News Analysis Archives - Page 3 of 5

RBI leaves rates unchanged but talks down expectations

July 28, 2009August 20, 2014Editor

The Reserve Bank of India left benchmark interest rates untouched in its quarterly credit policy statement, released today. That was as expected. But RBI Governor D. Subbarao, has made it clear that once clear signs of a recovery are evident, and if prices are ruling higher, the RBI will move swiftly to hike rates. At present, it is holding back pre-emptive action, to give room for consumers to borrow and buy and thereby generate demand for industries to grow.

Sebi kills shares with differential voting rights?

July 25, 2009August 20, 2014Editor

Sebi has introduced a new rule that will effectively kill the desire of companies to issue shares with differential voting rights. The capital market regulator has made a small amendment to the listing agreement that has a wider impact. It has said that a company shall not issue shares that have either superior voting rights or higher dividend entitlements, compared to the ordinary shares listed on the exchange. The rule is effective from July 21, 2009.

Wipro stays true to forecast, hikes September guidance

July 22, 2009August 20, 2014Editor

Wipro’s performance in the June 2009 quarter was good, with revenues falling between the range it had given in April 2009. The stock markets, however, seemed to have bargained for more, as the stock is down about 2%. Measured in constant currency terms, IT companies have reported modest performances in the June 2009 quarter, but when you translate them from currencies like pounds, euros and Australian dollars to USD and then to rupees, the effect can be quite significant.

Discretion and IPOs don’t mix well

July 12, 2009August 20, 2014Editor

India’s initial public offer (IPO) market has evolved over the years, from when the issue price was set by a government body called the Controller of Capital Issues to now where investors bid in a book-built issue to determine the price.

Tech Mahindra-Satyam: India’s first leveraged buyout?

July 9, 2009August 20, 2014Editor

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.

Steep gradient ahead: required, a steady hand

July 4, 2009August 20, 2014Editor

The railway minister has made up her mind to lean on the centre in the next few years to support her growth plans. In 2009-10, the budgetary support has been increased by Rs 5,000 crore over the interim budget figure. But its reliance on the government for funds is expected to increase, putting pressure on the government’s already strained resource position.

Tata Communications’ 2008-09 results hit by higher interest outgo

May 27, 2009August 20, 2014Editor

Tata Communications’ performance during 2008-09 was a mixed bag. Its sales increased smartly, by 20.1%, driven by an expansion in the volume of traffic it handled during the year. Its profit declined by 2.4% due to a sharp jump in interest costs.

A new government: business as usual?

May 18, 2009August 20, 2014Editor

Business as a rule loves stability. They could not have asked for a better verdict from the 2009 elections. The UPA government has come back to power, much stronger with about 260 seats in a 543-seat parliament. In the previous election, it was much dependent on a number of smaller allies, hampering effective functioning especially on the economic front.

A tough economic situation…

Ambuja Cements struggles under cost pressures

April 23, 2009August 20, 2014Editor

The Holcim group-owned cement company sold 5.8% more cement in the quarter than it did in the previous corresponding period. Exports went up by 44%, contributing to 0.28mn tonnes of the 5.1mn tonnes sold during the quarter.

Wipro barred from World Bank contracts

January 12, 2009August 20, 2014Editor

“Wipro discloses vendor status with World Bank”. That’s the headline of the release issued to the Bombay Stock Exchange. But for Satyam’s run-in with the World Bank, few would have opened the attachment. Its contents are a shocker The World Bank has declared Wipro ‘ineligible’, in June 2007, to bid for direct contracts for four years ending in 2011. Ineligible is a mild term for a ban, which is what it is. Wipro’s disclosure shows a can of worms waiting to be prised open in several parts of corporate India.