Abhishek Securities

In a move to consolidate cross-holdings across group firms, Tata Group’s holding firm Tata Sons is set to acquire Tata Steel’s 2.9 per cent stake in Tata Motors. The announcement on Saturday, made through a filing with the stock exchanges, confirms reports that the Tata Group is planning widespread consolidation of holdings.   The issue of cross-holdings has already come up several times, even during the tumultuous few months following the sacking of Cyrus Mistry from the group’s top post. In November, a group of foreign institutional investors wrote to Tata Steels’ board raising concerns about its cross-holdings in other Tata firms. According to the filing, Tata Sons will buy around 83.6 million shares in Tata Motors at or around the prevailing price of the stock on the date of the planned acquisition, it said, citing “restructuring of investment portfolio” as the reason for the planned deal. As per details available, Tata Sons owned 29.75 per cent of Tata Steel at the e...

   Tata Technologies Ltd plans to acquire companies to expand its defence footprint over the coming four years, a top executive said. “In the last six years our compound annual growth rate is 16%,” Tata Technologies CEO Warren Harris said in an interview to Washington-based DefenseNews.com. “We fully expect to be able to maintain that organically. Our trajectory over the next four years organically sees us going to $800 million, so we see about $200 million in revenue that will come in from acquisitions.” Tata Technologies is part of the $100 billion Tata Group.  Harris said that Tata Technologies’ business is about 70% automotive, 11% aerospace, and 12 % industrial heavy machinery. Harris wants to see aerospace grow at a much higher rate than automotive in order to maintain a balanced portfolio. Under the government led by Prime Minister Narendra Modi,- India has moved swiftly to seal defence contracts. India’s high defence spending, along with the government’s ‘M...

Tata Motors is not planning to list its engineering solutions and IT product developing subsidiary Tata Technologies. Tata Technologies IPO could have been a huge value unlocking trigger for Tata Motors. Speaking at the automaker’s annual general meeting, Chairman Cyrus Mistry answered to a query from a shareholder while adding that the focus currently is on turning around Tata Motors’ operations. Tata Motors owns 70.4% equity stake in Tata Technologies. We have no immediate plans for an initial public offer (IPO) for Tata Technologies. However, we will explore various options in the future – Cyrus Mistry, Chairman, Tata Motors Mistry also made clear that there are no plans to list the defense business. The Chairman said the flagship company’s business is going to increase in volatility. “We are all becoming used to unpredictable and dynamic market environments, learning to manage by anticipating customer needs, leveraging strong processes and building competitive product...

Tata Sons has shortlisted candidates for the group chief finance officer (CFO)’s position. The board has been without a finance director in the executive role after Ishaat Hussain became a non-executive director in September at the age of 65. “The shortlisted candidates are not from the group but from outside,” said a source. “The new chief finance officer will have broader responsibility to oversee the group’s mergers and acquisitions,” the person. Earlier, Arunkumar Gandhi was the chief deal maker for the group. He retired last year. “These matters are internal to the company. As and when we have an announcement to make, we will inform you,” said a Tata Group spokesperson.

Even as there is talk of UK telecom giant Vodafone buying out Tata Teleservices (TTSL), the Tata group's holding company Tata Sons  pumped close to Rs 2,400 crore  into it last week by way of convertible preference shares.  The move is aimed at infusing liquidity into the telecom arm, whose capital has been completely eroded.  Tata Teleservices has an equity capital of Rs 4,712 crore as  against accumulated losses  of Rs 6,575 crore for the year ending March 2013. In fiscal year 2012/13, the company reported a turnover of Rs 10,859 crore with a net loss of Rs 4,858 crore.  Banking sources say the additional capital from the promoters was necessary to get any further debt funding from the banks.  But the additional funding from majority shareholder Tata Sons which  holds 36.17 per cent in TTSL, has come with a rider. "The conversion of preference capital into equity will take place before the 24 month maturity period if there is a merger of T...

CRISIL Ratings has assigned a stable outlook to Tata Sons' Rs 630-crore non-convertible debenture (NCD) issue, said the media report. It also maintained the 'outstanding' rating on the company's debt programmes and bank facilities at 'CRISIL AAA/FAAA/Stable/CRISIL A1+.' The stable outlook for the NCDs reflected Tata Sons' financial flexibility as the principal holding company of the Tata group, the agency said in a release. "CRISIL believes Tata Sons' business risk profile will be increasingly dependent on the success of its investments, which carry risks associated with implementation and integration," it said. The rating agency may revise its outlook to 'negative' if Tata Sons' financial flexibility is adversely affected, especially in case of larger-than-expected investments, added the media report. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For la...

The Reserve Bank of India  today said that Tata Sons  has withdrawn its application  for a new bank licence. After Videocon, Tata Group is the second conglomerate to withdraw its application. Tata Sons has indicated that its current financial services operating model best supports the needs of the Tata Group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the Group’s diverse stakeholder base. Given Tata’s track record and the fact that people would ideally trust their money with such a large conglomerate, it is surprising that the Tata Group is exiting the race for a banking licence. Capital coming in from large corporates was seen as a positive for the sector. But now with such a large conglomerate exiting from the race, the shape of banking reforms is changing, said Ashwin Parikh of E&Y  in an interview with CNBC- TV18. Moreover, unlike many countries, permission for setting u...

 A detailed audit by the  Comptroller and Auditor General of India  of some major trusts run by business houses and sports bodies has allegedly revealed misuse of income tax  exemptions granted to them. Among them are at least two Tata trusts and a number of state cricket associations.  According to the CAG,  Jamsetji Tata Trust  and  Navajbai Ratan Tata Trust  together invested over Rs 3,000 crore in 'prohibitive modes', meaning  investments  that cannot be accepted as charitable in nature.  In the wake of the CAG audit, the government has initiated steps to recover over Rs 1,000 crore from the two trusts.  Sandip Ginodia A BHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

  Tata  Motors Ltd is cashing in on the success of its Jaguar Land Rover Ltd (JLR) unit to borrow dollars as it refinances in the face of sliding domestic sales. India’s biggest carmaker hired banks to arrange a $500 million loan facility last week, the first international fundraising since its Jaguar unit sold a 10-year bond in January. The cost of insuring the debt of Tata Motors fell 44 basis points last month, the most of any Indian company, and compared with a 56 basis point drop for Jaguar and 34 for  Ford Motor Co.  Tata Motors debt-to-earnings ratio has been rising since 2011. The success of Tata Motors’ overseas luxury vehicle sales has boosted the company’s profit even as revenue from domestic brands slides. The offshore income streams make borrowing in dollars less risky for the car-making arm of Tata Sons Ltd, the country’s largest industrial group, as back-to-back increases in the Reserve Bank of India’s (RBI’s) benchmark rate make rupee financing ...

Tata Realty and Infrastructure Ltd, a hundred percent subsidiary of Tata Sons Ltd, one of India's largest and most respected conglomerates, marks it foray into Punjab with the launch of 'Trilium', in Amritsar early next month. 'Trilium' is poised to be the largest and finest retail destination in Punjab and its launch will fortify Amritsar's position on the Indian retail map. Spread over a land area of 5.54 acres, this 700,000 square feet retail mall will offer an experience beyond shopping, dining and entertainment to shopping aficionados, food connoisseurs and mall goers in Punjab. Developed by one the leading architectural firm - RTKL, USA, 'Trilium' will be one of the few Indian malls that is LEED compliant and earthquake resistant. Best-in-class technological and design elements have been used in construction operations and management, creating an exclusive feel and convenience for custome...

Nitin Nohria, dean and George F Baker Professor of Business Administration at Harvard Business School, has been appointed non-executive director of Tata Sons. The Tata Sons board now comprises Chairman Cyrus Mistry, Farrokh K Kavrana, R Gopalakrishnan, Ishaat Hussain, Vijay Singh and Nohria. Earlier, Nohria served as co-chair of the Harvard Business School leadership initiative, senior associate dean of faculty development and head of the organisational behaviour unit of Harvard Business School. A doctorate in management from the Sloan School of Management, Massachusetts Institute of Technology, he holds a BTech degree in chemical engineering from Indian Institute of Technology-Bombay (which honoured him as a distinguished alumnus in 2007). He was a visiting faculty member at the London Business School in 1996. He has served as advisor and consultant to several companies across the world. Sandip Ginodia A BHISHEK SECURITIES We deal in over 60 unlisted companies w...

Tata Motors -owned Jaguar Land Rover (JLR) has announced a major investment boost of £1.5 billion to introduce a technologically advanced aluminium vehicle architecture in a new range of models. The company will create as many as 1,700 new jobs at its advanced manufacturing facility in Solihull in the West Midlands region of England to meet the requirements of the enhanced product portfolio. The latest additions will bring the total number of UK manufacturing jobs announced by Jaguar Land Rover over the last three years to almost 11,000. Jaguar Land Rover global sales up 28 pct in August "Jaguar Land Rover is a business driven by design, technology and innovation and this investment and level of job creation is yet further evidence of our commitment to advancing the capability of the UK automotive sector and its supply chain," Jaguar Land Rover Chief Executive Officer Ralf Speth said at the Frankfurt Motor Show on Monday. Sandip Ginodia A BHISHEK SECURIT...

Merger talks between Tata Teleservices and Russia's Sistema have advanced substantially, with negotiations centered on a deal that transfers NTT DoCoMo's stake as well as part of the Tata Group's holding to Sistema, giving it a substantial shareholding. The two companies have appointed bankers Rothschild for Sistema, which operates under the MTS brand, and Standard Chartered Bank for the Tata Group. Japan's NTT DoCoMo had bought 26% stake in Tata Teleservices in November 2008 for around 13,000 crore, valuing the company at over Rs 50,000 crore (over $8 billion).

Low cost carrier AirAsia plans to start its India operations in September with two aircraft. AirAsia India, a joint venture between AirAsia, Tata Sons and Telstra Tradeplace, kicked off the hiring process for cabin crew at Chennai today. The airline plans to hire about 100 cabin crew. AirAsia’s COO Bo Lingam, who is leading a 14-member team in Chennai to hire candidates, said, “The way things are going, it looks like in September we will be launching our operations, provided we get all the regulatory approvals.” He added that there is scope for more airlines to enter the aviation industry, considering the population is high. The airline’s promoter Tony Fernandes is expected to visit India in June, added Lingam. It may be noted that AirAsia is the first overseas airline to form a joint venture in India after the government changed the foreign direct investment policy to attract foreign participation. The airline, which started walk-in interview at 9 AM today, screene...

IT major Tata Consultancy Services (TCS) today said one of its promoter has released 1.7 crore pledged shares of the firm. In a filing to the BSE , TCS said its promoter Tata Sons Ltd released a total of 1,73,50,000 shares of the company on April 8 and April 12. Sandip Ginodia A BHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit : www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com For more info and regular updates about unlisted shares and the stock market : Follow our blog :  www.abhisheksecurities.blogspot.in  . Visit :  www.abhisheksecurities.com  . Like us on facebook :  www.facebook.com/abhisheksecurities1  

Determined to ensure its on-going $1.9 billion fertiliser plant in Edo state is of world-class standard, the Dangote Group has appointed TATA Consulting Engineering as its management consultants for the project. The appointment of TATA came after the Pan-African Conglomerate signed the contract for the construction of the largest fertiliser plant in Africa with Saipem. President of Dangote Group, Aliko Dangote, while speaking on the partnership deal, said his company was poised to putting a place a global standard fertiliser plant which will help revolutionise agriculture in the country and Africa as a whole, adding that this informed his choice of renowned partners in the construction of the plant. According to him, the plant with a production capacity of 2,200 metric tonnes per day (MTPD) of Ammonia and 7,700 MTPD of granulated Urea (two 3,850 MTPD-capacity trains), will be the largest fertiliser plant in Nigeria, Africa. “Our ultimate goal is to build a worl...

Tata Power BSE 2.28 % is scouting for partners to pursue opportunities in the area of fuel cell technologies, as part of efforts to strengthen its presence in clean energy space. Fuel cells run on variety of fuels such as hydrogen, methanol and ethanol, and are also seen as a replacement for diesel generator sets. Tata Power, which has an installed generation capacity of about 8,500 MW, including 852 MW from renewable energy sources, said it is actively looking for fuel cell technology partners to pursue opportunities in the Indian market. " Tata Power is working on putting together a workable business model in place to seek technology partners for fuel cells," it said in a statement. These cells are considered as highly efficient and a good source of clean energy. According to the company, using hydrogen directly for fuel cells is a challenge since it involves cost and safety issues, among others. Besides, the company is evaluating new technology for f...

Tata Capital, the financial services provider from Tata Sons, is currently on the lookout for a media agency. The process began a couple of weeks ago and is taking place in Mumbai. The Lintas Media Group has handled the media duties for the brand since 2008. Leo Burnett is the creative agency on the account. The agency's latest work for the house loans arm of the company includes the print campaign, 'Kyunki yaadein ghar nahin badla karti', launched in December, 2012. Earlier, the company released a campaign in 2011, which conveyed the message that with Tata Capital's Home Loans, one can begin to feel the joy of owning a home. Another campaign for the brand came out in December, 2011, which asserted that 'We only do what's right for you' or 'Kare Vahi Jo Aapke Liye Sahi'. Launched in 2007, the brand is considered nascent in the category. The different financial services offered by the company include commercial finance, ...

Air Asia and Tata Group which have proposed to set up a domestic airline along with Arun Bhatia of Telestra Tradeplace, have sought approval for renting and leasing of aircraft, besides carrying of air freight. According to sources, in its application to the FIPB, the partners have also sought permission for engaging in ancillary activities. "Other activities for which they have sought permission include air transport carriers (of freight), cargo handling, renting and leasing of aircraft," a source said. The application for renting and leasing of aircraft, however, does not include financial leasing. The Malaysian budget carrier had sought the government nod to launch a new airline through a joint venture with the Tata Group and Bhatia. Air Asia CEO Tony Fernandes has said that the new airline may take to the sky by this year-end with 3-4 Airbus A-320s, and his company will initially invest around $50 million. An application has already been moved by Ai...

The Tata Group has been increasing its investment in the solar power business. The tea-to-telecom conglomerate recently invested in Zurich-based solar technology developer Flisom, which raised capital for the third time. The group, through Tata Industries , is already a strategic investor in eight-year- old Flisom, which was spun off from the Swiss Federal Institute of Technology. Flisom, which also has other investors, will use the proceeds to set up a 15 MW solar module plant in Switzerland. The Tata Group supports Flisom as it believes that the Swiss company's technology has the potential to make solar electricity affordable. In 2011, the group bought out British oil major BP's 51% stake in Tata BP Solar, a manufacturer of solar modules, and its access to BP's solar technology expires this year. Sandip Ginodia A BHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit : www.abhisheksecur...