Corporate Announcement

The government is likely to launch the disinvestment programme for 2015-16 with possibility of power and heavy industry for the first issues.The Modi government's first full Budget in February announced a Rs 695 bn plan to sell stakes in government companies. Of this, the government has budgeted Rs 410 bn through stake sales in public sector units and Rs 285 bn via strategic disinvestment. The disinvestment department intends to launch at least one issue every month to meet this target.

The government is set to offer the final batch of road projects for this financial year. A total of nine, with a cumulative length of 895 km and project cost of Rs 178 bn. Three are expected under a Build-OperateTransfer (BOT) model. The other six are understood to be put out under Engineering-Procurement-Construction (EPC).

GMR Infrastructure plans to raise Rs 40bn over the next one year through divestment of assets and share sale to reduce debt and ease cash flow. It has also put a freeze on capital expenditure for the next 2-3 years. The company has toned down aggression in business, it is aggressively trying to improve the health of its balance sheet. In the last two years. GMR, has sold about 23 different assets to raise close to Rs 110bn to pare debt.

SpiceJet plans to lease 7 more Boeing 737 aircraft which would take our total Boeing fleet size to 22 by May. SpiceJet currently has 17 Boeing 737s and 15 Bombardier Q400s in its fleet. Rs5bn, is expected to be infused by its new owner Ajay Singh next month. Singh has already pumped in Rs5bn into the carrier after he took over control last month.

Infosys announced its lowest average wage increase in five years late on Thursday, causing widespread dampening of sentiment among employees and portending anaemic pay-raises for workers in India's $146-billion information technology industry. The average wage increase of 6.5% could set the tone for the rest of the industry, but it may not be such a bad thing after all from the perspective of investors keeping a wary eye on margins.

Fortis Healthcare has sold its Singapore hospital to Concord Medical Services (International) Pte Ltd for SGD 55 million (approx Rs 2.5bn) in line with strategy to focus on the domestic market. The deal is expected to be completed on or around April 6. The 31-bed Fortis Surgical Hospital was opened in July 2012.

ICICI Bank has put up Dunlop India's prime property, Dunlop House, spread over an acre on upscale Annie Besant Road in Mumbai's Worli area, on the block to recover its dues, said two persons familiar with the development. The bank has taken possession of the property following Ruia Group companies defaulting on loans worth Rs 5.2 bn.

Union Bank of India, has deferred its plan to raise Rs 13.86bn fund through qualified institutional placement (QIP) to the next fiscal. The bank had taken shareholders' nod for extension of approval for raising capital. The bank had planned to raise funds during the current fiscal, but given the market condition it has been deferred. Besides, Union Bank of India plans to raise Rs20bn capital through issuance of Additional Tier 1 Bonds.

Wipro, in its biggest management change in the last four years, named Abid Ali Neemuchwala its chief operating officer (COO) on March 16 and effective April 1, 2015. The appointment of Neemuchwala certainly came as a surprise as he had spent 23 years at Tata Consultancy Services (TCS), a rival of Wipro; industry watchers believe his arrival could result in some changes in the top management of the Bangalore-headquartered firm.

HDFC Standard Life is planning to raise Rs. 2,400 Cr via sale of 10% stake to the public. The stake will be sold to the public by parent Housing Development Finance Corp (HDFC).

 

Vedanta Resources Plc has filed a notice of claim related to a tax demand of about $3.29 billion its unit Cairn India Ltd received from the Indian government this month. 

Grasim Industries has ventured into retailing women garments made of viscose staple fibre. The company’s subsidiary, Birla Cellulose launched the garment brand Liva, which will be available at 1,000 outlets across 50 cities. 

Mphasis has launched its Digital Customer Experience Management solution set to provide customer experience management regardless of device or channel.

 

NMDC has commissioned Bailadila iron ore deposit 11B in Dakshin Bastar district of Chhattisgarh. This has a production capacity of 7 mtpa. The corporation put an investment of Rs 600 Cr.

 

The government is likely to exempt ONGC and Oil India from payment of fuel subsidy in Q4 ending March 31. 

Tata Steel claimed it has achieved a new milestone of becoming the first Indian steel plant to produce 10 mtpa of hot metal from a single location at Jamshedpur in Jharkhand.

 

Tata Consultancy Services (TCS) announced that the first batch of students with specialization in “Business Process Services” designed by it in collaboration with academia will graduate with Bcom and BBA degrees in 2015—16.

 

Indian Hotels Company has announced the opening of Taj Dubai, located in the Burj Khalifa downtown area in Dubai. This hotel has 296 rooms, including two lavish suites.

U.S. economic growth slows in Q4; corporate profits declined at a 1.6 percent in Q4 and fell 8.3 percent for 2014, the largest annual drop since 2008.

Japan's annual core consumer inflation ground to a halt in February, the first time it has stopped rising in nearly two years.

UK house price growth slows again in March to 5.1 % from 5.7 % in February; the seventh month in a row that the pace of price growth has slowed.

Spain’s 2014 public deficit 5.7 % of GDP versus an initial target agreed with Brussels of 5.8%.

Bank of Italy head Ignazio Visco says Italy is at risk of deflation.