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In September 2009, Moneylife had reported that Mittal and Miglani had bigger plans on the anvil, which is now being seconded by some media reports
According to media reports, ArcelorMittal Netherlands BV, controlled by Lakshmi Mittal, is likely to build a one million tonne (MT) steel plant at Satarda in Maharashtra through a joint venture (JV) with Uttam Galva Steels Ltd (UGSL).
ArcelorMittal Netherlands BV, a subsidiary of ArcelorMittal, has made an open offer to raise its stake in USGL to 35% at Rs120 per share, which closed on Thursday.
Moneylife had earlier reported on 5 September 2009 that LN Mittal was likely to make an open offer to acquire another 29.4% in UGSL, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Under the agreement, Mr Mittal will purchase a 5% stake (at Rs120 a share) in Uttam Galva followed by an open offer to acquire another 29.4%, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Uttam Galva has a steel production capacity of 750,000 tonnes per annum.
USGL had informed bourses on 4th September about its co-promotion agreement with ArcelorMittal Netherlands BV.
Sources close to the deal had earlier told Moneylife that ArcelorMittal will partner with the Miglanis to set up a 2MT Hot Rolled Coil (HRC) project at Redi near Goa. The Miglanis already own 750 acres of land there, which once belonged to Usha Ispat, controlled by Vinay Rai. Usha Ispat had a pig iron plant at Redi, which was auctioned under the provisions of the Sarfaesi Act, 2002. The land is also located near a jetty and is close to the raw material source.
According to sources, Uttam Galva had all the permissions in place to get the project off the ground very quickly. LN Mittal will be the dominant partner in the Goa project with a 70% holding while Miglani will own 30% to start with.
With this partnership, Uttam Galva, a standalone galvaniser, has entered the big league of steel players in India.
According to media reports, State Bank of India (SBI), Punjab National Bank, Canara Bank and IDBI Bank Ltd will fund the project with the lead syndicator being SBI. So far Rs2,100 crore has been sanctioned and the rest will be funded by promoters through equity.
The state government has blocked two online trading sites, including bseindia.com, as they were frequently being used by employees and these sites are not required for government work
Maharashtra government employees can no longer browse online trading sites from state headquarters Mantralaya. The state government has blocked two financial websites bseindia.com and moneycontrol.com.
"The government has blocked two online trading sites, as they were frequently being used by employees and they are not required for government work," an official from the information technology department told PTI.
The department has installed the system that would prevent the employees from accessing these two sites and making any transactions online, the official said.
The move was initiated after receiving several complaints from senior officials that some employees spent working hours in online trading, the official said. Some employees were also found playing games on office computers, he added.
"All the departments have welcomed the move of the government to block these sites, as use of these sites was affecting working hours of Mantralaya and quality of work," the official said.
Unhappy with the decision, an employee said that it was true that some people were doing online trading but it had never affected duty.
Justifying the ban, the official said that many corporate offices have already taken the initiative to block trading, gaming, porn and social networking sites.
Indian markets ended lower due to weak global cues
The Sensex ended the day 85 points down from the previous day’s close, closing at 17,616, while the Nifty closed at 5,263, down 19 points, on the back of weak global markets.
Yesterday we had said that the bourses would be down and they remained depressed. The market may continue to be weak tomorrow. However, institutional buyers are waiting to buy on declines.
During the day, Reliance Industries Limited (RIL) rose 2% on reports of more fund-raising by the company through sale of treasury shares.
KRBL has given a purchase order to Suzlon Energy for the setting up of
an 8.1-MW wind turbine generating plant in Tamil Nadu. Both the stocks ended up in the red.
Thermax has received an order worth Rs240 crore from a leading business house for supplying four CEBC (Circulating Fluidised Bed Combustion) boilers, each of 190TPH capacity. The stock was down 1%.
Four Soft was up 5% on reports that Mondial Logistics had selected 4S eLog to automate the management of its warehouses throughout its locations in the Netherlands.
On Wednesday, finance secretary Ashok Chawla said that continuing stimulus measures were not good for the economy, arguing that “too much of stimulus can be injurious to health” and clearly hinting that a rollback of the these measures may be on the cards. However, Anand Sharma, commerce and industry minister, has reportedly urged against an immediate rollback of last year’s stimulus measures. He said that while exports were on the recovery path, a “full and sustained” recovery would happen only when demand picks up across the US, Europe and Japan.
In a move which could infuse more liquidity into the markets and make them more dynamic, the Securities and Exchange Board of India (SEBI) extended the tenure of contracts in securities lending and borrowing (SLB) to 12 months from one month. At the beginning, the tenure was for only seven days, which was later increased to 30 days.
During the day, Asia’s key benchmarks in China, South Korea, Japan, Singapore, Hong Kong, Taiwan and Indonesia fell by between 0.59%-1.9%.
As per Chinese reports, the People’s Bank of China sold 60 billion yuan ($8.78 billion) worth of three-month bills at 1.3684%, increasing the yield on such bills for the first time since August 2009, from 1.3280%.
China’s central bank said that it would pay close attention to the property market in 2010 while managing inflationary expectations.
Meanwhile, the Bank of England is likely to keep interest rates on hold at a record low of 0.5%, and maintain the quantitative easing programme at £200 billion of asset purchases.
On Wednesday, 6 January 2010, the Dow Jones Industrial Average and the S&P 500 were up 1.66 points and 0.62 points respectively, while the Nasdaq Composite was down 7.62 points.
According to US media reports, the Federal Reserve released minutes from its last meeting which indicated that some members think more stimulus measures for the economy may be desirable. It also showed that they modestly raised their GDP growth forecast upward for 2010 and 2011. They see lower core inflation in the next few years.
As per reports, ADP Employment Services data showed that the private sector lost 84,000 jobs in December. That was fewer than the 145,000 jobs lost in November, but did exceed the 73,000 expected by economists. The December ISM service index improved to 50.1 from 48.7 registered in November.
In premarket trading, the Dow was trading 24 points lower.