Tata Steel signs pacts to refinance loans in Europe (positive)
Tata Steel UK Holdings, a 100% indirect subsidiary of Tata Steel Limited, signed a senior facility agreement with a syndicateof 13 banks for a £3.53bn term loan and revolving credit facility. The repayment obligations for the next 5 years have beenminimised; there is flexibility to incur higher capital expenditure in Europe and to raise working capital depending on businessneeds.
Mahindra Satyam posts Rs.1.25bn loss
The company reported a total income of Rs.54.8bn and consolidated loss of Rs.1.2bn for 2009-10. The re-stated accountsprojected a net loss of Rs.81.8bn on net sales of Rs.88.1bn during 2008-09, which was largely driven by the exceptional itemsincluding over Rs.79bn on account of fraud-related expenses. The company initiated several measures, including right sizingof employees and operations which brought down the losses significantly.
Adani to spend A$4 bn on Aussie mine
After completing its big-ticket acquisition of an Australian coal asset from Linc Energy, Adani Enterprises will now make anadditional investment of A$3.5-4bn to develop the necessary mining infrastructure and logistics, including a rail link and acoal terminal in a port facility. This combined investment of over A$6.5 billion (over Rs 28,000 crore) will make it the largestcoal sector investment in Australia.
Cinepolis earmarks Rs 15bn to open 500 screens by 2016
Cinepolis, plans to open about 500 screens across 40 cities in India at an investment of around Rs 1,500 crore by 2016. Thecompany already has tied-up with several mall owners for about 250 screens that will be coming up in the next 12 months.
CAG may get to audit private telcos’ books
The auditor of India’s public accounts is set to delve into the books of private telecom companies in what will be a uniqueintervention by the constitutional body that has so far confined its audits to public sector units and ministries.
HCL, TCS bag contract for BoI's IT-based inclusion plan (Positive)
Tata Consultancy Services , HCL Infosystems and Integra Micro System have bagged a contract worth Rs 2,430mn from Bankof India (BoI) to provide information technology based solutions for financial inclusion.
JSW gives up plan to buy Brahmani Steel on mining hurdle
JSW Steel, which had been considering to buy out Brahmani Steel promoted by the controversial Reddy brothers of Karnataka, is now backing out of negotiations due to concerns on valid mining permits and a hostile state government.
Lupin takes majority stake in Australians Generic Health firm
Lupin has acquired a majority stake in Australia’s Generic Health for an undisclosed amount. The acquisition has been done bythe Netherlands-based wholly-owned subsidiary, Lupin Holdings (LHBV), through a subscription of rights issue.
Areva T&D bags Rs 1.5bn order from Indiabulls
Areva T&D India Ltd said on Wednesday it had bagged a contract worth Rs 1.5bn from Indiabulls for supplying the generatortransformers package for the latter's power projects in Maharashtra.
Macro Economic and Other News International News
Core sector growth decelerates to 13-month low
Growth in six infrastructure industries slowed to 3.7%during August, primarily due to a sharp dip in productionof petroleum refinery products. Core sector growth stoodat 6.4% in the corresponding period in 2009 and at 4%during July 2010.
Government eases FDI norms
The government eased the foreign direct investmentnorms for sectors like wholesale cash-and-carry, non-banking finance companies and animal husbandry. NBFCswith 100% foreign investment and a minimumcapitalization of $50 million can set up subsidiaries forspecific NBFC activities, without bringing additional capital.In case of the real estate sector, the government hasruled out any relaxation in the three-year lock-in criteriawhich can turn out to be negative. For foreign players withinterest in the wholesale cash-and-carry segment, thegovernment decided to remove the restriction on internaluse with the ceiling, mandating that such companies couldat best sell up to 25% of their turnover to groupcompanies.
US MBA Mortgage application falls
The US MBA Mortgage applications for the week endedSep 24 came in at -0.8% as compared to a prior monthfigure of -1.4%. This comes on the back of lowermortgage rate which has failed to propel mortgageapplication growth.
UK GfK Consumer Confidence Index falls
The UK GfK Consumer Confidence Index fell to -20 vsconsensus estimates of -19. This compares to a priormonth figure of -18.
Japan Industrial Production slips
The Japan Industrial Production for the month of Augustcame in at -0.3% as compared to consensus estimates of 1.1%. Japan continues facing problem on the industrialgrowth front due to an appreciating yuan.
Source: Economic Times, Business Line, Business Standard, Times of India, DNA Money, Mint, Financial Express, Bloomberg
Corporate News/Results Corner