HDFC delays listing plan of insurance business
Housing Development Finance Corporation (HDFC) has postponed the plan to list its insurance business – HDFC Standard Life — from the previous schedule of end of 2009 to March 2011 due to the current market conditions, company officials stated.
HDFC ventured into the life insurance sector on a joint venture basis with UK-based Standard Life.
The company, which has so far covered over 812,811 lives, hopes to start making profits in another two years time.
The profit for an insurance company, particularly life insurance is dependent on growth and HDFC Standard Life Insurance’s profit-making would also be a function of growth, officials announced.
Edelweiss MF floats E.D.G.E Fund
Edelweiss Mutual Fund floated Edelweiss Diversified Growth Equity (E.D.G.E) Fund-an open ended equity scheme. The new fund offer (NFO) is open for subscription from May 4, 2009 to May 8, 2009. The Scheme offers three plans i.e. Plan A, Plan B and Plan C with common portfolio. These plans will have dividend (reinvestment, payout and sweep Facility) and growth option.
The New Fund Offer (NFO) price for the fund is Rs 10 per unit. The minimum application amount under Plan A is Rs. 1000 and in multiples of Re.1; under plan B is Rs.25000 and in multiples of Re.1 and Plan C is Rs.10000 and in multiples of Re. 1 thereof.
The asset allocation under E.D.G.E Fund will be 65%-100% % will be allocated in Equity and Equity related securities; and 0% -35% % will be allocated in debt securities and money market instruments. The scheme will be benchmarked against BSE 500.
The entry load under plan A is 2.25%, plan B and plan C is Nil. If an investment is redeemed with 180 days an exit load of 1.5% will be charged under plan A. Further if investment is redeemed between 181 days up to 365 days an exit load of 1% will be charged.
Under plan B an exit load of 1.50% will be charged if investment is redeemed within 90 days. Investment redeemed between 91 days to up to 365 days an exit load of 1% will be applicable.
Under plan C an exit load of 2% will be charged if investment is redeemed within 180 days. Investment redeemed between 181 days to up to 365 days an exit load of 1.5 % will be applicable. On redemption done after 366 days but before 545 days an exit load of 1% will be charged. Further if an investor redeems his investment after 546 days but within 730 days an exit load of 0.50% will be charged.
The investment objective of the fund is to generate long term capital growth from a diversified portfolio, investing predominantly in equity and equity related securities.
Bank of Baroda replaces Canara Bank to become the third-largest PSU bank
Mumbai based Bank of Baroda (BoB) has replaced Canara Bank to become the third-largest public sector bank in India in terms of profit and total business for 2008-09.
State Bank of India is currently the country’s largest public sector bank followed by Punjab National Bank.
BoB recorded a net profit of Rs 2,227 crore for the financial year 2008-09, about Rs 155 crore more than that of Canara Bank. The latter’s net profit stood at Rs 2,072 crore.
The total business of BoB stood at Rs 3,36,383 crore at the end of fiscal 2008-09, about Rs 11,000 crore more than Canara Bank, reports quoted.
Steel projects worth over Rs 44K cr behind schedule
As per ministry of statistics & programme implementation (MoSPI) data, half of the ongoing projects in the steel sector, costing nearly Rs 100 crore or more, are lagging behind schedule as of February-end, even as the government is pushing hard for speedy execution of infrastructure projects to boost the sagging economy.
MoSPI data shows a delay in executing 14 of the total 28 projects aggregating Rs 44,500 crore. The delay could lead to substantial cost escalation, pegged at a whopping Rs 6,000 crore.
According to MoSPI’s project implementation department, major delayed projects include the expansion of Rourkela Steel Plant at an estimated cost of Rs 6,133 crore and the development of Bhilai Steel Plant that would have cost Rs 5,185 crore, belonging to the country’s largest steelmaker SAIL. The firm’s annual producing capacity is close to 13 million tonnes, which it aims to ramp up to 26 million tonnes by 2012.
Tata Steel considering to re-bid for Liberian mine
Tata Steel is considering re-bidding for a $1.6 billion iron ore mine in Liberia in a response to the Liberian government’s invitation.
The Indian steel giant was barred from bidding in the Western Cluster as it was found allagedly voilating the norms, but later on Liberian government set aside the allegations.
The Western Cluster has estimated reserves of 3.4 billion tonne and the company is likely to take a look at the reserves and later take a final decision. The deadline for the bidding is May 15 and it is likely to be extended.
Global steel majors like ArcelorMittal and Severstal have steadily increased their presence in Liberia.
Max New York Life adopts new channels for distributing Max Vijay
Max New York Life Insurance Company (MNYL) is planning to reach out to the uninsured population through the unorganized kirana shops to sell its recently launched insurance cum saving plan — Max Vijay.
The insurer is implementing a pilot project in Uttar Pradesh covering 30 districts and 100 retailers including grocery shops and other mini-retail outlets and plans to implement it across the country next year.
It has entered into a tie-up with distributors in each district who will choose these retail outlets.
Training will be imparted to the entire distributor’s sales person and the shopkeeper who are certified and qualified according to the regulator’s norms and will work like a referral model.
The company has also entered into a tie-up with Pearless General Finance and Investment Company to market the scheme.
The company aims to attain a premium of Rs 300 crore in the first year over the next 2-3 years by selling Max Vijay.
Jubilant Organosys Expects revenues to grow 15% for FY’10
Highlights
- For the year ended March’09, the net sales increased by 41% to Rs 3517.98 crore and net profit declined by 5% to Rs 283.18 crore.
- Pharma and Life Science Products & Services segment revenues went up by 30% to Rs 601.01 crore for the quarter and 52% to Rs 2323.70 crore for year.
- Industrial and performance products business grew by 5% to Rs 240.87 crore for quarter and 24% to Rs 1197.51 crore for year.
- The company has exercised the option of AS 11 as per the notification issued by Ministry of Corporate Affairs on March 31, 2009. Accordingly, the unrealized foreign currency gain of Rs 103 crore in FY’2008 and the unrealized loss of Rs 491.70 crore in FY’2009 on restatement of foreign currency borrowing including FCCBs were taken to the Balance Sheet.
- Total international revenues grew by 31% to Rs 580 crore quarter and 56% to Rs 2177 crore for FY’09.
- EO item of Rs 36.90 crore for Q4 FY’09 comprises of gain of Rs 59.10 crore on buyback of FCCBs of USD 60.90 million, Un realized loss of Rs 101.30 crore due to mark to market of forward covers taken on future exports and Profit of Rs 5.3 crore on sale of Fixed assets.
- During the year company has also written off intangible assets of worth Rs 11 crore.
- Total debt on books as on 31st March’09 is Rs 3878 crore. Of which FCCB debt is Rs 975 crore and normal debt is Rs 2903 crore.
- Cash & Cash equivalents on books as on 31st March’2009 is around Rs 620 crore (Deposits with banks Rs 382 crore and investment in mutual funds of Rs 238 crore)
- Debt to Equity as on 31st March’09 is 2.6
- Average interest rate of the debt is less than 5%.
- Company has increased debt Rs 1770 crore in the year under review due to acquisition of Draxis.
- Draxis revenues for the year (only 10months) stood at Rs 315 crore and net profit clocked at Rs 68 crore. Expects to grow by 20% in FY’10
- Interest expenses for FY’10 would be around Rs 160 crore.
- Holiester topline grew by 31% to Rs 378 crore for FY’09 and EBIDTA margins are at 27%.
- Jubilant need to repay Rs 330 crore in FY’10.
- Company has incurred Capex of Rs 544 crore in FY’09 and expects to incur Rs 250 crore for FY’10.
- Company has filed 10 DMFs in FY’09 and expects to file 8-10 DMFs in FY’10.
- Company filed 7 ANDAs and 8 dossiers during the FY’09.
- Expect to file 8-10 ANDA/Dossiers FY’10
- Company received to final approval for Sestamibi (generic version of Cardiolite) from Canada and expects to get approval from US FDA in a weak time.
- CRAMS business grew by 25% to Rs 501crore for the quarter and 50% to 1963 crore for year.
- Order book backlog position in CRAMS and DDDS as of March 31st 2009 is USD 750 million.
- In Exclusive synthesis, 22 molecules are in different stages of development: Pre-clinical-2, Phase I-6, Phase-II – 7, Phase III-7 products and launched 2.
- In CMO segment 11 molecules are in different stages of development: Phase I-4, Phase-II – 3 and Phase III-4 and launched 15.
- Tax rate for FY’10 would be around 16% on consolidated basis and 18% on standalone basis.
- Company has hedged USD 250 million net exposures at Rs 47.80 per dollar.
- Expects PLSPS to grow by 17% and IPP to up by 11% for FY’10
- Expects revenues to grow by 15% for FY’10.