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The open offer by Daiichi Sankyo to Zenotech Laboratories’ shareholders will not open today, as scheduled. The Chennai High Court (Madurai Bench) has granted an interim injunction in connect with the offer, said ICICI Securities, the manager to the offer, in a filing to the Bombay Stock Exchange.
Indian mobile value added services provider OnMobile Global secured a key win by entering the Latin American market. The company has signed a long term agreement with Spanish telecom company Telefonica Internacional to provide value added services in the region. The company recently tied up with Vodafone to provide value added services to its global telecom customers, initially in emerging markets.
Continue ReadingHDFC Bank’s first quarter results at first seem to suggest all is well; with its net profit growing by 30.5% to Rs 606.1 crore. A closer look reveals that the bank’s core business is suffering from the after effects of the economic slowdown.
Continue ReadingGitanjali Gems, a jewellery maker, has acquired a stake in a group company Diamlink Inc. It announced to the Bombay Stock Exchange (BSE) that Gitanjali USA Inc, a wholly owned subsidiary, has acquired a 51% stake in New York-based Diamlink. The company has not shared details about the subsidiary’s turnover or the consideration paid.
A revival in industrial production is a healthy sign for the Indian economy, as it had turned negative in the recent past. With a question on agricultural output due to a late monsoon, it falls upon industry and services to contribute to the economy’s growth in 2009-10.
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Continue ReadingInfosys Technologies kicked off the earnings season on a positive note. Its results reflect a tough operating environment but exceeded its guidance and market expectations. The software major’s revenues declined by 2.9% over the preceding quarter to Rs 5,472 crore in the June 2009 quarter. Its net profit would have declined too but a 130% increase in other income kept net profit constant at Rs 1,915 crore. In dollar terms, its revenues declined by 0.1% sequentially and by 1.9% in constant currency terms.
Wockhardt has announced that the corporate debt restructuring cell (CDR) has approved the corporate debt restructuring package on June 30, 2009. The company has accepted the CDR package which involves restructuring of debt, release of working capital and fresh priority debt pending divestment of non-core businesses.
At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.
Income Tax
This was a big disappointment to those expecting a bagful of goodies from the Indian government, that the Union Budget 2009-10 would cut dividend distribution tax, corporate tax rates will be cut and so on. There was no change in the corporate tax rate.
Hindalco Industries, a producer of aluminium and copper, announced relaxations in covenants of a $982mn loan taken by it to finance the acquisition of Novelis Inc., a Canadian aluminium producer. Hindalco had taken the loan in November 2008.
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