New Delhi, May 13: State-run Bharat Heavy Electricals on Monday said it would set up Integrated Coal Gasification Combined Cycle (IGCC) power plant at Vijaywada with Andhra Pradesh Power Generation Corporation (APGenco).
"Bhel has signed a Memorandum of Understanding with APGenco to set up country's biggest 125 MW IGCC power plant at Vijaywada," a company release said.
"Bhel has earmarked on several initiatives to meet the growing demands of the country's power sector," Bhel chairman and managing director K Ravi Kumar said. The state-run company has also formally taken over Visakhapatnam-based Bharat Heavy Plate and Vessels (BHPV). "We are confident of meeting the capacity addition targets for the Eleventh Plan period, with BHPV complimenting our business," Kumar said.
BHPV's turnover is expected to cross Rs 1,000 crore in five years and the capital expenditure of the company for three years is Rs 236 crore.
The Andhra Pradesh government has extended various concessions for the revival of the BHPV. The concessions include the transfer of title of land measuring 386.73 acres in possession of the BHPV as gift title deed in favour of BHPV and also waiver of registration and stamp duties. Waiver of Sales Tax arrears of Rs 42.16 crore and waiver of Nala Tax of Rs 43 lakh.
"Today, we are crossing a milestone in power generation technology with the signing of MoU between APGenco and Bhel for setting up a 125 MW IGCC plant at Vijaywada," Union minister for heavy industries and public enterprises Santosh Mohan Dev said.
Bhel plans to increase its power equipment manufacturing capacity from 10,000 MW to 15,000 MW per annum by 2009.
Bureau Report
Tuesday, May 13, 2008
India`s largest coal-based power plant
Thursday, April 17, 2008
Oil price hits record USD 115
London, April 17: The price of New York oil on Wednesday struck a historic peak at 114.50 dollars, winning support as the US currency tumbled to an all-time low against the euro, traders said.
Later Wednesday, New York`s main oil contract, light sweet crude for delivery in May, stood at 114.20 dollars a barrel, up 41 cents on Tuesday`s close.
London`s Brent North Sea crude for June struck its own record high of 112.35 dollars on Wednesday. It later stood at 111.96 dollars, up 38 cents.
"It`s very much the dollar that`s (behind) the increase," said MF Global analyst Robert Laughlin.
In the foreign exchange market, the European single currency rocketed to a record 1.5968 dollars on Wednesday after official data showed annual inflation across the eurozone had hit an all-time peak.
Inflation in the 15 nations sharing the euro jumped to an annual rate of 3.6 percent in March, the highest since the launch of the European single currency in 1999.
The weak dollar encourages demand for dollar-priced goods like crude which become cheaper for buyers using stronger foreign currencies, traders said.
"Crude oil is advancing now towards the target of 115 dollars," said Petromatrix analyst Olivier Jakob.
This week, oil prices scaled historic heights, breaking through 114 dollars late Tuesday as investment demand was also driven by widespread concerns over tightening world energy supplies, analysts said.
Traders will focus later Wednesday on a crucial inventories report in key energy consumer the United States.
Analysts said recent price gains were underpinned by expectations that the inventory report would show further declines US in gasoline (petrol) stockpiles.
Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore, said oil prices would continue to rally.
"The market has generally ignored bearish news (such as forecasts of slower demand) and focused on the bullish," Shum said, suggesting that the US report would likely show a fall in motor fuel inventories.
Recent production stoppages have also stoked supply worries but the reopening of seveal facilities in Mexico on Tuesday eased those concerns, analysts said.
Mexico said Monday it had closed four export terminals due to bad weather while oil giant Shell said shipments through its 1.1 million-barrel-per-day Calpine pipeline in the southern United States had been temporarily disrupted.
Reports also emerged of minor supply outages in Nigeria.
"The physical oil market appears tight and appears highly sensitive to news of any supply interruption," said Fairfax analyst John Mayer.
"Further supply issues are expected in Nigeria and other difficult areas for the industry."
Bureau Report
Monday, April 14, 2008
Holiday of Indian Share Market
1. I am of the opinion that it is a party time when ever the market remains closed for a holiday. One can just pack the bags and head for a cool destination which will be refreshing for the day traders especially.
2. So,Indian stock market will remain closed on Monday i.e. 14 April,08 on account of Ambedkar Jayanti and will re-open on Tuesday i.e. 15 April, 2008.
Monday, March 31, 2008
IPOs in 2008 : Investors lose quarter of money.
Investors have lost about quarter of the amount increased by 18 IPOs this calendar year as 13 of them are trading below their issue prices, a top Finance Ministry official said on Saturday. Out of the 18 IPOs launched in 2008, 13 were trading at a discount last week implying losses to investor of about a quarter of the total IPO amount. I believe, it must be larger today, Finance Secretary D Subarea said at a tutorial on Securities Contracts (Regulation) Rules here. If the state of affairs continues, it would be more and harder for company to raise money from the capital market.
The Finance Secretary attributed weak sentiment in the market to increasing risk-aversion among investors. “The stock market gives 15 billion dollars in 2007 to support investments of firms. But, as global hazard dislike has risen in the past few months, this has dented investors sentiments in India too,” he added. Of the total IPOs listed on stock connections this year, 11 companies had an issue price above Rs 100. The aggressive pricing of the IPOs have lead the companies to lose substantially being unable to maintain the prices in long-term.
In fact, Reliance Power launched with much fanfare, closed at Rs 372.50 on the opening day, much below its present price of Rs 450 a share, forcing the company to issue three bonus shares for every five held by non-promoters. However, state-run Rural Electrification Corporation was do business higher at Rs 109.05 against its issue price of Rs 105 and GSS America at Rs 640.85 against an issue price of Rs 400. The bearish feeling in the market has led to 13 firm’s spectator crimson in the market. The Sensex, which opened above 20,300 points in January, has dipped 4,000 points to about 16,400 points since then till the past.
Tuesday, February 19, 2008
New Chairman SEBI
1. Mr CB Bhave has taken the charge as a chairman of the Securities and Exchange Board of India (SEBI) from M. Damodaran for a period of three years.
2. Mr CB Bhave has held a number of prestigious appointments to his credit namely as the CMD of the National Securities Depository Limited (NSDL).
3. Bhave has been instrumental in the creation of the National Stock Exchange and the depositary trade.
4. He has 16 years of experience in the capital market and has played a crucial role in promoting online trading and has revolutionised Indian stock market.
5. Hope he is able to perform the justice to the appointment and we all wish him best of luck as the head which wears the crown never sleeps.
Wednesday, February 13, 2008
New Update about NTPC : NTPC Update
1. I have always liked NTPC as it is better than reliance Power behind which whole world was running and now the tables are turned as the stock is quoting below offer price considerably.
2. NTPC has a support at Rs 187 and when the market bounces back by virtue of the technical bounce back , the stock can touch 200-212.
Tuesday, February 12, 2008
Tata Motors Path Breaking Move
1. Tata Motors in a path breaking move is now embarking on another project to come out with electric and hybrid vehicles in both passenger, including its flagship Indica, and commercial segments.
2. Hats off to engineers of tata motors who are working on blended fuel, partial and complete hybrids, electric vehicles and hydrogen-powered vehicles, some of which could be commercially produced as early as 2011.
3. It is noteworthy that the company is working on a petrol-electric hybrid vehicle capable of delivering about 20 km per litre complying with BS III and IV emission norms that could be applicable to Indica and its variants and also a possible adaptation of the concept to other platforms in future.
Monday, February 11, 2008
Friday, December 21, 2007
Bhilwara Energy pre-IPO placement likely in Feb '08
Riju Jhunjhunwala, Rajasthan Spinning & Weaving Mills has informed CNBC-TV18 that Bhilwara Energy will go for a pre-IPO placement & IPO in the next 4-5 months. The pre-IPO placement likely in February 2008, Jhunjhunwala said. The company is looking to raise USD 350-400 million via pre-IPO and IPO, he added. Bhilwara Energy will have 1800-2000 MW hydro capacity in the next 3-4 years, he said.
Excerpts from CNBC-TV18’s exclusive interview with Riju Jhunjhunwala:
Q: Can you start off by telling us a little bit about the plans on Bhilwara Energy and what happens to RSWM stake?
A: Bhilwara Energy is basically the power company of the group. It focuses only on hydropower. We have one project that is operational; it is a 100 megawatts project. Another 200 megawatts is in final stages of completion and will start next year.
Over and above this, we have more than 1,600 megawatts in the pipeline, which we will start construction over a period of now to the next two-three years. So, the next five years Bhilwara Energy, we really see it as a 1,800 to 2,000 megawatts hydro-only company.
Over there, the plans of fund requirements are huge. So, in the next 3-6 months, we are really planning something over there on how to get the first round of funding for Bhilwara Energy. RSWM holds a 26% stake in that, the balance is held by other group companies - HEG and the other promoter firms.
So, they should really see a value unlocking as and when that happens.
Q: You must have done some internal studies on how you value Bhilwara Energy as a company. Does it look like the most likely capital-raising road or the first step could be an IPO?
A: Most definitely; we are very keen to look at the possibility of an IPO. In fact we are already talking to some people now. We will probably be doing this in two stages, starting off with the pre-IPO stage and then finishing it off with an IPO - all within the next 3-6 months. The total fund requirement for our initial 18 months would be around USD 350-400 million, which we plan to split between the pre-IPO and the IPO of 30:70 kind of a ratio.
Valuations are anything, whatever deserves in the power sector today. We are trying to look at the pricing and all of that as of now.
Q: But still you would have some initial thoughts, leading up to the pre-IPO placement?
A: Three months back, we completed a process of private equity to New York Life and Wachovia Bank. That was done at an equity valuation of around Rs 1,400 crore for this company. At that time this company was more or less a 1,200 megawatt company. A lot has happened for us in the last six months, including the sector and our own projects that we have bagged. We expect it to be in multiples of that - without going into the exact number, definitely, significantly higher than that valuation.
Q: How much stake dilution does this involve for RSWM and for HEG?
A: The total promoter holding in Bhilwara Energy is around 92% today and anywhere between 15-20% of a stake dilution in phase one would be a comfortable number there. So, proportionately the stakes of these companies would also go down.
Post-IPO, we expect to hold around 20-21% of this company in RSWM.
Q: You would make the pre-IPO placement to the same investors, New York Life or Wachovia Bank or have identified some other investors?
A: That process will start now - the process of selecting the pre-IPO. Obviously, they have the right of first refusal as per the agreements. But then we are open to looking at other investors as well.
Q: What is happening with the core business; we understand you want to expand into the retail side as well?
A: Retail is not something that we are looking at in RSWM. It is more of a yarn play over there. Within yarn, we are amongst the top three players in India and we have significantly ramped up capacity over there, the effect of which will start coming in now.
All our expansions are now complete, including our 46 megawatt thermal power plant which is in RSWM as a captive generation. That has started commercial production just about last month. Come January, when the plant stabilises, you will see tremendous benefits on the cost reduction side coming on to RSWM itself and add it with the expanded capacity.
So, next financial year, we expect RSWM’s core business itself to give us very good jumps compared to the last one or two years. With the market scenario slightly improving in the textile side, we have gone through a bad patch over the last 6-7 months, but things seem to be changing now.
With that happening, I am sure RSWM core business itself for us is looking quite interesting as well.
Q: By when do you think this whole process will be completed: the pre-IPO and the IPO in 2008?
A: Pre-IPO, we are really targeting the month of February - completing the pre-IPO process. And IPO, I am not really in a position to say right now - whatever time it takes for the approval from Sebi. But we are working it at our end quite aggressively. As soon as possible, we would like to do that as well.
Thursday, December 20, 2007
Manaksia IPO subscribed 9 times
Manaksia IPO subscribed 9 times
Manaksia, a multi division and multi location company focusing on manufacturing of value added metal products and metal packaging products, has subscribed 8.79 times, according to data available on NSE website.
The public issue received bids for 13.92 crore equity shares as against 155 lakh shares on offer.
Big support was seen from qualified institutional investors, their reserved portion subscribed 13.7 times followed by retail and HNIs with 5.09 times and 2.72 times, respectively.
Investors Times
Qualified institutional buyers - 13.70
Non institutional investors - 2.72
Retail individual investors - 5.09
Employee Reservation - 0.05
Total - 8.98
The company had entered capital market with a public issue of up to 15,500,000 equity shares of Rs 2 each for cash at a price band of Rs 140 to Rs 160 per equity share.
The total issue would constitute 22.29% and net issue 22.15% of the fully diluted post issue paid up capital of the company, respectively.
The company intends to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
ICICI Securities is the book running lead manager for the issue. The equity shares of the company are presently listed on the CSE and the equity shares offered through this public issue are proposed to be listed on the BSE, NSE and the CSE.
Stocks in news: HEG, IFCI, Deccan Aviation
Stocks in news:
Board meetings:
HEG board to consider issue of convertible warrants on preferential basis to promoters
United Phosphorus on transfer of Haldia Division of subsidiary SWAL Corporation
Zicom Electronic on issue of warrants to non-promoters on preferential basis
Ex-dividend:
Ahmednagar Forgings (Rs 2/sh), Amtek Auto (Rs 3/sh), Amtek India (Re 1/sh) and Shri Lakshmi Cotsyn (Rs 2/sh)
Indian ADRs:
VSNL up 22% and MTNL up 4%
IFCI stake sale called off, management control reason behind deal being called off: Sources
IFCI not to pursue stake sale talks with any bidders, says scraps entire plan to sell 26% stake
Kingfisher to merge into Air Deccan; merged co to be subsidiary of UB Holdings; Deccan to remain listed, to be renamed Kingfisher Airlines later
Deccan, UB Borads to meet in Jan to finalise merger; Deccan’s helicopter business to be demerged
Kingfisher-Deccan combine to have highest market share
Bajaj Hindusthan to exercise entitlement of 5.7 cr shares at Rs 50/sh in Bajaj Hindusthan Sugar; to make open offer
NSE F&O curb
New in curb: Adlabs, Triveni
Already in curb: Aptech, Essar Oil, Gitanjali Gems, IFCI, Nagar Fert, Power Grid
Out of curb: Alok Industries
Madras HC restrains TVS from booking; distribution or selling recently launched 125cc Flame - ET
Manaksia IPO subscribed 8.79 times, Aries Agro IPO subscribed 7.62 times
Precision Pipes IPO closes today; subscribed 0.69 times till now
Porwal Auto IPO closes today; subscribed 0.83 times till now
PSL receives gas pipe supply order worth Rs 125 cr
Welspun India buys 76% stake in Portugal's Sorema; enterprise value Rs 60 cr
Andrew Yule
Gets BIFR approval for Rs 491 cr revival package: NW18
Says to divest 26% stake in Tide Water: NW18
M&M to hikes prices by up to Rs. 10,000 from Jan 1
Thomas Cook says:
No plans to go in for private placement of equity
Rights issue likely to be offered in second half of 2008
Nicholas Piramal forms JV with Arkray Inc, Japan for marketing diagnostic products in India
Prime Securities board meet on Dec 27 to considerWithdrawal of
special resolution for buy-back
Increase in FII investment limit
Issue of shares / warrants on preferential basis
Phoenix Mills board approves splitting FV of shares from Rs 10 to Rs 2
RIL, Tata Chem in talks for KG basin gas sale, deal only if HC lifts stay on third-party sale - ET
Tata Steel in talks with Vale, world’s largest producer of iron ore to set up steel slab plant in Brazil - BS
MRF plans Rs 500 cr new facility in TN - BS
NTPC scouts for USD 1bn acquisition overseas, deal to open up opportunities to secure coal, gas - Mint
Mudra Lifestyle board approves
setting up of Spandex/elastomeric yarn project worth Rs 300 cr
Issue of 30 lakh warrents to promoters at an effective price of Rs 120/sh ( CMP 107)
Issue of FCCB/ADR/GDR of Rs 200 cr
Wednesday, December 19, 2007
Manaksia IPO subscribed 2.37 times
Manaksia, a multi division and multi location company focusing on manufacturing of value added metal products and metal packaging products, will close for subscription today. It was subscribed 2.37 times, till yesterday, according to data available on NSE website.
The public issue received bids for 3.67 crore equity shares as against 155 lakh shares on offer.
Support was seen from qualified institutional investors, their reserved portion subscribed 4.6 times.
The company had entered capital market with a public issue of up to 15,500,000 equity shares of Rs 2 each for cash at a price band of Rs 140 to Rs 160 per equity share.
The total issue would constitute 22.29% and net issue 22.15% of the fully diluted post issue paid up capital of the company, respectively.
The company intends to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
ICICI Securities is the book running lead manager for the issue. The equity shares of the company are presently listed on the CSE and the equity shares offered through this public issue are proposed to be listed on the BSE, NSE and the CSE.
Rel Comm acquires telecom license in Uganda, stock gains
At 1:55 pm, Reliance Communications was quoting at Rs 725, up Rs 7.20, or 1%. It has touched an intraday high of Rs 730 and an intraday low of Rs 710.15.
According to sources the company has acquired telecom license in Uganda to offer GSM services and is likely to invest USD 200 million, reports CNBC-TV18.
It was trading with volumes of 774,757 shares. Yesterday the share closed down 5.55% or Rs 42.15 at Rs 717.80.
Reliance Petroleum among major gainers
It was trading with volumes of 18,292,412 shares. Yesterday the share closed down 6.05% or Rs 13.40 at Rs 208.25.
