RBI Credit Policy: interest rate hikes end

The Reserve Bank of India held benchmark interest rates constant and left liquidity untouched, and did not cut the cash reserve ratios, as was being speculated. But that was not the big takeaway from the credit policy announcements.

The central bank has indicated that it is done with interest rate hikes, given signs of moderating inflation and slowing growth, and will now shift to using interest rate cuts to jumpstart growth again.

Continue Reading →

Tourist traffic pick-up to benefit industry

India’s travel and tourism market in 2011 is seeing healthy demand, going by the numbers being put out by the Ministry of Tourism.

In September, foreign tourist arrivals rose by 8.7% to 4.01 lakh numbers, and as we head into the main tourist season, the Indian tourism industry is set to end 2011 on a high note.

Spending by foreign tourists, labelled as foreign exchange earnings by the government, rose by 23% in rupee terms and by 19% in dollar terms in September, over the year ago period.

Continue Reading →

Pantaloon to raise Rs 1,500 crore equity

Pantaloon Retail (India)’s board of directors approved a proposal to raise equity funds of up to Rs 1,500 crore. The board has told the company to restrict equity dilution to a maximum of 15%, and to limit its debt to equity ratio to 1.33 times. Pantaloon has postponed its annual general meeting from 22 October to 10 November, giving it time to seek permission for the equity issue from its shareholders in the AGM itself.

Continue Reading →

Apollo completes Welspun deal despite share falling by 26%

Apollo Global Management had announced in end-June that it proposes to invest about Rs 1,575 crore in steel pipe-maker Welspun Corp and affiliated companies. Welspun’s share closed at Rs 169 the day before the deal was announced. Apollo was to invest in a combination of debentures and global depositary receipts, at a conversion price of Rs 225, indicating a premium of about 33%.

Continue Reading →

Leela sells Kovalam property for Rs 500 crore to Ravi Pillai

If Bharti Airtel led the way with an asset-light model in the telecommunication industry, Hotel Leelaventure (Hotel Leela) is attempting to do something similar in the hospitality industry.

The 5-star hotel operator said it will sell its Kovalam property to Ravindran B Pillai, or Ravi B Pillai, who owns the Saudi Arabia-based Nasser S. Al Hajri Corporation, an industrial contractor operating in the Middle East.


Continue Reading →