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Over 100 public issues to be launched in 2011
New Delhi, December 28
After calendar year 2010, which has seen the highest-ever public issue mobilisation by Indian companies at Rs 59,523 crore, there are at least 100 public issues waiting to hit the market in 2011 to raise Rs 90,000 crore. According to an estimate by SMC Global, the pipeline indicates total public issue volume of about Rs 90,000 crore during the calendar year 2011. Of this, Rs 50,000 crore can come from the private sector and Rs 40,000 crore from the public sector.

Surya Pharma arm buys US firm for $22 mn
Mumbai, December 28
Chandigarh-based Surya Pharmaceuticals today said its subsidiary has acquired US-based over-the-counter analgesic drug manufacturer ActivOn for $22 million (about Rs 99 crore).

Cotton traders back out of contracts
Rates touch Rs 4,700 a mound; agreements were entered into at Rs 3,000
Abohar, December 28
Due to high prices of processed cotton, a large section of traders have backed out of advance contracts, entered in May, June and July. Around 90 per cent of the total volume of cotton bales to be delivered to cotton businessmen by cotton ginning and pressing mill owners, traders and brokers of Punjab, Haryana and Rajasthan has failed to materialise.


EARLIER STORIES

PNGRB invite bids for gas pipelines
New Delhi, December 28
Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids for laying two natural gas pipelines, which will partly include the one already being laid by Reliance Industries to transport gas from its eastern offshore fields. The PNGRB has invited Expression of Interest (EoI) for a pipeline from Chennai (in Tamil Nadu) to Nellore (in Andhra Pradesh), according to an advertisement by the Board. This section is part of the 600-km Kakinada (in Andhra Pradesh) to Chennai pipeline that RIL was authorised to lay to transport natural gas from its eastern offshore KG-D6 fields. 

Telcos offer security agencies access to 3G in six months
New Delhi, December 28
Private telecom operators have offered to provide access to security agencies to their GenNext mobile services — 3G — within six months of its launch. Home Secretary Gopal K Pillai and Secretary, Department of Telecom (DoT), R Chandrashekhar discussed the issue yesterday and are likely to accept the proposal of the operators, official sources said here today. 3G mobile services mainly include voice call, video calls and data services. In the data services, operators are claiming to offer high-speed internet service but are required to offer lawful monitoring facility to the security agencies.

M&M rolls-out compact SUV
New Delhi, December 28
Mahindra & Mahindra’s new utility vehicle ‘Thar’ at its launch in New Delhi on Tuesday. The CRDe 4x4 BS-IV variant is priced at ` 5.99 lakh (ex-showroom, Delhi). Automobile major Mahindra and Mahindra Tuesday launched a compact sports utility vehicle (SUV) - Thar CRDe - targeted at off-road enthusiasts, style-seekers and even war-veterans. “Having realised the potential of this emerging segment of off-road enthusiasts and lifestyle seekers, we have launched the Thar,” said chief executive of the company's automotive division Rajesh Jejurikar.

Mahindra & Mahindra’s new utility vehicle ‘Thar’ at its launch in New Delhi on Tuesday. The CRDe 4x4 BS-IV variant is priced at ` 5.99 lakh (ex-showroom, Delhi). Tribune Photo: Manas Ranjan Bhui

I-T calls Mahindra Satyam accounts for audit
New Delhi, December 28
The I-T department has directed Mahindra Satyam, formerly Satyam Computer, which was embroiled in the multi-crore rupee accounting scam, to get its accounts for audit of two assessment years 2002-03 and 2007-08. “The company is in receipt of communication from the office of additional commissioner of Income Tax directing the company to get its accounts for the AY 2002-03 and AY 2007-08 under the Income Tax Act, 1961,” Mahindra Satyam said in a filing to the Bombay Stock Exchange.

Exim bank enhances MTN programme
Mumbai, December 28
Export-Import Bank of India, India’s premier export finance institution, has enhanced its MTN Programme from $1 billion to $2.5 billion on December 23. The MTN Programme facilitates raising of foreign currency resources in the international debt capital market on a regular basis with flexibility in terms of quantum, structure and timing. 

Amul hikes milk prices by Rs 2 a litre
Ahmedabad, December 28
The Gujarat Cooperative Milk Marketing Federation (GCCMF), which markets dairy products under the brand 'Amul', today announced a pan-India hike in milk prices by up to Rs 2 a litre.





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Over 100 public issues to be launched in 2011
Sanjeev Sharma
Tribune News Service

New Delhi, December 28
After calendar year 2010, which has seen the highest-ever public issue mobilisation by Indian companies at Rs 59,523 crore, there are at least 100 public issues waiting to hit the market in 2011 to raise Rs 90,000 crore.

According to an estimate by SMC Global, the pipeline indicates total public issue volume of about Rs 90,000 crore during the calendar year 2011. Of this, Rs 50,000 crore can come from the private sector and Rs 40,000 crore from the public sector.

From the private sector alone, there are 100 public issues in the pipeline on the basis of offer documents filed with SEBI. The indicative IPO size from these issues is to the tune of about Rs 50,000 crore.

Of this, about 35 prospectuses have already got the SEBI clearance and are waiting to hit the market. The indicative size of these 35 floats is to the tune of about Rs 35,000 crore.

Says Jagannadham Thunuguntla, strategist & head of research, SMC Global Securities, “A robust public issue calender can be expected in 2011, if market conditions remain strong”.

According to the report, offer documents for which SEBI clearance has been received and the indicative issue sizes are Jindal Power ( Rs 7200 crore), Reliance Infra Tel (Rs 5000 crore), Gujarat State Petroleum Corporation ( Rs 3067 crore), Sterlite Energy ( Rs 3000 crore), Lodha Developers ( Rs 2500 crore), Lavasa Corporation ( Rs 1663 crore), BPTP Limited ( Rs 1500 crore), L&T Finance (Rs 1500 crore), Ambience Limited ( Rs 1293 crore), Avantha Power & Infrastructure (Rs 1250 crore), IND-Barath Power (Rs 1140 crore), Raheja Universal (Rs 864 crore) among others.

In addition, there are about 65 prospectuses waiting for SEBI clearance. The indicative size of these issuances is to the tune of about Rs 15,000 crore. These include Sahara Prime City (Rs 3,450 crore), Embassy Property Developments (Rs 2,400 crore), Emaar MGF ( Rs 1,324 crore), Future Ventures ( Rs 750 crore), Kalpataru Ltd (Rs 710 crore), Micromax Informatics (Rs 426 crore), Reid & Taylor (Rs 393 crore) among others.

Adds Thunuguntla, “If market conditions remain strong, there is every reason to believe that the government will continue to be aggressive even during 2011 and pursue the target of Rs 40,000 crore of disinvestment.”

The public issue market is still relishing the gains of Coal India IPO and the mood is still upbeat, the report says.

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Surya Pharma arm buys US firm for $22 mn

Mumbai, December 28
Chandigarh-based Surya Pharmaceuticals today said its subsidiary has acquired US-based over-the-counter analgesic drug manufacturer ActivOn for $22 million (about Rs 99 crore).

“Surya Pharma’s wholly-owned subsidiary, Surya Pharmaceutical (Singapore) Pte Ltd, has acquired ActivOn, a leading OTC (over-the-counter) analgesic drug brand in the USA, with global marketing rights,” the company said in a filing to the BSE.

The acquisition was financed through a mix of internal accruals and debt from EXIM Bank, the filing added. Through the acquisition, Surya Pharma will be able to market its products in the US through ActivOn's established marketing network, which includes leading retailers like Walmart, Walgreen, CVS, Rite Aid, etc, it said.

“This acquisition will be instrumental in establishing our presence in the US markets, which would offer an attractive opportunity to launch our OTC/FMCG products using ActivOn’s distribution set-up,” Surya Pharma CEO Hariom Bhatia said. — PTI

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Cotton traders back out of contracts
Rates touch Rs 4,700 a mound; agreements were entered into at Rs 3,000
Chander Parkash
Tribune News Service

Abohar, December 28
Due to high prices of processed cotton, a large section of traders have backed out of advance contracts, entered in May, June and July. Around 90 per cent of the total volume of cotton bales to be delivered to cotton businessmen by cotton ginning and pressing mill owners, traders and brokers of Punjab, Haryana and Rajasthan has failed to materialise. The situation in cotton markets of these states reached a point, where businessmen could have been bankrupt on honouring their commitments. Hence, they preferred to default on the contract.

A similar situation was witnessed in 1994 in cotton markets of these three states when a section of businessmen declared themselves insolvent. According to market information, traders, brokers and ginning and pressing mill owners in Punjab, Haryana and Rajasthan had made advance agreements to the tune of nearly 250 lakh bales with cotton businessmen of these three states and other parts of the country.

Most of these agreements were made at rates ranging from Rs 2,850-3,500 per mound of cotton. Crisis gripped markets when the rate of the processed cotton (per mound) touched Rs 4,700. Most of the traders then found it difficult to honour commitments at these rates. Punjab Cotton Factories and Ginners Association president Bhagwan Das Bansal said: “We have worked out a formula to settle all these agreements. According to it, the rate of the processed cotton has been fixed at Rs 4,050 per mound. Every trader and ginning and pressing mill owner has been asked to work out the total loss according to this formula and then pay 40 per cent of the loss to the other party.”

He claimed that about 80 per cent of the traders, brokers and ginning and pressing mill owners were expected to fulfill their commitments according to this formula within a few weeks. He said others, who still did not want to honour their commitments as per this formula, were being advised to do as and were being cautioned against earning a bad name in the cotton business.

Meanwhile, most traders, who have suffered heavy losses, said frequent changes in policies regarding export of cotton and its yarn and low production of raw cotton in Pakistan and China, led to the very high prices.

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PNGRB invite bids for gas pipelines

New Delhi, December 28
Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids for laying two natural gas pipelines, which will partly include the one already being laid by Reliance Industries to transport gas from its eastern offshore fields. The PNGRB has invited Expression of Interest (EoI) for a pipeline from Chennai (in Tamil Nadu) to Nellore (in Andhra Pradesh), according to an advertisement by the Board. 

This section is part of the 600-km Kakinada (in Andhra Pradesh) to Chennai pipeline that RIL was authorised to lay to transport natural gas from its eastern offshore KG-D6 fields. PNGRB has similarly invited bids for a line from Kakinada to Visakhapatnam and Srikakulam in Andhra Pradesh, which form part of RIL’s under-implementation 1,100-km Kakinada to Basudevpur (in Orissa) pipeline.

The Board invited bids even through the question whether the regulator is empowered to give firms the authorisation to lay pipelines is to be decided by the Supreme Court. PNGRB had previously invited bids for 1,585-km pipeline from Mallavaram on the east coast of Andhra Pradesh to Bhilwara in Rajasthan, 1,680-km line from Mehsana in Gujarat to Bhatinda in Punjab and 740-km Bhatinda to Srinagar via Jammu line. — PTI

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M&M rolls-out compact SUV

New Delhi, December 28
Automobile major Mahindra and Mahindra Tuesday launched a compact sports utility vehicle (SUV) - Thar CRDe - targeted at off-road enthusiasts, style-seekers and even war-veterans. “Having realised the potential of this emerging segment of off-road enthusiasts and lifestyle seekers, we have launched the Thar,” said chief executive of the company's automotive division Rajesh Jejurikar.

According to him, Thar - priced at Rs 5.99 lakh (ex-showroom Delhi), is an evolved version of the company's earlier brands like Commander Jeep, CJ 340, MM 540, the Classic and the Legend. “The Thar is a manual 4x4 machine coupled with a powerful CRDe engine 77 kw (105 BHP) and drive by wire technology which is capable of providing variable speeds and acceleration,” a company executive said.

The compact SUV is powered by a 2.5 litre diesel engine with modern suspension layout with abuse resistant rear leaf springs, light and responsive integral power steering for maneuverability, and better ground clearance for off-roading on various terrains. “The cabin can seat seven people, while two rear benches can be folded to create a massive luggage area. It is available in BS-VI (Bharat Stage) variant with power steering as a standard fitment,” the company said in a regulatory filing.

The company added that the compact-SUV will be launched in rest of India by January. — IANS 

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Telcos offer security agencies access to 3G in six months

New Delhi, December 28
Private telecom operators have offered to provide access to security agencies to their GenNext mobile services — 3G — within six months of its launch. Home Secretary Gopal K Pillai and Secretary, Department of Telecom (DoT), R Chandrashekhar discussed the issue yesterday and are likely to accept the proposal of the operators, official sources said here today. 3G mobile services mainly include voice call, video calls and data services. In the data services, operators are claiming to offer high-speed internet service but are required to offer lawful monitoring facility to the security agencies.

DoT and central security agencies have already made it clear to the industry officials that unless they put in place the interception facility for security agencies, they would stop roll out of 3G services.

The industry has, however, cried foul saying the two state-owned telecom PSUs -- BSNL and MTNL -- have been offering 3G services since the last two years and these issues were prevalent then also but they were never asked to stop.

"We are only asking for a level playing field with the telecom PSUs," a senior official of mobile industry said. In fact, last week DoT had sent a letter to both Tata Teleservices and RCom asking them not to launch 3G services on commercial basis till they demonstrate lawful interception facilities. The letter had pointed about that shortcomings in interception facilities of video calling on 3G services for the agencies need to be addressed before their launch.

According to an exhaustive note sent by the Union Home Ministry to the DoT, a demonstration was organised by Reliance, Tata Teleservices and Bharti during which the law enforcement agencies pointed out that online delivery of video call intercepts "in real time" could not be carried out by any of the telecom operators

The contents of such calls were displayed only after five minutes of the completion of these calls as against the requirement of the agencies which want such details and interceptions on real-time basis, official sources said.

During the demonstration carried out by these telecom service providers, it came to light that long duration video calls, both incoming and outgoing, could not be intercepted, official sources said. "Outgoing and incoming video calls after eight minutes could not be intercepted and displayed," they said.

The service providers are pushing the contents of the calls in raw format to the server of the agencies, which require use of decoders to view and listen to them, the sources said.

The security agencies pointed out that if interception is done on a 3G handset, only noise is heard as indication of video call.— PTI

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I-T calls Mahindra Satyam accounts for audit

New Delhi, December 28
The I-T department has directed Mahindra Satyam, formerly Satyam Computer, which was embroiled in the multi-crore rupee accounting scam, to get its accounts for audit of two assessment years 2002-03 and 2007-08. “The company is in receipt of communication from the office of additional commissioner of Income Tax directing the company to get its accounts for the AY 2002-03 and AY 2007-08 under the Income Tax Act, 1961,” Mahindra Satyam said in a filing to the Bombay Stock Exchange.

In November this year, the company had disclosed a consolidated profit of Rs 23.30 crore for the July-September quarter this fiscal. In September, the company posted its first result since its founder B Ramalinga Raju admitted to fudging the accounts of the company in January 2009, which blew the lid off a multi-crore rupee accounting scam. The company was later acquired by Tech Mahindra, which rebranded it as Mahindra Satyam.

The new promoters had sought time to declare the audited results. Revenue for the first quarter stood at Rs 1,248 crore, while in the subsequent three-month period, the revenue was Rs 1,242.40 crore. Mahindra Satyam had reported a net loss of Rs 1,250 crore for the year ended March 2010, giving a first view of its financials almost two years after the scam broke out. — PTI

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Exim bank enhances MTN programme
Tribune News Service

Mumbai, December 28
Export-Import Bank of India, India’s premier export finance institution, has enhanced its MTN Programme from $1 billion to $2.5 billion on December 23. The MTN Programme facilitates raising of foreign currency resources in the international debt capital market on a regular basis with flexibility in terms of quantum, structure and timing. 

The Bank’s MTN Programme was first launched in October 2006 with a size of $ 1 billion, which has since been upsized to $ 2.50 billion. The Bank has so far issued bonds aggregating $900 million under the MTN Programme.

A part of the upsized MTN Programme will be utilised for issuance of bonds by the Bank’s branch at London.

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Amul hikes milk prices by Rs 2 a litre

Ahmedabad, December 28
The Gujarat Cooperative Milk Marketing Federation (GCCMF), which markets dairy products under the brand 'Amul', today announced a pan-India hike in milk prices by up to Rs 2 a litre.

“We have increased prices of our various brands by Re 1 to Rs two, which will come in to effect from December 30 in Gujarat and Delhi and by January 3 in other parts of the country,” GCMMF Managing Director R S Sodhi said.

“Prices of our Gold and Shakti brand will be hiked by Rs 2 per litre and Tazza and Slim and Trim by Re 1,” he said.

Post the hike, price of Amul-Gold will be Rs 34 per litre in Mumbai, Delhi, Kolkata, and in a few districts of Gujarat, prices of its Shakti brand shall be Rs 30, Taaza Rs 25 per litre and Slim and Trim Rs 23 per litre.

“In Mumbai, the prices of our Taaza brand shall only be increased by Re 1 per litre, as the price of Gold is already ruling at Rs 34 per litre,” he said.

“In Kolkata, we are hiking the prices of Gold by Rs 2 and Re 1 of Taaza brand respectively from January 3,” Sodhi said.

This is the third time in the year when milk prices have been hiked by the GCMMF, the largest milk producer in Gujarat.— PTI

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