| he deal is the largest overseas buy in the IT space | ||||||||||||||||||||||||||||||||||||||||
| Wipro Ltd, the country’s third largest software exporter, today achieved the distinction of making the largest overseas acquisition in the information technology (IT) space when it announced the acquisition of US-based, Nasdaq-listed outsourcing firm Infocrossing for approximately $600 million (around Rs 2,430 crore) in an all-cash deal. | ||||||||||||||||||||||||||||||||||||||||
The acquisition will be conducted through a tender for all the outstanding shares of Infocrossing, followed by a merger of Infocrossing with a Wipro subsidiary. Institutional members have a majority holding (close to 10 per cent) in the company.
| ||||||||||||||||||||||||||||||||||||||||
| Wipro is making an open offer at $18.70 per share, which — if fully subscribed — will cost close to $600 million. Wipro currently has cash reserves of $750 million and expects to close this acquisition by December 2007. Read more in Business Standard | ||||||||||||||||||||||||||||||||||||||||
Tuesday, August 07, 2007
Wipro buys US firm for $600 mn
RIL's Maha Mumbai SEZ may get extension
The board of approvals (BoA) for special economic zones (SEZ) is likely to extend tomorrow the validity of in-principle clearance to Reliance Industries' Maha Mumbai SEZ under the new rules that limit its size to 5,000 hectares.
"The extension of validity has been under the new rules that limit the size of a SEZ to 5,000 hectares," a government official said. Reliance had earlier proposed Maha Mumbai SEZ over an area of 10,000 hectares and received in-principle approval for project in August last year.
The amendment to rules notified in March had reduced the validity of in-principle approval to one year from three years previously, but BoA was given the powers to extend the validity by two more years.
Besides the Maha Mumbai project, the BoA, headed by Commerce Secretary G K Pillai, will take up eight fresh proposals. These include five zones for in-principle nod and three for formal approvals. Of these, two relate to Infosys Technologies which wants to set up IT and ITES zones near Hyderabad. The biggest zone coming up for in-principle approval is by Ispat Industries, which wants to set up a 1,012 hectare multi-product SEZ in Maharashtra's Raigad district.
Read more in Business Standard
India is now 5th largest global steel producer
India has moved up two places in global ranking and is now the fifth largest producer of crude steel in the world with the revised figures for production in 2006 ahead of South Korea and Germany.
An expert committee set up by the union ministry of steel, which went into the issue of under-reporting of capacity and production data, has revised the production figures for crude steel in calendar year 2006 to 49.45 million tonne as against the earlier reported 44 million tonne, which put India in the seventh position among global steel producers.
The revised figures for crude steel production in 2006-07 is pegged at 50.71 million tonne and that of finished steel at 51.90 million tonne.
According to figures released by the International and Iron and Steel Institute (IISI) for 2006 released in January, South Korea ranked fifth with a crude steel capacity of 48.4 million tonne and Germany sixth with 47.2 million tonne. With the revised figures, India has pipped both South Korea and Germany.
Lower estimates of induction furnace and re-rolling sectors accounted for most of the under-reporting of crude steel data, which in turn affected semi-finished and re-rolling (long product) figures.
Consumption figures have also been revised. The revised data series for the last five years for consumption after adjustment due to double counting for finished steel (alloy and non-alloy) shows that during 2006-07, domestic steel consumption stood at 46.14 million tonne as compared to 41.43 million tonnes in 2005-06.
Finance ministry limits ECB inflows to $20mn
The finance ministry today released revised guidelines for external commercial borrowings (ECBs) limiting inflows from such borrowings into the country at $20 million, and for use only for foreign currency expenditure for permissible end-uses of ECB.
According to a release on the website of the finance minsitry, "borrowers raising ECBs more than $20 million shall park the proceeds overseas for use as foreign currency expenditure for permissible end-uses. The above modifications would be applicable to ECB exceeding $20 million per financial year both under the automatic route and under the approval route."
The release added that borrowers proposing to avail ECB up to $20 million for rupee expenditure for permissible end-uses would require prior approval of the Reserve Bank under the approval route. However, such funds shall be continued to be parked overseas until actual requirement in India.
"All other aspects of ECB policy such as $500 million limit per company per year under the automatic route, eligible borrower, recognised lender, average maturity period, all-in-cost ceiling, pre-payment, refinancing of existing ECB and reporting arrangements remain unchanged," the release added.
The release further said that the new conditions would not apply to borrowers who have already entered into loan agreements and obtained loan registration numbers from the Reserve Bank.
Zensar Tech bags 7 mn dlr insurance biz
MUMBAI: Zensar Technologies Ltd, an IT and BPO services provider, today said it has received a seven million dollar (over Rs 28.27 crore) insurance deal from a South African insurance company.
With this deal, Zensar's insurance business reaches the 10 million dollar mark, having won a three million dollar contract from a US mid-west-based provider of insurance products, and a million dollar initial contract for BPO service from a Latin American insurance client.
"We are delighted to take our business in the 'Insurance Vertical' to its 10 million dollar mark, with the acquisition of a new insurance account in South Africa," Zensar Technologies Deputy Chairman and Managing Director Ganesh Natarajan said in a communique to the Bombay Stock Exchange.
Read more in The Economic Times
ICICI Bank reduces deposit rates by 0.25-0.50%
MUMBAI: ICICI Bank on Tuesday reduced interest rates on deposits of value less than Rs 15 lakh by 25-50 basis points for select maturities upto two years, a day after the country's largest lender SBI reduced its deposit rates.
The revised interest rate for tenors 181-365 days will be 6.25 per cent per annum as against 6.50 per cent at present, ICICI Bank said in a release.
Similarly, the revised interest rate for tenors 366 days-upto 2 years excluding special deposit schemes will be 6.25 per cent as compared to 6.75 per cent, it said.
The new rates would be effective from August 9, it said adding the interest rates on special deposit schemes remained unchanged.
The revision comes barely a week after Reserve Bank hiked the amount of depositors' money commercial banks need to park with the central bank by half a percentage point.
Read more in The Economic Times
Quatrro gets foothold in US mortgage sector
NEW DELHI: In what could be another game-changer for the Indian business process outsourcing (BPO) industry, Raman Roy-founded Quatrro BPO Solutions, on Tuesday, announced the acquisition of mortgage loan processing operations and platform of USA-based Preferred Financial Group, Inc.
Post the acquisition, Quatrro would become the first BPO offering from an Indian company that pursues the onsite-offsite model - the business model that has found favour with the software services industry in recent times. "We will be acquiring the technology platform, the people and the origination business of the US partner and that would also enable us to provide end-to-end fulfillment services to mortgage lenders across the US," says Quatrro Promotor Raman Roy.
The acquisition will be closed through Quatrro Mortgage Solutions - a subsidiary of Quatrro BPO Solutions and will allow the Indian major to provide quality service at a price-point projected to be 30 per cent to 50 per cent lower than current processing costs in the United States.
“This coming together of two successful organizations with talented people and great business acumen is in line with our creating value by innovation strategy, which involves attracting and supporting entrepreneurial management teams by building high-end third party businesses in underserved and uncontested market spaces,” adds Roy.
Read more in The Economic Times
Subir Raha joins RP Group as director
NEW DELHI: Former high profile Chairman and Managing Director of ONGC Subir Raha, who took the oil exploratory firm to new heights, will join RP Group of companies as a director.
"I am extremely pleased and privileged to have the opportunity to take on this new role. This is an exciting time to join RP Group. The company is experiencing a tremendous amount of growth, and I am excited that I can help in making an impact," Raha has been quoted as saying in a release issued by RP Group.
As a director Raha will manage RP Group's domestic business and strategic partnerships in India, the release said.
"As we continue to spread across India, Raha will focus on building a strong sales and operations team, developing RP Group's strategic positioning and enhancing our relationships with industry and government," RP Group founder and chairman Kaustuv Ray said.
Raha had also served as the Chairman of Standing Conference Of Public Enterprises (SCOPE).
RP Group with a turnover of more than Rs 400 crore has diversified business interests, including agro foods and ceramics, It has established a strong presence in the services sector, offering a wide array of high quality serials and newscasts.
Anil Ambani takes over 12K cr Sasan Power
NEW DELHI: At last, the Anil Ambani-led Reliance Power Ltd has bagged the Rs 12,000 crore Sasan Power Project with an installed capacity of 4000 MW. The project would be set up in the Sidhi District of Madhya Pradesh. Power Minister Sushil Kumar Shinde transferred the shell company, Sasan Power Ltd to ADAG Chief Anil Ambani in the capital on Tuesday. This brings to an end a bitter corporate feud that unfolded after the Lanco group was initially selected as the lowest and preferred bidder to execute the Sasan Power Project. Following disqualification of Lanco, the second lowest bidder, Reliance Power Ltd matched the tariff to Rs 1.196 per unit. Sasan Power Project is the first ultra mega power project that was taken up for execution by the nodal agency, Power Finance Corporation (PFC). Now, the Reliance Power will execute six units of 660 MW each. The Power Purchase Agreement, Escrow and Hypothecation Agreements were signed between Anil Ambani’s Reliance Power and PFC. Letter of Intent (LoI) for this Project was issued to Reliance Power Ltd on August 1. |
Subscribe to:
Posts (Atom)