Birla Sun returns outperform benchmark indices
Mumbai: Birla Sun Life Insurance Company Ltd's (BSLI) returns on its various investment funds for the quarter ended September 30, have consistently out performed the benchmark indices. The benchmark index is a composite index of NSE (G-Sec index of over 8 years maturity) and Nifty in the same proportion as committed to the policyholder in the respective fund option, said a press release. BSLI offers its customers three investment funds in all its unit-linked life insurance plans. Each of these funds offer minimum guaranteed returns on the premium (net of all charges and deductions). BSLI has been giving consistently higher returns than the guaranteed rate on each of the investment funds at an optimal level of risk, the release said.
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SCI scrip dips on HC order
Kolkata: The market valuation of Shipping Corporation of India stock was down on Tuesday in view of the Bombay High Court order on maintaining "status quo" vis-à-vis its disinvestments process.The stock closed the day at Rs 121.65, down from Monday's Rs 124.65 on the NSE. The stock price touched a high of Rs 146 on October 8, when announcement of a dividend of Rs 17 per share was made. The court has adjourned till November 14 a petition by the company's employees' union challenging the stake sale and reportedly asked the parties to maintain status quo till then.

While shipping industry circles were busy assessing the impact of the order on SCI's disinvestments process, the bidders and the target company preferred silence on the subject. It is not clear whether the status quo would mean that the submission and opening of bids as also declaration of reserve price could take place as scheduled. According to the process, the Cabinet Committee on Disinvestments should meet within 7 days of submission of bids to consider the winner. By this time, the reserve price to the CCD would be made available. Since the last date for filing bids is October 20, the whole process, in the normal course, should be complete much before November 14. Essar Shipping, Sterlite and Videocon are in the fray for 51 per cent stake in SCI. Lazard Cap and SBI Cap are advisors to the Disinvestments Ministry for SCI. According to market sources, if the disinvestment process is not stalled, SCI privatisation would be a well-fought one.

The price-to-book value of SCI is at a discount of around 50 per cent compared to most global tanker shipping companies, according to analysts. The P/E commanded by SCI is one of the lowest amongst leading international shipping companies, especially in view of strong and diversified asset base, assured business from oil PSUs for two years after privatisation, booming freight rates (both for dry bulk and crude) totally
depreciated and paid for maritime assets as also huge hidden reserves in real estates. The potential net asset value per share for fiscal '04 could be Rs 122 on a book value of Rs 91 per share, analysts observed. The second quarter result, which is due on Thursday, is expected to be much improved.

The Government, which holds 80.12 per cent stake in SCI (the balance is held by FIs, FIIs, MFs and public), is to retain 26 per cent post-disinvestment. The draft share purchase agreement specifies an open offer after disinvestments for 19.88 per cent public holding. According to industry experts and market analysts, bid prices could be much higher than the current market price.
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MFI, ICRA tie up to introduce value-added products
Kolkata: Mutual Fund India, in which ICRA has recently taken a critical 33 per cent stake, plans to use the credit rating agency's analytical expertise and work with it to introduce value-added products in areas like risk and wealth management. The tie-up with ICRA will enable MFI to cater more effectively to its user community, which currently comprises major fund houses, banks and intermediaries. In addition, there are plans to enter new
sectors like insurance, public issue of equity and fixed-income instruments.

MFI, according to Aditya Agarwal, Joint MD, has already developed an operations management software for distributors of insurance products. This is expected to help distributors to track business performance and receivables like commissions; it is further aimed at generating various reports critical for the business. The company is also working on what is being termed as an insurance planner, which will incorporate certain tools to facilitate the identification of the most suitable scheme for a client, calculate premia and maintain the client's insurance portfolio. Software is
also a potential area of expansion for MFI, Agarwal mentioned, adding that there are plans to cater to the financial services sector in a big way. "We have a thorough understanding of this segment. We undertake projects and have recently started focusing on product development," he observed. MFI, incidentally, is in the business of designing and hosting websites as well.

Business process outsourcing (BPO) has been identified as an area that offers significant scope for expansion. The outfit is planning to venture into non-voice outsourcing business, with special emphasis on financial services. ICRA, which is said to have existing relationships with a number of organisations, is seeking to procure business on this front. As for technology services, the outfit has developed software products and services, aimed at meeting specific requirements of users. These include integrated solutions encompassing such functional aspects of intermediaries as sales management, accounting and client servicing. Besides, there is the
`MFI office manager,' which optimises back office operations. It may be mentioned that the software can also be used for bonds, equity IPOs, FDs, insurance and home loans.
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OCB tones down Bharti Tele
Mumbai: The stock of telecom major Bharti Tele-Ventures came under heavy selling on Tuesday. The selling was despite the company announcing a new attractive package for subscribing to its cellular services. The market talk was that heavy selling by an overseas corporate body (OCB) has led the decline in the stock price. However, this selling was nothing to do with the financials of the company or any event related. The main factor for the selling is that OCB cannot operate in the stock market and those who hold
the shares have to sell in the secondary market. Talk is that this OCB is holding some more shares of the company and is expected to sell them in the days to come. On Tuesday, the stock of Bharti Tele-Ventures closed at Rs 72.20, down 8.61 per cent with volumes of 9.43 lakh shares on the BSE. On the NSE, the stock closed at Rs 72.35, down 8.24 per cent with volumes of 22.58 lakh shares.
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Rupee down 27 paise; gilts rally further
Mumbai: The rupee closed 27 paise lower at 45.69/70 against the dollar on Tuesday, down from Monday's close of 45.42/43. With the US markets closed on Monday on account of Columbus Day, there were no fresh supplies of the greenback in the market to meet the demand from oil and engineering companies, leading to a strain on the rupee.
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