They will take stock of the current situation and discuss the way forward. Handing over the share allotment documents to Tech Mahindra is also on the agenda of Monday's board meet, according to a Satyam spokesperson. Tech Mahindra Vice-Chairman, MD & CEO Vineet Nayyar, C P Gurnani, president (international operations), and President (strategic initiatives) Sanjay Kalra have confirmed their participation in the meet.
"The customers had entered into a three-year contract with us. If we have to sell the apartments at a discounted rate, the customers who are backing out should make up for it," an official said. "If DFL tries to re-sell its apartments in the open market, it will have to reduce prices by a further 10-15 per cent. The new buyers know the expected supply is more than demand," said Rupesh Sankhe, equity analyst, Centrum Broking.
DLF, the country's largest property developer, may retrade its apartments at New Town Heights, Gurgaon, and Garden City, Chennai, at a discount. This is to refund buyers who want to exit the projects, according to a senior company official.
Developers remain cautious on property deals as customers expect further price cuts.
Developers remain cautious on property deals as customers expect further price cuts.
On the back of the Satyam episode, the ICAI is planning to seek more power for chartered accountants so that they are not mere qualifiers. In case they see any divergence in the numbers provided by the company, there must be a way to compel a restatement of accounts, according to the ICAI. It has asked its members to 'to be much more vigilant and rely on external information than be dependent on what the management provides.'
IBM's exit leaves the field open for engineering giant Larsen & Toubro, which owns 12 per cent in Satyam, Tech Mahindra, Cognizant Technology and private equity firm Wilbur L Ross. Satyam currently faces 13 class action suits by holders of the company's ADRs in the US. An investment banker close to the deal said IBM was a big name and could, therefore, be vulnerable to more lawsuits.
Some banks made it clear that banks have to make commercial decisions. "There is a limit to which we can reduce the deposit rates because of competing investment products such as small savings instruments," said a bank chief. With banks unable to lower deposits rates, lending rates were unlikely to drop significantly. A banker is said to have talked about the fact that companies that are unable to sustain themselves during the present downturn would face many risks.
The buzz refuses to die down even though other PE players, investment bankers and analysts say such an alliance is highly unlikely. Wilbur Ross, meanwhile, is understood to have completed the due diligence of the scam-tainted IT company. When contacted, a company official declined comment.
The aggression shown by corporate houses till not a long ago has given way for consolidation in the backdrop of current economic downturn and the companies in the next fiscal, beginning tomorrow, would need to focus on growing their core businesses and conserving the resources, global consultancy firm PwC executive director Sanjeev Krishnan told PTI.
Indian Hotels, which owns the luxury Taj brand of hotels, may see its profit decline 47 per cent to Rs 200 crore (Rs 2 billion) from Rs 377 crore (Rs 3.77 billion) last year for the fiscal ending March. EIH, a part of the Oberoi Group, is likely to see a profit figure of Rs 154 crore (Rs 1.54 billion) from Rs 223.6 crore (Rs 2.23 billion) , a fall of 31 per cent, a survey of analysts has said.
The government has decided to provide Rs 100 crore (Rs 1 billion) liquidity support to Emmar-MGF, the developer of the Commonwealth Games village project, as against the developer's demand for Rs 300 crore (Rs 3 billion).
Already partnering seven international brands such as Giorgio Armani and Salvatore Ferragamo, it also plans to tie up with 12-15 global brands in the next five years. The company plans to fund its expansion through a mix of equity and debt and go in for tie-ups through joint ventures and franchise routes. The focus of expansion would be in metros such as Delhi, Mumbai, Hyderabad and Chennai in the initial phase, the official said.
Unitech is pinning its hopes on the sub-Rs 5 lakh category of flats to counter the slowdown in the property sector. So are a host of others. Apart from Unitech, others such as Omaxe, Raheja, Tata Housing and Ansal API are planning new projects in the suburbs of satellite towns or smaller cities to target the bottom segment, to generate more cash.
Indian retailers put cash & carry on backburner
The company has already booked Rs 5,450 crore (Rs 54.5 billion) revenue from sale of 5 million sq ft it has sold to DAL. DLF on Tuesday clarified to the exchanges that it had been looking at various options from time to time but no definite option had been presented to the board so far for its consideration.
"The scene will be a bit like the Maruti 800 days. Those who are lucky enough to be allotted cars this year can resell it immediately at a premium of Rs 30,000 due to the anticipated shortage," an executive at a Motors dealer said. Supply, Tata Motors dealers say, would be between 40,000 and 50,000 cars, with 100,000 being the most optimistic estimate. This would mean customers may have to wait for up to two years to get delivery if all the bookings are accepted.
"The inspiration to develop smaller and cheaper apartments comes from the Nano car, which is eliciting a tremendous response. I am sure our project will see a similar response, given the fact that we will come up with such low-cost apartments in metro cities," said R Nagaraju, general manager, corporate planning, Unitech. It plans to launch mid-segment residential projects in metro and suburban cities over the next few months.
This has come at a time when commodity prices have dropped and several companies are seeking to lower prices to boost sales. "While the recent drop in raw material prices have been an enabler, our margins are still under pressure due to several factors like operational expenses as well as production and packaging costs, which have peaked year-on-year," said a company official.
Developer to bid for work from those who win the final contract.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances