Tata Steel Secures Rs 2,000 Crore Loan From LIC – Tata Steel has secured a Rs 2,000-crore loan from Life Insurance Corporation, which will help the world’s fifth-largest steel producer make additional equity infusions into its UK subsidiary. LIC, India’s largest financial institution, will subscribe to Tata Steel’s non-convertible debentures (NCD) that carry an interest rate of 10.5%. Tata Steel plans to raise Rs 3,000 crore through the NCD issue. The proceeds of the NCD, along with the existing cash balances available with Tata Steel, will be used to enhance the capital base of Tata Steel UK. (The Economic Times)
BWIR to Acquire Italian Software Firm Think3’s Engineering Services Unit – Engineering services outsourcing firm Barry-Wehmiller International Resources (BWIR), which has a major part of its operatopns in Chennai, has entered into a deal to acquire think3 of Milan, Italy, to acquire think3’s Engineering Services Division. T hink3 is a leading player in CAD, styling and PLM software market with more than 30 years of experience in the field. (Domain-b.com)
Unitech Promoters to Infuse Rs 1,000 Crore – The promoters of Unitech plan to raise their stake through conversion of warrants worth Rs 1,000 crore over the next 18 months, as they look to shore up their shareholding in the real estate company that has slipped to 51%. Unitech’s board, which met on Monday, approved the issue of warrants to the promoters ‘on preferential basis’. (The Economic Times)
Punj Lloyd to exit Realty Business, To Sell Stake in Real Estate JV to Partner – Engineering and construction company Punj Lloyd is exiting real estate business by ending its two-year-old joint venture with NCR-based realty firm Ramprastha group. Ramprastha group will buy Punj Lloyd’s 50% stake in the joint venture company that was supposed to develop 29-acre residential project in Ghaziabad. According to Punj Lloyd, a bad real estate environment had prompted this decision. The company will continue to take housing construction orders, but had abandoned its ambition to become a developer. (The Economic Times)
Tech Mahindra May Restate Satyam Accounts For Only One Year – Tech Mahindra, the new owner of Satyam Computer Services, is exploring option of restating accounts of the beleaguered IT firm for the past one year, instead of the preceding six years. This would enable Satyam to participate in tenders for projects that need proof of financial viability. Global audit firms KPMG and Deloitte were given the mandate to restate Satyam’s accounts, after the firm’s defamed founder confessed to inflating profit by fudging the books. (The Economic Times)
SEBI Plans To Tweak IPO, QIP, Rights Issue Norms – Raising funds from the bourses may soon become a simpler, shorter process, as the market regulator plans an overhaul of existing norms, taking them closer to standard global practices. the Securities & Exchange Board of India (Sebi) will rework the norms for instruments such as qualified institutional placements (QIPs), initial public offers (IPOs) and rights issues to enable companies to raise capital quickly, mitigating the risks arising out of sudden changes in market sentiment. The proposals were discussed at a meeting of the Primary Market Advisory Committee on Monday. (The Economic Times)
Tata Motors Taps LIC to Raise Rs 1,250 Crore – Tata Motors on Tuesday raised Rs 1,250 crore by selling non-convertible debentures (NCDs) to Life Insurance Corporation of India (LIC). The NCDs bear a coupon of 10%, and have a maturity of seven years. The debt is part of a larger fund-raising programme to refinance the bridge loan taken at the time of the Jaguar Land Rover acquisition. (The Economic Times)
Dr Reddy’s to Invest Rs 750 Crore in Two SEZs – Dr Reddy’s Laboratories (DRL), the second largest drug maker in the country, would invest about Rs 750 crore ($150 million) in setting up two special economic zones (SEZs) – one in Visakhapatnam and another in Hyderabad. Each SEZ will be spread over 250 acres and the land acquisition process has been completed. While the SEZ at Visakhapatnam would be for finished dosages, the Hyderabad one would be for chemical products and intermediates. The company was seeing a growth in volumes as many drugs would go off-patent next year. ()
Promoters to Invest Rs 575 Crore in AB Nuvo – Kumar Mangalam Birla and other promoters will invest around Rs 500-575 crore this year into Aditya Birla Nuvo, which will be used to reduce the company’s debt. The company’s board of directors had on Monday decided to issue 1.85 crore warrants, convertible to an equal number of shares, to the promoters, the Aditya Birla family. If the shareholders approve of the deal on June 17, promoters will invest Rs 250 crore immediately as the upfront deposit for the issue of the warrants. Post that, they will invest Rs 300- Rs 325 crore during the remaining part of the year by converting some of the 1.85 crore warrants. (DNA Money)
Tatas Re-Enter Home Finance Business – The Tata Group is set to re-enter the housing finance business, which it had exited over six years ago. The new business will be part of the group’s NBFC business under Tata Capital and will be operated through a wholly owned subsidiary, Tata Capital Housing Finance. The group had exited the business earlier as Tata Finance was scaling down operations. owever, with the home finance business registering a compounded annual growth rate of around 18% over the past few years, the group decided to re-enter the segment. Tata Capital Housing has already received a certificate of registration from the National Housing Bank (NHB) and intends to have a network of 30 branches across the country in the next 12 months. (DNA Money)
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