Tuesday, December 14, 2010
COMPANY NEWS : =TCS = JSW INFRA = TVS MOTORS = MAHINDRA & MAHINDRA = NTPC = INFOSYS = BAJAJ AUTO = HINDALCO = PUNJAB NATIONAL BANK = ASHOK LEYLAND = SINTEX IND = RELIANCE COMMUNICATIONS
Some of the latest, useful news of following prominent companies are briefed below. For details, readers need to refer to detailed news reports in dailies / NSE sites etc:
COMPANIES COVERED :
(1) TCS (2) JSW INFRA (3) TVS MOTORS (4) MAHINDRA & MAHINDRA (5) NTPC (6) INFOSYS (7) BAJAJ AUTO (8) HINDALCO (9) PUNJAB NATIONAL BANK (10) ASHOK LEYLAND (11) SINTEX INDUSTRIES (12) RELIANCE COMMUNICATIONS
14.12.2010 : TATA CONSULTANCY SERVICES :
TCS will implement TCS BaNCS Core Banking solutions at Deutsche Bank as its new core banking platform in over 30 countries – by replacing several solutions now in place, with one modern, transaction-safe and cost-efficient platform.
“This is a significant step of strengthening our global transaction banking (GTB) platform worldwide. It is further proof of our firm commitment to deliver best-in-class services to our clients. We expect the new platform to deliver significant improvements that will benefit our clients,” said Deutsche Bank.
N Chandrasekaran , CEO, TCS, says that - this is the largest core banking deal in 2010 for TCS and to his knowledge, this is the largest core banking deal for the industry anywhere for this year. It has already gone live in Abu Dhabi.
The deal between the implementation and the transformation and ongoing support will be for 10 years.
14.12.2010 : JSW INFRA
JSW Infrastructure will sell a 10 per cent stake in the company to the US-based Eton Park for about Rs 560 crore.
The proceeds will be used for expansion of JSW's ports business, Said JSW Infra.
JSW Infra currently operates two ports -- Jaigarh in Maharashtra where it has a 50 year licence on build, own, operate, share and transfer basis.
14 12 2010 : TVS MOTORS:
TVS Motors plans to enhance its manufacturing capacity from 12,000 to 20,000 units at its facility at Hosur in Tamil Nadu for meeting "huge" demand for its scooterette Wego. Tamil Nadu is the largest market for the company, which plans to launch Wego in Tamil Nadu market by January or February 2011. Currently, Wego is not available in Tamil Nadu and some eastern regions in the country.
In November, TVS posted 27 per cent growth in two-wheelers' sale.
With the launch of TVS WEGO, TVS Motor becomes the only company with a wide range of scooters in the market.
14 12 2010 : MAHINDRA & MAHINDRA :
British Telecom (BT) today completed the sale of 5.5 per cent stake in Indian IT firm Tech Mahindra to the latter's parent group Mahindra & Mahindra for Rs 451 crore.
BT, which is struggling with a huge pension deficit, had 30 per cent stake in Tech Mahindra prior to this deal.
Post the sale, it will come down to 24.5 per cent, M&M's stake will increase to 48.5 from 43 per cent.
BT's remaining 24.5 per cent stake in Tech Mahindra, could fetch the telco a whooping Rs 2,065.94 crore valued at today's share price of Rs 673.20.
In the November 26 statement, M&M had said it will give a waiver to its rights to buy further stake in the software firm.
14 12 2010 :NTPC
(1) NTPC has signed a power purchase agreement (PPA) with West Bengal government for setting up a thermal unit at Katwa (Bardhaman district).
From the plant, 50 per cent of power will be allocated to the state government, 15 per cent to the ministry of power and 35 per cent to all other constituents in the region.
Total investment for the 2x800 Mw Katwa project will be Rs 9,600 crore, roughly around Rs 6 crore per Mw. Discussions are also going on for a greenfield (new) project at Santaldih (Purulia district).
NTPC has lined up 17 projects for next year and would be able to add another 5,500 Mw of capacity by the end of 2011-12.
By the end of the 11th Five-Year Plan (March 2012), NTPC target is to become a 40,000-Mw company.
(2) NTPC is in talks with Jharkhand Government for picking up 76 per cent stake in Patratu and Tenughat thermal power projects in Jharkhand, for a combine power generation capacity of 2,640 MW. They have coal linkages and are currently running at very low efficiency level. The combined cost of the projects is about Rs 16,000 crore.
NTPC currently generates over 32,000 MW and would augment the capacity to 75,000 MW by 2017.
(3) 11 12 2010 : NTPC has signed a power purchase agreement with Punjab State Power Corporation Ltd (PSPCL) for 2,640 MW coal-based thermal power project at Gidderbaha for Rs 15,000 crore. The plant consists of four units of 660 MW each, which would be entirely funded by NTPC. The 2,640 MW Gidderbaha power plant will be the biggest thermal power project in Punjab.
14 12 2010 INFOSYS :
INFOSYS is aiming to spend USD 500 million or around 10% of its revenues - on acquisitions.
14 12 2010 : BAJAJ AUTO :
Bajaj Auto will raise prices across its range of motorcycles by up to Rs 1,000 starting January 2011, the company said on Tuesday.
The continued rising cost of raw material inputs is the main cause for this increase.
Bajaj Auto had earlier reported 19 per cent jump in motorcycle sales at 2,65,036 units in November. The company had sold 2,42,390 units in November last year.
In October this year, the company had reported its highest ever motorcycle sales in a month at 3,29,776 units.
13.12.2010 : HINDALCO :
Hindalco will receive a dividend (return of capital) of Rs 7,650 crore from its subsidiary Novelis which recently announced plans to raise $4 billion (18,000 crore) through debt. Hindalco acquired Novelis in 2007 for $6 billion (Rs 27,000 crore).
As part of the refinancing, Novelis intends to enter into a new $1.5-billion (Rs 6,750 crore) secured term loan credit facility and replace its existing $800 million asset-based loan (ABL) facility with a new $800 million ABL facility.
The money received from Novelis will help Hindalco to fund its expansion and retire some of its high-cost debt.
Hindalco had debt of Rs 23,000 crore as on June 30 and plans to spend Rs 40,000 crore on its various expansion projects in India. The D : E ratio of Hindalco's expansion is 7:3, which means the company requires Rs 28,000 crore of debt, said an analyst.
13 12 2010 : PUNJAB NATIONAL BANK :
Punjab National Bank has picked up majority stake of 63.64 per cent in Kazakhstan-based JSC Dana Bank for about Rs 104 crore.
This acquisition would allow PNB to penetrate in CIS (Commonwealth of Independent States) countries.
PNB is present in eight countries and is planning to open few more offices overseas, including Shanghai. It is also looking at setting up a subsidiary in Vancouver, Canada.
This would be PNB's third overseas JV after Everest Bank Ltd, Nepal and Druk PNB Bank Ltd in Bhutan.
13 12 2010 : ASHOK LEYLAND :
Ashok Leyland has received an over Rs 125 crore order from VRL Logistics to supply 600 vehicles, deliveries of which will start in a month - 500 units of 3123 multi-axle vehicle and 100 units of 12-metre bus.
13 12 2010 : SINTEX INDUSTRIES:
Sintex Industries today said that its subsidiary Sintex Infra Projects has acquired 30 per cent in Durha Constructions (DCPL).
As part of the agreement with the owners of DCPL, Sintex can acquire majority stake in the latter by the end of March 2011, it said.
13 12 2010 : RELIANCE COMMUNICATIONS:
(1) R COM is starting 3G mobile services in four cities and would cover all its 13 zones by the end of March next year. RCom is targeting a national footprint of 3G services through associations with other "like minded, quality 3G licensees" in the remaining nine telecoms zones during the course of next year.
(2) Reliance Communications today launched its high-speed wireless Internet service in seven new Tamil Nadu and Puducherry towns. India's fastest wireless Internet service in Tamil Nadu and Puducherry is an important milestone for Reliance and will act as a catalyst in the government's effort to drive broadband penetration in the country, said R Com. The company aims to offer Netconnect Plus services in 400 towns in Tamil Nadu by January 15, 2011, compared to 143 big and small towns at present, R Com said.
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