Dalal Street

Indian Overseas Bank reported net interest income of 8% growth to Rs 656 crore was slightly below expectations. Advances grew by a healthy 24% to Rs 54,621 crore and deposits registered a higher 33% growth to Rs 78,791 crore. A dip in NIM to 3.3% from 3.9% was on account of higher cost of funds as a result of falling CASA to 31% from highs of 36% a year ago. This led to low NII growth. However, surprise came from other income which grew 63% y-o-y to Rs.219.5 crore. Fee income grew 29% and trading gains were up 39%. Expect net interest income and non-interest income to grow at 18% and 19% respectively over FY07-09E.

PAT grew a healthy 24.5% to Rs 308.1 crore from Rs 246.8 crore in the corresponding quarter the previous year on account of a reversal in investment depreciation (change in method of amortization) resulting in overall provision coming down by 40% y-o-y for the quarter.

The board of Indiabulls Financial Services has decided to raise fund upto Rs 4,000 crore by issue of shares by international offerings through an issue of convertible securities / ADRs / GDRs and FCCBs convertible into equity shares of the company.

The board has decided to issue equity shares / fully convertible debentures / partly convertible debentures or any other securities other than warrants.

The board has decided to issue equity shares / fully convertible debentures / partly convertible debentures / optionally convertible debentures / debentures with right to subscribe to equity shares / convertible / non convertible preference shares / bonds / non convertible debentures with detachable warrants / any other financial instruments convertible or otherwise of the company.

Further, the board has decided to increase the existing authorized share capital of the company of Rs 1243,47,50,000 divided into 50,00,00,000 equity shares of Rs 2 each, 2,50,00,000 preference shares of Rs 300 each and 2,50,00,000 preference shares of Rs 157.39 each to Rs 1543,47,50,000 divided into 200,00,00,000 equity shares of Rs 2 each, 2,50,00,000 preference shares of Rs 300 each and 2,50,00,000 preference shares of Rs 157.39 each.

Phoenix Mills will be entering into a strategic alliance with Entertainment World Developers (EWDPL) by acquiring over 42% stake in the company. Phoenix itself, is currently building retail led mixed use development centers in tier I cities under the brand name of Phoenix market city and through partnerships with regional players in the tier II cities.

The 42% stake will be acquired by Phoenix through a combination of fresh cash infusion to acquire equity in EWDPL, and through the merger of certain entities that currently own equity in EWDPL. As a result of the transaction, EWDPL’s post money equity is being valued at Rs 1,250 crore.

EWDPL is a tier II city centric retail mall, mixed use developer, currently engaged in the construction and operation of mixed-use retail centers and townships. Its past projects include Indore’s first and largest retail mall: Treasure Island Indore – a 650,000 sq foot mall cum hotel which was voted the best designed mall in India for the last year. Treasure Island Indore offers five levels shopping, entertainment (a PVR multiplex), hospitality, dining and hosts over 100 retail outlets.

GMR Infrastructure has informed us that the GMR Group has successfully implemented SAP across all its businesses and locations, with the last of its three SAP instances going live on 04 February 2008 at its Head Quarters, Bangalore. Earlier, GMR’s airport projects at Delhi and Hyderabad had successfully implemented SAP. SAP will enhance productivity, scale up the operations and businesses seamlessly, provide reinforcement to its operations through best practices and robust security structures and fostering cohesive unity in expanding diversity. GMR implemented all the modules of SAP, relevant to its businesses.

SAP India is the implementation partner for the SAP instance implemented in Bangalore, covering all its businesses, except airports vertical. The hardware for the project has been sourced from IBM. While KPMG are project management consultants, TCS will provide post go live support. GMR has commissioned and implemented all the three SAP instances during the last one year with an investment of about Rs 60 crore.