The Mint Report for 12 October 2010

The Mint Report for 12 October 2010

New Delhi: The RBI may have fewer reasons to increase rates again this November. That’s because growth in India’s industrial output has fallen drastically in August. Figures released on Tuesday show the index of industrial production for the month grew a mere 5.6% on a year on year basis. The revised figure for July is 15.2%. IIP numbers have been fluctuating in recent months, largely because of capital goods. For August, capital goods production fell 2.6%. In July it had shot up a full 72%. Just last month, the RBI had criticized the index for its volatility and indicated there were doubts about its effectiveness.

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The price band for Coal India’s IPO has been set. Its range will be Rs225-245. That could make the government more Rs15,000 crore from the 10% stake it’s selling. Currently the government owns a full one hundred percent of the company. Coal India’s IPO is scheduled to take place between 18-21 October.

Also in corporate developments, Kalanithi Maran is increasing his control over SpiceJet. He and his company Kal Airways bought an extra 7.42% stake in the airline. The transaction was worth Ra135 crore. Maran now owns just over a quarter of SpiceJet. Under a deal in June, Maran and Kal Airways are supposed to pick up a total of 37.7% of the airline.