SEBI Hikes Creeping Acquisition Limit: SEBI has allowed promoters to buy up to 5% shares of their own company every year till the 75% limit is hit. The market regulator said that this creeping acquisition beyond 55% will only be through open market normal segment and not bulk deals. This move would help promoters to prevent the price from going to bottom.
Credit Info Firms May Have FDI Of Upto 49%: RBI may hike the single-entity holding limit under the FDI route in credit information companies (CICs) to 49% after a government’s request for reconciliation to RBI, since the FDI norms under the Press Note 1, 2008, and the subsequent RBI notification differ on single-entity foreign holding in such companies. CICs are companies involved in the task of collection, processing and sharing of credit information of borrowers. Credit Information Bureau of India (CIBIL) is the first company of this kind to begin operations.
Pride Lines Up Overseas Acquisition: Pride Group of Hotels is eyeing to buy a hotel in London as part of its overseas expansion strategy and is conducting due diligence. The 140 room standalone hotel is located somewhere around Kennington in central London. The acquisition, including renovation, to be funded through a mix of internal accruals and debt and private equity raised will cost the company over Rs 115 cr. Pride had received Rs 45 cr private equity funding from Kotak India Real Estate Fund in October 2007.
Rasna Buys Bangladeshi Firm: Soft drink concentrate maker Rasna has acquired Al Nisar, a distribution company in Bangladesh. The size of the acquisition is not known. Rasna sells around 28 crore glasses every year in Bangladesh in a total market size of 70 crore glasses per annum. This buy is a part of Rasna’s increasing focus on overseas markets and better desired control over distribution networks.
Unitech Sells 4 Arms In NCR To Tata Realty: Unitech has sold its four subsidiaries – owning 30 acres in Gurgaon – to Tata Realty, in lieu of a loan of Rs 1,700 cr given to it by the latter in early 2008, though Unitech said no loan has been taken from Tata Realty. There is an interest component of 10% and Unitech had repaid about Rs 1,000 cr to Tata Realty. Unitech might sell two more subsidiaries owning 25 acres in Gurgaon to Tata Realty.
Suzlon Energy Close To Get $200 Mn In PE: Suzlon Energy is close to raising about $200 mn from a private equity investor through an unlisted subsidiary within 2-3 weeks. Earlier Suzlon had announced it was suspending a planned rights share issue worth Rs 1,800 cr that would have helped it to increase its stake in Germany’s Repower. The end use of the funds is not yet known.
JP Morgan To Invest $450 Mn In India: JP Morgan India has so far committed $450 mn in private equity in real estate, infrastructure, manufacturing and financial sectors, under its overall plan to invest $1 bn across sectors in India through a fund.
Global Crisis May Lead To 1 Mn Job Cuts In Thailand: The global economic crunch may cost Thailand a million jobs next year as output will be slashed, according to Federation of Thai Industries (FTI). The industries are expected to cut their production by 20-30 % and about 900,000 to 1 mn jobs will be cut in the first quarter.
RBI Cancels Licence Of Maharashtra Co-Operative Bank: RBI has cancelled the licence of Shri S K Patil Co-operative Bank, based in Kurundwad, Kolhapur district of Maharashtra. The bank had become insolvent and all efforts to revive it in consultation with the Maharashtra Government had failed. The depositors of the bank are uncertain about Bank’s future.
BPCL Gets Shareholder Approval To Sell Pure Water:
Bharat Petroleum Corporation (BPCL) is planning to sell bottled water at its fuel retail outlets when it starts its 1,000 MW power generation, over the next three to five years. It plans to use hydrogen fuel cell technology to generate power during which chemical energy is converted into electrical energy with heat and water as by-products. One million tonnes of pure and potable water is produced for every 1,000 MW of power generated.
Haryana To Spend Rs 25k-Cr To Produce Additional 5,000 MW: Haryana government is planning to add 5000 Mega Watt (MW) of power by 2012 to the current capacity of 4,600 MW through conventional power. The additional output will require a capital outlay of Rs 25,000 cr. The state is also planning to increase the renewable energy contribution to 10 per cent in the state, for which six MoUs have been signed for setting up various renewable energy projects with a total capacity of 714.8 MW. This is set to bring investments of around Rs 240 cr before December 2009.