SumanSpeaks: The Information Super Highway

Jai Balaji Industries Ltd: A Hidden Mining Story CMP: Rs.23.80 Introduction : Jai Balaji Group is one of the largest manufacturers of steel in the private sector in Eastern India. It has integrated facilities for producing steel in its manufacturing units spread across the states of West Bengal, Chhattisgarh, Orissa and Jharkhand in India.  The Group has a chain of value-added products which include DRI, Pig Iron, Ferro Alloys, Alloy and Mild Steel Billets, Reinforcement Steel TMT Bars, Wire Rods, Ductile Iron Pipes and Alloy and Mild Steel Heavy Rounds. Jai Balaji Industries Ltd continues to have three wholly owned subsidiaries namely: M/s. Nilachal Iron & Power Limited==> It is a wholly owned subsidiary of the Company since 26.10.2007, having its manufacturing plant located in Kandra near Jamshedpur, Jharkhand. It currently, manufactures sponge iron. Work on increasing its capacity by 60,000 tonnes per annum has been initiated. The company has been allotted ...

Narendra Modi effect: Clutch of PE funds out to raise $2 billion Photo : Live Mint MUMBAI, Jun 21, 2014: More than half-a-dozen PE funds are set to start the process to raise a combined $2 billion (about Rs.12,000 crore) from foreign and local investors, riding on the bullish sentiment the change in government has brought to the market. At least four established PE funds have begun talks with investors while three have revived previously shelved plans, said people with knowledge of the matter and fund managers. Everstone Capital, ICICI Infrastructure Fund and Multiples Private Equity have launched road shows for new funds. Arth Capital and Exponentia Capital are among the funds that have brought back plans that had been put on the back burner. "We have a commitment of $150 million now and would raise up to $500 million for our infrastructure fund," said a person with direct knowledge of the ICICI Venture fund's plans. ICICI Venture, India's sec...

Centre studying SC order on Goa mines Govt wants to push lapsed Mining Bill in Budget session Photo : Indiatimes.com NEW DELHI: June 21, 2014: The lapsed mining bill that the Modi government wants to push in the Budget session may dilute the provision for issuing mining leases only through competitive bidding even as ministry officials are studying the Supreme Court judgment allowing resumption of iron ore mining in Goa, so as to incorporate some of its contentions in the Bill.  Officials also favoured a cap on excavation as ordered in case of the Goa mines, limiting it to 20 million tonnes a year to ensure all the minerals are not exhausted.  The mining industry is already active in the corridors of the ministry to plead for removing the clause that forces it to share its profit margin with the affected people. Contrary to BJP's poll manifesto promising allotment of the natural resources like coal, iron ore, minerals and spectrum only through auction, Min...

Sesa-Sterlite to focus on bauxite sourcing, Goa mining this fiscal Do you know another company which has Bauxite MINES but is trading BELOW its Face Value?  Thursday, 19 June 2014: Tom Albanese, the newly appointed chief executive officer of Sesa Sterlite, has identified sourcing bauxite for its aluminium operations and resumption of mining in Goa as some of his top operational priorities for the current fiscal, in the company's annual report for 2013-14. Sesa Sterlite, the country's largest natural resource company, needs bauxite for its 1 million tonne per year alumina refinery at Lanjigarh in Odisha. Despite scarcity of ore bauxite, the refinery has been operating at around 60% as it sources nearly 1.5 million from Balco's mines, and 1 mt from other states including Gujarat and Andhra Pradesh. The refinery was set up in Odisha in the belief that bauxite would be sourced from Niyamgiri. However after years of legal battles, the Supreme Court declined to ga...

India’s roads could pave the way to growth for the cement industry Photo : Min Post 16 June, 2014: Reports in the press suggest that India’s new Road Transport and Highways Minister, Nitin Gadkari, is interested in making a deal with cement majors across the country to secure long-term supply arrangements for the construction of concrete roads. A cost comparison study between concrete and bitumen roads has already been commissioned, but local media speculate that the initial cost of concrete roads (which is thought to be about 15% higher than bitumen) could be brought down by entering into long-term deals with cement producers. Concrete roads require less maintenance than bitumen and are better able to withstand the extreme weather conditions experienced in parts of the country. Some 50+ road projects are in the pipeline, but have not yet been started. Addressing the press at his first press conference, Mr Nadkari said: “Hurdles on the way of 50 mega road projects would be ...

Gadkari meeting may give infrastructure projects a boost June 21, 2014: Pending high-cost infrastructure projects in Tamil Nadu may see the light of the day with the change in regime at the Centre, and the State government’s keenness on joining hands with the Centre to execute them. The changing environment is likely to give a fillip to new infrastructure projects, too. A case in point is the contract signed early this week for the Tirumayam-Manamadurai national highway improvement work, the first contract to be signed in the State for a NH project after one-and-a-half years. Another project which is likely to take off soon is the Thanjavur-Pudukottai NH. When Union Minister for Road Transport and Highways Nitin Gadkari reviews the status of projects in southern States in New Delhi on Monday and Tuesday, the new government wants representatives of the States to take part in the deliberations, and the invitation has gone out for officials of the Tamil Nadu Highways Dep...

Sebi pitches for tax benefits on REITs, infrastructure bonds New Delhi, Saturday, June 21, 2014: To give a boost to capital markets, regulator Sebi has asked the government to provide clarity on tax benefits for new products like REITs (Real Estate Investment Trusts), as also for Infrastructure Investment Trusts and for debt securities. "Sebi will soon finalise norms for REITs, but is awaiting clarity on taxation issues," the Securities and Exchange Board of India (Sebi) Chairman U K Sinha said here today, while adding that the regulator wants such trusts to get tax pass- through status. Besides, Sebi is also close to framing new rules for Infrastructure Investment Trusts but there needs to be clarity on withholding taxation issues for such products, Sinha said. These new products would allow investors to invest in specific products linked to real estate projects and infrastructure projects, while providing necessary safeguards. Besides, these products would...

Infrastructure ministries to make power point presentation to Modi on Saturday NEW DELHI, JUNE 20, 2014:  Infrastructure ministries will make a presentation to Prime Minister Narendra Modi on Saturday at 10 a.m. Sources indicate that the secretaries of Civil Aviation Ministry and other ministries will make a 10-point power point presentation to Modi on what issues need to be tackled. The Ministry of Civil Aviation presentation is likely to focus on improving air connectivity, including regional air connectivity, and bringing infrastructure improvements in the sector. Courtesy : The Hindu Business Line

World Bank funds road links for India, Myanmar, Bangladesh Photo : Asia Briefing June 19, 2014: The World Bank has approved $107 million in funding for a much-awaited project to improve roads connecting India, Myanmar and Bangladesh, Press Trust of India reported Thursday. World Bank Country Director Onno Ruhl said, "Our Board has recently approved the road project in Mizoram, which will connect the state with Myanmar and Bangladesh." The project will be financed by a credit from the International Development Association, the World Bank's concessionary lending arm that provides interest-free, 25-year loans with a five-year grace period. The project will cover 91 kilometers of road widening and strengthening, including a 22-km section on the border with Bangladesh, a 27.5-km section on the border with Myanmar and 41.7 km connecting to border roads with Bangladesh to the west and Myanmar to the south. Linkage with Bangladesh will facilitate bilateral...

Birla Shloka Edutech Ltd: A Turnaround Story CMP: Rs.5.08 Introduction :  Birla Shloka Edutech Ltd is one of the leading company in the field of educational services and has created its own niche through reliable, budget friendly and ethical approaches. Birla Shloka Edutech Limited was incorporated on 25th May, 1992 (Registration Number 066910) with Registrar of Mumbai as Rathi Mercantile Industries Limited. It was acquired in the year 1998 by the prestigious Yash Birla Group. The  Company got its name as Birla Shloka Edutech Limited in December 2008.  Today the company stands tall with the trust and confidence of its millions of delighted customers who form the backbone of the company’s new product innovations and researched. Company is engaged in providing IT Services & sale of IT products and has a curriculam based educational software programe viz., “XL@School “ as per the syllabus prescribed by different educational board that is  designed to impart a...

Market Mantra Mr. Srikrishna, CEO-Birla Shloka Edutech Ltd., Mr. Derek Price, Chief Executive Officer, Linguaphone Group, Mr. Yash Birla- Chairman, The Yash Birla Group, Mr. Tunku Iskandar- Group Managing Director of the Melewar Group and Mr. Mushtaq Biradar. File Photo : Indian Corporate Buzz Yesterday, the market traded very volatile. Nifty continuously traded between 7550 and 7600 almost for entire day and finally giving a close of 7540,  with a net loss of 17 points. Its intra-day high and low were 7606 and 7502 respectively. After nerve-raking volatility of the past few days the Nifty is trading more or less range bound today. Till the morning the BULLS are clearly holding 7530 and 7480 marks and therefore a bounce from here will confirm the advent of the pre-budget rally. The investors are suggested to watch the two levels (7480 / 7530) carefully and take their buy or sell decisions. RESISTANCE : 7570 / 7600 SUPPORT :   7530 / 7480 Today's' Call : Buy B...

Infrastructure finance firms can raise long-term funds Besides, infrastructure debt fund NBFCs have been allowed to issue secured debentures Photo : MBA Skool June 19, 2014: The government, on Thursday, allowed infrastructure finance companies to issue secured debentures with a tenure of up to 30 years, a move that will help in raising long-term funds for the sector. Besides, infrastructure debt fund non-banking financial companies (ID-NBFCs) have been allowed to issue secured debentures for up to 30 years. “Similarly, housing finance companies have been allowed relaxed terms for maintaining debenture redemption reserve on the lines similar to NBFCs registered with the RBI (Reserve Bank of India). Necessary amendments in rules have been notified,” the Ministry of Corporate Affairs said in a statement on Thursday. A debenture redemption reserve is an account that can only be utilised to redeem debentures. As per the XII Plan document, India is projected to requ...

Sebi unveils slew of reforms; PSUs to have 25% public holding [Editor : It is now amply clear that, SEBI's so called reform, under the NDA Regime is based on the "Mantra": 'Sell Family Jewels to run the country'. This is just a replication of what P Chiddambaram & Co did, but in a more aggressive way.. Selling of PSUs to the retail investors is a reform? Or it is a way of Survival, to reduce the Fiscal Deficits? Really what to say!! I feel too many retail investor cannot be brought in this way. What is now needed is to encourage investments in small and mid cap counter, where the interest of most of the retail investors are focused.  Moreover, SEBI wold do well to abolish the T-group, which serves no purpose other than penalizing the shareholders. It is because this section is misused by the vested group of bureaucrats to the hilt.  I feel this is a new form of SCAM which the SEBI is promoting through official route. Those employees who have prior knowl...

Modi govt orders Hindi tweets; no way, says DMK File Photo : Asian Tribune Chennai: Dubbing as beginning of "imposition of Hindi", the NDA Government's reported directive to officials to give priority to the language in social media, DMK chief M Karunanidhi today said Prime Minister Narendra Modi should focus on economic growth and social development. "Giving priority to Hindi will be construed as a first step towards attempt at creating differences among non-Hindi speaking people and making them second class citizens," the 90-year old leader, whose party spearheaded the anti-Hindi agitation in the 1960s in the state, said in a statement here. Reacting to media reports that officials of all Union ministries, departments, corporations, or banks, who have official accounts in social media, should use Hindi, or both Hindi and English but give priority to Hindi, Karunanidhi questioned why Hindi should be given priority over other languages listed in the Ei...

End-Session: IT stocks nudge higher 19-Jun-14: Key benchmark indices declined in choppy trade as macroeconomic worries resurfaced along with increase in crude oil prices. India imports majority of its crude oil requirements. The barometer index, the S&P BSE Sensex, shed 44.45 points or 0.18%, off 224.05 points from the day's high and up 132.14 points from the day's low. The market breadth indicating the overall health of the market was negative. IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy.  Index heavyweight and cigarette major ITC gained after a block deal was executed on the counter on BSE today, 19 June 2014. Shares of PSU OMCs and state-run upstream oil firms dropped after international crude oil prices firmed up. Another trigger for the slide in the shares of ONGC and Oil India was reports...