Tata Power plans to raise Rs 7,000 crore through NCDs

Tata Power, which is pursuing "aggressive growth plans", has sought shareholders' nod to raise up to Rs 7,000 crore through issue of non-convertible debentures.

"Approval has been sought for raising up to Rs 7,000 crore through issue of non-convertible debentures (NCDs) on private placement basis," according to notice sent out to shareholders for company's annual general meeting to be held on August 13.

The approval would be valid for a period of one year and the amount would be within the overall borrowing limits.

According to the notice, NCDs, issued on private placement basis, are a significant source of borrowings for the company.

"The borrowings of the company presently aggregate approximately Rs 11,000 crore," it added.

Tata Power has also sought permission to increase its borrowing limit to Rs 27,000 crore in order to meet financial requirements for projects as well as other corporate needs.

"In view of its strategic intent to be the largest integrated power company in India, the company has aggressive growth plans in the fields of generation, transmission, distribution and fuel securitisation," the notice said.

Noting that it is in the process of executing various thermal, hydro and renewable energy projects, Tata Power said these works would entail high capital expenditure, which needs to be financed by debt and equity.

"The company is also required to refinance Foreign Currency Convertible Bonds of Rs 2,000 crore, maturing in November 2014, and extend support to Coastal Gujarat Power Ltd, a wholly-owned subsidiary," the notice added.

According to the company, the proposed borrowings might have to be secured by way of mortgages, charges and hypothecations on its movable/immovable properties.

"As the documents to be executed by, with, or in favour of, the lender/parties may contain the power to take over the management and concern of the company in certain events, it is necessary for the members to pass a resolution for creation of mortgages, charges and hypothecation to secure such borrowings," it noted.

Since security to be provided is usually 1.25 times the amount borrowed, it is proposed to seek members' consent for creation of charges up to Rs 33,750 crore, the notice said.

Tata Power has an installed electricity generation capacity of more than 8,500 MW.

Indian rupee down 11 paise against US dollar, at 60.18

The Indian rupee fell by another 11 paise to trade at 60.187 against the US dollar in early trade at the Interbank Foreign Exchange market due to renewed demand for the American currency from importers and appreciation of the Greenback overseas.

Forex dealers said besides dollar's gains against other currencies overseas, increased demand from oil importers for the US currency put pressure on the rupee. They said, however, easing inflation and a higher opening in the domestic equity market limited the rupee fall.

The BSE Sensex rebounded by 188.70 points, or 0.75 per cent, to 25,195.68 in early trade on Tuesday.

The Indian currency had shed 14 paise to close at 60.07 against the US currency in the previous session on fresh dollar demand from banks and importers, amid weak local equities.

Brent hovers near $107 on Libya, Iraq concerns.

Brent crude inched down on Tuesday, but held near $107 a barrel as worries over conflict in the Middle East and North Africa supported prices. 

Several soldiers were killed and aircrafts were damaged in Libya on Monday, as rival militias in the OPEC nation fought for control of Tripoli's airport in the worst violence for six months. 

Brent futures had dropped 18 cents to $106.80 a barrel by 0423 GMT, after climbing 32 cents to settle at $106.98 in the previous session. Prices remain near their lowest in three months. 

U.S. crude climbed 5 cents to $100.96 a barrel, consolidating an 8-cent gain from the day before. 

Brent has steadily fallen since prices soared to a nine-month high of $115.71 in mid-June. That climb came after Islamic insurgents took control of swathes of northern and western Iraq, although output from the main southern oilfields has remained unaffected by the violence. 

But Brent could rise again as traders take forward positions on expectations there will be further threats to oil supplies in Iraq, Nunan said. 

Investors are also waiting for U.S. oil inventory data on Tuesday, after a Reuters poll of analysts forecast a 2 million barrel drop in stocks last week as refiners increased activity, while gasoline and distillate stocks both rose. 

MCX Gold October contract declines

 Gold prices on MCX were trading lower on Monday. MCX Gold October contract was trading at Rs 28108 down Rs 245, or 0.86 percent. 1  0 0Google +0 0 At 14:54 hrs MCX GOLD August contract was trading at Rs 28103 down Rs 253, or 0.89 percent. The GOLD rate touched an intraday high of Rs 28304 and an intraday low of Rs 28027. So far 6973 contracts have been traded. GOLD prices have moved down Rs 1197, or 4.09 percent in the August series so far. MCX GOLD October contract was trading at Rs 28108 down Rs 245, or 0.86 percent. The GOLD rate touched an intraday high of Rs 28270 and an intraday low of Rs 28010. So far 362 contracts have been traded. GOLD prices have moved down Rs 192, or 0.68 percent in the October series so far.

ITC Hotels plans to buy Advani Hotels' property in Goa

"As a policy we refrain from commenting on speculation related to the future plans of the organization," ITC reportedly said.

ITC Ltd is reportedly planning to acquire the Ramada Caravela Beach Resort from Advani Hotels & Resorts at a cost of Rs 700 crore, according to reports. Report stated that the 199-room, five-star deluxe hotel, which had a third of its rooms renovated in October last year, is managed by US headquartered Wyndham Worldwide. "As a policy we refrain from commenting on speculation related to the future plans of the organization," ITC reportedly said.

Lindt to acquire Russell Stover

This will greatly complement Lindt & Sprüngli's existing premium chocolate portfolio in the world's biggest chocolate marketplace.

The Lindt & Sprüngli Group, manufacturer of premium quality chocolate worldwide, is to acquire the traditional US family business Russell Stover Candies, Inc. headquartered in Kansas City, Missouri. This will greatly complement Lindt & Sprüngli's existing premium chocolate portfolio in the world's biggest chocolate marketplace. Russell Stover was founded in 1923 in Denver and soon focused on the manufacture of top quality gift pralines, a product which ranks highly in the US chocolate tradition. In 1993, Russell Stover acquired the Whitman's brand which was founded in 1842 and is one of the country's oldest names in chocolate. Today, Russell Stover/Whitman's is a leading manufacturer of pralines and seasonal candies in North America. Russell Stover/Whitman's makes chocolate products at four production sites. Its latest turnover stood at around USD 500 million. This biggest and most important strategic acquisition in the company's history will give Lindt & Sprüngli an established presence throughout the USA with its LINDT, GHIRARDELLI, RUSSELL STOVER and WHITMAN'S brands. The addition of the Russell Stover and Whitman's brands perfectly complements Lindt & Sprüngli's existing chocolate portfolio and will make the company the Number 3 North American chocolate manufacturer. The Lindt & Sprüngli Group will now expand its already strong and dynamic U.S. chocolate portfolio with the addition of a variety of products from Russell Stover/Whitman's, including gift pralines, chocolates for St. Valentine's Day - one of the most important chocolate gifting occasions in the USA - Easter and Christmas, as well as sugar-free chocolates. With the Russell Stover/Whitman's brand portfolio, Lindt & Sprüngli will significantly strengthen its leading position in the chocolate industry and will become the Number 3 chocolate manufacturer in North America. As an increasingly important strategic and growth-oriented partner, Lindt & Sprüngli will also greatly strengthen its relationship with the retail trade. In 1992, before the present Group Management took responsibility for the group of companies, Lindt & Sprüngli achieved a turnover of some CHF 30 million in North America. This new strategic acquisition means the group will pass the USD 1.5 billion turnover mark in North America in 2015 where it is set to be the fastest growing chocolate corporation. The acquisition of Russell Stover/Whitman's clearly signals Lindt & Sprüngli's intention to improve its market position in North America and further enhances the significant contribution which it already makes to the dynamic growth of the premium chocolate segment.

Ambuja Cement Foundation build healthcare & sanitation focus for Maharashtra

ACF has built more than 11000 toilets till date & works on waste management to improve sanitation in rural locations.

Ambuja Cement Foundation (ACF) plans to further strengthen its focus on healthcare and sanitation, through robust intervention programs planned for Maharashtra in 2014 - 15. The foundation promotes comprehensive health care and has built a strong cadre of 321 Village Health Functionaries - Sakhi’s till date to promote ante and post natal care in the country and works extensively on sanitation. ACF has built 11000 toilets till date. In waste management more than 3700 soak pits have been constructed across its locations. ACF also plans to work for open defecation free villages in the near future. Ambuja Cement Foundation has till date reached out to approximately 84000 individuals (16000 families), covering 160 villages, and built capacities for 180 Sakhis in the State of Maharashtra. It has developed close to 2,600 toilets and 900 soak pits for ensuring sanitation. ACF provides Clinical Care Support through mobile health dispensaries, diagnostic centres, and health camps. Preventive and Promotive Health intervention is provided through maternal and child health support, comprehensive sanitation, nutrition education and access to safe drinking water. These programs have had a cascading effect by reducing infant and maternal mortality rates, enabling increased deliveries and also empowering women. ACF drives sustainable health action and access to quality health care through an extensive participation of communities. This is done through an involvement of village development committees, village health sanitation and nutrition committees, Panchayat and Gram Sabhas. The foundation has various health and sanitation intervention programs across the country in the States of Chhattisgarh, Gujarat, Himachal Pradesh, Punjab, Rajasthan, Uttarakhand and West Bengal. Ambuja Cement Foundation has reached out to approximately 1.3 million individuals, covering 8 villages across the country. It has successfully built capacities for 321 Sakhi's across the country. ACF has further developed close to 11500 toilets, 3737 soak pits, to enhance rural sanitation. ACF is empaneled as a National Level NGO under Ministry of Drinking Water and Sanitation.

June WPI at 5.43%

Build up inflation rate in the financial year so far was 1.28% compared to a build up rate of 1.82% in the corresponding period of the previous year.

The annual rate of inflation, based on monthly WPI, stood at 5.43% (provisional) for the month of June, 2014 (over June,2013) as compared to 6.01% (provisional) for the previous month and 5.16% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.28% compared to a build up rate of 1.82% in the corresponding period of the previous year.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 1.3 percent to 249.9 (provisional) from 246.8 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group rose by 2.2 percent to 249.7 (provisional) from 244.3 (provisional) for the previous month due to higher price of fruits & vegetables (6%), coffee (5%), masur (3%), poultry chicken, urad,      egg, pork, milk, condiments & spices and fish-marine (2% each) and rice, arhar and fish-inland (1% each).  However, the price of tea (3%), ragi and barley (2% each) and gram, wheat, bajra, jowar and moong (1% each) declined.

The index for ‘Non-Food Articles’  group declined by 1.1 percent to 216.4 (provisional) from 218.8  (provisional) for the previous month due to lower price of soyabean (9%), gingelly seed and raw silk (7% each), tobacco and flowers (4% each), copra (coconut) (3%), linseed (2%) and raw cotton (1%).  However, the price of fodder and castor seed (4% each), cotton seed, niger seed, groundnut seed and sunflower (2% each) and raw jute, raw rubber and rape & mustard seed   (1% each) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.1 percent to 212.3 (provisional) from 212.1  (provisional) for the previous month due to higher price of high speed diesel and lignite (1% each).  However, the price of aviation turbine fuel and bitumen (2% each) and kerosene (1%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.2 percent to 154.9 (provisional) from 154.6 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by 0.4 percent to 171.6 (provisional) from 170.9 (provisional) for the previous month due to higher price of gur (6%), copra oil (5%), salt (4%), maida and wheat flour (atta) (3% each),  oil cakes (2%) and sooji (rawa), ghee and rice bran oil (1% each).  However, the price of gingelly oil (4%) and      cotton seed oil, vanaspati, groundnut oil, tea leaf (blended), sunflower oil and gola (cattle feed) (1% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.1 percent to 167.1 (provisional) from 166.9 (provisional) for the previous month due to higher price of steel (4%), ferro manganese (3%) and ferro chrome,     sheets, joist & beams, iron & steel wire, wire rods, angles, aluminium and steel castings (1% each).  However, the price of melting scrap (2%) and silver and gold & gold ornaments (1% each) declined.

The index for ‘Machinery & Machine Tools’ group rose by 0.4 percent to 133.8 (provisional) from 133.3 (provisional) for the previous month due to higher price of computers (6%), sprinkler (5%), ball/roller bearing,     fans and pvc insulated cable (4% each), grinding /wet coffee machinery and harvester (2% each) and fibre optic cable and boiler & accessories (1% each).  However, the price of insulators (2%) and batteries, electric switch gears and electrical pumps (1% each) declined.

FINAL INDEX FOR THE MONTH OF APRIL, 2014 (BASE YEAR: 2004-05=100)

 For the month of  April, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 180.8 as compared to 180.2 (provisional) and annual rate of inflation based on final index stood at 5.55 percent as compared to 5.20 percent respectively as reported on 15.05.2014. 

Yen Weakens Most in Five Weeks Versus Euro

The yen weakened the most versus the euro in five weeks amid waning concern that a banking crisis is developing in the euro area, damping demand for the currency as a haven.

The yen depreciated against all but one of its 16 major counterparts as European and Asian stocks advanced. The euro rose for the first time in three days against the dollar before European Central Bank President Mario Draghi speaks to European Union lawmakers. Indonesia’s rupiah fell the most in two weeks after the central bank said the current-account deficit probably widened to near a record last quarter.

The yen dropped 0.4 percent to 138.35 per euro at 9:24 a.m. London time, the biggest decline since June 6. The yen slid 0.2 percent to 101.50 per dollar. The 18-nation shared currency rose 0.2 percent to $1.3629.

Portugal’s Banco Espirito Santo SA appointed a new management board yesterday after markets were roiled last week when a parent company missed some debt payments.

Gold falls 1.5 pct on stronger equities

 Gold slid 1.5 percent on Monday in its biggest one-day drop in nearly seven weeks on selling from stop-loss orders and as Asian share markets gained strength.

Spot gold fell as much as 1.6 percent to $1,317.00 an ounce, and was at $1,318.11 by 0705 GMT.

U.S. gold futures also fell 1.6 percent, while silver fell nearly 2 percent.

The sharp decline comes after gold posted its sixth straight weekly gain last week and after hitting $1,345 - its highest since March - last Thursday.

Gold climbed sharply on Thursday as worries about the financial stability of Portugal's largest listed bank Banco Espirito Santo hammered equities and stoked fears of an European banking crisis.

But the fears have now faded, with Asian shares gaining on Monday as investors put aside concerns about euro zone banks and looked forward to corporate earnings and a raft of global economic events.

Another trader said troubles at the Portugal bank were unlikely to become a widespread European crisis.

Gold is seen as an alternative investment to riskier assets at times of geopolitical and financial uncertainties. The metal has managed to stay above $1,300 an ounce in recent weeks on safe-haven bids arising from tensions in the Middle East and Ukraine.

Israel appeared to hold off on a threatened escalation of its week-old Gaza Strip barrage on Monday despite balking at Western calls for a ceasefire with an equally defiant Hamas.

On Sunday, the Israeli military had warned residents of the northern border town of Beit Lahiya to leave or risk their lives when, after nightfall, it planned to intensify air strikes against suspected Palestinian rocket sites among civilian homes.