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Reliance Infratel IPO is the next big public issue from the Anil Dirubhai Ambani led ADAG group.  Reliance Infratel IPO will issue over 8.91 crore equity shares of Rs. 5 each, with the price band to be decided later.The company has filed its Draft prospectus with SEBI for Reliance Infratel IPO which is engaged in the tower business and plans to raise around Rs. 5000 to 6000 crore through the public issue by selling only 10% of its post-issue paid capital which puts the overall company valuations around Rs. 60000 crore. It is previously known that the company has sold 5 percent stake in the Reliance Telcom Infrastructure valued at Rs. 1400 crore to a group of institutional investors.

Reliance Infratel IPO Analysis : Company is engaged in the business of Building and operating the telecommunication towers and has over 14,000 towers across India when its was last valued, and the company has set a target to reach 40,000 towers by the end of March 2008. Reliance Infratel is the single largest tower company in India with aggressive expansion plans to add more than 20000 towers in the coming financial year.

Reliance Infratel is the demerged tower business company of Reliance Communications which holds 95 per cent stake in the company . With the upcoming Reliance Infratel IPO, Reliance Communication share holders will get value unlocking of around Rs. 250 to Rs 300 per share. Based on this news the stock price of Reliance Communications soared up to close at Rs. 685 per share up by 11 per cent.

Post Reliance Infratel IPO , the company plans to use the funds raised through the issue for financing the passive infrastructure development of tower sites. Reliance Infratel IPO is to be listed on the BSE and NSE and the company has appointed

More information on the Reliance Infratel IPO Subscription dates and analysis and review of the Reliance Infratel IPO will be posted here soon. Do check back for updates on the Reliance Infratel IPO

Reliance Power IPO Listing Date has been announced by the company and the issue is all set to list on the BSE and NSE exchanges on Monday, 11th of February, 2008. Reliance Power IPO Allotment has been recently completed in record time and the Refunds have already started coming in to the bank accounts as per the registrar. Reliance Power IPO Listing price is expected around Rs. 600 according to most of the analysts. Grey Market Premium for the issue is also quoting around Rs. 180, which indicates that the listing is expected at over Rs. 625. Investors can stay invested in the Reliance Power IPO with medium to long term horizon, as the company is expected to do well in the buzzing power space in the coming years. Good luck for all and can definitely expect that the listing of Reliance Power IPO will bring more joys to the markets. Reliance Power IPO stock code will be updated soon. Do visit us back for Reliance Power IOP listing Details.

Mumbai (PTI): Market regulator SEBI on Thursday raised the limit of cumulative investment in government debt securities by FIIs and their sub accounts by $ 600 million to $ 3.2 billion.

“It has now been decided to further enhance the limit (for FIIs/sub-accounts cumulative investment in Government/Treasury Bills) to $ 3.2 billion,” SEBI said in a circular.

Earlier last year, SEBI had raised this limit to $ 2.6 billion from $ 2 billion.

The market regulator has also decided to treat all investments by FIIs and their sub-accounts in units of debt-oriented mutual funds as corporate debt only.

As such, FII investment in these units would have to prescribe to $ 1.5-billion ceiling, as is stipulated for corporate debt.

Currently, there was no uniformity whether to consider investments by FIIs in debt-oriented mutual funds as debt or equity.

 Source

Mumbai (PTI): The Bombay Stock Exchange benchmark Sensex moved up by 253.45 points in early trade on Friday on emergence of buying by funds at existing lower level.

The 30-share index, Sensex, which lost 110 points on Thursday, bounced back by 253.45 points to 17,902.16 in the first five minutes of trade.

Similarly, the wide-based National Stock Exchange’s index Nifty also rose by 77.90 points to 5,215.35 as most of the heavy-weight stocks like Reliance Industries and Infosys Technology gained substantial ground.

SENSEX CRASHES…

Sensex, Nifty see largest-ever fall

It was nightmare on Dalal Street today as the market saw its second biggest fall since 2006.

Sensex closed at 17605.35, down 1408.35 points and Nifty at 5208.80, down 496.50 points from the previous close.

Source : Rediff

Public Power Issue listing likely in Feb

Mumbai, Jan 19 Reliance Power IPO’s issue price has been fixed at the top end of the price band at Rs 450 per equity share of Rs 10; the issue is likely to get listed some time in February after the allotment of shares to applicants.

On the prospects of retail investors getting allotment of shares, Mr Anil Ambani, Chairman, Reliance Anil Dhirubhai Ambani Group , said, “It will be ensured that each and every applicant is allotted a bare minimum number of shares.”

Retail individual investors bid 14.4 times the 6.84 crore shares offered under the retail quota. Price for retail investors has been fixed at Rs 430 per share, a discount of Rs 20 per share.

“The issue received a record 50 lakh retail applications and the retail investors made a commitment of Rs 44,000 crore, which was enough for the issue to have been fully subscribed by the retail investors itself,” Mr Ambani, told newspersons during a press conference in Mumbai on Saturday.

In terms of total application money deposited in banks, again the Reliance Power IPO set a record by mobilising Rs 1.15 lakh crore, it was stated during a media briefing on the highlights of the public issue.

The largest IPO in terms of money being raised, at Rs 11,700 crore, drew a phenomenal response from both institutional and retail investors by taking the subscription count to 73 times the 22.8 crore shares on offer, as per the final composite data after the closure of the issue on January 18.

Retail investors also had the option of depositing Rs 115 per share at the time of application.

Corporates’ and the high net worth individuals’ bids reached 190 times for 2.28 crore shares on offer. The portion reserved (13.68 crore shares) for qualified institutional buyers including FIIs got subscribed 82 times.

Source: The Hindu Business Line

Business Profile:  

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India. Our 13 power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW) and southern India (4,000 MW). They include six coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has acquired the two ultra mega power projects of 4,000 MW each at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. We intend to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.   Website: http://www.reliancepower.co.in

Reliance Power IPO News

Reliance Power IPO subscribed 5.4 times at Rs 450/sh
Reliance Power IPO has subscribed 5.4 times. All bids are at Rs 450 per share, a higher end of band Rs 405-450…..(Moneycontrol.com)

Reliance Power IPO fully subscribed January 15, 2008 10:20 IST
Anil Ambani group’s $3-billion Reliance [Get Quote] Power IPO on Tuesday got fully subscribed within minutes of its book building process, which started this morning, investment banking source said.…..(Rediff.Com)

Subscribe to Reliance Power IPO for listing gains: Experts
2008-01-14 21:58:38
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band is at Rs 405-450 per share….(Moneycontrol.com)

SAT adjourns hearing on Reliance Power till Jan 21
14 Jan, 2008, 1352 hrs IST, PTI
MUMBAI: Securities Appellate Tribunal on Monday adjourned its hearing till January 21, on complaints against Anil Ambani group’s three-billion dollar Reliance Power IPO, scheduled to hit the market on Monday. ….( Economicstimes.com )

Professional Development Committee has organized a Global CA Networking Summit to facilitate Networking among CAs practicing in India as also abroad. The Summit will enable delegates to meet professionals interested in Networking, exchange views and thoughts, understand the imperatives of Networking and even sign MOUs in the presence of dignitaries from the Ministry, President or Vice President of ICAI.
The Summit will be addressed by eminent professionals like Mr Ashok Wadhwa and Mr Gautam Doshi. Participants may identify firms for networking and set up meeting in advance
Mentoring is the key component of this Summit and besides Mr Ashok Wadhwa and Mr Gautam Doshi, other professionals will provide guidance and mentoring; understand specific issues being faced by members in Networking and advise them on the possible solutions.
Ministries have also indicated initial interest in participating in the Event. Exact details for the participation fee and like are being worked out and details will be posted on ICAI Website

First 30 Overseas delegates registering for the Summit will receive invites from Ministry of Overseas Affairs to participate in the dinner hosted by the Ministry on the eve of the Pravasi Bharatiya Divas at Delhi.
For online registration form, (please select seminar option) ? (to map this URL: http://220.225.137.148/ICAI/Conference.jsp)

By P. S. Kumar - Source : Sify

Accounting is a means to an end and not an end in itself. Accounting follows business. The function of accounting is to ensure that business transactions are recorded in a transparent manner reflecting the economic substance of them. As business transactions get more and more complicated and as newer business models are invented, sometimes it does look as though the existing accounting standards and the accounting theory are not adequate to record those transactions.

In fact, anyone with an accounting bent of mind who reads business journals and newspapers, on coming across these new ventures would immediately think of an accounting framework and its adequacies or otherwise. In the wake of this, it is not uncommon to find that the standards do not address some specific and unique issues related to these ventures and their business models.

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In view of the increasing volume of work and financial activities, the state government is considering to hire the services of chartered accountants (CAs).

This was announced by CM Nitish Kumar on Sunday at the inaugural session of the two-day National Conference on Internal Audit organised by Institute of Chartered Accountants of India (ICAI).

“It is a must to check financial irregularities and stop occurrence of scams originating from state treasury. One such scandal is known as fodder scam that started from treasuries through unchecked financial embezzlement,” said Nitish while inaugurating the conference.

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MUMBAI: As a first move towards making India the first country to adopt accounting standards on carbon emissions, the board of ICAI (The Institute of Chartered Accountants of India) has constituted a group which will come up with the draft guidelines before March 31, 2008.

The group, set up on December 11, will be headed by ICAI accounting standards board chairman, Amarjit Chopra. When contacted, Chopra said the group will look into development of accounting and disclosure practices on emissions trading. The group will study the full scope and relevance of the carbon market from India’s point of view.

ICAI president Sunil Talati said, the group will seek clarity on how corporates need to treat the income earned from carbon credits. “There is a view that carbon credits should be recognised for the purpose of accounting after they have been traded. The group is likely to seek views of corporates like SRF and Coal India.” 

Source: TOI 

NEW DELHI: The Supreme Court said on Tuesday professionals cannot claim depreciation under Section 32 of the Income Tax Act. The Section is applicable to an assessee carrying on business and not to a professional, the apex court said, dismissing an appeal of a chartered accountants firm which had sought deduction under this provision.

The appellant, GK Choksi & Company, an Ahmedabad-based chartered accountants firm, had claimed depreciation for the assessment year 1984-85. During the year, the appellant constructed a residential building for its low-paid employees and claimed initial depreciation of 40% under Section 32(1)(iv) of the Act, amounting to Rs 43,505, on the actual cost of the building that stood at Rs 1,08,757.

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The Government of India has notified December 1, 2007 as the appointed date on which the Government Securities Act, 2006 will come into force. Government Securities Regulations, 2007 will also come into effect from the same date, i.e., December 1, 2007.

It may be recalled that with a view to consolidating and amending the law relating to Government securities and its management by the Reserve Bank of India, the Parliament had enacted the Government Securities Act, 2006 (the Act). The Act received the assent of President of India on August 30, 2006 and was published in the Gazette of India, Extraordinary, Part II – Section I on August 31, 2006 for general information.

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CAs  (Chartered Accountants) in India Close In On MBAs In Salaries,ICAI Campus Placement Sees Jump In Average Package To Rs 6 Lakh

MBA finance grads watch out, CAs are inching closer in terms of pay packages. In the latest round of placements of CA, held last month, average salaries have shot up to almost Rs 6 lakh per annum. The average salary of CAs reached to a new high of Rs 5.94 lakh compared with Rs 4.79 lakh in February-March, 2007. Of late, Institute of Chartered Accountants of India (ICAI) has been working hard to prepare its members to compete with MBA students. The institute has also introduced changes in its curriculum to groom new students as per the changing scenario. In his recent message to its members, ICAI president Sunil Talati said, “I must say that the new breed of young students are so smart and intelligent that the number of students passing out in final examination and becoming our members is increasing every year. This is a good sign. It is not that the examination papers are easy, or results are liberal; it is in fact a sign that new young intelligent and talented students are joining our profession appreciating the new curriculum.”

The campus placements were not limited to about 100-odd students like typical B-schools. There were as many as 1,151 students recruited out of 1,823 students who participated in the September-October campus placements. There were 101 companies comprising 252 interview panels participated at 19 centres in campus interviews, organised by ICAI. “A number of students could not get the job profile and company of their choice since we do not allow students to appear in more than six interviews. However, they will be able to find the suitable opportunity through our online platform from where headhunters can access to our data base,” said ICAI chairman of committee for members in industry Uttam Prakash Agarwal. Not only banks and financial institutes but a number of IT, energy, telecom, engineering, FMCG and aviation companies also participated.
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The outcome of the review plea will have a bearing on the more than 100 back offices of multinationals

Of foreign companies with India?s income tax (I-T) department filing a review petition earlier in the week in the Supreme Court urging it to revisit its own decision in July.

In that decision, the court had said US investment bank Morgan Stanley would not have to pay tax in India on global income earned by it on account of the firm?s captive back-office here.

The review petition said the July decision ?appears to be an error on the face of the record? as it did not consider the factors that suggest Morgan Stanley?s Indian subsidiary Morgan Stanley Advantage Services Pvt. Ltd?s (MSAS) contributed to profits of the parent firm.
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Mumbai (PTI): The benchmark Sensex recovered a major part of its initial losses, but was still in the negative terrain on selling at higher levels amid weak global cues.

The Bombay Stock Exchange (BSE) 30-share barometer fell to a low of 19,768.98 immediately after resumption of dealings, down by over 160 points over Tuesday’s close of 19,929.06.

However, it recovered partly to 19,870.74 at 10.30 am, still showing a fall of 58.32 points.

The index had surged by a record 893.58 points or 4.69 per cent on Tuesday.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) was quoted at 5,948.20, a rise of 10.30 points over the previous close of 5,937.90.

Besides Nikkei, all other Asian indices were trading in the red on Thursday morning on the back of overnight fall on Wall Street.

Dealers attributed the loss on the Sensex to selling at higher levels and expected consolidation in a range of 18,000 and 21,000 level.

Foreign Institutional Investors (FIIs) bought shares worth Rs 163 crore (provisional) on November 14 and reportedly they were net sellers to the tune of Rs 1,951 crore during this month so far.

Bharti Airtel, Grasim, Hindalco, Maruti, NTPC, ONGC, REL, SBI, Tata Motors and Tata Steel were quoted firm, while RIL, BHEL, HDFC, HDFC Bank, ICICI Bank, Infosys Tech, Satyam Computer, TCS and Wipro showed losses.

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The Fed cut rates, and India appears to have responded by raising the limit on MSS issuance by RBI. Let’s chalk out the rough fiscal costs –

• Each month with over $10 billion of MSS issuance uses up Rs.40,000 crore of bond issuance. Roughly speaking, assuming a net cost of 4%, a stock of MSS of Rs.250,000 crore runs up a tidy cost of Rs.10,000 crore a year.
• In addition, assuming India has roughly $125 billion in USD assets, each 1% depreciation of the USD is a cost of roughly $1.25 billion or roughly Rs.5,000 crore on account of depreciation of the reserves portfolio.

The government on Thursday approved refund of value added tax (VAT) it had collected from ndustries in two union territories — Daman and Diu, and Dadar and Nagar Haveli, which enjoy tax holiday.

“The Union Cabinet gave its approval to the promulgation of the Daman and Diu VAT (Amendment) Regulation 2007 and the Dadra and Nagar Haveli VAT (Amendment) Regulation, 2007 by the President under article 240 of the Constitution,” Information and Broadcasting Minister Priyaranjan Dasmunsi said.

He said the measure will enable the government to refund the net negative tax to the assesses faster and also simplify the procedure.

The industrial units in these UTs already enjoy tax holiday under the government’s scheme to encourage new investment in industrially underdevelopment regions.

“After the implementation of VAT in 2003, the units were forced to pay 4-12.5 per cent tax on raw material bought from the market, but they could not recover the same as they sold their goods at zero duty rate,” said a Finance Ministry official.

He said after the Cabinet decision will enable the companies to get refund of these taxes. A large number of electronic and FMCG manufacturing units have been set up in these tax havens.

The West Bengal Government may review the existing luxury tax rates in the State after discussions with the State finance department, according to the Chief Minister, Mr Buddhadeb Bhattacharjee.

“The luxury tax on hotels and restaurants is creating problems for hoteliers and restaurant owners in the State. We have to take a balanced view since the hospitality industry creates enormous job opportunities. I need to talk with my Finance Minister (Mr Asim Dasgupta) about this,” Mr Bhattacharjee said, while speaking at the inaugural session of the 43rd Annual Convention of Federation of Hotel and Restaurant Associations of India (FHRAI) here on Friday.

Mr Rajesh Mishra, President of FHRAI, in his presidential address had proposed that the State Government withdraw luxury tax to boost development of hotels and restaurants.

“Earlier luxury tax was restricted to Kolkata only. But it is now applicable across all the districts of West Bengal. Currently, luxury tax is charged at the rate of 10 per cent on (room) tariff exceeding Rs 500,” Mr Mishra said.

According to Mr Bhattacharjee, the Central Government should take initiatives for developing tourism infrastructure across the country. “The Government should spend more on tourism infrastructure projects since tourism and hospitality industry create maximum job opportunities,” he said.

In West Bengal, the State has identified new areas for growth of tourism.

“We have identified certain areas, including development of tea tourism in Jalpaiguri and Darjeeling districts, and eco-tourism in the Sundarbans,” Mr Bhattacharjee said.

Mumbai: RBI governor Reddy expressed concerns regarding private equity flows, while dwelling on the issue of setting up a currency stabilisation fund and sovereign wealth fund.

“We have been seeking comfort in the nature of investment associated with capital inflows through hedge fund channels and participatory notes. Similar issues could also be relevant to private equity flows,” said governor, Y V Reddy, in his address at the golden jubilee function of Foreign Exchange Dealers Association of India (FEDAI) today.

The objective of establishing a stabilisation fund is to smoothen revenue flows arising out of volatility in commodity export proceeds. A wealth fund is generally created amid current account surpluses by using a part of the foreign currency assets.

Reddy said that a large part of the capital flows into India were portfolio investments, while a significant part of foreign direct investment (FDI) was in the form of private equity and geared towards brownfield projects rather than greenfield investments.

So, capital account shocks, which would be independent of the country’s economic fundamentals or domestic macroeconomic environment, cannot be fully ruled out, he added.

India witnessed FDI inflows of $19.53 billion and portfolio investments of $7.3 billion in 2006-07. In his concluding remarks, the RBI governor stressed on the increasingly important role of stabilisation funds and wealth funds in global capital flows.

The operations of these funds have generated considerable interest among the policy makers and central banks. India has a stake in the on-going debate by virtue of its increasing importance in the global capital flows.

While it is essential to recognize the public sector nature of the stabilisation and wealth funds investing in India, it is also useful to study the evolving global practices in the approach of investee countries.

Source & Courtesy