Godrej Properties, Jet Airways sign development agreement

The real estate developer acquires development rights from Jet Airways to develop a commercial building

Godrej Properties Ltd (GPL), the real estate development arm of the Godrej Group, today announced that it has entered an agreement with Jet Airways Ltd to develop the latter's property, C-68, G Block, Bandra-Kurla Complex (BKC), in Mumbai.

GPL will develop an approximately 1 million sq ft, of saleable area, office building that will be completed in a three year period. GPL will take on the Rs360 crore debt obligation Jet Airways has on the property and will also pay Jet Airways Rs135 crore to compensate them for expenses that have already been incurred. Additionally, GPL has agreed to sell 161,460 sq ft of carpet area to Jet at development cost. This space will be used as the new headquarters for Jet. GPL and Jet will share the profits from the development in a 50:50 ratio.

In the late afternoon, GPL was trading at around Rs726 per share on the Bombay Stock Exchange, 0.6% up from the previous close.

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Omkar Speciality Chemicals Q1 PAT up by 100%

Omkar Speciality profit after tax for the quarter ended 30 June 2011 stood at Rs4.02 crore

Omkar Speciality Chemicals Ltd has reported a robust growth in revenues and profit after tax for the quarter ended 30 June 2011.

The profit after tax for the quarter ended 30 June 2011 stood at Rs4.02 crore, resulting into an increase of 100.66%, against Rs20.03 crore in the corresponding period of the last fiscal year.

The company reported an increase in net sales by 89.84% from Rs22.41 crore to Rs42.55 crore during the same period.

In the late afternoon, Omkar Speciality was trading at around Rs60.25 per share on the Bombay Stock Exchange, 5.12% up from the previous close.

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Govt may lower disinvestment target for current fiscal

As against the ambitious target of raising Rs40,000 crore from sale of shares of the state-owned enterprises, the government has so far raised a little over Rs1,144 crore by offloading stake in the Power Finance Corporation

Mumbai: The government on Monday indicated it may lower the Rs40,000 crore disinvestment target for the current fiscal in view of the recent bloodbath in the stock markets on account of global uncertainty, reports PTI.

"It is difficult to say, if the current target will remain intact or revised," disinvestment secretary Mohammed Haleem Khan told reporters here when asked if the government is contemplating to lower the disinvestment target for the current fiscal.

As against the ambitious target of raising Rs40,000 crore from sale of shares of the state-owned enterprises, the government has so far raised a little over Rs1,144 crore by offloading stake in the Power Finance Corporation.

Following the downgrade of sovereign credit rating of the US to AA+ from AAA by Standard and Poor's, the BSE Sensex plunged to below 17,000 mark during the intra-day trade before reducing losses.

"There are a few companies in the pipeline for disinvestment, but it is difficult to say when. We have a set of professional advisors to advise us on disinvestment," Mr Khan said, adding the government is monitoring the situation.

A senior official in the Disinvestment Department had earlier said that the government hopes to raise a little over Rs15,000 crore through share sale of PFC, SAIL, ONGC and HCL. PFC follow-on offer hit the market in May.

RINL, MMTC and NBCC were also on the government's radar for disinvestment but the current financial turmoil may prompt the government to postpone equity sale.

Last fiscal, the government had raised Rs22,763 crore from sale of equity in public sector enterprises against a target of Rs40,000 crore. It offloaded equity in SJVN, Engineers India, Coal India, PowerGrid, and Shipping Corporation of India.

The Indian stock market never made a prolonged bull run so far in the current fiscal in the wake of debt crisis in Europe, stubborn inflation within the country and a series of rate hikes by the Reserve Bank of India.

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