RCom may sell 5% in its tower unit as a pre-IPO deal

RCom is learnt to have begun talks with strategic and financial investors for selling 5% stake in its tower unit prior to the planned IPO, for about Rs2,500 crore

Reliance Communications Ltd (RCom) is learnt to have begun talks with strategic and financial investors for selling 5% stake in its tower unit prior to the planned initial public offering (IPO), reports PTI.

Banking sources with direct knowledge of the development said that the company was hoping to raise about Rs2,500 crore from the proposed sale.

JM Financial is the lead manager of the talks with a host of co-lead managers like JP Morgan, Enam Financials, Deutsche Bank, ICICI Securities and HSBC.

A company spokesperson declined to comment on the issue, citing Securities and Exchange Board of India (SEBI) guidelines. SEBI rules bar a company from disclosing information about itself after getting approval for an IPO.

In 2007, the company had sold 5% in Infratel for Rs1,400 crore to seven financial investors that included George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital— in a deal valuing the company at Rs28,000 crore.

If the pre-IPO placement talks materialise into stake sale and the planned 10% IPO takes place, then RCom's stake will reduce to 80%.

Earlier, Reliance Infratel had filed with SEBI for the IPO, which sources had said could raise up to Rs5,000 crore for a 10% stake, which valued the company at Rs50,000 crore.
 

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Boeing to begin work on new MRO unit by mid-2010

Maharashtra Airport Development Co has allotted 50 acres of land for the MRO facility and Boeing plans to start construction of the unit in the second quarter of 2010

After being delayed for two years, Boeing will start construction of a $100-million aircraft repair and overhaul facility at Nagpur by the second quarter of this calendar year in collaboration with Air India, its top official said on Monday.

"We deliberately delayed the maintenance, repair & overhaul (MRO) project as we wanted to time it to match with the delivery of the Boeing 787 Dreamliners to Air India. It (the facility) will come up by late 2013 or early 2014," Boeing India chief Dinesh Keskar told reporters.

About 50 acres of land has already been allocated for the project by the Maharashtra Airport Development Co and construction will start in the second quarter of this year.

Mr Keskar said that the MRO facility was intended to serve 23 Boeing 777s, 27 Dreamliner 787s and other aircraft types like the 737s ordered by Air India.

Noting that B-787s would not require major checks immediately after their deliveries to Air India start next year, Mr Keskar said that when these aircraft would need to go in for high-level 'C' checks, "the facility would be fully in place".

The Boeing India chief projected that India would require $100 billion worth of planes in the next 20 years, with single-aisle aircraft forming the bulk of the demand worth $60 billion. As the 10th largest military spender in the world, India would require $31 billion worth of defence deliveries in the next 10 years, he said.
 

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COMMENTS

Shadi Katyal

9 years ago

I am a bit confused as it is not clear whether this fcility is for only Air India and Indian airlines or is this similar to how Hindustan Aircraft started. That was a facility by Boeing to overhaul/repair air crafts during and after 2nd WW.
Did Air India not signed similar pact with Dubai.
Air India used to repair and overhaul engines for other international companies but it lost due to unions and being a PSU has no working culture left.

Reforms may deliver 9% growth rate for India by 2011: CRISIL

CRISIL has said that it expects India to regain and sustain its pre-crisis GDP growth rate of about 9% starting in 2011, provided it hastens policy reforms in areas such as taxation, education, and foreign investment regulations

Ratings agency CRISIL Ltd has said that having emerged from the global economic crisis relatively unscathed than most other nations, India is on course to return to a pre-crisis growth rate of about 9% from 2011, if key reforms continue.

"Though not insulated from the global crisis, India proved to be less vulnerable than many first anticipated. In contrast with advanced economies, its financial sector also stayed fairly healthy. This made the country's stimulus program more effective than elsewhere and accelerated its recovery," said Dharmakirti Joshi, principal economist of CRISIL Ltd, a unit of Standard & Poor's (S&P).

"As a result, we expect India to regain and sustain its pre-crisis GDP growth rate of about 9% starting in 2011, provided it hastens policy reforms in areas such as taxation, education, and foreign investment regulations,” said Mr Joshi in a guest opinion article titled "Why India Will Continue To Gain Stature In The Global Economy" and published by S&P.

The article says that India's large, young, and growing population, the rising income of the middle class, and the country's high savings rate continue to support strong domestic demand, tempering the impact of weak export markets and other external stimuli.

CRISIL said that it believes that the country therefore has a greater opportunity than advanced economies to address its constraints and create a prosperous 'new normal' for its economy.

"Clearly, the fallout from the global crisis for advanced economies is lower growth and reduced financial leverage, each reinforcing the other. But for India, the economic environment and growth possibilities haven't changed fundamentally. The challenge before India is not merely achieving a 9% growth rate but also sustaining it," added Mr Joshi.

According to the article, realising India's potential will mean accelerating reforms to improve the investment climate, productivity, and domestic demand to offset the impact of weak performances among advanced economies.

Areas that need immediate policy action include addressing the country's high debt and deficits, improvement in infrastructure, opening the door to more foreign investment, streamlining the tax system via early implementation of a goods and services tax that would replace the existing system of indirect taxation, amending labour laws, and reforming the financial sector, the article said.
 

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