New Delhi: The founder of Jet Airways, Naresh Goyal, could be preparing to reduce his stake in the airline. Goyal currently owns 80% of Jet Airways, but could cut that figure down to 65%. The move is part of Jet’s plan to raise $400 million through a qualified institutional placement. Jet is hoping to use the money to renegotiate vendor contracts and buy winglets. Winglets are wing extensions on planes that reduce drag and increase fuel efficiency.
The high fees at some of India’s airports could go up even more. Operators of the airports at Delhi, Mumbai and Hyderabad plan to increase either their aeronautical charges or development fees to cope with lower-than-expected revenues since the economic slowdown. While operators of the Delhi and Mumbai airports want to increase aeronautical charges like passenger service or aircraft landing fees by 10%, Hyderabad airport wants to hike its user development fee. Consumer groups and airlines have expressed their concerns about the proposed increases in fees.
International Finance Corporation or IFC is going to increase its lending to seven of India’s northern states. IFC has set up a separate unit that will work in these seven states that lag behind the rest of India in average income. It is also investing in microfinance companies in Varanasi, Bangalore and Assam. While India is currently the biggest recipient of IFC money, little of it has gone to rural India. IFC is the private sector lending arm of the World Bank.
The world’s biggest tyre maker is planning a major investment in India. French company Michelin says it will invest Rs4,000 crore to build a tyre manufacturing unit in Tamil Nadu. The plant will be the first Michelin unit in India and the company plans to start operations in 2012.
The government has made it clear that it does not intend to withdraw its economic stimulus any time soon. Instead, it says the stimulus will continue for the rest of the fiscal year and will only be withdrawn gradually. Earlier this month, Prime Minister Manmohan Singh had indicated that his government would begin winding down stimulus measures put into place after last year’s downturn.
The government’s Serious Fraud Investigation Office or SFIO is going to start its prosecution into the Satyam scam later this month. The SFIO has already investigated the Satyam accounting fraud and has submitted its reports to the government.
Cox and Kings has fixed its IPO price band at Rs316-330. The travel and hospitality company will offer 29% of it shares to the public in an IPO between 18-20 November.