Dalal Street

The Walt Disney Company Limited (Disney) has increased its stake in UTV to 32.1% through a preferential share allotment of shares (9.4m) for US$203m at Rs860.8/share. UTV promoters will be issued 4.5m warrants at Rs860.8/share. Disney and UTV will be equal partners, each with a 32.1% stake with Ronnie Screwvala retaining management control.

Induction of a technically and financially strong partner like Disney is likely to bring significant synergies and value to UTV’s existing businesses. The deal dampener, however, is the pricing, which is significantly below the market expectation. We are also surprised by the extent of funds raised, which is considerably above past requirements stated by management.

Synergies with Disney will definitely flow through, although the extent and timing remains uncertain at this point in time.

In an effort to live up to the expectations of small investors, Anil Ambani along with his core team in Reliance Power Ltd met just a while ago and have decided to convene a board meeting to issue Bonus shares to IPO investors excluding the promoter group.

Our analysts are quick to point out that the Bonus shares may get locked-in or may come with some clause to make the investor hold the shares for long-term. Lets not take the route American economy has taken for FREE and EASY Lunch. Let Anil Ambani strive, build and make Rel Power operational in record time to win the hearts of our rigid analysts.

Consider this as Tina Ambani’s gift for Reliance Power shareholders and also to save the ADAG group brand name which took a severe beating ahead of Reliance Infratel IPO.

HCL Technologies has informed us that it has been named by CRF UK, the independent business research organization, as one of Britain’s top employers, 2008.

Selected for excellence in HR management, the 100 chosen companies will be publishing in a title by guardian books and in the newspapers online version finalists will be formally announced at an awards dinner on March 20th, where the book will be launched. The book will contain company profiles of those selected, which will cover the company’s performance in relation to the assessment criteria and will offer commentary from the panel of advisors.

Congratulations to Shiv Nadar and HCL.

Punj Lloyd has bagged $300 mn order. The project, which starts this month and is slated for completion in April 2009, comprises the resort’s casino, theatres and retail arcade.

In December 2007, Punj Lloyd had secured a contract for building delayed coker unit & coker LPG Merox Block for the residue upgradation project of Indian Oil Corporation at its Vadodara, Gujarat refinery.

The company’s order book now stands enhanced at Rs 18,000 crore [$4.5 bn]