Category: Breaking Corporate India Earnings News

Satyam group company, Maytas Infra has signed a MOU with Vedanta Alumina for developing an integrated township for its staff in Jharsuguda, Orissa. The project has a total built up area of 14 lakh sq ft which Will be competed in 18 months and the value of the contract is 232.69 crore.

Vedanta Alumina has selected Maytas infra to develop the residential township for its staff based in Jharsuguda where in the scope of work for Maytas will include constructing the township on an EPC basis including site grading, designing of buildings and their construction etc.

The proposed township will include infrastructure facilities like roads, sewage, water treatment plant, Transit accommodation and Bungalows for top management of VAL, 2 BHK, 3 BHK and studio flats, guest house, hostel, open air theatre, dispensary, market complex, school, ancillary building etc spread over a build up area of 14 lakh sq ft.

Goldiam International informed us in a fax message that the development Commissioner, Santacruz Electronics Export Processing Zone (SEEPZ) special economic zone (SEZ) has granted permission to the company for setting up a trading unit in Andheri (E), Mumbai.

The approval granted is for trading in diamonds, cut & polished diamonds, precious stones, C&P precious and semi-precious stones, synthetic stones, pearls, alloys, plain & studded gold jewellery, plain & studded silver jewellery, labels, findings (gold/silver/platinum), mountings (gold/silver/platinum), stainless steel jewellery studded with diamonds and precious stones.

Century Plyboards India will hold a board meeting on 18 December 2007 to consider split of existing equity shares issued by the company from Rs 10 denomination to Re 1 denomination.

Jindal Steel & Power has told us that the company have been informed by Jindal Power, a subsidiary company, that first unit of 250 MW capacity has started generation of power for commercial purposes. Other three units of 250 MW each are in the final stage of implementation and the project (1000 MW) is likely to be operational by July, 2008.

Indian Oil Corporation (IOC)’s reserves and surplus have mounted to Rs 33,689 crore, almost 29 times its paid-up capital of Rs 1,168 crore. The biggest beneficiary of this move would be the Government of India, which holds over 80.35% in IOC. In past, IOC had issued bonus shares in the ratio of 1:1 in 1999 and 1:2 in 2003. The government has asked the company to consider a Bonus Issue.

Idea Cellular has informed us that Bharti Infratel, Idea Cellular and Vodafone India have agreed to form a independent tower company, Indus Towers, to provide passive infrastructure services in India to all operators on a non-discriminatory basis. This follows the infrastructure sharing MoU signed between Bharti and Vodafone in February 2007. Complete analysis on why the GSM Lobby formed this association is available on Convergence India.

The three companies will each merge their existing passive infrastructure assets in 16 telecom circles in India. Bharti and Vodafone Essar will own approximately 42% each and the Idea will own the remaining 16% stake in Indus Towers. New passive infrastructure rollouts in the 16 circles will be undertaken by Indus Towers.

This transaction highlights Bharti, Idea and Vodafone Essar’s commitment to enhancing the sharing of passive infrastructure and takes a firm step towards delivering on the Telecom Regulatory Authority of India’s (TRAI) recommendations on infrastructure sharing. The primary benefit will be the accelerated expansion of coverage, especially into rural areas, and enables wider access to affordable services for all, helping to meet the Government’s teledensity targets. Indus towers welcomes all operators to become customers. While these operators will continue to, run their active infrastructure completely independently, they will be able to enjoy opex savings, enhanced operational efficiency and quicker expansion of coverage.

Indus Towers will be an independently managed and operated Company, offering services to all telecom operators and other wireless services providers such as broadcasters and broadband services providers.

Parsvnath Developers has been awarded a contract for construction and development of footwear design & development institute at Fursatganj, Rae bareli, Uttar Pradesh (FDDI) by FDDI, Ministry of Commerce, Government of India, worth Rs 47 crore, approximately and the scheduled date of completion would be end November, 2008.

Another North Indian Developer, Omaxe Constructions in consortium with GVK Power & Infrastructure and Nagarjuna Construction Company has put in bid for the Rs 30000 crore project.

The project is proposed to be executed through a special purpose vehicle on Design, Build, Finance and Operate model by collection of toll in the concession period which is of 35 years and later the assets will be transferred to Uttar Pradesh state government.

Simplex Infra is expected to raise Rs.300-400 Cr through a Private placement. The process is likely to get completed in the next 2 weeks. In our Q2FY08 result update dated Oct 30, we had assumed that Simplex would issue 5 Mn shares at Rs.550, thereby raising Rs.275 Cr. However, since then the stock has run up quite a bit and keeping in mind today’s closing price of Rs.680, we now assume issue of 5 Mn shares at Rs.700. This is likely to lead to reduction in debt levels accompanied by a saving on the interest cost front, thereby improving FY08E EPS from Rs.19 to Rs.20. At this level, the stock would trade at a P/E of 34 times FY08E and 21 times FY09E.