Pipavav Shipyard IPO price fixed at Rs 58/sh

Issue subscribed 9 times; Most bids came in at upper end of price band – Rs 60

MUMBAI, September 22, 2009: India’s largest dockyard Pipavav Shipyard fixed the issue price at Rs 58, Rs 2 lesser than the upper end of its price band at which most of the bids through 100% book building process came in.

Reflecting tremendous confidence among investors across the board, the IPO was subscribed almost 9 times on Friday when the issue closed. Data available with the stock exchanges shows that the retail investors flocked to the IPO with the segment registering subscription three times. The QIB segment was subscribed eleven times and the non-institutional portion 15 times. The employee portion was almost fully subscribed.

Building India’s largest dry dock and world class multi-sector fabrication facility, Pipavav Shipyard hit the capital market on the last Wednesday with a bang as the issue was fully subscribed within the 1^st hour.

The company targeted to raise over Rs 510 crores with the issue of over 85.45 million equity shares of Rs 10 each with a price band of Rs 55-Rs 60. The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.

JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited, Enam Securities Private Limited and SBI Capital Markets Limited, are the book running lead managers and Kotak Mahindra Capital Company Limited and Motilal Oswal Investment Advisors Private Limited are the co-book running lead managers.

Pipavav Shipyard enjoys a strong order book position of 34 ships – 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.

Pipavav Shipyard will focus on building ships for the Indian navy and coast guard. In addition, Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, and other specialty vessels such as LNG carriers.

Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.

Sunil Hi Tech notches topline growth of 95.3% YoY

MUMBAI: Sunil Hi Tech Engineers Ltd., (BSE: 532711) one of the leading technology and EPC companies in the power & infrastructure sector, continued its profitable growth for the year ended 31^st March 2009.

For the year ended 31 March 2009, Sunil Hi Tech posted revenues of Rs. 598.21 crores (standalone), an increase of 95.3% over Rs. 306.30 crores in the previous fiscal year. Profit after Tax before extraordinary/ exceptional items for the year increased by 11.58% to Rs. 24.29 crores, as against Rs. 21.77 crores in the last fiscal year.

Additionally, the Board of Directors has recommended a dividend of 10% for fiscal year ending 31 March 2009.

Commenting on the results, Mr. Sunil Gutte, the Joint Managing Director of Sunil Hi Tech Engineers Ltd. said, “Our focus, crisp engineering execution and technical expertise coupled with our expanding product portfolio has enabled strong topline growth while maintaining margins during the tough operating climate of the past fiscal year. We expect to see further expansion and growth within our company in the coming quarters due to our numerous strategic initiatives. I am pleased with the overall results, operating performance and execution of our team.”

About Sunil Hi Tech Engineers Ltd.

Sunil Hi Tech Engineers Ltd. has over 20 years of experience in the fabrication, erection, testing and commissioning of thermal power plants including doing individual works under BoP. An ISO 9001:2000 certified company, Sunil Hi Tech undertakes the erection, testing and commissioning of boilers and auxiliaries of up to 500 MW capacity, pressure parts, ESP and piping, and structural work in main plant building, bunker bay and miscellaneous structures of up to 660 MW.

In addition to this, Sunil Hi Tech designs, supplies, transports and provides the commissioning of EHV lines of substations, CW pipelines, large diameter piping, bunker belts, steel flue can; EPC work for transmission and distribution lines, transformers sub-stations and allied works, as well as the EPC contract for fuel oil system and the erection of turbine generators.

Sunil Hi Tech has 125,000 tpa of steel fabrication capacity and specializes in building steel structures for thermal power plants and has also established a 1,00,000 tpa of equipment installation capacity in power plants. The company takes up civil works for power plants of up to 500 MW. It undertakes manufacture, supply, and commissioning of super-heater eco, reheater coils and equipment for thermal power stations.

Praful to cut cut-throat air lines

Civilviation Minister Praful Patel today came out strongly against reports of cartelization amongst airlines.

The Minister said, “The Ministry is against any categorization among airlines. We will keep watch and take strict action in any such case. The national carrier Air India will never be a part of it and will ensure that competitive pricing ensures better prices to the passengers.”

He declared:”Air India shall act as a counter with better pricing and competitive fares.”

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Spectrum blame game: DoT bid to come clean

New piece of evidence emerging now suggests that the Department of Telecommunications (DoT) has not violated any procedure while allotting telecom spectrum to some new players. On the contrary, the licensing was based on a Cabinet decision and TRAI recommendations.

 

Sources familiar with the development point out that only “half truths” were being spread to point out accusing fingers at DoT for the manner in which the licenses were issued to new players like Unitech and Swan last year.

 

The then Finance Secretary D Subba Rao had objected to the manner in which the allotment was done. Dr Subba Rao, in a letter to DoT Secretary D S Mathur, asked if proper procedure has been followed with regard to financial diligence. He wondered as to how the rate of Rs 1600 crore fixed in 2001 has been applied to licenses given in 2007 “without any indexation, let alone current valuation”.

 

Mr Mathur had, in fact, explained in his prompt response that the decision was in accordance of a Cabinet decision of October 31, 2003 which in turn relied on the recommendations of Group of Ministers on telecom matters headed by then Finance Minister.

 

Mr Mathur’s letter to Dr Subba Rao pointed out “……it was decided that the recommendations of TRAI with regard to implementation of the Unified Access Licensing Regime for basic and cellular services may be accepted. DoT may be authorized to finalise the details of implementation with the approval of Minister of Communications and IT in this regard, including the calculation of the entry fee depending on the date of payment based on the principle given by TRAI in its recommendations.”

 

The letter went on to explain: “In terms of this Cabinet decision, the amendment to NTP 99 was issued on 11th November 2003 declaring that for telecommunication services the licence for Unified Access (Basic and Cellular) services permitting licencees to provide Basic and/or Cellular service using any technology may be issued.”

 

The entry fee was finalized for the UAS regime in 2003 based on the decision of the Cabinet. It was decided to keep the entry fee for the UAS licence the same as the entry fee for the fourth cellular operator, which as based on a bidding process in 2001, Mr Mathur’s letter said.

 

The dual technology licenses wee issued based on TRAI recommendations of August 2007. The fact of the matter is that TRAI, in its recommendations dated 28th August 2007, had not recommended any changes in entry fee/annual license fee and hence no changes were considered in the existing policy, Mr Mathur’s letter pointed out.

 

India 2nd largest cement producer

India has emerged as the world’s second largest Cement producing Country.

There are about 130 large cement plants in the country  with an installed capacity of 160.24 million tonne. During the year 2005-06 actual production was achieved 141.81million tonne. The number of mini cement plants accounts to 365 with an installed capacity of 11.10 million tonne.

The recorded production by mini cement plants during the same period is  6.0 million tonne. There are about 1,35,000 manpower employed all over India with a turnover more than 9,700 million US $ (2005). The cement sector has been rapidly growing at a rate of 8% and is expected to grow further.

India Inc. Profit, Growth Continues to Slip

Morgan Stanley has pointed out in its India Strategy report that Corporate India’s growth and profits continue to be south bound reflecting the Indian Economy condition amid the global financial crisis.

 

Here are our key takeaways from the recently concluded September 2008 quarterly earnings season:

 

• Corporate India (represented by a MS sample of 105 companies) reported a 29% fall in net earnings for the quarter ended September 2008 – an alltime low. This compares with a trailing five-year quarterly average growth of 28%.

• Excluding the Energy sector, growth was 11% YoY – a five-year low compared with a trailing five-year quarterly average growth rate of 30%.

• Our coverage universe surprised negatively versus MS analysts’ expectations. MS analysts’ were expecting net profit growth of 3% for our coverage universe (12% ex-energy).

• Given that F2009 earnings were revised down for nine out of 10 sectors and for market aggregates at the end of the season, it could be said that the quarterly earnings disappointed consensus. Downward revisions outstripped upward revisions 2:1 at the end of the season versus where earnings were at the start of the season.

• The Sensex constituents grew earnings 5.5% YoY on an aggregate basis, behind MS analysts’ forecasts and its worst performance since June 2002.

• Broad market earnings (sample of 1,038 companies) continued to show weak performance with earnings falling 7% YoY.

• Notably, four out of the 10 sectors reported 20%-plus growth in profits.

• At the sector level, the best performances came from Utilities and Technology. The laggards versus the aggregate numbers were Consumer Discretionary, Energy, and Healthcare. Save for Technology and Financials, all sectors reported a slippage in operating margins YoY.

• Versus MS expectations, the biggest positive surprises came in Consumer Discretionary and Financials while the negative surprises came in Energy and Healthcare.

• Excluding the volatile Energy sector, revenue for our sample rose 26% YoY – a seven-quarter high and a strong performance considering the macro environment, explained in part by high inflation.

• EBITDA margins fell 720bp YoY and 122bp YoY excluding the Energy sector. This took EBITDA growth to a two-year low of 26.6% for the sample Ex-energy and to a 5½ year low of 14.6% for the aggregate sample.

• The key problem for net profit growth was the declining share of net financial income in pretax earnings and the rising depreciation expense. Other income fell YoY whereas interest costs rose at their fastest pace in history.

Yes we can, say Indian Railways

On the right track to meet its targets 

 

NEW DELHI: The Indian Railways is confident of achieving its target of carrying 1100 million tonnes of freight and 8.4 billion of originating passengers by the year 2011-12 – the end of XIth Five Year Plan.

 

Delivering the key-note address at the ‘First UIC Investment Forum’,  K.C.Jena, Chairman, Indian Railway Board, who is also Chairman, UIC, said that despite the global recession at present, the Indian Railways was on the right track to meet its targets.

 

He said that Indian Railways require an investment of over Rs. 2,50,000 crore during the ongoing XIth Five Year Plan to augment and upgrade the infrastructure. Most of this, about Rs. 90,000 crore, will come from internal generation and as per the present indications, Central Government may supplement it through a budgetary support of Rs. 60,000 crore.

 

Jena said that growth would falter unless Railways carry out a well thought out programme for capacity augmentation, removal of bottle-necks, modernization of systems and new innovative ways of conducting business. Therefore, a significant expanded role has devolved upon mobilizing of extra-budgetary resources including through public-private-partnerships (PPP) in the XIth Five Year Plan.

 

The ‘First UIC Investment Forum’ which brought together 27 world dignitaries including top officials from major global financial investment companies and consultants from 14 countries such as Morgan Stanley Bank, Booz & Co., JP Morgan, DB International, Babcock & Brown, Ernst & Young, Vossloh Locomotives, GmbH and East Japan Railway, to focus on investments required in Rail Sector in the region with a special emphasis on Indian Railways, was inaugurated by the Minister of State for Railways Dr. R.Velu at New Delhi today. The Forum is being jointly organized the by the Ministry of Railways, Government of India and International Union of Railways (UIC).

 

 

 

 

Docomo acquires 26% stake in Tata tele for $2.7 BN

NTT Docomo (Docomo), Tata Teleservices (TTSL) and Tata Sons — the prime promoter for Tata companies including TTSL — today announced their agreement on a strategic alliance in India, under which Docomo will acquire 26-per cent of TTSL’s stock for approximately Rs13,070 crore ($2.7 billion).
 
In addition, Docomo, in accordance with regulations of the Securities and Exchange Board of India, expects to make an open offer to acquire up to 20 per cent of outstanding equity shares of Tata Teleservices Maharashtra (TTML), a Tata telecommunication company, through a joint tender offer along with Tata Sons.
 
As a result of the capital alliance, the partners expect to expand mobile communication operations in the fast-growing Indian mobile market, aiming to increase operating revenue and achieve steady business growth.
 
TTSL and TTML, both based in Mumbai, are telecommunications units of the Tata group, India’s largest conglomerate in terms of operating revenues. Both companies have high-quality wireless networks spanning the entire country and also have a large number of retail stores and customer-service outlets. TTSL and TTML have rapidly increased their combined share of the fast-growing Indian mobile market. They are rapidly expanding their subscriber bases, which currently stand at over 30 million combined.
 
Tokyo-based Docomo, the world’s leading mobile operator, has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. The company is a strong market leader used by over 50 per cent of Japan’s mobile phone users. Docomo will work closely with TTSL’s management and provide know-how to help the company develop its mobile business. TTSL expects to leverage Docomo’s expertise in the development and delivery of value-added services, where Docomo is a firmly established market leader.

Bala of ICSA in ‘finals’ for E&Y Entrepreneur award ‘08

NEW DELHI (IndiaPRwire.com): Nineteen of India’s successful entrepreneurs, who have displayed an inspiring vision, unabated zeal and passion to make a difference, have been selected as ‘Finalists’ for the coveted Ernst & Young Entrepreneur of the Year Awards. The year 2008 marks the 10th year of this very unique program in India, which has celebrated the emergence of many leading entrepreneurs over the last decade. This year, the awards will be announced on November 26th in Mumbai in the presence of leading global and business personalities, including Mr. Somnath Chatterjee, Hon’ble speaker of Lok Sabha, as the Chief Guest.

A six-member jury comprising eminent personalities, chaired by Mr. KV Kamath, Managing Director & CEO, ICICI Bank, selected the finalists from over 291 nominations received this year, the highest since the Awards were launched in 1999, which further proves that with each passing year the award continues to scale new heights.

The finalists for 2008 are listed below (alphabetically):

Anil Agarwal, Vedanta Resources Plc, A.M. Naik, Larsen & Toubro, Arvind Rao, Onmobile Global, Gautam Thapar, Avantha Group, G. Bala Reddy, ICSA India, I. Syam Prasad Reddy, Indu Projects, Jaiprakash Gaur, Jaypee Group, Mavila Vishwanathan Nair, Union Bank Of India, Mehul Choksi, Gitanjali Gems, M. M. Murugappan, Carborundum Universal, P. Namperumalsamy, Aravind Eye Care System, P R S Oberoi, EIH, Ram Chandra Agarwal, Vishal Retail, Rohinton Screwvala, UTV Software Communications, R. S Butola, ONGC Videsh, Sanjay Nayak, Tejas Networks, Sanjeev Bikhchandani, Hitesh Oberoi, Info Edge (India), Shantanu Prakash, Educomp Solutions, Venugopal Nandlal Dhoot, Videocon Industries.

“I am extremely proud to be associated with Ernst & Young’s initiative to honour entrepreneurial excellence in India. There were several outstanding nominations this year and the finalists were selected looking at various parameters such as combining ambition with pragmatism and goal orientation with adaptability. While the finalists come from diverse sectors, they were united in their desire to achieve beyond the ordinary. Each one of them has made discernable contributions to the economy by creating value and opportunity at large.” says Mr. KV Kamath, Managing Director & CEO, ICICI Bank, who chaired the jury for the awards.

Other jury members include Mr. Ravi Venkatesan, Chairman, Microsoft India, Ms. Shobhana Bhartia, Vice Chairperson & Editorial Director, HT Media, Mr. Manish Kejriwal Senior Managing Director Investment – India & Russia, Temasek Holdings Advisors India, Mr. R Seshasayee, Managing Director, Ashok Leyland and Tarun Das, Chief Mentor, CII.

Says Mr. Rajiv Memani, Country Managing Partner, Ernst & Young, “The Entrepreneur Of The Year Program has provided us an opportunity to get a very close view as also learn from the entrepreneurial journeys of some of India’s finest business leaders. The distinctive feature of Indian entrepreneurs today is the confidence and speed with which they are moving ahead in the local and international markets. Notably, for many of them, their achievements go beyond running a profitable business to also impacting the society at large and thereby creating more inclusive growth for India.”

The winner of the Entrepreneur Of The Year Award will represent India at the Ernst & Young World Entrepreneur Of The Year Awards (WEOY) in Monte Carlo, Monaco in May, 2009. Recipients of the Entrepreneur Of The Year award become lifetime members of the World Entrepreneur Of The Year Hall of Fame.

Ernst & Young first designed and produced the Entrepreneur Of The Year Award in the United States in 1986, to honour the perseverance and ingenuity of those brilliant entrepreneurs, who have created and sustained successful business ventures. Ernst & Young India launched the Programme in 1999, making it the first country in the firm’s Asia-Pacific region to introduce this initiative.

Past recipients of the EOY awards include B Ramalinga Raju (Satyam), Tulsi Tanti (Suzlon), Kumar Mangalam Birla (Aditya Birla Group), Sunil Bharti Mittal (Bharti Enterprises), Ratan Naval Tata (Tata Group), N R Narayana Murthy (Infosys), Brijmohan Lall Munjal (Hero Group), Mukesh D Ambani (Reliance), Tulsi Tanti (Suzlon Energy Ltd.), Wayne Huizenga, (Huizenga Holdings), Jeff Bezos (Amazon.com), Michael Dell (Dell Computers), Howard Schultz (Starbucks Coffee), Jerry Yang (Yahoo), Scot Kriens (Juniper Networks) and Tony Tan Caktiong (Jollibee Foods)

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.