Coal India, RIL and JSW Steel may grab investor’s attention today

A global consultant will authenticate Reliance Industries’ (RIL) $1.52-billion proposal to produce about 10 million standard cubic metres per day of gas from four satellite discoveries in its D6 block and also verify operator’s argument that gas prices should be raised above the existing level of $4.20 per unit to make the project viable. The decision would further delay the project that is awaiting government approval since 2009. The oil ministry has asked its technical arm, the Directorate General of Hydrocarbon (DGH), to appoint a global consultant to validate RIL’s optimum field development plan. The government is treading cautiously as RIL has demanded raising sale price of gas to make the project viable. But Reliance has not suggested at what price the project would be commercially viable. DGH has been directed to find the price at which the project would be viable.

Stock Watch: Idea, GE, HDFC and HCL

Idea Cellular opposed the Rs 50 crore penalty imposed on it by the government for allegedly suppressing actual customer database and contended that it was not given a chance to place facts before the Department of Telecommunications (DoT). The Aditya Birla group firm submitted before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that the DoT passed the order without even giving a mandatory notice and a chance to clarify its position over the allegations of suppressing customer database. While checking the networks of Idea in the Andhra Pradesh DoT found that there was suppression of actual customer database and slapped Rs 50 crore penalty on it.

Tata Steel, Reliance Infrastructure and Bharti Airtel may witness some action today

Tata Steel, the world’s No. 7 steelmaker, may cut production further in Europe in the next few months if steel orders weaken. The company had already cut production capacity from 85-90% in the first half this year to 80-85% currently. In September, Tata Steel’s European unit, shut down one of its four blast furnaces in Scunthorpe, United Kingdom. Another blast furnace at the site was idled a few years ago on a long-term basis, while the two remaining furnaces are currently operating. Tata Steel is planning to invest $8 billion in India, also to expand operations, and 2 billion pounds ($3.15 billion) in Europe over the next few years.

Stock Watch: L&T, HPCL,DLF

Engineering major L&T is in discussions with Japanese conglomerates to sell stake in its fully owned subsidiary, L&T Infotech. The company is in discussions with firms such as Hitachi, Mitsubishi and Fujitsu, and negotiations with at least one Japanese player have progressed to a fairly advanced stage. The group is keeping the talks very hushed because it does not want the deal to come a cropper and fall through like the proposed sale of its electrical business. The Japanese player in the lead to acquire the firm could be Hitachi. The sale of the infotech business could fetch L&T anything between $700 million -1 billion as compared to the $3 billion the electrical business was expected to fetch. The sale of L&T’s electrical business was close to being finalised with US-based industrial firm, Eaton. However, opposition from employee unions and financial institutions, which hold over 30% stake in L&T, scuttled the deal.

M&M, Coal India and SAIL may grab investor’s attention today

Mahindra & Mahindra (M&M) has decided to postpone its launch of XUV500 sports utility vehicle in new overseas markets, since demand for the product was overwhelming in domestic market. The company has also decided to ramp up its production capacity at its Chakan plant, where the vehicle is manufactured, to bring down the waiting period from 17 weeks at present. The company, which launched the product in South Africa, was planning to launch in Australia, Chile, Sri Lanka, Nepal and parts of Western Europe. On the production side, the company initially planned to manufacture 2,000 vehicles a month and has now decided to ramp up. Final number will be decided in the next few weeks.

Indo Thai Securities Ltd IPO Oversubscribed!

THANKS FOR THE SUPPORT

IPO of Indo Thai Securities was subscribed 1.18 times on final day. It received total of 4.70 million against issue size of 4 million, of which 4.39 million were obtained at a cut-off price.

Indo Thai entered the capital market with a fresh issue of 4 million equity shares of Rs.10 each, in the price band of Rs. 70 to Rs. 80 a share, aiming to raise Rs. 280-340 million. The issue, comprising about 40% of the company`s post issue paid-up capital.

www.indothai.co.in

Stock Watch: Maruti, Bharti Airtel,Ranbaxy

Maruti Suzuki India has dismissed five more workers at its Manesar plant on disciplinary grounds while recruiting 100 new people to replace the existing workers, who have refused to sign the good conduct bond. During the first two days of the stand-off that began on August 29, MSI had dismissed five permanent workers. With the latest dismissal, the total number dismissed worked has gone to 10. MSI had also suspended 26 permanent workers and discontinued the services of another 18 trainees on disciplinary grounds. Also, some 600 casual workers at automotive parts maker Munjal-Showa’s Manesar plant went on strike demanding regularisation and protesting relocation, a sign that labour strife at Maruti Suzuki could be spreading to adjoining areas. Workers at the Indo-Japanese joint venture’s Manesar plant, which is close to the strike-torn unit of Maruti Suzuki, called the flash strike after two casual workers were shifted to the company’s Gurgaon plant. They were also demanding regularisation of casual employees. This is the second wave of labour strife in the Gurgaon-Manesar manufacturing belt this year.