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News Round-up
` Vehicles sales slowed down in November, growing by a models 17.81% to
1,221,981 units compared with 1,037,232 units sold in the corresponding period last
year. (BSTD)
` OMCs to raise petrol prices, diesel could see marginal hike. Diesel deregulation
impossible now due to high global crude, says Petroleum secretary. (FNLE)
` The government may acquire less than two-thirds of its allocation in SBI (SBIN IN)
proposed rights offer. (FNLE)
` ONGC (ONGC IN) will allow GAIL (GAIL IN) to market gas from C-series field. (BSTD)
` HPCL (HPCL) gets 15 bids for 50% stake in Prize Petroleum. Evaluation likely to be
completed this month. Prize Petroleum , which originally had ICICI Bank (ICICIBC IN)
(with 35% stake), ICICI Venture (with 10%)and HDFC Bank (HDFCB IN) (with 5%) as
partners, lost steam when these players began to look to sell their stake in the firm.
(FNLE)
` Hero group likely to float special purpose vehicle (SPV) for deal, in which it will hold
30%. Hero plans to buy Honda's stake at discount, sell it to PE firms. Munjals will buy
the shares from Honda at around INR 1200 per share and sell majority of them to the
PE firm such as Carlyle and KKR at INR 1500. The separation is likely to take place
next year. Post separation, Honda will continue to provide technology and models to
the Hero group at least till 2014. (FNLE)
` Hero Honda (HH IN) said it has hiked the prices of its models in the range of INR 500-
1,500 to offset the rising input costs. (FNLE)
` Reliance Media Works and Inox (INOL IN) filed for open offers to buy majority stake in
multiplex operator Fame, Sebi has cleared the deck for the offers of both companies.
(BSTD)
` Tata Motors (TTMT IN) plans to launch a premium intercity bus to take on
multinational rivals like Volvo and Mercedes. (FNLE)
` Tata Motors (TTMT IN) lines up new financing deals to boost Nano sales, co. looking
to build vendor confidence. Tata Motors, India's largest commercial vehicle
manufacturer by sales, will not increase the prices for its commercial vehicles, despite
rising input costs. (ECNT)
` Tata Steel (TATA IN) may take JV route for Riversdale counter-bid, may team up with
NMDC (NMDC IN) or SAIL (SAIL IN) due to high acquisition cost. (ECNT)
` Havells India (HAVL IN) has doubled the manufacturing capacity of its cable & wire
segment at Alwar plant in Rajasthan. (FNLE)
Economy News
4 India's exports grew at the fastest rate in five months, well outpacing the
growth in imports. Shipments of goods were up 26.8% in November 2010
from a year ago and imports were up 11.2% to $27.8 billion. The
government now expects the trade deficit to drop to, what it thinks is a
manageable, $120 billion for the entire fiscal. Trade deficit dropped to
$8.9 billion for November from over $13 billion in August. (ET)
4 The Central Bureau of Investigation (CBI) is investigating Chennai-based
company Green House Promoters owned by relatives and an associate of
the former telecom minister A Raja. Investigators say they are suspicious
because Green House Promoters was set up shortly after Mr Raja
became the Union environment minister in 2004. The Singapore-arm was
set up in 2007, during the allocation of the 2G licenses and spectrum.
Investigators are also trying to unearth whether bribes allegedly paid to
get hold of 2G licenses were routed through this company. (ET)
4 Telecom Regulatory Authority of India has suggested rolling out an
optical fibre cable network across the country at a cost of Rs 600bn.
According to TRAI, approximately 2.5mn km of fresh fibre will have to be
laid across the country to meet bandwidth requirements. The new
network, to be rolled out in two phases by 2013, will connect all
habitation with population of 500 and above. (BL)
4 With the festival season demand tapering off and continuing component
shortage, auto sales in November dropped 16 per cent to 1.22mn units,
as compared with the previous month of October. This is after domestic
vehicle sales had touched record numbers for the past four consecutive
months, peaking in October (1.46mn units). (BL)
Corporate News
4 Tata Motors has told its vendors that it will raise production of Nano,
hoping to build confidence after the small car sold only 509 units in
November. Nano vendors, worried over falling sales and cut in
production, have met the automobile major's top brass in Mumbai. The
company said in a separate communication to dealers that it plans to
introduce new financing packages to boost sales. (ET)
4 NTPC, the country's biggest power producer, plans to buy equipment
worth $36.6 billion in the next two years to more than double installed
capacity and help reduce blackouts. "In the next five years, our plan is to
add 25,000 mw of capacity , for which orders will go out in two years'
time at a cost of $36.6 billion," chairman Arup Roy Choudhury told
reporters in New Delhi. (ET)
4 Private equity company Actis is in talks with Isuzu Motors for exiting
automobile company Swaraj Mazda. According to sources, though Actis
has been looking to exit for quite sometime, the deal is stuck over
difference in valuation. Actis holds 5.6 % in Swaraj Mazda, while
Sumitomo Corporation of Japan and Isuzu own 54.9 % and 4%,
respectively. (BS)
4 Havells India Limited, one of the leading cable and wire, electrical and
power equipment manufacturing companies in India, has doubled the
manufacturing capacity of its cable & wire segment at Alwar plant in
Rajasthan. Sunil Sikka, President, Havells India Ltd., said, "This expansion
is in line with the demand that the market is witnessing both domestic
and international markets, especially in the cable and wire segment."
(FE)
4 Novelis, the Canadian unit of Hindalco Industries, will on Friday close a
deal that will refinance the debt taken by Hindalco but at a higher rate,
said people with direct knowledge of the financing exercise. The rate of
interest for the loancum-bond issue would be about 7%, said at least two
persons involved in the exercise. The deal will be split into a $2.5-billion ,
7 year bond and a $1.5-billion senior secured term loan. There is also a
$800-million asset-backed revolving credit facility. (ET)
Source: ECNT= Economic Times, BSTD = Business Standard, FNLE = Financial Express, THBL = Business Line.
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