Indian Stock Market

Cairn oil India has tarted producing oil in Rajasthan in India. Prime Minister inaugrated it .

Aircel and Reliance Communications in tower sharing deal.

Reliance Communications’ tower business Reliance Infratel is likely to enter into an end-to-end telecom infrastructure agreement with
Aircel for towers, voice carriage and bulk bandwidth worth about USD 300 million.

According to sources, Aircel and Reliance Communications are close to entering into telecom infrastructure sharing agreement, estimated to be worth about USD 300 million, which will cover all circles where Aircel has rolled out its telecom services and also the new ones where it expects to launch services soon.

Reliance Communications (RCom) will execute this agreement through its tower subsidiary Reliance Infratel, in which RCom holds a 95 per cent stake.

When contacted, a RCOM Spokesperson declined to comment on the development.

The agreement would provide Aircel access to Reliance Infratel’s nationwide tower infrastructure comprising 50,000 sites and optic cable fibre backbone. This would help Aircel optimise its operational costs, while expanding or upgrading its mobile coverage.

Sources said the agreement is expected to offer RCom a revenue upside of over Rs 1,500 crore.

RCom already has similar agreements with Etisalat DB and STel.

Drug resistant H1N1 . Heard of it ?

An increasing number of countries, including some in Asia, are now reporting Tamiflu-resistant H1N1 virus. The worrying development,
according to WHO, has seen 12 countries, including China and Singapore, reporting a mutation in the virus. India has not reported the mutation so far.

The changes in the virus reported in samples are making these strains of swine flu resistant to oseltamivir or Tamiflu, the antiviral of choice globally.

Such cases have also been found in Japan, US, Hong Kong, Denmark and Canada. While India is monitoring these reports closely, it will begin exit screening of pilgrims bound for Saudi Arabia for Haj as the desert nation is refusing entry to anyone with even common cold. Saudi authorities are insisting on certificates stating that Haj pilgrims are completely free of any influenza infection.

Changes in the virus are also being tracked closely as scientists are concerned that new strains may make the vaccines being developed at a feverish pace infructuous. As of now, WHO fears Tamiflu resistance may be more widespread than officially reported.

Going by available data, majority of the resistant cases were reported where oseltamivir was given as preventive medication to people exposed to the flu but who had not tested positive themselves. Some cases were a result of treatment of mild illness as well as “immuno-compromised ” patients or persons whose immune systems were working imperfectly.

India has so far not reported such a mutation. ICMR director general Dr V M Katoch told TOI, “We have been constantly sequencing genes in H1N1 to mark any form of mutation.”

Kingfisher Airlines board on Monday approved an enabling resolution to raise $100 million (nearly Rs 487.8 crore) by various fund raising instruments.

The board of directors of the company have approved that the funds be raised through various instruments including Global Depository Receipts, Kingfisher Airlines said in a filing to the Bombay Stock Exchange [ Images ].

The proposal is subject to shareholders’ approval, the filing added.

This is in addition to the decision for induction of capital for an amount not exceeding Rs 500 crore (Rs 5 billion) by a rights issue of equity shares taken at the last board meeting held on July 28.

Further, the board has also approved to raise the authorised share capital of the company to Rs 1,000 crore (Rs 10 billion) from Rs 500 crore (Rs 5 billion), subjected to shareholders approval, the filing added.

Britannia Sugar Import.

Biscuit and dairy product major Britannia Industries is planning to import sugar, both raw and refined, on account of the scarcity in
the domestic market, a top company official said here Monday.

“We will import sugar this year. This is the first time we are doing so. We have been allowed to keep an inventory of 15 days,” Britannia chairman Nusli N. Wadia told reporters on the sidelines of the company’s annual general meeting (AGM).

Added managing director Vinita Bali: “There is a shortage and a scramble for sugar in the domestic market, so we need to secure our supplies from domestic as well and as overseas markets.”

However, they declined to say how much sugar would be imported and when.

Regarding the price rise of biscuits, Bali said: “In the past six months, we have raised prices by 5-12 percent depending on brands.”

Without specifying how much hike could be expected in the future, she said, “We are raising price all the time according to the need and will continue to adjust prices.”

Bali said prices of skimmed milk have gone up 35 percent, which has also impacted margins, adding: “Given the drought situation, we expect milk yield to go down during the year.”

At the same time, she said the company’s dairy business would be its “growth vector”.

“In the coming days, you will see several new launches and they would be differentiated dairy business.”

Talking on Britannia’s plans on inorganic growth, Bali said it was open to acquiring the “right brand at right value” at the right time.

The company’s profit after tax in 2008-09 fiscal was Rs.180.4 crore.

OIL to grow 100%

Oil India Ltd plans to double its natural gas production to around 4.54 billion cubic
metres annually in the next 5-6 years.

“There have been a lot of proven reserves with the help of which we shall be in a position to double the gas production. We are in a position to more or less double our production in the next 5-6 years time,” Oil India (OIL) Chairman and Managing Director N M Borah said.

The PSU produced about 2.27 bcm (or 6.22 million units per day) of gas and nearly 25 million barrels of oil in FY09.

Borah said the company’s gas production potential has gone up by 8 per cent compared to that in 2008-09.

Oil India accounts for about 10.41 per cent of India’s total production of crude oil and about 6.91 percent of its total gas output.

The company is presently developing existing resources by drilling new wells and building pipelines and may eventually sell it through a city gas distribution joint venture it has with Bharat Petroleum Corp Ltd.

“Primarily, it (doubling of production) will be from our established resource base in the north east, particularly the fields in Assam. But, certainly our natural gas production base in Rajasthan is also bound to go up because we already have established more resources there and are taking steps to enhance the production,” Borah said.

BGR Energy secures 2 x 500 MW Marwa Thermal Power Project BOP contract for Rs 1633 Crores

Pyramid Saimira Theatre Ltd (PSTL) has decided to offload a stake of over 40 per cent in its movie production company to a Kolkata-based corporation. The new partner of PSTL is likely to infuse around Rs 100 crore.

In addition, as a part of its restructuring plan, PSTL has also decided to demerge its television content production company and is planning to sell its American exhibition company, too.

PSTL also informed the Bombay Stock Exchange today that its board of directors had considered and approved the raising of up to $100 million (around Rs 500 crore) through an international offering of securities, including Foreign Currency Convertible Bonds, Global Depositary Receipts and American Depositary Receipts, subject to necessary approvals. The company had earlier said it would raise the money through Qualified Institutional Placement.

On the offloading to a Kolkata-based company, PSTL Chairman P S Saminathan told  this corporation would acquire 42 per cent in PSTL’s production company. He declined to reveal the corporation’s name, which would become a co-promoter and a strategic partner in PSTL.

“The new partner will infuse Rs 100 crore, which would address the company’s immediate liquidity issue. The money will be utilised to restart production of 17 films, which have been kept on hold due to liquidity crunch,” said Saminathan.

The demerger would happen within 90 days after the Securities and Exchange Board of India and the Madras High Court give their approvals. The new company would target a turnover of Rs 300 crore in the first year of operations, according to Saminathan.

Similarly, the company would also demerge its content division company, he added. The new company would also be listed to raise money, with 25 per cent of the shares being held by the promoters. Another 40,000 shares would be given free of cost to PSTL’s shareholders, to compensate for the loss they incurred on the parent company. Commenting on the exhibition company, which is into the theatre business, Saminathan said it now had 250 screens in South India, down from the 750 it operated earlier.

The company would now work on a revenue-sharing basis with theatre owners, instead of the earlier fixed-rent basis. Currently, the company has 300 movies in its library, which was acquired for Rs 700 crore.

There are also plans to sell the American exhibition company, Fun Asia, in which the company had invested around $10 million, for $5-6 million (around Rs 25-30 crore). One of the prospective buyers of Fun Asia could be Reliance Entertainment, said Saminathan.

Earlier, the company had closed its two subsidiaries, Spice, which was a DTH subsidiary, and Aurona Technologies, a gaming business company. The loss of the two companies alone was around $10 million (around Rs 50 crore), which the company decided to write off.

Company board has also in-principally approved de-merger of Pyramid Saimira Content Distribution (P), a subsidiary company (distribution wing) and Pyramid Saimira Production International, a subsidiary company (production wing) from the parent company, subject to necessary approvals.

Nokia Booklet 3G is going to be launched soon. Indian Launch date , Features and Price in India wil be updated here soon.

Sahara group Real Estate Arm , Sahara Prime City Ltd is in the verge of filing Draft prospectus for a propsed IPO Offering. Company plans to raise Rs. 5000 crores for exansion plans using this IPO. This offer can be expected in the year end.
Real estate hasn’t seen any ipo in the past 1 year due to adverse market condition.
Ambey valley project is however not under this Sahara Prime City Ltd.
All other details about this Sahara Primecity IPO will bd posted soon.

Future Ventures India is the next Big Bang IPO from private sector.

Future Ventures India is promoted by Kishore Biyani’s Future Group and its his Venture capital arm. Kishor had said in an interview that he is going to raise Rs.1000 crores for this company through IPO.

FVIL is in the process of filing Draft Red Herring Prospectus (DRHP) with market regulator SEBI.   Future Ventures has already received a sum of Rs 325 crore from Pantaloons for business operations.

THe company plans to invest in new areas and the real estate projects of the Futur group.   FVIL is also expected to invest and execute the Future group’s joint ventures and investments, which were so far done by the listed entity Pantaloon. However Future capital is the fund manager for Future venture.   More details on Future Ventures IPO will be posted here soon like IPO date, Allotment status , Allocation chances , Listing date , Price and Grey market premium.

Jindal Cotex IPO , Price , Subscription , Allotment Status , Listing date

Jindal Cotex IPO starts on August 27 2009.

Jindal Cotex IPO starts for subscription on August 27 and closes on September 1, 2009.

The issue comprises of promoters’ contribution of 12,03,894 equity shares and reservation of 5,00,000 equity shares for eligible employees.

So, the net issue to the public is of 1,07,50,000 equity shares.The net issue shall constitute 43% of the post issue paid up capital of the company.At higher price of band, the company will raise Rs 93.40 crore; out of which, the promoters will receive around Rs 9 crore.

The proceeds from the issue (excluding public issue expenses) will be used for setting up a new facility for manufacturing of cotton yarn, yarn dyeing and garments and investment in subsidiaries namely Jindal Medicot & Jindal Specialty Textiles.

The company is engaged in the business of manufacturing of acrylic, polyester, and polyester-viscose, polyester cotton, combed and carded yarns, which are appropriate for apparels, suitings and knitted fabrics. The yarns produced by the company are used for made ups in apparels, hosiery & garment industry.

It has current installed capacity of 23,472 spindles for acrylic, cotton blended and polyester yarns with a manufacturing capacity of 6500 TPA. It manufactures and sell yarns under the trade name ‘JINDAL’.

The issue has been graded by Brickwork Ratings India Private Limited and has been assigned a grade of 3/5 indicating average fundamentals.

For the quarter ended June 2009, the company reported net sales of Rs 29.08 crore and net profit of Rs 1.84 crore. For the year ended March 31, 2009, it has reported net sales of Rs 138.58 crore and net profit of Rs 4.34 crore.

Equity shares issue via IPO are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and on the National Stock Exchange of lndia Limited (NSE).

Saffron Capital Advisors Private Limited is the book running lead manager to the issue and Bigshare Services Private Limited is registrar to the issue.

JKlakshmiCement-IC-7-8-2009.pdf JK Lakshmi Cement August 2009 Research Report

Result%20Update%20-%20State%20Bank%20of%20India–Q1FY10.pdf

ITC – Karvy – 13 08 09.PDF