Year: 2007

Shares of under performing and family managed company Patni Computers are trading up because of rumor that Private Equity investors may BUY stake in the company. The promoters have been slacking and are incompetent.

As per reports, private equity (PE) funds Texas Pacific Group and Apax Partners are close to purchasing the stake of two Patni brothers Ashok and Gajendra in Patni Computer Systems Limited.

The agreement between one of the private equity partners and the Patni brothers, who jointly hold 29% stake, is expected to be signed next month. Reports suggest Narendra Patni, the eldest brother and chairman and chief executive officer of the company, would buy out a part of the stake which Ashok and Gajendra had put on the block, while the private equity funds would buy the balance.

Indusind Bank Limited, yet another family managed bank which is underperforming the BSE-Bankex just a while ago denied rumours that ABN Amro Bank, Deutsch Bank and other foreign banks are interested in picking up a stake in Indusind Bank. Indusind management said it is not aware of any such developments.

Exide Industries announced during the market hours today, 21 August 2007 that a meeting of the board of directors of the company will be held on 28 August 2007 to consider rights issue of shares.

On 20 July 2007, the board of directors of the company had given their approval for acquisition of a 26% stake in a joint venture company in Australia for marketing of traction batteries. The board had also approved the acquisition of the balance 49% shareholding in its existing 51% subsidiary company Caldyne Automatics.

Exide’s net profit jumped 84% to Rs 70.11 crore on 51.4% rise in sales to Rs 663.92 crore in Q1 June 2007 over Q1 June 2006.

BHEL has won contracts worth Rs 6500 crore ($1.6 billion) for setting up power project units. It has won contracts for setting up two units of 500 mega watts (MW) each at the Koderma thermal power station in Jharkhand and two units of 500 MW each at Durgapur Steel Thermal Power Station in West Bengal. The orders have been placed by Damodar Valley Corporation (DVC).

Recently, Bhel had won a Rs 2900-crore contract for building three 500-MW units in north India.

ITC Ltd has announced the acquisition of 100% stake in Technico Pty Ltd, a producer of high-grade potato seeds. Technico is a small company with a turnover of Rs319 mn in FY2007. The acquisition through Russell Credit (ITC’s subsidiary) gives ITC access to highgrade potato seed technology and supply chain expertise needed for procurement of potatoes for its salty-snacks products. Though the company has not disclosed the cost of acquisition, and believe that the transaction is small and is unlikely to have a material impact on the company.

Kotak Securities retain outperform rating on the stock with a target price of Rs225 per share.