Ramalinga Raju front companies cliams 1230 crores from Mahindra Satyam

November 17th, 2009 by | No Comments | Filed in News, Updates

Hyderabad: B.Ramalinga Raju, who is now taking treatment in NIMS hospital in Hyderabad cleverlly arranged legal notices to Mahindra Satyam, owned by Tech Mahnidra Ltd. Satyam Computer Services Ltd has informed BSE that: “Mahindra Satyam has received legal notices from 37 companies claiming a refund of Rs. 1230. 40 crores (equivalent to around USD 265 million at exchange rate of Rs. 46. 47 per US Dollar), allegedly given as a temporary advance. The notices claim the money back to allegedly repay their creditors, some of whom include Maytas Properties Ltd. and Maytas Infra Ltd. The confession letter dated January 07, 2009, of Mr. Ramalinga Raju, former Chairman of the Company, also refers to net amount of Rs. 1230 crores arranged to the Company by the 37 companies. On November 14, 2009, Mahindra Satyam has replied to the legal notices stating
that the claims are legally untenable. ”

source: BSE

Bharti Airtel launches Far-East Connect Network for Asia and the Pacific region

November 17th, 2009 by | No Comments | Filed in News

New Delhi, November 17, 2009:  Bharti Airtel, Asia’s leading integrated telecom services provider announced the commencement of operations of its Far-East Connect Network, enabling it to serve the requirements of wholesale customers in the high growth markets across Asia and the Pacific. The Far-East Connect Network is uniquely designed to meet both the expansion and the diversity needs of customers in the Asia and the Pacific region.

The Far-East Connect Network has many unique network elements that span across the region and comprises of Airtel’s network assets on multiple cables routes i2i, SMW4, APCN2, JUCN, AAG and also a proposed investment in another High Speed Network between Singapore and Japan. This would now enable Bharti Airtel to extend its reach to Australia, Brunei, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, United States and Vietnam.

According to Manoj Kohli, CEO and Joint Managing Director, Bharti Airtel, “The launch of the “Far-East Connect Network” is another step towards Bharti Airtel’s vision of making Bharti Airtel, the communication services partner of choice for global telcos. Our investments of over US$500 million over the last two years are designed to create a global network that offers unmatched resilience and maximum diversity. Asia and the Pacific represent one of the fastest growing markets for ICT and as industry leaders in India. Bharti Airtel is uniquely positioned to take advantage of this growing market opportunity.”

Through the Far-East Connect Network, Bharti Airtel will be able to deliver seamless connectivity on Asia America Gateway (AAG). Bharti Airtel is one of the leading consortium partners for this new 20,000 Rkms cable system that is now ready to carry commercial traffic. This together with a capacity upgrade by Airtel on its existing network assets on multiple cable routes, has made available an additional 1 Terabit per second of capacity to the region. This Terabit Super Express Highway will link major cable landing stations in India, HK, Japan, Singapore and across the Pacific to the United States.

Further, through a unique partnership model, Airtel has entered into partnerships for capacity and onward connectivity to Japan, Taiwan, Australia and South Korea through multiple alternate routes. The initiative is consistent with Airtel’s aim of ensuring diverse meshed cable topologies on all major routes.

Bharti Airtel’s, global wholesale portfolio offers MPLS, Ethernet, IP and International Private Leased Circuit (IPLC) services to carriers in high growth markets across Asia and the Pacific. The portfolio includes solutions for voice and data connectivity, collaboration services, co-location, carrier outsourcing and content distribution through its next-generation high speed submarine and fiber network.
Source: Company Release

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Share Tips Prices Targets: IVRCL restructuring rational report by Motilal Oswal

November 11th, 2009 by | No Comments | Filed in Market Trends, Updates

It seems analyst community is convinced with the move taken by the IVRCL Infrastructure management to transfer the BOT assets to its listed subsidiary IVR Prime Urban Developers Ltd. Angel Broking given some positive opinion recently and Motilas Oswal has come out with some more details after the meeting the management. here is the key highlights of Motilal on the event:

IVRCL has announced restructuring of its BOT assets portfolio wherein it will transfer its holding companies to IVR Prime Urban (62.4% subsidiary). The effective date for the transfer will be April 1, 2009. The merger will be through share issue of 59.5m shares in IVR Prime Urban to IVRCL. Thus the stake of IVRCL in IVR Prime Urban will increase to 80.5% post the restructuring. Further details (e.g. incremental net worth of IVR Prime Urban post acquisition) will be available after Court approval for the transaction (expected by 1QFY11).

-      IVRCL’s BOT assets plus future opportunity valued at Rs9b: IVRCL has invested equity of ~Rs4.5b in the BOT assets. At the CMP of Rs152/sh for IVR Prime Urban, the transaction is being valued at Rs9b (P/BV of 2x).

-      Rationale for the transaction: Boost to IVR Prime Urban – increased net worth (up~85%), debt raising possibilities (~Rs5b), possible equity dilution: The restructuring will lead to increased focus on BOT projects, and also provide a higher net worth to bid for large projects. We estimate that at possible transaction value of Rs13.5b (at say 3x P/BV), the net worth of IVR Prime Urban as at March 2010 including capital reserves (~Rs8.5b) and minority interest (~Rs1.7b) will increase to ~Rs20b+. This compares with net worth of Rs10.9b as at March 2009 (including minority interest of Rs1.5b).

-      Valuation and view: We currently value the BOT portfolio of IVRCL at 1.5x P/BV, and thus the proposed transaction at 2x P/BV (based on CMP of IVR Prime Urban) will add marginally (~2.6%) to SOTP value of IVRCL. The transaction could lead to increased focus on BOT projects without necessitating further equity dilutions in IVRCL. We maintain Buy with price target of Rs382/sh for IVRCL.

Bajaj Motor Bikes tops the sales, no body cares price list

November 3rd, 2009 by | No Comments | Filed in Politics

Hyderabad: Festival sales have lifted Bajaj Auto Ltd’s September and October singinificantly. Youth never cares about price. they just look the style. just style.
It is clearly evedent that the customers never worried about the price list of Bajaj motor cycles. They just looked its style and looks.
The company sold  500,000 bikes  in September and October. Its just fantastic.  Bajaj motors drives industry growth by contributing 88% to the industry delta. Huge Demand for 100cc Discover DTS-Si with nearly 2 lakh units sold within 100 days of launch.
Here is the official version of the compnay on Bajaj Auto Motor Cycles – Bikes Sales:
The festive season has seen a massive demand jump for the Bajaj range of Motorcycles. Bajaj Auto’s sales have jumped 52% yoy in the month of October. The company’s share of sales has also increased from 28.4% to 33.8% in this peak festive month on the back of the phenomenal response to new 100cc Discover DTS-Si and the new Pulsar upgrades.
The recently launched 100cc Discover DTS-Si has proved to be a huge hit with customers with nearly 2 lakh bikes sold within 100 days of launch. According to S Sridhar Bajaj Auto, “We have received a tremendous response on both the new Discover and the Pulsar upgrades. Our ability to sell was only constrained by our inability to produce more. We are seeing a huge jump in number and share.”
The motorcycle industry grew by 133,000 numbers this festive season with 117,000 of this increase being contributed by Bajaj alone.  This upward momentum in share is likely to continue even post festive season with the new Discover getting even greater acceptance.