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News Roundup: LIC Raises its Stake in Over 11 Firms

15 January, 2009

Govt. Allows 100% FDI for Facsimile Editions of Foreign Newspapers – The government has allowed up to 100% foreign direct investment (FDI) in the facsimile editions of the foreign newspapers. According to the new FDI norms issued by the commerce ministry for the facsimile editions, up to 100% FDI is allowed in facsimile editions of international newspapers provided the foreign investment in the Indian subsidiary is by the owner of the original foreign newspaper. The policy also states that such a publication can be undertaken only by an entity incorporated or registered in India under the provisions of the Companies Act, 1956. Earlier, the print media policy allowed only up to 26% foreign investment, including the FDI cap. (Business Standard)

LIC Raises its Stake in Over 11 Firms – Life Insurance Corporation of India (LIC) has increased its stake in at least 11 companies beyond the permissible 10 per cent limit for equities. In August, the Insurance Regulatory and Development Authority (IRDA) had capped a life insurer’s exposure to a single company at 10% and LIC had subsequently sought a review. Though IDRA has not yet relaxed the norms, LIC has not diluted its holdings in many blue-chip stocks; instead it has used the lower valuations to raise its stake during the third quarter. (Business Standard)

Omaxe to Reschedule Debt to Be Repaid by March – Omaxe, the real estate company is talks with five banks for rescheduling some of its debt to be repaid by March. The firm is looking at rescheduling around Rs 150-200 crore of loan repayments. Besides, the company is also looking to reschedule loans due for repayments by March, 2010. The move comes in the wake of Reserve Bank of India’s recent decision to allow banks to restructure loans taken for commercial real estate without turning them in to non-performing assets. (Business Standard)

NPCIL to Raise Rs 50,000 Crore Via Tax free Bonds – India’s nuclear power corporation, NPCIL is planning to raise Rs 50,000 crore through tax-free bonds to realise its target of 22,000 mega watts by 2022. The Nuclear Power Corporation of India (NPCIL) plans to raise the money by 2011 through tranches of tax-free bonds. The Atomic Energy Commission has sent a proposal in this regard to the Prime Minsiter’s Office. The corporation currently has cash reserves of about Rs 10,000 crore. (The Economic Times)

R-Cap Gets NHB Approval for Setting Up Housing Finance Company – Reliance Capital (R-Cap), promoted by Anil Ambani, has got the approval from National Housing  Bank (NHB) for setting up a separate housing finance company.  The financial services firm had also got an approval from RBI for separating the housing finance arm from its existing consumer finance business. Initially R-Cap will focus on giving housing loans in metros and as business grows, it will go to smaller cities. (The Economic Times

Future Generali Promoters to Invest Rs 335 Crore – The joint venture companies of the Future Group and Italy-based Generali Group are looking at a total premium income of Rs 1,000 crore by March 2010. The promoters will infuse an additional Rs 335 crore into the equity of insurance ventures by March 2009. The two 74:26 joint ventures floated by the groups include an insurance company, named Future Generali India Life Insurance Company and a general insurance firm, Future Generali India Insurance. The promoters will infuse an additional Rs 265 crore into the equity of the company, while another Rs 70 crore will go into the equity of the general insurance arm. The infusion will be made in equal proportion of the promoters’ holdings. (The Economic Times)

DLF May Start 5 SEZs After 2010 Owing to Fund Crunch – DLF may start may start five of its SEZs after 2010 on an expected revival in demand for real estate. It had recently asked the government to cancel the approval for an IT special economic zone (SEZ) near New Delhi. The proposed SEZs are in Khurda district in Orissa, Kancheepuram in Tamil Nadu, Kolkata in West Bengal, Sonepat in Haryana, Gandhinagar in Gujarat among others. DLF will develop the SEZs in a phased manner, completing the already started SEZs in 2010. It would then look at the other SEzs. DLF is already developing five SEZs — Gurgaon (two), Hyderabad, Chennai, Nagpur — expected to be completed by 2010. The company is planning to make a total investment of Rs 40,000 crore in its 10 SEZs. (Business Standard)

Trivitron Medical Systems and Vision Engineering Enter JV – Trivitron Medical Systems, Healthcare products manufacturer and Vision Engineering, X-ray machines maker,   have entered into a 51:49 joint venture agreement to set up a new manufacturing facility in Pune. The JV seeks to generate Rs 100 crore in revenues by 2011. The joint venture gives Trivitron a controlling stake in vision Engineering, which manufatcures fully Indigenised advanced X-ray machine. Vision Engineering already has two manufacturing units in Pimpri and Tathawade near Pune. The joint venture aims at expanding these two units in addition to setting up a new facility. Trivitron has already started working on a medical equipments park in Chennai. (Business Standard)

RIL Promoters Hike Stake to 49% – Reliance Industries’ (RIL) promoters have increased their stake in it to 49% as of the December quarter this financial year. The promoters had bought 12 crore shares, amounting to over a 49% stake in the company, during the period between September and December 2008. For the quarter ended December 31, promoters of RIL hold 77,16,98,164 shares amounting to a 49.03 per cent stake in the company, while in the September quarter they had 65,12,58,164 shares, a 44.80 per cent stake. (Business Standard)

Siemens to Buy its IT Arm for Rs 449 Crore – Siemens Information Systems (SISL), Siemens’ wholly owned IT subsidiary will be transferred to the parent, Siemens AG, in a deal worth Rs 449 crore. The subsidiary derives 70% of its revenues from the parent. In the accounting year ended September 30, 2008, SISL’s revenues stood at Rs 994 crore and posted a profit before tax of Rs 73 crore compared with revenues of Rs 1,023 crore and PAT of Rs 160 crore in the previous year. Motilal Oswal Securities and Kotak Securities in their recent reports raised a red flag about the decision to sell the IT subsidiary to the parent company. Both broking firms pointed out that Siemens Public Communication Networks, another subsidiary of Siemens, which was sold to the foreign parent, had witnessed a decline in margins prior to the sale. (The Economic Times)

Maytas Infra in Talks to Sell Stake in Projects – Maytas Infra, the beleaguered infrastructure company, is in talks with two Hyderabad firms for a potential sale of projects, worth thousands of crores, awarded to it. Maytas Infra is in discussions to sell its interests in the projects to privately held Ramky Infrastructure and Nagarjuna Construction Company. The move comes in the wake of the uncertainty about Maytas Infra’s ability to raise funds post the revelation of the accounting fraud at Satyam.  Maytas Infra is run by the Satyam’s disgraced founder B Ramalinga Raju’s son. Maytas Infra has orders worth over Rs 13,000 crore  and needs an estimated Rs 1,200-1,300 crore in working capital for its ongoing projects. (The Economic Times)

 

 


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News Roundup: LIC Raises its Stake in Over 11 Firms

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