RInfra in spotlight after board OKs raising Rs 2500 crore

The board of Reliance Infrastructure (RInfra) has approved raising long term resources of up to Rs 2500 crore through external commercial borrowings (ECBs), foreign currency convertible bonds and rupee term loans/non-convertible debentures (NCDs) for refinancing and extending maturities of higher cost rupee debt/other approved end uses.

The board of IL&FS Engineering and Construction Company approved raising up to Rs 300 crore through rights issue of equity shares. The issue will be priced at 7.5% discount to the closing price of the stock at NSE on 9 October 2013.

Tata Steel is reportedly planning to raise $1.2 billion by selling its stake in various Tata group companies. Tata Steel has stakes in Tata Sponge Iron, Tayo Rolls, Tata Motors and Titan Industries.

Select telecom stocks will be watched after a media report suggested that the Department of Telecom (DoT) has worked out a one-time spectrum charge of over Rs 2060 crore to be levied from operators for the period they remained in business after their licences were cancelled in February last year. As per the DoT calculations, Idea Cellular Rs 153.97 crore, Spice Communications (now part of Idea) Rs 109.19 crore, Unitech Wireless (Uninor) Rs 498.20 crore and Videocon Telecom Rs 464.17 crore, the media report added.

State Bank of India (SBI) will be watched after a media report suggested that the finance ministry is likely to allow SBI to raise around Rs 8000 crore of equity capital either through a qualified institutional placement (QIP) or a follow-on issue. The finance ministry is also likely to allow four other state-run banks, including Syndicate Bank, United Bank of India, and Union Bank of India, to raise capital through the qualified institutional placement (QIP) route. Three other banks, including Andhra Bank and Indian Overseas Bank, may raise funds through rights issues, the report added.

Tata Chemicals plans to restructure its European business by closing a soda ash and calcium factory and making 220 redundancies in the UK because of rising energy costs. Tata Chemicals Europe (TCE), a unit of Tata Chemicals, operates from three sites in Cheshire: Winnington (Northwich), Lostock (Northwich) and Middlewich.

Shares of Financial Technologies (India) (FTIL) and Multi Commodity Exchange of India (MCX) will be watched after Vice-Chairman Jignesh Shah and Managing Director & CEO Joseph Massey stepped down from the board of MCX Stock Exchange (MCX-SX).

Meanwhile, the exchange said in an announcement the Securities and Exchange Board of India (Sebi) had, through a letter dated 8 October 2013, nominated former LIC head, Thomas Mathew T, as MCX-SX's public interest director.

U Venkataraman, whole-time director, will assist a special committee of public interest directors in carrying out the functions of the exchange, according to the statement. FTIL holds a 26% stake in MCX. FTIL and Multi Commodity Exchange are the promoters of the MCX-SX stock exchange.

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