Wipro's Infrastructure Engineering division will buy majority stake in Brazil-based hydraulic cylinder manufacturer RKM Equipamentos Hidraulicos for an undisclosed sum.
New York: Wipro Ltd on Wednesday announced it has signed an agreement to acquire a majority stake in Brazil-based hydraulic cylinder manufacturer RKM Equipamentos Hidraulicos Ltd, reports PTI.
Subject to customary regulatory approvals, the acquisition is expected to be completed during the quarter, the Bangalore-headquartered company said. Financial details of the transaction were not disclosed.
Wipro Infrastructure Engineering President Pratik Kumar said, "Brazil is an extremely attractive market for us ...driven by a high growth economy and huge investments in infrastructure over the next few years. RKM provides us an ideal platform to expand and extend our portfolio of offerings in the Brazilian market and well as rest of the Latin America."
Jose Luiz Ramos, the CEO of RKM Equipamentos Hidraulicos Ltd, said, "The partnership with Wipro Infrastructure Engineering will give us a wider customer access and expansion opportunities into new-end equipment segments."
The acquisition would be a part of Wipro's Infrastructure Engineering division. Wipro Infrastructure Engineering is a global leader in precision engineered hydraulic cylinders and components. It is a Tier-1 supplier to global original equipment manufacturers of construction and earth moving machinery, material handling equipment, forestry equipment, heavy and medium commercial vehicles, among other industries, across Asia and Europe.
Investigating agency explains to the court how the first-come-first-served policy was manipulated by former telecom minister
New Delhi: The Central Bureau of Investigation (CBI) has said that the first-come-first-served policy was manipulated by former telecom minister A Raja and others to such an extent that physically fit persons got away with the most valuable 2G licences.
“Physical fitness of the applicants became the deciding factor in the grant of licences,” senior advocate and CBI prosecutor UU Lalit told Special Judge OP Saini on Tuesday, while opposing the bail plea by Swan Telecom promoter Shahid Usman Balwa.
Mr Balwa, who is in jail since his arrest in Mumbai on 8th February, moved the bail application saying he has been “unfairly” targeted by the CBI and that he had committed no offence, PTI reports.
Mr Lalit told the court that the idea behind setting up four counters at Sanchar Bhawan on 10 January 2008, for grant of letters of intent to firms including Swan Telecom, negated the first-come-first-served policy adopted for the grant of UAS (unified access service) licences.
“What determined seniority was not the date of application but your agility. It was about how agile, energetic and fit enough you are to reach the counters (at Sanchar Bhawan) first,” Mr Lalit said. “This particular device was adopted to favour Swan and Unitech. If they were to go by seniority, the Delhi circle licence would have gone to anybody. People were clamouring for lucrative regions. Nobody was interested in regions like Karnataka, Andhra Pradesh. If I want the best of the lot, the cherry, I need to go to the counter first.”
“To sum up, so far as Shahid Balwa is concerned, he and Vinod Goenka were in charge and responsible for the affairs of Swan Telecom, which received favours due to all these gimmicks. An advantage of Rs3,600 crore is enormous. Propensity of this person (Shahid Balwa) and reverse money trail itself is indicative that he is not entitled to benefit of his release on bail,” Mr Lalit said.
The prosecutor also referred to the chargesheet to support his statements that Swan telecom, promoted by Mr Balwa, was nothing but a front company of Reliance ADAG to circumvent the then telecom policy that debarred the usage of dual technology by existing players.
Mr Balwa and Mr Goenka came on the board of Swan Telecom after Reliance got back its money, put in as subscription for preference shares in the company. “The sum and substance is that a company which, to start with, was not eligible to make an application for spectrum licence, was thus transferred to Mr Balwa and Mr Goenka,” the prosecutor said.
The CBI has charged Mr Raja with entering into a conspiracy with others to favour various firms, including Swan Telecom and Unitech Wireless (Tamil Nadu) Private Ltd.
The court posted the matter for hearing on 18th May, when counsel for Mr Balwa would advance arguments on the bail plea.
New rates will affect all new as well as existing borrowers
The State Bank of India, the country's largest lender, on Tuesday announced a hike in its lending rates by 75 basis points (bps), which will also make housing and auto loans costlier for both new and existing borrowers. Simultaneously, the Bank has hiked interest rates on fixed deposits of short-term maturities by up to 225 bps.
SBI said in a statement late yesterday that its new base rate, or minimum lending rate, would be 9.25%. The hike is effective from Thursday, 12 May 2011.
The Bank has also increased its benchmark prime lending rate (BPLR) by 75 bps which means that existing borrowers will also have to pay more on their loans. With this hike, SBI’s BPLR goes up to 14%. Consequently, equated monthly installments for existing loans will become dearer by at least 75 bps.
Since the Reserve Bank of India (RBI) raised key short-term rates on 3rd May, the banks have been raising their rates in a rush. Over a dozen banks, among them Punjab National Bank, ICICI Bank, Oriental Bank of Commerce and Corporation Bank, have raised interest rates in the past week. But while most of these banks hiked lending rates by 50 bps, SBI has taken a more aggressive step with a 75 bps increase.
For fixed deposits, interest rates have been hiked for maturities up to 180 days to align these with the hike in interest rate for savings bank accounts. On 3rd May, the RBI also announced an increase in the interest rate on savings bank accounts to 4% from 3.5%.
SBI’s new interest rate for term deposits with a maturity of 7-14 days will be 6.25% (up from the existing 4%), while deposits for a 15-45 days period will also earn 6.25%. Term deposits of 46-90 days maturity, will earn an interest of 6.25% (up from the existing 5.5%), whereas deposits of 91-180 days will get 7% (an increase from the existing 6%). The new deposit rates will also be effective from 12th May.
The State Bank of Mysore has also announced an increase in its base rate and BPLR by 50 bps, effective Thursday. While the new base rate of State Bank of Mysore will be 9.5%, the BPLR will be 14.25%.