Hide News  Power Grid may gain as board approves investment proposals
Mar 27, 2015  08:47

Power Grid Corporation of India said its board has approved a total investment of Rs 2066.45 crore in four separate projects.

The board approved creation of 400/220 kilovolt (kV) substations in NCT of Delhi during 12th Plan Period (Part-A)' at an estimated cost of Rs 1394.52 crore, with commissioning schedule of 26 months from the date of investment approval.

The board also approved Sub-Station extension works associated with Eastern Region Strengthening Scheme - VII (ERSS-VII)' at an estimated cost of Rs 71.35 crore, with commissioning schedule of 24 months progressively from the date of investment approval with best efforts matching with the completion of associated transmission lines being implemented under Tariff Based Competitive Bidding.

Further, the board approved Substation Works associated with Hyderabad (Maheshwaram) Pooling Station' at an estimated cost of Rs 550.06 crore, with commissioning schedule of 36 months progressively from the date of investment approval.

The board also approved transmission system associated with Solapur STPP (2x660MW) Part-A project of NTPC (Part-AY at an estimated cost of Rs 50.52 crore, with commissioning schedule of 24 months from the date of investment approval.

Idea Cellular and Yes Bank replace DLF and Jindal Steel & Power as constituents in the 50-unit CNX Nifty index today, 27 March 2015.

Telecom stocks will be in focus. The spectrum auction in 1800 MHz, 900 MHz, 2100 MHz and 800 MHz band, which commenced on 4th March 2015 and ended on 25th March 2015 after 115 rounds over 19 days, has fetched over Rs 1.09 lakh crore. In all 470.75 MHz has been put to auction in various LSAs. (in 800, 900, 1800 & 2100 MHz bands.) This compares with 390 MHz in November 2012 and 426 MHz in February 2014.

There was robust activity in the all the spectrum bands and vibrant bidding. Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300% over reserve price in some instances. Over 88% of the spectrum on offer has been provisionally committed at a value of over Rs 1.09 lakh crore. Overall increases over estimated proceeds from auction is about 37%.

Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries (RIL) announced before market hours today, 27 March 2015 that it has successfully acquired the right to use spectrum in 13 key circles across India in the recently concluded spectrum auction conducted by DoT, Government of India. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem.

With this investment, in addition to the pan-India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. This combined spectrum footprint across frequency bands provides significant network capacity and deep coverage. 800MHz is a popular choice for sub-GHz LTE implementation globally by leading operators across North America, South Korea, Australia and other markets to enhance coverage and service experience. In addition, in the Indian context, LTE implementation in this band has greater potential given spectrum availability in the future.

Through this acquisition, RJIL's total equivalent spectrum footprint has increased from 597.6MHz to 751.1MHz (including uplink and downlink), strengthening its position as the largest holder of liberalized spectrum. The payment to be made for the right to use this technology agnostic spectrum for a period of 20 years is Rs 10077.53 crore.

Idea Cellular said before market hours it has successfully retained the crucial 900 MHz spectrum and won 54 MHz of 900 MHz Spectrum, out of overall win of 79.4 MHz Spectrum, for nine of its leadership Service Areas covering over 73% of the company's revenues. The provisional results of the spectrum auction were announced by the DoT, after the approval of the Supreme Court.

Bharti Airtel said before market hours that it has acquired 111.6 MHz of prime spectrum across 900 MHz, 1800 MHz and 2100 MHz bands for a total consideration of Rs 29130 crore in the just concluded spectrum auction conducted by the Government of India. Of this, Rs. 17618 crore has been spent on the renewal of existing spectrum while the balance Rs 11512 crore has been spent on procuring new spectrum. The company's spectrum acquisition strategy is aimed at enhancing its leadership position in the fast growing data segment in the country. The auction results are subject to the outcome of the decision by the Supreme Court.

The company has successfully renewed all its spectrum holdings in the 900 MHz band in Andhra Pradesh, Karnataka, Punjab, Himachal Pradesh, Rajasthan and North East circles. It has also acquired additional spectrum in the 900 MHz band in key leadership circles of Karnataka, Andhra Pradesh, Punjab, Himachal Pradesh, North East, Assam, Bihar and Orissa. Bharti Airtel has also acquired 1800 MHz spectrum across Punjab, Andhra Pradesh, Kolkata, Orissa, Haryana and North East. The Company has added to its spectrum holding in the 2100 MHz band by acquiring fresh spectrum in Gujarat, Maharashtra, Orissa, Uttar Pradesh (East), Madhya Pradesh, Haryana and Tamil Nadu circles. Post the latest spectrum acquisition, Bharti Airtel's spectrum mix will give it unmatched reach in the mobile data segment across 3G and 4G with a pan India footprint. The company will be able to offer pan India 4G services using a combination of FD-LTE technology in the 1800 MHz band and TD-LTE roll-out in the 2300 MHz band. It will also be able to offer 3G across all markets with the exception of Kerala using a combination of 900 MHz and 2100 MHz.

Reliance Communications said before market hours that total bids by RCom in the spectrum auctions stood at Rs 4299 crore with upfront payment at Rs 1106 crore.

Biocon said before market hours the Board of Director vide its Circular resolution dated 26 March 2015, has approved the payment of interim dividend at a rate of 100% i.e. Rs 5 per share for the Financial Year 2014-15.

The government said NTPC had earlier issued, by way of bonus, one fully paid-up, secured debenture of Rs 12.50 each, for every one fully paid-up equity share of Rs. 10 each held by its members. The issue size of the bonus debenture is of Rs 10306.83 crore and is also the biggest issue of its kind in the Country and also the first ever by any PSU. The Bonus Debentures carries the Coupon Rate of 8.49% p.a. payable annually and has been allotted.

The Government of India received 618.06 crore bonus debentures amounting to Rs 7725.76 crore by virtue of its 74.96% shareholding in NTPC. In addition to the bonus debentures, the Government of India has also received Rs 2060.75 crore as dividend distribution tax on the debentures.

Andhra Bank said the government has infused Rs 119.99 crore in the bank on 25 March 2015 by subscribing equity shares of the bank on preferential basis. The bank issued 1.32 crore equity shares at Rs 90.69 each to Government of India on preferential basis.

Cadila Healthcare has purchased 50% shares of Zydus BSV Pharma (Zydus BSV) from Bharat Serums and Vaccines and now Zydus BSV has become 100% subsidiary of Cadila Healthcare.

IRB Infrastructure Developers announced that Offering Committee for qualified institutional placements (QIP) of the company at its meeting held on 26 March 2015, approved the issue and allotment of 1.90 crore equity shares to eligible Qualified Institutional Buyers (QIB) at the issue price of Rs 230.54 per share, aggregating to Rs 440 crore.

Shoppers Stop has closed its one Mothercare store at Select City Walk at New Delhi. With the closure of this store, the Company has now 41 Mothercare stores.

Gati said that India Ratings & Research (Ind-Ra) has assigned a Long-Term Issuer Rating of IND A- (i.e., the outlook is stable). The rating assigned will be further leveraged by the company to optimize interest cost in the coming quarters.

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