Bilpower rose 1.48% to Rs 174.80 at 15:07 IST on BSE, after one of the promoters hiked stake in the firm.
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 175.50 and a low of Rs 171.50 so far during the day. The stock had hit a 52-week high of Rs 194 on 16 September 2009 and a 52-week low of Rs 60 on 5 November 2008.
The company's equity capital is Rs 10.50 crore. Face value per share is Rs 10.
The current price of Rs 174.80 discounts the company's Q1 June 2009 annualized EPS of Rs 17.33, by a PE multiple of 10.09.
Suresh Kumar Choudhary, chairman and a promoter of Bilpower has hiked his stake to 5.31% from 5.29% after acquiring 2,164 shares through open market purchases on 25 September 2009. Increase in stake by promoters in a company helps bolster investor confidence.
Total promoters shareholding in the company is 35.52% (as on 30 June 2009).
Bilpower reported net profit of Rs 4.55 crore in Q1 June 2009 as compared to net loss of Rs 26.30 crore in Q1 June 2008. Net sales rose 17% to Rs 104.47 crore in Q1 June 2009 over Q1 June 2007.
The company is engaged in manufacturing and marketing electrical steel products and other steel products related to transformer industry. The products of the group include electrical lamination, stamping and power transformers. The group's plants are located in Gujarat, Uttaranchal and Maharashtra.
Wednesday, September 30, 2009
Aksh Optifibre recovers on preferential issue plan
Aksh Optifibre was up 0.41% to Rs 24.60 at 12:47 IST on BSE, off the session's low of Rs 23.70, after the company's board approved raising up to $20 million through issue of shares on preferential basis.
At the day's low of Rs 23.70, the stock declined 3.27% before the company made this announcement during trading hours.
The stock hit a high of Rs 25.30 and a low of Rs 23.70 so far during the day. The stock had hit a 52-week high of Rs 31.05 on 29 September 2008 and a 52-week low of Rs 8.05 on 5 March 2009.
The company's equity capital is Rs 29.48 crore. Face value per share is Rs 5.
The funds would be used for the company's services division comprising of IPTV and VoIP businesses, Aksh Optifibre said.
Aksh Optifibre reported net profit of Rs 6.73 crore in the quarter ended June 2009 as compared to net loss of Rs 4.10 crore in the quarter ended June 2008. Net sales rose 36.1% to Rs 43.19 crore in the quarter ended June 2009 over the quarter ended June 2008.
The company is engaged in manufacturing optical fibre cables in India.
At the day's low of Rs 23.70, the stock declined 3.27% before the company made this announcement during trading hours.
The stock hit a high of Rs 25.30 and a low of Rs 23.70 so far during the day. The stock had hit a 52-week high of Rs 31.05 on 29 September 2008 and a 52-week low of Rs 8.05 on 5 March 2009.
The company's equity capital is Rs 29.48 crore. Face value per share is Rs 5.
The funds would be used for the company's services division comprising of IPTV and VoIP businesses, Aksh Optifibre said.
Aksh Optifibre reported net profit of Rs 6.73 crore in the quarter ended June 2009 as compared to net loss of Rs 4.10 crore in the quarter ended June 2008. Net sales rose 36.1% to Rs 43.19 crore in the quarter ended June 2009 over the quarter ended June 2008.
The company is engaged in manufacturing optical fibre cables in India.
ICSA (India) (Formerly: Innareddy Computers)
ICSA (India) gained 3.35% to Rs 214.60 at 11:39 IST on BSE, after the company entered into the supervisory control and data acquisition business in the power sector.
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 215.80 and 208.65 so far during the day. The stock had hit a 52-week high of Rs 240 on 30 September 2009 and a 52-week low of Rs 48.35 on 13 March 2009.
The company's equity capital is Rs 9.42 crore. Face value per share is Rs 2.
The current price of Rs 214.60 discounts the company's Q1 June 2009 annualized EPS of Rs 28.92, by a PE multiple of 7.42.
The supervisory control and data acquisition (SCADA) system will help achieving load balancing and considerable improvement in voltage profiles, ICSA said. It would also facilitate proper handling of loads, efficient planning of network for future growth by using proven power system planning tools, it said.
The company expects that the SCADA opportunity in India would grow to around Rs 2500 crore in next three years.
ICSA (India) had in July 2009 secured orders worth Rs 133.92 crore from M P Poorv Kshetra Vidyut Co for commissioning new three phase 11 kilovolt (KV) lines.
ICSA (India)'s net profit slipped 0.11% to Rs 34.02 crore on 6.85% rise in net sales to Rs 305.69 crore in Q1 June 2009 over Q4 March 2009.
ICSA (India) is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines.
Promoters have pledged more than 25.32 lakh shares representing 5.38% of the equity capital of the company (as on 30 June 2009). Promoter shareholding in the company is 20.64% (as on 30 June 2009).
The company made this announcement during trading hours today, 30 September 2009.
The stock hit a high of Rs 215.80 and 208.65 so far during the day. The stock had hit a 52-week high of Rs 240 on 30 September 2009 and a 52-week low of Rs 48.35 on 13 March 2009.
The company's equity capital is Rs 9.42 crore. Face value per share is Rs 2.
The current price of Rs 214.60 discounts the company's Q1 June 2009 annualized EPS of Rs 28.92, by a PE multiple of 7.42.
The supervisory control and data acquisition (SCADA) system will help achieving load balancing and considerable improvement in voltage profiles, ICSA said. It would also facilitate proper handling of loads, efficient planning of network for future growth by using proven power system planning tools, it said.
The company expects that the SCADA opportunity in India would grow to around Rs 2500 crore in next three years.
ICSA (India) had in July 2009 secured orders worth Rs 133.92 crore from M P Poorv Kshetra Vidyut Co for commissioning new three phase 11 kilovolt (KV) lines.
ICSA (India)'s net profit slipped 0.11% to Rs 34.02 crore on 6.85% rise in net sales to Rs 305.69 crore in Q1 June 2009 over Q4 March 2009.
ICSA (India) is engaged in providing software development services and technology solutions for the power, telecommunication and other sectors. The company also provides rural electrification, construction of sub-stations and conversion of LT line to HT lines.
Promoters have pledged more than 25.32 lakh shares representing 5.38% of the equity capital of the company (as on 30 June 2009). Promoter shareholding in the company is 20.64% (as on 30 June 2009).
Ingersoll-Rand jumps on delisting buzz
Ingersoll-Rand India jumped 5.23% to Rs 333 at 11:35 IST on reports the company has revived an earlier plan to buy back shares, which could eventually lead to delisting.
The stock hit a high of Rs 333.30 and a low of Rs 326.25 so far during the day. The stock had hit a 52-week high of Rs 356.80 on 11 September 2009 and a 52-week low of Rs 200.15 on 20 February 2009.
It has an equity capital of Rs 31.57 crore. Face value per share is Rs 10.
The current price of Rs 333 discounts the company's Q1 June 2009 annualised EPS of Rs 8.32, by a PE multiple of 40.02.
US-based Ingersoll-Rand currently owns 74% in Ingersoll-Rand (India). The company had announced its plan to buy back share in March 2009. It then got delayed, as the promoter company was unwilling to participate. The buyback would have shrunk the share holding, leading to the promoters' holding going above 75%. According to the regulator's guidelines this would have mandatorily meant an open offer by the promoter.
Ingersoll-Rand India's net profit fell 63.7% to Rs 6.57 crore on a 12.1% decline in sales to Rs 85.32 crore in Q1 June 2009 over Q1 June 2008.
Ingersoll-Rand India manufactures industrial equipment. The Company's products include air compressors and stationary generators.
The stock hit a high of Rs 333.30 and a low of Rs 326.25 so far during the day. The stock had hit a 52-week high of Rs 356.80 on 11 September 2009 and a 52-week low of Rs 200.15 on 20 February 2009.
It has an equity capital of Rs 31.57 crore. Face value per share is Rs 10.
The current price of Rs 333 discounts the company's Q1 June 2009 annualised EPS of Rs 8.32, by a PE multiple of 40.02.
US-based Ingersoll-Rand currently owns 74% in Ingersoll-Rand (India). The company had announced its plan to buy back share in March 2009. It then got delayed, as the promoter company was unwilling to participate. The buyback would have shrunk the share holding, leading to the promoters' holding going above 75%. According to the regulator's guidelines this would have mandatorily meant an open offer by the promoter.
Ingersoll-Rand India's net profit fell 63.7% to Rs 6.57 crore on a 12.1% decline in sales to Rs 85.32 crore in Q1 June 2009 over Q1 June 2008.
Ingersoll-Rand India manufactures industrial equipment. The Company's products include air compressors and stationary generators.
Sundaram Clayton strikes 52-week high after setting record date for bonus
Sundaram Clayton rose 3.62% to Rs 232 at 11:02 IST on BSE, after the company fixed 12 October 2009 as the record date for a liberal 1:1 bonus issue.
The company announced the record date after market hours on Tuesday, 29 September 2009.
Meanwhile, the BSE Sensex was up 138.38 points, or 0.82%, to 16,991.29.
On BSE, 11,573 shares were traded in the counter as against an average daily volume of 4,261 shares in the past one quarter.
The stock hit a high of Rs 235 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 226 so far during the day. The stock had hit a 52-week low of Rs 53.55 on 13 March 2009.
The company's equity capital is Rs 9.48 crore. Face value per share is Rs 5.
This is the fourth bonus from Sundaram Clayton. The company had earlier issued a 1:3 bonus in 1979, followed by bonus in the ratio of 2:3 in 1987 and a liberal 1:1 bonus in 1996.
Sundaram Clayton reported a net loss of Rs 2.09 crore in Q1 June 2009 as against a net profit of Rs 6.25 crore in Q1 June 2008. Sales declined 26.5% to Rs 93.69 crore in Q1 June 2009 over Q1 June 2008.
Sundaram-Clayton manufactures automotive products. The automotive products include air driers, actuators, automatic slack adjusters and wedge brake chambers.
The company announced the record date after market hours on Tuesday, 29 September 2009.
Meanwhile, the BSE Sensex was up 138.38 points, or 0.82%, to 16,991.29.
On BSE, 11,573 shares were traded in the counter as against an average daily volume of 4,261 shares in the past one quarter.
The stock hit a high of Rs 235 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 226 so far during the day. The stock had hit a 52-week low of Rs 53.55 on 13 March 2009.
The company's equity capital is Rs 9.48 crore. Face value per share is Rs 5.
This is the fourth bonus from Sundaram Clayton. The company had earlier issued a 1:3 bonus in 1979, followed by bonus in the ratio of 2:3 in 1987 and a liberal 1:1 bonus in 1996.
Sundaram Clayton reported a net loss of Rs 2.09 crore in Q1 June 2009 as against a net profit of Rs 6.25 crore in Q1 June 2008. Sales declined 26.5% to Rs 93.69 crore in Q1 June 2009 over Q1 June 2008.
Sundaram-Clayton manufactures automotive products. The automotive products include air driers, actuators, automatic slack adjusters and wedge brake chambers.
Strides Arcolab strengthens on buzz PE funds eye stake in injectables biz
Strides Arcolab rose 2.46% to Rs 179.35 at 10:57 IST on reports private equity firms Carlyle and 3i were among those holding preliminary discussions to take a minority stake in the drug maker's injectables business.
The stock hit a high of Rs 181.40 and a low of Rs 176 so far during the day. The stock had hit a 52-week high of Rs 182.10 on 7 September 2009 and a 52-week low of Rs 60.65 on 5 March 2009.
The small-cap drug maker has an equity capital of Rs 40.16 crore. Face value per share is Rs 10.
The current price of Rs 179.35 discounts the company's Q1 June 2009 annualised EPS of Rs 60.05, by a PE multiple of 2.98.
According to reports, Strides had recently inducted New York-based financial advisory firm Lazard to bring investors on board for its injectables business, with a valuation of around $170-$200 million.
The Bangalore-based firm manufactures sterile injectables and oral dosage formulations including tablets and soft gel capsules. Injectables that are prepared in a sterile environment where the ingredients are protected against cross contamination are referred to as sterile injectables.
Strides Arcolab recently launched a generic version of Roche's anti-viral Tamiflu, used to treat H1N1 swine flu, for retail sales in pharmacies. Strides has priced its product - Starflu - at Rs 460 for a strip of ten 75-milligram capsules. The retail launch follows the government's approval for restricted retail sale of oseltamivir, the chemical name for the drug.
Strides Arcolab reported a net profit of Rs 60.13 crore in Q2 June 2009 as compared to net loss of Rs 55.96 crore in Q2 June 2008. Net sales rose 9.1% to Rs 175.41 crore in Q2 June 2009 over Q2 June 2008.
Strides Arcolab manufactures a variety of pharmaceutical products that are distributed in over 35 countries. The group's therapeutic portfolio includes steroids, cephalosporins, antibiotics, vitamins, and analgesics. Strides Arcolab also runs a contract research and manufacturing division.
Promoters have pledged 68.96 lakh shares, or 17.22% equity capital of the firm. The total promoter shareholding in the company is 25.80%. (As on 30 June 2009.)
The stock hit a high of Rs 181.40 and a low of Rs 176 so far during the day. The stock had hit a 52-week high of Rs 182.10 on 7 September 2009 and a 52-week low of Rs 60.65 on 5 March 2009.
The small-cap drug maker has an equity capital of Rs 40.16 crore. Face value per share is Rs 10.
The current price of Rs 179.35 discounts the company's Q1 June 2009 annualised EPS of Rs 60.05, by a PE multiple of 2.98.
According to reports, Strides had recently inducted New York-based financial advisory firm Lazard to bring investors on board for its injectables business, with a valuation of around $170-$200 million.
The Bangalore-based firm manufactures sterile injectables and oral dosage formulations including tablets and soft gel capsules. Injectables that are prepared in a sterile environment where the ingredients are protected against cross contamination are referred to as sterile injectables.
Strides Arcolab recently launched a generic version of Roche's anti-viral Tamiflu, used to treat H1N1 swine flu, for retail sales in pharmacies. Strides has priced its product - Starflu - at Rs 460 for a strip of ten 75-milligram capsules. The retail launch follows the government's approval for restricted retail sale of oseltamivir, the chemical name for the drug.
Strides Arcolab reported a net profit of Rs 60.13 crore in Q2 June 2009 as compared to net loss of Rs 55.96 crore in Q2 June 2008. Net sales rose 9.1% to Rs 175.41 crore in Q2 June 2009 over Q2 June 2008.
Strides Arcolab manufactures a variety of pharmaceutical products that are distributed in over 35 countries. The group's therapeutic portfolio includes steroids, cephalosporins, antibiotics, vitamins, and analgesics. Strides Arcolab also runs a contract research and manufacturing division.
Promoters have pledged 68.96 lakh shares, or 17.22% equity capital of the firm. The total promoter shareholding in the company is 25.80%. (As on 30 June 2009.)
Sensex settles above 17,000 for the first time in 16 months
30th Sept-09
Sensex settles above 17,000 for the first time in 16 months
The key benchmark indices extended gains for second straight day on optimism about Q2 September 2009 which will start trickling in from the second week of October 2009.
The BSE 30-share Sensex rose 273.93 points or 1.63% to 17126.84, its highest closing since 21 May 2008.
The S&P CNX Nifty rose 77.10 points or 1.54% to 5,083.95, its highest closing level since 21 May 2008.
Sensex settles above 17,000 for the first time in 16 months
The key benchmark indices extended gains for second straight day on optimism about Q2 September 2009 which will start trickling in from the second week of October 2009.
The BSE 30-share Sensex rose 273.93 points or 1.63% to 17126.84, its highest closing since 21 May 2008.
The S&P CNX Nifty rose 77.10 points or 1.54% to 5,083.95, its highest closing level since 21 May 2008.
Piramal Glass >>to be a multibagger
Piramal Glass :
Hope it proves to be a multibagger for me.Here also I expect QOQ improvement in performance .
CURRENT MARKET PRICE:34 (on 29-sep-09)
Hope it proves to be a multibagger for me.Here also I expect QOQ improvement in performance .
CURRENT MARKET PRICE:34 (on 29-sep-09)
» FCCBs are back in vogue
FCCB's caused a lot of pain to Indian companies in the form of forex and mark to market losses during 2008 with the unexpected depreciation in the rupee. But that bad phase seems to be forgotten rather quickly with a spurt in FCCB issues by many companies once again. As per reports, in the past four days, four companies have announced plans to raise a total of about US$ 702 m through FCCBs. Infact, even the coupon rates being offered on the same have seen a fall, going from 7% to 8% earlier this year to 4% to 4.5% recently. Despite that, we doubt if this propensity of Indian companies to expose themselves to the risk of foreign exchange rate volatility by way of FCCBs can be good for investors.
Forget Gold, buy SILVER instead...
Book on sensible investing sell over 26 million copies, Robert Kiyosaki, the author of the hugely popular Rich Dad, Poor Dad series of books and about his favorite investment recently; we thought it worthwhile to share the same with you. And guess what, his favorite investment is neither stocks nor gold, asset classes that are immensely popular with other investors currently. Instead, Kiyosaki lists silver as his favorite investment.
There could be some merit in his argument. After all, in addition to being a storehouse of wealth just as gold, silver's growing use in industries such as superconductors and microcircuits, is leading to more and more demand being created while the supply remains constrained. Hence, this could lead to prices of silver growing at a faster pace than that of gold in the future, making it a better investment than gold.
However, this is not the only asset class that Kiyosaki is bullish on. He also likes real estate as unlike stocks where investors get no leverage, buying real estate does involve debt and hence, even a small rise in real estate values could lead to a significant jump in the return that an investor earns from it. However, as Kiyosaki rightly points out, if you are playing a game of debt, you've got to be a lot smarter than the average bear out there.
There could be some merit in his argument. After all, in addition to being a storehouse of wealth just as gold, silver's growing use in industries such as superconductors and microcircuits, is leading to more and more demand being created while the supply remains constrained. Hence, this could lead to prices of silver growing at a faster pace than that of gold in the future, making it a better investment than gold.
However, this is not the only asset class that Kiyosaki is bullish on. He also likes real estate as unlike stocks where investors get no leverage, buying real estate does involve debt and hence, even a small rise in real estate values could lead to a significant jump in the return that an investor earns from it. However, as Kiyosaki rightly points out, if you are playing a game of debt, you've got to be a lot smarter than the average bear out there.
L&T can build higher capacity nuclear plants’
Naik aims to get orders worth Rs. 1,500 crore in this sector
NEW DELHI: Engineering major Larsen and Toubro on Tuesday said it could build nuclear plants capable of producing 3,000-4,000 MW of power every year.
“It is not difficult for us to build 3,000-4,000 MW nuclear plants every year,” company Chairman and Managing Director A. M. Naik told reporters here.
The company had expertise to build 1,000 MW plants and had inked memoranda of understanding with “almost all” companies keen on doing business in the country in the nuclear sector except Areva, he said, adding that L&T was in talks with Canadian nuclear firms to build 1,200 MW reactors.
Mr. Naik said the company had invested about Rs. 5,000 crore in establishing a nuclear shop at Hazira in Gujarat which could undertake all activities related to building an atomic power plant.
The company aimed to get orders worth Rs. 1,500 crore in the nuclear sector annually if it continued to do “piecemeal projects” as it did now.
The nuclear business could be worth Rs. 7,000 crore annually if we were allowed to do projects on a turn-key basis, he said.
“Let me do the whole thing (nuclear plant) and I will deliver it in five years,” Mr. Naik said. He stressed for changing the mode of execution of projects from piecemeal to turn-key.
The company carries out jobs on a component basis and claims to have the capacity to build entire nuclear plants.
In turn-key projects, a developer builds the entire facility and hands over it to the buyer in ready-to-use condition.
L&T manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors. It has also designed technology and critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors.
The company also offers onsite integration and installation of massive structure of reactor main vessel, reactor safety vessel, end shield, calandria, coolant channels assembly and reactivity devices for new and operating plants. — PTI
NEW DELHI: Engineering major Larsen and Toubro on Tuesday said it could build nuclear plants capable of producing 3,000-4,000 MW of power every year.
“It is not difficult for us to build 3,000-4,000 MW nuclear plants every year,” company Chairman and Managing Director A. M. Naik told reporters here.
The company had expertise to build 1,000 MW plants and had inked memoranda of understanding with “almost all” companies keen on doing business in the country in the nuclear sector except Areva, he said, adding that L&T was in talks with Canadian nuclear firms to build 1,200 MW reactors.
Mr. Naik said the company had invested about Rs. 5,000 crore in establishing a nuclear shop at Hazira in Gujarat which could undertake all activities related to building an atomic power plant.
The company aimed to get orders worth Rs. 1,500 crore in the nuclear sector annually if it continued to do “piecemeal projects” as it did now.
The nuclear business could be worth Rs. 7,000 crore annually if we were allowed to do projects on a turn-key basis, he said.
“Let me do the whole thing (nuclear plant) and I will deliver it in five years,” Mr. Naik said. He stressed for changing the mode of execution of projects from piecemeal to turn-key.
The company carries out jobs on a component basis and claims to have the capacity to build entire nuclear plants.
In turn-key projects, a developer builds the entire facility and hands over it to the buyer in ready-to-use condition.
L&T manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors. It has also designed technology and critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors.
The company also offers onsite integration and installation of massive structure of reactor main vessel, reactor safety vessel, end shield, calandria, coolant channels assembly and reactivity devices for new and operating plants. — PTI
Wednesday, September 23, 2009
PSU banks gallop as World Bank infuses fund
Ten public sector banks rose by 0.73% to 6.60% after the World Bank sanctioned $2 billion, or nearly Rs 10,000 crore, to the government to recapitalise public sector banks.
At 11:13 IST, the BSE Bankex was up 0.42% at 9,454.12. It outperformed the Sensex, which was down 0.27% at 16,840.79.
Indian Overseas Bank (up 6.60%), Vijaya Bank (up 5.31%), UCO Bank (up 5.09%), Bank of Maharashtra (up 4.49%), Syndicate Bank (up 2.90%), Andhra Bank (up 2.52%), Allahabad Bank (up 2.19%), Punjab National Bank (up 1.60%), Bank of Baroda (up 1.30%), Canara Bank (up 0.73%), spurted.
However, Bank of India (down 0.18%), Oriental Bank of Commerce (down 0.35%), and State Bank of India (down 0.66%), declined.
The World Bank on Tuesday, 22 September 2009, approved $4.3 billion in loans for India to bolster its economic stimulus programme and support the infrastructure sector. The loans are part of the World Bank's $14 billion in crisis-related lending for India over three years through 2012.
Of this $2 billion is for the banking sector, which will provide budgetary support to India, helping it maintain its broad economic stimulus program by enhancing the capital of select public sector banks.
The government had proposed Rs 18,000 crore to replenish the capital of state-owned banks during the current fiscal year in a bid to boost their balance-sheet muscle in line with international regulatory standards to help them lend more money to companies and individuals.
The funds would help these banks to shore up their capital adequacy ratio (CAR) above 12% till fiscal 2012 while helping them to adhere to the stringent Basel II norms.
The Reserve Bank of India (RBI) stipulates that banks need to maintain a capital adequacy ratio (CAR) of 9%, which includes tier I capital (equity and free reserves) and tier II capital or subordinated debt. However, the government had earlier announced that it would ensure that CAR of public sector banks did not fall below 12%.
According to reports, Bank of Maharashtra, Syndicate Bank, Indian Overseas Bank, Oriental Bank of Commerce, Andhra Bank and Vijaya Bank, have sought extra capital from the government.
Meanwhile, Bank of India, Canara Bank and Allahabad Bank have reportedly told the finance ministry that they may not require capital infusion from the government.
At 11:13 IST, the BSE Bankex was up 0.42% at 9,454.12. It outperformed the Sensex, which was down 0.27% at 16,840.79.
Indian Overseas Bank (up 6.60%), Vijaya Bank (up 5.31%), UCO Bank (up 5.09%), Bank of Maharashtra (up 4.49%), Syndicate Bank (up 2.90%), Andhra Bank (up 2.52%), Allahabad Bank (up 2.19%), Punjab National Bank (up 1.60%), Bank of Baroda (up 1.30%), Canara Bank (up 0.73%), spurted.
However, Bank of India (down 0.18%), Oriental Bank of Commerce (down 0.35%), and State Bank of India (down 0.66%), declined.
The World Bank on Tuesday, 22 September 2009, approved $4.3 billion in loans for India to bolster its economic stimulus programme and support the infrastructure sector. The loans are part of the World Bank's $14 billion in crisis-related lending for India over three years through 2012.
Of this $2 billion is for the banking sector, which will provide budgetary support to India, helping it maintain its broad economic stimulus program by enhancing the capital of select public sector banks.
The government had proposed Rs 18,000 crore to replenish the capital of state-owned banks during the current fiscal year in a bid to boost their balance-sheet muscle in line with international regulatory standards to help them lend more money to companies and individuals.
The funds would help these banks to shore up their capital adequacy ratio (CAR) above 12% till fiscal 2012 while helping them to adhere to the stringent Basel II norms.
The Reserve Bank of India (RBI) stipulates that banks need to maintain a capital adequacy ratio (CAR) of 9%, which includes tier I capital (equity and free reserves) and tier II capital or subordinated debt. However, the government had earlier announced that it would ensure that CAR of public sector banks did not fall below 12%.
According to reports, Bank of Maharashtra, Syndicate Bank, Indian Overseas Bank, Oriental Bank of Commerce, Andhra Bank and Vijaya Bank, have sought extra capital from the government.
Meanwhile, Bank of India, Canara Bank and Allahabad Bank have reportedly told the finance ministry that they may not require capital infusion from the government.
Piramal Healthcare in the pink of health as GSK eyes acquisition
Piramal Healthcare jumped 5.71% to Rs 376 at 12:34 IST on reports UK-based GlaxoSmithKline Plc is looking for potential acquisitions in the Indian market and has shortlisted Piramal Healthcare and Dr Reddy's Lab for the proposed acquisition.
The stock hit a high of Rs 382, which is also its 52-week high. It hit a low of Rs 357 so far during the day. The stock had hit a 52-week low of Rs 163.75 on 19 February 2009.
The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 376 discounts the company's Q1 June 2009 annualised EPS of Rs 14.18, by a PE multiple of 26.51.
GlaxoSmithKline Plc (GSK), which is looking to expand its presence in emerging markets such as India, has reportedly engaged investment bank Lazard and Co. to evaluate potential acquisitions in the country.
In February 2009, the media had reported that GSK was in talks to buy Piramal for roughly $1.5 billion (Rs 7,230 crore). However, Piramal Healthcare had denied media reports .
A senior official from Piramal Healthcare was quoted by media as saying on Monday, 21 September 2009, that the company keeps receiving proposals from merchant bankers, but that the promoters have not so far looked at those offers seriously. Rather, the company wants to grow through organic as well as inorganic route in the domestic market
Meanwhile, shares of Dr Reddy's Laboratories were up 0.20% at Rs 865 on the BSE.
According to reports, GSK's strategy to consolidate its presence in India is similar to that of its global rivals such as Pfizer Inc., Sanofi Aventis SA, and Daiichi Sankyo Co.
All these firms want to ensure sustained supply of cheap off-patent drugs or generics from India to cater to the global market. At least $70 billion worth of patented drugs will go off patent by 2012.
India's Rs 35,000 crore drug market, which is expanding by 14-15% a year, is another reason for multinationals to look seriously at the country.
Piramal Healthcare's net profit rose 45.5% to Rs 74.11 crore on a 16.5% increase in sales to Rs 569.73 crore in Q1 June 2009 over Q1 June 2008.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
The stock hit a high of Rs 382, which is also its 52-week high. It hit a low of Rs 357 so far during the day. The stock had hit a 52-week low of Rs 163.75 on 19 February 2009.
The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.
The current price of Rs 376 discounts the company's Q1 June 2009 annualised EPS of Rs 14.18, by a PE multiple of 26.51.
GlaxoSmithKline Plc (GSK), which is looking to expand its presence in emerging markets such as India, has reportedly engaged investment bank Lazard and Co. to evaluate potential acquisitions in the country.
In February 2009, the media had reported that GSK was in talks to buy Piramal for roughly $1.5 billion (Rs 7,230 crore). However, Piramal Healthcare had denied media reports .
A senior official from Piramal Healthcare was quoted by media as saying on Monday, 21 September 2009, that the company keeps receiving proposals from merchant bankers, but that the promoters have not so far looked at those offers seriously. Rather, the company wants to grow through organic as well as inorganic route in the domestic market
Meanwhile, shares of Dr Reddy's Laboratories were up 0.20% at Rs 865 on the BSE.
According to reports, GSK's strategy to consolidate its presence in India is similar to that of its global rivals such as Pfizer Inc., Sanofi Aventis SA, and Daiichi Sankyo Co.
All these firms want to ensure sustained supply of cheap off-patent drugs or generics from India to cater to the global market. At least $70 billion worth of patented drugs will go off patent by 2012.
India's Rs 35,000 crore drug market, which is expanding by 14-15% a year, is another reason for multinationals to look seriously at the country.
Piramal Healthcare's net profit rose 45.5% to Rs 74.11 crore on a 16.5% increase in sales to Rs 569.73 crore in Q1 June 2009 over Q1 June 2008.
Piramal Healthcare is one among the top ten pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract research and manufacturing services (CRAMS), followed by healthcare solutions and diagnostics. Over the past year, it has been on an acquisition spree, buying selected brands of Khandelwal Labs, Minrad International, and recently, RxElite Holdings in the US.
Tata Power 2 Mundra power units to be ready by 2012
2 Mundra power units to be ready by 2012
Tata Power will bid for domestic coal-based projects only
NEW DELHI: Tata Power on Wednesday said its first two units of 800 MW each of the Mundra Ultra Mega Power Project (UMPP) in Gujarat would be commissioned by early 2012 during the XI Plan itself. The company would bid for new UMPPs only when the market conditions were favourable. Talking to reporters, Tata Power Executive Director S. Ramakrishnan said the company would only bid for domestic coal-based projects as import of the dry fuel was quite expensive. “We would bid for the 4,000 MW ultra mega power projects only if it is not an imported coal-based project and the financial market should be good,” he added. “We are already importing coal for the Mundra project. We are sourcing it from Indonesia where we have 30 per cent stake in the coal blocks,” Mr. Ramakrishnan said.
Out of the five 800 MW units of the Mundra UMPP project, two (2x800 MW) are scheduled to come up during the current Plan (2007-12). The project entails an investment of Rs. 17,000 crore and is being funded on a debt and equity ratio of 75:25. He said the company cannot go in for another imported fuel-based project in the near future as imported coal was expensive. Tata Power with an installed capacity of 2,768 MW, plans to become a 12,000 MW company by 2014.
Tata Power will bid for domestic coal-based projects only
NEW DELHI: Tata Power on Wednesday said its first two units of 800 MW each of the Mundra Ultra Mega Power Project (UMPP) in Gujarat would be commissioned by early 2012 during the XI Plan itself. The company would bid for new UMPPs only when the market conditions were favourable. Talking to reporters, Tata Power Executive Director S. Ramakrishnan said the company would only bid for domestic coal-based projects as import of the dry fuel was quite expensive. “We would bid for the 4,000 MW ultra mega power projects only if it is not an imported coal-based project and the financial market should be good,” he added. “We are already importing coal for the Mundra project. We are sourcing it from Indonesia where we have 30 per cent stake in the coal blocks,” Mr. Ramakrishnan said.
Out of the five 800 MW units of the Mundra UMPP project, two (2x800 MW) are scheduled to come up during the current Plan (2007-12). The project entails an investment of Rs. 17,000 crore and is being funded on a debt and equity ratio of 75:25. He said the company cannot go in for another imported fuel-based project in the near future as imported coal was expensive. Tata Power with an installed capacity of 2,768 MW, plans to become a 12,000 MW company by 2014.
World Bank approved $ 4.3-billion single tranche loan for India
$ 4.3-billion single tranche loan for India
NEW DELHI: In a significant development, the World Bank on Tuesday approved ‘single tranche’ loan worth $4.3 billion for four specific projects in India aimed at strengthening select public sector banks (PSBs), the country’s power network and other infrastructure facilities, and improve water supply in Andhra Pradesh.
According to a World Bank statement here, the assistance approved by its executive board in Washington would “bolster infrastructure investments, enable public sector banks to expand credit, and strengthen power transmission networks to meet the growing demand,” for energy in the country.
Support loan
Out of the massive total assistance being extended by the multilateral lending agency, nearly 50 per cent by way of a $2-billion ‘Banking sector support loan’ is for recapitalisation of select state-owned banks with the objective of greater credit expansion which would also help in maintaining the government’s economic stimulus programme that has been put in place in the wake of the global financial crisis.
Credit growth
The loan, the media statement said, would help maintain credit growth levels, support social banking and employment growth, and help strengthen the economic recovery ahead.
Another loan worth $ 1.2 billion being extended to India Infrastructure Finance Company Ltd. (IIFCL) is to support the financing company’s role of catalysing private funding of public-private partnership (PPP) projects in infrastructure and stimulate development of a long-term local currency debt financing market.
Power deficit
To help address the problem of acute power deficit in the country, the World Bank has decided to provide a $1 billion loan to the Power Grid Corporation of India (PowerGrid) for its ‘Fifth power system development project.’
As for the loan for Andhra Pradesh, an amount of $150 million is being provided for the State’s rural water supply and sanitation project to help improve water supply and sanitation services in 2,600 villages across six districts.
In particular, a notable feature is that the development policy loans have no conditions attached and are to be disbursed in a single tranche after January 1, 2010, unless the Indian government would like to avail the assistance in instalments.
Another loan?
Moreover, another development policy loan is also to be considered by the Bank within six to seven months for disbursement in a single tranche.
Participating in a video conference interaction with the media here from Washington, World Bank Country (India) Director Roberto Zagha said: “Today’s [September 22] support will help maintain credit growth and continued infrastructure investments. Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth.”
The World Bank’s $2 billion Banking Sector Support Loan, with a 30-year maturity, would help India’s select public sector banks expand credit for infrastructure development, small and medium enterprises, and the rural economy.
Injection of capital
Dubbing the banking support loan as “injection of capital” — rather than recapitalisation as that would imply shortage of capital — Mr. Zagha pointed out that liquidity was not an issue with the country’s state-owned banks as the banking sector had performed “remarkably well.” Coming to specifics, the $1.195-billion loan granted to IIFCL is for a 28-year period and will help India achieve its vast infrastructure agenda pertaining to roads, railways, ports, airports, communication and power sectors. The loan to PowerGrid is for a 30-year period to help the nation’s power transmission utility in expanding its network, especially in the western, northern and southern regions.
NEW DELHI: In a significant development, the World Bank on Tuesday approved ‘single tranche’ loan worth $4.3 billion for four specific projects in India aimed at strengthening select public sector banks (PSBs), the country’s power network and other infrastructure facilities, and improve water supply in Andhra Pradesh.
According to a World Bank statement here, the assistance approved by its executive board in Washington would “bolster infrastructure investments, enable public sector banks to expand credit, and strengthen power transmission networks to meet the growing demand,” for energy in the country.
Support loan
Out of the massive total assistance being extended by the multilateral lending agency, nearly 50 per cent by way of a $2-billion ‘Banking sector support loan’ is for recapitalisation of select state-owned banks with the objective of greater credit expansion which would also help in maintaining the government’s economic stimulus programme that has been put in place in the wake of the global financial crisis.
Credit growth
The loan, the media statement said, would help maintain credit growth levels, support social banking and employment growth, and help strengthen the economic recovery ahead.
Another loan worth $ 1.2 billion being extended to India Infrastructure Finance Company Ltd. (IIFCL) is to support the financing company’s role of catalysing private funding of public-private partnership (PPP) projects in infrastructure and stimulate development of a long-term local currency debt financing market.
Power deficit
To help address the problem of acute power deficit in the country, the World Bank has decided to provide a $1 billion loan to the Power Grid Corporation of India (PowerGrid) for its ‘Fifth power system development project.’
As for the loan for Andhra Pradesh, an amount of $150 million is being provided for the State’s rural water supply and sanitation project to help improve water supply and sanitation services in 2,600 villages across six districts.
In particular, a notable feature is that the development policy loans have no conditions attached and are to be disbursed in a single tranche after January 1, 2010, unless the Indian government would like to avail the assistance in instalments.
Another loan?
Moreover, another development policy loan is also to be considered by the Bank within six to seven months for disbursement in a single tranche.
Participating in a video conference interaction with the media here from Washington, World Bank Country (India) Director Roberto Zagha said: “Today’s [September 22] support will help maintain credit growth and continued infrastructure investments. Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth.”
The World Bank’s $2 billion Banking Sector Support Loan, with a 30-year maturity, would help India’s select public sector banks expand credit for infrastructure development, small and medium enterprises, and the rural economy.
Injection of capital
Dubbing the banking support loan as “injection of capital” — rather than recapitalisation as that would imply shortage of capital — Mr. Zagha pointed out that liquidity was not an issue with the country’s state-owned banks as the banking sector had performed “remarkably well.” Coming to specifics, the $1.195-billion loan granted to IIFCL is for a 28-year period and will help India achieve its vast infrastructure agenda pertaining to roads, railways, ports, airports, communication and power sectors. The loan to PowerGrid is for a 30-year period to help the nation’s power transmission utility in expanding its network, especially in the western, northern and southern regions.
Monday, September 21, 2009
Godawari Power & Ispat -GPIL stocks hold potential
21 Sep 2009, 0227 hrs IST, Santanu Mishra, ET Bureau
The upsurge in stock markets saw the prices of many frontline metal stocks more than treble in the past nine months. However, quite a few stocks in the small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
The upsurge in stock markets saw the prices of many frontline metal stocks more than treble in the past nine months. However, quite a few stocks in the small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
Tata Tea stocks look promising
21 Sep 2009, 0213 hrs IST, Kiran Kabtta Somvanshi, ET Bureau
Tata Tea, one of the earliest multinational company from India is working to emerge as an international giant with a leading presence in all segments of nonalcoholic and non-carbonated beverages market.
The company been steady on its growth trajectory and is now set to get bigger and more profitable. Long-term investors are advised to but the stock on dips.
BUSINESS
Set up in 1964, tea accounts for nearly 78% of its revenue and the rest contributed by coffee and bottled mineral water. Tata Tea earns nearly two-thirds of its consolidated revenues from the overseas markets. In 2007, Tata Tea hived-off its 24 tea plantations in the north India to 50% owned Amalgamated Plantations. In the south, Tata Tea owns only two tea estates.
The company's 90% consolidated sales are contributed by branded tea and coffee, and the balance comes from plantation and extraction businesses. The company has divided its basket of brands into two classes: global and regional. While brands such as Tetley, Tata Tea, Good Earth and Himalaya are available globally, Eight O'Clock coffee is marketed in the US, Vitax and Jemca in Eastern Europe and Chakra Gold and Kanan Devan in India.
GROWTH STRATEGY
Tata Tea wants to consolidate its international reach and shed the image of a tea company. It has divested its plantations and is investing heavily in brand building. Recently it diversified into specialty and green teas, coffee, mineral water and ready-to-drink beverages, a move which is expected to yield financial benefits in 2-3 years.
Acquisitions have been an integral part of Tata Tea's growth strategy. It is focusing on markets in west Asia, South America, South Africa and the former Soviet republics including Russia.
The competition is coming from long established brands - such as Brooke Bond and Lipton in tea and Nescafé in coffee. In an effort to better manage its growing global reach, the company has divided its operations into six global regions: US, Canada and South America, Europe including UK and Poland, Russia, India-Bangladesh-Pakistan and East Asia. A change in name to reflect its new identity is also in the offing.
FINANCIALS
Net sales of the company have grown at a compounded annual growth rate (CAGR) of 10.6% since 2003-04 to touch Rs 4,848 crore in FY09. The adjusted consolidated net profit has grown at a CAGR of 2.4% over five financial years ended 2008-09. Equity dividend during the period grew at a CAGR of 18%. With cash and investments of Rs 1,440.50 crore in its books, the company has a enough war chest to fund its inorganic expansion.
In last two years, Tata Tea's operating margin has been hurt by costlier inputs, which has been partially offset by double digits hike in prices. The company expects to reach its earlier level of profitability once raw materials are cheaper or retail prices rise.
VALUATIONS
Tata Tea is trading at a consolidated price-to-earnings (P/E) multiple of 9, up from a year ago level of 3. The company has two smaller listed subsidiaries -Tata Coffee and Mount Everest Mineral Water. A merger of these three entities would improve the valuations of the combined entity.
Long-term investors can benefit from accumulating the stock on dips.
Tata Tea, one of the earliest multinational company from India is working to emerge as an international giant with a leading presence in all segments of nonalcoholic and non-carbonated beverages market.
The company been steady on its growth trajectory and is now set to get bigger and more profitable. Long-term investors are advised to but the stock on dips.
BUSINESS
Set up in 1964, tea accounts for nearly 78% of its revenue and the rest contributed by coffee and bottled mineral water. Tata Tea earns nearly two-thirds of its consolidated revenues from the overseas markets. In 2007, Tata Tea hived-off its 24 tea plantations in the north India to 50% owned Amalgamated Plantations. In the south, Tata Tea owns only two tea estates.
The company's 90% consolidated sales are contributed by branded tea and coffee, and the balance comes from plantation and extraction businesses. The company has divided its basket of brands into two classes: global and regional. While brands such as Tetley, Tata Tea, Good Earth and Himalaya are available globally, Eight O'Clock coffee is marketed in the US, Vitax and Jemca in Eastern Europe and Chakra Gold and Kanan Devan in India.
GROWTH STRATEGY
Tata Tea wants to consolidate its international reach and shed the image of a tea company. It has divested its plantations and is investing heavily in brand building. Recently it diversified into specialty and green teas, coffee, mineral water and ready-to-drink beverages, a move which is expected to yield financial benefits in 2-3 years.
Acquisitions have been an integral part of Tata Tea's growth strategy. It is focusing on markets in west Asia, South America, South Africa and the former Soviet republics including Russia.
The competition is coming from long established brands - such as Brooke Bond and Lipton in tea and Nescafé in coffee. In an effort to better manage its growing global reach, the company has divided its operations into six global regions: US, Canada and South America, Europe including UK and Poland, Russia, India-Bangladesh-Pakistan and East Asia. A change in name to reflect its new identity is also in the offing.
FINANCIALS
Net sales of the company have grown at a compounded annual growth rate (CAGR) of 10.6% since 2003-04 to touch Rs 4,848 crore in FY09. The adjusted consolidated net profit has grown at a CAGR of 2.4% over five financial years ended 2008-09. Equity dividend during the period grew at a CAGR of 18%. With cash and investments of Rs 1,440.50 crore in its books, the company has a enough war chest to fund its inorganic expansion.
In last two years, Tata Tea's operating margin has been hurt by costlier inputs, which has been partially offset by double digits hike in prices. The company expects to reach its earlier level of profitability once raw materials are cheaper or retail prices rise.
VALUATIONS
Tata Tea is trading at a consolidated price-to-earnings (P/E) multiple of 9, up from a year ago level of 3. The company has two smaller listed subsidiaries -Tata Coffee and Mount Everest Mineral Water. A merger of these three entities would improve the valuations of the combined entity.
Long-term investors can benefit from accumulating the stock on dips.
Saturday, September 19, 2009
Flawless Diamond sparkles on overseas order
Flawless Diamond (India) surged 5.19% to Rs 36.50 at 11:00 IST on BSE,on 18th Sept'09,Friday, after the company bagged an overseas order worth Rs 17 crore from Malay Impex of Hong Kong for supply of diamond and designer jewellery.
The company announced the export order during trading hours today, 18 September 2009.
Meanwhile, the BSE Sensex was down 19.57 points, or 0.12%, 16,691.54.
On BSE, 2.15 lakh shares were traded in the counter. The stock had an average daily volume of 46,581 shares in the past one quarter.
The stock hit a high of Rs 37.45 and a low of Rs 34.75 so for the day. The stock hit a 52-week high of Rs 49.95 on 22 September 2008 and a 52-week low of Rs 12.60 on 12 March 2009.
The company's equity capital is Rs 16.68 crore. Face value per share is Rs 10.
The current price of Rs 36.50 discounts the company's annualized Q1 June 2009 EPS of Rs 13.05, by a PE multiple of 2.80.
The order is to be executed within a period of 180 days.
Flawless Diamond had in July 2009 bagged two export orders aggregating Rs 32 crore for supply of diamond and designer jewellery.
Flawless Diamond (India)'s net profit fell 30.2% to Rs 5.44 crore on 26.4% fall in net sales to Rs 132.20 crore in Q1 June 2009 over Q1 June 2008.
The company is engaged in manufacturing and marketing cut and polished diamonds and rough diamonds.
The company announced the export order during trading hours today, 18 September 2009.
Meanwhile, the BSE Sensex was down 19.57 points, or 0.12%, 16,691.54.
On BSE, 2.15 lakh shares were traded in the counter. The stock had an average daily volume of 46,581 shares in the past one quarter.
The stock hit a high of Rs 37.45 and a low of Rs 34.75 so for the day. The stock hit a 52-week high of Rs 49.95 on 22 September 2008 and a 52-week low of Rs 12.60 on 12 March 2009.
The company's equity capital is Rs 16.68 crore. Face value per share is Rs 10.
The current price of Rs 36.50 discounts the company's annualized Q1 June 2009 EPS of Rs 13.05, by a PE multiple of 2.80.
The order is to be executed within a period of 180 days.
Flawless Diamond had in July 2009 bagged two export orders aggregating Rs 32 crore for supply of diamond and designer jewellery.
Flawless Diamond (India)'s net profit fell 30.2% to Rs 5.44 crore on 26.4% fall in net sales to Rs 132.20 crore in Q1 June 2009 over Q1 June 2008.
The company is engaged in manufacturing and marketing cut and polished diamonds and rough diamonds.
Monday, September 14, 2009
China files WTO complaint on US tire tariffs
14 Sep 2009, 1907 hrs IST, AGENCIES
BEIJING: Beijing filed a World Trade Organization complaint Monday over new US tariffs on Chinese tires, stepping up pressure on Washington in the latest in a series of trade disputes.
The conflict is a potential irritant as Washington and Beijing prepare for a summit of the Group of 20 leading economies in Pittsburgh on Sept. 24-25 to discuss efforts to end the worst global downturn since the 1930s.
The Chinese complaint to the WTO in Geneva triggers a 60-day WTO process in which the two sides are to try to resolve the dispute through negotiations. If that fails, China can request a WTO panel to investigate and rule on the case.
"China believes that the above-mentioned measure by the US, which runs counter to relevant WTO rules, is a wrong practice abusing trade remedies," said a Chinese government statement quoted by the official Xinhua News Agency.
Beijing's unusually prompt response to Friday's tariff decision shows the urgency China attaches to maintaining exports amid slumping global demand.
President Barack Obama approved the higher duties to slow the rapid growth of US imports of Chinese-made tires blamed for the loss of thousands of American jobs. Beijing criticized the move as a violation of free trade and called on other governments to oppose protectionism.
The United States and China, the world's largest and third-largest economies, have been embroiled in disputes over access to each others' markets for goods including steel pipe, auto parts, poultry, movies and music.
The White House said Obama acted under a provision in the US-Chinese agreement on Beijing's accession to the WTO that allows Washington to slow the rise of Chinese imports to give time to American industry to adjust.
Obama's order raised tariffs for three years on Chinese tires — by 35 percent in the first year, 30 percent in the second and 25 percent in the third.
The United Steelworkers brought the case in April and said more than 5,000 tire workers have lost jobs since 2004 as Chinese tires flooded the US market.
On Sunday, Beijing announced it would investigate complaints that American auto and chicken products are being dumped in China or benefit from subsidies. The ministry said the US imports have "dealt a blow to domestic industries."
Last month, Beijing was forced to change its tariffs on imported auto parts after losing an appeal of a WTO ruling in a case brought by the United States, the European Union and Canada. They challenged Beijing's policy of requiring automakers to use at last 40 percent Chinese-made components or pay more than double the usual tariff on imported parts.
BEIJING: Beijing filed a World Trade Organization complaint Monday over new US tariffs on Chinese tires, stepping up pressure on Washington in the latest in a series of trade disputes.
The conflict is a potential irritant as Washington and Beijing prepare for a summit of the Group of 20 leading economies in Pittsburgh on Sept. 24-25 to discuss efforts to end the worst global downturn since the 1930s.
The Chinese complaint to the WTO in Geneva triggers a 60-day WTO process in which the two sides are to try to resolve the dispute through negotiations. If that fails, China can request a WTO panel to investigate and rule on the case.
"China believes that the above-mentioned measure by the US, which runs counter to relevant WTO rules, is a wrong practice abusing trade remedies," said a Chinese government statement quoted by the official Xinhua News Agency.
Beijing's unusually prompt response to Friday's tariff decision shows the urgency China attaches to maintaining exports amid slumping global demand.
President Barack Obama approved the higher duties to slow the rapid growth of US imports of Chinese-made tires blamed for the loss of thousands of American jobs. Beijing criticized the move as a violation of free trade and called on other governments to oppose protectionism.
The United States and China, the world's largest and third-largest economies, have been embroiled in disputes over access to each others' markets for goods including steel pipe, auto parts, poultry, movies and music.
The White House said Obama acted under a provision in the US-Chinese agreement on Beijing's accession to the WTO that allows Washington to slow the rise of Chinese imports to give time to American industry to adjust.
Obama's order raised tariffs for three years on Chinese tires — by 35 percent in the first year, 30 percent in the second and 25 percent in the third.
The United Steelworkers brought the case in April and said more than 5,000 tire workers have lost jobs since 2004 as Chinese tires flooded the US market.
On Sunday, Beijing announced it would investigate complaints that American auto and chicken products are being dumped in China or benefit from subsidies. The ministry said the US imports have "dealt a blow to domestic industries."
Last month, Beijing was forced to change its tariffs on imported auto parts after losing an appeal of a WTO ruling in a case brought by the United States, the European Union and Canada. They challenged Beijing's policy of requiring automakers to use at last 40 percent Chinese-made components or pay more than double the usual tariff on imported parts.
World stocks shaken by US-China trade dispute
14 Sep 2009, 1645 hrs IST, AGENCIES
LONDON: European and Asian markets fell on Monday, shaken by news of a trade dispute between the US and China over tariffs on tyres.
Germany's DAX fell 1.4 per cent to 5,544.71 and Britain's FTSE 100 lost 1.0 percent at 4,962.90. France's CAC-40 shed 1.4 per cent to 3,683.72.
Asian indexes lost as much as 2 per cent and Wall Street was expected to fall later. Dow industrials futures were down 81 points at 9,450.00 and Standard & Poor's 500 futures slipped 9.90 points to 1,027.40.
The US decision to impose trade penalties on Chinese tyres infuriated Beijing, which condemned the move as protectionist and said it violated global trade rules.
Crucially, the dispute suggests international economic cooperation is weak ahead of the G-20 summit of rich and developing nations later this month in Pittsburgh. With U.S.-Chinese trade a key link in the global economy, investors were spooked by the potential repercussions.
Chen Deming, China's minister of commerce, said the penalties would hurt relations with the U.S. A ministry statement said President Barack Obama had given in to "U.S. domestic trade protectionism."
"Part of the reversal in the dollar and equity markets may simply reflect profit taking, but early signs of a new trade conflict between the US and China are not buoying spirits regarding the global outlook," said Daragh Maher, analyst at Calyon.
Also hurting sentiment outside the U.S. was the dollar's recent drop against world currencies like the yen, the pound and the euro — against which it hit a yearly low last week. That has hurt confidence in companies in export-heavy European and Asian economies.
A slump in commodity prices weighed on mining stocks, with Anglo American down 2.9 percent and BHP Billiton down 3.0 percent, while a drop in euro zone industrial production data reminded markets that manufacturers are not yet out of the woods.
Industrial output in the euro area fell 0.3 percent in July compared to June, which "shows that while the wider economy has probably returned to positive growth in the third quarter, the recovery will not be particularly strong," said Ben May, economist at Capital Economics.
In Asia, Japan's Nikkei 225 index took the day's biggest hit, falling 242.27 points, or 2.3 percent, to 10,202.06. Toyota, the world's largest car company, lost 2.6 percent, electronics giant Canon was off 3.4 percent and Sony dropped 2.4 percent.
Hong Kong's Hang Seng closed down 1.1 percent at 20,932.20 while Korea's Kospi shed 1 percent to 1,634.91. Australia's key index lost 1.4 percent, India's Sensex was down 0.5 percent and Taiwan's benchmark fell 1.1 percent.
Shanghai's market defied the downswing, adding 1.2 percent to 3,026.74.
Looking ahead, investors will be eyeing Obama's speech Monday about plans to wind down government measures that bailed out financial firms last year and to overhaul the country's tattered regulatory regime. He will ask the financial industry to support his overhaul, as well as take responsibility for its failings and learn to police itself. Banks and other financial services companies are expected to pay their employees huge bonuses just a year after being rescued with public money.
In New York Friday, the Dow Jones industrial average fell 0.2 percent to 9,605.41 as investors pulled out of the market following a five-day rally which left the market at its highest levels in nearly a year.
The broader Standard & Poor's 500 index 0.1 percent to 1,042.73 and the Nasdaq composite index fell 0.2 percent to 2,080.90.
Oil prices dropped in Europe, with benchmark crude for October delivery down 83 cents to $68.46 a barrel. On Friday, the contract tumbled $2.65 to settle at $69.29.
The dollar, which has tanked in recent days, rebounded modestly to 90.77 yen compared to 90.42 yen. The euro fell to $1.4540 from $1.4597.
via:E.T
LONDON: European and Asian markets fell on Monday, shaken by news of a trade dispute between the US and China over tariffs on tyres.
Germany's DAX fell 1.4 per cent to 5,544.71 and Britain's FTSE 100 lost 1.0 percent at 4,962.90. France's CAC-40 shed 1.4 per cent to 3,683.72.
Asian indexes lost as much as 2 per cent and Wall Street was expected to fall later. Dow industrials futures were down 81 points at 9,450.00 and Standard & Poor's 500 futures slipped 9.90 points to 1,027.40.
The US decision to impose trade penalties on Chinese tyres infuriated Beijing, which condemned the move as protectionist and said it violated global trade rules.
Crucially, the dispute suggests international economic cooperation is weak ahead of the G-20 summit of rich and developing nations later this month in Pittsburgh. With U.S.-Chinese trade a key link in the global economy, investors were spooked by the potential repercussions.
Chen Deming, China's minister of commerce, said the penalties would hurt relations with the U.S. A ministry statement said President Barack Obama had given in to "U.S. domestic trade protectionism."
"Part of the reversal in the dollar and equity markets may simply reflect profit taking, but early signs of a new trade conflict between the US and China are not buoying spirits regarding the global outlook," said Daragh Maher, analyst at Calyon.
Also hurting sentiment outside the U.S. was the dollar's recent drop against world currencies like the yen, the pound and the euro — against which it hit a yearly low last week. That has hurt confidence in companies in export-heavy European and Asian economies.
A slump in commodity prices weighed on mining stocks, with Anglo American down 2.9 percent and BHP Billiton down 3.0 percent, while a drop in euro zone industrial production data reminded markets that manufacturers are not yet out of the woods.
Industrial output in the euro area fell 0.3 percent in July compared to June, which "shows that while the wider economy has probably returned to positive growth in the third quarter, the recovery will not be particularly strong," said Ben May, economist at Capital Economics.
In Asia, Japan's Nikkei 225 index took the day's biggest hit, falling 242.27 points, or 2.3 percent, to 10,202.06. Toyota, the world's largest car company, lost 2.6 percent, electronics giant Canon was off 3.4 percent and Sony dropped 2.4 percent.
Hong Kong's Hang Seng closed down 1.1 percent at 20,932.20 while Korea's Kospi shed 1 percent to 1,634.91. Australia's key index lost 1.4 percent, India's Sensex was down 0.5 percent and Taiwan's benchmark fell 1.1 percent.
Shanghai's market defied the downswing, adding 1.2 percent to 3,026.74.
Looking ahead, investors will be eyeing Obama's speech Monday about plans to wind down government measures that bailed out financial firms last year and to overhaul the country's tattered regulatory regime. He will ask the financial industry to support his overhaul, as well as take responsibility for its failings and learn to police itself. Banks and other financial services companies are expected to pay their employees huge bonuses just a year after being rescued with public money.
In New York Friday, the Dow Jones industrial average fell 0.2 percent to 9,605.41 as investors pulled out of the market following a five-day rally which left the market at its highest levels in nearly a year.
The broader Standard & Poor's 500 index 0.1 percent to 1,042.73 and the Nasdaq composite index fell 0.2 percent to 2,080.90.
Oil prices dropped in Europe, with benchmark crude for October delivery down 83 cents to $68.46 a barrel. On Friday, the contract tumbled $2.65 to settle at $69.29.
The dollar, which has tanked in recent days, rebounded modestly to 90.77 yen compared to 90.42 yen. The euro fell to $1.4540 from $1.4597.
via:E.T
Sunday, September 13, 2009
Time Technoplast > Continuing to expand
14 Sep 2009, 0425 hrs IST, ET Bureau
The Mumbai-based plastic goods manufacturer Time Technoplast continues with its fast-track growth plans defying worries related to global economic growth as it initiated the acquisition of an LPG cylinder manufacturer in the Czech Republic. The $5.2 million deal is expected to consummate by end-October ‘09.
The company, which has been expanding its capacities relentlessly over the last two years, has added several new products to its portfolio such as plastic fuel tanks for automobiles, HDPE pipes, prefab structures, autodisable syringes, returnable packaging etc. This acquisition will help it manufacture another novel product for the Indian market viz. polymer compositebased LPG cylinders.
The acquisition cost appears reasonable; it is just 1.4 times the acquired company’s PBDIT of $3.75 million in ‘08. The company named Kompozit-Praha had net sales of $15 million and net profit of $1.8 million in ‘08.
Time Technoplast is also investing around $6 million in China for a greenfield unit to manufacture containers and drums.
Unlike India, where the company has a technology tie-up with Germany’s Mauser for these products, the company will be going solo in China that will enable it to introduce other products over a period of time.
Besides, the company is also expanding the capacity of packaging products in India at various locations.
The company’s 50:50 joint venture with Netherlandsbased Schoeller Arca Systems to manufacture special packaging and material handling products obtained its first order of Rs 20 crore. The JV is investing euro 10 million to set up four manufacturing plants across the country. Despite these developments, the Time Technoplast scrip has underperformed the broader market since the start of September ‘09 gaining 2.1%, as against a 4.6% gain in the Sensex.
The scrip has remained a laggard over the last one year, losing over 31.5%, while the Sensex gained 13.5%. The company is holding its AGM on 19 September in Mumbai, to approve the dividend of Rs 0.35 per share of Re 1 for FY09. At the current market price of Rs 47.30, the scrip is trading at a price-to-earnings multiple (P/E) of 12.5. The ongoing capacity expansions and the recent acquisition are likely to keep the company on a sustained growth track in the coming years.
via:E.T
The Mumbai-based plastic goods manufacturer Time Technoplast continues with its fast-track growth plans defying worries related to global economic growth as it initiated the acquisition of an LPG cylinder manufacturer in the Czech Republic. The $5.2 million deal is expected to consummate by end-October ‘09.
The company, which has been expanding its capacities relentlessly over the last two years, has added several new products to its portfolio such as plastic fuel tanks for automobiles, HDPE pipes, prefab structures, autodisable syringes, returnable packaging etc. This acquisition will help it manufacture another novel product for the Indian market viz. polymer compositebased LPG cylinders.
The acquisition cost appears reasonable; it is just 1.4 times the acquired company’s PBDIT of $3.75 million in ‘08. The company named Kompozit-Praha had net sales of $15 million and net profit of $1.8 million in ‘08.
Time Technoplast is also investing around $6 million in China for a greenfield unit to manufacture containers and drums.
Unlike India, where the company has a technology tie-up with Germany’s Mauser for these products, the company will be going solo in China that will enable it to introduce other products over a period of time.
Besides, the company is also expanding the capacity of packaging products in India at various locations.
The company’s 50:50 joint venture with Netherlandsbased Schoeller Arca Systems to manufacture special packaging and material handling products obtained its first order of Rs 20 crore. The JV is investing euro 10 million to set up four manufacturing plants across the country. Despite these developments, the Time Technoplast scrip has underperformed the broader market since the start of September ‘09 gaining 2.1%, as against a 4.6% gain in the Sensex.
The scrip has remained a laggard over the last one year, losing over 31.5%, while the Sensex gained 13.5%. The company is holding its AGM on 19 September in Mumbai, to approve the dividend of Rs 0.35 per share of Re 1 for FY09. At the current market price of Rs 47.30, the scrip is trading at a price-to-earnings multiple (P/E) of 12.5. The ongoing capacity expansions and the recent acquisition are likely to keep the company on a sustained growth track in the coming years.
via:E.T
Gold likely to touch Rs 18,000 per 10 gm by Diwali: Assocham
13 Sep 2009, 1153 hrs IST, PTI
NEW DELHI: Gold is likely to touch Rs 18,000 per 10 gram during the forthcoming festival season as the demand for the yellow metal peaks around Diwali time, according to a projection by industry body Assocham.
Gold prices is expected to increase by Rs 2,000 per 10 gram by Diwali, which is followed by a marriage season in the country, it said. Currently gold prices are hovering around Rs 16,000 per 10 gram.
"The bullion is likely to gradually see spurt in it's prices and stay around Rs 18,000 per 10 gram by Diwali," Assocham President Sajjan Jindal said.
This is due to the fact that more and more investors are flocking to take refuge to gold as an asset class as it happens to be the best bet against rising inflation, Assocham said.
The high valuations of stocks and its attendant risk have by and large motivating investors to part shift to gold as an investment class, it said
The chamber has suggested that those who want to invest in gold, should not purchase jewellery but instead buy the metal from Singapore or Dubai in form of bars. It also said buying pure gold from banks is costly because one has to pay about 25 per cent more than the market price.
NEW DELHI: Gold is likely to touch Rs 18,000 per 10 gram during the forthcoming festival season as the demand for the yellow metal peaks around Diwali time, according to a projection by industry body Assocham.
Gold prices is expected to increase by Rs 2,000 per 10 gram by Diwali, which is followed by a marriage season in the country, it said. Currently gold prices are hovering around Rs 16,000 per 10 gram.
"The bullion is likely to gradually see spurt in it's prices and stay around Rs 18,000 per 10 gram by Diwali," Assocham President Sajjan Jindal said.
This is due to the fact that more and more investors are flocking to take refuge to gold as an asset class as it happens to be the best bet against rising inflation, Assocham said.
The high valuations of stocks and its attendant risk have by and large motivating investors to part shift to gold as an investment class, it said
The chamber has suggested that those who want to invest in gold, should not purchase jewellery but instead buy the metal from Singapore or Dubai in form of bars. It also said buying pure gold from banks is costly because one has to pay about 25 per cent more than the market price.
Saturday, September 12, 2009
Anil Modi Oil Industries hits 52-week high on bonus plan
Anil Modi Oil Industries was locked at 5% upper limit at Rs 29.45 at 11:21 IST on BSE, after the company's board recommended a liberal 1:1 bonus issue.
The company made this announcement during trading hours today, 11 September 2009. This is maiden bonus from Anil Modi Oil Industries.
Meanwhile, the BSE Sensex was up 61.05 points, or 0.38%, 16,277.91.
The stock hit a high of Rs 29.45 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 28.10 so far during the day. The stock hit a 52-week low of Rs 10.03 on 22 May 2009.
The company's equity capital is Rs 4.24 crore. Face value per share is Rs 10.
The current price of Rs 29.45 discounts the company's annualized Q1 June 2009 EPS of Rs 3.40, by a PE multiple of 8.66.
Anil Modi Oil Industries' net profit tumbled 81.1% to Rs 0.36 crore on 35.7% fall in net sales to Rs 17.01 crore in Q1 June 2009 over Q1 June 2008.
The company is engaged in production of rice bran oil.
The company made this announcement during trading hours today, 11 September 2009. This is maiden bonus from Anil Modi Oil Industries.
Meanwhile, the BSE Sensex was up 61.05 points, or 0.38%, 16,277.91.
The stock hit a high of Rs 29.45 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 28.10 so far during the day. The stock hit a 52-week low of Rs 10.03 on 22 May 2009.
The company's equity capital is Rs 4.24 crore. Face value per share is Rs 10.
The current price of Rs 29.45 discounts the company's annualized Q1 June 2009 EPS of Rs 3.40, by a PE multiple of 8.66.
Anil Modi Oil Industries' net profit tumbled 81.1% to Rs 0.36 crore on 35.7% fall in net sales to Rs 17.01 crore in Q1 June 2009 over Q1 June 2008.
The company is engaged in production of rice bran oil.
Saturday, September 5, 2009
Gold prices rise to all-time high of Rs 16,000
Gold sets new peak at Rs 16k despite beginning of Shradhh
5 Sep 2009, 1712 hrs IST, PTI
NEW DELHI: Jewellers today continued buying gold despite the onset of 'Shradhh' pushing up prices to the landmark Rs 16,000 level per 10 gram in the national capital, amid positive trends in the global market where the precious metal is reigning at a six-month high.
Standard gold surged by Rs 100 at Rs 16,000 per 10 gram in the domestic market where stockists and jewellers built up their stocks despite the commencement of 'Shradhh', a fortnight considered inauspicious for making valuable buys.
Similarly, silver coins too touched a peak at Rs 31,400 per 100 pieces, up by Rs 200, backed by a steep rise in silver prices. Silver rose by Rs 250 to Rs 25,550 per kg.
Marketmen said, prices shot up despite retail customers keeping away from the market, while stockists were keen buyers preparing to meet demand for the festival and marriage season, which starts on September 18, after the end of Shradhh.
They added that the sentiment was further bolstered by firm trend in the global market where gold is trading around a six month-high of USD 1,000 an ounce.
Traders said stockist were unconcerned about Shradhh as plenty of jewellery orders were booked in advance for the coming seasons and on fears that prices may rise further.
"Customers feared the firm overseas trend and beginning of festival season may give another big push to the precious metals," All India Sarafa (Bullion) Bazar President Sheel Chand Jain said.
Another leading bullion merchant Ravi Jalan said the steep rise in gold prices in global markets was a major factor behind the current rally.
He said the market also witnessing some investor fund shifting from the uncertain equity to bullion markets.
Standard gold and ornaments surged by Rs 100 each at Rs 16,000 and Rs 15,850 per ten gram respectively. The sovereign held unchanged at Rs 12,800 per eight gram piece.
Silver ready shot up by Rs 250 to Rs 25,550 per kg and weekly-based delivery by Rs 450 to Rs 26,150 per kg.
5 Sep 2009, 1712 hrs IST, PTI
NEW DELHI: Jewellers today continued buying gold despite the onset of 'Shradhh' pushing up prices to the landmark Rs 16,000 level per 10 gram in the national capital, amid positive trends in the global market where the precious metal is reigning at a six-month high.
Standard gold surged by Rs 100 at Rs 16,000 per 10 gram in the domestic market where stockists and jewellers built up their stocks despite the commencement of 'Shradhh', a fortnight considered inauspicious for making valuable buys.
Similarly, silver coins too touched a peak at Rs 31,400 per 100 pieces, up by Rs 200, backed by a steep rise in silver prices. Silver rose by Rs 250 to Rs 25,550 per kg.
Marketmen said, prices shot up despite retail customers keeping away from the market, while stockists were keen buyers preparing to meet demand for the festival and marriage season, which starts on September 18, after the end of Shradhh.
They added that the sentiment was further bolstered by firm trend in the global market where gold is trading around a six month-high of USD 1,000 an ounce.
Traders said stockist were unconcerned about Shradhh as plenty of jewellery orders were booked in advance for the coming seasons and on fears that prices may rise further.
"Customers feared the firm overseas trend and beginning of festival season may give another big push to the precious metals," All India Sarafa (Bullion) Bazar President Sheel Chand Jain said.
Another leading bullion merchant Ravi Jalan said the steep rise in gold prices in global markets was a major factor behind the current rally.
He said the market also witnessing some investor fund shifting from the uncertain equity to bullion markets.
Standard gold and ornaments surged by Rs 100 each at Rs 16,000 and Rs 15,850 per ten gram respectively. The sovereign held unchanged at Rs 12,800 per eight gram piece.
Silver ready shot up by Rs 250 to Rs 25,550 per kg and weekly-based delivery by Rs 450 to Rs 26,150 per kg.
Thursday, September 3, 2009
K Rosaiah takes over as Andhra Pradesh CM
Konijeti Rosaiah takes over as Andhra Pradesh CM
K Rosaiah has now been sworn-in as the chief minister of Andhra Pradesh (AP) in place of late YSR Reddy who was killed in a chopper crash.
K Rosaiah is the senior most Congress leader in successive Congress governments since 1979.
Seventy seven year old Rosaiah, a low profile and non controversial leader, has held various portfolios under different chief ministers but he is most popular as the finance minister.
He, in fact, set a record by presenting as many as 15 Budgets to the Assembly. Born in July 1933 at Vemuru in Guntur district, the Commerce graduate has been active in politics since his student days in the Hindu College, Guntur.
A low profile and non-controversial leader, he was a close follower of the late parliamentarian and farmers leader Prof N G Ranga. osaiah, who belongs to the Vaishya community, served as a member of AP Legislative Council in 1968, 1974 and 1980 and became a Minister for Roads and Buildings in 1979 under Marri Channa Reddy.
Subsequently, Rosaiah served as a minister in the cabinets of T Anjaiah, Kotla Vijaya Bhaskara Reddy, N Janardhana Reddy and has been serving as a minister in the Y S Rajasekhara Reddy Cabinet since May 2004. He held portfolios like home, health, education and transport.
He also served as Andhra Pradesh Congress Committee President between 1995 and 1997 and was elected to Lok Sabha from Narsaraopet in 1998. Andhra University conferred an honorary doctorate on Rosaiah in 2007.
Tuesday, September 1, 2009
SEBI bars Austral from raising fund as I-T finds Rs 1000 cr fraud
1 Sep 2009, 2129 hrs IST, PTI
Market watchdog SEBI on Tuesday barred metallurgical coke producer Austral Coke from raising any fresh equity after the income tax department unearthed an alleged more than Rs 1,000 crore fraud in the company's transactions.
"... (SEBI) hereby prohibits Austral Coke and Projects Ltd from raising any further capital in any manner, directly or indirectly, whatsoever, till further orders," the regulator said in an order.
SEBI order comes ahead of the company's board meeting on September 3 to consider raising about Rs 960.22 crore through private placement of shares with institutions.
SEBI said that the I-T Department in June conducted raids at the business and residential premises of Austral Coke and found "bogus" transactions to the tune of Rs 1,048 crore.
The I-T department, SEBI said, had observed that a part of Rs 142.29 crore raised by the company last year through an initial public offering was used in fraudulent manner.
"... the Income Tax Department had observed that a part of the funds raised through the IPO were shown in the books of the company as utilised towards purchase of capital goods from the concerns of (one) Ajitkumar Jindal, which have been found to be bogus," it added.
The market watchdog has also ordered investigations into the buying, selling or dealing in the securities of the company.
The order said that Jindal admitted to the I-T department of having provided bogus bills for the purchase of raw material as well as plant and machinery to the company.
"Such purchases identified so far by the I-T department totalled up to Rs 553 crore ... The company has also shown sales of around Rs 495 crore ... which apparently were bogus," the order said.
SEBI further said that Austral Coke may file objections to this order and may appear for a personal hearing before it on September 9.
Market watchdog SEBI on Tuesday barred metallurgical coke producer Austral Coke from raising any fresh equity after the income tax department unearthed an alleged more than Rs 1,000 crore fraud in the company's transactions.
"... (SEBI) hereby prohibits Austral Coke and Projects Ltd from raising any further capital in any manner, directly or indirectly, whatsoever, till further orders," the regulator said in an order.
SEBI order comes ahead of the company's board meeting on September 3 to consider raising about Rs 960.22 crore through private placement of shares with institutions.
SEBI said that the I-T Department in June conducted raids at the business and residential premises of Austral Coke and found "bogus" transactions to the tune of Rs 1,048 crore.
The I-T department, SEBI said, had observed that a part of Rs 142.29 crore raised by the company last year through an initial public offering was used in fraudulent manner.
"... the Income Tax Department had observed that a part of the funds raised through the IPO were shown in the books of the company as utilised towards purchase of capital goods from the concerns of (one) Ajitkumar Jindal, which have been found to be bogus," it added.
The market watchdog has also ordered investigations into the buying, selling or dealing in the securities of the company.
The order said that Jindal admitted to the I-T department of having provided bogus bills for the purchase of raw material as well as plant and machinery to the company.
"Such purchases identified so far by the I-T department totalled up to Rs 553 crore ... The company has also shown sales of around Rs 495 crore ... which apparently were bogus," the order said.
SEBI further said that Austral Coke may file objections to this order and may appear for a personal hearing before it on September 9.
Subscribe to:
Posts (Atom)
