Vedanta's long-term debt rating upgraded
New Delhi: Global rating agency, Moody's has upgraded metal company Vedanta Resources' long-term debt rating by one step to 'Ba1' from 'Ba2' and affirmed the corporate family rating at 'Baa3' with 'stable' outlook.

This comes after Vedanta, the country's largest producer of copper and zinc, announced its convertible bond issue of US$725-850mn to refinance existing subsidiary debt and part-finance its US$2.9bn expansion projects in Orissa.

The corporate family rating reflects the Vedanta group's ability to honour its financial obligations as if it had a single class of debt and a single consolidated legal entity structure, Moody's Investors Service said in a statement.

The 'Baa3' rating reflected Vedanta's strong position in India's base metals sector, its track record in implementing capacity expansions; and the continuing favourable operating environment for base metals, the agency said.

The senior unsecured rating of 'Ba1' remained one-notch lower than the corporate family rating. Over time, the ratings could be equalized if Vedanta reduces subsidiary and secured debt and increases its indirect shareholdings in companies such as Hindustan Zinc Ltd and Bharat Aluminium Company Ltd.
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GIC picks up 3 lakh shares in Surana Industries
Chennai: General Insurance Corporation of India has picked Surana Industries' shares from the market after the latter announced its proposal to put up a Rs473-crore integrated steel complex in Karnataka. In the week ended January 13, the public sector re-insurer ended up with three lakh shares of the company.

Banking officials also say that Surana Industries' proposal to borrow Rs330 crore for the project has met with a keen interest from various banks and at a meeting held early this month, eleven banks gave commitments, which totaled to Rs650 crore.

The 1.5 lakh-tonne Integrated Steel Complex project is coming up at Raichur. To part finance the Rs142-crore equity portion of the issue, the company proposes to come out with a public issue. Punjab National Bank has been mandated to prepare the prospectus, says the notification to the stock exchange.
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Lokesh Machines to issue IPO
Hyderabad: Lokesh Machines has filed its draft red herring prospectus with the Securities and Exchange Board of India for its forthcoming IPO of 30 lakh equity shares of Rs10 each for cash at a premium to fund its expansion cum up-gradation plans.

The price of the issue is to be determined through the 100 per cent book building process. The company's shares are to be listed at the BSE and the NSE.

The company expects to raise about Rs90 crore from the issue. According to the prospectus, the IPO is aimed at funding the company's growth plan that encompasses setting up the facility for machining and supply of cylinder blocks and cylinder heads for commercial vehicles.

This expansion plan will also seek to modernise the project and upgrade the existing facilities for manufacture of CNC Machine Tools aimed to cater to the export markets and working capital needs.

The 30-year old Hyderabad-based company began operations as a machine tool accessories maker which has turned into a Rs100-crore enterprise with a niche in designing, developing and manufacturing special purpose machines (SPMs) and CNC machines for India's automotive and engineering giants.

The company also exports machines, to the machine tool hubs of Europe and Japan. Once the clearances are received, it expects to tap the market in later part of February.

Lokesh Machines was incorporated in 1983 to manufacture SPMs and has machine manufacturing units near Hyderabad.
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