News Roundup: Govt Likely To Convert Rs 523Cr Debentures In IFCI


  • 04 Nov 2009

ABG Shipyard Alleges Great Offshore On Favoritism - ABG Shipyard, which is engaged in a takeover battle to acquire Great Offshore, has alleged that the board of the target company is tilted in favour of the rival bidder, Bharati Shipyard. In the letters sent to the market regulator Sebi, the company reasoned the family dynamics and the connection of Great Offshore with Bharti behind the favoritism. ABG further brought to Sebi’s notice the fact that Great Offshore did not impose a penalty of Rs 30 crore on Bharati Shipyard despite the latter’s failure to deliver an oil drilling rig on time. (Economic Times)  

Vishal Retail Signs CDR Pact For Rs 730Cr – Discount retailer Vishal Retail had signed an agreement with lenders for restructuring the terms of the chain’s Rs 730 crore debt. The company will start the corporate debt restructuring (CDR) process within the first half of November. It plans to complete the process within 100 days. Group President Ambeek Khemka also denied any pre-condition imposed by the lenders for the exit of the company’s promoter, Ramchandra Agarwal, as part of debt restructuring. (BS)

Videocon To Raise Rs 12K Cr Through Rights - Consumer durables major Videocon Industries has planned to raise Rs 1,245 crore by issuing shares on rights and preferential basis. The board further approved company plan to raise another Rs 45 crore by issuing shares on a preferential basis to an independent non-promoter investor. The proposals are now subject to shareholders’ approval. (Business Standard)


Govt Likely To Convert Rs 523Cr Debentures In IFCI - The government is exploring the possibility of converting its zero-coupon optionally convertible debentures worth Rs 523 crore in IFCI. The conversion will give the government a direct stake of 12% in the institution. As of now, the government does not have any direct ownership in the country’s oldest financial institution. State-owned insurance firms and financial institutions, such as LIC, IDBI Bank and Punjab National Bank, own around 19% in IFCI. After conversion, the combined holding of the government, along with other stated-run financial institutions, will be above 30%. (ET)

Tata Croma Draws Up Capex Of Rs 150Cr – Croma, the consumer electronics retail chain of Tata, has planned a capital expenditure of Rs 150 crore to expand its footprint in metros. The company has also planned to launch new product lines via its dedicated computing and electronics chain Croma Zip. It is targeting revenues of Rs 1,000 crore in fiscal 2010 from Rs 658 crore in 2008-09. The chain is also in the process of launching new products in smaller home appliances and wellness space. (BS)

RSPL To Go For IPO In Next Fiscal - Rohit Surfactants Pvt Ltd (RSPL), a Kanpur-based business group with interest in surfactants, leatherwear and wind energy generation, is planning to go for an Initial Public Offer (IPO) in the next fiscal year.   The company is planning to engage investment bankers for the public issue, whereby evaluating the amount of capital expected from the proposal, apart from the draft proposal to be submitted to Securities and Exchange Board of India (SEBI). (BS)


Ikya On Acquisition Radar - Ikya Human Capital Solutions, a Bangalore-based HR services firm, is likely to be a target for global HR firms planning to set up shop in India. Some of the names floating around are companies like the Dutch USG Group, Spherion, Volt, Robert Half and Michael Page from the US, and Radia from Japan who are looking to enter India and it is likely that they may look at Ikya to start their operations. However, Ikya management denied any sell out plan. (BS)

Berkshire Hathaway To Buy Santa Fe Corp - Warren Buffett's Berkshire Hathaway Inc will pay $26 billion to buy out railroad Burlington Northern Santa Fe Corp. The deal, Buffett's biggest-ever acquisition, is priced at a premium of 31.5% over BNSF's closing stock price on Monday. Berkshire Hathaway will pay $100 per share in cash and stock for the 77.4% of BNSF shares. Berkshire will also assume $10 billion of BNSF debt. The deal is expected to close in the first quarter of 2010. (DNA)

Dhunseri Tea Plans Overseas Acquisition – Kolkata-based tea manufacturer Dhunseri Tea & Industries Ltd is looking for suitable opportunities outside the country to acquire tea gardens. The company is looking for gardens with annual capacity totaling 2 million kilogram. It is exploring opportunities in Africa as well as South-East Asia, and has tied up with banks to mop up 100% acquisition cost. (Hindu Business Line)


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