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RIL
board clears demerger formula
Mumbai: The board of Reliance Industries Ltd has approved
the demerger formula by offering one share in each of
the four special purpose vehicles (SPVs) for every Reliance
share held. In a late-evening statement to the BSE, RIL
said its investment in the four demerged SPVs would be
to the tune of Rs19,000 crore.
As
far as the swap ratio goes, for each share held in RIL,
shareholders will get:
-
One share of Reliance Communications Ventures Ltd of
face value Rs5 each, fully paid up.
- One
share of Reliance Energy Ventures Ltd of face value
Rs10 each, fully paid-up.
-
One share of Reliance Capital Ventures Ltd of face value
Rs10 each, fully paid-up.
-
One share of Global Fuel Management Services Ltd of
face value Rs5 each, fully paid-up.
The
specified shareholders - trustees of Petroleum Trust (holding
7.5 per cent of the company) - and four companies: Reliance
Aromatics and Petrochemicals Pvt Ltd, Reliance Energy
and Project Development Pvt Ltd, Reliance Chemicals Pvt
Ltd and Reliance Polyolefins Pvt Ltd (collectively holding
4.7 per cent of the company) will not take shares of the
resulting companies.
That's because they hold RIL shares for the economic benefit
of the company's shareholders. The company's shareholders
will get proportionate benefit of this also.
As a result, the total number of shares to be issued by
each of the resulting companies would be 122 crore as
against 139 crore equity shares of RIL.
''The shareholders of Reliance will continue to participate
in the growth and progress of the company, which is a
global oil, gas, refining and petrochemicals company.
They would continue to hold the same number of shares
as they currently hold in the company,'' the company said.
Besides, the shareholders will receive separate shares
in the four demerged entities, which Anil Ambani had announced
earlier this week. ''This will allow them to participate
individually as well as collectively in the growth areas
of telecom, financial services and coal and gas-based
energy businesses,'' said the Reliance statement.
The shares of the resulting companies will be listed on
the stock exchanges in India, thus providing liquidity
to all shareholders. ''This will unlock value for all
shareholders as they can participate directly in all the
businesses that the company has nurtured and brought to
stature,'' RIL said.
All these businesses will be transferred to Anil Ambani,
chairman of newly- created Anil Dhirubhai Ambani Enterprises,
who had announced the merger ratio between these four
SPVs with REL, Reliance Capital and two unlisted companies.
The appointed date for the scheme would be September 1.
The demerger will apply to four separate companies as
going concerns, which will be part of the ADA group. They
are:
- Reliance
Communication Ventures Ltd for telecom undertakings,
including the company's investments in Reliance Communications
Infrastructure Ltd (RCIL), Reliance Infocomm Ltd (RIC)
and Reliance Telecom Ltd (RTL). The value of RIL investments
in RCVL is approximately Rs 15,400 crore.
- Reliance
Energy Ventures Ltd for coal-based energy undertaking
including the company's investments in Reliance Energy
Ltd. The value of its investments in Reliance Energy
Ventures is Rs 3,000 crore.
-
Reliance Capital Ventures Ltd for financial services
undertaking including insurance. The value of RIL's
investments in Reliance Capital Ventures is Rs 600 crore.
-
Global Fuel Management Services Ltd for gas-based energy
undertaking. The book value of the Company's investment
in this company is not significant, said the company.
The
board meeting was held in the evening at the company's
headquarters.
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Anil
Ambani welcomes RIL demerger
Mumbai:
Anil Ambani has hailed the RIL board's decision to demerge
and has welcomed the shareholders to his ADA Enterprises
fold.
''I
am delighted to welcome over 23 lakh Reliance shareholders
to the ADA Enterprises family…'' he said.
The
proposed reorganisation of Reliance Industries Ltd. (RIL),
as approved by the RIL board, and subject to necessary
approvals, will result in over 23 lakh RIL shareholders
becoming shareholders of each of the four special purpose
vehicles (SPVs).
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BK
Birla consolidates Pilani holdings
Kolkota: The patriarch of the Birla family, Basanta
Kumar Birla, has said that he was not worried about the
25 per cent stake held by Rajendra Lodha controlled M
P Birla group in Pilani Investments as he and his grandson,
Kumarmangalam Birla had now consolidated their position
in the family holding company. BK Birla's comments came
a day after he and Kumarmangalam signed an agreement to
buy out the combined 27 per cent stake of G P Birla-C
K Birla and S K Birla groups.
The patriarch said that the Lodha holdings did not worry
him at all because he and his grandson now had more than
50 per cent stake in Pilani. He also promised to continue
fighting Lodha in court.
B K Birla said the total cost of the buy out was around
Rs300 crore at Rs1500 per share of Pilani and it was entirely
funded by Kumarmangalam, who headed the Aditya Birla group.
He also said that he had received a definite commitment
from his elder brother, K K Birla, for the sale of his
seven per cent plus stake to him at a later date. Birla
said that this would make their position very strong in
Pilani as they will then have more than 50 per cent stake
in the company.
A total of 25 per cent stake in Pilani is held by M P
Birla group which is now under control of Rajendra Lodha
as per a purported will of Priyamvada Birla, the widow
of M P Birla, and which has been challenged by Birlas
in the court.
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UPS's
Asian expansion to accord high priority to India
Chennai: The global package delivery giant UPS is
expanding its Asia operations, focusing largely on China,
Japan, Hong Kong, Taiwan, India and Vietnam.
While China is the primary driver of growth, the company
accords high priority to India where it is present through
a joint venture, UPS Jetair Express, John Beystehner,
Chief Operating Officer, UPS, told a group of invited
international journalists at a technology summit in Hong
Kong.
The technologies that UPS has developed for operational
efficiency in the areas of identification, tracking and
visibility will also be available to its Indian joint
venture.
Additional access points will be created in India in highly
industrialised areas that attract foreign direct investment,
Mr. Beystehner said, acknowledging the strong growth in
business volumes in the country.
The UPS Trade Direct service, enabling end-to-end supply
chain shipments, including handling of Customs procedures
and advanced tracking functionality, and the Tradeability
service, offering similar features for package shipments,
is already available in the country.
In the area of technology, UPS is rolling out its latest
version of Delivery Information Acquisition Device, the
DIAD IV, in China, Taiwan and Hong Kong, and a wireless
scanner system in 12 Asian countries including India,
in 2006.
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Tata
AIG Life increases capital base
Mumbai: Tata AIG Life Insurance Company, a leading
private sector insurance firm, Friday said it had augmented
its capital base to Rs3.81 billion with fresh fund infusion
of Rs600 million.
The
company, a joint venture between India's diversified conglomerate
Tata Group and American International Group, said the
additional capital inflow would strengthen its solvency
requirements.
The
enhanced capital base will also ensure that Tata AIG Life
Insurance meets capital adequacy norms required for the
company's growth plans, said a statement.
"Our
company has a reputation of striking the right balance
between capital utilisation and rapid growth in the best
interest of our stakeholders and customers," said
Farrokh Kavarana, chairman of Tata AIG Life Insurance.
Ian
Watts, managing director of Tata AIG Life, said the additional
capital infusion would help the company meet its future
growth requirements and ensure a long-term sustainable
market position.
"This
fresh capital will be deployed in distribution expansion,
technology up-gradation, process enhancements, marketing
and training and development of employees and advisors,"
he said.
Tata
AIG Life, which has completed its fourth year of operations,
has registered a total premium of Rs.4.97 billion ($115
million) for the period between April 2004 and March 2005.
The
Tata Group holds 74 per cent stake in the insurance venture
with AIG holding the balance 26 per cent.
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IICT
led consortium develops synthetic aviation lubricant of
strategic value
Hyderabad:
An Indian consortium has indigenously developed synthetic
aviation lubrication oil, which can potentially save Rs100
crore of foreign exchange annually. The lubrication oil,
a strategic material, would be tested by the IAF on two
of its aircraft engines soon.
After all tests, the product is expected to be available
for commercial production by the end of 2007, according
to Dr J.S. Yadav, Director of the Hyderabad-based Indian
Institute of Chemical Technology (IICT).
The IICT is leading the consortium, which includes public
sector oil companies and Defence laboratories.
The development would put India in a select group of advanced
nations with the capability, Dr Yadav told newspersons.
The IICT is planning to set up a pilot plant with a capacity
of 100 kg in early 2006 to undertake all relevant tests.
IOC is expected to finally take up the commercial production.
The lubrication oil can withstand tough weather and temperature
conditions ranging from 200 degrees Celsius to 45 degrees
Celsius.
The consortium project was started a couple of years ago.
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Nimbus
Sport bags three year rights to Afro-Asia cricket cup
New
Delhi: Nimbus
Sport and the Asian Cricket Council have entered into
a three-year commercial agreement whereby rights to the
Afro-Asia Cup cricket tournaments of 2005, 2006 &
2007 have been assigned to Nimbus Sport.
Nimbus shall also be the host broadcaster for the 2006
and 2007 tournaments.
According to a company statement, Nimbus Sport plans to
introduce several television licensing innovations with
the Afro-Asia Cup. The tournament will have a title sponsor
and two official sponsors.
Commenting on the tournament, Jagmohan Dalmiya, President
of the Asian Cricket Council, said, "The Afro-Asia
Cup will bring together the best players from Africa and
Asia in a highly competitive tournament."
Harish Thawani, chairman, Nimbus Sports, said, "We
have already had unprecedented interest from broadcasters
and sponsors and will announce major partnerships as early
as next week."
The 2006 tournament will be in Asia and the 2007 tournament
will be in Africa. All three Afro-Asia Cups will consist
of three One Day Internationals, with the teams being
drawn from the best players of the respective continents.
According to the release, Nimbus Sport has recently won
several new assignments including A1 Grand Prix, Asian
Bowling Tour and two major, soon to be announced, golf
and football long-term deals.
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Cognizant
to expand its employee base in India
Chennai:
With the bulk of its recruits centred in India, the IT
services company Cognizant is looking to expand its employee
base further as the offshore outsourcing company broadens
the spectrum of its delivery. An estimated 14,000 associates
of Cognizant Technology Solutions' global workforce are
from India, and of these, 9,000 are Chennai based.
Almost 90 per cent of the company's campus placements
are also from India. The company now wants to take on
board 7,700 new candidates this calendar year. According
to Stephanie H. Kelly, vice-president (HR), North America,
India is currently its most important recruiting ground.
Ms. Kelly says her company evolved a dynamic in-house
training programme to turn candidates from across the
world into a close-knit team of players.
"A long career trajectory and a basket of diverse
opportunities is perhaps what most attracts candidates
to us," said Ms. Kelly. Add to that an open, non-hierarchical
work culture, opportunity for overseas placements and
exposure to cutting edge technologies.
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IVRCL
order book increases by Rs.600 crore
Hyderabad: IVRCL Infrastructures and Projects Ltd.
has improved its order book position by about Rs. 600
crore with its power and water divisions bagging new orders.
The power division received orders worth Rs. 460 crore
for rural electrification works (REW) under Central Government
schemes in Bhagalpur and Gonda districts of Uttar Pradesh.
The water division secured EPC contracts for a pipeline
project from Khorsam to Sujalam Sufalam Spreading canal
in Gujarat, a press release said.
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Corporate
Results: Monnet Ispat, Colgate Palmolive, Unichem Laboratories
Monnet Ispat Q1 turnover up 60 per cent
Monnet Ispat has reported a turnover of Rs146.57 crore
for the first quarter ending June 30, 2005, a rise of
60 per cent compared to Rs90.74 crore in the year-ago
period. The net profit rose marginally to Rs28.61 crore
against Rs27.06 crore.
It has begun operating a coal mine at Raigarh and the
entire requirement of coal is being met from the mine,
resulting in substantial savings of coal cost, according
to a release.
Colgate Palmolive to pay 27.5 pc interim
Colgate Palmolive (India) Ltd has informed the BSE that
its board of directors has declared a first interim dividend
of 27.5 per cent or Rs2.75 per share for the financial
year ending March 31, 2006.
The interim dividend will be paid on the paid-up equity
share capital of Rs135.99 crore involving a total payout
of Rs43 crore (including dividend distribution tax).
Unichem net doubles
Unichem Laboratories has registered an increase in its
income to Rs122.53 crore for the quarter ended June 30,
2005 from Rs122.17 crore in the corresponding period of
the previous year. After making all necessary provisions,
the net profit has more than doubled to Rs32.28 crore
from Rs14.40 crore.
Five of Unichem's products, Ampoxin, Trika, Uni-Enzyme,
Losar and Losar-H, rank among the top 300 pharmaceutical
products as per ORG.
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