DLF took yet another step forward in divesting its non-core assets. The real estate major is selling a large part of its wind energy business to a clean energy start-up Bharat Light & Power (BLP). Its wind energy division can generate up to 227 megawatts of wind energy through installations in 4 Indian states. Revenue from wind energy generation in 2011-12 was Rs 107.6 crore compared to total revenue of Rs 3,447 crore in its standalone financials.
Economy+Policy
Supreme Court’s opinion on auction of natural resources is fair to all
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Are auctions the only method for allocating natural resources was a question that was hanging fire since the Supreme Court’s verdict on the 2G scam was issued. The government, through a presidential reference, requested the Supreme Court to give its opinion on this issue, and a few other issues related to the 2G judgement. The SC’s opinion was critical, as it would set to rest any doubts about interpreting the judgement.
Companies
Tech Mahindra acquires 51% in Comviva for Rs 260 crore, is in a rush to buy growth
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The story in short:
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Economy+Policy
RBI gives cash in hand, but not a rate cut
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The Reserve Bank of India disappointed those who were looking to it, to complete a troika of measures to lift up investor sentiment. Last week, the European Central Bank said it would buy sovereign euro bonds without any limit, and the US Federal Reserve said it would launch a quantitative easing program that would continue for as long as economic conditions remained weak. Then, the Indian government followed up with a series of reforms, including cutting diesel prices and allowing FDI in a few high profile sectors.
Economy+Policy
UPA pulls the reforms rabbit out of its hat
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Was it the harsh criticism of the government, especially the Prime Minister, in international circles that did the trick, or did the government just muster the courage required to the bite the reform bullet? The answer is unclear and perhaps the real story will be told in the coming weeks and even months.
Economy+Policy
India hikes diesel prices: what is the UPA gameplan?
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Companies
Infosys acquires Lodestone, investors want more
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It was inevitable, one could say. Infosys Technologies’ acquisition of IT consulting firm Lodestone Management Consultants finally answers a question journalists and analysts have never tired of asking the company. The company has a mountain of cash that keeps growing over the years; at last count it had reached $3.2 billion or Rs 17,760 crore as of June 30, 2012. But it has never made a large acquisition, leading to questions on whether it is being too conservative. Those questions have some answers now. Continue Reading →
Banks
Indian PSU banks turn contrarian by cutting interest rates
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Some large public sector banks have begun cutting rates of fixed deposits and loans, despite no change in the Reserve Bank of India’s stance towards interest rates. The RBI has held that inflation is an overriding concern, and holding interest rates high may affect growth but will help in curbing inflation. So, what explains the action of public sector banks?
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Companies
Strides Arcolab redeems FCCBs, investors mark share up 2.8%
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Pharmaceutical company Strides Arcolab announced repayment of its foreign currency convertible bonds, sticking to its earlier announced plan, thereby lowering its debt to equity ratio to more manageable levels. The company had sold its stake in Australian company Ascent Pharmahealth, which ran its generic pharmaceutical business in Australia and South East Asia, to Watson Pharmaceuticals. Strides had earned Rs 1,200 crore from this transaction, after paying tax.
Companies
MRPL’s curtails refinery production due to water shortage
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Mangalore Refinery and Petrochemicals, a subsidiary of Oil & Natural Gas Corporation, has shut down two of its refinery units, as water supply to its plant has been cut off by the local authorities. The Nethravathi river supplies water to its refinery, and the river’s levels have dropped to very low levels, apparently due to hot weather conditions, according to this report in the Daily News and Analysis. Continue Reading →