The first market of India - Retail Financial Services and Banking

 

The first market of India- Retail Financial Services and Banking

 

Random Tweets from a Saturday

Saving Media http://ow.ly/14wL1 , Also IPL and Indian Financial Services Advertising..stretching the rupee into hinterland access

Lady Kidwai taking TV Opp with Bloomberg as opportunity to push women's agenda.. duh! women in I banking. HSBC rdy for ABN ..will RBI oblige

Even in India HSBC does need a leg up in tech when compared to Citi but its brand equity is much better than any other. http://ow.ly/14wIq

HSBC Invest India looking like a distress sale candidate http://ow.ly/14wGF

HSBC's new branches in Nagpur, Nasik take it to 50 branches plus 30 from ABN? Micro Lending, Retail & Bancassurance lead http://ow.ly/14wFM

HSBC picked itself up for another day in India. ABN adds $10 billion in India , biggest player in India after ICICI, SBI http://ow.ly/14wEv

I have to be away but the game lives on http://ow.ly/14wqJ Down Colts! It's Drew Brees who's the best #saints #SB44 #superads

Losing PIIGS would be a scary prospect, but Euro zone can't cough up money for them in Greece, Spain, Ireland or Italy and Portugal #Europe

Choose and click through to your favorites from our best as ranked here http://ow.ly/14wkl#postrank #marketing

Typing customers in China and Dubai to super previews for supersunday! We've come up a lot last week http://ow.ly/14wjp #postrank #marketing

Eye Openers dot the Global Markets across the DOW the Euro Zone and even China and India.. Feverish February? http://ow.ly/14wdW

Blankfein settles for $9m in 2010 ( stock saleable in 2015 after the next bust ;lol ) JP Morgan pays $17m all stock bonus http://ow.ly/14wc7

LIC, ICICI Bank only investors in the French Auction (at 209/210 rumored yesterday) NTPC scrapes through http://ow.ly/14waE

IPL got into the live streaming game pretty early. Ustream gets funded $75mhttp://ow.ly/13vZ4

Online video viewership http://ff.im/-fsTL5

With each viewer watching 187 videos per month in the U.S...Live streaming could be the catchall | Advantage Social http://bit.ly/99sO8J

HSBC'S NAINA LAL KIDWAI IN INTERVIEW ON BLOOMBERG UTVi , Tweetstorm aired at ADVANTAGE ZYAADA properties after bank results week was over

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India's growth meme fires 2010

ENERGY

Kirit Parikh report released today, recommends freer market pricing and a longer term solution for the Indian Oil Energy majors. The implementation and adoption by Pranab’s government of course is dependent on political and economic convenience.

The Oil Industry cannot support the burden of subsidies with the internal prices of Oil fluctuating in a wide band. Mr Parikh pegs losses at Rs 40000 Crs annually for the Oil companies. A Rs 6 increase in the price of Kerosene ( lower end derivative) is recommended. As losses on petrol are Rs 3 per liter, a price rise of Rs 4.70 per liter on Petrol and Rs. 2.30 per liter on Dieel are likely if free pricing is implemented ( State owned Oil companies)

ONGC and OVL to share the burden of subsidy with the government to the extent of early blocks granted by nomination and funded by the government

GAIL free from subsidy sharing formula because it has no production facilities

Rail Freight to catch on as the cost of diesel per Kilo Tonne per Kilometer is 20% of Road transport costs

KP recommends freeing of Petrol and Diesel Pricing at Retail

Also, Kerosene subsidy should be granted to families based on Smart Card and UID

AVIATION

Aviation major Jet negotiated a 11% stake in GMR MAS Hyd Airport Engg Company for fleet maintenance of Jet as per an MOU signed earlier in January

Jet Airways also improved Domestic yields by 24% in the final Quarter of 2009 and the industry is hoping for business and premium class demand revival in the coming two quarters. supply side controls and lower fuel prices also contributed to the increased yield

POWER / DIVESTMENT

NTPC issue pricing should flummox investors even as Power Grid and REC get in line. SAIL has got approval for a 10% Offer for sale and a 10% issue of new shares in the coming year and next. Steel Authority performance is no longer an industry benchmark, while NTPC’s lead in the Power sector is also likely in question as Power Distribution and Transmission become central to Policy.

MUTUAL FUND INDUSTRY

The Mutual Fund Industry's innovative Liquid Plus schemes that now constitute 40% of the Rs 735000 Crore ( INR 7.35 trillion) Industry may soon be switched out as Government takes cognizance of the differential tax treatment ( Individuals 14%, Corp 22%) vs. Liquid Schemes 33%. Also RBI had earlier challenged banks on parking excess cash in these money market schemes with Mutual funds as more than Rs 1.35 trillion is parked in such schemes.

RETAIL LIFESTYLE

ITC Fortune has reported 2000 new rooms planned under the budget franchise in the next 2-3 years. 9 new hotels are coming online in 2010, 25 by 2014 which will be close to 6000 rooms

Maruti Suzuki led a great Indian Auto revival bringing sales of 175000 Cars in January domestically. Adding at least 50 K in Exports from Hyundai and Maruti alone, the figure, if repeated through the year could finally break the hold of 2- 3 wheelers in economic reporting, lol

INOX bought 200 additional screens into its fold with a 43% investment in Fame Cinemas, each screen costing them between 1.3 to 1.7 crores or $300K much below the market cost of $500K of setting up a new screen. It is increasingly looking unlikely that PVR will complete its purchase of DT Cinemas.

We have tweeted and carried in-depth analysis of each of these deals, subjects and factors in India's new journey. Call us on 'hyperchat' if you need a breaking tweet.

 

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NTPC Divestment - II | Advantage Infrastructure

Roadshow update

NTPC gets on the road for bidding (price INR 200- 220)

( WSJ>com, NTPC Secures Debt )

[ INR 100 billion = INR 10000 Crores ] [India's Current Total Power Capacity = 75 GW (Peak)]

NTPC Ltd. has arranged 450 billion rupees ($9.74 billion) in loans to help raise its power generation capacity to 75 gigawatts by March 2017 from the current 30.6 gigawatts.

The funds will be used to build new plants and to modernize existing ones, Chairman R.S. Sharma told Dow Jones Newswires late Friday.

He didn’t specify exactly how much the expansion will cost in total, but he said that 70% of the money will come from debt and the rest from the company’s cash reserves.

The company plans to invest 250 billion rupees to add 4.5 GW of capacity in the next financial year that starts April 1, up 41% from this fiscal year’s 177 billion rupees.

But NTPC will miss its target of adding 3.3 GW of generation capacity this fiscal year, and may end up adding only 2 GW, Mr. Sharma said.

“We have planned a little bit aggressively. There were slippages. But next year it will be 100%, no slippages are going to take place,” he said, speaking from New York.

NTPC’s capacity expansion plan is in line with the federal government’s aim to improve the nation’s infrastructure.

[tag India, India Infrastructure, IPO]

[category india]

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New F1 competition | New Rules

Force India's Adrian Sutil starts ahead of many GP2 drivers in this season. Massa has to do it without pitstop strategies for Ferrari again. Will Alonso be an 'able lieutinant'? Fisichella cools his heelsi in reserve for Ferrari, Heidfeld for Mercedes. Hamilton focussing on getting on with Button in tweets. The game begins in Bahrain without the luxury of changing tyres as well. Lotus comes back after a long break on Cosworth Engines last seen in 2006. 

 

 

Posted via web from The Marketing Post

New F1 competition | New Rules

Force India's Adrian Sutil starts ahead of many GP2 drivers in this season. Massa has to do it without pitstop strategies for Ferrari again. Will Alonso be an 'able lieutinant'? Fisichella cools his heelsi in reserve for Ferrari, Heidfeld for Mercedes. Hamilton focussing on getting on with Button in tweets. The game begins in Bahrain without the luxury of changing tyres as well. Lotus comes back after a long break on Cosworth Engines last seen in 2006. 

 

 

Posted via web from The Marketing Post

Going Private, Going Public

 Max grows healthcare, insurance 

 Goldman Sachs owns information rights only for 9.4% stake

Max India, the Delhi-based company with interests in healthcare, insurance and telecom, have secured another round of major funding from a private equity arm of Goldman Sachs. The company's board has approved a proposal to raise $115 million (about Rs 540 crore) by the global investment bank, according to a report in Business Standard, which quoted a stock exchange filing.

The company will dilute 9.4% stake post money, valuing Max India at $1.2 billion (about Rs 5,743 crore). According to the report, Max India promoter Analjit Singh would also pump in money during the course of one year to retain his current stake 34%. "I don’t want to dilute my stake. I will be trying to increase my shareholding in one year,” Singh has been quoted as saying by Business Standard.

The funds will be used to expand the company's interests in insurance, healthcare and specialty plastics businesses, the report added. The investment will be from the $20.3 billion GS Capital Partners VI fund formed in 2007 to invest in a broad range of industries globally.

Goldman Sachs will get a seat on the board, though it will not have any affirmative rights but only with information rights, the report added quoting an official. 

Max India will issue fully and compulsorily convertible debentures (FCDs) of the face value of Rs 867 each amounting to a total of Rs 540 crore to Goldman Sachs, which will carry a coupon rate of 12% a year. This will have to be converted within 15 months from the date of allotment into four equity shares of Rs 2 each at a premium of Rs 214.75 per share.

Singh will be issued 2 million warrants of the face value of Rs 867 each for Rs 173.4 crore, representing about 3% of the post-issue share capital of the company on conversion. Each warrant will be converted into 4 equity shares of Rs 2 each at a premium of Rs 214.75 per share within 18 months.

About half of this investment – Rs 87 crore – will be paid upfront by Singh, though the stipulated minimum upfront payment required is just 25 per cent, BS report added.

The company already has a treasury corpus of Rs 330 crore, and with Goldman Sachs and Singh's new investment, the corpus will reach about Rs 1,000 crore. These funds are expected to meet its funding requirement for the next two years.

The report added that about Rs 520 crore would be invested in life insurance firm Max New York life, about Rs 200 crore in new health insurance business, and Rs 150 crore for the healthcare business.

via Max India Dilutes 9.4% Stake To Raise $115M From Goldman Sachs | VCCircle.

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GMR Infrastructure: This airport is now busy

It's not the fog

GMR has emerged as a leader in aviation infrastructure space wiht commissioned projects in Hyderabad, Delhi and Turkey. Despite the recent L&T stake sale to GVK in Bangalore ( that probably GMR should also have bid) and with the opening of more than 20 mid tier airport projects plus another 5-6 metro airport modernisation projects, GMR cannot be choosy but also cannot afford to ive away the farm. Each Aviation project Capital requirement will run into 2-3K Crores that’s a $500m each time. Even if it foots only 10-15% of its equity, it crrently cannot affor to take any of its earler projects public and the infrastructure spending requirement is NOW.

After the Temasek deal for 10% of GMR Energy was announced yesterday, GMR has pulled a virtual second and third consecutive cheer, with the SBI Macquarie infra fund picking up $200m stake in the Aviation Infrastructure bids. 3i which earlier in the week announced its deal for toll highways has also flown in to GMR Airports with a $200m tab

http://economictimes.indiatimes.com/markets/real-estate/news-/GMR-in-talks-with-3i-Macquarie-SBI-Infra-to-raise-450-mn/articleshow/5277152.cms" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font-weight: normal; text-decoration: none; color: rgb(38, 80, 163); border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: initial;">From ET: GMR want(ed) to sell a minority stake in the airport subsidiary to raise cash for investments in infrastructure and power. The airports business, which includes the Hyderabad and Delhi airports, account for 45% of the group’s revenues.

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