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News Roundup: Subbarao Says More Stimulus Not Needed

23 May, 2009

Subbarao Says More Stimulus Not Needed – Reserve Bank of India (RBI) Governor D Subbarao today said another stimulus package could help the economy in the short-term but a sustainable recovery required the government to return to fiscal consolidation. So far, the government and the central bank have announced two packages to boost economic activity in addition to tax cuts following the Interim Budget. (Busines Standard)

R-ADAG to cancel 43 Million R-Infra Warrants, Pick Up Fresh Shares – Reliance Anil Dhirubhai Ambani Group (R-ADAG) has decided to purchase equity-related instruments amounting to 43 million shares of its power utility Reliance Infrastructure (R-Infra), while cancelling the same number of warrants it had subscribed to in January last year. R-Infra board will meet on Sunday to consider a proposal for preferential allotment of equity/equity-related instruments amounting to 43 million shares to the promoters. The company’s board will also decide the exact price of the instrument. (The Economic Times)

NTPC Forms Overseas Company for Assets Buy – NTPC Ltd has incorporated a joint venture company called International Coal Ventures Pvt Ltd (ICVL) for securing coking and thermal coal supplies, from overseas acquisition of coal mines and blocks. ICVL has been formed in association with Steel Authority of India (SAIL), Coal India Ltd (CIL), Rashtriya Ispat Nigam Ltd (RINL) and NMDC Ltd (NMDC). SAIL, CIL, RINL, NMDC and NTPC would contribute in the equity share capital of the company in the ratio of 2:2:1:1:1, respectively. (The Hindu Business Line)

McNally to Complete Acquisition of KHD’s Mining Tech Business by July End – McNally Bharat Engineering Company, a joint venture between BM Khaitan group and GP-CK Birla group, would wrap up the proposed acquisition of coal and mineral technology business of KHD Humboldt Wedag International GMBH by July 31. The financial and legal due diligence processes is expected to take a more time than usual as the deal involves separation of cement-related business, which is being retained by KHD. Meeting of the legal and regulatory requirements and approvals in five different geographies – Germany, Russia, China, South Africa and India – would also take some time. The valuation would depend on segregated businesses. (The Hindu Business Line)

Tata Realty, Diesl to Invest Rs 2,000 Crore for Logistics Parks – Tata Realty and Infrastructure Ltd (TRIL) and Drive India Enterprise Solutions Ltd (Diesl) will together invest Rs 2,000 crore over the next four to five years to develop seven-eight logistics parks. Both the companies are subsidiaries of the Tata Group.

The logistics parks will cover an area of 38.5 million sq. ft. The company is in the process of acquiring land. TRIL will own the warehouses and Diesl will be the service provider. The verticals that will be targeted by the companies are retail, FMCG, automobile, telecom and consumer durables. (The Hindu Business Line)

Unitech Sells a Fourth of its Launched Projects – Unitech Ltd, the country’s second-biggest real estate developer, has sold more than a quarter of its launched projects in the first two months of the financial year as it tweaked its product mix and lowered prices. The New Delhi-based company, which had launched 9 million square feet of residential space, has sold 2.5 million square feet (over 2,000 units). The developer has been able to garner as much as Rs 850 crore from the sale. (Business Standard)

Air India to Seek More Government Funds – Air India, which has been seeking funds to the tune of Rs 4,000 crore from the government, may be looking to increase this demand. According to sources, the airline has been asked to draft a fresh proposal for fund infusion and that the demand is likely to be much higher than the figure given earlier. (DNA Money)

GMR Infra Plans to Raise $1 Billion – GMR Infrastructure plans to raise $1 billion to fund the next phase of its growth.While it is yet to decide the specific mode, the fundraising is expected to be through a mix of debt and equity options. Sources said the company is considering three different options – preferential issue, qualified institutional placement and private placement of equity.  Details are expected to be finalised by June 9, the day the company has called an extra ordinary general meeting of shareholders to seek their approval for the proposal. (DNA Money)

Gammon Infra to Raise $100 Million – Mumbai-based Gammon Infrastructure Projects Ltd (GIPL) plans to raise $100 million in the coming months. The company has not decided on the instrument yet. It could be a qualified institutional placement (QIP) or a preferential placement. The raised funds will be used for new projects as the company had adequate liquidity for its existing projects. (DNA Money)

 


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News Roundup: Subbarao Says More Stimulus Not Needed

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