Need To Know | S&P cuts Tata Motors’ rating on slow demand

Need To Know | S&P cuts Tata Motors’ rating on slow demand
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First Published: Fri, Dec 12 2008. 11 23 PM IST
Updated: Fri, Dec 12 2008. 11 23 PM IST
Mumbai: Tata Motors Ltd, India’s largest commercial vehicle maker, had its corporate credit rating cut by Standard and Poor’s (S&P), citing a faster-than-expected deterioration in automobile demand. The rating was lowered to “BB-” from “BB,” S&P said in a statement Friday.
Bloomberg
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Airlines register fall in passenger traffic in Nov
New Delhi: Domestic airlines have reported a fall of 22% in passenger traffic in November, compared with the same month last year, according to data released by Directorate General of Civil Aviation on Friday.
About 3 million passengers flew local carriers in November, down from 3.8 million last year. The number fell 4.3% from October, although November is typically a month with higher demand.
InterGlobe Aviation Pvt. Ltd-run Indigo increased its market share to 14.7% from 12.8% in October, while Kingfisher Airlines Ltd saw its biggest drop in market share from 14.2% to 11.6%, while its low-fare service Kingfisher Red maintained its market share of 13.3% Jet Airways (India) Ltd, too, ceded its share from 19.7% in October to 19%, while its subsidiary JetLite dropped market share to 7.7% from 8.1%. SpiceJet Ltd jumped from 9.5% to 10.8% as did Paramount Airways Pvt. Ltd, from 1.7% to 2.4%.
National Aviation Co. of India Ltd-run Air India maintained its market share of 18%.
Tarun Shukla
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SpiceJet allots warrants to Mauritius-based firm
New Delhi: Budget air-carrier SpiceJet Ltd said on Friday it has allotted at least 1.53 million warrants to Mauritius-based GS Investment Partner Ltd for a lock in period of one year. “The warrants shall be under lock-in up to 11 December,” SpiceJet told Bombay Stock Exchange.
GS Investment would have an option to apply and be allotted equivalent equity shares against the warrants, the filing added.
PTI and Staff Writer
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HSBC lays off 193, redeploys 620 more
Mumbai:Hongkong and Shanghai Banking Corp. Ltd (HSBC) said on Friday that it would lay off 193 people in its consumer asset business in India, and has reassigned 620 workers from the unit across the bank and other group entities in the country. The consumer asset business includes personal loans, home loans, credit cards, and other consumer finance loans.
In an email response, the bank said the move came following a restructuring of the business given the current economic conditions, and that laid-off employees would get first preference should there be openings next year.
Anita Bhoir
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Lawmakers criticise AICTE’s inspection
New Delhi: A panel of lawmakers has criticised the functioning of the All India Council for Technical Education—the controversial regulator of private business and engineering schools in India—but has not suggested any significant reforms.
The parliamentary standing committee on human resource development, in its report to Parliament on Friday, found fault with AICTE’s role in approving new institutes, in its selection of inspection teams, and in its failure to collect data on the growth of technical education in the country.
“The committee wonders if there is any prescribed criteria for selection of experts for the inspection team, and if it exists, whether it is being strictly adhered to,” said the report, signed by lawmakers including Rahul Gandhi.
AICTE has battled private colleges over allegations that its inspectors ask for bribes to approve new seats or courses. In a series of articles, beginning in November last year, Mint highlighted these allegations of corruption.
Aparna Kalra
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World Bank plans $14 bn programme for India
Mumbai: The World Bank plans a $14 billion (Rs68,180 crore) lending programme for India over the next three years speeding up infrastructure programmes and supporting the nation’s seven poorest states, the agency said on Friday. The bank will focus on poverty reduction and meeting Millennium Development Goals in the low-income states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh.
Bloomberg
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NPPA cuts drug prices, asks producers to follow
New Delhi: The drugs price regulator has asked the pharma industry to reduce prices of medicines that do not fall under the government’s price control following a reduction in excise duties from 8% to 4%. “Prices of all non-scheduled packs must accordingly be reduced downwards by 2.84%,” says the National Pharmaceutical Pricing Authority’s (NPPA) guideline dated 10 December. Medicines produced in states such as Himachal Pradesh and Uttarakhand will not be affected as they don’t pay any excise duty.
Radhieka Pandeya
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Wockhardt may put overseas unit on sale
Mumbai: Drug maker Wockhardt Ltd may put up its recently-acquired overseas subsidiary Pinewood Laboratories Ltd in Ireland for sale, according to a merchant banker, who declined to be named. An email query sent to Wockhardt on Thursday to confirm the development remained unanswered on Friday.
Mint had reported in November that Wockhardt has been in talks with a few private equity firms and strategic partners to raise around $150-$200 million to pay for liabilities of $142.5 million due in October for redemption of $110 million worth of foreign currency convertible bonds, which the company issued in 2004 at a conversion price of Rs486 per share.
C. H. Uniikrishnan
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Champions League T20 in India put off
New Delhi: This year’s edition of the Champions League Twenty20 tournament has been cancelled over security concerns following the Mumbai attacks, organizers said on Friday.
The inaugural edition of the $6 million (Rs29 crore) event, involving eight teams from five countries, will now be staged in October, an official said.
Teams from Australia, England, Pakistan, South Africa and India were due to participate in the event scheduled for this month.
Reuters
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Indiabulls withdraws employee stock option scheme
New Delhi: Indiabulls Real Estate Ltd has cancelled and withdrawn a employee stock option scheme of the company that covered 1.5 million stock options, the company said in a statement to the Bombay Stock Exchange (BSE).
“In its place, Indiabulls will launch a new employee stock option scheme under which stocks will be issued at a lower price than what it was issued at earlier,” said Gagan Banga, chief executive officer, Indiabulls Financial Services Ltd.
He did not state the price at which the employee stock options were earlier issued at.
“This is being done keeping in mind the market conditions as the valuations have come down,” Banga said adding: “It will benefit the employees.”
The shareholders of the company passed these resolutions by postal ballot, Indiabulls said in a statement to the BSE.
The company will now issue two million stock options to permanent employees of the company, including directors except promoter directors, at a lower price. The scheme would also be extended to the employees of the company’s subsidiaries including directors, the company said.
Shares of Indiabulls Real Estate closed 1.83% weaker at at Rs126.25, while the BSE Sensex closed 0.46% higher.
Shabana Hussain
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After Jet, Kingfisher to pay 3% commission to travel agents
New Delhi: Kingfisher Airlines Ltd has agreed to pay 3% commission on the total ticket price to travel agents following rival carrier Jet Airways (India) Ltd’s agreeing to do so earlier this week, according to Travel Agents Associatin of India (TAAI) presdient. “Kingfisher Airlines too has now announced a similar decision to pay all IATA travel agents a commission of 3% on all tickets issued in India effective 11 Dec 08,” said TAAI presdient Rajji Rai.
A Kingfisher Airlines spokesman confirmed the decision.
Tarun Shukla
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Air passenger traffic falls in November
New Delhi: Domestic airlines have reported a fall of 22% in passenger traffic in November, compared with the same month last year.
However, most low-cost airlines have increased their market share at the expense of so-called full-service carriers, according to data released by Directorate General of Civil Aviation on Friday.
About 3 million passengers flew local carriers in November, down from 3.8 million last year. The number fell 4.3% from October, although November is typically a month with higher demand.
InterGlobe Aviation Pvt. Ltd-run Indigo, that has 19 aircraft, increased its market share to 14.7% from 12.8% in October while Kingfisher Airlines Ltd saw its biggest drop in market share from 14.2% to 11.6%, while its low-fare service Kingfisher Red maintained its market share of 13.3%
Jet Airways (India) Ltd, too, ceded its share from 19.7% in October to 19%, while its subsidiary JetLite dropped market share to 7.7% from 8.1%. Low-fare carrier SpiceJet Ltd jumped from 9.5% to 10.8% as did Paramount Airways Pvt. Ltd, from 1.7% to 2.4%.
National Aviation Co. of India Ltd-run Air India maintained its market share of 18%.
Occupancy levels on flights showed a jump for some carriers and a decline for others.
Air India flew its planes 57.5% full and Kingfisher Airlines 58.4%, while Paramount Airways with 80.6%, MDLR Airlines Pvt. Ltd with 76.3% and IndiGo with 73% reported higher average passengers to a flight.
Tarun Shukla
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First Published: Fri, Dec 12 2008. 11 23 PM IST