Monday started the week with a big bang. Troubled by a debt burden. Kishore Biyani offloaded 40% of his stake in Future Capital to Warburg Pincus at Rs 162 a share price. With this stake, Warburg Pincus plans to infuse Rs 100 crore as equity into Future Capital.
Monday started the week with a big bang. Troubled by a debt burden, Kishore Biyani offloaded 40% of his stake in Future Capital to Warburg Pincus at Rs 162 a share price. With this stake, Warburg Pincus plans to infuse Rs 100 crore as equity into Future Capital.
The day ended on a momentous note when a Cabinet note directed telecoms to pay the new auction determined prices for licences to operate for the remaining period. The new prices will add Rs 120 lakh crore to the government's coffers and as a footnote, the EGoM was expected to meet and discuss spectrum prices.
On Tuesday, the government introduced supplementary trade policies aimed at giving a leg-up to trade with sops worth Rs 1,200 crore estimated to be rolled out soon.
The PNGRB issued a warning to Reliance Gas calling for cancellation of licences to lay pipelines on increased delays in pipeline projects.
The EGoM on the telecom sector finally met and concluded that a minimum of 10 MHz of spectrum had to be sold in eight slots at the telecom auction. The group of minister also decided refarming of the 900 MHz band. However, the reserve prices were not lowered .
Volatile market conditions forced RINL (Rashtriya Ispat Nigam Ltd) to defer its IPO by at least three weeks.
The day ended with India's PMI (Purchasing Managers Index) jumping two points to 54.7 in May from 52.8 in April, indicated the services sector posted the fastest pace of growth in three months during May.
India's BSE Sensex rose 430 points on Wednesday on hopes of rate-cuts from the Reserve Bank India. Meanwhile, the European Central Bank kept rates and outlook unchanged for the Eurozone.
In the evening, the Prime Minister called a sudden meeting of ministries key to the economy and rapped out a list of slew of infrastructure initiatives and reforms to bring some sheen to the investment-hungry economy.
Manmohan Singh ended the address with a parthian short- the private sector was called upon to shoulder the attempt to attain the GDP target of USD 1 trillion.
In the corporate world, Institutional Investor Advisory Services asked L&T Finance investors to vote against the board of directors' package - of 2.8% of profit-after-tax recorded in FY12.
The tax-man announced that direct tax collections were up 13% at Rs 5.9 lakh crore in FY12.
Meanwhile, cement manufacturers increased prices by Rs 10-15 per bag in certain areas citing rise in operational costs.
Thursday's much-awaited Reliance AGM turned out to be a cold shower when Mukesh Ambani announced plans to invest Rs 1 lakh crore over the next four years and doubling operating profits.
Investors and the market turned dull on revelations that extraction from KG-D6 had been more difficult than expected. Ambani also mentioned that till date, RIL has brought back 2.7 crore shares for Rs 1,929 crore.
In the juggle between political survival and economic reforms, the decision on the Pension Bill was deferred to a later date to appease Mamata Bannerjee.
Fraport AG, the world's second largest airport operator, announced plans to sell its 10% stake in Delhi Airport after a loss of faith in the government, despite the PM's war-cry to boost the infrastructure sector.
In the US, Fed chief Ben Bernanke does not hint about the third phase of quantitative easing in his Congressional speech too.
In the M&A sector, Piramal Health Care finally acquired DRG for USD 635 million.
The Parliament Standing Committee on Finance cleared the much-awaited Companies Bill and Benami Transaction Bill and both the bills are likely to be tabled in the monsoon session of Parliament.
On the weekend's eve Friday, the RBI auctioned new 10-year bonds at a cut-off of 8.15%.
The Essar Group exited its electronic-goods business, 'The Electronic Store'. However, the company’s mobile retail business called 'Mobile Store' will continue to operate.
On TV cable operator's pleas, the government may delay the digitisation process by six months.
Shadab Khan & Neelalohith Chitrapu