Index heavyweight Reliance Industries (RIL) will be in spotlight as the corporate battle between the warring Ambani brothers will reach the last stage of a legal face-off today, 20 October 2009. The Supreme Court will begin the final hearing on the case from today. The tussle relates to supply of gas to Anil Ambani Group's Reliance Natural Resources (RNRL) from D6 block in the Krishna-Godavari eastern offshore fields of Mukesh-led RIL.
The dispute started due to a demerger pact between estranged brothers Mukesh and Anil on natural gas supply from Mukesh Ambani-led RIL to Anil Ambani group company, RNRL.
RNRL is suing RIL for not honouring its commitment of 2005 for supplying 28 mscmd of natural gas from the Krishna-Godavari Basin D6 block at $2.34/mBtu. RIL says it can't do so as the government approved the rate at $4.2 per mBtu and it will not make profit at a price committed in 2005.
Meanwhile RIL has reportedly initiated preliminary discussions with US-based refiners such as Valero Energy Corp and Flying J Inc for acquiring refineries. The report further indicated that Royal Dutch Shell's three refineries in Europe are also on RIL's radar.
The Cabinet Committee on Economic Affairs (CCEA) on Monday, 19 October 2009 okayed the proposal to sell a 5% stake sale in state run power major NTPC through a follow-on offer. After 5% stake dilution, the government's holding in NTPC would come down to 84.5% from the current 89.5%.
Unitech may see action after the CCEA also approved the Norway-based Telenor's proposal to hike stake in Unitech Wireless, its telecom venture with realtor Unitech, to 74%. The proposal, which has been pending government clearance for a long time, was delayed over security concerns at the Foreign Investment Promotion Board, after which it was sent to the Cabinet for approval.
CCEA has given its approval to Unitech Wireless (Tamilnadu) to enhance foreign shareholding by Telenor Asia Pte, Singapore, such that it may have direct and indirect foreign shareholding up to 74% with a foreign direct investment up to Rs 3,740 crore in each of the licensee companies, commerce minister Anand Sharma said after the Cabinet meeting on Monday. Telenor has already invested Rs 2,620 crore through new shares in the JV with current ownership at 49%. The company, now with the CCEA approval, intends to hike its stake to 67.25% with an additional investment of up to Rs 3,740 crore.
Rural Electrification Corporation board of directors at its meeting held on 16 October 2009 has approved the proposal of follow-on public offer (FPO) of equity shares, subject to approval of the Government of India.
Reliance Capital is reportedly entering a strategic alliance with Japan's second-largest investment bank Daiwa Securities to set up investment banking business in India.
Sesa Goa, Tech Mahindra, Apollo Tyres, Polaris, Radico Khaitan, Sterlite Technologies, and TVS Electronics among others will unveil their September 2009 quarterly results today, 20 October 2009.
Monsanto India reported net loss of Rs 4.59 crore in the quarter ended September 2009 as against net profit of Rs 15.71 crore during the previous quarter ended September 2008. Sales declined 11.81% to Rs 69.33 crore in the quarter ended September 2009 as against Rs 78.61 crore during the previous quarter ended September 2008.
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