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S&P says interest rates likely to harden
Mumbai: Standard & Poor's (S&P) has said that interest rates in India may harden due to domestic inflation, hardening global interest rates, and stronger credit demand but may not affect the economy much.

The credit rating agency as said there could be hardening of about 25 basis points in interest rates. It said the government was unlikely to meet the target of 4.3 per cent of GDP, due to increased expenditure.

However, it said India's economic prospects continue to be robust and favourable.

S&P raised its rating for India to B+, which is one level below investment grade, in February.

It said that the seven per cent growth in GDP was driven by industry and services but the revised estimates of 8.3 per cent growth cannot be sustained due to the high fiscal deficit.
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AmEx predicts fall of dollar next year
New Delhi: The American Express Bank (AEB) has said that the US dollar will fall against all currencies during 2006 and the fall will be more steep against Asian currencies.

According to the bank, the rupee would strengthen to Rs41-42 per dollar in the next 12 months. The Indian currency was also likely to strengthen to Rs55 per euro and Rs76 per sterling in the next year.

The Chinese renminbi is expected to be revalued further by 2 per cent in the next few months. Thereafter, he said, the Chinese currency would rise by 4 per cent each year against dollar during the next two years.

He said the yen was undervalued and was likely to strengthen against the dollar.

The American Express forecast said the euro would strengthen and would be equal to $1.27 in the next three months and to $1.32 during the next three years.
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Citigroup acquires Kinetic Financial Services
New Delhi: Citifinancial, a wholly-owned Indian subsidiary of Citigroup has acquired a 67 per cent equity held by the Kinetic Group in NBFC Kinetic Financial services for an undisclosed sum.

Kinetic Financial is a 33:67 JV between Citifinancial and Kinetic engaged in two-wheeler financing.

It is learnt that Citifinancial has acquired 67-lakh shares of the NBFC by making downstream investment in Kinetic Financial Services. While the face value of the shares are Rs10 each, it could not be ascertained what premium Citifinancial paid for the equity stake.
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Pentamedia Graphics debarred from markets
Mumbai: The Securities and Exchange Board of India (SEBI) has debarred Pentamedia Graphics and its directors from accessing the capital market for issuing fake shares.

SEBI has also ordered the company not to alter its share capital in any manner till further directions.

SEBI took the action after an investigation, initiated on the complaints of Oriental Bank of Commerce (erstwhile Global Trust Bank).

SEBI's enquiry revealed that PMGL had issued fake shares to avail of credit facilities through the help of Vijay Advertising (VAPL), its preferential allottee.
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Wipro public issue expected in couple of years
Mumbai: Infotech bellwether Wipro is most likely to come out with a public issue within the next couple of years.

A top official from the Securities and Exchange Board of India (Sebi) said, "Since Wipro was listed before the 10-per cent listing rules came into effect, it will now have to up its public shareholding to 25 per cent within the next two years."

This also means that Azim Premji, chief of Wipro, will have to bring down his holding in the company to 75 per cent within the next two years. As June 30, 2005, the promoters hold 82.37 per cent stake in Wipro.

Public shareholders including the domestic and the foreign institutions, apart from other corporate bodies, hold 17.63 per cent in the company. This includes the American Depository Receipts (ADRs), which account for a miniscule 1.46 per cent.

Premji, thus, will have to offload 7.37 per cent or Rs4,160 crore of his share within the next two years to comply with the new regulations.

Till now it was not clear whether Wipro, would have to comply with the recently announced SEBI regulations that require all listed companies to bring down their promoters' holdings to 75 per cent within the next two years.

Market participants expected Wipro to be exempted from the new regulations due to its huge size.
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Suzlon IPO price fixed at Rs510
Mumbai: Suzlon IPO price has been fixed at Rs510. The issue opened on September 23 and closed on September 29. The issue was subscribed 45.86 times.
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PVR to enter capital market
Mumbai: PVR, a multiplex cinema company, has filed an offer document with the SEBI stating intentions to enter the capital market with an initial public offer of 77 lakh equity shares of Rs10 each for cash at a price to be determined through the book building process.

The issue comprises a fresh issue of 57 lakh equity shares by the company and an offer for sale of 20-lakh equity shares by ICICI Ventures.

The book running lead managers to the issue are ICICI Securities and Kotak Mahindra Capital Company.

The proceeds from the issue would be used to finance new cinema projects, expand film distribution business, technological upgradation, and renovation of cinemas.

The company plans to expand its cinema footprint and set up new cinemas in Mumbai, Hyderabad, Delhi, Indore, Gurgaon, Lucknow, Chennai, Ludhiana, Aurangabad, and Latur.
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