Indian Market Weekly Report

1. STCI Buys 5.34% In Enterprise Data Services Provider
Tulip Telecom
Rs 2,854-cr debt recast for Bharati Shipyard
Reliance may get nod to invest $1.5 b in satellite fields
Varun Industries To Sell 51% In Madagascar Oil Block For
$150M
Pulses imports led to Rs 1,201-cr loss to firms.
Walt Disney to launch delisting offer for UTV Software on
January 16.
Sebi bans 7 firms from fund raising for IPO violation
GMR Infra Sells 30% In Singapore Arm To Petronas For
$38.54M
Godrej Properties sells 49% stake in subsidiary to Sun-
Apollo for Rs 45 crore
Balaji Telefilms to sell education, mobile content biz for Rs
8.37 cr
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2. Weekly Economic Review
Food inflation has fallen to its lowest in almost six years. India’s food
price index rose just 0.24% in the period to 17 December. In the week
before, it had gone up 1.81%.
India and Japan have struck a currency swap deal that could provide the
rupee some relief. The agreement was signed during a one-day visit to
Delhi by Japanese Yoshihiko Noda. Wednesday’s deal could be worth up
to 15 billion dollars and help shore up India’s currency.
And finally, while 2011 may have brought cheer in many sectors, it’s
been a disappointing year for Indian markets. The Sensex closed 0.6%
lower on Friday, which was 2011’s last trading session. At the end of a
tumultuous year, it stood at 15,454.92, down 24.6% for the whole year.
It was the first annual decline in the Sensex in three years. But analysts
are hoping 2012 will bring a rebound, thanks to lower interest rates and
better global conditions.
Also in deals, Tata Power plans to completely own its renewable energy
joint venture. The company says it will buy out BP Alternative Energy’s
entire 51% stake in Tata BP Solar. It’s not known how much the deal is
worth. Tata BP Solar makes solar cells and modules. The venture will
continue to have access to certain technologies from BP until 2013.
The Munjal group’s electric vehicles business is about to make a big
acquisition overseas. The company Hero Eco is all set to buy Ultra Motor
of the UK. But it’s not known how much the deal is worth. Ultra Motor
also makes electric vehicles. Hero Eco claims the acquisition will make it
the biggest manufacturer of two-wheeler electric vehicles in the world.
Ultra Motor is a loss-making company, so Hero Eco plans to invest
Rs450 crore over the next five years to turn the company around.
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3. STCI Buys 5.34% In Enterprise Data Services Provider
Tulip Telecom
Bank of India-controlled Securities Trading Corporation of India Ltd
(STCI) has acquired minority stake in Tulip Telecom Ltd, an enterprise
data services provider, for an undisclosed sum, according to a company
statement to the Bombay Stock Exchange.Under the deal, STCI has
Acquired 77.5 lakh shares that account for 5.34 per cent stake in Tulip
Telecom.
Rs 2,854-cr debt recast for Bharati Shipyard
The board of Bharati Shipyard Ltd on Monday agreed to restructure Rs
2,854 crore of it debt.Earlier the lenders had referred the case to the
Corporate Debt Restructuring (CDR) cell.In a notice to the stock
exchanges, the company said the board has noted and discussed the
proposal for restructuring of term/working capital debt of Rs 2,854
crore out of a total debt of Rs 3,250 crore.Bharati Shipayrd's debt had
mounted following the takeover of the Mumbai-based offshore service
company, Great Offshore, two years ago and the subsequent downturn
in the shipping market.The company said it currently, has “order book
visibility” worth Rs 6,800 crore to be executed by 2014 and is in
advance stages of completion of its two greenfield shipyards at Dabhol
and Mangalore.
Reliance may get nod to invest $1.5 b in satellite fields
The Government may on Tuesday approve Reliance Industries' $1.529-
billion investment plan for developing four satellite fields in the flagging
KG-D6 block. Sources privy to the development said the fields can
produce 10 million metric standard cubic metres a day (mmscmd) by
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4. 2016 and will help shore up output from the block, which has seen a 35
per cent drop in output in the past 15 months.
Varun Industries To Sell 51% In Madagascar Oil Block For
$150M
Diversified public-listed firm Varun Industries is selling 51 per cent
stake in its onshore oil block located in Madagascar to China’s Da Qing
Oil Field Company for $150 million (Rs 807 crore), the company has
disclosed in a statement to the Bombay Stock Exchange today.
Pulses imports led to Rs 1,201-cr loss to firms
In its first major audit of spending on food by the UPA
government, the Comptroller and Auditor General (CAG) in a
report to Parliament cited Rs 1,201-crore loss in the import of
pulses under two schemes since 2006, both failing to stabilise
prices due to a possible cartelization.
Walt Disney to launch delisting offer for UTV Software on
January 16
US-based Walt Disney will launch an offer for delisting shares of media
and entertainment firm UTV Software Communications from Indian
bourses on January 16 next year. Walt Disney plans to delist about 1.22
crore shares, representing 29.96 per cent of UTV Software's equity, and
the offer price for the shareholders has been fixed between Rs 835.03-
1,000 a share.
Blackstone Affiliate Invests $153M In DLF's Pune SEZ
An affiliate of U.S. private equity giant Blackstone has bought a firm that
owns a special economic zone in India from the country's top listed
developer DLF Ltd and its partner for 8.1 billion rupees. The deal comes
at a time when the debt-laden sector is struggling with falling property
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5. prices as rising interest rates deter residential buyers and funding for
builders becomes scarce as economic growth slows in Asia's third-
largest economy. DLF, which had net debt of more than $4 billion at the
end of September, plans to sell up to $566 million worth of assets by
March next year to cut debt, including its luxury Amanresorts chain in a
deal set to raise around $400 million.
Sebi bans 7 firms from fund raising for IPO violation
India's market regulator has banned seven companies, which recently
raised funds in initial public offers, from further accessing the
securities market and has also banned some merchant banks involved
in these issues after investigations. The seven companies include PG
Electroplast, Brooks Laboratories, RDB Rasayans, Taksheel Solutions,
Tijaria Polypipes, Onelife Capital Advisors and Bharatiya Global
Infomedia, the regulator said. Securities and Exchange Board of India
has also prohibited directors of these firms from buying, selling or
dealing in the securities market till further notice.
GMR Infra Sells 30% In Singapore Arm To Petronas For
$38.54M
GMR Infrastructure Ltd has completed the sale of 30 per cent stake in its
Singapore subsidiary GMR Energy (Singapore) Pte Ltd to Malaysian
State-run oil company Petronas Power Sdn Bhd, a subsidiary of
Petronas International Corp Ltd, for SGD 30 million ($38.54 million or
Rs 209 crore.The deal was announced in September this year but GMR
disclosed the financial details only now. Transfer of the shares to
Petronas Power was completed on December 27. Petronas also paid
SGD 19 million ($14.64 million), equivalent to the 30 per cent
shareholder loan contributed by GMR to date.
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6. Godrej Properties sells 49% stake in subsidiary to Sun-
Apollo for Rs 45 crore
Mumbai-based developer Godrej Properties has sold 49% shareholding
in its subsidiary, Godrej Premium Builders, which is developing a
project at sector 104 in Gurgaon, to Sun-Apollo India Real Estate Fund.
The private equity fund has invested Rs 45 crore out of which Rs 18.3
crore has been paid to Godrej Properties for sale of stake and the rest Rs
26.7 crore has been invested in the subsidiary company.
Balaji Telefilms to sell education, mobile content biz for Rs
8.37 cr
Production house Balaji Telefilms on Friday said it has signed a pact to
sell its media education and mobile content businesses for Rs 8.37
crore.It, however, did not disclose the buyer. Balaji Telefilms has
entered into binding business transfer agreements on December 29, to
sell media education and mobile content production businesses for a
consolidated consideration of Rs 8.37 crore.
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