Tata Communications rises on global JV talk
Shares of Tata Communications rose 2.8% to Rs 289.20 on Wednesday in a weak market on speculation the company is close to announcing a joint venture deal with a global telecom player. The market buzz is that the deal is likely to be announced by this weekend. The stock’s rally also fanned a rumour that the path has been paved for Tata Communications to sell its surplus 770- acre land. The “value-unlocking” story of the company’s land has been attributed for any rise in the stock in the past. Brokers said the move can help the company retire debt and also benefit minority shareholders. The stock, which has risen around 5% in the past two days, has largely underperformed the market this year.
Shares of Tata Communications rose 2.8% to Rs 289.20 on Wednesday in a weak market on speculation the company is close to announcing a joint venture deal with a global telecom player. The market buzz is that the deal is likely to be announced by this weekend. The stock’s rally also fanned a rumour that the path has been paved for Tata Communications to sell its surplus 770- acre land. The “value-unlocking” story of the company’s land has been attributed for any rise in the stock in the past. Brokers said the move can help the company retire debt and also benefit minority shareholders. The stock, which has risen around 5% in the past two days, has largely underperformed the market this year.
Citigroup’s Ravi Lambah may move to StanC
Ravi Lambah, managing director at Citigroup Inc’s India investment banking division, has put in his papers. The buzz is that he may join Standard Chartered Bank’s Strategic Client Coverage Group. When contacted, Mr Lambah confirmed his resignation and said he is yet take a call on his future course of action. The dealmaker had joined Citi in 2007 and has been part of several big-ticket transactions including the GTL Infrastructure and Aircel deals. Prior to his stint with Citi, Mr Lambah was the managing director and head of Asian Technology, Media and Telecom (TMT) Group at Credit Suisse.
IPO grading may continue for some more time
IPO grading, an oft-debated topic among market participants may be here to stay for a couple of more years. Buzz is that the regulator is keen on persisting with the practice for a while before taking a decision on whether or not to continue with it. The issue came up for discussion at a recent primary market advisory committee meeting (PMAC). Market regulator Sebi had made grading of initial public offerings (IPOs) by companies mandatory from May 1, 2007 to help investors make informed decision on equity investments. Market participants have, however, been arguing that unless rating is linked to the price of the issue, it is of little relevance to the average investor.
(Contributed by Nishanth Vasudevan, Reena Zachariah & Deeptha Rajkumar)
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