COAL INDIA LTD IS THE HIGHEST IPO SUBSCRIPTION, (INTIAL PUBLIC OFFERING)
Hind Copper disinvestment rescued by LIC and PSU banks
In the direction of achieving Rs 30,000 crore target for fiscal 2012-13 by disinvesting PSUs, the government of India managed to yield Rs 800 crore by selling shares of Hindustan Copper. The sail was mainly on support from the Life Insurance Corporation and public sector banks. The offer for sale (OFS) saw lukewarm response from large foreign institutional investors and private domestic investors like mutual funds.
Harley Davisdon launched its New Model Fat Bob in Indian Market
Harley-Davidson India on 22 November 2012 launched its new bike model Fat Bob which is priced at 12.80 lakh rupees in ex-showroom, Delhi.
The new model is assembled at the company's facility at Bawal province of State of Haryana. The model has a 1585 cc engine with a six-speed cruise drive transmission, and a fuel tank which have an outstanding capacity of 18.8 litres.
This new addition of Harley Davidson Bike from the Dyna family expands its portfolio of completely knockdown (CKD) models to six.
The launch of the Fat Bob as CKD came after the bike is imported in parts and the finally assembled in India as it will allow more customers to experience Dyna range at an attractive price point.
Harley Davidson India started its operations in 2009 and till today it is offering 13 models in the India Market that is available at its nine authorised dealers in the country.
The company sold around 1000 units in the year 2011and it expects to close this year with 2000 double that number.
Apart from the US, India and Brazil are the only two countries, where the company had its assembling facility.
Portman Holdings Invested 65 Crore Rupees in Tata Housing Project
U.S.-based Portman Holdings invested 65 crore Rupees in Tata Housing luxury housing project based in Bangalore on 22 November 2012. Private equity funding is done for the first time for the Tata Housing project.
Tata Housing raised equity valued 240 crore Rupees in The Promont, from the Atlanta-based Portman Holdings, the vertically integrated realty company. Portman Holdings recognised the sustained growth as well as long-term opportunity in Indian housing segment. Investment of the company represented heavy endorsement for The Promont in Bangalore as the project.
Portman Holdings
Portman Holdings is the real estate development, management and investment company based in Atlanta. In the transaction where Portman Holdings invested a huge amount in Tata Housing, Yes Bank was its financial advisor. Portman Holdings raised as well as deployed 6 billion Dollars. It developed more than 50 million square feet of first-class realty across the world. In India, the company has invested in 3 million square feet property as of now.
About The Promont
The Promont is the Tata Housing project in which the US based realty invested 65 crore Rupees. Tata Housing will be developing 400 units in its first phase and 150 villas in its second phase. Price range of each unit will be somewhere around 1.5 to 3 crore Rupees while the villas will cost more than 5 crore Rupees. The cost of project overall would be 650 crore Rupees by 2017.
About Tata Housing
At present, Tata Housing has 60 million square feet land under many stages of execution or planning as well as additional 19 million square feet in its plan. The products range from 5 lakh Rupees to 14 crore Rupees. Tata Housing has its projects in various cities and states in India namely Gujarat, Goa, Chandigarh, Bengaluru, Maharashtra, Kolkata, Bhubaneswar, Chennai and Gurgaon. It has plans to expand its presence across other cities in India.
Tata Housing also has its venture in foreign markets like Maldives. It is in the process of exploring various other markets in South Asian countries as well as Sri Lanka.
the following company has been made to pay a fine of between 3
to 5 billion U.S. dollars, for the 2010 Deepwater Horizon disaster?
[A]BP Corporation
[B]Repsol YPF
[C]Chevron Corporation
[D]ConocoPhillips
BP Corporation
which among the following telecom service provider has set up a
Network Experience Centre (NEC)in Gurgaon through which it can monitor its entire
network from one location?
[A]Reliance Communications
[B]Bharti Airtel
[C]Bharat Sanchar Nigam Limited
[D]Vodafone Essar
Bharti Airtel
Bharti Airtel has set up a Network Experience Centre (NEC) in Gurgaon through
which it can monitor its entire network from one location.The NEC, which is the first
of its kind in India, will be able to monitor Airtel’s network performance across
mobile, fixed line and broadband, DTH, m-commerce, international cable systems
and Internet peering points from a single location. This continuous stream of near
real time data will in turn enable Airtel to deliver a superior customer experience
across its product offerings. Designed specifically to be used as a command centre
in case of national emergencies and natural catastrophe, the earthquake-proof
facility also provides for a single control of command.
ONGC sold 26 percent Stakes to Japan’s Inpex Corp
Inpex Corp, Japan’s largest oil firm acquired 26 percent stake of Krishna Godavari basin of deepsea block of Oil and Natural Gas Corporation (ONGC) on 5 November 2012.
Both the firms have signed the agreement on the strategic partnership for exploration of hydrocarbons in one of the land area of KG Basin. Inpex is known for the expertise that it carries in deep water exploration, would be spending $35 million initially as its part of its share, which was already invested in the past by the consortium.
KG DWN 2004/6 the deep water block of KG Basin was awarded to a group of 5 players that included ONGC with 60 percent share and others namely GSPC, HPCL, Gail and Oil India with 10 percent share each under the New Exploration Licensing Policy round VI of the year 2006. The signing of this production sharing contract between the five members of the group was inked in the March 2007. The deep water block of KG Basin KG DWN 2004/6 is based at a distance of 300 kilometers from the coast of Andhra Pradesh and extends in an area of more than 10000 kilometer square and a water depth of nearly 3000 meter.
GAIL and RSPCL signed an Agreement of Joint Venture on Gas Supply Pipeline Project
The GAIL Gas Limited and the Rajasthan State Petroleum Corporation Limited (RSPCL) signed an agreement of Joint Venture on 5 November 2012 to lay down the natural gas supply pipeline in the state. Both the bodies will together formulate a long-term plan on commercial, domestic as well as industrial consumption of the gas.
The agreement was signed by GAIL Gas Limited Chief Executive Officer J. Vasan and Ajitabh Sharma Managing Director of RSPCL in presence of C.K. Mathew, State Chief Secretary. The joint venture would help in supply of pollution free LPG, CNG and LNG to consumers of different categories and would also be responsible for development of the CNG stations on the road sides of the state and national highways. The project would also supply the gas required by the industrial units that is coming up on the Delhi-Mumbai industrial corridor.
The transport, supply and distribution of gas would be carried after getting approvals from the Petroleum & Natural Gas Regulatory Board.
Online Travel Agency MakeMyTrip Acquired Hotel Travel Group
Indian Online travel company MakeMyTrip India Pvt Ltd on 6 November 2012 acquired the Hotel Travel Group (HT Group) for $25 million.
Hotel Travel Group under the name Hotel Travel is operating its website www.hoteltravel.com for more than ten years and is working from South Asian countries of Thailand, Singapore and Malaysia.
Talking of the Acquisition MakeMyTrip paid $15 million to the promoters of the HT Group partly in cash and partly in the form of MakeMyTrip shares in the first Closing which fell out on 6 November 2012. The rest amount of $ 10 million is supposed to be paid in the form of MakeMyTrip shares, in 3 annual tranches by March 2016.
The HT Group had a tie-up with around 80,000 hotels across the globe. The reservation & call centre facility is located in Thailand while the group also has offices in Hong Kong and the UK.
MakeMyTrip.com has its offices in 20 cities across India with two international offices in New York and San Francisco, in addition to its several franchise locations.
Volvo Group to Invest Two Thousand Crore Rupees in India
The joint venture of Volvo Group and Eicher Motors Ltd is setting up a plant at Pithampur in Madhya Pradesh, which have a full capacity to produce 100,000 engines by 2016.Volvo Group aims to source 30 per cent of these engines for its European operations.
The Volvo Group is very rapidly expanding its size and Business in India taking into consideration the fact of proposed investment and potential of the country.
About Volvo Group
The Volvo Group is the world’s second biggest truck company. It is Sweden based company which not only manufacture trucks and buses but also construction equipment with supplying of marine and industrial drive systems and financial services. Earlier the company also used to manufacture cars.
Volvo Group in India constitutes three legal entities — Volvo India Private Limited (VIPL) and Volvo Buses India (VBI) and VECV
Lacoste Acquired by Swiss Company Maus Freres
The French apparel company Lacoste that bear Crocodile symbol was bought by Swiss family-held group Maus Freres on 15 November 2012 in a deal which was valued at 1 billion euros ($1.3 billion).
Goldman Named 16 Indians as MDs and 3 as Partners
Goldman Sachs, the international financial services giant, promoted 16 Indians as the Managing Directors in the second week of November. Three other Indians were named partners at Goldman Sachs Group.
US-based group named 70 executives as the partners and 266 as the MDs and they will be holding positions starting from 1 January 2013. The three Indian partners are named Gaurav Seth, Vivek Bantwal and Amol Naik. The new partners will be based in America.
In the list of 266 people promoted to the designation of MD, 16 are India-based and these include Mitesh J Parikh, Manav Gupta, Nilesh Banerjee, Sameer Ralhan, Kunal Shah, Nita Patel, Dinkar Bhatia, Nikhil Choraria, Dinesh Gupta, Pooja Goyal, Hari Moorthy, Meera Bhutta, Amit Sinha, Monali Vora, Gunjan Samtani and Akshay Sahni.
Goldman Sachs announces its MD list each year and the partners’ list is announced one time in two years. Managing Director is the rank just below the partners’. In 2011, 261 executives were promoted to MD’s position. Partners at the Goldman are also known as Participating Managing Directors. The basic salary of the MD at the group is $500,000 and that of the partners is approximately $900,000. Both the executive classes of the senior management of group also enjoy considerable sum as well as bonuses.
Chairman and Chief Executive Officer of the global giant congratulated the selected ones for their achievements.
About Goldman Sachs
Goldman Sachs is the leading international financial services company that provides investment banking, securities and investment management, financial institutions, HNIs as well as corporations. It laid its foundation in 1869 and has its headquarters in New York. The offices are located all across the world in some of the leading financial centres. Goldman Sachs has approximately 32600 employees all over the world. In 2011, the number of employees at Goldman was 34200.
RIL welcomes CAG’s withdrawal of Performance audit on private operators
November 8th, 2012
Reliance Industries Ltd (RIL) conveyed that it has no objection to an audit by any government agency. The company appreciated India’s national auditor Comptroller and Auditor General of India (CAG) decision of not conducting performance audit of RIL-operated Krishna-Godavari oil and gas block off Andhra Pradesh coast. The CAG had said it does not conduct performance audit on private operators.
However,CAG also made it clear that audit of Reliance Industries-operated Krishna-Godavari (KG) oil and gas block off Andhra Pradesh coast has to be a performance audit and not just a financial one.
Which among the following firm announced that it will acquire 53.4 per cent stake
in United Spirits?
Diageo
The world's largest spirits maker Diageo Plc announced that it will acquire 53.4 per
cent stake in United Spirits for Rs 11,166.5 crore in a multi- structured deal, which
may provide Vijay Mallya a breather from troubles emanating from the grounded
Kingfisher Airlines.
Diageo to acquire stake in Vijay Mallya’s USL
November 11th, 2012
International liquor major Diageo to acquire 53.4% stake in Vijay Mallya-owned 
United Spirits Ltd. (USL) for Rs.11,166.50 crore. Diageo has entered into
agreements with United Breweries (Holdings) Ltd. and USL to acquire 27.4% stake in USL for Rs.5,725 crore at Rs.1,440 a share. As a result of this move, UB Holding and associate companies will sell 19.3% stake to Diageo and a large part of this money will directly go to UB Holdings, which will de-leverage its balance sheet.
After this stake sale, the UB Holdings group’s shareholding in USL will come down to 14.9 per cent. Mr. Mallya will continue as Chairman of USL and UBHL.
As this agreements will trigger the SEBI’s takeover code, Diageo will have to launch an open offer to buy 26% stake from the public at Rs.1,440 a share. The open offer will cost Diageo Rs.5,441 crore. Shareholders need to approve this proposal. On completion of this process, Diageo will hold a total of 53.4 per cent stake in USL with an aggregate cost of Rs.11,166.50 crore.
Analysts held that this was a good deal for Mr. Mallya the deal is in line with market expectations and Mr. Mallya fetched more money than expected
L&T acquires Henikwon Corporation
Engineering giant Larsen & Toubro (L&T) acquired Malaysia-based electrical equipment manufacturer Henikwon
Corporation.
The acquisition was made by L&T’s wholly-owned subsidiary Tamco Switchgear, a part of the engineering major’s
electrical and automation (E&A) business.
Henikwon Corporation manufactures low and medium voltage bus duct systems.
Bus duct is a cost effective means of providing power and replaces the conventional cabling system.
Vaccine-maker Serum Institute of India on 4 July 2012 bought polio vaccine maker Bilthoven Biologicals for 550 crore rupees (80 million euro). The acquirement gives Serum a manufacturing base in Europe and greater access to European and U.S. markets. Bilthoven Biologicals was owned by the Netherlands government where as the Serum Institute of India is owned by Cyrus Poonawalla Group.
The initial amount of 220 crore rupees (32 million euro) was already given for 100 percent shares in the Bilthoven Biologicals where as the rest amount of 330 crore rupees will be paid within three-year period with other liabilities in the company. Serum planned to invest about 70 million to 80 million euros with the acquisition amount in three years to grow polio vaccine maker manufacturing capacity and to meet capital requirements.Due to the acquisition, Serum Institute will get access to technology and proficiency for making Injectable Polio Vaccine (Salk).
Serum Institute is centred in Pune, India. It is the fifth largest vaccine maker by volume across the world. Bilthoven Biologicals is manufacturing 20 million vaccines doses per year. It sells the vaccines to Europe and other developing countries
Payment
Serum would likely to attain the fund through internal growth and a capital loan from banks. It had attained a turnover of 1700 crore rupees in 2011-12 where 700 crore rupees was the profit.
Mahindra invested 100 crore rupees for Research and Development (R&D) centre for two-wheelers on 4 July 2012 with the investment plan of 500 crore rupees till 2017. It will enable Mahindra two wheelers to undertake in-house design and development of engine technology for its motorcycles.
Pune R&D centre is the third largest two-wheeler centre in India. It has 175 engineers and designers. The facility has an Engine Development Centre (EDC), vehicle design & development facility, testing facilities and prototype centre.
Mahindra also launched two new engines-110cc and 300cc which was developed at the R&D centre as well as the Duro DZ which was fitted with a fuel-efficient micro hybrid technology engine. Duro DZ would likely to be launched till September 2012.
Mahindra and Mahindra is an Indian multinational automaker. It is headquartered in Mumbai,India. It is one of the largest automobile manufactures in India and a subsidiary of Mahindra Group. It was founded by K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed in 1945.It is a major manufacturer of commercial vehicles, two wheelers, and service vehicles.
Vodafone on 3 July 2012 agreed to takeover 1.04 billion euro of British firm cable and Wireless Worldwide (C & WW). The decision was taken after Tata Communications withdrew itself when it failed to agree on a price.
INDALCO----ALUPURAM
HINDALCO---RENUKOOT
BALCO-----KORBA
NALCO-------DAMANJODI
TATA GROUP OF INDUSTRIES----
VOLTAS, TITAN, RALLIS INDIA, INDIAN HOTELS
indian auto major acquired the british luxury brand land rover is tata
COAL INDIA LIMITED IS HIGHEST IPO SUBSCRIPTION IN THE INDIAN PUBLIC SECTOR COMPANY
PUBLIC SECTOR MORE IN TRANSPORT SECTOR
LIFE INSURANCE CORPORATION OF INDIA IS A CORPORATION ESTABLISHED BY A SPECIAL ACT OF PARLIMENT
Tech Mahindra on 17 September 2012 acquired 51% stake in Comviva technology limited for 260 crore.
The new brand identity is now called as Mahindra Comviva, which reflects combined strength and spirit of both the entities.
With this Tech Mahindra enters into the world of Mobility Products and is set to build portfolio in Mobile VAS, Mobile Money and Mobile payments space.
The acquisition is going to enhance Tech Mahindra’s capabilities in the mobile VAS domain and will also provide access to a marquee client base, enabling significant cross-selling opportunities.
Comviva technology is Bharti group owned mobile value added service (VAS) provider and have Vodafone, Idea, NTT Docomo in its client list. It was also earlier named as Bharti Telesoft when it was 50% owned by Bharti group. Comviva Technologies Ltd. was formed in 1999, and has grown rapidly to become the global leader in providing mobile VAS and financial solutions.
Tech Mahindra Limited is an Indian provider of networking technology solutions and business process outsourcing (BPO) services to the global telecommunications industry. It is a joint venture between the Mahindra Group and BT Group plc, UK with M&M (Mahindra and Mahindra) holding 44% and BT holding 39% of the equity.
COAL INDIA LTD IS THE HIGHEST IPO SUBSCRIPTION, (INTIAL PUBLIC OFFERING)
Hind Copper disinvestment rescued by LIC and PSU banks
In the direction of achieving Rs 30,000 crore target for fiscal 2012-13 by disinvesting PSUs, the government of India managed to yield Rs 800 crore by selling shares of Hindustan Copper. The sail was mainly on support from the Life Insurance Corporation and public sector banks. The offer for sale (OFS) saw lukewarm response from large foreign institutional investors and private domestic investors like mutual funds.
Harley Davisdon launched its New Model Fat Bob in Indian Market
Harley-Davidson India on 22 November 2012 launched its new bike model Fat Bob which is priced at 12.80 lakh rupees in ex-showroom, Delhi.
The new model is assembled at the company's facility at Bawal province of State of Haryana. The model has a 1585 cc engine with a six-speed cruise drive transmission, and a fuel tank which have an outstanding capacity of 18.8 litres.
This new addition of Harley Davidson Bike from the Dyna family expands its portfolio of completely knockdown (CKD) models to six.
The launch of the Fat Bob as CKD came after the bike is imported in parts and the finally assembled in India as it will allow more customers to experience Dyna range at an attractive price point.
Harley Davidson India started its operations in 2009 and till today it is offering 13 models in the India Market that is available at its nine authorised dealers in the country.
The company sold around 1000 units in the year 2011and it expects to close this year with 2000 double that number.
Apart from the US, India and Brazil are the only two countries, where the company had its assembling facility.
The new model is assembled at the company's facility at Bawal province of State of Haryana. The model has a 1585 cc engine with a six-speed cruise drive transmission, and a fuel tank which have an outstanding capacity of 18.8 litres.
This new addition of Harley Davidson Bike from the Dyna family expands its portfolio of completely knockdown (CKD) models to six.
The launch of the Fat Bob as CKD came after the bike is imported in parts and the finally assembled in India as it will allow more customers to experience Dyna range at an attractive price point.
Harley Davidson India started its operations in 2009 and till today it is offering 13 models in the India Market that is available at its nine authorised dealers in the country.
The company sold around 1000 units in the year 2011and it expects to close this year with 2000 double that number.
Apart from the US, India and Brazil are the only two countries, where the company had its assembling facility.
Portman Holdings Invested 65 Crore Rupees in Tata Housing Project
U.S.-based Portman Holdings invested 65 crore Rupees in Tata Housing luxury housing project based in Bangalore on 22 November 2012. Private equity funding is done for the first time for the Tata Housing project.
Tata Housing raised equity valued 240 crore Rupees in The Promont, from the Atlanta-based Portman Holdings, the vertically integrated realty company. Portman Holdings recognised the sustained growth as well as long-term opportunity in Indian housing segment. Investment of the company represented heavy endorsement for The Promont in Bangalore as the project.
Portman Holdings
Portman Holdings is the real estate development, management and investment company based in Atlanta. In the transaction where Portman Holdings invested a huge amount in Tata Housing, Yes Bank was its financial advisor. Portman Holdings raised as well as deployed 6 billion Dollars. It developed more than 50 million square feet of first-class realty across the world. In India, the company has invested in 3 million square feet property as of now.
About The Promont
The Promont is the Tata Housing project in which the US based realty invested 65 crore Rupees. Tata Housing will be developing 400 units in its first phase and 150 villas in its second phase. Price range of each unit will be somewhere around 1.5 to 3 crore Rupees while the villas will cost more than 5 crore Rupees. The cost of project overall would be 650 crore Rupees by 2017.
About Tata Housing
At present, Tata Housing has 60 million square feet land under many stages of execution or planning as well as additional 19 million square feet in its plan. The products range from 5 lakh Rupees to 14 crore Rupees. Tata Housing has its projects in various cities and states in India namely Gujarat, Goa, Chandigarh, Bengaluru, Maharashtra, Kolkata, Bhubaneswar, Chennai and Gurgaon. It has plans to expand its presence across other cities in India.
Tata Housing also has its venture in foreign markets like Maldives. It is in the process of exploring various other markets in South Asian countries as well as Sri Lanka.
Tata Housing raised equity valued 240 crore Rupees in The Promont, from the Atlanta-based Portman Holdings, the vertically integrated realty company. Portman Holdings recognised the sustained growth as well as long-term opportunity in Indian housing segment. Investment of the company represented heavy endorsement for The Promont in Bangalore as the project.
Portman Holdings
Portman Holdings is the real estate development, management and investment company based in Atlanta. In the transaction where Portman Holdings invested a huge amount in Tata Housing, Yes Bank was its financial advisor. Portman Holdings raised as well as deployed 6 billion Dollars. It developed more than 50 million square feet of first-class realty across the world. In India, the company has invested in 3 million square feet property as of now.
About The Promont
The Promont is the Tata Housing project in which the US based realty invested 65 crore Rupees. Tata Housing will be developing 400 units in its first phase and 150 villas in its second phase. Price range of each unit will be somewhere around 1.5 to 3 crore Rupees while the villas will cost more than 5 crore Rupees. The cost of project overall would be 650 crore Rupees by 2017.
About Tata Housing
At present, Tata Housing has 60 million square feet land under many stages of execution or planning as well as additional 19 million square feet in its plan. The products range from 5 lakh Rupees to 14 crore Rupees. Tata Housing has its projects in various cities and states in India namely Gujarat, Goa, Chandigarh, Bengaluru, Maharashtra, Kolkata, Bhubaneswar, Chennai and Gurgaon. It has plans to expand its presence across other cities in India.
Tata Housing also has its venture in foreign markets like Maldives. It is in the process of exploring various other markets in South Asian countries as well as Sri Lanka.
the following company has been made to pay a fine of between 3
to 5 billion U.S. dollars, for the 2010 Deepwater Horizon disaster?
[A]BP Corporation
[B]Repsol YPF
[C]Chevron Corporation
[D]ConocoPhillips
BP Corporation
which among the following telecom service provider has set up a
Network Experience Centre (NEC)in Gurgaon through which it can monitor its entire
network from one location?
[A]Reliance Communications
[B]Bharti Airtel
[C]Bharat Sanchar Nigam Limited
[D]Vodafone Essar
Bharti Airtel
Bharti Airtel has set up a Network Experience Centre (NEC) in Gurgaon through
which it can monitor its entire network from one location.The NEC, which is the first
of its kind in India, will be able to monitor Airtel’s network performance across
mobile, fixed line and broadband, DTH, m-commerce, international cable systems
and Internet peering points from a single location. This continuous stream of near
real time data will in turn enable Airtel to deliver a superior customer experience
across its product offerings. Designed specifically to be used as a command centre
in case of national emergencies and natural catastrophe, the earthquake-proof
facility also provides for a single control of command.
ONGC sold 26 percent Stakes to Japan’s Inpex Corp
Inpex Corp, Japan’s largest oil firm acquired 26 percent stake of Krishna Godavari basin of deepsea block of Oil and Natural Gas Corporation (ONGC) on 5 November 2012.
Both the firms have signed the agreement on the strategic partnership for exploration of hydrocarbons in one of the land area of KG Basin. Inpex is known for the expertise that it carries in deep water exploration, would be spending $35 million initially as its part of its share, which was already invested in the past by the consortium.
KG DWN 2004/6 the deep water block of KG Basin was awarded to a group of 5 players that included ONGC with 60 percent share and others namely GSPC, HPCL, Gail and Oil India with 10 percent share each under the New Exploration Licensing Policy round VI of the year 2006. The signing of this production sharing contract between the five members of the group was inked in the March 2007. The deep water block of KG Basin KG DWN 2004/6 is based at a distance of 300 kilometers from the coast of Andhra Pradesh and extends in an area of more than 10000 kilometer square and a water depth of nearly 3000 meter.
GAIL and RSPCL signed an Agreement of Joint Venture on Gas Supply Pipeline Project
The GAIL Gas Limited and the Rajasthan State Petroleum Corporation Limited (RSPCL) signed an agreement of Joint Venture on 5 November 2012 to lay down the natural gas supply pipeline in the state. Both the bodies will together formulate a long-term plan on commercial, domestic as well as industrial consumption of the gas.
The agreement was signed by GAIL Gas Limited Chief Executive Officer J. Vasan and Ajitabh Sharma Managing Director of RSPCL in presence of C.K. Mathew, State Chief Secretary. The joint venture would help in supply of pollution free LPG, CNG and LNG to consumers of different categories and would also be responsible for development of the CNG stations on the road sides of the state and national highways. The project would also supply the gas required by the industrial units that is coming up on the Delhi-Mumbai industrial corridor.
The transport, supply and distribution of gas would be carried after getting approvals from the Petroleum & Natural Gas Regulatory Board.
Online Travel Agency MakeMyTrip Acquired Hotel Travel Group
Indian Online travel company MakeMyTrip India Pvt Ltd on 6 November 2012 acquired the Hotel Travel Group (HT Group) for $25 million.
Hotel Travel Group under the name Hotel Travel is operating its website www.hoteltravel.com for more than ten years and is working from South Asian countries of Thailand, Singapore and Malaysia.
Talking of the Acquisition MakeMyTrip paid $15 million to the promoters of the HT Group partly in cash and partly in the form of MakeMyTrip shares in the first Closing which fell out on 6 November 2012. The rest amount of $ 10 million is supposed to be paid in the form of MakeMyTrip shares, in 3 annual tranches by March 2016.
The HT Group had a tie-up with around 80,000 hotels across the globe. The reservation & call centre facility is located in Thailand while the group also has offices in Hong Kong and the UK.
MakeMyTrip.com has its offices in 20 cities across India with two international offices in New York and San Francisco, in addition to its several franchise locations.
Hotel Travel Group under the name Hotel Travel is operating its website www.hoteltravel.com for more than ten years and is working from South Asian countries of Thailand, Singapore and Malaysia.
Talking of the Acquisition MakeMyTrip paid $15 million to the promoters of the HT Group partly in cash and partly in the form of MakeMyTrip shares in the first Closing which fell out on 6 November 2012. The rest amount of $ 10 million is supposed to be paid in the form of MakeMyTrip shares, in 3 annual tranches by March 2016.
The HT Group had a tie-up with around 80,000 hotels across the globe. The reservation & call centre facility is located in Thailand while the group also has offices in Hong Kong and the UK.
MakeMyTrip.com has its offices in 20 cities across India with two international offices in New York and San Francisco, in addition to its several franchise locations.
Volvo Group to Invest Two Thousand Crore Rupees in India
The joint venture of Volvo Group and Eicher Motors Ltd is setting up a plant at Pithampur in Madhya Pradesh, which have a full capacity to produce 100,000 engines by 2016.Volvo Group aims to source 30 per cent of these engines for its European operations.
The Volvo Group is very rapidly expanding its size and Business in India taking into consideration the fact of proposed investment and potential of the country.
About Volvo Group
The Volvo Group is very rapidly expanding its size and Business in India taking into consideration the fact of proposed investment and potential of the country.
About Volvo Group
The Volvo Group is the world’s second biggest truck company. It is Sweden based company which not only manufacture trucks and buses but also construction equipment with supplying of marine and industrial drive systems and financial services. Earlier the company also used to manufacture cars.
Volvo Group in India constitutes three legal entities — Volvo India Private Limited (VIPL) and Volvo Buses India (VBI) and VECV
Lacoste Acquired by Swiss Company Maus Freres
The French apparel company Lacoste that bear Crocodile symbol was bought by Swiss family-held group Maus Freres on 15 November 2012 in a deal which was valued at 1 billion euros ($1.3 billion).
Goldman Named 16 Indians as MDs and 3 as Partners
Goldman Sachs, the international financial services giant, promoted 16 Indians as the Managing Directors in the second week of November. Three other Indians were named partners at Goldman Sachs Group.
US-based group named 70 executives as the partners and 266 as the MDs and they will be holding positions starting from 1 January 2013. The three Indian partners are named Gaurav Seth, Vivek Bantwal and Amol Naik. The new partners will be based in America.
In the list of 266 people promoted to the designation of MD, 16 are India-based and these include Mitesh J Parikh, Manav Gupta, Nilesh Banerjee, Sameer Ralhan, Kunal Shah, Nita Patel, Dinkar Bhatia, Nikhil Choraria, Dinesh Gupta, Pooja Goyal, Hari Moorthy, Meera Bhutta, Amit Sinha, Monali Vora, Gunjan Samtani and Akshay Sahni.
Goldman Sachs announces its MD list each year and the partners’ list is announced one time in two years. Managing Director is the rank just below the partners’. In 2011, 261 executives were promoted to MD’s position. Partners at the Goldman are also known as Participating Managing Directors. The basic salary of the MD at the group is $500,000 and that of the partners is approximately $900,000. Both the executive classes of the senior management of group also enjoy considerable sum as well as bonuses.
Chairman and Chief Executive Officer of the global giant congratulated the selected ones for their achievements.
About Goldman Sachs
Goldman Sachs is the leading international financial services company that provides investment banking, securities and investment management, financial institutions, HNIs as well as corporations. It laid its foundation in 1869 and has its headquarters in New York. The offices are located all across the world in some of the leading financial centres. Goldman Sachs has approximately 32600 employees all over the world. In 2011, the number of employees at Goldman was 34200.
US-based group named 70 executives as the partners and 266 as the MDs and they will be holding positions starting from 1 January 2013. The three Indian partners are named Gaurav Seth, Vivek Bantwal and Amol Naik. The new partners will be based in America.
In the list of 266 people promoted to the designation of MD, 16 are India-based and these include Mitesh J Parikh, Manav Gupta, Nilesh Banerjee, Sameer Ralhan, Kunal Shah, Nita Patel, Dinkar Bhatia, Nikhil Choraria, Dinesh Gupta, Pooja Goyal, Hari Moorthy, Meera Bhutta, Amit Sinha, Monali Vora, Gunjan Samtani and Akshay Sahni.
Goldman Sachs announces its MD list each year and the partners’ list is announced one time in two years. Managing Director is the rank just below the partners’. In 2011, 261 executives were promoted to MD’s position. Partners at the Goldman are also known as Participating Managing Directors. The basic salary of the MD at the group is $500,000 and that of the partners is approximately $900,000. Both the executive classes of the senior management of group also enjoy considerable sum as well as bonuses.
Chairman and Chief Executive Officer of the global giant congratulated the selected ones for their achievements.
About Goldman Sachs
Goldman Sachs is the leading international financial services company that provides investment banking, securities and investment management, financial institutions, HNIs as well as corporations. It laid its foundation in 1869 and has its headquarters in New York. The offices are located all across the world in some of the leading financial centres. Goldman Sachs has approximately 32600 employees all over the world. In 2011, the number of employees at Goldman was 34200.
RIL welcomes CAG’s withdrawal of Performance audit on private operators
November 8th, 2012
Reliance Industries Ltd (RIL) conveyed that it has no objection to an audit by any government agency. The company appreciated India’s national auditor Comptroller and Auditor General of India (CAG) decision of not conducting performance audit of RIL-operated Krishna-Godavari oil and gas block off Andhra Pradesh coast. The CAG had said it does not conduct performance audit on private operators.
However,CAG also made it clear that audit of Reliance Industries-operated Krishna-Godavari (KG) oil and gas block off Andhra Pradesh coast has to be a performance audit and not just a financial one.
Which among the following firm announced that it will acquire 53.4 per cent stake
in United Spirits?
Diageo
The world's largest spirits maker Diageo Plc announced that it will acquire 53.4 per
cent stake in United Spirits for Rs 11,166.5 crore in a multi- structured deal, which
may provide Vijay Mallya a breather from troubles emanating from the grounded
Kingfisher Airlines.
Diageo to acquire stake in Vijay Mallya’s USL
November 11th, 2012
International liquor major Diageo to acquire 53.4% stake in Vijay Mallya-owned United Spirits Ltd. (USL) for Rs.11,166.50 crore. Diageo has entered intoagreements with United Breweries (Holdings) Ltd. and USL to acquire 27.4% stake in USL for Rs.5,725 crore at Rs.1,440 a share. As a result of this move, UB Holding and associate companies will sell 19.3% stake to Diageo and a large part of this money will directly go to UB Holdings, which will de-leverage its balance sheet.
United Spirits Ltd. (USL) for Rs.11,166.50 crore. Diageo has entered intoagreements with United Breweries (Holdings) Ltd. and USL to acquire 27.4% stake in USL for Rs.5,725 crore at Rs.1,440 a share. As a result of this move, UB Holding and associate companies will sell 19.3% stake to Diageo and a large part of this money will directly go to UB Holdings, which will de-leverage its balance sheet.
After this stake sale, the UB Holdings group’s shareholding in USL will come down to 14.9 per cent. Mr. Mallya will continue as Chairman of USL and UBHL.
As this agreements will trigger the SEBI’s takeover code, Diageo will have to launch an open offer to buy 26% stake from the public at Rs.1,440 a share. The open offer will cost Diageo Rs.5,441 crore. Shareholders need to approve this proposal. On completion of this process, Diageo will hold a total of 53.4 per cent stake in USL with an aggregate cost of Rs.11,166.50 crore.
Analysts held that this was a good deal for Mr. Mallya the deal is in line with market expectations and Mr. Mallya fetched more money than expected
L&T acquires Henikwon Corporation
Engineering giant Larsen & Toubro (L&T) acquired Malaysia-based electrical equipment manufacturer Henikwon
Corporation.
The acquisition was made by L&T’s wholly-owned subsidiary Tamco Switchgear, a part of the engineering major’s
electrical and automation (E&A) business.
Henikwon Corporation manufactures low and medium voltage bus duct systems.
Bus duct is a cost effective means of providing power and replaces the conventional cabling system.
Vaccine-maker Serum Institute of India on 4 July 2012 bought polio vaccine maker Bilthoven Biologicals for 550 crore rupees (80 million euro). The acquirement gives Serum a manufacturing base in Europe and greater access to European and U.S. markets. Bilthoven Biologicals was owned by the Netherlands government where as the Serum Institute of India is owned by Cyrus Poonawalla Group.
The initial amount of 220 crore rupees (32 million euro) was already given for 100 percent shares in the Bilthoven Biologicals where as the rest amount of 330 crore rupees will be paid within three-year period with other liabilities in the company. Serum planned to invest about 70 million to 80 million euros with the acquisition amount in three years to grow polio vaccine maker manufacturing capacity and to meet capital requirements.Due to the acquisition, Serum Institute will get access to technology and proficiency for making Injectable Polio Vaccine (Salk).
Serum Institute is centred in Pune, India. It is the fifth largest vaccine maker by volume across the world. Bilthoven Biologicals is manufacturing 20 million vaccines doses per year. It sells the vaccines to Europe and other developing countries
Payment
Serum would likely to attain the fund through internal growth and a capital loan from banks. It had attained a turnover of 1700 crore rupees in 2011-12 where 700 crore rupees was the profit.
Mahindra invested 100 crore rupees for Research and Development (R&D) centre for two-wheelers on 4 July 2012 with the investment plan of 500 crore rupees till 2017. It will enable Mahindra two wheelers to undertake in-house design and development of engine technology for its motorcycles.
Pune R&D centre is the third largest two-wheeler centre in India. It has 175 engineers and designers. The facility has an Engine Development Centre (EDC), vehicle design & development facility, testing facilities and prototype centre.
Mahindra also launched two new engines-110cc and 300cc which was developed at the R&D centre as well as the Duro DZ which was fitted with a fuel-efficient micro hybrid technology engine. Duro DZ would likely to be launched till September 2012.
Mahindra and Mahindra is an Indian multinational automaker. It is headquartered in Mumbai,India. It is one of the largest automobile manufactures in India and a subsidiary of Mahindra Group. It was founded by K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed in 1945.It is a major manufacturer of commercial vehicles, two wheelers, and service vehicles.
Vodafone on 3 July 2012 agreed to takeover 1.04 billion euro of British firm cable and Wireless Worldwide (C & WW). The decision was taken after Tata Communications withdrew itself when it failed to agree on a price.
INDALCO----ALUPURAM
HINDALCO---RENUKOOT
BALCO-----KORBA
NALCO-------DAMANJODI
TATA GROUP OF INDUSTRIES----
VOLTAS, TITAN, RALLIS INDIA, INDIAN HOTELS
indian auto major acquired the british luxury brand land rover is tata
COAL INDIA LIMITED IS HIGHEST IPO SUBSCRIPTION IN THE INDIAN PUBLIC SECTOR COMPANY
PUBLIC SECTOR MORE IN TRANSPORT SECTOR
LIFE INSURANCE CORPORATION OF INDIA IS A CORPORATION ESTABLISHED BY A SPECIAL ACT OF PARLIMENT
Tech Mahindra on 17 September 2012 acquired 51% stake in Comviva technology limited for 260 crore.
The new brand identity is now called as Mahindra Comviva, which reflects combined strength and spirit of both the entities.
With this Tech Mahindra enters into the world of Mobility Products and is set to build portfolio in Mobile VAS, Mobile Money and Mobile payments space.
The acquisition is going to enhance Tech Mahindra’s capabilities in the mobile VAS domain and will also provide access to a marquee client base, enabling significant cross-selling opportunities.
Comviva technology is Bharti group owned mobile value added service (VAS) provider and have Vodafone, Idea, NTT Docomo in its client list. It was also earlier named as Bharti Telesoft when it was 50% owned by Bharti group. Comviva Technologies Ltd. was formed in 1999, and has grown rapidly to become the global leader in providing mobile VAS and financial solutions.
Tech Mahindra Limited is an Indian provider of networking technology solutions and business process outsourcing (BPO) services to the global telecommunications industry. It is a joint venture between the Mahindra Group and BT Group plc, UK with M&M (Mahindra and Mahindra) holding 44% and BT holding 39% of the equity.
LARGEST PRIVATE SECTOR FIRM IN INDIA---RELIANCE INDUSTRIES
Engineers India Ltd. (EIL) on 6 June 2012 announced to secure Consultancy Services Contract from Bharat Petroleum Corporation Ltd. (BPCL) for Integrated Refinery Expansion Project (IREP) at Kochi. It costs around 720 crores rupees.
The project involves expanding crude oil refining capacity from 9.5 million metric tonnes per annum (MMTPA) to 15.5 MMTPA.
EIL would likely to provide the consultancy services for project management, process design, residual process design, detailed engineering, procurement, inspection, expending, tendering, construction management and supervision. With this, EIL also had 50 petroleum refinery projects.
EIL would likely to provide the consultancy services for project management, process design, residual process design, detailed engineering, procurement, inspection, expending, tendering, construction management and supervision. With this, EIL also had 50 petroleum refinery projects.
Besides all this, EIL also providing its services to various refineries in India like Indian Oil Corporation Ltd (IOC), BPCL, Hindustan Petroleum Corporation Limited (HPCL), KRL, Chennai Petroleum Corporation Limited (CPCL), Numaligarh Refinery Limited (NRL )and Mangalore Refinery and Petrochemicals Ltd. (MRPL).
EIL is a Total Solutions Consultancy Company. It is the Engineering, Procurement and Construction. (EPC) Contractor in the field of Petroleum Refining, Petrochemicals, Pipelines, Oil & Gas Terminal & Storages, Mining & Metallurgy and Infrastructure projects. EIL is also expanding into nuclear, solar and thermal power, water and solid waste management, city gas distribution and fertilizers sectors.
GAIL (India) Limited has signed a 20-year liquefied natural gas (LNG) sales and purchase agreement (SPA) with Gazprom Marketing and Trading Singapore (GM&TS), a 100% wholly-owned subsidiary of Gazprom Marketing & Trading
The ex-COO Vishnu Bhagat and former MD Subhender Singh Prem of Reebok India along with three more executives were arrested by the Special Investigation Team (SIT) of Gurgaon on 19 September 2012. All these people are accused of doing fraud of Rs 870 Crore with the company. They were involved in selling the goods in the market via ghost representatives using forged bills and not depositing the money back on the companies account.
The duo along with other three executives namely Surakshit Bhatt, Sanjeev Mishra and Prashant was booked on the charges of different charges under IPC (Indian Penal Code) including fraud, criminal conspiracy and breach.
HCL Technologies on 19 September 2012 signed a multi-million dollar deal with the Texas-based Freescale Semi-conductor and embedded processing solution providing company. As per the deal, HCL will be involved in transformation of Freescales IT infrastructure apart from being an exclusive technology partner for a period of five years. HCL will offer helpdesk support to Freescale across 20 countries with a user base of across 19,000 employees.
Oil Ministry orders diversion of KG gas to Andhra power plants
The Oil Ministry for the second time in a year, ordered diversion of natural gas from Reliance Industries’ KG-D6 fields
to fuel-craved power plants in Andhra Pradesh. The Ministry issued orders that 2.5 million cubic meters per day of gas,
which state-owned GAIL India gets from KG-D6 fields, be diverted to Transmission
Corp of Andhra Pradesh Ltd.
GAIL uses KG-D6 gas for drawing out of LPG and GAIL will make up for the lost
volume via imports. In turn the GAIL will charge APTransco the price of imported
liquefied natural gas (LNG) for the diverted 2.5 million cubic metres per day from KGD6.
This order of gas swap was given so as to assist electricity generation in Andhra
Pradesh Plants which in turn have to pay the actual imported cost of LNG. KG-D6 gas
is priced at $4.205 per mmBtu. RIL currently produces about 35 mmcmd of gas from
KG-D6 fields.
Public sector companies Oil India Ltd and Indian Oil Corporation Ltd on 4 October 2012 announced acquisition of 30 per cent stake in Houston-based Carrizo Oil & Gas Inc's liquid rich shale assets in Colorado.
Both the companies together are going to invest $82.5 million that includes an straight cash payment of $41.25 million. Remaining $41.25 million will be paid based on future drilling and development costs. OIL India will have 20 per cent stake, while Indian Oil Corporation would have 10 per cent stake.
Currently, the assets produce 1,850-2,000 barrels of oil & oil equivalent (BOE). The Indian companies would get 600-700 Barrels of Oil Equivalent as their share.
This is OIL India and Indian Oil Corporation's first shale gas acquisition in the US.
Carrizo is a Houston-based energy company actively engaged in the exploration, development, exploitation, and production of oil and natural gas, primarily in the Eagle Ford Shale in South Texas, the Barnett Shale in North Texas, the Marcellus Shale in Appalachia, the Niobrara Formation in Colorado, the Utica Shale in Eastern Ohio, and in proven onshore trends along the Texas and Louisiana Gulf Coast regions. Carrizo is also actively developing its oil discovery known as the Huntington Field in the UK North Sea.
Ravi Rishi, owner of the Vectra Group called by the CBI for investigation. Mr Rishi, a London-based
businessman is the chief of Vectra Group which has majority stake inTatra trucks, a Czech
manufacturer.
The interrogation is probable to relate to the allegements of offering a bribe of Rs 14 Crore to Army Chief General
V.K.Singh for the purchase of their vehicles, as averred by V.K.Singh in his letter to the Prime Minister.
Vodafone issues notice to Indian Government over tax issue
Vodafone issued notice to the Indian government under Bilateral Investment Treaty over tax issue between
India and the Netherlands.
Why Vodafone served this Notice?
The Dutch subsidiary of Vodafone: Vodafone International Holdings BV (VIHBV)served a notice of dispute on
the Indian government regarding proposals in the Finance Bill 2012 which it claimed, violated the
international legal protections granted to Vodafone and other international investors in India.
In the Budget, the government has announced a proposal to amend the Income Tax Act to bring overseas deals under
tax net after the Supreme Court held that the UK firm was not liable to pay the 11,000 crore rupees in taxes.
What is expected from India under the BIT b/w India and Netherlands?
Under the BIT between India and the Netherlands, the Indian Government is obliged, amongst other things, to accord
fair and equitable treatment to investors; provide full protection and security; not breach the legitimate expectations
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
of investors in making investments; not deny justice or breach formerly provided assurances; and not take steps to
indirectly expropriate the investment.
Lakshmi Mittal tops Asian Rich List
As per the the Asian Rich List, naming Britain’s ’101 Wealthiest Asians 2012′ and brought out by
EasternEye, a publication of the Asian Media & Marketing Group (AMG), NRI steel tycoon Lakshmi
Mittal and his family continue to head the Asian Rich List-2012 despite their wealth coming down by 2
billion pounds at 13.5 billion pounds.
The Hindujas, whose activities span from transport to oil are second in the list.
Anil Agarwal, Chairman of Vedanta Group, is third in the list.
Lord Swraj Paul, Chairman of Caparo and Chancellor of Westminster and Wolverhampton Universities, is 7th in the list.
Kingfisher suspended by IATA for non-payment of dues
Struggling Kingfisher Airlines was suspended for non-payment of dues for the 2nd time in just over a month by the IATA
from participating in a system which enables the airlines to settle their interline billings globally.
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
IATA has suspended Kingfisher Airlines’ participation in the IATA Clearing House (ICH)as the Kingfisher Airlines did not
clear up their ICH account within the set time limit. Kingfisher’s participation in the ICH will be restored after the airline
fulfils the ICH needs. This is the second time since February 2, 2012 that the cash – short of money carrier has been
suspended from ICH for not paying its dues. Earlier, its status was restored 10 days later.
Airlines and Airline-associated companies join the ICH to settle accounts for services provided by them to other
airlines or firms.
The bank accounts of Kingfisher Airlines have been frozen by the income tax, service tax and excise and customs
departments for faulting to pay dues. Kingfisher Airlines never made a profit since its inception in May 2005, reported
a net loss of Rs 444.26 crore (Rs 4.44 billion) in the December 2011 quarter.
recently launched
the world’s largest LEED Platinum green hotel (an eco certificate)------ITC Ltd
ITC Ltd Recently ITC launched its imposing Grand Chola, a 600-key luxury hotel in
Chennai.In terms of room inventory, this will be the third largest hotel in the country,
after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai.
government has approved sale of its minority stakes
in four public sector firms to raise up to Rs 15,000 crore. Which among the following
is not one of them? [A]MMTC [B]Oil India Ltd [C]Hindustan Copper Ltd [D]Rashtriya
Ispat Nigam Ltd (RINL)
The board of Reliance Industries Ltd (RIL) has approved the buyback of up to 120 million fully paid-up equity
shares of Rs 10 each, at a price not exceeding Rs 870 an equity share, payable in cash, up to an aggregate amount
not exceeding Rs 10,440 crore, from the open market. RIL’s move offers an exciting exit opportunity to
shareholders by giving a reasonable premium to the current market price.
Buybacks are seen as an efficient return of cash to shareholders in a highly tax efficient process. RIL: the
country’s biggest company by market value, operates two adjacent plants at Jamnagar in Gujarat which together
make up the world s biggest refining complex.
Government approved RIL’s $1.529 billion Investment Plan for Satellite Fields in KG-D6 Block
The Union government on 3 January 2012 approved Reliance Industries' (RIL) $1.529 billion investment plan for developing four satellite fields in the flagging KG-D6 block. RIL’s investment plan will boost falling output in the Krishna-Godavari Basin KG-D6 block.
The investment proposal was signed by the three partners in the block- RIL, UK's BP Plc and Niko Resources of Canada and the representative of DGH.
The KG-D6 block oversight committee, which includes officials from the Oil Ministry and its technical arm, the Directorate General of Hydrocarbons (DGH), met for the third time in three months on 3 January to finally approve the proposal.
The MC approval, which is the final approval an operator needs before beginning work, put a cap on the cost of developing the four fields that surround the currently producing Dhirubhai-1 and 3 (D-1 & D-3) fields in the KG-D6 block.
The cost cannot vary by more than 15%. The MC had at its two previous meetings in November and December 2011 refused to approve the field development plan (FDP) for the Dhirubhai-2, 6, 19 and 22 (D-2, D-6, D-19 and D-22) fields after the government representative raised certain objections. RIL agreed to cap spending on the four fields at $1.529 billion, plus or minus 15%.
The four fields can produce 10 million cubic metres of gas per day by 2016, which will help shore up output from the block, which has seen a 35% decline in production in the past 15 months.
RIL entered Media & Entertainment Sector by investing in Raghav Bahl-controlled Network18 Group
Mukesh Ambani’s Reliance Industries Ltd (RIL) entered the media and entertainment sector by making a major investment in the Raghav Bahl-controlled Network18 Group, one of India’s largest broadcast companies. Network18 owns several news channels and has significant interests in the film and general entertainment broadcast businesses.
Reliance Industries Ltd. conglomerate on 3 january 2012 unveiled a complex agreement to raise funds to help big media company Network18 pay down debt as well as provide content to Reliance’s new fourth-generation telecommunications network. RIL will help Network18 fund the purchase of a leading regional language rival, Eenadu and at the same time also ensuring a stake for itself in Network18's expanded business
As per the Agreement
In a deal set to be a landmark transaction in the media and entertainment business, RIL will first invest about Rs 1700 crore into the Network18 group. TV18 and Network18, the two listed companies of the group, will use this investment along with capital from other investors to pay debt and buy out a large part of RIL's stake in Eenadu.
The two businesses will then come together creating a portfolio of 25 channels which will deliver a plethora of programmes to audiences ranging from village folk in Rajasthan to business executives in a Mumbai penthouse.
RIL will get a stake eventually in the holding company which will run this diverse business and will also have the right to show the channels of this combined entity to subscribers for its soon-to-be-launched broadband 4G service.
A trust called the Independent Media Trust (IMT) will invest the money on behalf of RIL in optionally convertible debentures to be issued by the holding company of Network18.
As part of the deal, Infotel Broadband Services, an RIL subsidiary struck an agreement with Network18 and TV18 to grant preferential access to its channels through the 4G broadband network it is rolling out across the country.
TV18 and Network18
The boards of TV18 and Network18 had approved plans to raise Rs 2700 crore each through two separate rights issues. TV18 is to raise money at a price of up to 40 per share, while Network18, which is the holding company of TV18 will raise it at a price of up to Rs 60 per share. The net amount to be raised is about Rs 4000 crore.
Network18 will use a portion of the money, about Rs 1,300 crore, to invest in the TV18 rights issue and maintain its shareholding at about 50%. The remaining will be used to bring down its debt of about Rs 1777.89 crore. TV18 will use a portion of the money, about Rs 2100 crore, to buy the Eenadu channels and become debt free.
Eenadu
Eenadu is one of the country's largest media companies and operates several regional language news and entertainment channels. It also operates the highly successful Telegu language news and entertainment channel.
RIL invested about Rs 2600 crore in Eenadu channels. It owns 100% economic interest in ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Urdu and ETV Bihar. It also owns 100% economic interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya. In the Telugu channels, ETV Telugu and ETV Telugu News, RIL's economic interest is 49%.
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