Telecom industry tops M&A chart in Apr-Dec 2010

New Delhi: The telecom industry topped the charts in terms of mergers and acquisitions (M&As) that took place in India in the April-December 2010 period, valued at $58 billion across all sectors, reports PTI quoting an industry body study.

The number of M&As rose to 222 in the first nine months of the current fiscal compared to 149 in the same period last fiscal, an Associated Chambers of Commerce and Industry (Assocham) study said.

“The rise in these deals provides clear evidence that the Indian industry is consolidating and at the same time aggressively working on global expansion,” it said.

Of the total valuation of M&As, the telecom sector had the highest share of 28%. The sector saw 10 deals valued at $16.5 billion, the study said.

Among the major outbound deals during the period, India’s telecom major Bharti Airtel completed a deal to buy Kuwait-based Zain Telecom’s African business for about $10.7 billion, the study said.

In another deal, Bharti acquired 100% stake of Telecom Seychelles for $62 million. Also, Reliance Industries bought 95% stake in Infotel Broadband for $1.03 billion, the survey said.

Besides this, other sectors like IT/ITeS, auto, steel, consumer durables and real estate witnessed 146 deals for an amount totalling $6.48 billion.

Total 98 outbound M&As took place during April-December 2010-11 against 32 in the same period of the last financial year. Of the 222 deals, 103 were domestic deals and 21 inbound, the study said.


MF industry AUM drops 5% in Dec quarter at Rs6.75 lakh crore

New Delhi: The average assets under management (AUM) of the mutual fund industry declined by 5% during the October-December quarter, with country's largest fund house Reliance Mutual Fund’s (MF) assets shrinking by over Rs5,000 crore, reports PTI.

The industry's average AUM fell by Rs37,904 crore, or 5.31%, in the October-December period.

The combined average AUM of 40 fund houses stood at Rs6,75,376.97 crore at the end of December, down from Rs7.13 lakh crore in end-September, as per information available with the industry body AMFI.

At the end of December 2010, the AUM of Reliance MF stood at Rs1,02,066.21 crore, a decline of Rs5,682.32 crore or 5.27% from the assets managed in September-end.

The country’s second largest fund house HDFC MF also saw its asset base shrink by Rs5,222 crore, or 5.61%, to Rs87,883.09 crore. ICICI Prudential MF’s assets declined by Rs3,886 crore or 5.57% to Rs65,841 crore.

Among the other fund houses UTI MF’s assets fell by 3.29% to Rs65,387 crore and LIC MF’s by 5% to Rs18,695 crore.

However, a few fund houses like Axis MF, Benchmark MF, Fidelity MF, Mirae Asset MF and Pramerica MF among others saw their assets rise in the range of 4%-75% during this period.

Mirae Asset Global Investments (India) chief executive Arindam Ghosh said, “We have introduced different product mix during the December quarter. This has led to an increase in inflows into several schemes. We mostly have equity funds.”

Of the 40 fund houses in the country at the end of December, as many as 30 witnessed their asset base dwindle.

At the of December the AUM of Mirae Assets stood at Rs328 crore, Pramerica MF at Rs1,108 crore and Axis MF at Rs5,013 crore.

Experts said the MF industry came under redemption pressure as banks and corporates withdrew investments to meet the quarter end liquidity needs and advance tax payments, respectively.

This is the first time that the mutual fund industry is disclosing their AUM data on a quarterly basis. Till September, the MFs used to disclose AUMs on a monthly basis.


CBI registers preliminary inquiry into aspects of telecom policy since 2001

New Delhi: Acting on a Supreme Court direction, the Central Bureau of Investigation (CBI) today registered a preliminary inquiry (PE) to look into possible criminal aspects in the telecom policy since 2001, reports PTI.

The PE was registered against "unknown persons" with an aim to ascertain as to whether the "first-come-first-serve basis" provision passed by the then Cabinet led by Atal Bihari Vajpayee was followed or not, official sources said here.

The CBI was likely to go into the minutes of the meetings held by successive telecom ministers, which included late Pramod Mahajan, Arun Shourie and Dayanidhi Maran.

According to the sources, nearly 50 licences were given out on the first-come-first-serve basis and Bharti, Vodafone and Idea were among the beneficiaries of the policy.

The sources said that documents of the companies who have been awarded the contract would also be examined.

The Supreme Court had on 16th December directed the agency to widen its investigation to cover the grant of licences by both the NDA and the UPA regimes between 2001 and 2007 and submit a report by 10th February this year.

The apex court had made it clear that the emphasis of the investigation would be to determine the loss of money to the public exchequer and said a progress report on the probe has to be filed by the CBI and Enforcement Directorate (ED) in a sealed cover.

Holding that prima facie "serious irregularities" have been found in the issue of 122 licences, the court delivered a seven-point direction to the CBI and ED saying it was satisfied that allegations need a thorough and impartial investigation.

Mr Shourie, who held the telecom portfolio between January 2003 and May 2004 in the NDA regime, had said he was not sure what made the apex court widen the scope of probe from 2001.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)