Business Blog -Net Catalogue

In an astonishing feat Anil Ambani, the younger sibling of the famed Ambani brothers and Chairman of Anil Dhirubhai Ambani Group has raised one trillion Rupees in just 5 hours through the public offerings of Reliance Power, an entity that has no real assets as of now but plans to build 13 mega power plants across the country with an installed total capacity of 28,000 mega watts.

The feat is an indication of his ability to create craze for the Reliance tag, a magical gift his father the late Dhirubhai Ambani had. The 30% of the total 228 million shares offered has been earmarked for the retail investors has been over subscribed many times and the 60% kept for the institutional investors have received bids amount 16 time. It is expected that the whole IPO would get oversubscribed many times till it ends on 18th January.

It marks a great personal achievement for the young siblings who has broken away from the main Reliance group in January 2006. Analysts have attributed the success to two main reason.

1) The company belongs to Anil Ambani group which has been giving spledid returns to investors since its inception.

2) Secondly, investors have been attracted to the fact that, for the first time they are getting Rs.20 off in an IPO and also the market is buzzing with whispers that the share prices can go upto Rs. 1000/share from the initial price of Rs.450/share once it get listed on the bourses in the first week of February.

What Rs.1000000000000 means to India

• 7 times the projected health expenditure for the year 2008.
• Rs. 40 billion billion higher than the defence expenditure projectedin 2008
• Rs. 12.26 billion more than the projected income tax receipts in 2007-08.
• 66.24% of India’s fiscal deficit for this financial year.

Additional Info:
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Source – The Telegraph, Kolkata, India.

Tokyo, June 12 (Reuters): The milestone that the global auto industry has been holding its collective breath for — Toyota Motor Corp’s unseating General Motors Corp as the world’s biggest carmaker — came last year instead of in 2007 as many had expected, according to a leading industry journal. Detroit-based weekly Automotive News, whose data centre publishes a widely quoted ranking of the world’s automakers around this time every year, said Japan’s top carmaker outsold GM by about 128,000 units last year based on a technicality that excludes sales of vehicles at minority-held subsidiaries. “A little-known Chinese microvan played a role in Toyota’s victory,” the magazine, published by Crain Communications, said on its website. In its final tally for 2006, GM included the seven-seat microvan and other Wuling-brand vehicles built by a three-way venture with China’s Shanghai Automotive Industry Corp (SAIC) and Liuzhou Wuling Automobile even though it owns less than half of the company, the journal said. Automotive News credited 51 per cent-owner SAIC for the 420,140 units the venture sold in 2006, putting GM’s global sales at 8,679,860 units in 2006 against 8,808,000 for Toyota. In its ranking, Automotive News Data Center includes sales of a subsidiary in the total for the parent company with the majority stake. GM, which is in the throes of sweeping restructuring but is growing rapidly in China, has claimed the top spot for 76 years, including 2006. In April, Toyota and GM announced sales figures for the first quarter of 2007 which showed the Japanese automaker edging past its US rival by 90,000 units. The news prompted extensive media coverage as the first time ever for the switch at the top. Toyota’s figures, which correspond with Automotive News’ tally, include sales at units Daihatsu Motor Co and Hino Motors Ltd. GM’s comprises a dozen brands, including Chevrolet, Buick, Opel and Saab. Toyota is almost certain to take the lead for all of 2007 even by GM’s count after it projected sales of 9.34 million units.

Source – The Telegraph, Kolkata, India

OUR SPECIAL CORRESPONDENT

Mumbai, June 15: Vodafone Group Plc, which now holds a controlling stake in Hutchison Essar Ltd, is planning to invest $2 billion this year into the business even as it expects the cellular operator to add 1.5 million customers every month, Vodafone CEO Arun Sarin said today.

Sarin was in Mumbai today to attend the first meeting of the new Hutch Essar board. Hutch Essar will soon be named Vodafone Essar and the Hutch brand will also be replaced shortly.

Sarin said after the board meeting that the process of integrating Vodafone and Hutch Essar would be completed by September. He said more investments would flow in depending on the progress that the Indian entity made.

The company’s board has 12 members, four from Essar and eight from Vodafone, including two independent directors. Ravi Ruia is the chairman of the board and Arun Sarin its vice-chairman. Asim Ghosh is the managing director.

Sarin said no date had been set for the change of the brand name. “But it will happen. The next time you come here, you will see the Vodafone name,” he added. He said he was negotiating with other mobile service providers in the country on the possibility of sharing infrastructure like towers.

“We are interested in setting up a platform with whoever wants to join us so that we can build our network in India in a cost-effective manner,” he said. Vodafone has already announced network sharing plans with Bharti Airtel Ltd.