Category: Economy, Markets and Macro Views

Sun TV Network will be launching a kid’s channel “Chutti TV” from 29th April 2007 onwards.

Chutti TV will be the first of its kind 24 hours channel from the company targeting the childrens in the age group of 2 to 14 years with regional and international flavour, versatile and rich mix of programming which includes best cartoons like Jackie Chan adventures, He-Man and pre school contents, etc. The programmes are designed to engage and stimulate the kids’ imagination during the early formative age.

At a monetary policy meeting today, RBI kept its key borrowing rate, known as the reverse repo, steady at 6% and held the bank rate, used to price long-term lending, steady at 6%. The RBI is likely to consider a proposal where housing loans less than Rs 20 lakh will cost lesser than prevailing rates for other Real Estate lending.

There was no change to the cash reserve ratio (CRR) beyond a previously announced increase to 6.5%, due on 28 April 2007.

Unitech (up 9.20% to Rs 435.55), Indiabulls Real Estate (up 6% to Rs 322), Ansal Housing (up 9.48% to Rs 282.45), Mahindra Gesco Developers (up 7.85% to Rs 658), Parsvnath developers (up 7.16% to Rs 318.20), Akruti Nirman (up 4.66% to Rs 397.50), and Sobha Developers (up 4.86% to Rs 855.35) had surged.

Holcim, the world’s second-biggest cement maker, has raised its stake in Gujarat Ambuja Cements (GACL) to nearly 30% in a deal worth approximately Rs 322 crore. Around 27.96 million GACL shares, constituting roughly 1.8% of its equity, was traded in a block deal on the Bombay Stock Exchange at a price of Rs 115 per share on Monday (23 April 2007).

Holcim owns nearly 28 per cent in Ambuja Cements and this stake would rise to nearly 30 per cent after the latest deal.

In another development, Matsushita Electrics of Japan has bought an 80% stake in Anchor Eelectricals for more than Rs 2,000 crore. Anchor shouldn’t have sold their stake and taken the IPO route because India will witness organised retailing of Electrical products with the construction boom in the next 2 decades. What Matsushita paid Anchor is priceless.

Cadila Healthcare has acquired Japan’s Nippon Universal. The Japanese acquisition will provide critical access to a ready manufacturing and marketing base as well as a strong distribution reach. The Japanese generics market, valued at $3 billion, has tremendous growth potential as it currently stands at just 5% of the total pharma market in the east Asian country in value terms, and 17% by volume, Cadila informed. The Indian drug maker said it will be looking at leveraging upon Nippon’s strong relationship with key wholesalers, which spans over three decades.

The present takeover marks Cadila’s second overseas acquisition, the first being Alpharma France in 2003. Cadila Healthcare had recently acquired Mumbai-based Liva Healthcare, a mid-sized Indian pharma company with a dermatology-focused product portfolio.

Strides Arcolab has decided to invest Rs 100 crore for acquiring Grandix Pharmaceuticals and will hold an EGM to seek shareholder approval. It is also alloting 56 lakh convertible warrants to promoters on preferential basis.

The revised open offer will now open on 25 April 2007, and close on 14 May 2007. The open offer price is fixed at Rs 185.25 per share (Including interest of Rs 80.95 per share only for shareholders who were holding shares on 27 August 1999 and still continue to hold them).

Luxottica gained control over 44% stake in Rayban through a 1999 takeover of Bausch & Lomb, US. However, the group did not follow up the takeover with an open offer. The Italy-based eyewear giant, Luxottica, is a global leader in premium eyeglass frames and owns several well-known brands such as Giorgio Armani, Ferragamo and Vogue.

In late-February, Rayban informed BSE that its board of directors had received a proposal from Luxottica Group, Italy, (Luxottica) indicating their intention to set up wholly-owned subsidiaries in India for wholesale distribution of various luxury & fashion brands in the eyewear industry, including the distribution of spectacle frames and sunglasses. Luxottica Group S.p.A, seeks a no-objection certificate from the company for this purpose.

For Q4 December 2006, Rayban Sun Optics India registered an 8.30% fall in net profit to Rs 3.33 crore compared to Rs 3.63 crore in Q4 December 2005. Net sales for the quarter ended December 2006 rose 18.30% to Rs 17.21 crore (Rs 14.55 crore).

However, for FY ended December 2006, Rayban’s net profit rose 17.60% to Rs 11.94 crore compared to Rs 10.15 crore during FY ended December 2005. Net sales for FY-2006 rose 29.30% to Rs 62.98 crore (Rs 48.71 crore).

Ray-Ban commands nearly 50% of the Rs 150 crore eyecare market in India.

The shares of ICRA listed on NSE at Rs 570. Currently trading at Rs 615, 86% premium to the issue price. If you are one of those lucky allotees, you can book profits. Analysts recommend a BUY at Rs 425 for long term investors.