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Front Page News - Feb 06, 2015
Corporate Snippet
Ø The Adani group hopes to work with the new regime in Australia's Queensland state and discuss the coal
mining project that will create 10,000 jobs and contribute $22 billion to the state's revenue, the conglomerate stated in the wake of renewed activist enthusiasm after the victory of the Labor party in the province.( ET )
Ø JSW Steel has cut capex plan by 20% this year becoming the latest victim of a global commodity price plunge that has spooked global markets and threatened the growth prospects of many countries. The Sajjan Jindal-led steel firm will spend only 6,000 crore for the year ending March versus the earlier estimated 7,500 crore.( ET )
Ø Orange SA has explored various acquisitions in Africa, including assets owned by Bharti Airtel Ltd, as the French company seeks to bolster its business in the region, according to people.( BS )
Ø Infosys BPO said it has secured an IT services deal with Dutch insurance services firm a.s.r. for supporting back-office operations.The BPO services arm of the Bangalore-based firm, Infosys BPO, will supply back-office services for the a.s.r. labelled pensions administration system from April 1, 2015, Infosys said in a statement.( ET )
Ø HDFC Bank raised around Rs 8,500crore by selling American Depository Receipts (ADRs) at $57.76 (Rs 3,556) per unit. The bank had set a floor price of Rs 1,061.84 per share for both to the QIP and the issue of ADR.HDFC Bank is expected to raise at least Rs 2,000 crore through the QIP offering and Rs 8,500 crore through ADR offering.( ET )
Ø Britannia CEO Varun Berry is busy finalising a roadmap to help shed the company's cookie-maker tag by building existing non-biscuit categories and entering newer businesses.The plan, which will be ready by April, will essentially have details on new segments, expansion strategy into international markets and how to scale up its dairy business. The company could be looking at bridge categories towards chocolates and snacks.( ET )
Ø Reliance Communications has signed a multi-million dollar deal with Avayaunder which the technology solutions provider will transform the telecom major's existing call centre operations.Though the companies declined to disclose the exact deal size, the transaction is believed to be in the range of Rs 450-500 crore, according to sources.( BS )
Ø Delhi-based dairy firm Kwality is going to enter the direct consumer business in a bid to become a major player in the fast-moving consumer goods sector.The north India-focussed firm will soon have new product categories such as packaged food, juices, water, food products for health-conscious people, energy and protein drinks over the next few years.( BS )
Ø Petronet LNG is one of the companies shortlisted to build a liquefied natural gas terminal in neighbouring Bangladesh, a company executive said.The terminal will have a capacity of 2.5 to 5 million tonne per annum.( BS )
Ø BHEL said it has commissioned a 270-MW unit of a coal-based thermal power plant in Maharashtra.The third unit was commissioned at Rattan India Power Limited’s (formerly Indiabulls Power) upcoming thermal power project located at Amravati in Maharashtra, BHEL said in a statement.( BL )
Ø The government has decided to swap domestic coal from Coal India meant for power plants near ports with imported coal originally meant for power generators located in the interiors.The move is part of a bid to cut down on logistics costs and transportation time. The arrangement will initially be limited to public sector units, but it will be extended to private companies later.NTPC and Gujarat State Electricity Corporation have already decided on such a swap mechanism.( ET )
Ø BASF is going to significantly increase its production capacities of bismuth vanadate pigments in Besigheim near Stuttgart, Germany. The additional capacities will be available as of 2017.( BS )
Ø Edelweiss Financial Services, which was among the 25 applicants for a new banking licence last year, is gearing up to compete with banks through its diversified financial services (DFS) model.( BS )
Ø UCO Bank said it will sell 6.08 crore share to LIC on preferential basis which may fetch about Rs. 400 crore to the bank.The board of the bank at its meeting has approved a proposal for issue of 6.08crore shares of Rs. 10 each to Life Insurance Corporation of India (LIC) on preferential basis at a price to be determined in accordance with SEBI regulation.( BL )
Ø Kirloskar Oil Engines Ltd (KOEL), the Pune-based engine and genset manufacturer, and Germany’s Rolls-Royce have signed a declaration of intent for exclusive cooperation on the building and commissioning of emergency gensets for nuclear power plants in India.( BS )
Ø The government has today called a meeting of companies that owned coal mines that were cancelled, amid mounting concerns over a spate of legal challenges principally related to compensation to the previous mine-owners and disputes over the quality of some information in the bid documents, particularly with regard to the quality of coal.These problems could cast a shadow over the auction of blocks, one of the biggest initiatives of the Narendra Modi government with the intention of boosting coal supply to power stations and factories, has attracted leading business houses.( ET )
Ø South Korea's Posco faces another setback in India.The project to be set up by the world's sixth-largest steelmaker has been caught up in a regulatory maze for the past decade, but the company had waited in the hope of getting preferential access to iron ore in Odisha.But steel and mines minister Narendra Singh Tomar on Thursday ruled out an exception to an executive order mandating auctions for all new mines. This will mean Posco's costs will likely rise if it does manage to win a mine.( BS )
Ø Meru to invest Rs 600 cr in buying regional taxi brands.Executive Officer Siddhartha Pahwa company in an advanced stage of raising about $150 mn, large part of which would be used to acquire small to medium-size taxi service provider brands.( BS )
Ø Ant Financial, an affiliate of Chinese e-commerce giant Alibaba Group Holding, would take a 25 % stake in Noida-based One97 Communications, which runs online payment platform Paytm, the companies said in a joint statement.( BS )
Ø Birla Sun Life Insurance signs IT outsourcing deal with IBM.BSLI will leverage mobility and cloud solutions developed by IBM Research.( BS )
Ø HAL has bagged a major Defence contract to supply 14 Do-228 aircraft produced by HAL to the Indian Air Force (IAF).“Apart from these aircraft, the contract — valued at around Rs.1,090crore — includes six reserve engines, one flight simulator and associated equipment,” said T Suvarna Raju, Chairman, HAL.( BL )
Ø The Gujarat government expects a new airport in an ancient port city of Dholera in the state to take on Dubai as a global hub.The Rs 1,000 crore project has been actively backed by the Narendra Modi government and has been envisaged when Modi was chief minister of Gujarat, said general manager, Dholera International Airport, a state-run company.( ET )
Ø Tyre dealers demanded abolition of 10 % import duty on tyres to check "unfair and exploitative behaviour of the domestic tyre industry".In its wishlist for2015-16 Budget, the All India Tyre Dealers' Federation (AITDF) demanded that import duty needs to be removed to check "unfair and exploitative behaviour of the domestic tyre industry''.( ET )
Ø Interest rate futures: two more contracts likely to mitigate the interest rate risk.NSE has 84 % market share in terms of traded value of the entire IRF market. Of the remaining, BSE holds 13 %and MCX 3 %. The IRF market also helps corporates, banks and foreign portfolio investors to hedge their interest rate risk.( BL )
Ø Continuing its crackdown on illicit realty investment activities, Sebi barred Andhra Pradesh-based Agri Gold Farm Estates India from raising fresh capital from the public with immediate effect.Besides, it directed the company not to launch any new scheme.( ET )
Ø Online mobile recharge platformFreeCharge has raised $80 mil Rs 480crore) from a host of investors lion including San Francisco-based fund Valiant Capital Management and Hong Kong-based hedge fund Tybourne Capital Management.The round also saw participation from existing investors -Sequoia Capital, RuNet and Sofina.( ET )
Economic Snippet
Ø Public sector banks (PSBs) may require budgetary capital support worth Rs 20,000 crore for FY'16, according to ratings firm India Ratings.India Ratings expects a sharp increase in demand for Tier 1 capital from2015 towards the Basel III - the new capital norms for banks , a sector report released by the ratings firm said. It estimates a capital requirement of Rs 5,30,000 crore till FY'19 for all banks.( ET )
Ø Reserve Bank of India said foreign investors can re-invest coupons of government bonds on the entire $30 billion limit, effective immediately.Reinvestment of coupons will be above the permissible $30 billion foreign investment limit for government bonds, the RBI said.( ET )
Ø The government is considering a reduction in export duty on iron ore produced in Goa, a move aimed at injecting life into the industry that has remained shut for nearly two years in the state, which has been the country's largest exporter of the mineral.The export duty on iron ore could be cut to 10% from current 30% for ore with up to 58% Fe content.( ET )
Ø Finance Minister Arun Jaitley in the Budget for 2015-16, is likely to target around Rs 43,000 crore from disinvestment proceeds, almost the same level that the government expects to realise from stake sale in PSUs this financial year.( BS )
Ø The tax department has asked a number of foreign portfolio investors (FPIs) to make available their profit-and-loss (P&L) statements and balance sheets, though they are not required to do so in the normal course of filing returns.The department's move is being seen by tax consultants as part of a larger push to levy Minimum Alternative Tax (MAT) on FPIs. Usually, the tax is applicable only to companies.The department has sought the financial statements of at least 200 FPIs structured as corporate entities.( BS )
Ø Oil Ministry has sought Rs 22,101 crore in fuel subsidy for the second half of current fiscal so as to almost exempt oil producers ONGC and Oil India Ltd from any payments.Since global oil prices have fallen below $50 per barrel, Oil Ministry wants to exempt Oil and Natural Gas Corp (ONGC) and OIL from payment of subsidy during the remainder of the current fiscal.( BS )
Ø With decline in gold imports, the government may consider 2-4 % reduction in import duty on it in the forthcoming Budget, a move that could help boost exports and manufacturing of gems and jewellery, sources said.The industry has already sought reduction in customs duty on gold to 2 per cent, from 10 % now.( ET )
Ø The Centre is considering abandoning significantly delayed infrastructure projects that have not been commissioned as yet while speeding up the ones in which at least half of the investment has already been made.A decision to this effect could be taken after the infrastructure review meeting to be held next Monday , officials said.( ET )
Ø The Reserve Bank issued guidelines with the two-fold aim of ensuring capital buffer for difficult times and restricting banks from indiscriminate lending during the periods of excess credit growth.The Countercyclical Capital Buffer (CCCB), RBI said, may be maintained in the form of Common Equity Tier 1 capital.( BS )
Ø The Heavy Industries and Public Enterprises Ministry has called for the restoration of excise duty cuts on automobiles.The suggestion has come at a time when the auto industry reported a mixed performance in January — the first month after the duty benefit was withdrawn.( BL )
Ø Japan wants India to open the ecommerce sector to foreign investment, seeking space for the likes of Rakuten, one of Japan's big online retail companies that has plans to become a global player, and Uniqlo, a clothing retailer with a strong global presence both online and offline and looking to expand in the country.( ET )
International Snippet
Ø US trade deficit jumped 17.1 % to $46.6billion, the largest since November 2012. It was the biggest per centage increase since July 2009.( ET )
Ø European Central Bank has further weakened Greek banks which have for years been operating on life support, experts said Thursday.From February 11, the ECB will no longer allow Greek banks to use government bonds, which are classified as junk, as collateral for its loans.( ET )
Ø Pfizer Inc will acquire Hospira Inc, a leading provider of injectable drugs, infusion technologies and biosimilars, at a total enterprise value of $17 billion.This is Pfizer's biggest acquisition after its failed $117 billion takeover bid for UK-based pharmaceuticals firm AstraZeneca in May last year.( BS )
Ø Canada's trade deficit widened in December to Can$649 million (US$520million) as a rise in imports outpaced export growth, the government statistical agency said.The figure was up from a Can$355 million (US$285 million) deficit in November, which was revised downward from Statistics Canada's last release of trade data.( ET )
Ø Live Oak LNG has announced plans to set up a new natural gas liquefaction and export project, up to a $2 billion investment, in the Calcasieu waterway, Louisiana.( BS )
Ø BT Group Plc agreed to buy British mobile carrier EE Ltd for £12.5 billion ($19 billion) to create a wireless and broadband giant set to shake up the country's telecommunications industry.( BS )
Front Page News - Feb 06, 2015
Corporate Snippet
Ø The Adani group hopes to work with the new regime in Australia's Queensland state and discuss the coal
mining project that will create 10,000 jobs and contribute $22 billion to the state's revenue, the conglomerate stated in the wake of renewed activist enthusiasm after the victory of the Labor party in the province.( ET )
Ø JSW Steel has cut capex plan by 20% this year becoming the latest victim of a global commodity price plunge that has spooked global markets and threatened the growth prospects of many countries. The Sajjan Jindal-led steel firm will spend only 6,000 crore for the year ending March versus the earlier estimated 7,500 crore.( ET )
Ø Orange SA has explored various acquisitions in Africa, including assets owned by Bharti Airtel Ltd, as the French company seeks to bolster its business in the region, according to people.( BS )
Ø Infosys BPO said it has secured an IT services deal with Dutch insurance services firm a.s.r. for supporting back-office operations.The BPO services arm of the Bangalore-based firm, Infosys BPO, will supply back-office services for the a.s.r. labelled pensions administration system from April 1, 2015, Infosys said in a statement.( ET )
Ø HDFC Bank raised around Rs 8,500crore by selling American Depository Receipts (ADRs) at $57.76 (Rs 3,556) per unit. The bank had set a floor price of Rs 1,061.84 per share for both to the QIP and the issue of ADR.HDFC Bank is expected to raise at least Rs 2,000 crore through the QIP offering and Rs 8,500 crore through ADR offering.( ET )
Ø Britannia CEO Varun Berry is busy finalising a roadmap to help shed the company's cookie-maker tag by building existing non-biscuit categories and entering newer businesses.The plan, which will be ready by April, will essentially have details on new segments, expansion strategy into international markets and how to scale up its dairy business. The company could be looking at bridge categories towards chocolates and snacks.( ET )
Ø Reliance Communications has signed a multi-million dollar deal with Avayaunder which the technology solutions provider will transform the telecom major's existing call centre operations.Though the companies declined to disclose the exact deal size, the transaction is believed to be in the range of Rs 450-500 crore, according to sources.( BS )
Ø Delhi-based dairy firm Kwality is going to enter the direct consumer business in a bid to become a major player in the fast-moving consumer goods sector.The north India-focussed firm will soon have new product categories such as packaged food, juices, water, food products for health-conscious people, energy and protein drinks over the next few years.( BS )
Ø Petronet LNG is one of the companies shortlisted to build a liquefied natural gas terminal in neighbouring Bangladesh, a company executive said.The terminal will have a capacity of 2.5 to 5 million tonne per annum.( BS )
Ø BHEL said it has commissioned a 270-MW unit of a coal-based thermal power plant in Maharashtra.The third unit was commissioned at Rattan India Power Limited’s (formerly Indiabulls Power) upcoming thermal power project located at Amravati in Maharashtra, BHEL said in a statement.( BL )
Ø The government has decided to swap domestic coal from Coal India meant for power plants near ports with imported coal originally meant for power generators located in the interiors.The move is part of a bid to cut down on logistics costs and transportation time. The arrangement will initially be limited to public sector units, but it will be extended to private companies later.NTPC and Gujarat State Electricity Corporation have already decided on such a swap mechanism.( ET )
Ø BASF is going to significantly increase its production capacities of bismuth vanadate pigments in Besigheim near Stuttgart, Germany. The additional capacities will be available as of 2017.( BS )
Ø Edelweiss Financial Services, which was among the 25 applicants for a new banking licence last year, is gearing up to compete with banks through its diversified financial services (DFS) model.( BS )
Ø UCO Bank said it will sell 6.08 crore share to LIC on preferential basis which may fetch about Rs. 400 crore to the bank.The board of the bank at its meeting has approved a proposal for issue of 6.08crore shares of Rs. 10 each to Life Insurance Corporation of India (LIC) on preferential basis at a price to be determined in accordance with SEBI regulation.( BL )
Ø Kirloskar Oil Engines Ltd (KOEL), the Pune-based engine and genset manufacturer, and Germany’s Rolls-Royce have signed a declaration of intent for exclusive cooperation on the building and commissioning of emergency gensets for nuclear power plants in India.( BS )
Ø The government has today called a meeting of companies that owned coal mines that were cancelled, amid mounting concerns over a spate of legal challenges principally related to compensation to the previous mine-owners and disputes over the quality of some information in the bid documents, particularly with regard to the quality of coal.These problems could cast a shadow over the auction of blocks, one of the biggest initiatives of the Narendra Modi government with the intention of boosting coal supply to power stations and factories, has attracted leading business houses.( ET )
Ø South Korea's Posco faces another setback in India.The project to be set up by the world's sixth-largest steelmaker has been caught up in a regulatory maze for the past decade, but the company had waited in the hope of getting preferential access to iron ore in Odisha.But steel and mines minister Narendra Singh Tomar on Thursday ruled out an exception to an executive order mandating auctions for all new mines. This will mean Posco's costs will likely rise if it does manage to win a mine.( BS )
Ø Meru to invest Rs 600 cr in buying regional taxi brands.Executive Officer Siddhartha Pahwa company in an advanced stage of raising about $150 mn, large part of which would be used to acquire small to medium-size taxi service provider brands.( BS )
Ø Ant Financial, an affiliate of Chinese e-commerce giant Alibaba Group Holding, would take a 25 % stake in Noida-based One97 Communications, which runs online payment platform Paytm, the companies said in a joint statement.( BS )
Ø Birla Sun Life Insurance signs IT outsourcing deal with IBM.BSLI will leverage mobility and cloud solutions developed by IBM Research.( BS )
Ø HAL has bagged a major Defence contract to supply 14 Do-228 aircraft produced by HAL to the Indian Air Force (IAF).“Apart from these aircraft, the contract — valued at around Rs.1,090crore — includes six reserve engines, one flight simulator and associated equipment,” said T Suvarna Raju, Chairman, HAL.( BL )
Ø The Gujarat government expects a new airport in an ancient port city of Dholera in the state to take on Dubai as a global hub.The Rs 1,000 crore project has been actively backed by the Narendra Modi government and has been envisaged when Modi was chief minister of Gujarat, said general manager, Dholera International Airport, a state-run company.( ET )
Ø Tyre dealers demanded abolition of 10 % import duty on tyres to check "unfair and exploitative behaviour of the domestic tyre industry".In its wishlist for2015-16 Budget, the All India Tyre Dealers' Federation (AITDF) demanded that import duty needs to be removed to check "unfair and exploitative behaviour of the domestic tyre industry''.( ET )
Ø Interest rate futures: two more contracts likely to mitigate the interest rate risk.NSE has 84 % market share in terms of traded value of the entire IRF market. Of the remaining, BSE holds 13 %and MCX 3 %. The IRF market also helps corporates, banks and foreign portfolio investors to hedge their interest rate risk.( BL )
Ø Continuing its crackdown on illicit realty investment activities, Sebi barred Andhra Pradesh-based Agri Gold Farm Estates India from raising fresh capital from the public with immediate effect.Besides, it directed the company not to launch any new scheme.( ET )
Ø Online mobile recharge platformFreeCharge has raised $80 mil Rs 480crore) from a host of investors lion including San Francisco-based fund Valiant Capital Management and Hong Kong-based hedge fund Tybourne Capital Management.The round also saw participation from existing investors -Sequoia Capital, RuNet and Sofina.( ET )
Economic Snippet
Ø Public sector banks (PSBs) may require budgetary capital support worth Rs 20,000 crore for FY'16, according to ratings firm India Ratings.India Ratings expects a sharp increase in demand for Tier 1 capital from2015 towards the Basel III - the new capital norms for banks , a sector report released by the ratings firm said. It estimates a capital requirement of Rs 5,30,000 crore till FY'19 for all banks.( ET )
Ø Reserve Bank of India said foreign investors can re-invest coupons of government bonds on the entire $30 billion limit, effective immediately.Reinvestment of coupons will be above the permissible $30 billion foreign investment limit for government bonds, the RBI said.( ET )
Ø The government is considering a reduction in export duty on iron ore produced in Goa, a move aimed at injecting life into the industry that has remained shut for nearly two years in the state, which has been the country's largest exporter of the mineral.The export duty on iron ore could be cut to 10% from current 30% for ore with up to 58% Fe content.( ET )
Ø Finance Minister Arun Jaitley in the Budget for 2015-16, is likely to target around Rs 43,000 crore from disinvestment proceeds, almost the same level that the government expects to realise from stake sale in PSUs this financial year.( BS )
Ø The tax department has asked a number of foreign portfolio investors (FPIs) to make available their profit-and-loss (P&L) statements and balance sheets, though they are not required to do so in the normal course of filing returns.The department's move is being seen by tax consultants as part of a larger push to levy Minimum Alternative Tax (MAT) on FPIs. Usually, the tax is applicable only to companies.The department has sought the financial statements of at least 200 FPIs structured as corporate entities.( BS )
Ø Oil Ministry has sought Rs 22,101 crore in fuel subsidy for the second half of current fiscal so as to almost exempt oil producers ONGC and Oil India Ltd from any payments.Since global oil prices have fallen below $50 per barrel, Oil Ministry wants to exempt Oil and Natural Gas Corp (ONGC) and OIL from payment of subsidy during the remainder of the current fiscal.( BS )
Ø With decline in gold imports, the government may consider 2-4 % reduction in import duty on it in the forthcoming Budget, a move that could help boost exports and manufacturing of gems and jewellery, sources said.The industry has already sought reduction in customs duty on gold to 2 per cent, from 10 % now.( ET )
Ø The Centre is considering abandoning significantly delayed infrastructure projects that have not been commissioned as yet while speeding up the ones in which at least half of the investment has already been made.A decision to this effect could be taken after the infrastructure review meeting to be held next Monday , officials said.( ET )
Ø The Reserve Bank issued guidelines with the two-fold aim of ensuring capital buffer for difficult times and restricting banks from indiscriminate lending during the periods of excess credit growth.The Countercyclical Capital Buffer (CCCB), RBI said, may be maintained in the form of Common Equity Tier 1 capital.( BS )
Ø The Heavy Industries and Public Enterprises Ministry has called for the restoration of excise duty cuts on automobiles.The suggestion has come at a time when the auto industry reported a mixed performance in January — the first month after the duty benefit was withdrawn.( BL )
Ø Japan wants India to open the ecommerce sector to foreign investment, seeking space for the likes of Rakuten, one of Japan's big online retail companies that has plans to become a global player, and Uniqlo, a clothing retailer with a strong global presence both online and offline and looking to expand in the country.( ET )
International Snippet
Ø US trade deficit jumped 17.1 % to $46.6billion, the largest since November 2012. It was the biggest per centage increase since July 2009.( ET )
Ø European Central Bank has further weakened Greek banks which have for years been operating on life support, experts said Thursday.From February 11, the ECB will no longer allow Greek banks to use government bonds, which are classified as junk, as collateral for its loans.( ET )
Ø Pfizer Inc will acquire Hospira Inc, a leading provider of injectable drugs, infusion technologies and biosimilars, at a total enterprise value of $17 billion.This is Pfizer's biggest acquisition after its failed $117 billion takeover bid for UK-based pharmaceuticals firm AstraZeneca in May last year.( BS )
Ø Canada's trade deficit widened in December to Can$649 million (US$520million) as a rise in imports outpaced export growth, the government statistical agency said.The figure was up from a Can$355 million (US$285 million) deficit in November, which was revised downward from Statistics Canada's last release of trade data.( ET )
Ø Live Oak LNG has announced plans to set up a new natural gas liquefaction and export project, up to a $2 billion investment, in the Calcasieu waterway, Louisiana.( BS )
Ø BT Group Plc agreed to buy British mobile carrier EE Ltd for £12.5 billion ($19 billion) to create a wireless and broadband giant set to shake up the country's telecommunications industry.( BS )
