Market Update

* L&T : plans to generate 5k mw of electricity by 2015 by investing ~Rs 300bn..
 has 3 projects & trying to reach fin closure for another 5000mw by 2015

* TATA STEEL : NYK Holdings acquires 26% stake in logistics and harbour ops
 services sub of co TM Intln Logistics

* HERO HONDA : may build 4th plant in 6 mths as it targets rural mkts &
 possible exports to Africa

* INDIA CEMENT : plans to raise $75bn thru share sales to QIB @ Rs 120.20/share

* EXIDE IND : to sell 50mn shares to QIBs @ Rs 107.86/share

* NMDC : EGoM fixes FPO px band @ Rs 300-350/share ie discount of 25-12.5%

* WIPRO : wins turnkey project from Financial Intelligence Unit of India to be
 completed in 24 mths with service period of 36 mths

* GVK POWER : to invest Rs 40-45bn to modernize & expand Bangalore Intln
 airport.. also plans to buy Siemens 40% stake in venture

* AUTO SECTOR : Tata Motors said yday that the Auto Industry is likely to hike
 pxs of vehicles in April, to pass on cost of mtg Euro-IV fuel emission norms

* MARUTI : rpts Suzuki Motor has raised its stake in Maruti by 0.8% to 55% thru
 secondary mkt purchases

* TATA MOTORS : media rpts Diamler Chrysler to sell its 5.34% stake in the Co
 via block deal in the open mkts

* HINDALCO : North America unit Novelis sees global aluminum demand rising 4%     
annually for the next 5 yrs led by growth in Asia in the region of 6-10%

Corporate News – Industry trends

– India Cements has decided to raise up to US$75mn through Qualified
Institutional Placement. (BS)

– Reliance Media Works, which is locked in a takeover battle with Inox Leisure for
multiplex operator Fame India, has raised the open offer size by 100,000 shares
to meet the regulatory requirement. (BL)

– Daimler to sell 5.34% in Tata Motors for Rs20bn, to offload 25.6 mn shares at
Rs737-761 apiece, block deal may be completed today. (ET)

– National Stock Exchange raised its stake in National Securities Depository to
25.05% from 15.63% after buying a 9.42% stake from the Specified
Undertaking of the Unit Trust of India for c.$25mn. (ET)

– Nagarjuna Construction Company Ltd secured new orders aggregating
Rs12.2bn, including Rs6.4bn deal from the Hyderabad Growth Corridor Ltd,
for the construction of Access Controlled Expressway. (BL)

– A bill seeking to reduce the Centre’s shareholding in the State Bank of India
from 55% now to 51% and to allow the bank to raise more capital from the
market through preference shares was introduced in the Lok Sabha. (BS)

– Caraco Pharmaceuticals, the troubled US subsidiary of Sun Pharma, got a
temporary reprieve after its banker, RBS Citizens, agreed to suspend the
conditions on a term loan of US$18mn till October 6. A line of credit worth
US$15 mn would not be affected by the suspension. (BS)

– Sequoia Capital is looking to pick up 9.4% stake in rating agency Credit
Analysis and Research Ltd (CARE) for Rs0.74bn. (ET)

– L&T Power Development Company plans to install power plants of 5,000
megawatt capacities by 2015 to cater to the growing demand for electricity,
the company requires Rs300bn as total investment in power generation. (ET)

– GVK Power and Infrastructure Ltd, which owns a 29% stake in Bangalore
International Airport Ltd, will invest Rs40-45bn to modernize and expand the
facility. (Mint)

– Bank of Baroda and Bank of India are planning to raise Rs20bn each, while
Corporation Bank is targeting Rs15bn in the coming fiscal. (DNA)

– IL&FS Transportation Networks Ltd expects to raise Rs7bn from the sale of
new shares, including stock being sold by Trikona. (Mint)

– The government's nominee on the board of Bharat Sanchar Nigam Ltd, J S
Deepak, has informed the DoT that 28.73% of the PSU's mobile network
capacity was lying unutilized as the company was maintaining non-existing
mobile subscribers to artificially inflate its user base. (BL)

– Lupin is looking at garnering about US$150mn from oral contraceptives in
the US as it sees huge potential in the underserved market. (DNA)

– GlaxoSmithKline said it was interested in acquisitions in India if the assets came
at the right value. The attempt would be to acquire brands and improve its
consumer healthcare business, but not assets that sell pure generics (low cost,
high volume business). (BS)

– Essar Group plans to raise US$3bn by listing 25% in Essar Energy, the group’s
holding company for power and oil businesses. The group plans to use the
proceeds to part-finance an estimated Rs400bn expansion of the two businesses
in the next three-four years. (BS)

– The Indian Railways has registered a 5.43% growth in total earnings, mopping
up Rs71.4bn, in February against the corresponding period last fiscal. (BL)
– Tata Motors said the auto industry would witness a price hike in April after the
implementation of Euro-IV norms. (BS)

– Wipro Infotech has won a turnkey project from the Financial Intelligence Unit -
India, Ministry of Finance. (BL)

International trends

– Royal Dutch Shell Plc and Petro China Co made an offer worth more than
US$3.3bn to acquire Arrow Energy, the holder of Australia’s biggest coal seam
gas acreage, triggering a record gain in the shares. (BS)

– American International Group Inc. and MetLife Inc. agreed to sell American
Life Insurance Co. for US$6.8bn in cash and US$8.7bn in MetLife equity,
including common stock and convertible preferred securities. (Mint)