Month: December 2007

Indiabulls Financial Services (IBFSL) informed us that it will issue over 2.56 crore equity shares to the shareholders of Indiabulls Credit Services (ICSL) pursuant to its scheme of restructuring. The company received Delhi High Court’s approval for restructuring its existing business, entailing the merger of Indiabulls Credit Services (ICSL) with itself and the demerger of Indiabulls Securities (ISL).

Indiabulls Credit Services (ICSL) is engaged in the consumer finance business. Indiabulls Securities (ISL), provides brokerage including equities, wholesale debt, futures and options, depository services, research services, mutual funds and initial public offer distribution to its clients.

Through the scheme of arrangement, ICSL will get amalgamated with IBFSL. IBFSL will issue 3 equity shares of Rs 2 each for every 10 equity shares of Rs 10 each held by the shareholders of ICSL. Meanwhile, ISL will issue 1 equity share of Rs 2 each for each share of Rs 2 each held in IBFSL.

Consequent to this restructuring exercise, the paid-up equity capital of Indiabulls Financial Services will increase to Rs 50.68 crore from the present Rs 45.55 crore.

MTNL has 34 plots in Mumbai and 33 plots in Delhi – size not disclosed. Currently, an IT park is being constructed on the land in Noida (~80k sq feet). Expression of Interest (EoI) for another 5 plots in Delhi have been called for. Management expects atleast 40-50% of the development work to be completed by December ’08.

For the land in Mumbai, they are in the process of identifying consultants for the same. MTNL may itself undertake the development of its land bank in Mumbai. Revenues from land bank will be largely from rental income (particularly in Mumbai) as most of the land is in the form of office space/buildings.

No outright sale is being considered at this point of time. It is unlikely that revenues from the development of the land will have any material impact on the earnings for the company for FY08-09E.

Sun TV Network announced the launching of its FM radio station at Vijayawada under the brand ‘S FM’ from 25 December 2007 through its subsidiary Kal Radio. This Station can be heard at 93.5 MHz frequency in Vijayawada. The programs will cater to the audience of all age groups.

The company hold licenses for 45 FM radio stations across India, and will be one of the largest radio broadcasters in India when all the remaining 28 stations become operational.

Oil and Natural Gas Corporation has announced that ONGC Videsh Ltd has bagged two exploration blocks in Brazil, viz. deepwater block 470 in the highly prospective espirito santo basin and shallow water block 1413 in another highly prospective Santos basin, amid stiff competition from International companies on 27 November 2007.

The first development well for coal bed methane (CBM) has been spudded on December 2007 at the drill-site Pad-B in Parbatpur, near Bokaro Steel City of Jharkhand.

ONGC achieved the unique distinction of becoming the first-ever Indian company in the Fortune Magazine’s annual (2007) list of the world’s most admired companies. This is based on a survey of Fortune Companies across the globe, conducted by the Fortune magazine, in association with Hay Group.