Cairn India, an oil exploration company, announced that it has raised $1.6bn of loans, or about Rs 7,500 crore, for its Rajasthan oil project. The debt is split between $750mn of foreign debt and $850mn of domestic debt. Standard Chartered Bank and International Finance Corporation have funded the foreign component to the tune of $500mn and $250mn respectively. The $850mn domestic debt has been underwritten by the State Bank of India. This would be a syndicated debt arrangement, it appears. Continue Reading →
Cement
Grasim-Ultratech cement businesses to be consolidated
|
Grasim Industries, the Aditya Birla group flagship, announced the restructuring of its cement business. The company’s board met today to consider a restructuring proposal, which has been widely reported in the media as pertaining to consolidation of its cement business.
Chemicals
Tata group to hike stake in Rallis India to over 50%
|
In recent months, Tata Chemicals had consolidated its stake in Rallis India by buying out stakes held by other Tata group companies like Tata Tea. Its stake in the company now is about 45% but it plans to increase it further beyond the 50% mark. Rallis India has announced a preferential allotment in which Tata Chemicals will buy 9.8 lakh shares in Rallis, spending about Rs 80-85 crore, the final figure depending on the price at which the shares are issued. The total group stake in Rallis India after the preferential allotment will be 50.2%.
Companies
What could have saved the Bharti Airtel-MTN deal?
|
Bharti Airtel and MTN were unable to convince the South African government to accept their cross-border merger proposal. The government did not object to the merger per se but to the structure, which was outside the current regulatory environment. The two companies had proposed a structure, which ostensibly involved MTN taking up a stake in Bharti by subscribing to ADRs/GDRs. Bharti would in turn take up a stake in MTN, which was a direct transaction.
Companies
Sesa Goa to raise Rs 6,000 crore, for expansion and acquisitions
|
Sesa Goa, an Rs 4,960 crore turnover producer of iron ore and pig iron, has lined up a massive fund raising plan. The company, owned by Anil Agarwal-promoted Vedanta Resources, will seek shareholders approval in an extraordinary general meeting to raise up to Rs 6,000 crore through foreign currency convertible bonds, ADRs/GDRs, qualified institutional placement of equities, non convertible debentures, warrants or any other instrument. Companies take a blanket approval from shareholders giving them the flexibility to raise funds at the right time using the appropriate instrument.
Continue Reading →
Economy+Policy
Sebi tightens open offer exemption rules
|
Companies
Reliance Infratel revives IPO plans
|
Reliance Infratel, a subsidiary of Reliance Communications, has revived its IPO plans. Over a year ago, the telecom tower infrastructure company had filed a draft red herring prospectus with Sebi. The issue was postponed as stock markets fell, after the global financial crisis hit Indian equities. The company was planning to raise about Rs 6,000 crore through the IPO at that point. Continue Reading →
Companies
Mahindra Satyam spreads Diwali joy, reverses pay cuts
|
Satyam Computer Services (rebranded as Mahindra Satyam) today announced that it will restore variable pay to all its employees. The decision will win the hearts of all Satyam’s employees, who were devastated by the scam. After the relief that came with Tech Mahindra acquiring the company, getting back their monetary benefits will be a boost. Continue Reading →
Companies
IL&FS takes control at Maytas Infra
|
The government-nominated board of directors of Maytas Infra met today to consider a buyout proposal for the company. The company has said that it has received a proposal to substitute the existing promoters, the Ramalinga Raju family, and take over management control. The board has forwarded this proposal to the Company Law Board for appropriate directions.
Companies
Power project orders worth Rs 40,000 crore in sight
|
Power plant suppliers in India and abroad will soon be submitting bids for a massive power plant order. The government’s Cabinet Committee on Infrastructure has approved bulk ordering for 4 large power projects. These power plants will be built using supercritical technology. The government announced this in a statement released yesterday.