Here’s a look at this week’s top 10 Indian business news.
Bharti Infratel falls over 13% on debut
Bharti Infratel’s debut on the BSE disappointed investors as the share closed over 13% lower than its issue price of Rs. 220. Commentator reportedly attributed the Rs. 28.80 drop to Rs. 191.20 per share to a high price and a cautious outlook for the telecom tower business.
“One needs to look at the long-term opportunity of the tower business” said Akhil Gupta, MD and Vice Chairman, Bharti Infratel.
L&T Hydrocarbon gets Rs. 781 crore contract for ONGC
L&T Hydrocarbon bagged a Rs. 781 crore contract for 3 wellhead platforms from Oil and Natural Gas Corporation Ltd (ONGC). The contract is a part of ONGC’s redevelopment of the Heera and South Heera oil fields.
“Recently, L&T was awarded another contract from ONGC for B-127 Cluster 3 Wellhead Platforms Project. These contracts reiterate the long term association of ONGC with L&T in the development of offshore fields in India” said a press release.
RBI to implement Basel III in April 2013
RBI announced that Basel III, the new global capital rules for banks, will be implemented from 1 April 2013. Earlier to be implemented from 1 January 2013, Basel III are global regulatory standards agreed to by the Basel Committee on Banking Supervision to strengthen the global banking system’s resilience in various domains including capital adequacy and market liquidity risk among others.
“India will also closely monitor the progress on Basel III implementation in other countries, particularly the major ones who are the members of the Basel Committee” said a press release.
India Infrastructure Finance Company Limited (IIFCL) negotiates $1.2 billion credit line
India Infrastructure Finance Company Limited (IIFCL) negotiated a $1.2 billion credit line from Asian Development Bank. The funds are set to be used in various industry sectors. The announcement comes at the back of the state owned company reportedly consuming $1 billion out of a $5 billion RBI line of credit.
Kalpataru Power Transmission Limited (KPTL) receives new orders worth Rs. 955 crore
Kalpataru Power Transmission Limited (KPTL) announced that it bagged new orders worth Rs. 955 crore including a Rs. 405 crore order from Power Grid Corporation of India Ltd for the supply and installation of a 238 km transmission line. Other orders include Rs. 260 crore in Uganda, Rs. 140 crore in Armenia, Rs. 65 crore in Philippines and Rs. 85 crore at Hazira from ONGC.
“We continue to focus on increasing our footprints in the international markets and have been successful in entering two new countries, Uganda and Armenia. We have further strengthened our foothold in Africa & CIS region with these contracts” said Manish Mohnot, Executive Director, KPTL.
Ministry proposes Rs. 10/litre price hike in Diesel
The petroleum ministry has reportedly proposed a Rs. 10/litre hike in the price of Diesel over a 10 month period. Prices will be increased by Rs. 1 every month if the proposal is accepted.
“It may affect the sales of vehicles for a short term but the elimination of price distortion will help the industry and economy in the long run” commented industry body SIAM on the proposal.
Clariant Chemicals sells India business for 502 million chf, approximately Rs. 3020 crore
Swiss chemicals company Clariant announced divesting from its business operations in India for a consideration of 502 million chf (Swiss Francs) or approximately Rs. 3020 crore to US based private equity firm SK Capital.
“We are delighted to partner with the management and employees of these businesses to build upon their strong technology, brand, and leading market positions to more efficiently serve their large and growing global markets and customers” said Barry Siadat, MD, SK Capital.
Tecpro Systems Ltd bags Rs. 263.7 crore order from NTPC Ltd subsidiary
Tecpro Systems Ltd received an order worth Rs. 263.7 crore from Kanti Bijlee Utpadan Nigam Ltd, a subsidiary of state owned NTPC Ltd. The order entails the EPC company to supply Coal Handling Package for the Muzaffarpur Thermal Power Project and is the second such order it has received from Kanti Bijlee Utpadan Nigam Ltd.
These repeat orders are a testimony to our strong customer loyalty and proven execution capabilities in the Coal and Ash handling space where we continue to maintain our leadership position” said Amul Gabrani, Vice Chairman & MD, Tecpro Systems in a filing to NSE.
Ambuja Cement planning to invest Rs. 2,000 crore in Rajasthan
Ambuja Cement is reportedly planning an investment of Rs. 2,000 crore to enhance its operations in Rajasthan. “We are actively pursuing the five million tonne capacity expansion in Rajasthan and neighboring northern regions with an investment of Rs 2000 crore” said Ajay Kapur, CEO, Ambuja Cement.
Ratan Tata retires as Chairman of Tata Group
Rata Tata stepped down as Chairman of the Tata Group, handing over charge to 44 year old Cyrus Mistry. Ratan Tata was appointed Chairman of the group in 1991 and has since overlooked key acquisitions including Jaguar Land Rover, Corus and Tetley.
He has been the recipient of Padma Bushan and Padma Vibhushan, India’s third and second highest civilian honours.