RBI expects inflation at 4% by year end; lowers rates to make borrowing cheaper
RBI’s credit policy came with some welcome measures. India’s central bank has taken the following monetary policy measures:
Continue ReadingTCS’ Q4 2009 results hit by poor business environment, outlook for the year remains weak
TCS, which reported its results yesterday, had some good things to say. It has got more clients, revenues in its financial services segment grew and a weaker rupee propped up revenue growth. But the negatives were equally strong: billing rates have dropped, demand in key segments like manufacturing, telecom and hi-tech is slowing and outlook for the year appears gloomy.
Continue ReadingHindustan Construction Company seeks equity funding
Hindustan Construction Company will seek its board’s approval to raise long term funds to meet its capital expenditure and growth plans. The agenda for the April 24 board meet was to approve its financial results. It has been expanded now, and the board will also consider the company’s plan to raise funds through an equity issue, including a rights issue.
Continue ReadingTech Mahindra shows the money, brings $581mn to complete Satyam acquisition
Satyam Computer Services has announced that Tech Mahindra has deposited $351mn in an escrow to fund the preferential allotment for a 31% stake. It has also deposited $231mn required for the 20% open offer. That completes the funding requirements for the Satyam acquisition. Tech Mahindra can now appoint four of its nominees on the Satyam board who will join the six government appointed nominees. Satyam will allot to Tech Mahindra the shares required for the 31% stake, after getting Sebi approval and fulfilment of other conditions.
Continue ReadingBajaj Allianz to start a mutual fund
Bajaj Finserv and Allianz Global Investors will set up an 49:51 joint venture to promote a mutual fund. The new company will apply to the relevant authorities, including Sebi for permission to start a new mutual fund. The JV will come up when the uptrend in stock markets is making investors wonder if the bottom is behind them.
Continue ReadingMonsoon in 2009-10 to be 96% of normal, off last year’s level
This may qualify as a near normal monsoon as per the meteorological department’s guidelines, but is lower compared to last year’s forecast of 99%. The Met has been using a new model since 2007, and last year the actual rainfall fell just 1% short of the forecast. Lesser rainfall usually raises a question mark on agricultural output. The economic impact of a poor crop has lessened as industry and services account for a larger share of GDP. But in a slowdown, a good agricultural output provides a buffer.
Continue ReadingKingfisher Airlines seeks higher corporate guarantees from UB Holdings
United Breweries Holdings is seeking shareholder to increase its exposure, in the form of financial guarantees and security, to Kingfisher Airlines from Rs 7,500 crore to Rs 12,000 crore.
Continue ReadingSatyam gets Company Law Board approval for deal, gets 9 more months to declare results
Tech Mahindra’s acquisition of Satyam Computer Services is likely to proceed smoothly, as it is a government nominated board at the helm of affairs. That was evident in the speed with which the Company Law Board approved the preferential allotment to Tech Mahindra, to give it a 31% stake in Satyam.
Tech Mahindra can appoint four nominees on Satyam’s board while the existing six government nominees will continue to hold their positions. The new directors will get the same immunity that the existing directors have from any litigation in the country.
Continue ReadingInflation nears zero: WPI at 0.18%
In recent months, industrial output and inflation have both falling. That has led to fears of deflationary conditions prevailing in the economy, an undesirable phenomenon. Some expect the RBI to lower interest rates again to revive demand. But the RBI itself wants the impact of the measures it has taken to percolate fully, before it takes more measures.
Continue ReadingArvind restructures Rs 904 crore debt; promoters to subscribe to warrants
The additional breathing space is important as the company is going through a difficult phase. In April-December 2008, revenues grew by 7.4% to Rs 1733 crore but higher material and energy costs hit margins. Its operating profit was down by a tenth though it was still a respectable figure at Rs 193 crore.