The company has appointed an investment banker to find a buyer for its equity in its joint venture company, Raymond UCO Denim, whose loss doubled to Rs 120 crore (Rs 1.2 billion) in the last financial year. Europe's UCO Denim holds 50 per cent stake in the denim company, which was formed in August 2006. The turnover of the denim business is estimated at Rs 600-800 crore (Rs 6 to Rs 8 billion).
The stressed asset business will be a mix of an ARC and a distressed asset fund. Ambit has already started insurance brokerage and equity research and sales businesses this year. It closed a $100-million private equity fund called Ambit Pragma Ventures recently. It is also keen on starting proprietary trading.
IT major Wipro Technologies and Gurgaon-based knowledge process outsourcing firm Copal Partners have expressed interest in bidding for the Indian back office business of Lehman Brothers Holdings, the US-based investment banking firm that filed for bankruptcy protection on Monday.
This comes after both parties failed to arrive at an agreement on an appropriate valuation of the stake, a company executive said. Sterlite bought 51 per cent stake in Balco in March 2001 for Rs 552 crore (Rs 5.52 billion) when the National Democratic Alliance (NDA) government decided to divest the government stake in the public sector company.
Kinetic Motor Company, the Pune-based scooter-maker, which sold its business assets to Mahindra and Mahindra for Rs 110 crore (Rs 1.1 billion) on Wednesday, is now considering to get into the auto components business.
A Mahindra in every household wouldn't be realised without two-wheelers.
Swan Telecom, which has received licences to operate mobile phone services in 13 out of the 22 telecom circles in India, is in talks with foreign companies for diluting 26 per cent of its equity for around $470 million.
Mahindra & Mahindra (M&M), India's largest sports utility vehicle maker, is buying a major portion of two-wheeler maker Kinetic Motor Company's assets in a deal valued at Rs 110-120 crore (Rs 1.1 to 1.2 billion).
Reliance-Anil Dhirubhai Ambani Group is looking for acquisitions to start its cement business much before it completes its 4,000-Mw mega power project at Sasan in eastern Madhya Pradesh, which is to provide the fly ash that is used to make cement.
US giant expected to bid for 65% non-promoter stake.
With a gradual erosion in valuation of mid- and small-sized IT and IT enabled services firms on the stock markets due to rupee fluctuations and a US slowdown, experts estimate as much as 50 per cent rise in merger and acquisition deals in the domestic IT industry over the next 12 months.
Idea Cellular's bid to acquire a controlling stake in the B K Modi-promoted Spice Communications has hit a pricing roadblock. Investment banking sources said that B K Modi had asked for Rs 70 a share for his 40.8 per cent stake in Spice, valuing the company at Rs 4,829.47 crore, but Idea is reluctant to pay that much."Any price valuing Spice Communications beyond Rs 4,200 crore would be expensive for Idea Cellular," said an analyst with a domestic brokerage.
While Wal-Mart is facing delay in the rollout of its retail plan, Carrefour SA, the world's second-largest retail chain, is still struggling to finalise its Indian partner even after six years of persistent search.
Eighteen months hence, Reliance Retail is a 600-store chain, while Wal-Mart, which had planned to start operations by the year-end, has deferred the launch to 2009.
The tables have turned. Organised retail, which used to cite real estate as its first constraint, is being wooed by developers as there is a sudden surplus created by completion of pending projects and new construction. According to an industry analyst, the rental for a retailer used to constitute 4-5 per cent of its total revenue in the years 2001 and 2002, rising to 7-7.5 per cent in the later years. Industry analysts believe a retailer's profit would get eroded
Steep pre-paid tariff cuts at the start of the year in January could mean lower revenue growth for telecom operators in the March 2008 quarter. Moreover, minutes of usage (MOU) are unlikely to be very much higher since industry watchers feel users will take some amount of time to react to the tariff cuts. The operating profit growth these telcos could be in the region of 6-7 per cent. However, net profits may remain flat sequentially due to foreign exchange fluctuations.
Mukesh Ambani-promoted Reliance Industries Ltd (RIL) is evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum, the largest at a single location in the world. The company has appointed a global oil and refinery consultancy firm to evaluate the feasibility of the project, which will help capitalise the increased requirement for global crude distillation capacity.
The Tata Group, one of India's largest business houses, has made summer internship offers to 19 students of five leading US business schools this year
The French retailer, which has been talking to various Indian business houses for a possible partnership to roll out its wholesale operations in the cash- and-carry format, has also recruited around 50 people.
The principal delay is because the defence forces, which are expected to vacate some spectrum for mobile service providers, are yet to identify locations for some sites for an alternative optic fibre network that is being developed for them.
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