Govt mulls 10% stake sale in BHEL

Govt mulls 10% stake sale in BHEL

NEW DELHI: The government on Friday said it is considering offloading 10 per cent of its equity stake in navratna public sector unit BHEL. "The point of disinvestment (in BHEL) is still under consideration... the government has definitely a positive thinking on that line," Minister of Heavy Industries and Public Enterprises Vilasrao Deshmukh said when asked whether the government is considering divesting 10 per cent in the company. Addressing his first conference after taking charge as the Cabinet Minister, Deshmukh said his department would back the disinvestment policies of the government. BHEL is a power equipment Rs 28,000 crore listed company. Its stock is trading at Rs 2,060.10 on the Bombay Stock Exchange. The government, if it chooses to further disinvest its stake in the company, will have to come with a follow-on public offer. The government at present holds a 67.72 per cent equity stake in power equipment maker BHEL, which would come down to 57.72 per cent if it divests 10 per cent equity. Minister of Heavy Industries and Public Enterprises Vilasrao Deshmukh while announcing the 100-day agenda for its department said that BHEL would enter into an agreement with Indian Railways for supply of stainless steel EMU coaches on a long term basis. BHEL would synchronise eight thermal and hydro sets to generate 1,200 MW capacity in the next 100 days, he said. He said, BHEL would sign an agreement with Madhya Pradesh Power Generation Company for setting up a joint venture to build,own and operate 2x800 MW super critical power plant in Bansagar in the state and also sign a similar agreement with Gujarat State Electricity Generation Co for the setting-up of a 1x800 MW supercritical thermal power plant. The company would synchronise five captive power plants totalling 228 MW of capacity as a part of its 100-day agenda.

**************************************
Other stories

SBI emerges top tax payer, pips ONGC

• Bharti promoter group hikes stake in Airtel to 67.4%
• Closing Bell: Nifty ends near day's high; Suzlon, Tata Steel lead
• India will be growing well: Abby Cohen, Senior Strategist Goldman Sachs

Mahindra Holidays fixes IPO price band at Rs 275-325/sh

Mahindra Holidays fixes IPO price band at Rs 275-325/sh

Mahindra Holidays and Resorts India (MHRIL), one of the leading leisure hospitality providers in India offering quality family holidays and a part of Mahindra Group, is entering the capital market with an initial public offering of 92,65,275 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The bid/ issue will open on June 23, 2009, and close on June 26, 2009. The IPO price band is fixed at Rs 275-325 per share. The size of the issue will be Rs 301 crore at the upper end of the price band and Rs 255 crore at the lower end of the band. M&M (Mahindra and Mahindra) will raise Rs 90.7-123 crore from the sale of 33 lakh shares and it will hold 83% of the Mahindra Holidays post issue.

The issue has been assigned 4 out of 5 IPO grading by Fitch Ratings India Private Limited reflecting 'above average fundamentals’ of the issue relative to other listed equity securities.

The issue comprises a fresh issue of 58,96,084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra and Mahindra (the “selling shareholder”). The issue would constitute 11.0% of the fully diluted post-issue paid-up capital of the company.

The proceeds from MHRIL’s proposed issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts, and hence a wider choice of holiday destinations to members.

Mr Arun Kumar Nanda, Chairman, MHRIL, said, "It is a proud moment that the Mahindra & Mahindra Group’s leisure hospitality and vacation ownership company with an integrated business model is poised to tap the capital markets. The business of MHRIL has been supported by changing demographics, strong economic growth and increasing disposable incomes in India over the last three years. We believe MHRIL’s brands, inventory, distribution of resorts and its integrated model, combined with the company being an early mover in the industry, will give it significant competitive advantage.”

The global coordinator and book running lead manager (BRLM) is Kotak Mahindra Capital Company Limited. HSBC Securities & Capital Markets (India) Private Limited and SBI Capital Markets are the BRLMs. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

MHRIL, one of the leading players in the leisure hospitality industry, offers quality family holidays primarily through vacation ownership memberships. MHRIL’s flagship brand is Club Mahindra Holidays, which has been selected as Superbrand 2009. MHRIL has also introduced new vacation ownership offerings such as Zest and Club Mahindra Fundays, Mahindra Homestays, travel and holiday related services through clubmahindra.travel. The cumulative member base increased to 92,825 in fiscal 2009 from 38,691 in fiscal 2006. As of May 31, 2009, MHRIL has 96,067 members and 27 resorts across India and Thailand. About 35.18% of new member additions in FY09 came from referrals by existing members.

Mahindra Holidays had initially filed offer documents in December 2007 but did not proceed due to unfavourable market conditions. The company refiled its draft offer documents with SEBI on 30 September 2008.

It had sold a 2% stake to SBI and 1% stake to Jacob Ballas as pre-IPO placement at Rs 478/share in January 2008. It raised Rs 120 crore through a 3% sale.

Its reported FY09 sales were at Rs 400 crore and profit was at Rs 80 crore.

***************

• Sebi scraps entry load for MFs, cuts fees of intermediaries
• Mkts end strong led by capital goods, metals, banks

Source: Moneycontrol.com

RIL-RNRL Case Verdict:RIL shares fall after gas supply ruling;Court favours RNRL

RIL shares fall after gas supply ruling

Reliance Industries shares fall after gas supply ruling 15 Jun 2009, 1416 hrs IST, ET Bureau & Agencies

Print EMail Discuss Share Save Comment Text:

MUMBAI: Shares in Reliance Industries fell as much as 6.1 percent after the Bonbay High Court directed it to supply gas to Reliance Natural Resources at lower than market prices. Reliance Industries, which has the highest weightage in the main share index, was asked to supply 28 million metric cubic metres a day for 17 years at $2.34 million per metric British thermal unit, the lawyer for Reliance Natural said after the court ruling. Shares in Reliance Natural soared as much as 23.4 percent to 107.70 rupees. "Reliance Industries will have to supply gas at a rate lower than the rate fixed by the government. They are going to incur a lower profit for that much amount," said D.D. Sharma, vice president at Anand Rathi Securities. By 0616 GMT, Reliance Industries was trading 5.4 percent lower at Rs 2,228.95 after hitting Rs 2,213.55. Reliance Industries is controlled by billionaire Mukesh Ambani while Reliance Natural Resources is headed by his younger brother Anil Ambani. By the gas supply master agreement, RIL was supposed to supply natural gas from the Krishna-Godavari basin to RNRL, to be used for the Anil Ambani group's power generation plant at Dadri in Uttar Pradesh. The GSMA came into existence in January 2006, following the demerger of the Reliance group. But both the sides differed on its terms related to the quantity of gas to be supplied, price, and duration of supply.

In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order.

Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties. The interim verdict also mentioned that RIL’s gas agreement with others would be subject to the court’s final order.

The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per million metric British thermal unit (mmBtu), while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.


RNRL wins gas supply dispute; stock up 20%

RNRL wins gas supply dispute; stock up 20% 15 Jun 2009, 1120 hrs IST, ET Bureau

Print EMail Discuss Share Save Comment Text:

MUMBAI: Shares of Reliance Natural Resources surged 20 per cent on huge volumes Monday after the Bombay High Court pronounced the judgment in Decade's hottest biz feuds Tycoons with a golden heart Mukesh's street on plushest list favour of the company in the long-standing RIL-RNRL gas supply agreement dispute. Bombay High Court has now given a month’s time to both parties to come to enter into an agreement. The court has asked Reliance Industries to sell gas to RNRL for 17 years at $2.34/MBTU. By the gas supply master agreement, RIL was supposed to supply natural gas from the Krishna-Godavari basin to RNRL, to be used for the Anil Ambani group's power generation plant at Dadri in Uttar Pradesh. The GSMA came into existence in January 2006, following the demerger of the Reliance group. But both the sides differed on its terms related to the quantity of gas to be supplied, price, and duration of supply. In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order. Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties. The interim verdict also mentioned that RIL’s gas agreement with others would be subject to the court’s final order.

The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per million metric British thermal unit (mmBtu), while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.

At 11:15 am, shares of RNRL were up 20 per cent at Rs 105 while RIL shares fell 4 per cent to Rs 2258.

******************************************

Also Read

→ Reliance Industries increases LPG supplies to oil firms

→ Private oil companies may hike prices

→ ONGC to hire drill rig from RIL for Rs 3,914.39 cr

→ RIL fails to find enough takers for KG gas

HC verdict against RIL, -ve global cues spook mkts

• Ambani gas case: HC rules in RNRL's favour
• 'Rel Power Wins Too'

RNRL case win to benefit Rel Power too: Tulsian
Ambani gas case: HC rules in RNRL's favour
RIL-RNRL gas tussle: Final HC judgment today

Gas dispute: Bombay HC rules in favour of Anil Ambani

Oil & Gas index slump following HC verdict
	Reliance Natural Resources soars on High Court ruling Oil & Gas index slump following HC verdict Reliance Natural Resources soars on High Court ruling

RNRL wins gas supply dispute with Reliance



Source:EconomicTimes.com, Business Standard, Moneycontrol etc

World's best-performing stock markets

World's best-performing stock markets


World's best-performing stock markets of 2009

On January 8, 2008, history was made as the Bombay Stock Exchange's Sensitive Index (Sensex) hit the magic 21,000-mark! Just about 18 years ago on July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

But within two weeks of touching 21,000 the fairy tale ended, and on January 21, 2008 the Sensex registered the first-ever four digit loss when it plunged 1,408 points to close the day at 17,605.

Since then the slide was steeper till it almost plunged below 7,000.

At its peak in October 2007, global equity, or the market capitalisation of all companies in world stock markets, stood at $62.5 trillion, close to that year's world GDP figure of $65 trillion.

Then the American sub-prime crisis hit the shores, banks collapsed and financial institutions went belly-up.

A jaw-dropping $37 trillion of wealth in the form of market cap was wiped out in 18 months up to the multi-year lows that were reached on March 9, 2009. That was 59 per cent of public company values, or $25.5 trillion.

Since then, however, equity values have risen 37 per cent - a wealth-growth of $9.5 trillion - to just over $37 trillion.

Almost all markets fell in 2008. According to a report by EconomyWatch, 62 markets out of the 83 studied are now up.

Read on to find out more...

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 Peru 2009 growth: 72.92% Decline from 52-week high: -31.94% The Bolsa de Valores de Lima, the stock exchange of Peru has several indices. The IGBVL (Indice General Bolsa de Valores) is a value-weighted index that tracks the performance of the largest and most actively traded stocks on the Lima exchange. Peru's economy has shown strong growth over the past seven years, averaging 6.8 per cent a year, helped by market-oriented economic reforms and privatisations in the 1990s. Its GDP grew 9.8 per cent in 2008 to $127.8 billion. Note: All stock market figures are till May 25, 2009

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 Russia 2009 growth: 53.33% Decline from 52-week high: -61.22% The Moscow Interbank Currency Exchange or MICEX is one of the largest universal stock exchanges in the Russian Federation and East Europe. MICEX opened in 1992 and is the leading Russian stock exchange, consisting of shares and corporate bonds of about 600 Russian companies. After a massive sell-off last year pushed the valuations of Russian companies to record lows, rising energy prices in recent months have drawn investors back into the market. In May 2009, the Micex index of major Russian company shares, was up about 105 per cent after bottoming out on October 27. Russia's economy shrank by 7 percent year on year in the first quarter of 2009. Unemployment was up, at 8.5 per cent in February, the highest level since January 2005. Image: Moscow Interbank Currency Exchange.

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 India 2009 growth: 48.25% Decline from 52-week high: -18.26% Bombay Stock Exchange, Asia's oldest bourse, is 133 years old and had a market capitalisation of $1.79 trillion (December 31, 2007). BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. Braving the global recessionary trends, India managed 6.7 per cent economic growth in 2008-09 despite the manufacturing sector recording a dismal performance. A 5.8 per cent growth rate during the last quarter of the fiscal, at a time when most developed economies have shrunk, puts India among the top-most growing nations. Inflation slipped to 0.13 per cent, the lowest ever in over three decades even as prices of essential food items turned dearer. Image: A man speaks on a phone in front of a bronze replica of a bull at the gates of Bombay Stock Exchange. Photograph: Arko Datta/Reuters

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 China 2009 growth: 47.01% Decline from 52-week high: -26.30% The Shanghai Composite Index, the benchmark for the Chinese domestic market, rose six-fold in just over two years, starting in mid-2005, before a yearlong drop starting in late 2007 that left it about 70 per cent lower. It is up 52 per cent in 2009, China's 2009 real GDP is seen to grow by just 6.5 per cent. Growth will recover in 2010, but only to 7.3 per cent. The economy will be supported by a rapid expansion of government infrastructure spending and policies to revive housing investment. The outlook for exports is poor, but falling commodity prices will also depress imports

More @ World's best-performing stock markets

*******************************************

Rahman among world's most creative biz people
Slide show: India's costliest cities
PM's 100-day plan to revive Indian economy

Great Places to Work: Others in India's top 50 list
Sensex closes 174 points lower


Source:Rediff, ET.

Indias Best Companies to Work for 2009

India's Best Companies to Work for 2009

India's Best Companies to Work For 2009 10 Jun 2009, 1226 hrs IST

Print Save EMail Write to Editor

Business is all about results. Results arise from opportunities. Opportunities arise from relationships. And business relationships must work beyond the boundaries of achievement to distinguish a good workplace from a great one. In its latest edition of "India's Best Companies To Work For-2009", The Economic Times in partnership with the Great Places To Work Institute, attempts to do just that. Here's a list of India's top 25 best workplaces: Read the complete article:

India's Best Companies To Work For 2009

RMSI Pvt Ltd 10 Jun 2009, 1223 hrs IST

Print Save EMail Write to Editor

Rank: 1 India HQ: Noida Employees: 1457 Gender Ratio (F:M): 1:4.69 Employee Turnover: 8% Best Practices: There is more gravitas in the work culture of the company than the slew of awards it has won over the years reflects. It encourages its employees to diversify and rewards them for their out of the box efforts. Read the full article: RMSI Private Pimited : Reach meet share involve

Intel Technology India Pvt Ltd 10 Jun 2009, 1222 hrs IST

Print Save EMail Write to Editor

Rank: 2 India HQ: Bangalore Employees: 2541 Gender Ratio (F:M): 1:3.65 Employee Turnover: 10% Best Practices: At every group in Intel, there are broad guidelines or deliverables set, but the culture is always steeped in how they could make things bigger, better. The chipmaker also believes in fully equipping with various tools for its workers. Read the full article: Intel Technology India Pvt Ltd : Inside intelligence too Federal Express Corporation 10 Jun 2009, 1220 hrs IST Print Save EMail Write to Editor Rank: 3 India HQ: Mumbai Employees: 511 Gender Ratio (F:M): 1:4.68 Employee Turnover: 21% Best Practices: It isn’t just the camaraderie, though that drives the company loyalty Federal Express is reputed for; it’s the fairness that has become a hallmark of the organisation, something its founder-CEO Fred Smith instilled right at its inception. Read the full article: Federal Express Corporation : Purple patch

More @ India's Best Companies to Work for 2009



Source:Economic Times