The joint venture company will serve the Indian heavy engineering industry, supplying both new build gearboxes and aftermarket services
Manufacturer of automotive components, Bharat Forge (BFL) through its wholly owned subsidiary, BF Infrastructure Ventures (BFIVL) has signed a shareholders agreement with David Brown System India (Holdings), part of David Brown Group, manufacturer of gearing products to form a joint venture company in India.
The JV company will be named ‘David Brown Bharat Forge Gear Systems India’ and will serve the Indian heavy engineering industry, supplying both new build gearboxes and aftermarket services to high demand sectors including power, mining, defence, wind, rail and steel.
Initially, David Brown Bharat Forge Gear Systems India is intended to be operational from Bharat Forge’s current facilities. However, by the middle of 2012, it is intended to have a site for gear box assembly and testing. Further, the JV company intends to set-up two service centres in Bangalore and Kolkata by the end of 2011. Additional locations for service centres in Delhi and Hyderabad are being planned by the end of 2013. These service centres will be designed to world class standards, providing rapid aftermarket service and support to key industries.
On Monday, Bharat Forge ended 1.72% up at Rs343.50 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.05% to 18,528.96 points.
The Marginal Standing Facility, which is aimed at containing volatility in the interbank market, will allow banks to borrow from the RBI at 100 basis points above the repo rate
In line with the annual credit policy announcement last week, the Reserve Bank of India (RBI) on today published guidelines for the Marginal Standing Facility (MSF) to help banks tide over short-term liquidity problems.
As per the guidelines, a bank can borrow up to 1% of their total deposits from the RBI under the MSF facility at a rate that is 100 basis points higher than the short-term lending (repo) rate. The facility is effective from today, the RBI stated.
The repo rate, which was increased last week by 50 basis points, stands at 7.25%. As such, the rate charged under the MSF would be 8.25%, PTI reports.
The facility is expected to contain volatility in the overnight inter-bank market. The call money rate was at about 6.75% during the afternoon trading session today.
“Under the facility, eligible entities can avail overnight up to 1% of their respective net demand and time liabilities (NDTL) outstanding at the end of the second preceding fortnight,” the RBI said. Requests will be accepted received for a minimum amount of Rs1 crore and in multiples of Rs1 crore thereafter.
In the event that the banks’ SLR (statutory liquidity ratio) holdings fall below the statutory requirement on account of the use of this facility, banks will not have the obligation to seek a specific waiver for any default in SLR compliance, subject to a ceiling of 1% of their NDTL.
SLR is the percentage of total deposits kept in government securities and other specified instruments. The current SLR requirement is 24%.
Aanjaneya Lifecare aims to raise around Rs120 crore through the issue of 50 lakh equity shares
The initial public offering (IPO) of Aanjaneya Lifecare, a unit of Finaventure Capital, has opened for subscription today.
The company aims to raise around Rs120 crore through the issue of 50 lakh equity shares at higher end of price band of Rs228-Rs240 a share. Bids can be made for 25 equity shares and in multiples of 25 shares thereafter. The issue will close on 12th May.
Aanjaneya is vertically integrated pharmaceutical company with manufacturing and marketing capabilities in APIs (active pharmaceutical ingredients) with focus on anti-malarial, and finished dosage forms (FDFs) catering to various therapeutic segments.
Anand Rathi Advisors Ltd and IDBI Capital Market Services Ltd are the book running lead managers to the issue.