Laden with a debt of Rs.33,000 crores... Anil Ambani's Reliance Communications, India's second largest Cellular Operator is exploring fresh equity sale option.
RCom attempted to reduce debt by merging its tower-arm with GTL and by disposing equity (26%) to Etisalat.
The tower deal with GTL did not go through as intended and had to be called off forcing RCom to rethink its debt reduction strategy but the fact that they had to pay a further Rs.8585 crore recently for 3G spectrum does not suggest things are going to be picking up anytime soon.
On the positive side... strong foreign inflows in the last few months have made the market conditions conducive for raising funds.
On 28-Sep-2010 RCom is going to seek approval from share holders enabling it to sell fresh equity.
September 27, 2010
September 23, 2010
Nano to be second best selling car by FY11
According to research firm JD Power Nano the small car from the Tata Motors stable is poised to become the second best selling car in India after Maruti Suzuki's Alto.
Nano is slated to grab the number two spot in 2011 when Tata is expected to ramp up its production capacity.
The highest selling car in India currently is Maruti Alto selling 25,000 units monthly on an average.
The market for mini and sub-compact cars would be 9,97,000 in 2010 which is expected to grow to 30,14,000 units by 2017.
The closing price of Tata Motors on NSE was Rs.1073 today.
Equiwise recommended investing in TATA MOTORS on 04-Jun-2009 when the stock was at Rs.369. Time to invest in stocks like Reliance Tata Motors for a 5 - 10 year horizon
See our other posts on TATA MOTORS:
Tata Motors enters Fortune 500 list
Incredible Stocks of India: TATA MOTORS
Nano is slated to grab the number two spot in 2011 when Tata is expected to ramp up its production capacity.
The highest selling car in India currently is Maruti Alto selling 25,000 units monthly on an average.
The market for mini and sub-compact cars would be 9,97,000 in 2010 which is expected to grow to 30,14,000 units by 2017.
The closing price of Tata Motors on NSE was Rs.1073 today.
Equiwise recommended investing in TATA MOTORS on 04-Jun-2009 when the stock was at Rs.369. Time to invest in stocks like Reliance Tata Motors for a 5 - 10 year horizon
See our other posts on TATA MOTORS:
Tata Motors enters Fortune 500 list
Incredible Stocks of India: TATA MOTORS
September 19, 2010
September 16, 2010
RBI hikes repo by 25 bps; reverse repo by 50 bps
The Reserve Bank of India (RBI), announced today, that repo is being increased by 25 basis points (bps) and the reverse repo by 50 basis points (bps). The repo rate is now 6% and reverse repo is 5%.
What is a Repo Rate?
The rate at which banks borrow funds from RBI is called Repo Rate. Banks usually borrow funds When there is a paucity of funds banks turn to RBI to cover the short-fall, by borrowing from RBI.
What is a Reverse Repo Rate?
The rate at which RBI borrows funds from banks is called Reverse Repo Rate.
Any increase in Reverse Repo Rate is usually welcomed by banks, because the money they lend to RBI is safe and earns a decent rate of interest as well.
What is a Repo Rate?
The rate at which banks borrow funds from RBI is called Repo Rate. Banks usually borrow funds When there is a paucity of funds banks turn to RBI to cover the short-fall, by borrowing from RBI.
What is a Reverse Repo Rate?
The rate at which RBI borrows funds from banks is called Reverse Repo Rate.
Any increase in Reverse Repo Rate is usually welcomed by banks, because the money they lend to RBI is safe and earns a decent rate of interest as well.
September 8, 2010
Reliance - GTL tower deal called off
GTL Infrastructure said its deal with Reliance Communications to merge their telecoms tower businesses has been called off after both sides failed to agree on a deal by the August 31 deadline.
Despite efforts, both parties have neither extended the term sheet nor entered into any definitive transaction agreements as envisaged therein.
A statement from Reliance Communications said, “Following the expiry of the non-binding term sheet with GTL Infrastructure, Reliance Communications is now engaged in discussions with certain other strategic and financial investors, to pursue a similar transaction aimed at significant reduction in the company's debt and unlocking of value for RCom shareholders from the passive infrastructure and related assets in its 95 per cent-owned subsidiary, Reliance Infratel”.
Reliance Infratel is also proposing an initial public offering (IPO) of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
Despite efforts, both parties have neither extended the term sheet nor entered into any definitive transaction agreements as envisaged therein.
A statement from Reliance Communications said, “Following the expiry of the non-binding term sheet with GTL Infrastructure, Reliance Communications is now engaged in discussions with certain other strategic and financial investors, to pursue a similar transaction aimed at significant reduction in the company's debt and unlocking of value for RCom shareholders from the passive infrastructure and related assets in its 95 per cent-owned subsidiary, Reliance Infratel”.
Reliance Infratel is also proposing an initial public offering (IPO) of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
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