Tata Motors Defaults on Vendor Dues of Over Rs 1,200 Crore – Tata Motors, the largest automobile company in India, is facing payment problems with vendors and suppliers. The company owes more than Rs 1,200 crore in unpaid dues to its suppliers accumulated over the past few months. According to the company sources, company is trying to cope with this extraordinary situation with some help from its vendors. Vendors are negotiating for part payments to tide over working capital needs. (The Economic Times)
Dalmias to Buy Jain’s 8% in GHCL – Dalmias, the owners of Gujarat Heavy Chemicals (GHCL), are in negotiations to buy the 8% stake owned by the individual investor Pramod Jain. Mr Jain, who was last week appointed additional director in the company, had challenged the re-appointment of the GHCL co-promoter Sanjay Dalmia as the chairman of the firm in September 2008. If such a stake sale happens, it will put to rest speculations of a possible takeover attempt led by Jain. GHCL is in discussions with several shareholders who want to sell their stake, including Promod Jain. Jain, however, has denied that he wants to sell his shares. official announcement about an amicable settlement between Mr Jain and the company is expected to be made in the next few days. According to sources, there is an understanding that the promoters will buy out Jain’s stake at around Rs 75 per share for which they will have to shell out around Rs 60 crore. (The Economic Times)
Dish TV, WWIL Shares Rise on Talk of Foreign Investor – Shares of Wire and Wireless (India) Ltd (WWIL) and Dish TV India Ltd, the two cable television distribution firms of the Essel group, rose sharply on the speculation that the media maven is bringing in a foreign investor. WWIL shares leapt 77.43% to end Wednesday at Rs17.14, while Dish TV gained 20.40% to Rs23.90. Traders are betting on WWIL as the probable contender to get an investor on board. It is also speculated that some high-networth proprietory investors could already have picked up WWIL shares from the market. On the Bombay Stock Exchange (BSE), seven bulk deals in WWIL were reported after trading hours, with several brokerage firms including Prabhudas Lilladher , Ambit Capital, HJ Securities buying the stock. There were 15 bulk deals in WWIL on the National Stock Exchange (NSE). Most of these deals by domestic brokerages were made at Rs15-16 per share. (The Economic Times)
Ashok Leyland and Nissan Rework LCV Tie Up – Truck kajor, Ashok Leyland Ltd (ALL) and Nissan, the Japanese auto giant have decided to rework their Rs 2,400 crore light commercial vehicle (LCV) project, being set up near Chennai. The discussions between the two companies are currently revolving around taking the project ahead under current situations. The discussions have also made it clear that the project cannot be taken up as per the original JV agreement owing the current market conditions. The companies are also looking at bringing down the project cost and capacity initially. A clearer picture of the JV is expected to evolve in the next 2-3 months. (LiveMint.com)
Morgan Stanley to Invest Rs 100 Crore in India Stock Broking Arm – Morgan Stanley is putting Rs 100 crore into its Indian retail stock broking and portfolio management services firm Morgan Stanley India Financial Services (MSIFS). It is also restructuring the group’s shareholding in MSIFS, where 75% equity will be held through a Mauritius-based subsidiary Morgan Stanley Mauritius Company (MSMC). Morgan Stanley holds 99.99% in MSIFS through its Indian subsidiary Morgan Stanley India Company (MSIC). The remaining 0.01% is held through its other Indian subsidiary Morgan Stanley India Services (MSIS). (The Economic Times)
IBN 18 to Increase Stake in JV Firms – Network 18 group company, IBN 18 Broadcast has sought shareholders approval to hike its stake in its joint venture firm with media conglomerate Viacom to 50% for a proposed investment of Rs 450 crore. In the explanatory statement to the postal ballot request to the shareholders, the company said it needs their consent to make a proposed investment (directly or indirectly) of Rs 450 crore to increase its existing 6.6% stake in Viacom 18 Media to 50%. The company is also planning to infuse up to Rs 50 crore from time to time in its another JV firm, IBN Lokmat News, which is in expansion mode.
The funds required for the investments would be sourced through internal accruals, borrowings or through equity proceeds and any combination of the foregoing. (Business Standard)
CCVF to Raise $40 Million – The Cinema Capital Venture Fund (CCVF), promoted by former finance secretary Gopi Arora and media veteran Urmila Gupta, has sought the government approval to raise up to $40 million (Rs 200 crore) from foreign investors. The fund has a target size of Rs 750 crore and has already raised Rs 164 crore from domestic investors. It plans to finish the second round of funding by end-March. CCVF proposes to raise up to 40% of the target fund size from non-resident Indians and persons of Indian origin. The fund plans to invest in equity, preference shares and convertible debentures of companies engaged in the media and entertainment industry. (The Economic Times)
Voltas Buys Entire Stake of JV Partner in Saudi Ensas – Tata Group firm Voltas has acquired the entire stake of its Saudi partner in joint venture firm Saudi Ensas. It has acquired 51% stake of the JV entity. Saudi Ensas was a 51:49 JV between an overseas firm and Voltas. Saudi Ensas is now a who9lly owned subsidiary of Voltas. The transfer has been performed without any financial consideration. (Business Standard)
Bank of India Raises Rs 400 Crore – Public sector lender Bank of India said it has raised Rs 400 crore through perpetual bonds. Public sector lender Bank of India said it has raised Rs 400 crore through perpetual bonds. The issue had opened on January 18. The bonds received AAA rating from Care and AAA+ from Brics. (Business Standard)
Shyam Promoters Pledge 19.52% Stake with SBI – Four promoters of CDMA mobile operator, Shyam Telecom, have pledged 19.52% stake of the company with the country’s largest public sector lender, State Bank of India. The promoters have pledged in total 22 lakh shares. Mehrotra Invofin has pledged 11 lakh shares representing 9.76% stake of the company, Cellphone Credit & Securities India has pledged 5.5 lakh shares representing 4.88% stake in the company. Also, A T Invofin has pledged 2.73 lakh shares with the bank that is 2.42% stake of the company and Teletec Finsec India has pledged 2.77 lakh shares representing 2.46% stake of the company. The company has also said that shares have been pledged by the promoters for securing the working capital facilities enjoyed by the company from State Bank of India. (Business Standard)
European UPS Manufacturer to Invest in Unitek Power Solutions – Borri, a leading UPS manufacturer in Europe, has reached an understanding with Unitek Power Solutions India Ltd, Aluva for making an investment to the extent of 10 per cent of equity stake in the latter. The products would then be marketed in Asia under the brand Unitek Borri. Also, all Borri products, up to 40 KVA in the B-8,000 series, will be manufactured in Unitek’s factory at Pazhanganad. Unitek is taking over a UPS manufacturing company in Europe producing UPS in the range of 2 KVA to 10 KVA. An understanding to this effect has already been finalised. (Business Line)
PTC India to Raise Rs 1,200 Crore – India’s top power trading firm PTC India will raise up to Rs 1,200 crore through qualified institutional placement (QIP). The company had already received approval from the shareholders and the board for raising the funds. The company will be raising Rs 400 crore through non-convertible debentures and Rs 800 by issuing warrants. )
Gateway Distriparks Acquires Entire Stake in Vizag Subsidiary – Gateway Distriparks, a provider of port-related logistics support services has acquired additional 26% stake in its Visakhapatnam based subsidiary Gateway East India for Rs 4.68 crore. Gateway Distriparks already had 74% stake in the subsidiary firm. The company has acquired 11.70 lakh shares of Gateway East India, representing 26% stake at a price of Rs 10 per share. Post acquisition, Gateway East India has become a wholly-owned subsidiary firm of the company. (Business Standard)
Nirmal Kotecha Sells Entire Stake in Pyramid Saimira – Pyramid Saimira promoter Nirmal Kotecha has sold 67,502 shares, representing his entire holding of 0.24% in the company. Post sell off Kotecha’s holding in Pyramid Saimira has come down to nil. Kotecha, who held 70,36,619 shares representing 25% stake in the media entertainment firm as of September 2008, had been selling shares since November last year. Shares of Pyramid Saimira today plunged five per cent to hit its lower circuit at Rs 21.90 on the BSE. (Business Standard)
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