Nitin Negi, a college student in Ghaziabad near Delhi, has a tune by Shakira, the Colombian singer, as his mobile phone ringtone.
The song “Waka Waka”, the anthem of the football World Cup in South Africa, was a big hit in India and was widely distributed by Bharti Airtel, the country’s largest mobile network.
“I don’t know much about the Commonwealth Games,” Mr Negi said. “But if you ask me about Fifa and football I can really tell you about something.”
With just over two weeks before the start of the Commonwealth Games in India’s capital, its own official song has proved less catchy. AR Rahman, the Indian composer known internationally for his work on the Oscar-winning film Slumdog Millionaire, has been forced to redo the theme he wrote because it was not as energetic as Shakira’s World Cup tune.
A panel of government ministers, appointed by Manmohan Singh, prime minister, to try to bring awry preparations for the games back on track, have approved a new version. An accompanying video, featuring the nation’s sporting heroes performing to the soundtrack, is expected to be released in coming days.
The official stamp of approval was only given after “Oh yaaro, yeh India bula liya” (Friends, we have called people to India) was tightened to give it more punch, and has had next to no airing on the country’s radio and television stations.
As athletes from 71 countries start to arrive in Delhi next week, the theme tune is not alone in having a hasty overhaul. A scurry of activity is under way to complete stadiums, improve the city’s street architecture and test ambitious traffic control systems. The latter entails the dedication of lanes on the capital’s road to the exclusive use of games registered users.
Officials such as Mike Fennell, the head of the Commonwealth Games Federation, have repeatedly warned that time was Delhi’s enemy in its preparations. Alongside a nail-biting finish, preparations have also been dogged by allegations of corruption, mismanagement and poor leadership leaving despairing senior Indian officials doubting the wisdom of the world’s largest democracy holding large sporting events.
In the final rush, television advertisements are exhorting citizen volunteers to step forward to help in initiatives such as a last ditch “Clean Delhi” drive. Organisers have even turned to the vuvuzela, a horn popularised at the World Cup, as part of the official merchandise to drum up African-like enthusiasm.
Delhi residents are braced for disruption. Some are preparing to leave the city for the duration of the event. Schools, colleges and markets will close.
In the absence of a stirring musical anthem, MS Gill, the sports minister, is sounding a little more shrill than either Shakira or Mr Rahman as he does his best to drown out the sceptics. On Friday, he described the city as on a “war footing” to prevent the spread of an outbreak of mosquito-borne Dengue fever and assured that 100,000 security personnel would guarantee “foolproof” protection from terror attack.
Saturday, September 18, 2010
Private equity groups eye stake in Hero Honda
Two US private equity groups are eyeing a strategic stake in India-based Hero Honda – the world’s largest motorcycles maker – as India’s Hero and Japan’s Honda seek to end their joint venture, people familiar with the matter said.
TPG Capital and Carlyle have expressed interest in teaming up with Hero’s Munjal family to buy out Honda’s 26 per cent stake in Hero Honda.
But the deal hinges on the two partners finding a consensual way to end their venture, another source said.
Another person familiar with the matter said that the Japanese group was looking for a high offer to quit the venture.
Hero Honda, which was set up in 1984, has a market capitalisation of about Rs348.5bn ($7.6bn), valuing Honda’s stake at nearly $2bn.
“Hero will need a strategic investor to complete the deal, they don’t have the cash to buy [the Honda stake] on their own,” said an Indian private equity executive who did not want to be named.
The volume of private equity deals in Asia in the first six months of this year has reached more than $11bn, almost treble last year’s volume during the same period and the highest seen since 2008, according to figures from Dealogic, the data company.
In particular India’s fast-growing market has attracted several buy-out groups sitting on large piles of cash, said V. Jayasankar, head of private equity at Kotak Investment Banking, who estimates that the total volume of private equity deals in the country this year could top $8bn.
Honda, Japan’s second-largest automaker, and the Munjal family have been in talks to end their partnership for several months, people close to the group said.
Honda wants to exit Hero Honda as it seeks to build up its 100 per cent owned Indian motorcycle subsidiary, which made 1.55m units last year, at the expense of the larger joint venture, which made 4.9m units.
It is believed that the Delhi-based Munjal family, which owns Hero, wants to end the joint venture because of disagreements with the Japanese group over expansion plans.
Hero Honda’s three existing Indian factories are already operating at full capacity, cranking out around 400,000 two-wheelers every month.
Waiting periods for the most popular products are growing and executives at the company are carrying out feasibility studies and scouting potential locations in 10 states across India, for building a fourth factory.
“The Munjals want Honda out of the business to expand their operations,” said one person close to the deal.
TPG Capital and Carlyle have expressed interest in teaming up with Hero’s Munjal family to buy out Honda’s 26 per cent stake in Hero Honda.
But the deal hinges on the two partners finding a consensual way to end their venture, another source said.
Another person familiar with the matter said that the Japanese group was looking for a high offer to quit the venture.
Hero Honda, which was set up in 1984, has a market capitalisation of about Rs348.5bn ($7.6bn), valuing Honda’s stake at nearly $2bn.
“Hero will need a strategic investor to complete the deal, they don’t have the cash to buy [the Honda stake] on their own,” said an Indian private equity executive who did not want to be named.
The volume of private equity deals in Asia in the first six months of this year has reached more than $11bn, almost treble last year’s volume during the same period and the highest seen since 2008, according to figures from Dealogic, the data company.
In particular India’s fast-growing market has attracted several buy-out groups sitting on large piles of cash, said V. Jayasankar, head of private equity at Kotak Investment Banking, who estimates that the total volume of private equity deals in the country this year could top $8bn.
Honda, Japan’s second-largest automaker, and the Munjal family have been in talks to end their partnership for several months, people close to the group said.
Honda wants to exit Hero Honda as it seeks to build up its 100 per cent owned Indian motorcycle subsidiary, which made 1.55m units last year, at the expense of the larger joint venture, which made 4.9m units.
It is believed that the Delhi-based Munjal family, which owns Hero, wants to end the joint venture because of disagreements with the Japanese group over expansion plans.
Hero Honda’s three existing Indian factories are already operating at full capacity, cranking out around 400,000 two-wheelers every month.
Waiting periods for the most popular products are growing and executives at the company are carrying out feasibility studies and scouting potential locations in 10 states across India, for building a fourth factory.
“The Munjals want Honda out of the business to expand their operations,” said one person close to the deal.
Asian Currencies Rise for a Third Week, Led by India's Rupee, on Inflows
Asian currencies strengthened for a third week, led by India’s rupee, as global investors pumped more funds into the world’s fastest-growing economies.
The Bloomberg-JPMorgan Asia Dollar Index climbed to its highest in more than two years month and the MSCI Asia Pacific Index of shares advanced as stock markets in India, South Korea and Taiwan each attracted more than $1 billion from abroad. China’s yuan had its best week since May 2008 as the U.S. called for faster appreciation and government reports showed pickups in industrial output, retail sales and inflation.
“The trend remains for Asian currencies to strengthen,” said Tohru Nishihama, economist at Dai-ichi Life Research Institute Inc. in Tokyo. “Funds will continue to flow into the region as the economic growth outlook in Asia is solid and stocks in the region have been rising.”
The rupee appreciated 1.3 percent this week to 45.845 per dollar in Mumbai, according to data compiled by Bloomberg. The yuan was 0.7 percent stronger at 6.7235, the Korean won climbed 0.4 percent to 1,160.70 and Taiwan’s dollar advanced 0.5 percent to NT$31.739. Thailand’s baht rose 0.4 percent to 30.72, a seventh straight weekly gain.
The Asia Dollar Index, which tracks the region’s 10 most used currencies excluding the yen, added 0.3 percent and the MSCI Asia Pacific Index climbed 2.2 percent. Developing economies in Asia will expand 9.2 percent in 2010, outpacing growth of 2.6 percent in advanced countries, the International Monetary Fund forecast in July.
Stock Inflows
Equity funds investing in Asia excluding Japan recorded the highest inflows in seven weeks during the period through Sept. 15, according to EPFR Global. The trend was “underpinned by renewed faith in the growth stories of the region’s heavyweights, China and India,” the research firm said.
India’s central bank this week increased interest rates for the fifth time in 2010 and Chinese Premier Wen Jiabao said his nation’s economy, the world’s second-largest, was in “good shape.” U.S. Treasury Secretary Timothy F. Geithner called for “significant” gains in the yuan, which yesterday touched the strongest level since official and market exchange rates were unified at the end of 1993.
The Philippine peso dropped 0.2 percent this week to 44.188 per dollar after central bank Governor Amando Tetangco said on Sept. 14 that policy makers were monitoring gains and signaled action may be taken to curb volatility. Japan unilaterally sold the yen on Sept. 15 in an attempt to halt appreciation after the currency climbed to a 15-year high versus the dollar.
“There’s a possibility that the rest of Asia will try to do the same to keep their exports competitive,” said Mohd Zaki Talib, a currency trader at RHB Bank Bhd. in Kuala Lumpur.
Malaysia’s ringgit rose 0.2 percent this week to 3.1020 per dollar, having reached a 13-year high of 3.0969 on Sept. 13. The Singapore dollar appreciated 0.5 percent to S$1.3340, a fifth straight weekly gain.
The Bloomberg-JPMorgan Asia Dollar Index climbed to its highest in more than two years month and the MSCI Asia Pacific Index of shares advanced as stock markets in India, South Korea and Taiwan each attracted more than $1 billion from abroad. China’s yuan had its best week since May 2008 as the U.S. called for faster appreciation and government reports showed pickups in industrial output, retail sales and inflation.
“The trend remains for Asian currencies to strengthen,” said Tohru Nishihama, economist at Dai-ichi Life Research Institute Inc. in Tokyo. “Funds will continue to flow into the region as the economic growth outlook in Asia is solid and stocks in the region have been rising.”
The rupee appreciated 1.3 percent this week to 45.845 per dollar in Mumbai, according to data compiled by Bloomberg. The yuan was 0.7 percent stronger at 6.7235, the Korean won climbed 0.4 percent to 1,160.70 and Taiwan’s dollar advanced 0.5 percent to NT$31.739. Thailand’s baht rose 0.4 percent to 30.72, a seventh straight weekly gain.
The Asia Dollar Index, which tracks the region’s 10 most used currencies excluding the yen, added 0.3 percent and the MSCI Asia Pacific Index climbed 2.2 percent. Developing economies in Asia will expand 9.2 percent in 2010, outpacing growth of 2.6 percent in advanced countries, the International Monetary Fund forecast in July.
Stock Inflows
Equity funds investing in Asia excluding Japan recorded the highest inflows in seven weeks during the period through Sept. 15, according to EPFR Global. The trend was “underpinned by renewed faith in the growth stories of the region’s heavyweights, China and India,” the research firm said.
India’s central bank this week increased interest rates for the fifth time in 2010 and Chinese Premier Wen Jiabao said his nation’s economy, the world’s second-largest, was in “good shape.” U.S. Treasury Secretary Timothy F. Geithner called for “significant” gains in the yuan, which yesterday touched the strongest level since official and market exchange rates were unified at the end of 1993.
The Philippine peso dropped 0.2 percent this week to 44.188 per dollar after central bank Governor Amando Tetangco said on Sept. 14 that policy makers were monitoring gains and signaled action may be taken to curb volatility. Japan unilaterally sold the yen on Sept. 15 in an attempt to halt appreciation after the currency climbed to a 15-year high versus the dollar.
“There’s a possibility that the rest of Asia will try to do the same to keep their exports competitive,” said Mohd Zaki Talib, a currency trader at RHB Bank Bhd. in Kuala Lumpur.
Malaysia’s ringgit rose 0.2 percent this week to 3.1020 per dollar, having reached a 13-year high of 3.0969 on Sept. 13. The Singapore dollar appreciated 0.5 percent to S$1.3340, a fifth straight weekly gain.
Toyota Settles Over California Deaths
Toyota has reached an out-of-court settlement with relatives of a family killed when the Lexus sedan they were driving sped out of control and crashed, an accident that put a national spotlight on the sudden acceleration problems that later prompted the automaker to recall millions of vehicles.
Toyota confirmed the settlement Saturday in a statement but did not provide the amount of the settlement or any other details.
“Through mutual respect and cooperation we were able to resolve this matter without the need for litigation,” the statement said.
The crash, which happened in August 2009 near San Diego, was documented with gripping evidence that drew nationwide attention. A backseat passenger called 911 to say that the driver, an off-duty California Highway Patrol officer named Mark Saylor, was unable to stop the 2009 Lexus E350, which went as fast as 120 miles per hour on a freeway before hitting another vehicle and landing in a ravine.
Mr. Saylor, 45; his wife, Cleofe, 45; and their 13-year-old daughter Mahala died, along with Cleofe Saylor’s brother, Chris Lastrella, 39. It was Mr. Lastrella who told the 911 operator that the car’s pedal was stuck and ended the call by saying, “Hold on and pray.” The car was on loan from the nearby Bob Baker Lexus dealership while Mr. Saylor’s car was being repaired.
The settlement, according to Toyota’s statement, resolves product liability claims by the Saylor and Lastrella families against Toyota and the dealership. The families have separate claims against the dealership that were not covered.
Two months after the crash, Toyota began a recall that eventually covered 5.4 million vehicles globally in which the automaker said the driver-side floor mat could trap the accelerator pedal. It later recalled 4.5 million vehicles in which the pedals themselves were determined to be defective. Some vehicles were covered by both recalls, for a total of about eight million vehicles.
In February, Toyota’s chief executive, Akio Toyoda, apologized to Congress and to the Saylors’ family, saying he would “do everything in my power to ensure such a tragedy never happens again.”
The recalls hurt Toyota’s sales and damaged its reputation for building high-quality, reliable vehicles. Thousands of complaints poured in to federal regulators from drivers who said their Toyota-made vehicles accelerated suddenly. In April, the government fined Toyota a record $16.4 million for waiting too long to initiate a recall. The complaints are tied to at least 93 deaths.
Toyota is continuing to defend itself against class-action lawsuits filed by Toyota owners and relatives of people who died in crashes alleged to have resulted from sudden acceleration. The company could face billions of dollars in liabilities if it loses the cases.
Preliminary results released in August from the National Highway Traffic Safety Administration’s investigation into the sudden-acceleration complaints revealed that in many of the crashes the vehicles’ on-board data recorders showed no evidence that the drivers had used the brakes. The findings suggest that some drivers were mistakenly pressing on the accelerator pedal instead of the brake.
Toyota confirmed the settlement Saturday in a statement but did not provide the amount of the settlement or any other details.
“Through mutual respect and cooperation we were able to resolve this matter without the need for litigation,” the statement said.
The crash, which happened in August 2009 near San Diego, was documented with gripping evidence that drew nationwide attention. A backseat passenger called 911 to say that the driver, an off-duty California Highway Patrol officer named Mark Saylor, was unable to stop the 2009 Lexus E350, which went as fast as 120 miles per hour on a freeway before hitting another vehicle and landing in a ravine.
Mr. Saylor, 45; his wife, Cleofe, 45; and their 13-year-old daughter Mahala died, along with Cleofe Saylor’s brother, Chris Lastrella, 39. It was Mr. Lastrella who told the 911 operator that the car’s pedal was stuck and ended the call by saying, “Hold on and pray.” The car was on loan from the nearby Bob Baker Lexus dealership while Mr. Saylor’s car was being repaired.
The settlement, according to Toyota’s statement, resolves product liability claims by the Saylor and Lastrella families against Toyota and the dealership. The families have separate claims against the dealership that were not covered.
Two months after the crash, Toyota began a recall that eventually covered 5.4 million vehicles globally in which the automaker said the driver-side floor mat could trap the accelerator pedal. It later recalled 4.5 million vehicles in which the pedals themselves were determined to be defective. Some vehicles were covered by both recalls, for a total of about eight million vehicles.
In February, Toyota’s chief executive, Akio Toyoda, apologized to Congress and to the Saylors’ family, saying he would “do everything in my power to ensure such a tragedy never happens again.”
The recalls hurt Toyota’s sales and damaged its reputation for building high-quality, reliable vehicles. Thousands of complaints poured in to federal regulators from drivers who said their Toyota-made vehicles accelerated suddenly. In April, the government fined Toyota a record $16.4 million for waiting too long to initiate a recall. The complaints are tied to at least 93 deaths.
Toyota is continuing to defend itself against class-action lawsuits filed by Toyota owners and relatives of people who died in crashes alleged to have resulted from sudden acceleration. The company could face billions of dollars in liabilities if it loses the cases.
Preliminary results released in August from the National Highway Traffic Safety Administration’s investigation into the sudden-acceleration complaints revealed that in many of the crashes the vehicles’ on-board data recorders showed no evidence that the drivers had used the brakes. The findings suggest that some drivers were mistakenly pressing on the accelerator pedal instead of the brake.
Friday, September 17, 2010
Japan’s Bonds Rise Most This Year on Kan Victory, Intervention
Sept. 18 (Bloomberg) -- Japanese bonds completed the biggest weekly advance in 10 months as concern eased that a new government would increase debt sales and amid speculation funds created by currency intervention would flow into debt securities.
Benchmark 10-year yields touched a two-week low after Prime Minister Naoto Kan was re-elected as the head of the ruling party by defeating rival Ichiro Ozawa, who had advocated increased government spending. The Bank of Japan refrained from removing funds in the financial system after selling yen for the first time since 2004, leaving deposits held by institutions there at the highest level this month.
“Kan’s re-election will likely bring a sense of ease over Japan’s fiscal problem, prompting demand for bonds,” said Yasunari Ueno, chief market economist at Tokyo-based Mizuho Securities Co., a unit of Japan’s second-largest bank.
The yield on the benchmark 10-year security dropped eight basis points to 1.07 percent in Tokyo in the five days ended Sept. 17, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. That’s the biggest weekly slide since the period ended Nov. 13. The 1 percent bond due in September 2020 added 0.713 yen to 99.368 yen.
Ten-year bond futures for December delivery rose 0.89 to 142.12 at the Tokyo Stock Exchange.
Kan retained his job after defeating Ozawa, a former secretary general of the ruling Democratic Party of Japan. Ozawa, who heads the DPJ’s largest faction, had said the government may have to issue more bonds for spending measures to boost the economy.
Okada Appointment
Katsuya Okada, a former foreign minister, was named the DPJ’s new secretary-general, the No. 2 spot in the party.
“Okada is distant from Ozawa, and his appointment signifies Ozawa’s dissipating influence over the ruling party,” Shinji Nomura, chief debt strategist at Tokyo-based Nikko Cordial Securities Inc., wrote in a report. “That has reduced concern even further that bonds will fall.”
Japan unilaterally sold the yen on Sept. 15 after it climbed to a 15-year high of 82.88 per dollar. BOJ board member Tadao Noda said the central bank will use intervention funds to provide liquidity.
“Unsterilized intervention increases money in the market, so it’s effectively monetary easing,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $65 billion. “With more money flowing into the market, both bonds and stocks typically go up.”
Sterilization refers to a situation where central banks seek to neutralize the impact of currency sales by draining funds from the market through bill auctions.
Benchmark 10-year yields touched a two-week low after Prime Minister Naoto Kan was re-elected as the head of the ruling party by defeating rival Ichiro Ozawa, who had advocated increased government spending. The Bank of Japan refrained from removing funds in the financial system after selling yen for the first time since 2004, leaving deposits held by institutions there at the highest level this month.
“Kan’s re-election will likely bring a sense of ease over Japan’s fiscal problem, prompting demand for bonds,” said Yasunari Ueno, chief market economist at Tokyo-based Mizuho Securities Co., a unit of Japan’s second-largest bank.
The yield on the benchmark 10-year security dropped eight basis points to 1.07 percent in Tokyo in the five days ended Sept. 17, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. That’s the biggest weekly slide since the period ended Nov. 13. The 1 percent bond due in September 2020 added 0.713 yen to 99.368 yen.
Ten-year bond futures for December delivery rose 0.89 to 142.12 at the Tokyo Stock Exchange.
Kan retained his job after defeating Ozawa, a former secretary general of the ruling Democratic Party of Japan. Ozawa, who heads the DPJ’s largest faction, had said the government may have to issue more bonds for spending measures to boost the economy.
Okada Appointment
Katsuya Okada, a former foreign minister, was named the DPJ’s new secretary-general, the No. 2 spot in the party.
“Okada is distant from Ozawa, and his appointment signifies Ozawa’s dissipating influence over the ruling party,” Shinji Nomura, chief debt strategist at Tokyo-based Nikko Cordial Securities Inc., wrote in a report. “That has reduced concern even further that bonds will fall.”
Japan unilaterally sold the yen on Sept. 15 after it climbed to a 15-year high of 82.88 per dollar. BOJ board member Tadao Noda said the central bank will use intervention funds to provide liquidity.
“Unsterilized intervention increases money in the market, so it’s effectively monetary easing,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $65 billion. “With more money flowing into the market, both bonds and stocks typically go up.”
Sterilization refers to a situation where central banks seek to neutralize the impact of currency sales by draining funds from the market through bill auctions.
India moves towards modernising futures trading
The prospect of India’s commodities exchanges trading options, a move intended to boost liquidity in markets and stabilise prices, has taken a step forward after the cabinet approved proposed legislation.
The government said on Thursday it would introduce legislation in parliament that would permit the trading of options in goods and in commodity derivatives. It would also give the Forward Markets Commission, which regulates four national exchanges and 16 regional ones, greater autonomy and powers to regulate the market.
“New products like options will be allowed in the commodity market,” a statement issued by the government said after the cabinet, headed by prime minister Manmohan Singh, approved amendments to a regulatory bill. “This will benefit various stakeholders including the farmers.”
The bill still has to clear parliament, where issues relating to agricultural commodities can often face stiff debate. The amendment relating to forward contracts had first been introduced to parliament four years ago. In the past there has been widespread mistrust that futures inflate prices, a sensitive issue at a time of high food inflation and low agricultural productivity.
India first allowed futures contracts in commodities trading in 2003. While New Delhi is taking further steps to modernise its markets, restrictions remain in place banning futures in some agricultural commodities, such as rice, for fear that they might encourage speculation and higher food prices. A ban on wheat futures was lifted last year; restrictions on sugar futures are expected to be lifted next month.
Analysts tracking commodities in India said the changes, if passed by parliament, would professionalise the market, improve its regulation and reduce price speculation. The reforms also promise to unlock greater private investment in India’s commodity exchanges by paving the way for the demutualisation of existing commodities exchanges.
Last month, the FMC said the Reliance Exchange Net, owned by Anil Ambani, planned to buy a stake in the Indian Commodity Exchange, ICEX, a metals bourse launched last year, from the Indiabulls group. Jaypee Capital, a Mumbai-based financial services company, has also expressed a desire to buy 26 per cent in the National Commodity and Derivatives Exchange (NCDEX), an agri-bourse.
The FMC regulates commodity futures trading on four national and 16 regional bourses.
“The government’s move will have a significant and positive impact for the commodities trading community,” said Amar Singh, head of commodities research at Aditya Birla Money, a broking firm in Mumbai.
“By opening up the trading of commodity options, we will see more professional players, like banks and mutual funds, enter the market.”
A senior commodities analyst at Angel Broking, a Mumbai-based stockbroker, said farmers would also benefit from the new rules.
“The move by the union cabinet will be appreciated by farmers as it will make life easier for them to predict prices and manage their risk better,” he said.
The government said on Thursday it would introduce legislation in parliament that would permit the trading of options in goods and in commodity derivatives. It would also give the Forward Markets Commission, which regulates four national exchanges and 16 regional ones, greater autonomy and powers to regulate the market.
“New products like options will be allowed in the commodity market,” a statement issued by the government said after the cabinet, headed by prime minister Manmohan Singh, approved amendments to a regulatory bill. “This will benefit various stakeholders including the farmers.”
The bill still has to clear parliament, where issues relating to agricultural commodities can often face stiff debate. The amendment relating to forward contracts had first been introduced to parliament four years ago. In the past there has been widespread mistrust that futures inflate prices, a sensitive issue at a time of high food inflation and low agricultural productivity.
India first allowed futures contracts in commodities trading in 2003. While New Delhi is taking further steps to modernise its markets, restrictions remain in place banning futures in some agricultural commodities, such as rice, for fear that they might encourage speculation and higher food prices. A ban on wheat futures was lifted last year; restrictions on sugar futures are expected to be lifted next month.
Analysts tracking commodities in India said the changes, if passed by parliament, would professionalise the market, improve its regulation and reduce price speculation. The reforms also promise to unlock greater private investment in India’s commodity exchanges by paving the way for the demutualisation of existing commodities exchanges.
Last month, the FMC said the Reliance Exchange Net, owned by Anil Ambani, planned to buy a stake in the Indian Commodity Exchange, ICEX, a metals bourse launched last year, from the Indiabulls group. Jaypee Capital, a Mumbai-based financial services company, has also expressed a desire to buy 26 per cent in the National Commodity and Derivatives Exchange (NCDEX), an agri-bourse.
The FMC regulates commodity futures trading on four national and 16 regional bourses.
“The government’s move will have a significant and positive impact for the commodities trading community,” said Amar Singh, head of commodities research at Aditya Birla Money, a broking firm in Mumbai.
“By opening up the trading of commodity options, we will see more professional players, like banks and mutual funds, enter the market.”
A senior commodities analyst at Angel Broking, a Mumbai-based stockbroker, said farmers would also benefit from the new rules.
“The move by the union cabinet will be appreciated by farmers as it will make life easier for them to predict prices and manage their risk better,” he said.
IPO marks milestone for Indian ‘cram’ schools
Career Point Infosytems, a top Indian “cram” school, has launched an initial public offering, the first public capital-raising from the booming coaching centre industry, which caters to more than 1m young Indians vying for admission to top universities each year.
Founded in 1993 in a garage in the small Rajasthani town of Kota, Career Point had revenues of Rs658m ($14.3m) and profits of Rs177m last year from more than 31,000 students enrolled in its various test preparation classes.
The company – founded by Pramod Maheshwari, a graduate of the prestigious Indian Institute of Technology Delhi – aims to raise $25m for about 20 per cent of the equity, in a deal that would value the firm at about Rs5.6bn.
The funds will be used to expand operations, including building a residential campus for up to 3,000 of its students in Kota, now India’s national cram school hub.
“Our business is to equip them with knowledge and expertise to write the tests,” Mr Maheshawari told the Financial Times from Mumbai, where the IPO was launched on Thursday. “We believe our services definitely add value to the students.”
With up to 1m young Indians competing for just a few thousand places in top state-run engineering, business and medical colleges every year, coaching centres that prepare students for the exams have emerged as lucrative businesses across India.
The main focus of the schools is preparing students for the IIT-JEE, the six-hour admission test of the Indian Institutes of Technology, the country’s top engineering colleges. Last year, around 470,000 young people competed for just 10,000 places in one of the country’s 15 IITs.
Top cram schools such as Career Point, and rivals Kota-based Bansal’s Classes and New Delhi-based FIT-JEE, charge up to Rs75,000 a year for gruelling tuition classes of up to five hours a day, and regular practice tests.
Career Point’s Kota coaching centre – which draws students from across the country – has classrooms, computer laboratories where students can replay lectures on any topic, and a long row of “problem-solving desks,” where students can approach faculty members at any time with academic questions.
The lucrative cram school businesses have attracted the attention of private equity. Franklin Templeton India’s private equity arm last year invested nearly $11m in Career Point, which has also been backed by N.S. Raghavan, the co-founder of Infosys.
Mumbai-based Matrix Partners India has invested around $21m in Career Point’s rival test preparation company FIIT-JEE, which is also expected to list on the Bombay Stock Exchange soon.
Founded in 1993 in a garage in the small Rajasthani town of Kota, Career Point had revenues of Rs658m ($14.3m) and profits of Rs177m last year from more than 31,000 students enrolled in its various test preparation classes.
The company – founded by Pramod Maheshwari, a graduate of the prestigious Indian Institute of Technology Delhi – aims to raise $25m for about 20 per cent of the equity, in a deal that would value the firm at about Rs5.6bn.
The funds will be used to expand operations, including building a residential campus for up to 3,000 of its students in Kota, now India’s national cram school hub.
“Our business is to equip them with knowledge and expertise to write the tests,” Mr Maheshawari told the Financial Times from Mumbai, where the IPO was launched on Thursday. “We believe our services definitely add value to the students.”
With up to 1m young Indians competing for just a few thousand places in top state-run engineering, business and medical colleges every year, coaching centres that prepare students for the exams have emerged as lucrative businesses across India.
The main focus of the schools is preparing students for the IIT-JEE, the six-hour admission test of the Indian Institutes of Technology, the country’s top engineering colleges. Last year, around 470,000 young people competed for just 10,000 places in one of the country’s 15 IITs.
Top cram schools such as Career Point, and rivals Kota-based Bansal’s Classes and New Delhi-based FIT-JEE, charge up to Rs75,000 a year for gruelling tuition classes of up to five hours a day, and regular practice tests.
Career Point’s Kota coaching centre – which draws students from across the country – has classrooms, computer laboratories where students can replay lectures on any topic, and a long row of “problem-solving desks,” where students can approach faculty members at any time with academic questions.
The lucrative cram school businesses have attracted the attention of private equity. Franklin Templeton India’s private equity arm last year invested nearly $11m in Career Point, which has also been backed by N.S. Raghavan, the co-founder of Infosys.
Mumbai-based Matrix Partners India has invested around $21m in Career Point’s rival test preparation company FIIT-JEE, which is also expected to list on the Bombay Stock Exchange soon.
Subscribe to:
Posts (Atom)
Posts
