DLF to cut debt by Rs 2,800 cr by March next yr: Crisil

The rating agency removed its 'negative watch' from DLF's bank facilities and debt instruments, following the Securities Appellate Tribunal (SAT) order last month quashing the 3 year market ban imposed on DLF by markets regulator Sebi.

Realty major  DLF will reduce its net debt to about Rs 17,500 crore by March 2016, from Rs 20,300 crore at the end of 2014, as company plans to raise funds through various routes to cut borrowings, rating agency Crisil has said.

The rating agency removed its 'negative watch' from DLF's bank facilities and debt instruments, following the Securities Appellate Tribunal (SAT) order last month quashing the 3 year market ban imposed on DLF by markets regulator Sebi. Crisil had placed its DLF ratings on "watch with negative implications" in October 2014 following the Sebi order.

However, the rating outlook on the long term facilities remains 'Negative'," Crisil said in a note filed by DLF to the stock exchanges. The 'negative' outlook is because of high debt level, weak operating cash flow and residual uncertainty over regulatory issues, the rating agency added. Crisil, however, said that SAT's favourable order would enable DLF access capital markets and would support its financial flexibility.

"DLF plans to raise over Rs 2,500 crore through fresh issue of equity shares and real estate investment trusts (REITs) over the medium term," Crisil said. The agency believes that "DLF will reduce its debt (net of liquidity) to around Rs 175 billion as on March 31, 2016 from Rs 203 billion as on December 31, 2014". DLF had a net debt of Rs 20,336 crore at the end of third quarter of 2014-15 fiscal.

Crisil said it would continue to monitor progress of DLF's debt reduction plan, improvement in operating cash flows and outcome of regulatory issues. DLF is the country's largest real estate firm with a land bank of about 300 million sq ft, of which about 50 million sq ft is under construction. The company has a rental income of over Rs 2,000 crore annually.

DLF stock price

On April 09, 2015, DLF closed at Rs 159.35, down Rs 2.7, or 1.67 percent. The 52-week high of the share was Rs 242.80 and the 52-week low was Rs 100.00.

The company's trailing 12-month (TTM) EPS was at Rs 4.83 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 32.99. The latest book value of the company is Rs 93.40 per share. At current value, the price-to-book value of the company is 1.71.

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US jobless claims data point to strengthening labour market

The number of Americans filing new claims for jobless benefits rose less than expected last week and the four-week moving average of claims hit its lowest level since 2000, suggesting an abrupt slowdown in job growth in March was likely a fluke.

Initial claims for state unemployment benefits increased 14,000 to a seasonally adjusted 281,000 for the week ended April 4, the Labor Department said on Thursday. It was the fifth straight week that claims remained below 300,000, a threshold that is associated with a strengthening labour market.

"The claims data provide no confirmation of the March employment slowdown," said John Ryding, chief economist at RDQ Economics in New York.

US Treasury debt yields rose on the data and also as Greece's 450 million euro loan payment to the International Monetary Fund reduced safety bids for government debt. US stocks edged up at the open while the dollar rose against a basket of currencies.

Job growth slowed sharply in March, with nonfarm payrolls increasing by only 126,000, ending a 12-month stretch of employment gains above 200,000. But with the weakness mostly concentrated in the weather-sensitive leisure and construction sectors, economists downplayed the slowdown.

Last week's tepid employment report joined weak consumer and business spending, industrial production and housing starts data in suggesting the economy grew at a sub-1 percent annual rate in the first quarter.

Activity has been hit by a harsh winter, which is estimated to have chopped as much as seven-tenths of a percentage point from first-quarter growth. A now-settled labour dispute at normally busy ports on the West Coast, softer global demand and a stronger dollar also have weighed on the economy.

Economists had forecast claims rising to 285,000 last week.

A Labor Department analyst said there was nothing unusual in the state-level data. Claims tend to be volatile around Easter because of the shifting nature of the holidays.

The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 3,000 to 282,250 last week, the lowest level since June 2000.

"If claims remain this low, and we think they might even head lower in the coming weeks, it will be hard to claim there is persistent weakness in the labour market," said Guy Berger, an economist at RBS in Stamford Connecticut.

The Federal Reserve is watching the jobs market as it contemplates raising interest rates this year.

The claims report also showed the number of people still receiving benefits after an initial week of aid fell 23,000 to 2.30 million in the week ended March 28. That was the lowest level since December 2000.

The labour market strength was underscored by a report on Tuesday showing job openings surging to a 14-year high in February and less competition for jobs among the unemployed.

A separate report on Thursday from the Commerce Department showed wholesale inventories rose in February as sales remained weak, suggesting wholesalers might have little incentive to aggressively restock warehouses in coming months.

Stocks at wholesalers gained 0.3 percent after advancing 0.4 percent in January. Sales fell 0.2 percent in February after declining 3.6 percent the prior month.

At February's sales pace it would take wholesalers 1.29 months to clear shelves, unchanged from January.

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Bank of England holds firm ahead of tight UK election

The UK's benchmark interest rate stayed at the record low of 0.5 percent, where it has stayed since March 2009.

The Bank of England kept monetary policy unchanged on Thursday, as investors focused their attention on next month's too-close-to-call general election.

The UK's benchmark interest rate stayed at the record low of 0.5 percent, where it has stayed since March 2009. The central bank also held the size of its bond purchases under the quantitative easing program at £375 billion ($554 billion).

 This month's decision came ahead of a general election in May that is expected to be the closest-fought in generation. Forecasts suggest the Conservatives will emerge as the party with the largest number of seats after the election, but without an overall majority. This would potentially result in another coalition government, like the current Conservative-Liberal Democrat one.

Although the central bank has acted independently of the government since 1997, Societe Generale's Kit Juckes said a policy change this close the election was "unthinkable."

Instead, the bank is seen holding rates until inflation starts to recover, led by wage growth. The country is still in the grip of disinflation (falling inflation), with the consumer price index coming in unchanged in the year to February 2015, down from 0.3 percent in January—and well below the central bank's target of 2 percent.

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Sebi eases foreign investment rules in govt bonds

The Securities and Exchange Board of India, in an email sent late on Wednesday to custodian banks of foreign investors, said the facility to buy and sell government bonds the same day would be applicable on the entire USD 30 billion ceiling on government debt purchases by foreign investors.

India's market regulator has permitted foreign investors to reinvest in government bonds the same day, giving them the option to churn their portfolio, according to four traders with direct knowledge of the matter and an email of the new rules.

The Securities and Exchange Board of India, in an email sent late on Wednesday to custodian banks of foreign investors, said the facility to buy and sell government bonds the same day would be applicable on the entire USD 30 billion ceiling on government debt purchases by foreign investors.

Currently, the entire government bond limit for foreign investors is almost fully exhausted.

Reuters has access to a copy of the email.

"Upon sale or redemption or maturity of government securities the FPIs (foreign portfolio investors) shall be permitted to buy government securities on the same day," SEBI said in the email.

While currently foreign investors get a 5-day window to reinvest government bonds if they have purchased the limit by paying a fee at the auction, the current rules will be applicable when the limits are freely available, traders said.

The limits were auctioned since September when the quota was 90 percent used up.

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IMF's Lagarde sees 'new reality' of mediocre growth

Mediocre economic growth could become the "new reality," leaving millions stuck without jobs and increasing the risks to global financial stability, the head of the International Monetary Fund warned on Thursday.

Christine Lagarde, the managing director of the IMF, first warned in October the global economy could be stuck on a "new mediocre" growth path with high debt and unemployment, unless policymakers act.

"Today, we must prevent that new mediocre from becoming the 'new reality,'" Lagarde said, according to prepared remarks at the Washington-based Atlantic Council.

Speaking ahead of the release of the IMF's economic forecasts next week, Lagarde said global growth this year is similar to last year, while it is slightly better for advanced economies and slightly worse for emerging markets.

In its last forecasts in January, the IMF said the global economy grew 3.3 percent last year, advanced economies expanded by 1.8 percent and emerging markets grew 4.4 percent.

"It is not that overall growth is bad," Lagarde said. "It is rather that, given the lingering impact of the Great Recession on people ... growth is just not good enough."

While loose monetary policies are still needed, especially in the euro zone and Japan, very low interest rates are also breeding financial instability as investors tolerate higher risks and may overprice assets.

Lagarde also warned about the potential negative impact of the sharp appreciation of the U.S. dollar over the past six months, as the Federal Reserve prepares to raise rates while other central banks stay put.

She said some firms in emerging markets are particularly vulnerable as they deal with a higher dollar, lower commodity prices and higher borrowing costs.

As in previous speeches, Lagarde called for policymakers to pursue structural reforms, including infrastructure investment and trade reform.

"Frankly, in too many countries, these reforms have been lagging," she said.

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Zuari to launch open offer on Apr 20 to raise stake in MCFL

The open offer is being launched after an approval from fair trade watchdog Competition Commission for acquiring up to 36.56 percent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 398.2 crore.

Taking forward the takeover battle for Vijay Mallya-led UB Group's fertiliser firm MCFL, Zuari Group will launch an open offer on April 20 to acquire additional 36.56 percent stake in the company, for which it is competing with rival Deepak Fertilisers.

The open offer is being launched after an approval from fair trade watchdog Competition Commission for acquiring up to 36.56 percent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 398.2 crore. Zuari, led by Kolkata-based industrialist Saroj Poddar, had announced a voluntary open offer in December last year as well for acquiring 25.9 per cent stake in MCFL.

The firm has now increased the offer size to acquire up to 36.56 per cent stake. In a regulatory filing today, Zuari group firm  Zuari Agro Chemicals said the open offer will begin on April 20 and close on May 26. The two-way battle is going on between Zuari Group and Pune-based Deepak Fertilisers for a long time for taking over MCFL.

At the end of December 2014, Zuari held 16.47 per cent stake in MCFL while Deepak Fertilisers had 29.05 per cent. Crisis-hit UB Group, which had earlier supported Zuari offer, owns 21 per cent stake in MCFL.

Zuari Agro Chem stock price

On April 09, 2015, Zuari Agro Chemicals closed at Rs 249.40, down Rs 6.6, or 2.58 percent. The 52-week high of the share was Rs 309.50 and the 52-week low was Rs 124.05.

The company's trailing 12-month (TTM) EPS was at Rs 35.28 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 7.07. The latest book value of the company is Rs 191.56 per share. At current value, the price-to-book value of the company is 1.30.

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Satyam Scam: Downfall of Ramalinga Raju

Here's a complete recap of what really happened at Satyam, which led to the downfall of one of India Inc's poster boy Ramalinga Raju and nine others.

Here's a complete recap of what really happened at Satyam, which led to the downfall of one of India Inc's poster boy Ramalinga Raju and nine others.

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Dispose off plea on cap of fixed power charge: HC to Govt

The bench also extended till April 17, the date by which the JV has to submit a bank guarantee of Rs 544.97 crore as well as a payment of about Rs 108 crore under the Coal Mines Development and Production (CMDP) Agreement.

Delhi High Court today asked the government to consider as a representation a power company's plea seeking clarification on whether it intended to cap the fixed charge component of the rate of electricity generated from plants which won coal blocks in the recent auction.

The proposed ceiling would bar thermal power plants, which have succesfully bid for coal blocks, from increasing tariff on the electricity generated by them. A bench of justices B D Ahmed and Sanjeev Sachdeva asked the Power Ministry to consider the petition of Mandakini Exploration and Mining Ltd, joint venture (JV) of Jindal India Thermal Power Ltd (JITPL) and Monnet Power Company Ltd, as a representation and dispose it of by April 15.

The bench also extended till April 17, the date by which the JV has to submit a bank guarantee of Rs 544.97 crore as well as a payment of about Rs 108 crore under the Coal Mines Development and Production (CMDP) Agreement.

With these directions, the court disposed of the plea of the company in which JITPL holds 73 percent stake and Monnet the rest. The JV had successfully bid for and was allotted Mandakini coal block in Odisha. In its plea, the company said it had come to know from reports that the government proposed to cap the fixed charge component of rate of electricity generated by companies which successfully bid for the mines earmarked for the power sector.

Such a move, it said, "will amount to ex post facto change in bidding conditions of coal mines for power sector" and would render the entire project "unviable". The JV company contended that "bidding for a mine was based on the assumption that costs would be factored in the fixed charge".

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Xiaomi sells 2.11 mn phones in 12 hrs; sets Guinness record

The half-day bonanza, which brought in 2.08 billion yuan (USD 335 million) from sales of handsets and other accessories broke the previous record held by Alibaba's Tmall, which sold 1.89 million handsets on Singles' Day in November during a 24-hour event.

China's smartphone giant Xiaomi today said it has set a new Guinness World Record for mobile phone sales by selling 2.11 million handsets in a 12-hour flash sale held to celebrate its fifth anniversary.

The half-day bonanza, which brought in 2.08 billion yuan (USD 335 million) from sales of handsets and other accessories broke the previous record held by Alibaba's Tmall, which sold 1.89 million handsets on Singles' Day in November during a 24-hour event.

"Good news: Xiaomi just set a new Guinness World Record, selling 2.11 million mobile phones in 24 hours," chief executive Lei Jun posted on Sina Weibo - the Chinese equivalent of Twitter - shortly after the event.

"This is beyond my imagination," the Hong Kong-based South China Morning Post quoted Lei as telling reporters at the company's headquarters here. The new record has been certified by the official Guinness World Records and examined by auditor PricewaterhouseCoopers, he said. Xiaomi easily broke their record from the same event last year, which saw them selling 1.3 million smartphones.

Mobile phones and other accessories sold during the 12- hour event were discounted from Xiaomi's already famously low prices. Lei said the company was focussed on making smartphones, televisions, routers and other products sold on its website. In 2014, Xiaomi sold 61 million smartphones and had revenue of 74.3 billion yuan, becoming the world's number three smartphone player and China's top smartphone brand, overtaking Apple and Samsung.

The company was valued at USD 45 billion in a December funding round that drew investors ranging from Singapore's sovereign wealth fund to a private capital firm backed by Alibaba Group co-founder Jack Ma.

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Warburg sells 27% stake in Metropolis Healthcare

Commenting on the development, Metropolis Healthcare Ltd MD & CEO Ameera Shah said, "Warburg Pincus invested in the company in 2010 and after nearly five years of support, sold its shares for handsome returns. "The shares have been acquired by me and my family. We are very excited about the new phase of growth."

Warburg Pincus has sold its 27 percent stake in Metropolis Healthcare Ltd to the latter's promoter, the Shah family, for an undisclosed amount.

Warburg Pincus had picked up a stake in Metropolis Healthcare, which is India's leading pathology chain with presence in the UAE, Sri Lanka, South Africa, Kenya, Mauritius and Ghana, in 2010. After nearly five years of support, it has decided to sell its stake to the promoters, a company statement said today.

Commenting on the development, Metropolis Healthcare Ltd MD & CEO Ameera Shah said, "Warburg Pincus invested in the company in 2010 and after nearly five years of support, sold its shares for handsome returns. "The shares have been acquired by me and my family. We are very excited about the new phase of growth.

The company is now supported by eminent independent directors and I am backed by other marquee investors and eminent industrialists". "The relationship with Warburg Pincus was mutually beneficial for the investor and the company. With the new shareholding structure, Metropolis will take an even more aggressive path," Shah said in a statement here.

Warburg Pincus India Private Limited's Managing Director Niten Malhan said, "The decision to invest in Metropolis in 2010 was based on our thesis that demand for and growth trends in medical diagnostics will continue and that Metropolis is well positioned to benefit. "We are pleased to have partnered Metropolis during its critical growth phase. Metropolis, through its innovative vision and focused business acumen has now metamorphosed into one of India's leading pathology specialists and has created immense value for all its partners," he said in the statement.

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