NEWS ON COMPANIES

Wipro promoter Azim Premji will invest Rs 80 crore to acquire a stake in a company floated by Jagdish Khattar, former MD of Maruti Suzuki India. Khattar, who floated Carnation Auto, plans to invest Rs 1,000 crore in the next five years to launch a countrywide multi-brand automobile sales and service network. Wipro shares ended down 1.01 per cent at Rs 339.65.

Mahindra & Mahindra has created a trust which would hold 8.7 per cent stake in the company, after the merger of subsidiaries Punjab Tractors and Mahindra Holding Finance with itself. The trust has already acquired 4.96 per cent in M&M following the merger of Mahindra Holding Finance with itself. Its holding will go up to 8.7 per cent after the merger of Punjab Tractors with M&M. The merger of Punjab Tractors is expected to be completed next month. Shares of the utility vehicle major ended higher by 1.43 per cent at Rs 509.25 on BSE Tuesday.


Reliance Industries will sell oil from its Krishna-Godavari basin at a discount of around $5 per barrel to Brent crude oil. The company may add around $300 million (Rs 1,400 crore) to its turnover in the December quarter on the sale of KG oil. It had reported sales of Rs 41,579 crore in the first quarter ended June 2008. Shares of the index heavyweight closed at Rs 1946.35, up 0.80 per cent.

Uniflex Cables has reported net loss to Rs 14.30 crore for the quarter ended June 30, 2008 against a net profit of Rs 59.7 lakh for the same quarter in 2007. Net sales fell 14.56 per cent to Rs 22.16 crore in Apr-Jun quarter of 2008 compared with Rs 25.94 crore in the corresponding quarter of previous year. Despite this, the company’s shares ended up 1.96 per cent to Rs 18.20 on BSE.
Dena Bank has raised lower tier II bonds (Series X) capital funds to augment long-term resources and to meet its future capital adequacy ratio requirements in the nature of debentures on private placement basis for Rs 300 crore including green shoe option. The bonds carry a coupon of 11.20 per cent per annum and are redeemable after 127 months from the deemed date of allotment. The issue was fully subscribed to. The bank excised the green shoe option and retained the subscribed amount. The company shares ended up 4.18 per cent to Rs 41.10 on BSE.

Ashok Leyland has signed a joint venture agreement with John Deere, for manufacturing and marketing of construction equipment The JV seeks to commence production by early 2010 and will initially roll out backhoes and four-wheel-drive loaders. The range will subsequently be expanded to include a full line of construction equipment. Beyond India, the largest backhoe market in the world in 2007, the products will be exported to both Ashok Leyland and John Deere markets. The JV will build a manufacturing facility in India and is currently evaluating site location. Ashok Leyland shares ended up 2.12 per cent to Rs 26.50 on BSE.