Crisil downgrades Tata Finances NCD
Mumbai: Rating agency Crisil has downgraded the Rs 260-crore non-convertible debenture (NCD) issue of Tata Finance Ltd. It also downgraded a fixed deposit programme and a commercial paper programme of the company.

The NCD issue has been downgraded from `double A minus' to `A minus'; the fixed deposit programme from `F double A' to `FA'; and the Rs 100-crore commercial paper programme from `P one plus' to `P two plus'.

"All the ratings continue to be placed on rating watch with developing implications," said a news release from Crisil.

The programmes had been placed on rating watch on July 27 in view of the announcement made by Tata Finance of unauthorised financial transactions and sizable losses in its erstwhile subsidiary, Niskalp Investment and Trading Co Ltd, and in certain other associate companies.

With a significant exposure to Niskalp through inter-corporate deposits, which is in excess of the regulatory limits and Tata Finance's networth, its capital adequacy has been considerably constrained, said the release.

"The rating change also reflects pressure on profitability from core operations and a decline in the relative market position of Tata Finance in the commercial vehicle financing industry."

These factors are offset to a significant extent by the strong public affirmation of support by the Tata group with regard to the debt servicing obligations of Tata Finance, and similar affirmation by the group to the regulatory agencies, said the release.
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3 pharma firms gain Rs. 9,000 crore in 5 months
Mumbai: The scrips of Dr Reddys Laboratories, Cipla and Ranbaxy Laboratories have together added over Rs 9,000 crore to the investors wealth in less than five months .

The aggregate market capitalisation of the three companies has shot up from Rs 13,461 crore on April 14, 2001, (the day scrips quoted lowest) to Rs 22,493 crore on September 5, 2001, on the Bombay Stock Exchange.

The three scrips now account for 60 per cent of the total market cap of the 90 actively-traded pharma scrips.
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UTI move to link US-64 to NAV
New Delhi: The Unit Trust of India (UTI) is likely to transfer its real estate holdings worth over Rs 800 crore to the trust's development reserve fund (DRF) as a precursor to linking the Unit Scheme-1964 (US-64) to the net asset value (NAV).

Assuring the delegation of investors association, UTI Chairman M.R. Damodaran said the trust is planning to shift its real estate holdings, in the form of various offices and residential premises currently held by US-64, to the DRF.

UTIs DRF is currently estimated at over Rs 1,500 crore. UTI has set a deadline of January 2002 to make US-64 NAV-driven.
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Godrej & Boyce to increase stake in Godrej foods
Mumbai: Godrej & Boyce Mfg proposes to increase its stake in Godrej Foods to 49.75 per cent by acquiring 22,60,597 equity shares of the company from Godrej Industries and Swadeshi Detergents at a price of Rs 1.75 per share on September 13.

The company will acquire 21,28,831 equity shares from Godrej Industries and 1,31,766 equity shares from Swadeshi detergents representing 7.96 per cent equity in Godrej Foods, GFL informed the Bombay Stock Exchange.
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UB to up FII holding to 49 per cent
Bangalore: United Breweries plans to raise the limit of foreign institutional investment to 49 per cent in the company. UB will seek shareholders' approval at its forthcoming annual general meeting towards this.

UB has decided to invite a strategic minority investment and has appointed Kotak Mahindra as its advisor. UB also plans to restructure by carving out a beer only company.
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