Here’s a look at this week’s top 10 Indian business news.
- 1 Jet Airways’ stock jumps 15.85% amidst reports of stake sale to Etihad Airways
- 2 Honda recalls 11,500 CBR 250 bikes due to a defective brake system
- 3 L&T Construction bags orders worth Rs. 2,503 crore
- 4 Bharat Wire Ropes to invest Rs. 500 crore in new plant at Chalisgaon
- 5 TDSAT asks Aircel to pay Vodafone 5 paise per SMS
- 6 Cabinet approves 9.5% stake sale in NTPC
- 7 PVR Cinemas to buy Cinemax, to become India’s largest multiplex operator
- 8 5 per cent ethanol mix in petrol mandatory from December
- 9 GE to roll out 30 new made-in-India products by 2015
- 10 Govt raises Rs. 800 crore from Hindustan Copper Ltd stake sale
Jet Airways’ stock jumps 15.85% amidst reports of stake sale to Etihad Airways
Jet Airways’ stock price jumped 15.85% on BSE to close at Rs. 505.75 on Friday amidst reports of a stake sale to Etihad Airways. India’s largest private carrier is believed to be in talks with the UAE airline to sell 24% stake in a deal that is expected to be worth Rs. 2,200 crore.
"The deal would give Jet Airways a post money valuation of around $1.7 billion, more than twice its current market cap" said the report.
Honda recalls 11,500 CBR 250 bikes due to a defective brake system
Honda Motorcycle & Scooter India recalled 11,500 CBR 250 bikes in India reportedly for a defective braking system. "There is a possibility of limited ineffectiveness in front brake application, though this concern doesn’t impact the overall braking functionality and effectiveness of front and rear brakes under normal riding conditions" said the company. Owners will not be charged to rectify the problem regardless of their bike’s warranty status.
L&T Construction bags orders worth Rs. 2,503 crore
L&T Construction bagged orders worth Rs. 2,503 crore which included a Rs. 1,985 crore order from GVK Project and Technical Services. "L&T will execute major portion of works for 850 MW Ratle Hydroelectric Power Project located on the Chenab in the Kishtwar district of Jammu & Kashmir" said a press release.
Other orders include one worth Rs. 397 crore for the construction of a commercial building in Mumbai and another worth Rs. 121 crore for water supply in Fatehpur, Laxmangarh, Rajasthan.
Bharat Wire Ropes to invest Rs. 500 crore in new plant at Chalisgaon
Bharat Wire Ropes is reportedly looking to invest Rs. 500 crore for a new plant in Chalisgaon, Maharashtra. "The Chalisgaon project will be an integrated facility with pickling, patenting galvanizing, wire drawing, stranding and closing – all under one roof" said M L Mittal, MD, Bharat Wire Ropes.
The project will majorly be funded via Rs. 140 crore from promoters and private equity players, and Rs. 330 crore in bank loans.
TDSAT asks Aircel to pay Vodafone 5 paise per SMS
Telecom Disputes Settlement and Appellate Tribunal (TDSAT) asked Aircel to pay Vodafone 5 paise per SMS until the dispute between the two telecom operators regarding SMS interconnection is resolved. The termination charge is reportedly half of the 10 paisa demanded by Vodafone.
The interim order comes after Vodafone had earlier blocked SMSes from Reliance Communication and Aircel. TDSAT had asked Vodafone to restore SMS interconnection from RCOM.
Cabinet approves 9.5% stake sale in NTPC
The cabinet gave the nod to a 9.5% stake sale in state owned NTPC ltd. "The Cabinet Committee on Economic Affairs has approved disinvestment of 9.50% equity of NTPC Ltd., out of its holding of 84.50% through an offer for sale of Shares through Stock Exchanges as per SEBI Rules and Regulations.
After this disinvestment Government of India’s shareholding in the company would come down to 75%" said a release. The divestment is expected to raise around Rs. 13,000 crore.
PVR Cinemas to buy Cinemax, to become India’s largest multiplex operator
PVR Cinema is set to buy Cinemax multiplex chain to become the country’s largest multiplex operator. Ajay Bijli led PVR Ltd has reportedly offered Rs. 170 to Rs. 180 per share of Kanaki Group owned Cinemax India Ltd, whose shares rose by Rs. 7.95 to close 4.97% higher at Rs. 167.80 on Friday.
5 per cent ethanol mix in petrol mandatory from December
Mixing 5 per cent ethanol in petrol will become mandatory across the country from December 2012. The decision, announced by the Cabinet Committee on Economic Affairs, is reportedly set to save 100 crore litres of petrol in India every year.
"The five per cent mandatory ethanol blending with petrol should be implemented across the country, for which the Petroleum Ministry will issue a gazette notification in a next few days, for oil companies to implement from 2012-13 sugar season, effective from December 1, 2012" said a release.
GE to roll out 30 new made-in-India products by 2015
GE India plans to roll out 30 new made-in-India products in the healthcare and energy domain by 2015. About 20% of the company’s 6,000 strong workforce of engineers and scientists will be engaged in making the products specific to the Indian market. GE is reportedly ramping up efforts to source locally in India not only for these products, but also for its global operations.
Govt raises Rs. 800 crore from Hindustan Copper Ltd stake sale
The government raised Rs. 800 crore via a stake sale in Hindustan Copper Ltd. The divestment saw the government offloading 5.58% holding in the state owned copper producer. The floor price of the auction was decided at Rs. 155 per share.
"A total bid for 5,16,11,858 shares were received. It has been decided to accept the entire number of shares bid for at or above the floor price" said a release from the Ministry of Finance. Hindustan Copper Ltd’s share price dropped 20% on Friday to close at Rs. 213.05.