RIL strikes gas again in Mahanadi basin
Reliance Industries has made its 8th gas discovery in the Mahanadi basin, reports CNBC-TV18. The company is evaluating commercial viability of the new gas find. The gas find shows potential for more hydrocarbon in the NEC-25 block.
Tuesday, February 26, 2008
Differential pricing behind Rly turnaround: Sudhir Kumar
| Differential pricing behind Rly turnaround: Sudhir Kumar |
Excerpts from CNBC-TV18’s exclusive interview with Sudhir Kumar: Q: The Minister is known as a turnaround artist. Shall we call you a makeover artist? A: It is combination of the two and the 1.4 million employees, which are leading this turnaround. Q: The Minister was waxing eloquent in Parliament about improving railway finances. The cash surplus before dividend has improved by about Rs 4,000 crore. That is the difference between the Budget estimate and the revised estimate. Could not some of this have been passed onto freight suppliers? A: The money has to come from somewhere. So, if it is coming from freight suppliers, it is coming from higher volumes, not higher prices. Higher prices are contributing only a bit of it. But most of it is coming from higher volumes. Nobody is unhappy about this payment because we are carrying their goods and passengers. Q: I had a discussion before the Budget and steel users were particularly unhappy. The number of transfers have comedown in some cases and rates have been reduced. But to a combination of surcharges and other means, the yield per million tonne has actually increased from Rs 55 crore per million tonne, about three years ago, to about Rs 60 crore per million tonne now. Are you actually earning more tonne for tonne? A: If you compare freight rates of 1997 for steel with the freight rates of 2008, those rates are lower. Rates of today are lower than 1997. But rates have gone up in the transportation of iron ore. We have levied 60% surcharge on transportation of iron ore to ports, which is going to various other countries. The iron ore market is booming across the globe. We are also enjoying a piece of the big pie. Q: Even steel producers have been hit hard by the surcharge because you charge the surcharge for the busy season. But steel producers are saying that the whole year is a busy season for them and there is no such thing as a lean season. Don’t they enjoy any discount? A: The lean season is there in every single commodity. We give lean season discount from the month of July to September. Many steel producers have availed of that discount. But now, they also have to pay a surcharge during peak season, when there is so much shortage of wagons. So, this dynamic and differential pricing policy is the foundation of this turnaround. Q: The differential pricing policy is resulting in the yield per million tonne rising to Rs 62 crore in the coming year 2008-2009 versus Rs 60 crore this year. So, isn’t this increase that the customers pay inflationary? A: Yield per million tonne is a function of so many variables. Price is one variable and another variable is the lead of the traffic. The third variable is the composition of that traffic, whether we are carrying high rated commodities or low rated commodities. So, it is not correct to say that yield is improving just because of price. Yield is improving because this year my lead of traffic has gone up by about 2% during the last two months. Q: Could you tell us which are the commodities that will see a reduction in freight rates? A: For petrol and diesel, freight rates will come down by 5%. During the last three years, we have reduced their rates by 17%. Rates for fly ash will come down by 14%. Earlier, if people were booking piecemeal traffic, some traffic of white good or non-white good, cement and sugar commodities, which have not been specified in the schedule, they would have to pay the highest freight rate that is class-210. Now, class-210 has become class-150 for covered wagons and open wagons, class-180 for steel wagons, BRN wagons and class-200 for tank wagons. Q: Which are the commodities that would benefit? A: All commodities except 16 commodities specified in the freight tariff schedule. Q: What are the main ones among these 16? A: We have specified 16 commodities in our freight tariff schedule. So, their rates are given. These are freight-all-kinds rates, which will apply to all commodities other than these 16 commodities. Earlier, if you are carrying other than these 16 commodities, you have to pay class-210. Now, you will have to pay class-150 in a covered train, class-160 in an open train, class-180 in a BRN train and class-200 in a tank train. Q: Are cement companies clear beneficiaries? A: Absolutely. Q: The 5% reduction in freight for petrol and diesel is likely to benefit the oil companies and not the consumers, isn’t it? A: That is not for us to decide. We give the benefit to somebody who books traffic to us. Whether he will pass it on to the consumers or not will be determined by the market forces and the government. Q: Your improvement in railway finances could have been shared with the freight users. Now my question is that you have given 5% discount on sleeper classes. Now, this is a sector that is losing. Why was discountgiven on a losing sector? A: This story of turnaround has been written by making railways profitable and by making it popular among the masses. So, this is a story of blending commercial opportunity with the social commitments of a public utility. That is what is driving this turnaround. So, if we are earning USD 6.5 billion better than the best of Fortune 500 companies, we must share some of it with the common man of India. Q: Even though your operating ratio is going to deteriorate from 76.3% this year, according to revised estimates, to 81.4% next year? A: This is a very superficial conclusion. In last to last year, we promised deterioration by half a percent from 83% to 84%. Last year, we promised 79% instead of 78%. But we delivered 76% this year. You wait for the whole year and see our performance. But do not forget that next year we will see implementation of the Sixth Pay Commission, which will impose a heavy burden on railways of Rs 5,000 crore. Q: Is it all the more reason for being prudent and not giving discounts? A: Wait a while and see how we face this Pay Commission and how we come out with our results in next year. Q: The annual carrying capacity of the railways has improved by about 40% now than when Lalu Yadav took over in 2004 and over the next four-years, it is going to increase by another 40% and you are going to ensure that the railways are going to carry 1,100 million tonnes of cargo in 2012 by reducing the tier weight of wagons by increasing their capacity by lengthening the racks and also by investing in rail capacity. Now where is this money going to come from? A: Now we have drafted a plan for about USD 60 billion over the next five-years, more than 80% of it will be funded by railways internal generation and market borrowings. Some of it will be funded by budgetary support and another sizable portion of it will be funded by public-private partnership projects. So believe me, money is not a constraint. The constraint is in our capacity to spend and we will spend. Our annual plan size has gone up by about 3 times during the last four-years and we want to double it again over the next four-years. China was investing in the 90s at about USD 7-8 billion per annum, now we are investing about USD 11-12 billion per annum. So we have to match China in terms of our capacity augmentation, in terms of modernization, upgradation of railways and in terms of providing world-class facilities to our customers. Q: But isn’t there a limit to how much you can push the system? How much you can tweak the system without actually expanding it? A: We are expanding at a much-much larger pace. Earlier railways were building 800 Km of broad-gauge line in a year. This year we did 2,300 Km. Next year we will do 3,500 Km, so our expansion has gone up by about four times. Wagon production has gone up from 6,000 wagons a year to 25,000 wagons a year. Loco production has gone up from 160 locos a year to 600 locos a year. We are investing the hard earned money for the expansion of railways and for the modernization of the railways. Q: No, I am not under any mistake in impression because the Railway Minister himself has said that the 20,000 Km of railway lines will yield 75% of your revenues, these lines are working to 100% capacity. So how can you get them to deliver more? A: We are installing intermediate block signaling. This work is going to be completed by March 2009. This will increase the capacity by about 15% on the high-density network of 20,000 route Km. Now this is for the next one-year. Then we are going to install automatic block signaling over this entire high-density network, wherever it is feasible and that will augment the capacity by another 20%. Q: So in other words you are saying that there is considerable slack in the system even now? A: Absolutely, there are so many low hanging fruits to be plucked. Q: The plan size for the 11th plan is Rs 2,50,000 crore and you are saying that through public-private partnership, you intend to gain about Rs 1 lakh crore. Now we find with the railways that they are not willing to let go control. When you are not willing to let go control, why should people invest? A: That is not correct. Last year we privatized running of container trains by private parties and you see the response. 16 persons have become our partners till date and this year, they will be contributing about 4 million tonnes of container traffic, hopefully next year it will go to 10 million tonnes. Q: Now, they are no container operators, there are actually terminal operators, the operations are done by the Railways? A: The Railways will always do the basic operation of haulage. Now, the entire operation of booking traffic, aggregating it, putting it in the train, taking delivery, and then disaggregating and distributing it to the consumers has gone out of Railways. This is what we mean by door-to-door solution to customers. We are performing the role of a hauler and they are servicing the role of a door-to-door logistic service provider. Q: There has been some convoluted way of calculating the reduction in A/C fares or the relativity index. Could you tell us about some of the classes, which will actually see a benefit? A: Earlier, the relativity between second-class and A/C fares were 1:14. So, if the second-class fare is Rs 10, the A/C fare is Rs 140. That was the difference. We had decided to bridge this gap. This relativity shouldn’t be more than 10. Since the last two years, we have reduced First A/C fares by 24%. This year again it has been reduced by 7%. Overall, the relativity has come down from Rs 1,440, all the way to Rs 1,000. There is absolutely no jugglery in this reduction of nearly 31%. The 31% reduction in prices is done not out of charity but because of the stiff competition we are facing from low cost airlines. Since we have introduced a dynamic and differential tariff policy, this reduction will be less during the peak season and popular trains. The reduction will be a full 31% during the lean season and on unpopular trains. Nonetheless, even in the peak season and popular trains, reduction over the last three years is over 24%. Q: And this benefit is going to be available immediately, one doesn’t have to wait for some new coaches to be introduced? A: No, you will have to wait till April 1. Q: The minister made a curious announcement in Parliament. He spoke about starting work on Kolkata-Delhi, Delhi-Mumbai freight corridors but the Budget highlights don’t mention it. He has said it in passing. Is the rail serious about it? I thought he was going to leave a monument to remember him by in the closing years of his tenure? A: This is our most ambitious project. The minister made a very emphatic statement that we will start actual construction of the dedicated freight corridor during the year 2008-09. Allocations have been made. The process of land acquisition has begun. By the first half of next year, people will see work happening on the ground on both these corridors. Q: Who is going to finance it, the Japanese? A: Don’t forget, we are earning Rs 25,000 crore per annum. Today, the Railways are a grossly under leveraged company. I can leverage Rs 25,000 crore to raise any kind of money from the market. We welcome Japanese assistance and assistance from other countries. But make no mistake, we can fund it from our own resources. Q: The Japanese investment is not going to come for the Kolkata-Delhi Corridor? A: We can fund both the corridors from our own resources, but we welcome Japanese assistance. It is coming for the Western corridor. |
Sudhir KumarIPO plans afoot at HDFC Standard Life
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Insurance company Stocks impacted by the Railway Budget
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Rail Budget '08 Vs '07: What's new?
| Rail Budget '08 Vs '07: What's new? |
Lalu Yadav, in his speech addressed to the Lok Sabha, informed that the railways had a cash surplus of Rs 25000 crore in FY08 with an operating ratio of 76%.
Like all other Budget, this Budget was also pro people. Sleeper fares were cut by 5% as compared to last year’s reduction of 4%. AC first class saw a cut by 7%, AC- 2Tier class by 4%, AC-3Tier by 2% as against last year's 3%, 2% and 4% respectively.
Initiatives for improvement in freight business: The industry had been wishing for more trains for common man and coach trains working towards more freight corridors. Freight loading revenue for April-December was at Rs 34,700 crore. In his 2007-08 Rail Budget speech, the Railway Minister had targeted the Freight loading which was 557million tonne in 07-08 is expected to be 790 million tonne in 08-09. The target is 310 million tonnes of additional freight loading in the next 3 years. There will also be Rs 75000 crore in next 7 years to further develop saturated transportation lines. Facilitating travel: In the last Budget, the railway minister has emphasised on convenient, comfortable and high capacity new design passenger coaches. This year, he announced the introduction of low maintenance and more comfortable stainless steel coaches from 2010. All Rajdhani Trains will have new coaches by 2010 whereas Shatabdi trains will have new coaches by 2011. Around Rs 250,000 crore will be invested in next 5 years for passenger facilities. As against 32 new trains and 8 Garib Raths last year, this year saw an introduction of 53 new passenger trains and 10 new Garib Raths from FY08-09. Lifts & elevators will be provided at 50 big stations for convenience of senior citizens. Last Budget also saw some facilities for senior citizens like reservation of lower berths exclusively for them. While 60 years and older passengers get 30% discount, female above 60 will get 50% discount.
Initiatives in passenger business:
Looking at growing network of mobile phones, the railways will look at leveraging telecom boom for ticketing and trials for the same has already started. There will be an increase in ticketing counters to 15,000 in 2 years from the current 3,000 now. The target for ATVM machines has been kept same as last year at 6000 machines in next 2 years. CCTVS and metal detectors will be put up at all stations as against only the sensitive stations.About Rs 4000 crore will be spent on 36000 coaches for green toilets in next 5-year plan.
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“Mungeri Lal’s dreams have come true” said Railway Minister REC IPO subscribed 28 times
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Future Ventures files IPO papers with Sebi
Future Group company, Future Ventures has filed DRHP for IPO with the market regulator, Sebi. The company will issue 373.6 crore shares of Rs 10 face value through 100% book built issue.
It is planning to raise Rs 3736 crore. Net issue to the public will be of 266.07 crore equity shares and reservation of upto 25 crore equity shares for eligible shareholders of Pantaloon Retail (India).
The net issue would constitute 66.52% of the post issue paid up capital of the Company.
REC fixes issue price at Rs 105/sh
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L&T Infotech listing deferred to 2009
L&T Infotech listing deferred to 2009
Indian engineering firm Larsen & Toubro Monday said it has rescheduled the initial public offering of unit L&T Infotech to 2009, reports CNBC-TV18 quoting NW18.
"We are not in a hurry and we will not get the required valuation in the present market conditions. So we have postponed it," Chairman and Managing Director A M Naik told reporters on the sidelines of a company event.
The IPO was originally scheduled for late this year, 2008.
Naik said also that the likely slowdown in the global economy isn't worrying the company's infotech division. "We are growing faster than any other mid-sized software company," he said.
Indian engineering firm Larsen & Toubro Monday said it has rescheduled the initial public offering of unit L&T Infotech to 2009, reports CNBC-TV18 quoting NW18.
"We are not in a hurry and we will not get the required valuation in the present market conditions. So we have postponed it," Chairman and Managing Director A M Naik told reporters on the sidelines of a company event.
The IPO was originally scheduled for late this year, 2008.
Naik said also that the likely slowdown in the global economy isn't worrying the company's infotech division. "We are growing faster than any other mid-sized software company," he said.
Same patterns in Bang Overseas, Tulsi Ext stake-holding
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HDFC Mutual Fund buys 32.74 lakh shrs of IRB Infra
HDFC Mutual Fund buys 32.74 lakh shrs of IRB Infra
IRB Infrastructure has closed the day at Rs 189.65, which is just above its issue price of Rs 185, up 2.51% or Rs 4.65, with volumes of 2,25,21,617 shares. The stock has witnessed one bulk deal on the NSE. HDFC Mutual Fund has bought 32.74 lakh shares.
It touched a high/low of Rs 200 and Rs 168 during the day. The turnover was at Rs 416 crore on the NSE.
IRB Infrastructure had entered the capital markets on January 31, 2008 with a public issue of 5,10,57,666 equity shares of Rs 10 each through 100% book building process and with a price band of Rs 185 to Rs 220.
IRB Infrastructure has closed the day at Rs 189.65, which is just above its issue price of Rs 185, up 2.51% or Rs 4.65, with volumes of 2,25,21,617 shares. The stock has witnessed one bulk deal on the NSE. HDFC Mutual Fund has bought 32.74 lakh shares.
It touched a high/low of Rs 200 and Rs 168 during the day. The turnover was at Rs 416 crore on the NSE.
IRB Infrastructure had entered the capital markets on January 31, 2008 with a public issue of 5,10,57,666 equity shares of Rs 10 each through 100% book building process and with a price band of Rs 185 to Rs 220.
Tulsi Extrusions witnesses 163 bulk deals
Tulsi Extrusions witnesses 163 bulk deals
Tulsi Extrusions, a manufacturer of PVC pipes, has jumped to a new high of Rs 143.45 before closing the day at Rs 139.50, up by Rs 54.5 or 64.12% over its offer price of Rs 85 yesterday. It traded with volumes of 3,62,33,746 shares on the BSE.
The stock opened at Rs 93.45, which is its intraday low and remained above Rs 100 through the day. The BSE and NSE volume is nearly six times the total outstanding shares (1,24,95,100).
The stock has witnessed 163 bulk deals on the bourses including 138 on the NSE and 25 on BSE.
Tulsi Extrusions, a manufacturer of PVC pipes, has jumped to a new high of Rs 143.45 before closing the day at Rs 139.50, up by Rs 54.5 or 64.12% over its offer price of Rs 85 yesterday. It traded with volumes of 3,62,33,746 shares on the BSE.
The stock opened at Rs 93.45, which is its intraday low and remained above Rs 100 through the day. The BSE and NSE volume is nearly six times the total outstanding shares (1,24,95,100).
The stock has witnessed 163 bulk deals on the bourses including 138 on the NSE and 25 on BSE.
Siemens Bonus shares 1:1
Siemens Ltd has informed BSE that March 03, 2008 has been fixed as the Record Date for determining the entitlement of the Members of the Company for the purpose of issue and allotment of Bonus Shares in the ratio of 1:1 (i.e. one Bonus Share for every share held).
Siemens Ltd has informed BSE that the members at the 50th Annual General Meeting (AGM) of the Company held on January 31, 2008, inter alia, have accorded the following: 1. Adoption of the audited Profit & Loss Account for the year ended on September 30, 2007 and the Balance Sheet as at that date, together with the Directors' Report and the Auditors' Report thereon. 2. Declaration of Dividend of Rs 4.80 per Equity Share (240%) amounting to Rs 809,184,480 on the Paid-up Equity Share Capital of Rs 337,160,200 comprising of 33,716,020 Equity Shares of Rs 2 each, as per provision already made in the Accounts for the year, for the year ended on September 30, 2007. 3. Re-appointment of Mr. Narendra J Jhaveri, Mr. Keki B Dadiseth & Mr. Pradip V Nayak as Directors of the Company, liable to retire by rotation. 4. Re-appointment of BSR & Co., as the Auditors of the Company to hold Office from the conclusion of this 50th Annual General Meeting to the conclusion of the next i.e. 51st Annual General Meeting of the Company, on remuneration, terms & conditions. 5. Re-classification of the entire Preference Share Capital of Rs 150,00,00,000 comprising of 15,00,00,000 Preference Shares of Rs 10 each in the Authorized Share Capital as Equity Share Capital and the same be merged with the existing Equity Share Capital & consequential amendments in the Memorandum & Articles of the Association of the Company. 6. For the issue of Bonus Shares in the proportion of 1:1 (i.e. One new Equity Share for every existing Equity Share) and issue and allot new 16,85,80,100 Equity Shares of Rs 2 each fully paid-up amounting to Rs 33,71,60,200 (Rupees Thirty Three Crore Seventy One Lakh Sixty Thousand and Two Hundred only) by way of capitalization out of the sum standing to the credit of Securities Premium Account of the Company to those Members holding Equity Shares of the Company on the record date to be hereafter fixed by the Board of Directors for this purpose, subject to necessary provisions & approvals. 7. Appointment of Mr. Vijay V Paranjape as a Director of the Company, liable to retire by rotation. 8. Appointment of Mr. Vijay V Paranjape as a Whole-time Director of the Company with effect from February 01, 2007 on remuneration, terms & conditions. 9. Appointment of Mr. Vilas B Parulekar as a Director of the Company, liable to retire by rotation. 10. Appointment of Mr. Vilas B Parulekar as a Whole-time Director of the Company with effect from February 01, 2007 to September 30, 2009, on remuneration, terms & conditions. 11. Re-appointment of Mr. Juergen Schubert as the Managing Director of the Company with effect from October 01, 2007 to December 31, 2007 on remuneration, terms & conditions. 12. Appointment of Dr. Armin Bruck as a Director of the Company, liable to retire by rotation. 13. Appointment of Dr. Armin Bruck as a Whole-time Director of the Company with effect from October 01, 2007 to December 31, 2007, and as the Managing Director of the Company with effect from January 01, 2008 to September 30, 2012, on remuneration, terms & conditions. 14. Increase in the remuneration payable to Mr. Patrick de Royer, Executive Director, with effect from October 01, 2007 for his remaining tenure. 15. Re-appointment of Mr. K R Upili, as a Whole-time Director of the Company for a period of up to six months with effect from January 27, 2008 on remuneration, terms & conditions. 16. Appointment of Ms. Mukta Paranjape, daughter of Mr. Vijay V Paranjape, Whole-time Director, to hold and continue to hold an office or place of profit as 'Graduate Trainee Engineer' in the Company with effect from July 16, 2007, on remuneration, terms & conditions.
Siemens Ltd has informed BSE that the members at the 50th Annual General Meeting (AGM) of the Company held on January 31, 2008, inter alia, have accorded the following: 1. Adoption of the audited Profit & Loss Account for the year ended on September 30, 2007 and the Balance Sheet as at that date, together with the Directors' Report and the Auditors' Report thereon. 2. Declaration of Dividend of Rs 4.80 per Equity Share (240%) amounting to Rs 809,184,480 on the Paid-up Equity Share Capital of Rs 337,160,200 comprising of 33,716,020 Equity Shares of Rs 2 each, as per provision already made in the Accounts for the year, for the year ended on September 30, 2007. 3. Re-appointment of Mr. Narendra J Jhaveri, Mr. Keki B Dadiseth & Mr. Pradip V Nayak as Directors of the Company, liable to retire by rotation. 4. Re-appointment of BSR & Co., as the Auditors of the Company to hold Office from the conclusion of this 50th Annual General Meeting to the conclusion of the next i.e. 51st Annual General Meeting of the Company, on remuneration, terms & conditions. 5. Re-classification of the entire Preference Share Capital of Rs 150,00,00,000 comprising of 15,00,00,000 Preference Shares of Rs 10 each in the Authorized Share Capital as Equity Share Capital and the same be merged with the existing Equity Share Capital & consequential amendments in the Memorandum & Articles of the Association of the Company. 6. For the issue of Bonus Shares in the proportion of 1:1 (i.e. One new Equity Share for every existing Equity Share) and issue and allot new 16,85,80,100 Equity Shares of Rs 2 each fully paid-up amounting to Rs 33,71,60,200 (Rupees Thirty Three Crore Seventy One Lakh Sixty Thousand and Two Hundred only) by way of capitalization out of the sum standing to the credit of Securities Premium Account of the Company to those Members holding Equity Shares of the Company on the record date to be hereafter fixed by the Board of Directors for this purpose, subject to necessary provisions & approvals. 7. Appointment of Mr. Vijay V Paranjape as a Director of the Company, liable to retire by rotation. 8. Appointment of Mr. Vijay V Paranjape as a Whole-time Director of the Company with effect from February 01, 2007 on remuneration, terms & conditions. 9. Appointment of Mr. Vilas B Parulekar as a Director of the Company, liable to retire by rotation. 10. Appointment of Mr. Vilas B Parulekar as a Whole-time Director of the Company with effect from February 01, 2007 to September 30, 2009, on remuneration, terms & conditions. 11. Re-appointment of Mr. Juergen Schubert as the Managing Director of the Company with effect from October 01, 2007 to December 31, 2007 on remuneration, terms & conditions. 12. Appointment of Dr. Armin Bruck as a Director of the Company, liable to retire by rotation. 13. Appointment of Dr. Armin Bruck as a Whole-time Director of the Company with effect from October 01, 2007 to December 31, 2007, and as the Managing Director of the Company with effect from January 01, 2008 to September 30, 2012, on remuneration, terms & conditions. 14. Increase in the remuneration payable to Mr. Patrick de Royer, Executive Director, with effect from October 01, 2007 for his remaining tenure. 15. Re-appointment of Mr. K R Upili, as a Whole-time Director of the Company for a period of up to six months with effect from January 27, 2008 on remuneration, terms & conditions. 16. Appointment of Ms. Mukta Paranjape, daughter of Mr. Vijay V Paranjape, Whole-time Director, to hold and continue to hold an office or place of profit as 'Graduate Trainee Engineer' in the Company with effect from July 16, 2007, on remuneration, terms & conditions.
Walchandnagar Industries bonus shares
Walchandnagar Industries Ltd has informed BSE that a meeting of the Allotment Committee of the Board of Directors of the Company will be held on March 04, 2008 to allot Bonus Equity Shares in the ratio of 1:1 as authorized by the Shareholders in the Annual General Meeting of the Company held on January 30, 2008.
Indian Hotels Company Ex-rights: 1:5 & 1: 10
Indian Hotels Company Ex-rights: 1:5 & 1: 10 NCD(BSE: 500850 | NSE: INDHOTEL | ISIN: INE053A01029)
CMP BSE
126.10 1.35 (1.08%)
: Feb 26, 16:02
CMP NSE
126.10 1.25 (1%)
NSE : Feb 26, 15:57
Indian Hotels Company has informed BSE that February 28, 2008 has been fixed as the Record Date for deciding the entitlement of Rights Issue of equity shares and 6% Non Convertible Debentures with detachable warrants of the Company.
Rights Issue - 1:5 (1 share for every 5 shares held on the record date. Rs 70 per share (including Rs 69 premium). Full amount of Rs 70 per share is payable on application.
Corporate Notices
Source: NSE - Indian Hotels Co. Ltd. had informed the Exchange regarding simultaneous but unlinked Rights Issue of equity shares @ Rs.70/- per share and 6% Non Convertible debentures with detachable warrants of the Company. Now the Company has informed the exchange that "The Board of Directors at its meeting held on January 28, 2008 has decided the exercise price of a warrant into share as Rs.150/-. The same has been taken on record by the Committee of Directors constituted for the Rights Issue on January 29, 2008. The warrant holder will have to opt for the conversion of warrant into shares after payment of conversion price within 12 months from the date of allotment."
CMP BSE
126.10 1.35 (1.08%)
: Feb 26, 16:02
CMP NSE
126.10 1.25 (1%)
NSE : Feb 26, 15:57
Indian Hotels Company has informed BSE that February 28, 2008 has been fixed as the Record Date for deciding the entitlement of Rights Issue of equity shares and 6% Non Convertible Debentures with detachable warrants of the Company.
Rights Issue - 1:5 (1 share for every 5 shares held on the record date. Rs 70 per share (including Rs 69 premium). Full amount of Rs 70 per share is payable on application.
Corporate Notices
Source: NSE - Indian Hotels Co. Ltd. had informed the Exchange regarding simultaneous but unlinked Rights Issue of equity shares @ Rs.70/- per share and 6% Non Convertible debentures with detachable warrants of the Company. Now the Company has informed the exchange that "The Board of Directors at its meeting held on January 28, 2008 has decided the exercise price of a warrant into share as Rs.150/-. The same has been taken on record by the Committee of Directors constituted for the Rights Issue on January 29, 2008. The warrant holder will have to opt for the conversion of warrant into shares after payment of conversion price within 12 months from the date of allotment."
Thursday, February 21, 2008
Promoters of small & mid cap firms take advantage of market meltdown
15 Feb, 2008, 1210 hrs IST,Vivek Sinha, TNN
NEW DELHI: It's not just the portfolio investors who were bottom-fishing in the market. Promoters of a bunch of mid and small-cap firms have taken advantage of the market meltdown to buy shares of their own companies from the open market through the creeping acquisition route.
Some companies whose promoter groups have bought shares in the last fortnight when the market crashed include NIIT, Maharashtra Seamless, Gujarat NRE Coke, Uflex, KRBL, Hitech Gear, Birla VXL and Jyoti Structures, among others.
Promoters raise their equity stake for various reasons. Typically for shoring up equity holding or infusing funds into the company, the owners go for preferential allotment of shares or convertible instruments such as warrants.
The creeping acquisition route of buying shares, for which there is a mandatory ceiling in a particular year, entails buying shares from the secondary market is typically done when promoters feel the price in the market is low enough to justify such a purchase. Some firms with healthy cash reserves even go for equity buybacks which in turn tends to increase promoter holding while repricing undervalued stock.
According to stock market disclosures the firms have bought shares of varying proportions in the open market. For instance, one of the promoter group entity of NIIT bought 0.27% stake from the market. The transaction was done at a price 15-20% cheaper than its recent highs.
NEW DELHI: It's not just the portfolio investors who were bottom-fishing in the market. Promoters of a bunch of mid and small-cap firms have taken advantage of the market meltdown to buy shares of their own companies from the open market through the creeping acquisition route.
Some companies whose promoter groups have bought shares in the last fortnight when the market crashed include NIIT, Maharashtra Seamless, Gujarat NRE Coke, Uflex, KRBL, Hitech Gear, Birla VXL and Jyoti Structures, among others.
Promoters raise their equity stake for various reasons. Typically for shoring up equity holding or infusing funds into the company, the owners go for preferential allotment of shares or convertible instruments such as warrants.
The creeping acquisition route of buying shares, for which there is a mandatory ceiling in a particular year, entails buying shares from the secondary market is typically done when promoters feel the price in the market is low enough to justify such a purchase. Some firms with healthy cash reserves even go for equity buybacks which in turn tends to increase promoter holding while repricing undervalued stock.
According to stock market disclosures the firms have bought shares of varying proportions in the open market. For instance, one of the promoter group entity of NIIT bought 0.27% stake from the market. The transaction was done at a price 15-20% cheaper than its recent highs.
REC IPO subscribed 2.73 times
REC IPO subscribed 2.73 times
MUMBAI: The maiden public offer of state-run power firm REC got subscribed nearly three times of the issue size on its second day on Wednesday.
The REC IPO saw bids pouring in for over 42.60 crore equity shares on the second day of the IPO as against a total 15.61 crore shares on offer. The four-day book building process would be complete on February 22.
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.
While the portion reserved for non-institutional and retail investors remained under-subscribed. However, no bids have so far come from the mutual funds.
REC is looking to raise about Rs 1,640 crore through sale of equity shares in a price band of Rs 90-105. The mini-ratna company aims to increase its annual disbursement to Rs 1,00,000-1,20,000 crore over the next five years to garner 20 per cent market share in power sector financing, whose size has been pegged at Rs 6,00,000 crore in the 11th Plan Period.
Further, the IPO of electrical equipment maker V-Guard got subscribed 1.36 times till the third day of offer today. According to the latest data available on the NSE, the issue received bids for over 1.08 crore shares against 80 lakh shares on offer.
Portion reserved for QIBs got subscribed 1.65 times and the non-institutional investors section got bids 1.76 times.
The price band for the issue, which would close tomorrow, has been fixed between Rs 80 and 85. The Kerala-based company plans to raise about Rs 70 crore from the capital market.
The public issue was aimed at raising funds to augment production capacity, enhance the R&D facilities and to strengthen the market presence of V-Guard products.
MUMBAI: The maiden public offer of state-run power firm REC got subscribed nearly three times of the issue size on its second day on Wednesday.
The REC IPO saw bids pouring in for over 42.60 crore equity shares on the second day of the IPO as against a total 15.61 crore shares on offer. The four-day book building process would be complete on February 22.
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.
While the portion reserved for non-institutional and retail investors remained under-subscribed. However, no bids have so far come from the mutual funds.
REC is looking to raise about Rs 1,640 crore through sale of equity shares in a price band of Rs 90-105. The mini-ratna company aims to increase its annual disbursement to Rs 1,00,000-1,20,000 crore over the next five years to garner 20 per cent market share in power sector financing, whose size has been pegged at Rs 6,00,000 crore in the 11th Plan Period.
Further, the IPO of electrical equipment maker V-Guard got subscribed 1.36 times till the third day of offer today. According to the latest data available on the NSE, the issue received bids for over 1.08 crore shares against 80 lakh shares on offer.
Portion reserved for QIBs got subscribed 1.65 times and the non-institutional investors section got bids 1.76 times.
The price band for the issue, which would close tomorrow, has been fixed between Rs 80 and 85. The Kerala-based company plans to raise about Rs 70 crore from the capital market.
The public issue was aimed at raising funds to augment production capacity, enhance the R&D facilities and to strengthen the market presence of V-Guard products.
Wednesday, February 20, 2008
Realty may witness a deep correction
Developers have been increasingly willing to negotiate on terms and conditions, including controls, percentage of divestment and valuations, for SPV-level investments," Sourav Goswami, managing director of Walton Street Capital India — a leading US based real estate fund — said.
Given the investor apathy for IPOs, developers may have to knock the doors of private equity (PE) investors. Nitesh Estates chairman Nitesh Shetty said, "On a fair valuations, the PE firms are keen to struck deal with the developers. Properties with clear titles, right location and time of delivery are the crucial parameters of the PE funds. If these terms met, valuations may not a issue." Nitesh Estates had struck three large scale PE deals in the past two years.
"Global uncertainty on the capital flows would also have its impact on the investment scenario in the Indian market. This would in turn affect deal values and values in the real estate sector in the short term attest," Balaji Rao, India head of Starwood Capital — one of the largest real estate and hospitality fund in the US — said.
Reliance Power asks shareholders to make balance payment
MUMBAI: Anil Ambani Group company Reliance Power on Wednesday said it has asked shareholders to make balance payment by February 26 on shares alloted to them in the IPO to be eligible for bonus shares.
"The balance amount was due on allotment and a notice for the same has been sent to shareholders to make the balance payment on or before February 26," Reliance Power said in a filing to the Bombay Stock Exchange.
By issuing the notice, the company has complied with SEBI guidelines, and all shares have been made fully paid up, Reliance Power added.
Reliance Power's IPO had offered a discount to retail investors, and an option of staggered payment to all segments.
Qualified institutional buyers were allowed to pay only 10 per cent initially, while high net worth individuals and retail investors were permitted to pay only 25 per cent of the total cost as initial payment. The remaining amount was to be paid after allotment of shares.
On February 17, the company had announced it was planning a bonus issue to all shareholders, except promoters, in a bid to compensate them for the losses they suffered on the day of listing of the scrip. The Reliance Power Board is scheduled to meet on February 24 to consider the issue.
"The balance amount was due on allotment and a notice for the same has been sent to shareholders to make the balance payment on or before February 26," Reliance Power said in a filing to the Bombay Stock Exchange.
By issuing the notice, the company has complied with SEBI guidelines, and all shares have been made fully paid up, Reliance Power added.
Reliance Power's IPO had offered a discount to retail investors, and an option of staggered payment to all segments.
Qualified institutional buyers were allowed to pay only 10 per cent initially, while high net worth individuals and retail investors were permitted to pay only 25 per cent of the total cost as initial payment. The remaining amount was to be paid after allotment of shares.
On February 17, the company had announced it was planning a bonus issue to all shareholders, except promoters, in a bid to compensate them for the losses they suffered on the day of listing of the scrip. The Reliance Power Board is scheduled to meet on February 24 to consider the issue.
workers
Indian workers to get average salary hike of 15.2%: survey
India Infoline News Service / Mumbai Feb 19, 2008 16:13
Hewitt Associates forecasts a very gradual decrease in salary increases and a stabilization of increases to a range of 9-10% by 2012
Employees in India will received an average salary increase of 15.2% in 2008, making this the fifth consecutive year that salaries have demonstrated double-digit growth in te country, says the 12th annual Salary Increase survey conducted by Hewitt Associates, a global human resources services firm. Last year, Indian employees got an annual hike of 15.1% in 2007 on top of the 14.4% jump in 2006, the study shows.
"The struggle for talent and sustainability is large and rapidly growing in India. Employees are increasingly looking for great career opportunities and are actively being pursued by other organizations offering extremely attractive opportunities and packages. Hence, organizations are using compensation as a strategic lever in attracting, retaining and motivating talent," says Sandeep Chaudhary, leader of Hewitt's Rewards Consulting practice in India.
While salary increases are largely dictated by talent demand and supply, Hewitt Associates forecasts a very gradual decrease in salary increases and a stabilization of increases to a range of 9-10% by 2012. Factors influencing stabilization include: by reducing the talent skill gap; changing the talent model; making training vital; and re-engineering talent.
In the late 1990s, senior and top management enjoyed the highest salary increases across all surveyed employee groups. However, since the year 2000, staff members at the junior manager/professional/supervisor levels have received the highest increase, says the Hewitt Associates survey.
Increasingly, middle management salary increases have also started creeping up. This is largely as a result of a shortage of managerial and technical talent in India, the survey adds.
Hewitt Associates' research indicates that India faces a shortage of leadership talent at 26%. However, the country also faces a higher shortage of specialist and technical skills.
Though the fundamentals of the Indian economy are strong, the recent stock market fall and the strengthening rupee herald uncertainty. For India, the immediate implications of an economic slowdown in the US is not worrying, but this is getting organizations to look at "productivity" as a single most important determinant of long-run prospects.
The two fastest growing cost components in India are real estate and talent, and information technology and outsourcing companies, which have more than 75% of production regulated by the US economy, are concerned about how to manage these elements.
"Salary increases in the technology and outsourcing sectors have stabilized since 2004. Even though they are still amongst the highest in Asia Pacific, they have been stabilizing between 13 to 14%, which is not a variation of concern. This is primarily because the salary levels in these two industries are already fairly competitive. Also, with the developing nature of talent within the industry, there is less reliance on the mature or parent industry," says Chaudhary.
The study also reveals that an increasing number of organizations are plagued by attrition and retention issues. Attrition rate have reached an all time high in India with the Insurance industry reporting the highest attrition rates at 35.2%. This is followed by IT enabled services at 28.9% and Hospitality/Restaurants industry at 27.1%. "External equity of compensation,' 'role stagnation' and 'limited career opportunities' are the most cited reasons for attrition.
"In order to retain employees, organizations must architect a compelling employer value proposition. They have to reduce their current reliance on Total Cash and move to a Total Rewards experience, where the focus is on relational rewards," says Chaudhary.
Currently, organizations are trying to retain talent by keeping a closer eye on market movements. A big part of this involves frequent reviews of employee salaries. Growing number of organizations are now benchmarking salaries against best-in-class companies, leaving behind the traditional approach of benchmarking against best-in-industry organizations.
More than 75% of participating organizations review their markets annually, using multiple sources of information to benchmark compensation, such as sponsored surveys, published surveys and information from personal contacts. While 88.7% of participating organizations continue to practice industry benchmarking, 35% are now benchmarking against best-in-class companies.
This follow-the-leader approach has tremendous cost implications and is impacting the productivity of most organizations. In a cost-conscious environment organizations will soon have to look beyond compensation to retain talent.
While organizations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity.
The study also highlights that the use of variable pay as a strategic lever continues to be an important means of attracting and retaining talent, with 95% of respondents saying they have variable pay plans in 2007.
According to the study, the actual variable spending as a%age of payroll was highest for top executives and senior management at 25% in 2007.
Hewitt's study also highlights that two prime challenges faced by organizations in implementing variable pay plans: is that payouts are viewed as entitlements by employees; and that organizations are not effective in communicating plan expectation and objectives to employees.
India Infoline News Service / Mumbai Feb 19, 2008 16:13
Hewitt Associates forecasts a very gradual decrease in salary increases and a stabilization of increases to a range of 9-10% by 2012
Employees in India will received an average salary increase of 15.2% in 2008, making this the fifth consecutive year that salaries have demonstrated double-digit growth in te country, says the 12th annual Salary Increase survey conducted by Hewitt Associates, a global human resources services firm. Last year, Indian employees got an annual hike of 15.1% in 2007 on top of the 14.4% jump in 2006, the study shows.
"The struggle for talent and sustainability is large and rapidly growing in India. Employees are increasingly looking for great career opportunities and are actively being pursued by other organizations offering extremely attractive opportunities and packages. Hence, organizations are using compensation as a strategic lever in attracting, retaining and motivating talent," says Sandeep Chaudhary, leader of Hewitt's Rewards Consulting practice in India.
While salary increases are largely dictated by talent demand and supply, Hewitt Associates forecasts a very gradual decrease in salary increases and a stabilization of increases to a range of 9-10% by 2012. Factors influencing stabilization include: by reducing the talent skill gap; changing the talent model; making training vital; and re-engineering talent.
In the late 1990s, senior and top management enjoyed the highest salary increases across all surveyed employee groups. However, since the year 2000, staff members at the junior manager/professional/supervisor levels have received the highest increase, says the Hewitt Associates survey.
Increasingly, middle management salary increases have also started creeping up. This is largely as a result of a shortage of managerial and technical talent in India, the survey adds.
Hewitt Associates' research indicates that India faces a shortage of leadership talent at 26%. However, the country also faces a higher shortage of specialist and technical skills.
Though the fundamentals of the Indian economy are strong, the recent stock market fall and the strengthening rupee herald uncertainty. For India, the immediate implications of an economic slowdown in the US is not worrying, but this is getting organizations to look at "productivity" as a single most important determinant of long-run prospects.
The two fastest growing cost components in India are real estate and talent, and information technology and outsourcing companies, which have more than 75% of production regulated by the US economy, are concerned about how to manage these elements.
"Salary increases in the technology and outsourcing sectors have stabilized since 2004. Even though they are still amongst the highest in Asia Pacific, they have been stabilizing between 13 to 14%, which is not a variation of concern. This is primarily because the salary levels in these two industries are already fairly competitive. Also, with the developing nature of talent within the industry, there is less reliance on the mature or parent industry," says Chaudhary.
The study also reveals that an increasing number of organizations are plagued by attrition and retention issues. Attrition rate have reached an all time high in India with the Insurance industry reporting the highest attrition rates at 35.2%. This is followed by IT enabled services at 28.9% and Hospitality/Restaurants industry at 27.1%. "External equity of compensation,' 'role stagnation' and 'limited career opportunities' are the most cited reasons for attrition.
"In order to retain employees, organizations must architect a compelling employer value proposition. They have to reduce their current reliance on Total Cash and move to a Total Rewards experience, where the focus is on relational rewards," says Chaudhary.
Currently, organizations are trying to retain talent by keeping a closer eye on market movements. A big part of this involves frequent reviews of employee salaries. Growing number of organizations are now benchmarking salaries against best-in-class companies, leaving behind the traditional approach of benchmarking against best-in-industry organizations.
More than 75% of participating organizations review their markets annually, using multiple sources of information to benchmark compensation, such as sponsored surveys, published surveys and information from personal contacts. While 88.7% of participating organizations continue to practice industry benchmarking, 35% are now benchmarking against best-in-class companies.
This follow-the-leader approach has tremendous cost implications and is impacting the productivity of most organizations. In a cost-conscious environment organizations will soon have to look beyond compensation to retain talent.
While organizations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity.
The study also highlights that the use of variable pay as a strategic lever continues to be an important means of attracting and retaining talent, with 95% of respondents saying they have variable pay plans in 2007.
According to the study, the actual variable spending as a%age of payroll was highest for top executives and senior management at 25% in 2007.
Hewitt's study also highlights that two prime challenges faced by organizations in implementing variable pay plans: is that payouts are viewed as entitlements by employees; and that organizations are not effective in communicating plan expectation and objectives to employees.
Securities Contracts (Regulation) Rules, 1957 (SCRR)
Based on a review, the Government has proposed to amend the Securities Contracts (Regulation) Rules, 1957 (SCRR) for both initial and continuous listing requirements of companies in stock exchanges.
The amendments proposed by the Ministry of Finance are:
(a) The standards for initial listing and continued listing may be prescribed in the SCR Rules.
(b)The standards for initial and continuous listing may be uniform, as the objective is same.
(c) The public offer envisaged at initial listing is of no consequence unless the public are actually allotted shares. The SCRR may speak in terms of allotment to public, not just public offer.
(d) As of now, the word 'public' is not defined. If 'public' means 'non-promoters' and includes FIs, FIIs, MFs, employees, NRIs/OCBs, private corporate bodies, etc., the floating stock would be insignificant. A view needs to be taken on this.
(e)For a company to be listed and continue to be listed, it must have a public stake of 25%.
(f) If for any reason, the public holding reduces below 25%, the promoters, management and company may be jointly and severally be liable to bring the public holding to 25% within 3 months, in the manner prescribed by SEBI, failing which appropriate enforcement action, including delisting, may be taken.
(g) There should not be any discrimination between a Government company and non-Government company. The powers of the stock exchange to relax any of the conditions of listing with the prior approval of SEBI in respect of a Government company needs to be withdrawn. Similarly, the powers of SEBI to relax listing requirements may be withdrawn.
A large number of shares distributed among a large number of shareholders is essential for the sustenance of a continuous market for listed securities to provide liquidity to the investors and to discover fair prices. The larger the number of shares and the number of shareholders, i.e., the larger the public float, the less is the scope for price manipulation. In order to ensure this, the securities laws prescribe initial and continuous listing requirements.
Cochin Shipyard IPO
Fully owned by Government of India, Cochin Shipyard Ltd is waiting for government approval for an IPO to help raise funds for building a new dock and meet rising demand for ships. It has submitted a proposal to the government last month
Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of India company. In the last three decades the company has emerged as a forerunner in the Indian Shipbuilding & Shiprepair industry. This yard can build and repair the largest vessels in India. It can build ships upto 1,10,000 DWT and repair ships upto 1,25,000 DWT. The yard has delivered two of India's largest double hull Aframax tankers each of 95,000 DWT . CSL has secured shipbuilding orders from internationally renowned companies from Europe & Middle East and is nominated to build the country's first indigenous Air Defence Ship.
Shipyard commenced ship repair operations in the year 1982 and has undertaken repairs of all types of ships including upgradation of ships of oil exploration industry as well as periodical lay up repairs and life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port Trust besides merchant ships of SCI & ONGC. The yard has, over the years, developed adequate capabilities to handle complex and sophisticated repair jobs.
The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian and foreign as 5th Engineers. 100 are trained every year.
Sunday, February 17, 2008
BREAKING NEWS - RPL
HI EVERONE
SO THOSE WHO DONT NO ANY THING ON RPL HERE IT IS
RPL IS NOT A SINGLE PLANT BUT SUM OF MORE THAN ONE PLANT AND ITS
FIRST PLAT IS SLATED TO BE COMPLETED IN THE MONTH OF JULY 08 .
REPORTS THAT IT IS CAPABLE OF REFINING DIRTIEST CRUDE IS ALSO TRUE.
RPL WILL BE FULLY OPERATIONAL ONLY IN 2009
FIRST TASTE OF OPERATIONAL EFFICIENCY WILL BE AVAILABLE IN QUATER
ENDING SEP 08
SO GO AHEAD AND BUY RPL FOR TGT OF 320 BY THE YEAR END
SO THOSE WHO DONT NO ANY THING ON RPL HERE IT IS
RPL IS NOT A SINGLE PLANT BUT SUM OF MORE THAN ONE PLANT AND ITS
FIRST PLAT IS SLATED TO BE COMPLETED IN THE MONTH OF JULY 08 .
REPORTS THAT IT IS CAPABLE OF REFINING DIRTIEST CRUDE IS ALSO TRUE.
RPL WILL BE FULLY OPERATIONAL ONLY IN 2009
FIRST TASTE OF OPERATIONAL EFFICIENCY WILL BE AVAILABLE IN QUATER
ENDING SEP 08
SO GO AHEAD AND BUY RPL FOR TGT OF 320 BY THE YEAR END
Reliance Power to consider bonus share
Anil Ambani group on Sunday announced to consider free bonus shares
to all non-promoter shareholders in Reliance Power, while alleging
that corporate rivals were pulling down share prices of all group
companies.
Reliance Power also demanded a probe by market regulator SEBI
into "a vicious and orchestrated campaign of market manipulation and
market abuse unleashed by unscrupulous rival corporate interests to
hammer down all Reliance ADA stocks".
The company said its board would consider the free bonus shares at a
meeting next Sunday, February 24, to benefit over four million of
its investors and the cost would be accepted by promoter group by
way of diluting its shareholders.
The company said that promoters would accept the dilution in their
shareholding in the broader interest of investors.
to all non-promoter shareholders in Reliance Power, while alleging
that corporate rivals were pulling down share prices of all group
companies.
Reliance Power also demanded a probe by market regulator SEBI
into "a vicious and orchestrated campaign of market manipulation and
market abuse unleashed by unscrupulous rival corporate interests to
hammer down all Reliance ADA stocks".
The company said its board would consider the free bonus shares at a
meeting next Sunday, February 24, to benefit over four million of
its investors and the cost would be accepted by promoter group by
way of diluting its shareholders.
The company said that promoters would accept the dilution in their
shareholding in the broader interest of investors.
Saturday, February 16, 2008
Bernanke, Paulson see US avoiding recession
| Bernanke, Paulson see US avoiding recession |
| Hemant P. Maradia / Mumbai |
| The two US policy makers say the outlook for the US economy is worse than it was a few months ago and both expect cuts in official growth forecasts |
Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson on Thursday exuded confidence that the US will avoid falling into recession on the back of aggressive rate cuts and the US$170bn stimulus package. The two made their comments at a hearing before the Senate Banking Committee about the state of the economy. However, Bernanke reiterated that the outlook for the world's largest economy had worsened amid the ongoing turmoil in the housing and credit markets. Paulson too acknowledged the growing problems in the US economy. The two leading US economic policy makers said that the outlook for the US economy was worse than it was as recently as a few months ago, and both expect cuts in official growth forecasts in the coming months. The Fed is currently predicting 1.8% growth for this year. Bernanke said a new forecast would be finalized next week. The Council of Economic Advisors' most recent estimate pegs the US economic growth at 2.7% in 2008. "The Federal Open Market Committee will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," Bernanke said. The Fed has done a lot to stave off a recession but stands ready to do more if the outlook darkens, he said. The Fed economists will be burning the midnight oil to gauge if the rate cuts undertaken so far are having their intended effects, Bernanke said. Bernanke painted an improving picture for the US economy, saying that he expects a stronger pace of expansion starting later this year after an unspecified period of sluggish growth. At the same time he repeated the warning about more downside risks. "Although the baseline outlook envisions an improving picture, it is important to recognize the downside risks to growth remain, including the possibilities that the housing market or the labor market may deteriorate to an extent beyond that currently anticipated, or that credit conditions may tighten substantially further," Bernanke said. The Fed chief also said that he believes major banks and Wall Street firms are likely to take more hits due to bad investments in subprime mortgages. That could lead to tighter lending standards and contribute to an overall slowdown, Bernanke said. "More expensive and less available credit seems likely to continue to be a source of restraint on economic growth," Bernanke said While some of the Senate panel members praised Bernanke and Paulson for the steps taken so far to boost the US economy, a few others criticised the duo for their lax oversight and lack of early response to the downturn in housing. Paulson, a former CEO of Goldman Sachs said that he also spoke regularly with top Wall Street executives, adding that some are more worried than others. The two were also asked to explain why investments in many major banks and Wall Street firms by sovereign wealth funds should not be a concern. Paulson said these investments are an important endorsement of the US financial system and that they do not pose a risk of foreign governments having undue influence on major banks here. "I think we need to be vigilant. I don't think we need to be fearful," Paulson said. Meanwhile, many Wall Street economists are already estimating that the risks of a recession are at least 50-50, and a growing number of analysts contend that an economic contraction may have already begun. Former Fed chairman Alan Greenspan said that the US economy is on the verge of its first recession in six years as falling home values hurt consumer spending. "We are clearly on the edge," Greenspan told a group of energy-industry executives yesterday at the Cambridge Energy Research Associates' 27th annual CERAWeek conference in Houston. He reiterated comments from last month that the odds of an economic contraction are 50% or better. |
Not another manic Monday
| Not another manic Monday |
| India Infoline News Service / Mumbai Feb 15, 2008 18:27 |
| Bulls would look to continue the momentum on Monday given the scenario in equity markets across the globe. |
On Friday bulls extended their gains to third straight trading session tracking firm cues from the Asian and European markets also buying momentum in the large cap stocks towards the end lifted the nifty index to close above the 5,300 mark. Finally, the 30-share Sensex closed at 18,115 surging 348 points. The NSE Nifty closed at 5,302 adding 100 points. Overall about 1,988 stocks advanced, 759 stocks declined while 46 stocks remained unchanged. Among the BSE 30 index 25 stocks advanced while 5 stocks declined. Igarashi Motors rallied by over 13% to Rs77 after the company announced that it agreed to venture with Robert Bosch. The scrip touched an intra-day high of Rs78 and a low of Rs68 and recorded volumes of over 86,000 shares on NSE. Refinery stocks continue to be in demand as Government hiked petrol and diesel prices by Rs2 per litre and Re1 per litre respectively. IOC surged by 4.5% to Rs561, HPCL gained 3.5% to Rs309 and BPCL added 1% to Rs469. Telecom stocks also ended with gains. Report stated that DOT planned to change spectrum usage charges levied on telecom companies, to a fix percentage of revenue for each category circles. Rcom gained 0.5% to Rs612, Bharti Airtel gained 0.6% to Rs882, Idea advanced 3.5% to Rs112 and Tata Communication added 1.1% to Rs508. Hanung Toys gained 3% to Rs204 after the company announced that it opened their first Retail store for soft toys in Bhushan Steel was down 0.3% to Rs1035. The company announced that it proposed to execute MOU with wholly owned Undertaking / Govt. of Madhya Pradesh for setting up manufacturing facilities in the state of Madhya Pradesh for 1 MTPA Coke Oven Plant and 5 MTPA Cement Plant, with the total investment of approximately Rs40bn in phases. The scrip touched an intra-day high of Rs1055 and a low of Rs988 and recorded volumes of over 43,000 shares on NSE. Cadila gained 1.7% to Rs251 after the company announced that it introduced an NDDS product 'Nudoxa' for the treatment of various cancers. One of the critical drugs used in chemotherapy, Nudoxa heralds a new approach in cancer therapy. With chemotherapy being a common mode of treatment in cancers, there has been a long standing need for a drug that is stable and long lasting with reduced toxicity and side effects. The scrip touched an intra-day high of Rs254 and a low of Rs245 and recorded volumes of over 6,000 shares on NSE. |
Inflation dips to 4.07%
| Inflation dips to 4.07% |
| India Infoline News Service / Mumbai Feb 15, 2008 12:17 |
| However, with the Government effecting a modest increase in petrol and diesel prices the wholesale inflation rate is most likely to shoot up in two weeks` time |
India's inflation, based on the wholesale price index (WPI), declined marginally in early part of February but the rate will surely rise over the next couple of weeks after the Government hiked fuel prices for the first time in one and a half years. The annual point-to-point inflation fell to 4.07% in the week ended Feb. 2, 2008 as against 4.11% in the previous week, the Commerce & Industry Minister said today. The figure was better than the average estimate of a slight increase. It was also lower compared to the same period last year, when the annual inflation rate was 6.58%. Yesterday, the Government hiked petrol and diesel prices by Rs2 and Re1, respectively while leaving the price of PDS Kerosene and domestic cooking gas unchanged. This is likely to affect inflation when the data for the week ended Feb. 16 is released two weeks from now. |
Small investors will have to look beyond brand Reliance
Small investors will have to look beyond brand Reliance
MUMBAI: When Meera Sanghavi was allotted 16 shares of Reliance Power in India's biggest-ever initial public offer, it seemed a windfall for the middle-class housewife, who hoped to double her money in less than a month.
Instead, she sold her shares in panic on Monday as the newly listed stock tanked. She lost 7 percent of her investment and will think twice before applying for shares again. "This is a big loss for common people like me who had lot of expectations from such a big company," 49-year-old Sanghavi told reporters.
Reliance Power, which raised $3 billion in the world's largest IPO this year, attracted bids worth $190 billion from over 4 million investors when it opened for subscription in January, just days before stock markets worldwide went into a tailspin.
Shares in billionaire Anil Ambani's Reliance Power plummeted 17 per cent by the time the market closed. See "I got scared when the price started going down," Sanghavi said. "Even the name of Reliance did not take the shares up."
| | |||
 |
Instead, she sold her shares in panic on Monday as the newly listed stock tanked. She lost 7 percent of her investment and will think twice before applying for shares again. "This is a big loss for common people like me who had lot of expectations from such a big company," 49-year-old Sanghavi told reporters.
Reliance Power, which raised $3 billion in the world's largest IPO this year, attracted bids worth $190 billion from over 4 million investors when it opened for subscription in January, just days before stock markets worldwide went into a tailspin.
Shares in billionaire Anil Ambani's Reliance Power plummeted 17 per cent by the time the market closed. See "I got scared when the price started going down," Sanghavi said. "Even the name of Reliance did not take the shares up."
India 4th biggest loser among emerging markets in Jan: S&P
NEW DELHI: Having emerged as one of the top performers in the equity markets in 2007, India became the fourth worst performer among all the emerging markets in the first month of 2008, with a loss of close to 16 per cent, according to financial market data provider Standard and Poor's.
"If investors thought the market could only go up, January's wake-up call pulled them back into reality," S&P said in its monthly update on world equity markets.
The global stock markets lost a whopping $5.2 billion as bearish sentiment prevailed across both emerging and developed markets to mark one of the worst ever starts to a new year, S&P said.
"There were few safe havens in January as 50 of the 52 global equity markets ended the month in negative territory, with 25 of them posting double-digit losses," S&P's Senior Index Analyst Howard Sliverblatt said.
"If investors thought the market could only go up, January's wake-up call pulled them back into reality," S&P said in its monthly update on world equity markets.
The global stock markets lost a whopping $5.2 billion as bearish sentiment prevailed across both emerging and developed markets to mark one of the worst ever starts to a new year, S&P said.
"There were few safe havens in January as 50 of the 52 global equity markets ended the month in negative territory, with 25 of them posting double-digit losses," S&P's Senior Index Analyst Howard Sliverblatt said.