Hindalco block deals continue; Fuel talk that promoters upping stake

Block deals continued in shares of Hindalco Industries today, fuelling talk that promoter AV Birla group is hiking stake to thwart of any takeover attempt. Over the last two days, nearly 1 crore Hindalco shares have changed hands in block deals involving 0.9% of aluminium major's equity capital.

Block deals of 39.3 lakh Hindalco shares took place today at Rs 171/sh while on Monday blocks deals of 38 lakh shares and 19.8 lakh shares were both registered at Rs 170.50. On March, at the company's extraordinary general meeting, Kumarmangalam Birla, chairman of Hindalco Industries and head of the AV Birla group, had indicated the promoters' plan to raise their shareholding in the company through the creeping acquisition route in light of the takeover threats.

The series of block deals give credence to the view that Birla is putting that plan into action. However, a company official declined to comment on the issue. Hindalco was reported to be facing takeover threat from aluminium majors Alcan of Canada and Vedanta Resources of the U.K.

As on date, promoters along with their associates hold 31.2% in Hindalco, up from 27.06% on Mar 31, the official said. The company is not facing any takeover threat as promoters have the right to exercise 80 mln warrants next year at a conversion price of Rs 173.87/share, which will take their stake further up to 36%, the official said. Last week, Hindalco share moved up over 5% to close at 170 rupees on the NSE although the volumes dropped by 4.7 mln shares to 17.84 mln shares.

In the last two days, 11.65 mln shares changed hands in the trade so far, including the three block deals.




No plans to dilute equity to raise funds, sufficiently capitalized for capital needs: Dewan Housing

Kapil Wadhwan from Dewan Housing said there is no such plan of diluting any stake. It is absolutely wrong. We are adequately and sufficiently capitalised. As and when we need capital, we will evaluate all other options. Currently we are on road to promoting our HDIL issue.




Vakrangee Software locked on upper circuit; Goldman Sachs laps up more of the stock

Vakrangee has touched an intra day high of Rs 184.85 and an intra day low of Rs 177.50. Currently, the share is quoting at Rs 184.85, up Rs 8.80, or 5%. There were pending buy orders of 47,768 shares, with no sellers available. It is trading with volumes of 79,869 shares, compared to its 5-day average of 525,586 shares.

Vakrangee Software is one of the software companies which is insulated from the Dollar - Rupee fiasco since most of its projects are eGovernance initiatives by various Government agencies in India.

Goldman Sachs Investments has been lapping up the stock silently in good quantity for the past few weeks. Goldman Sachs had bought 2 lakh shares @ Rs 131.5/sh on June 18 and 99 thousand shares @ Rs 130.9/sh on June 15. On June 20, Goldman Sachs bought another 2.2 lakh @ Rs 141/sh. Yesterday, they bought 4.07 lakh shares at Rs 174.47/sh on BSE and 3.10 lakh shares at Rs 173.71/sh on NSE.

There are also market talks that the company is likely to bag a government order.



Bank of Baroda, Andhra Bank in talks for life insurance venture

Bank of Baroda has initiated discussions with Hyderabad-based Andhra Bank to form a tripartite venture to foray into life insurance, According to NewsWire18. "Bank of Baroda has invited Andhra Bank to become the third partner in the former's proposed life insurance joint venture. The board of Andhra Bank has yet to take a call on the proposal," an official said.

Bank of Baroda has already signed a memorandum of understanding with U.K.-based insurer Legal & General for the proposed life insurance company. Bank of Baroda will hold 50% stake in the joint venture, while Legal & General will have 26%, the maximum permissible limit for a foreign insurer in India. "According to the proposal from Bank of Baroda that came last month, Andhra Bank can hold 24% in the joint venture," an official said.

When contacted, Andhra Bank Chairman and Managing Director K. Ramakrishnan said "I do not want to comment on the issue at this stage." Bank of Baroda officials were not available for comment. The insurance venture will have an initial capital of about Rs 200 crore. According to the Reserve Bank of India's guidelines, public sector banks are not allowed to hold more than 51% in an insurance venture. Owing to this norm, state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture. After finalising the third partner, Bank of Baroda will seek approval from the RBI.

Andhra Bank that has been planning to enter the life insurance sector for quite some time was initially in talks with Bank of India. However, the talks fell through and Bank of India roped in Union Bank of India for its insurance joint venture with Japanese major Dai-Ichi Mutual Life Insurance Co. A number of state-run banks, including Canara Bank, Oriental Bank of Commerce, IDBI Ltd., Bank of India, and Union Bank of India, have formed joint ventures to foray into the life insurance business in India.




Entertainment Network India hits 52-week high, Volumes multiply; Intends to roll out Radio Mirchi in 15 more cities by end of year

Ent Network Ind has touched a 52 week high of Rs 504.80 and an intra day low of Rs 425.05. Currently, the share is quoting at Rs 494.30, up Rs 72.10, or 17.08%. It is trading with volumes of 471,740 shares, compared to its 5-day average of 15,620 shares, an increase of 2,920.06%. Yesterday the share closed up 5.35% or Rs 21.45 at Rs 422.20.

The two big players, BIG FM and Radio Mirchi in the growing private FM radio industry in India have started their battle for airwaves in the same week in Kanpur. The two players started their operations in the same week, which has been the trend seen in the medium over the past few weeks. Interestingly, Goa too had the competitors starting their operations in a space of few days between each other.

Kanpur is Mirchi’s 17th station, while it is the 22nd station for BIG FM, which is in the second phase of its launch. Mirchi launched its operations in Kanpur on June 16, while BIG FM launched its on June 19. When speaking about their respective stations, officials from both the stations are expectantly excited about the new launch.

Entertainment Network (India) Limited (ENIL) intends to roll out its brand of Radio Mirchi stations in 15 more cities by the end of this year. BIG FM, on the other hand, intends to roll out all of its remaining 23 stations in the second phase of launch.




Shree Ashtavinayak to mull raising $ 50 mln Jul 2

Shree Ashtavinayak Cine Vision Limited informed National Stock Exchange that board will meet on 2 Jul to consider following along with other routine matters :

(1) To consider the matter relating to raise further funds by issue of securities on preferential basis as per SEBI guidelines 2000 to selected group or persons, QIP and through issue of GDRs/ADRs or FCCB or any combination thereof to the extent of USD 50 Million for the purpose of long term Working Capital requirements for expansion of business activities of the Company including Production and Distribution of Films in Vernacular Languages,

(2) To plan for appropriate and optimum deployment of balance of the funds raised through IPO.





Natco receives US FDA approval for Ondansetron

Natco Pharma Ltd has informed BSE that the Company's application for abbreviated new drug (ANDA) for Ondansetron Hydrochloride tablets in multiple strengths (4 mg and 8 mg) has been approved by the US Food & Drug Administration.

As a consequence, the Company can now sell its Ondansetron tablets in the United States. It has already shipped out the first consignment of these tablets meant for distribution in the USA through its marketing partners.Ondansetron Hydrochloride is a popular anti-emetic, commonly used by cancer patients.

The market for Ondansetron generics, all over the US is expected to be in the region of around US $ 1.5 Billion.

For the Company, this is the first drug to be approved by the US FDA and its ANDAs for other drugs are under various stages of approval. With these approvals coming through, the Company expects to fortify its presence in the US markets. The Company is in the process of establishing a retail chain in the US and hopes that the chain would serve a useful purpose in distributing and marketing its approved products.




PFC may gain Rs 360 Cr FY08 on deferred tax liability, PFC's net worth may rise by Rs 1100 Cr in FY08

Power Finance Corp may see a gain of Rs 360 crores on deferred tax liability for the current financial year to March, a company official told NewsWire18 today. Simultaneously, the state-run company's net worth will rise by Rs 1100 crore from Rs 8000 crore now due to the tax adjustment.

"The deferred tax liability is for the years 2004-07. The gain is entirely dependent on what the Accounting Standard Board (of the Institute of Chartered Accountants of India) says, and we are hopeful of a favourable judgement by the end of the current fiscal," the official said.




NALCO aide sees Q1 margin squeezed up to 300 bps on weak prices; Aluminium prices may settle at $ 2,600/tn near-term

National Aluminium Co. Ltd., India's second largest producer of aluminium, today gave a weak price outlook for the metal. "Aluminium prices are likely to remain weak in the near-term, and they are likely to settle at ,600 per tn," Director (Finance) B.L. Bagra told NewsWire18 today.

Bagra said softened product prices are likely to squeeze the company's operating profit margins in the three months to Jun 30 by up to 300 basis points compared with the previous quarter. However, the contraction in margin will be negligible considering the wide margins the company enjoyed, he said. NALCO's operating margins for Jan-Mar was about 64%. Aluminium spot closed at $ 2,669 a tn on the London Metal Exchange Monday, down more than 0 from the levels it reached early this year.

NALCO, which has twice cut aluminium prices during the current month, may consider another cut in July if LME prices are further strained, Bagra said. Volatile prices of alumina, NALCO's other leading product, adds to the company's woes. The company is settling spot alumina contracts at $ 352 per tn, and is expecting a price of $ 330-400 per 1 tn for one-year contracts, Bagra said. Alumina prices had peaked to $ 600 per tn in June last year, and have been slipping ever since.




Aurobindo receives Tentative approval for Quinapril Hydrochloride & Hydrochlorothiazide Tablets from USFDA

Aurobindo Pharma has announced that the Company has received tentative approval from the USFDA for Quinapril Hydrochloride and Hydrochlorothiazide Tablets 10mg/12.5mg, and 20mg/25mg. With this the Company's product basket for the USA market has gone up to 45. This is indicated for the treatment of Hypertension.

Quinapril Hydrochloride and Hydrochlorothiazide Tablets 10mg/12.5mg, 20mg/12.5mg and 20mg/25mg is the Generic equivalent of ACCURETIC Tablets (Pfizer Pharmaceuticals Ltd.,). This is the fifth Anti hypertensive (Medicines regulating blood pressure) of the Company bagging USFDA's nod.




DSP ML removes Bajaj Auto & Tata Motors from preferred list, adds BHEL, Rel Cap, TCS to preferred list

FE reports that the state-run energy equipment maker Bharat Heavy Electricals had received an order for a turbo blower package worth Rs 106 crore ($ 26 million). The order is for Rashtriya Ispat Nigam Ltd's steel plant in the southern city of Visakhapatnam. The order will be executed by BHEL in coordination with Germany's MAN Turbo in 28 months, it said.



Pratibha Industries gets Rs 26.44 Cr water supply order from Jabalpur Municipal Corp

Pratibha Industries has secured a contract from Jabalpur Municipal Corporation (Project Implementation Unit - PROJECT UDAY) for a water supply scheme. The value of the contract is Rs 26.44 crore. The project is to be executed in 24 months.

The project involves "providing, laying, jointing, testing and commissioning of clear water rising mains and feeder mains at Jabalpur".

Pratibha Industries is engaged in infrastructure business with key focus on water segment. As the company moves ahead, it has laid increased emphasis on devising its business strategy on aggressive top line growth, a de-risked business model and increased operational efficiencies.



3i Infotech prices US $ 100 mln FCCB offering to fund expansion plans

3i Infotech has announced that it had successfully priced a Zero coupon Foreign Currency Convertible Bonds (FCCBs) offering of US $ 100 million convertible over a five year period. The FCCBs are proposed to be listed on the Singapore Stock Exchange. The issue of the FCCBs is subject to inter alia obtaining shareholder approval for the proposed increase in borrowing powers.

The FCCBs will be convertible at a conversion price of Rs 331.87 per equity share of the company, which is at a premium of 10% to the company's closing equity share price on the National Stock Exchange of India Ltd as on June 25, 2007. The FCCBs will be redeemable on the expiry of five years at a yield to maturity of 7.05%. Lehman Brothers International (Europe) is the sole book-runner for the transaction.

Commenting on the development, Mr. V Srinivasan, Managing Director and CEO of the Company said, "3i Infotech has been on a fast track growth mode looking at achieving leadership position in the BFSI solutions space. We have robust plans for all our business offerings and the aggregate net proceeds of this FCCB offering will be used in order to further fuel our expansion plans in the coming years."




Bharti defers calling card biz expansion, wants to first solve US glitches before going global

Bharti Airtel has put off its plan to kick off a series of tariff wars abroad with the launch of its virtual calling in global markets on account of the complexities and excess demand that the company faced with the launch of this service in the US.

Bharti Airtel had launched calling cards in the US in 2006 and said this service would soon be extended to the top 10 countries in terms of the NRI population, which include Canada, the UK, Singapore, Malaysia, Saudi Arabia and other Gulf countries. But now, the company has decided to defer the global expansion of this until the glitches faced in the US are solved. “In the US, the demand was far higher than the capacity that we had installed. We therefore had to upgrade our IN platform and augment the capacity.

We also had some problems with the subscription process with regard to how customers signed up for this service,” said Bharti Airtel president, enterprise services, David Nishball.“We are therefore holding off the launch of this service in other countries until the these technological issues in the US are solved. We expect to address all issues in the US by August-end,” he added.

The excess demand for its calling cards in the US—so much so that the back-end could not handle the load—was because the tariffs were reportedly 40% cheaper than the prevailing tariffs there. For instance, its offering of 7.9 cents per minute in the US resulted in AT&T slashing the tariffs for its India 60 Plus calling card from $ 14.99 per month (around 25 cents a minute) to $ 11.99 per month (around 20 cents a minute) for 60 minutes talktime to India.

“We expect to be present in the other markets by March 2008. The planning is already in place. We are currently working on regulatory clearances and network agreements with other long distance carriers in these markets,” Mr Nishball said. According to him, another reason for the temporary delay was that Bharti did not want to make any compromises on the quality of service. “We have learnt from the US experience. As we take the Bharti Airtel brand outside India, the launch of this service offers us the best chance to make the first impression. We are cautious and we have to do it right as this also marks the foray of the Bharti brand.

Bharti’s logic for venturing into this segment in global markets stems from the popularity that calling cards enjoy in these countries. As per industry estimates, the outgoing traffic from the US to India is about 450 million minutes per month, of which about 200 million minutes are through calling cards. Besides, close to 80% of the incoming calls to India are made from the top 10 NRI countries. “This provides us with a new business model for global markets and also helps us with brand building,” Mr Nishball added.