaxoSmithKline Pharmaceuticals recommends dividend

The board of GlaxoSmithKline Pharmaceuticals has recommended dividend at the rate of Rs 18 per share for the year ended 31 December 2007.

This was recommended at the board meeting held on 22 February 2008.

Info Edge India's FIIs limit increases to 40%

Info Edge India has announced that the FIIs investment limit under portfolio investment scheme stands increased to 40% of the paid-up equity share capital of the company.

The company made this announcement during the trading hours today, 22 February 2008.

Satyam Computer Services sets-up Life Sciences Center of Excellence

Satyam Computer Services has announced the setting up of the Life Sciences Center of Excellence (CoE). The facility was inaugurated by Satyams founder and chairman, B Ramalinga Raju on the sidelines of RxCellence, the Life Sciences conclave which Satyam hosted at its state-of-art Satyam school of leadership in Hyderabad. The theme for the conference was faster, safer and smarter strategies for Life Sciences Industry. The day was filled with compelling, insightful and thought-provoking speaker sessions and panel discussions on the progressive accomplishments in the pharmaceutical, biomedical and generics industry. Thought Leaders CXOs, business leaders, consultants, analysts, scientists and senior executives from different parts of the world attended the event. Some of the eminent dignitaries were from the Life Sciences advisory board members comprising ex-senior executives / ex-CXOs of leading Life S companies.

The Life Sciences CoE will showcase Satyams domain expertise and thought leadership in the industry. The CoE will house solutions cutting across the value chain, addressing a number of industry pain points. While there are quite a few discrete point solutions attempting to address various industry pain points, they are often incomplete requiring huge amount of customization and complex integration. The CoE solutions will provide the necessary frameworks with flexibility and ease of customization enabling faster implementations and therefore a better Rol. These solutions leverage extensive domain experience that Satyam has built over the years in the industry. The CoE addresses industry needs in the areas of clinical drug accountability, drug counterfeiting, cell line management systems, high throughput analytics, clinical development, bioinformatics, supply chain, CRM, key opinion leader portals etc.

The Satyam CoE solutions are being reviewed and validated regularly by their customers and the life sciences advisory board comprising eminent personalities with decades of experience in the industry. With all the inputs being received and the consequent refinements and enhancements being made, Satyam is confident that the organization will be able to make a step change in the quality and delivered value of services to customers.

The company made this announcement during the trading hours today, 22 February 2008.

Megasoft recommends dividend

The board of Megasoft has recommended dividend at the rate of 12%.

This was recommended at the board meeting held on 22 February 2008.

Vesuvius India recommends dividend

The board of Vesuvius India has recommended dividend at the rate of Rs 3.75 per share (37.50%) for the year ended 31 December 2007.

This was recommended at the board meeting held on 22 February 2008.

NPIL Research & Development enters into agreement with department of biotechnology

Nicholas Piramal India has announced that NPIL Research & Development has signed an agreement with the department of biotechnology, New Delhi on screening for bio-molecules from microbial diversity collected from different ecological niches, thereby initiating an industry - university / national institute partnership programme in drug discovery.

The project envisages a mega-scale screening programme for various environmental isolates. This is the first project in the country in which industry and academia will work together to screen such a large number of bacterial isolates. Different academic institutes will isolate organisms specific to diverse ecological niches. For each sample, isolation of bacteria will be carried out on 30 different growth media.

This multi-institutional effort will generate approximately 7000 isolates / month (~1000/institute), which will be regularly sent to NRDL, the industrial partner of the project. Each of these institutes is an expert in niche areas of microbial biodiversity. The microbial isolates have not been tested for potent medicinal properties, if any. The purpose of this study is to exploit the biodiversity of microbes. This will help in identifying specific therapeutic properties that may be further used to identify novel molecules, which may then be passed on to the drug development phase.

At NRDL's facility at Goregaon, Mumbai, a team of scientists have been concerting their skills and have established high-end technologies using High-throughput robotics, which help in identifying specific properties that can be further developed. Most biological assays involve the use of living cells under in vitro conditions to measure the therapeutic potential of the extract. If this is found to be positive and better than the existing controls, a collective decision may be taken to move forward to the various steps involved in the development phase of the drug.

Natural diversity appears to be a novel source for new drugs worldwide. In the pursuit of new drug development, new drugs are needed so that an effective pipeline of molecules is established whose properties can be effectively validated in vitro using modern techniques in proteomics and genomics.

Screening will be carried out for anti-cancer, anti-infective, anti-diabetes and anti-inflammation properties. In addition to the culture-dependent method, the culture-independent approach will also be adopted for a few selected samples.

There are hopes that a bank of novel leads with specific potential will soon be developed. This will aid In the long-drawn process of drug discovery. Natural diversity appears to be a novel source for new drugs worldwide. In the pursuit of new drug development, new drugs are needed so that an effective pipeline of molecules is established whose properties can be effectively validated in vitro using modern techniques in proteomics and genomics.Screening will be carried out for anti-cancer, anti-infective, anti-diabetes and anti-inflammation properties. In addition to the culture-dependent method, the culture-independent approach will also be adopted for a few selected samples.There are hopes that a bank of novel leads with specific potential will soon be developed. This will aid In the long-drawn process of drug discovery. The project will lead to the selection of potential candidate molecules, which will be taken to process scale-up strategies with appropriate partners. The credit-sharing in this project amongst the PI and industry has been mutually worked out.

The company made this announcement during the trading hours today, 22 February 2008.

City Union Bank declares interim dividend

The board of City Union Bank has recommended an interim dividend of 30% on the equity shares for the financial year 2007-2008.

This was recommended at the board meeting held on 22 February 2008.

Jaiprakash Associates appoints director

The board of Jaiprakash Associates has appointed S C Gupta as director in the existing vacancy with effect from February 21, 2008.

He was appointed at the board meeting held on 21 February 2008.

ICICI Bank allots equity shares

ICICI Bank has allotted 8,003 equity shares of face value Rs 10 each under ESOS, 2000.

These shares were allotted by the bank on 18 February 2008.

Power Grid Corporation to consider interim dividend

The board meeting of Power Grid Corporation of India will be held on 05 March 2008 for declaration of interim dividend for the financial year 2007-08.

The company made this announcement during the trading hours today, 22 February 2008.

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Corporate News- 21st Feb 2008

Corporate News- 21st Feb 2008

·          Infosys Technologies Unveils Latin America IT Development Center

·          SBI cuts lending rate by 0.25 per cent

·          Sun Pharma ups stake in Israeli firm Taro

·          Tata Consultancy Services signs contract with Chrysler

·          Future Capital - Outcome of Board Meeting

·          Berger Paints - Board Meeting on Feb 26, 2008

·          Jaiprakash Associates loses by 3.92%

·          Godrej Commodities - EGM on Mar 28, 2008

·          Gujarat Gas Company recommends dividend

·          Teledata Informatics to raise funds

·          Future Capital Holdings appoints executive director

·          Punjab National Bank's director passes away

·          Glenmark Pharmaceuticals' GRC 4039 enters phase I trials

·          Larsen & Toubro secures order for oil & gas pipelines

·          Reliance Communications forays in international mobile market with GSM license in Uganda

·          Aditya Birla Nuvo allots warrants

·          Housing Development & Infrastructure enters into sale of developmental rights agreement

·          Alstom Projects India wins export orders

·          Nicco Corporation's preference & equity shareholders to approve scheme of arrangement

 

News in Detail

 

Infosys Technologies Unveils Latin America IT Development Center

Infosys Technologies Ltd has announced that the Company on February 20, 2008 unveiled the Company's first Latin American subsidiary by hosting an inaugural ceremony in Monterrey, Mexico attended by top dignitaries of the Mexican government and Infosys executives.

The inauguration, attended by the President of the Mexican United States, H.E. Felipe de Jesus Calderon Hinojosa, Chairman of the Board and Chief Mentor, Infosys Technologies Ltd, Mr. N R Narayana Murthy and the Governor of the State of Nuevo Leon, Mr. Jose Natividad Gonzalez Paras, is aimed at enhancing services to existing Infosys' clients in the U.S., Latin America and Europe.

The subsidiary, Infosys Technologies S. De R.L. De CV, provides the Company's full range of business consulting and information technology services for clients in all industries including banking, financial services, distribution, retail, and more. The center provides key offerings in business process outsourcing (BPO), infrastructure management and packaged solutions implementation.

"Mexico has embraced Infosys and worked with us to establish this innovative development center," said Mr. Murthy, Infosys Technologies. "Our public-private partnership is already serving a half-dozen global clients in multiple industries and 87 new employees, both new college graduates as well as senior professionals, have joined Infosys so far - remarkable achievements in the first six months since opening the center."

The Monterrey facility provides Infosys with dedicated resources to service clients in North America, Latin America and Europe with bilingual talent in an agreeable time zone and close proximity. Furthermore, it strengthens the Company's global delivery model capabilities and joins other Infosys development centers in the Czech Republic, Poland, Thailand, Philippines, China, Australia, Canada and India.

After examining several countries in the region, Infosys chose to establish a presence in Mexico due to the broad language skills available in the region, its cultural similarities to Canada, the U.S. and Europe. Latin America is a strong emerging market and one where many of Infosys' clients have operations already.

 

SBI cuts lending rate by 0.25 per cent

In a move that will make housing and auto loans cheaper, four public sector banks, led by State bank of India, today announced slashing the Prime Lending Rates by 0.25-0.50 per cent.For the second time in less than 10 days, the country's largest lender SBI slashed Prime Lending Rate by 0.25 per cent to 12.25 per cent. The bank had announced, on February 11, cutting the PLR by 0.25 per cent effective from February 16.

The reduction in PLR is likely to moderate lending rates for all category of borrowers, including housing (floating rate), corporate, car loans.Moreover, Bank of India and Union Bank also announced reduction in PLR by 0.5 per cent to 12.75 per cent today. Bangalore-based Canara Bank also cut PLR by 0.25 per cent to 12.75 per cent.Earlier last month, housing finance company HDFC and PNB Housing Finance too had reduced interest rate on housing loan.While HDFC reduced its RPLR by 0.25 per cent effective February one, PNB Housing Finance slashed the rates by 0.5 per cent. RBI Governor Y V Reddy, while announcing the quarterly monetary policy review on January 29, had asked bankers to explore the possibility of reducing interest rates in the light of high net interest margin.

 

Sun Pharma ups stake in Israeli firm Taro

Sun Pharmaceuticals, a Mumbai-based drug-maker, said it has increased its stake in Israel-based Taro Pharmaceutical Industries Ltd to 34.4 per cent.The private equity firm Brandes Investment Partners, which was opposing the Sun-Taro deal sold its 9.4 per cent cent stake and that now brings Sun Pharma's stake in Taro to more that one-third.

But the deal has come at a cost as Sun was initially planning to pay less than $30 million to Brandes but sources say it has finally ended up paying $48 million more.But Taro is still not fully under Sun's control, as it will have to navigate many more side deals. The most important will be getting hold of the stake held by Franklin Templeton.

Sun Pharma has indicated that they might offer a similar price to Templeton but not necessarily to all shareholders. Much of the stake should have been picked up when the next shareholders meeting comes up in another 2-3 months and the entire Taro acquisition is expected to be completed in 5-6 months.But traders are not too happy about the higher cost of acquisition, which is why the Sun Pharma stock took a huge beating on Wednesday. However, long term investors feel that Sun might be on the right track.One reason why Sun Pharma might have turned willing to shell out a higher price is the better performance of the target company. Taro now expects 2007 revenues of $313 million much better than market expectations if Taro continues to perform Sun's payback time will get shortened also with $100 million dollars already invested in Taro Pharma.

 

 

Tata Consultancy Services signs contract with Chrysler

Tata Consultancy Services (TCS) has signed a multi-year contract with the American automobile manufacturer Chrysler LLC to provide IT services. According to the contract, TCS will deliver application, maintenance and support services to Chrysler. The IT services will also encompass a portion of the functional areas within Chrysler, such as Sales, marketing and shared services.

 

Future Capital - Outcome of Board Meeting

Future Capital Holdings Ltd has informed that the Board of Directors of the Company of the at its meeting held on February 20, 2008 has approved the following:

1. The appointment of Mr. Dhanpal Jhaveri as a Executive Director of the Company and his remuneration in this regard.

2. Approved for Future Capital Holdings Ltd to be one of the Promoters of Future Ventures India Ltd, a Future Group Enterprise and to enter into an agreement for providing Consulting and Advisory Services to Future Ventures India Ltd.

 

Berger Paints - Board Meeting on Feb 26, 2008

Berger Paints India Ltd has informed that a meeting of the Board of Directors of the Company will be held on February 26, 2008, inter alia, to consider, issue of convertible warrants to the promoters of the Company / promoter group

 

Jaiprakash Associates loses by 3.92%

Share prices of Jaiprakash Associates went down by 3.92% to Rs. 253.90 reported at BSE at 10.56 a.m. on 20 February 2008 against previous day close of Rs 264.25. Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the company. Taurus Starshare is likely to lose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Taurus Starshare has 33.04% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 23.02 lakh units of the company in January 2008 compared to its peer groups who have invested in the stocks of the company.

Top three schemes, which are likely to affect, are of Taurus mutual fund. Other schemes, which may affect includes Taurus Discovery Stock with 2.22 lakh units (16.44% of its portfolio), Taurus Bonanza Exclusive Growth Scheme with holding of 2.24 lakh units (15.14%) as on 31 January 2008.

 

Godrej Commodities - EGM on Mar 28, 2008

Godrej Commodities Ltd has informed that an Extra Ordinary General Meeting (EGM) of the members of the Company will be held on March 28, 2008, inter alia, to change the name of the Company from "Godrej Commodities Ltd" to "Wadala Commodities Ltd" and the name "Godrej Commodities Ltd" wherever it appears in the Memorandum of Association and Articles of Association and all other documents be substituted by the new name "Wadala Commodities Ltd", subject to necessary provisions & approvals.

 

Gujarat Gas Company recommends dividend

The board of Gujarat Gas Company has recommended dividend at the rate of Rs 3 per share (150%).

Further, the board has recommended dividend at the rate of Rs 0.75 per share (7.5%) on redeemable cumulative non convertible preference shares.

This was recommended at the board meeting held on 20 February 2008.

 

Teledata Informatics to raise funds

The board of Teledata Informatics has decided to isue of shares under qualified institutional placement(QIP). The board has approved to raise an amount up to Rs 500 crore by way of qualified institutional placement of equity shares to qualified institutional buyers.

Further, the board has decided to convene extraordinary general meeting on 19 March 2008.

This was decided at the board meeting held on 20 February 2008.

 

Future Capital Holdings appoints executive director

The board of Future Capital Holdings has apppointed Dhanpal Jhaveri as a executive director of the company.

Further, the board has approved Future Capital Holdings to be one of the promoters of Future Ventures India, a Future Group Enterprise and to enter into an agreement for providing consulting and advisory services to Future Ventures India.

This was decided at the board meeting held on 20 February 2008.

 

Punjab National Bank's director passes away

Punjab National Bank has announced the sad demise of Mohanjit Singh, director on the board of the bank.

The company made this announcement during the trading hours today, 21 February 2008.

 

Glenmark Pharmaceuticals' GRC 4039 enters phase I trials

Glenmark Pharmaceuticals has announced that its candidate for rheumatoid arthritis, inflammation and multiple sclerosis - GRC 4039, has entered phase I trials. This is with approval from the Medicines and Healthcare Products Regulatory Agency [MHRA] in the U.K. The company intends to develop GRC 4039, a PDE 4 inhibitor, in rheumatoid arthritis as the primary indication. Glenmark expects to complete phase I trials for GRC 4039 by October 2008 and initiate phase II by January 2009.

GRC 4039, a selective PDE4 inhibitor is intended for rheumatoid arthritis [RA] and inflammatory disorders. After the withdrawal/setback of COX-2 Inhibitors and the void that exists in RA therapy for orally available potent small molecules, this is a potential block-buster opportunity in the global market.

GRC 4039 in pre-clinical testing has exhibited IC50 of 2.7nM; over 3700 fold selectivity to PDE4, good bioavailability across species and a long half-life indicating the potential for a once-daily dosing regimen. Additionally, there was no emesis in the pre-clinical models. The molecule demonstrated favourable results in early toxicology studies, a good safety margin and also exhibited good efficacy in in-vivo RA and TNF- inhibition models.

RA is a debilitating disorder with significant unmet need and attractive market dynamics. Approximately 1% of the global population is thought to be affected by the disorder, a systemic autoimmune disease that usually causes progressive symmetrical inflammation and damage of the joints by destroying the articular surfaces covering the bones. One in three RA patients is likely to be disabled within 20 years of disease onset due to rapid disease progression. Onset often occurs between the ages of 25 and 50 years and is two to three times more prevalent in women than in men.

The company made this announcement during the trading hours today, 21 February 2008.

 

Larsen & Toubro secures order for oil & gas pipelines

Larsen & Toubro (L&T)'s engineering and construction projects division of the company has been awarded another major contract by Cairn India for the engineering procurement and construction (EPC) services for the export crude oil insulated pipeline and gas pipeline from Barmer, Rajasthan to Salaya, Gujarat.

The scope of work involves the laying of a cross country 24 inch skin heat traced pipeline with PUF insulation for crude oil transportation from the Mangala terminal, located at Barmer, Rajasthan to the Salaya Oil Export terminal, near Jamnagar. The pipeline travels 330 Kilometres (kms) south from the Mangala Field to a pump station and oil take off point at Viramgam. From Viramgam the pipeline continues for 261 kms south west up to an Export Oil terminal at Salaya.

Another pipeline of 8 inch diameter will be laid for transporting natural gas from the Raageshwari Fields which will be laid alongside the 24 inch pipeline to the Salaya receiving facility for feeding the gas generator sets located at 32 sites enroute. These gas generator sets are meant primarily for producing electricity for Skin Effect Heat Management System (SEHMS) to maintain the fluidity of the waxy crude.

 

Reliance Communications forays in international mobile market with GSM license in Uganda

Reliance Communications has announced the acquisition of Uganda based Anupam Global Soft, a company holding public infrastructure provider license (PIPL) and public service provider license (PSPL) issued by Uganda communications commission. The acquisition, made through a subsidiary of Reliance Communications, marks the first step in the company's plans in the international mobile market.

Under the existing licenses, Reliance Communications targets to offer mobile, fixed line, internet, national and international long distance services, in addition to WiMax and Wifi services in Uganda.

This company has received spectrum allocation and plans to launch its mobile services by end of 2008. Reliance Communications Group is targeting to invest upto US$ 500 million (Rs 2000 crore) in establishing a high quality, fully-IP enabled integrated telecom network in Uganda to capture the significant growth potential in this emerging African market.

The company plans to connect the African continent with rest of the world by laying a submarine cable system through its arm Reliance FLAG plans to spend US$1.5 billion (Rs 6000 crore) in building a 1,15,000 kms fully-IP enabled optic network to reach 2/3rd of world population.

Reliance Communications has ambitious global expansion plans and is concentrating on opportunities in emerging Asian and African markets. The company has established a pan-India, next generation, integrated (wireless and wireline), convergent digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain.

Uganda has a population of approx. 30 million with a significant literacy rate of approximately 62%. There were 3.016 million mobile subscribers by end-March 2007 (source: UCC), equivalent to a penetration rate of 10%, providing ample scope of expansion. The existing telecom players have been witnessing healthy subscriber and ARPU growth recently.

The company made this announcement during the trading hours today, 21 February 2008.

 

Aditya Birla Nuvo allots warrants

The committee of Aditya Birla Nuvo has allotted 2,05,00,000 warrants to promoter and promoter group companies. These warrants, entitle the holder thereof to apply for and obtain allotment of one equity share of the face value Rs 10 each at a premium of Rs 1997.45 per share.

These warrants were allotted at the committee meeting held on 21 February 2008.

 

Housing Development & Infrastructure enters into sale of developmental rights agreement

Housing Development & Infrastructure has entered in to sale of developmental rights agreement dated with respect to its project named Kaledonia situated at sahar road, Andheri (East) with Mack Star marketing for a consideration of Rs 900 crore.

The company made this announcement during the trading hours today, 21 February 2008.

 

Alstom Projects India wins export orders

Alstom Projects India bagged two export orders worth Rs 242 crore for Fujairah independent water and power plant at Fujairah, UAE and Hydro order worth Rs 350 crore for Bujagali hydro electric power station at Jinja in Uganda, respective.

The Heat Recovery Steam Generator (HRSG) order is for Fujairah independent water and power plant, one of the world's largest desalination plants located at Quidfa in Fujairah, UAE. The order comprises of design engineering, supply and delivery of five HRSGs for GT26 at Fujairah site.

The hydro order for 5 x 51 MW (Kaplan machine) for Bujagali hydro electric power station at Jinja in Uganda. The main contract was awarded by Salini to Alstom Group. For this project Alstom Projects India (APIL) will be executing the orders worth Rs 350 crore. The offshore scope of work for this project includes design, manufacture and supply of turbine, generator, balance of plant and hydro mechanical equipment. This will be executed at APIL's hydro facility at Vadodara which is one of the three large hydro equipment manufacturing hubs in the group along with China and Brazil. The onshore scope of work for this project will include erection, commissioning and handing over of the supplied portion.

The company made this announcement during the trading hours today, 21 February 2008.

Nicco Corporation's preference & equity shareholders to approve scheme of arrangement

Nicco Corporation has announced that the pursuant to the order of Hon'ble High Court at Calcutta the separate meetings of the 5% cumulative redeemable preference shareholders and also the equity shareholders of the company will be held on 14 March 2008 for the purpose of considering the proposed scheme of arrangement between Nicco Corporation and Nicco Cables.

The company made this announcement during the trading hours today, 21 February 2008.

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Economy News 20th Feb 2008

Economy News 20^th Feb 2008

Govt asks public banks to provide interest-free loans to sugar mills

Central government in New Delhi asked the public sector banks (PSBs) to implement a sugar package involving the provision of interest-free loans to sugar mills and submit a compliance report in the next 10 days.

Finance Minister Palaniappan Chidambaram pointed out that three banks, namely Punjab National Bank, Indian Bank and Indian Overseas Bank, had already implemented the relief package.

Goverment to offer package to address credit needs of farmers:PM

On 15 February 2008, Prime Minister Manmohan Singh while addresing the annual general meeting of Federation of Indian Chambers of Commerce and Industry (Ficci) in New Delhi, said the government will soon come out with a package to address the indebtedness of farmers.

The minister pointed out that the share of agriculture in the GDP has been declining. He added that the importance of this sector for India's economy cannot be minimised this sector as it supports a significant portion of the country's population and also acts as a social safety net.

The package would look into the credit needs of farmers. The minister explained the goverment could not have a situation where 80% of the agri sector is outside the formal financial system and suffers from excessive indebtedness.

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Corporate News - 20 Feb 2008

Corporate News - 20 Feb 2008

Pfizer - FY07 results on Feb 25, 2008

Pfizer Ltd has informed that a meeting of the Board of Directors of the Company will be held on February 25, 2008, inter alia, to consider the Audited Statement of Accounts of the Company for the year ended November 30, 2007 and to recommend dividend thereon.

Listing of equity shares of OnMobile Global Ltd

Pfizer Ltd has informed that a meeting of the Board of Directors of the Company will be held on February 25, 2008, inter alia, to consider the Audited Statement of Accounts of the Company for the year ended November 30, 2007 and to recommend dividend thereon.

Reliance Power gains on bonus

Mumbai: Anil Ambani will not be disappointed from markets' immediate reaction to the announcement of the Reliance Powers bonus shares.On opening, it zoomed to Rs 436 in the mornings trade and is now hovering around the Rs 420 mark compared to the Rs 384 mark at which it closed on Friday. Reliance Power announced its decision on Sunday to issue bonus shares to shareholders.For the first time in the history of global capital markets, a company issued free shares to retail and institutional shareholders. This comes after the February 11 listing of the company which saw a less than positive reaction. Reliance sources said that bonus is not a face saving exercise and it will also consider methods other than bonus to compensate investors.

Tata Investment becomes arm of Tata Sons

Mumbai: Tata Investment Corp Ltd (TICL) has become a subsidiary of Tata Sons Ltd. TICL said Tata Sons has acquired five million of its equity shares from Tata Chemicals Ltd. Tata Sons Ltd now holds 54.98 percent of the paid-up capital of the company.

UBS likely to revive its bid for Stan Chart AMC

Mumbai: It seems no one is immune to the pressures of lobbying not even the staunchly independent Reserve Bank of India. Just months after the RBI rejected an application by Swiss bank UBS to acquire the asset management business of Standard Chartered Bank, UBS is now in a position to revive its bid for Stan Chart AMC after the RBI cleared its application for a full banking licence.

The RBI has allowed it to convert its representative office into a branch. For now UBS will be allowed to open one retail banking branch but henceforth, the Swiss bank will be allowed to apply to the RBI for more branches.While UBS declined to officially comment on the development sources indicate that UBS has received official communication from the RBI.

The RBI's volte-face on UBS has raised many questions about its failed bid for Standard Chartered AMC. The RBI had rejected that bid due to questions raised about certain transactions suspected of money laundering, which had led the RBI to say that UBS' proposal was not found to be fit and proper. However, sources say now that the RBI has cleared UBS's proposal for a full banking licence, the Swiss bank has sufficient grounds to re-open that bid. Following that exercise, UBS is likely to re-file its application for an Asset Management Business with SEBI and RBI.The change in UBS's fortunes in India comes a week after a high level delegation from the Swiss Bankers Association met with the RBI and finance ministry officials. The association has assured the RBI that Swiss Banks like UBS have stringent anti-money laundering systems in place and will comply with all rules and regulations set by the RBI. With those assurances in place UBS is now likely to be expand its presence in India substantially with a focus on retail operations.

ICICI Bank - Allotment of equity shares under ESOS

ICICI Bank Ltd has informed that the Bank has allotted 8,431 equity shares of face value of Rs 10/- each on February 11, 2008 under the Employees Stock Option Scheme, 2000 (ESOS).

BHEL to set up Libya power plant

New Delhi: BHEL, India's leading Power equipment maker, announced that it received a major order for setting up a 300 MW gas turbine-based power plant in Libya. According to a statement by BHEL, The order worth Rs 650 crore order to be executed on engineering, procurement and construction basis, has been placed by general electricity company of Libya for expansion of the 600 MW Western Mountain Power Project.

BHEL had recently completed execution of the Rs 1,400 crore project, the largest gas turbine-based power project installed by the company so far. The present contract for extension of western mountain power project envisages setting up two gas-turbine units of 150 MW each. The equipment for the 300 MW order would be supplied from Bhel`s manufacturing facilities at Haridwar, Bhopal, Jhansi, Bangalore, Chennai and Ranipet.

UTV expands alliance with Walt Disney

Mumbai: Hollywood media giant Walt Disney Company is all set to put in Rs 13.14 billion in two UTV group firms. An agreement has recently been reached between the two groups under which Disney, through its subsidiary The Walt Disney Company (Southeast-Asia) Pvt Ltd will invest Rs 13.14 billion in UTV Software Communications Ltd (USCL) and UTV Global Broadcasting Ltd (UGBL).

UGBL is the parent company for its two wholly owned subsidiaries, Genx Entertainment Ltd and UTV Entertainment Television Ltd. Genx has already launched successfully two youth entertainment channels through the Bindass brand while the latter just launched The World Movies channel and is about to start UTV Hindi Movies channel. The company would also keep its shareholders informed by a public announcement. The deal and the open offer of Rs 1.19 billion is subject to regulatory and shareholder approvals. The agreement, once sealed, will help Disney increase its stake in UTV from 13.7 per cent to 32.1 per cent.

3i Infotech - Allotment of equity shares under ESOS

3i Infotech Ltd has informed that the Company has allotted 8,300 equity shares on February 18, 2008, to the applicants under Employee Stock Option Scheme (ESOS), 2000.

Balasore Alloys allots equity shares

Balasore Alloys has announced that 2,00,00,000 equity shares of Rs 5 each at a premium of Rs 7.75 per share issued and allotted to the promoters of the company on preferential basis pursuant to the corporate debt restructuring package of the company have become fully paid up and there is no partly paid shares of the company existed as on date. The necessary corporate action has already been taken for credit of fully paid up shares in their respective accounts.

The company made this announcement during the trading hours today, 19 February 2008.

Jaiprakash Hydro Power's director resigns

The board of Jaiprakash Hydro Power has accepted the resignation of D N Davar from the office of director of the company with effect from 25 January 2008.

The company made this announcement during the trading hours today, 19 February 2008.

Ansal Housing & Construction allots equity shares & warrants

The board of Ansal Housing & Construction has allotted 1,50,000 equity shares at Rs 225 per share after receipt of 100% payment due on the equity shares to the independent parties and 29,50,000 warrants at Rs 225 per warrant, each warrant convertible into one equity share after receipt of 10% payment due on the warrants to the independent parties and promoters of the company.

These shares and warrants were allotted at the board meeting held on 19 February 2008.

Berger Paints India to issue convertible warrants

The board meeting of Berger Paints India will be held on 26 February 2008 to consider issue of convertible warrants to the promoters of the company / promoter group.

The company made this announcement during the trading hours today, 19 February 2008.

ACC allots shares

The committee of ACC has allotted 2,805 shares against exercise of employee stock options under various ESOS.

Consequently, the paid-up share capital of the company has increased from 18,76,30,028 shares to 18,76,32,833 shares of Rs 10 face value, as of date.

The company made this announcement during the trading hours today, 19 February 2008.

Ranbaxy Laboratories' board clears scheme of de-merger of New Drug Discovery Research unit

The board of Ranbaxy Laboratories has cleared a scheme of de-merger of the company's New Drug Discovery Research (NDDR) unit into a subsidiary, Ranbaxy Life Science Research (RLSRL). This is subject to requisite approvals.

Ranbaxy believes that this is a significant step in creating an independent pathway for NDDR with dedicated resources and an enhanced focus for long-term growth. Ranbaxy has state of the art research infrastructure and a highly skilled scientific talent pool. These strengths can be more effectively leveraged through an independent vehicle that better aligns assets with priorities to accelerate the company’s drug discovery programmes. The resulting operational freedom and flexibility will also help to open up new growth opportunities while providing a platform for increased collaboration. The demerger will result in cost savings of approx. US$ 25 million in the current year for Ranbaxy, a recurring expense, likely to increase significantly in the coming years.

Under the scheme, the shareholders of Ranbaxy will be entitled to receive one equity share of Re.1 each of RLSRL, without any payment for every four equity shares of Rs 5 each held in Ranbaxy, as on the Record date, to be fixed for this purpose, after receipt of requisite approvals. All assets, liabilities, research personnel and pipeline related to the NDDR unit will be transferred to RLSRL.

Ranbaxy has subscribed to redeemable preference shares of RLSRL aggregating Rs 200 crore, to meet its business needs. Post the de-merger, the equity capital of RLSRL will be approx. Rs 12.6 crore. Ranbaxy and RLSRL employees welfare fund trust will respectively hold 19.8% and 4.9% of the equity share capital of RLSRL. The balance will be held by the shareholders of Ranbaxy.

This was decided at the board meeting held on 19 February 2008.

CMC's director resigns

CMC has announced that C B Bhave has sent his resignation letter dated 15 February 2008 from the board of directors of the company on being appointed by the Government of India as chairman of Securities Exchange Board of India.

The company made this announcement during the trading hours today, 19 February 2008.

Infosys Technologies signs MoU with Nihon Unisys, Japan

Infosys Technologies has announced that it has signed a MoU for alliance of strategic business deployment and joint development for sales and solution service offering with Nihon Unisys, Japan.

This alliance is the maturing of the June 2007 partnership between Nihon Unisys and Infosys to execute large-scale system upgrades of Oracle e-business suite for Nihon Unisys' customers. The alliance will also explore mutually beneficial areas where the global delivery model can be leveraged to jointly go to market. These include joint solution / product development and application development/ maintenance.

The alliance brings together Nihon Unisys' experience in the Japanese market and Infosys' global delivery model, its experience in open systems, and its cuffing-edge technologies and methodologies to deliver high-quality and high-value solutions to Nihon Unisys’ customers in the Japanese market.

The company made this announcement during the trading hours today, 19 February 2008.

Parsvnath Developers launches Parsvnath Eleganza

Parsvnath Developers has launched the first of its kind mega mall cum multiplex, Parsvnath Eleganza in Dehradun. The company will invest Rs 40 crore in developing the complex.

Parsvnath Eleganza is the first such mall-cum-multiplex being developed in the city. Located at prime location of Rajpur Road, the mall comes with an added advantage of a 4-screen multiplex within the complex, which gives another reason to visit the complex. Having a saleable area of 1.5 lacs square feet, the mall is spread over four floors, will be fully air-conditioned and will have 100% power back-up at all times.

Glass fronted lifts, aesthetic architecture and modern design will provide for complete comfort and a pleasurable shopping experience for its customers. The mall is designed for optimum space utilization for its shop owners. Latest fire alarm, fire fighting systems and round-the-clock security systems will ensure complete safety. The mall also provides a reserved area to accommodate parking needs of visitors.

The mall will boast of premium national and international brands, departmental stores, retail chains and fashion stores and will be a one stop for branded lifestyle products. Food courts in the mall will provide a comfortable venue for the window shoppers and also those who are looking at outlets for meetings and get to-gathers. The entire complex for which the construction has commenced is expected to be completed and operational with in one years.

The company made this announcement during the trading hours today, 19 February 2008.

ABB net profit rises 33.97% in the December 2007 quarter

Net profit of ABB rose 33.97% to Rs 180.79 crore in the quarter ended December 2007 as against Rs 134.95 crore during the previous quarter ended December 2006. Sales rose 28.97% to Rs 1839.45 crore in the quarter ended December 2007 as against Rs 1426.31 crore during the previous quarter ended December 2006.

For the full year, net profit rose 44.48% to Rs 491.67 crore in the year ended December 2007 as against Rs 340.31 crore during the previous year ended December 2006. Sales rose 38.75% to Rs 5930.31 crore in the year ended December 2007 as against Rs 4274.01 crore during the previous year ended December 2006.

Housing Development Finance Corporation allots equity shares

Housing Development Finance Corporation (HDFC) has allotted 78,416 equity shares of Rs 10 each pursuant to conversion of FCCBs by bondholders and exercise of stock options by employees.

Post the above allotment, the paid-up equity share capital of the corporation would stand at Rs 283,50,23,360 consisting of 28,35,02,336 equity shares of Rs 10 each.

These shares were allotted by the corporation on 19 February 2008.

Microsoft and Satyam strengthen strategic relationship with enhanced focus on collaborative growth

Satyam Computer Services has announced various strategic initiatives to further expand the scope and scale of its multi-dimensional relationship with Microsoft Corp., including the selling up of a 350 seater dedicated delivery center in Hyderabad to deliver futuristic solutions using cutting edge Microsoft technologies. The facility was inaugurated by Moorthy Uppaluri, CEO, Microsoft IT-Global, on 16 February 2008.

Satyam is a global strategic service partner to Microsoft's global IT sourcing and product development outsourcing. Satyam's engagement involves building Microsoft IP and solutions in futuristic products and / or yet-to-be-released versions. Satyam's experience in serving Microsoft's global IT sourcing organization (MSIT), the foremost consumer of newly-released / yet-to-be-released products in the world, ensures that Satyam brings the best and most current development, integration and sustenance skills on the MS platform to its customers. Satyam also collaborates with Microsoft to address needs of common enterprise customers and provide enhanced business value.

CRISIL recommends dividend

The board of CRISIL has recommended dividend at the rate of Rs 25 per share. This was recommended at the board meeting held on 18 February 2008.

CRISIL net profit rises 291.74% in the December 2007 quarter

Net profit of CRISIL rose 291.74% to Rs 27.50 crore in the quarter ended December 2007 as against Rs 7.02 crore during the previous quarter ended December 2006. Sales rose 102.54% to Rs 84.68 crore in the quarter ended December 2007 as against Rs 41.81 crore during the previous quarter ended December 2006.

For the full year, net profit rose 89.06% to Rs 70.67 crore in the year ended December 2007 as against Rs 37.38 crore during the previous year ended December 2006. Sales rose 73.99% to Rs 255.32 crore in the year ended December 2007 as against Rs 146.74 crore during the previous year ended December 2006.

Castrol India net profit rises 49.05% in the December 2007 quarter

Net profit of Castrol India rose 49.05% to Rs 56.76 crore in the quarter ended December 2007 as against Rs 38.08 crore during the previous quarter ended December 2006. Sales declined 1.15% to Rs 474.99 crore in the quarter ended December 2007 as against Rs 480.53 crore during the previous quarter ended December 2006.

For the full year, net profit rose 41.39% to Rs 218.43 crore in the year ended December 2007 as against Rs 154.49 crore during the previous year ended December 2006. Sales rose 7.75% to Rs 1888.26 crore in the year ended December 2007 as against Rs 1752.41 crore during the previous year ended December 2006.

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