Govt opens door to foreign retailers...Approves 51% FDI in multi-brand retail

The Union Cabinet on Thursday approved a proposal to allow foreign giants like Wal-Mart to enter multi-brand retail in the country. But the Centre’s move has drawn criticism from various opposition parties. In fact, even UPA allies like Trinamool Congress and DMK are apparently against the decision. In this context, Friday’s parliament session will be interesting after three days of near wash-out. The Cabinet has cleared up to 51% foreign direct investment (FDI) in multi-brand retail, and up to 100% FDI in single brand retail. At present, the Government allows up to 51% FDI in single brand retail, up to 100% in cash and carry (wholesale) business. FDI is not allowed in multi-brand retail currently. The Finance Ministry reportedly gave its consent to the draft Cabinet note on opening the multi-brand retail to foreign investment. The Department of Industrial Policy and Promotion (DIPP) had earlier circulated a draft Cabinet note to seek inter-ministerial views on the issue. Shares of retail companies like Pantaloon Retail, Provogue India and Shoppers Stop rose are yesterday on reports that the Union Cabinet will take up a proposal on allowing FDI in multi-brand retail besides considering increasing the FDI limit in single brand retail. The policy will allow foreign retailers to set up shop only in cities with a population of more than 10 lakh as per the 2011 Census. There are 55 such cities in India currently. Foreign investors will be required to invest up 50% of total FDI in back-end infrastructure, excluding the land cost and rentals. Retailers will need to source at least 30% of manufactured/processed products from small industries, excluding agricultural items. The Government has also retained the first right on sourcing agricultural produce. In terms of single-brand retail, the Government has made 30% sourcing from SMEs mandatory once the FDI limit exceeds 51%.

For or against FDI in retail?... Politicians are split

FDI in retail to create 10mn jobs in 3 years: Anand Sharma

Foreign investments in India retail sector will inject competition: ASSOCHAM

Reliance Retail welcomes decision on opening up retail sector

Opening up of retail sector to foreign investment is win-win-win scenario: Kishore Biyani

Ratan Tata successor - Cyrus Pallonji Mistry is unanimous choice

The wait is finally over. Cyrus Pallonji Mistry is all set to succeed Ratan Tata at the top job in Tata Sons. The selection committee has unanimously recommended Mistry's name. Cyrus Mistry was a director of Tata Sons and Tata Elxsi (India) and graduated from the Imperial College, London with a BE in civil engineering. He also holds a masters degree in management from the London Business School, and is a fellow of the Institution of Civil Engineers. Cyrus Mistry, 43, was named deputy chairman of Tata Sons yesterday and will succeed Ratan Tata when he retires in December 2012. Cyrus Mistry's father Pallonji Mistry is the biggest shareholder in Tata Sons with a stake of 18%. Pallonji Mistry has been a director of Tata Sons since 2006. Forbes & Co. is part of the multi-billion dollar Shapoorji Pallonji Group. Cyrus Mistry’s elder brother Shapoor Mistry is Chairman of Forbes & Co. Pallonji Mistry's daughter and Cyrus Mistry's sister is married to Ratan Tata's half-brother Noel Tata, who was also in contention for Tata group Chairman's post. In August 2010, the Tata group named a five-person panel, which included Cyrus Mistry himself, to look for a successor to Ratan Tata. The panel met 18 times, and when Cyrus Mistry became a candidate for the top position in the Tata group conglomerate, he excluded himself from deliberations. Cyrus Mistry will be the sixth chairman of the 143-year-old group, and just the second non-Tata chief. The Tata group was founded as a textile business in 1868 by Ratan Tata's great-grandfather, Jamsetji Tata. Tata Sons holds the bulk of shares in key companies, and trusts endowed by the Tata family own 66% of Tata Sons.

Cyrus Mistry statement on appointment as Deputy Chairman of Tata Sons

Cyrus Mistry appointment is a good and far-sighted choice: Ratan Tata

Source: Economist

Indian mobile handset sales to touch 231mn units

Mobile device sales in India are forecast to reach 231mn units in 2012, an increase of 8.5% over 2011 sales of 213mn units, according to Gartner, Inc. The mobile handset market is expected to show steady growth through 2015 when end user sales will surpass 322mn units.

The Indian mobile device market is very competitive with more than 150 manufacturers selling devices to consumers. While most of the local and Chinese manufacturers have remained focused on low cost devices, some manufacturers have built capabilities to deliver smartphone devices and even ventured into other global markets.

"The big global brands will continue to face competition from local and Chinese brands as some of these brands are building capabilities to compete at a larger level covering broader consumer segments," said Anshul Gupta, principal research analyst at Gartner. "G’five, Karbonn Mobile and Micromax occupied third, fourth, and fifth positions after Nokia and Samsung in the third quarter. "

India, accounting for approximately 12% of worldwide sales, is an important market for device manufacturers, with aspirations to grow their global market share. Due to its sheer size and open market (mobile devices being sold independently of cellular connection), it has attracted many global mobile device manufacturers. The market is also supported by many local manufacturers. Mobile manufacturers also are competing against many brands in the black markets who areselling without invoices...Read More

Less than 2% mobile users change operators under

Promoters of one-third listed companies pledge shares: CRISIL

Rupee crumbles below 52 per dollar mark

The rupee dropped below 52 per dollar mark, as global investors continued to shun risky asset classes like emerging market equities and currencies. The partially-convertible Indian currency fell on all but one day of the week. The rupee ended the week at 52.2550 after being as low as 52.73 earlier in the week. The rupee is down ~14-15% this year. From its 2011 high reached in late July, it has lost ~17%.

The RBI eased rules for companies to borrow abroad and sell foreign currencies through swaps besides raising the interest rate on bank deposits for non-resident Indians. The RBI has removed a US$100 million limit on net foreign-currency sales via swaps. Companies borrowing abroad can now pay as much as 3.5% over the London Interbank Offered Rate (Libor) for loans longer than three years and up to five years, raising the cap by 50 basis points, or 0.5%. For non-resident Indians, the spread over Libor was increased by between 25 basis points and 100 basis points for two different deposit plans.

The RBI Governor D. Subbarao said that he could not comment on whether the central bank was intervening in the foreign exchange market to stem the rupee's slide, but it was watching the situation and would ensure the exchange rate does not impair economic stability. The exchange rate movement, especially in the last three to four days was driven by global dynamics and the RBI expects reverse adjustment to take place when the European situation resolves itself, Subbarao told reporters in Hyderabad on the sidelines of a conference. "Till then obviously I can't comment whether the RBI is intervening or not but we are watching the market," he said. Subbarao said that the RBI's rupee policy remains the same. "Our (RBI's) policy remains the same, which is to manage volatility in exchange rate and to ensure that exchange rate volatility does not impair macro-economic stability," he said....Read More

Rupee may slide to 55.10 against dollar by March 2012: ASSOCHAM

Food inflation hits 9-week low...Fuel inflation steady

Food inflation in India fell sharply in the second week of November to touch its lowest level in nine weeks, and fuel inflation too remained static, data released by the Government showed on Thursday. The drop in food inflation could provide some much-needed breather to the consumers as well as the policymakers. However, one must wait and see if this is a broader trend or just a temporary relief. Food inflation declined to 9.01% in the week ended November 12 from 10.63% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 11.38% in the corresponding week last year. Inflation in the Primary Articles group also fell to 9.08% in the week under review, from 10.39% in the week ended November 5, according to the Commerce Ministry statement. It was at 15.18% in the year-ago period. Inflation in the Fuel & Power group stood at 15.49% in the week ended November 12, unchanged from the previous week, the Government data showed. It was at 10.57% in the comparable week of the previous year. Inflation in the Non-Food Articles space slid to 4.05% in the week under review from 5.33% in the previous week, the Government data showed. It was at 23.64% in the same period a year earlier. Inflation in the Minerals group rose to 18.51% in the week ended November 12 from 18.02% in the week ended November 5, according to the Commerce Ministry data. Inflation in this group stood at 28.87% in the year-ago period.

On an annual basis, onions turned cheaper by ~33% in the week under consideration, but vegetable prices jumped ~17.6% on an annual basis. Fruits turned costlier by ~4.5% year over year, while Milk prices increased ~10.5% and Egg, Meat & Fish became pricey by ~12% compared to the year-ago period. Potato prices were up ~7.2% on an annual basis while Cereal prices went up by ~3% year over year. Prices of Pulses jumped by ~14.3%. Annual inflation in Rice stood at ~2.75% while Wheat prices fell ~3%. In the Non-Food category, prices of Fibres jumped by ~7.3% year-on-year while that of Oilseeds rose by ~11% from a year ago. In Fuel category, LPG prices are up ~14.3%, petrol by ~29.6% and diesel by ~9.2%. Inflation is expected to moderate if the current easing trend in weekly food and fuel prices continues, Finance Minister Pranab Mukherjee said. "If this trend continues for the next two weeks for the month of November, I hope there will be a moderation in inflation," Mukherjee said.

Inflation has been stable since August: FM

Since August, when the Parliament last discussed the price rise issue, overall WPI inflation has been stable, Finance Minister Pranab Mukherjee told the Lok Sabha on Tuesday. The Finance Minister also urged the RBI to take into account the important concern of balancing the targets of controlling inflation and keeping up growth and employment generation. He also assured the House that the Government was committed to bring down inflation to more acceptable levels. "I hope to see the March end inflation between 6% to 7%," he said. Inflation was at 9.8% in August and 9.7% in September and in October. During this period, food inflation first declined from 9.6% in August to 9.2% in September and then rose to 11.1% in October. However, there was appreciable decline in non-food primary inflation from 18.2% in August to 7.7% in October. The inflation in manufactured goods also declined from 7.9% to 7.7%. During the past three months, certain food items, namely, fruits & vegetables, egg, meat, fish and milk have been the major contributors to food inflation, the Finance Minister said in his suo-Moto Statement on inflation. Along with fuel and power items, which exhibited a rising inflation in October, it has led to the stickiness in headline inflation, Mukherjee said...Read More

High food prices may warrant more RBI action: Subbarao

Further monetary action from the Reserve Bank of India (RBI) cannot be ruled out as it tries to anchor inflation expectations amid persistently high food prices, central bank Governor D. Subbarao said on Tuesday. "The direct role of monetary policy in combating food price pressures is limited, but in the face of sustained high food inflation, monetary action may still be warranted to anchor inflation expectations," Subbarao said at the 25th Annual Conference of the Indian Society of Agricultural Marketing at Hyderabad. The RBI has raised rates 13 times since March 2010 to tame spiraling and sticky inflation largely driven by high food prices.  But in its last policy meeting, the RBI hinted that it could hold rates steady in December policy review and maintain status quo if inflation remains within its projected trajectory. A lasting solution to food price pressures lies in a supply response that raises agricultural production and productivity, improves supply chain management and sets the right incentive framework for both producers and consumers, the RBI Governor said.  The outlook on food inflation in the short to medium term will be determined by the speed and quality of such a supply response by the Government, he added. Government data released last week showed that India's food inflation rose 10.63% and the fuel inflation surged 15.49% in the year through Nov. 5. On the rupee hitting a new record low today, Subbarao said that the RBI's rupee policy remains the same. "Our (RBI's) policy remains the same, which is to manage volatility in exchange rate and to ensure that exchange rate volatility does not impair macro-economic stability," he said. Subbarao added that exchange rate movement, especially in the last three to four days was driven by global dynamics and the RBI expects reverse adjustment to take place when the European situation resolves itself.

Dynamics of food inflation have changed: RBI chief

RBI unveils norms to allow banks, NBFCs to float IDFs

The Reserve Bank of India (RBI) on Monday issued guidelines to allow banks and non-banking financial companies (NBFCs) to sponsor infrastructure debt funds (IDFs). The RBI guidelines on IDFs are based on the parameters that the central bank had issued in September. NBFCs trying to set up IDFs should have been operational for at least five years, should have minimum net owned funds of Rs. 3bn and a capital adequacy ratio of 15%. Besides, its net non-performing assets (NPAs) should be less than 3% of net advances. It should also have earned profits for the last three years, the RBI said. IDFs may be set up either as mutual funds or NBFCs, the RBI said. 

The move will help garner long-term resources for the infrastructure sector. The investors in IDFs would be primarily domestic and off-shore institutional investors, especially insurance and pension funds which would have long term resources. The Government has said that the infrastructure sector requires an investment of US$1 trillion during the 12th Five Year Plan beginning next fiscal year. Of this, 50% of the funding is expected to come from the private sector. In his Budget speech for FY12, Finance Minister Pranab Mukherjee had announced setting up of IDFs to source long-term debt, both from foreign, as well as domestic investors. Taxation rules were also eased to make IDFs more attractive to off-shore funds. IDFs set up as MFs would be regulated by the Securities and Exchange Board of India (SEBI), while those set up as NBFCs would be regulated by the RBI.

RBI removes cap of US$100mn on INR swaps

The Reserve Bank of India (RBI) has decided to remove the above limit of US$100 million placed on Foreign Currency – INR swaps transactions. In a circular issued on December 28, 2010, the RBI had stated that swap transactions may be undertaken by AD Category I banks as intermediaries by matching the requirements of corporate counterparties. "While no limits are placed for undertaking swaps to facilitate customers to hedge their foreign exchange exposures, a limit of USD 100 million was placed for net supply of foreign exchange in the market," the central bank had said in that circular. But, on a review, the RBI has decided to remove the above limit of US$100 million placed for these swap transactions.

2G scam...Five corporate honchos get bail

Five India Inc. executives, who are accused in the 2G scam, have been granted bail by the Supreme Court, sending shares of RCOM, Unitech and DB Realty higher in a weak market. The five persons in question are: Sanjay Chandra of Unitech, Swan Telecom director Vinod Goenka and three Reliance-ADAG executives, Gautam Doshi, Hari Nair and Surendra Pipara. A bench comprising Justice GS Singhvi and Justice HL Dattu delivered the order on the bail pleas of five corporate honchos in the 2G case. They are presently lodged in Tihar Jail. The Delhi high court had denied them bail in the 2G case after the CBI opposed it saying that the accused were likely to tamper with the evidence and influence witnesses. The apex court directed the five accused to furnish two sureties of Rs. 5 lakh each. The bail to the five corporate officials has given hope to the other accused in the 2G case, including disgraced former Telecom Minister A. Raja and DMK MP Kanimozhi. On December 1, the Delhi High Court will hear the bail plea of Kanimozhi and four other accused, including Kalaignar TV Managing Director, Sharad Kumar, Director of Cineyug Media & Entertainment, Karim Morani, and Directors of Kusegaon Fruits & Vegetables, Asif Balwa and Rajiv Agarwal. Raja has not filed any application for bail so far. All the 2G accused are facing charges of criminal conspiracy, cheating, forgery and some provisions under the Prevention of Corruption Act, including abatement of offenses. The charges also include criminal breach of trust, which is punishable with imprisonment for life, or imprisonment for a term extending up to 10 years and fine.

Sharad Pawar attacked by youth in Delhi

Union Agriculture Minister Sharad Pawar has reportedly been attacked by an unidentified person in New Delhi. Reports said that the youth attacked the Nationalist Congress Party (NCP) chief when he was coming out of the office of New Delhi Municipal Corporation (NDMC) after attending a function. The youth, who has been identified as Harvinder Singh, was apparently present at the function and slapped the Agriculture Minister on his face besides also punching him in his back. Harvinder Singh has been arrested by the Delhi police. According to reports, the person had in the recent past also assaulted former Telecom Minister Sukhram.

UP assembly approves Mayawati's division plan

The Uttar Pradesh assembly has approved chief minister Mayawati's resolution to divide the state into four states. Chief Minister Mayawati, who had announced the proposal last week, pushed the resolution that intends to divide the state into four parts - Purvanchal, Bundelkhand, Awadh Pradesh and Paschim Pradesh. Mayawati enjoys an overwhelming majority of 219 in the UP House. The Opposition, led by the Samajwadi Party, wanted to bring a no-confidence motion against the Mayawati government today. Opposition MLAs today demanded that the matter be debated before being put to vote. UP will hold state assembly elections in a few months from now.

GSM operators add 7.12 million users in Oct

A total 7.12mn subscribers have been added to the GSM operators in October compared with 6.52mn additions in the previous month. GSM subscriber base with this in the country stood at 625.41mn on October 31. According to reports, Bharti Airtel in October added 0.94mn users, taking its total subscriber base to 173.73 million. Vodafone Essar notched up 0.92mn new subscribers during the month. Its subscriber base reached 145.91 million in October. Idea Cellular with 1.63mn new users taking its total subscriber base to 101.81mn is added highest during the month. Aircel added 0.48mn customers to take its subscriber base to 60.28mn. Reports stated that BSNL and MTNL added 0.51mn and 34,919 new users, respectively, taking their subscriber base to 91.58mn and 5.36mn. MTS added 7.95mn customers, taking its total customer base to 14.06million. Reliance Communications has not been included in the Cellular Operators Association of India (COAI) data, added reports.

New subscribers...Uninor tops with over 2mn

ONGC withdraws FPO documents...May file RHP again

State-run oil and gas explorer ONGC has withdrawn its FPO documents filed with market regulator SEBI apparently on the back of weak market conditions, dealing another blow to the Government's disinvestment programme. Last week, an oil ministry official reportedly said that the ONGC FPO may not take place in the year ending March 31. ONGC will file the red herring prospectus (RHP) again if instructed by the Government, Chairman and Managing Director Sudhir Vasudeva said today. "The withdrawal of RHP is technical. The document filed in September had a validity of 90 days and so we have withdrawn it. It is no reflection if the follow-on offer (FPO) is coming or not," he told reporters in New Delhi. "If and when required, we will file it again," Vasudeva said, adding that the timing will have to be decided by the Department of Disinvestment. ONGC had filed the RHP in September for the FPO whereby the Government had planned to sell a 5% stake, or 427.77 million shares, in the company.

The FPO was to open on September 20, but was put off due to volatile market conditions. After the FPO, the Government’s stake in ONGC was to come down to 69.14% from the current 74.14%. The Government has so far raised a measly Rs. 11.4bn from disinvestment in state-run companies compared with Finance Minister Pranab Mukherjee’s target of Rs. 400 bn for the financial year. The ONGC FPO has been deferred several times this year. The company does not meet market regulator SEBI’s listing norm whereby half of its Board should be made up of independent directors. Three of ONGC’s directors - S Balachandran, SS Rajsekar and Santosh Nautiyal - ceased to be directors on the company’s board on November 10 after expiry of their three-year term. Their replacements are yet to be named.

ICVL eyes coal mining opportunity in Virginia, USA

Continuing with efforts for ensuring raw material security and forging alliances with global entities for tapping new markets, C.S. Verma, Chairman, Steel Authority of India Limited (SAIL), met a high-level delegation from the United States of America headed by Robert F. McDonnell, Governor of the Commonwealth of Virginia, USA, at Ispat Bhavan here today. The Governor was accompanied by Virginia’s Secretary of Commerce & Trade James S. Cheng and State Treasurer Ms Manju S. Ganeriwala. Verma held discussions with the Governor for facilitating acquisition of coking coal assets and companies in the mineral-rich state of Virginia which could become a sustainable source of coking coal for the promoter companies of International Coal Ventures Private Limited (ICVL). McDonnell assured his support in providing ICVL with requisite geological information and in identification of coking coal assets and mines.

He also discussed the possibility of facilitating business between ICVL and small and medium mining companies in Virginia by forming joint ventures, besides exploring opportunities for greenfield locations. The Governor emphasised upon Virginia’s state-of-art rail and port infrastructure required to maintain and build a sustainable working relation with ICVL. In order to facilitate Indian investment in Virginia, an office has been opened by the state in Mumbai. In 2009, Forbes magazine named Virginia the best state in the US for business for the fourth year in a row, while CNBC named it the top state for business in 2007, 2009 and 2011. Annually, Virginia produces over 24 million tonnes of coal and exported over US$ 293 million worth of goods & services to India in 2010, marking a 55% increase in the last two years. Virginia, which boasts of 31 Fortune 500 companies, has a considerable Indian industrial and corporate presence as well.

IOC and BP to explore potential for acetic acid plant

BP and IndianOil have signed an MOU to work together to explore the potential for establishing a 50/50 JV to invest in a 1 million tonne per annum Acetic Acid plant in Gujarat together with associated gasification facilities for production of Synthesis Gas. The proposed Acetic Acid plant would employ BP's latest Cativa XL technology, whilst the gasification facilities would utilise petroleum coke feedstock from Indian Oil. A joint feasibility study is currently underway to confirm the exact configuration of the project, which would have a targeted start-up date in 2015.

Infosys may miss FY12 $ revenue guidance: reports

IT major Infosys Technologies Ltd. said on Monday that it might miss the top end of the FY12 dollar revenue growth guidance due to the volatile and uncertain global economic backdrop. The Bangalore-based company expects to meet the guidance though may not hit the upper end of the annual revenue growth guidance, CFO Balakrishnan was quoted as saying. Infosys was likely to achieve the mid point of the dollar revenue growth guidance for FY12, he told a business channel. "In an uncertain environment like this, it is very difficult to say if we will meet our third quarter guidance," he was quoted as saying. "We have not revised guidance for now but it should not be a surprise if we fail to meet or remain on the lower end of the guidance," Balakrishnan said. "Customers are cautious about spending, which is likely to impact growth," he added. Earlier, media reports said that Infosys was likely to miss the top-end of the 17-19% full year dollar sales growth outlook. Reports also said that the IT major's third quarter and fiscal year sales growth was also likely to fall short.

Pipavav Defence sells strategic stake to US firm

Shares of Pipavav Defence and Offshore Engineering Co. Ltd. rallied on Nov. 22 after the company said that its Board of Directors had approved issue of up to 81,880,000 shares of Rs. 10 each to an international strategic investor in one or more tranches. The shares will be issued to the international strategic investor at a price not less than Rs. 110 per share or price to be determined as per the formula prescribed by market regulator SEBI. The share sale is subject to the approval of the shareholders of the Company and other requisite approvals.  The investment will be a long-term strategic investment in the Company. The investor will initially subscribe to 5% of the paid up capital of the company and within specified time will increase its holding up to 10% of the paid-up capital of the company. The investor is a leading and externally reputed global conglomerate with strong interest in the defence sector. The investor will bring in critical technology required for the manufacture of complex and critical equipment, systems required by the armed forces. The investor will have a right to nominate one director on the Board of the company.

SKIL Infra denies Pipavav Defence share sale rumors

Bharti Airtel, Idea, Vodafone write to PM on 3G roaming issue

Shares of Bharti Airtel and Idea Cellular were under pressure after Sunil Mittal, Chairman of Bharti Airtel, Kumar Mangalam Birla, chairman of the Aditya Birla Group which owns Idea, and Vittorio Colao, Chief Executive Officer of Vodafone Group Plc, asked Prime Minister Dr. Manmohan Singh in a letter to intervene in agreements between operators to share 3G spectrum. They also requested the Government to refund the spectrum fees with interest. The three companies were sharing 3G spectrum and offering services in areas where spectrum was not allocated to them. The Telecom Regulatory Authority of India (TRAI), supporting the Department of Telecom (DoT), stated that sharing of spectrum is a violation of the terms and conditions of the license. The top three telcos, however, disagreed and said that in an earlier communication by the DoT to the TRAI it was said "intra-service area roaming in 3G networks where one of the operators does not have 3G spectrum shall not be treated as spectrum sharing".

SKS Microfinance gains as Vikram Akula quits

The shares of SKS Microfinance rose after Vikram Akula, founder and chairman of the company, said he was resigning. PH Ravikumar, an independent director on the board of SKS India and former chief executive officer of NCDEX, will become non-executive chairman at the country's largest microfinance company. According to reports, the reason for Akula's is not yet revealed, but has stated that his exit was voluntary. Akula will remain a consultant to the Company until the end of March 2012 to assist with transition.

Tata Nano introduces a bouquet of new features

Tata Motors announced for the Tata Nano introduction of a bouquet of features -- of new colours, new interiors, a more powerful gasoline engine and even greater fuel efficiency of 25.4 kmpl, further improving on its record as India’s most fuel efficient petrol car. The car is already available at dealerships, at the same price as before. Making the Tata Nano even more desirable, the car’s 624cc engine has been made more powerful delivering an impressive 38PS of power (earlier 35 PS) and 51Nm of torque (earlier 48 Nm). Yet fuel efficiency, already a high point with Tata Nano owners, has been taken to a new high of 25.4 kmpl (earlier 23.6 kmpl) as certified by the Automotive Research Association of India (ARAI). The high fuel efficiency, with a low kerb weight of 600 kg, ensures that the Tata Nano at 92.7 gm / km has the lowest CO2 emission among cars in India. With a top speed of 105 km and ability to negotiate inclines with a gradeability of 30%, and a class-leading turning radius of just 4 metres, the Tata Nano is a perfect combination of power and performance. The ride and handling, also already highly appreciated by existing owners, now has become even better with a revised suspension set-up, including an anti-roll bar at the front, and a steering mechanism made even easier.

While the cabin is quiet, a racier sounding exhaust note now gives the Tata Nano a more assertive road presence. Booster-assisted brakes, already available in the Nano CX and the LX, have now been added to the Nano Standard as well. The Nano CX and LX now have tip-tap mirrors on both the driver and passenger sides. For the Nano Standard, which already has a driver side mirror, the passenger side one can be installed as an accessory. The interiors are completely new with enhanced premiumness in look and feel – luxurious beige in the Nano LX, rich black in the Nano CX and stunning medium graphite in the Standard version. The exteriors are now a veritable vibgyor of 10 colours, eight of them new -- Pearl White, Rouge Red, Aqua Blue, Neon Rush, Serene White, Meteor Silver, Mojito Green, Papaya Orange, Sunshine Yellow, and Champagne Gold. New half or full wheel caps accentuate the distinctiveness...Read More

IDFC to issue tax saving infra bonds

Infrastructure Development Finance Company Ltd has announced a Public Issue of long term infrastructure bonds. The fresh issue of Tranche 1 bonds will open for subscription on 21 November, 2011 and close on 16 December, 2011 or ealier as may decided by the Board of the Company. The Tranche 1 bonds are proposed to be listed on National Stock Exchange of India Ltd and BSE Ltd. The bonds will be issued in one or more tranches not exceeding Rs50bn for fiscal 2011-12. The first tranche bonds will carry interest rate of 9% per annum. The bonds will be issued in one or more tranches not exceeding Rs50bn for fiscal 2011-12. The funds raised through the Tranche 1 bonds issue will be utilized towards "Infrastructure bonds" as defined by Reserve bank of India as defined by Reserve Bank of India in the Regulations issued by it from time to time, after meeting the expenditures of and related to the issue.

L&T Infrastructure Finance to issue tax-saving bonds

L&T Infrastructure Finance Company Limited ("the Company or Issuer") to issue Tranche 1 Bonds starting , on November 25, 2011, through a Public Issue of Long Term Infrastructure Bonds with a Face Value of Rs. 1,000 each in the nature of Secured, Redeemable, Non-Convertible Debentures having benefits under Section 80CCF of the Income Tax Act, 1961, ("Debentures" or "Bonds") aggregating up to Rs. 11,000 million (Rs. 1,100 crore) for FY 2012 (the "Shelf Limit"). The Minimum Subscription will be Five (5) Bonds and in multiples of One (1) Bond thereafter.   The Bond Issue will close on December 24, 2011, or earlier, as may be decided by the Board of the Company. The first Tranche of Bonds ("Tranche 1") will carry an interest rate of 9% per annum payable annually or compounded annually. The Tranche 1 Bonds are proposed to be listed on BSE. The Bonds have been rated ‘CARE AA+’ by CARE and ‘[ICRA] AA+’ by ICRA considered to offer high safety for timely servicing of financial obligations. The Bonds will carry a minimum Lock-in period of Five (5) Years from the Date of Allotment and can be redeemed after Ten (10) Years from the Date of Allotment. The Bond will be issued in dematerialised form and trading can also happen in demat form post the Lock-in period of 5 years from the Deemed Date of Allotment. Redemption /Maturity Date shall be 10 years from the Deemed Date of Allotment. In these Bonds, the Bondholder has 3 exit options. The first one is at end of 5 years, the second after 7 years and the third after 10 years which is at the time of redemption. Bonds can be held either in the physical or in demat form. In the case of Series 1 of the Bonds, the interest rate is 9% payable annually and in the case of Series 2, the interest rate is 9% compounded annually payable at the end of maturity or buyback. The maturity is 10 years from the deemed date of allotment...Read More

NHAI to raise up to Rs 100bn via infra bonds: reports

National Highways Authority of India (NHAI) plans to raise up to Rs 100bn through the sale of tax-free infrastructure bonds to retail investors next month. "The sale should be in the second week of December," G. Suresh, chief general manager for finance at NHAI was quoted as saying. The NHAI bonds will offer 10-year and 15-year maturities to investors, Suresh said. AK Capital Services Ltd., ICICI Securities Ltd., Kotak Mahindra Capital Co. and SBI Capital Markets Ltd. will be lead managers for the sale, he was quoted as saying. Union Minister for Road Transport and Highways C. P. Joshi said on Wednesday that NHAI would raise Rs 100bn through bonds for the development of highways in the country.

Force Motors to sell part stake in Indian JV to MAN

Force Motors Limited, Pune, India (Force Motors) and MAN Truck & Bus AG, Munich, Germany, (MAN) the Joint Venture Partners of MAN FORCE Trucks Pvt. Ltd. (MFTPL) have arrived at an in principle agreement, subject to receipt of approvals, to reorganise their shareholding in the equity share capital of MFTPL and to re-arrange their relationship in respect of MFTPL. Force Motors had conceived in 2003 a project for industrializing in India new generation heavy commercial vehicles. For this purpose, Force Motors had sourced technology from leading German companies like MAN for Engines, Cabs and Axles and from ZF for gearboxes. Based on this licensed technology, Force Motors created a full range heavy vehicle. In 2006 on MAN'S request, with a view to achieve substantial export - this project of Force Motors was converted into a joint venture with 30% equity with MAN. A new Company MAN FORCE Trucks Pvt. Ltd. was formed, the joint venture between Force Motors and MAN. This is engaged in the business of manufacture of Heavy Commercial Vehicles. Later on in 2008 the equity proportion was adjusted to increase MAN shareholding to 50%. Now, subject to receipt of necessary approvals, Force Motors will sell and transfer 55,797,100 equity shares of MFTPL to MAN, for a consideration of Euro 150 Million. Both Force Motors and MAN will continue to co-operate with each other, and with MFTPL, based on the new contractual arrangement being agreed. The above in principle agreement is subject to receipt of all regulatory and other approvals.

Force Motors to invest Rs 7.5bn on new launches

Thomas Cook PLC troubles won't hurt India operations: MD

Thomas Cook Group PLC by virtue of being listed on the London Stock Exchange, issued a notice to the London Stock Exchange indicating that it had deferred the announcement of its financial results that were due on Thursday, November 24, 2011, till discussions with its bankers were concluded. Thomas Cook (India) Ltd (TCIL), in which Thomas Cook Group PLC is a shareholder, is a public limited company listed on the National Stock Exchange and Bombay Stock Exchange, since 1983. Thomas Cook (India) Ltd is a standalone entity and in accordance with the local governance requirements and statutory regulations, has no financial inter-dependencies with Thomas Cook Group PLC. Thomas Cook Group PLC is therefore only a shareholder in Thomas Cook (India) Ltd. Thomas Cook (India) Ltd has been given a rating of A1+ for short term borrowings and AA- for its long term debt by CRISIL.

We would like to re-iterate that the statement issued by Thomas Cook PLC has no impact on TCIL's financial position or operational performance. TCIL had reported improvement in its nine month results which indicated that PAT increased by over 12% to Rs. 512 million from Rs. 456 million; PBT before exceptional grew by 13% to Rs. 766 million from Rs. 633 million and revenue increased to Rs. 3121 million from Rs. 2613 million, an increase of 19%. Current debt-equity ratio is 0.5 : 1. The forward bookings indicate strong demand for our products - across our Travel verticals as well as Foreign Exchange. This development will have no impact on our business, people, customers, suppliers and the services we provide. We continue to operate business as usual.

SKODA launches Yeti 4x2 in India

SKODA Auto India, a fully owned subsidiary of SKODAAuto a.s., Czech Republic announced the launch the new ŠKODA Yeti 4x2, after the success of the earlier launched Yeti 4x4. The range of Yeti is extended with a two-wheel-drive diesel option priced at Rs. 13.20 lakhs ex showroom Maharashtra and is expected to further drive the car's success into new customer groups. The new ŠKODA Yeti will also come in 2 variants which are Active and Ambition. Top propositions such as ESP, Hill Hold Control and Vario Flex will be offered with the new 4x2 model, with further improvement in the car's segment-leading fuel efficiency. The ŠKODA Yeti over the last year has been well received by experts (securing eight automotive awards) and customers alike.Similarly with the Yeti 4x2, ŠKODA delivers class-leading performance, safety,versatility and SUV technologies in the most manageable dimensions. Elegant,generously spacious, uncompromisingly safe, powerful and well engineered, ŠKODAYeti 4x2 will hold the benchmark position in its class...Read More

RIM unveils 3 new BlackBerry 7 smartphones in India

Research In Motion (RIM) announced the launch of three new BlackBerry 7 OS smartphones in India. The BlackBerry Bold 9790 combines the iconic BlackBerry keyboard with a high resolution touch display in a slim and narrow design. The BlackBerry Curve 9350 is the first CDMA-based BlackBerry 7 smartphone to be launched in India. The BlackBerry Curve 9380 is the first-ever BlackBerry Curve smartphone with an all-touch display. These three new BlackBerry 7 based smartphones offer impressively slim and stylish designs with enhanced communications, multimedia, productivity and social connectivity features. "We are pleased with the response that the new BlackBerry 7 operating system is receiving from customers in India and we are very excited to introduce these three new BlackBerry 7 based models here," said Krishnadeep Baruah, Director of Marketing for India at Research In Motion. "These new BlackBerry Bold and BlackBerry Curve smartphones offer compact designs with faster performance, enhanced browsing and richer multimedia, as well as NFC support."...Read More

HTC introduces new HTC Sensation XE

HTC Corporation, a global designer of mobile devices, unveiled the new HTC Sensation XE in India. The first in the new line of HTC’s smartphones to feature Beats Audio technology that delivers studio quality audio, taking HTC’s flagship handset to a new level of high fidelity audio. The HTC Sensation XE offers consumers the ultimate multimedia experience, setting a new standard for audio quality in the mobile market. In addition, the HTC Sensation XE boosts performance and battery life even further with the addition of a blazing fast1.5GHz dual core processor and an extended battery that enables you to listen, watch, speak and browse for even longer. "Audio is a crucial part of any consumer’s mobile experience and we are constantly pushing the audio boundaries to achieve not only improved voice but music, movies and gaming experience," said Faisal Siddiqui, Country Manager, HTC India. "The HTC Sensation XE offers a truly incredible experience that demonstrates our commitment to place consumers at the center of their mobile worlds."

The ultimate audio experience

The HTC Sensation XE is the first handset to offer a Beats Audio experience a combination of software & hardware that allows you to hear music the way the artist intended. When used with the exclusive Beats by Dr. Dre in-ear headphones, the handset automatically switches to the bespoke Beats by Dr. Dresound profile, delivering audio tracks tuned specifically for the headphones. Whether you areusing any of the many music services available in the Android market you will notice fuller bass and crisper vocals and a new level of clarity and range offering audio the way the artist intended it to be heard.

US congressional panel says 'no deal' on deficit cuts

The Supercommittee entrusted to suggest ways to slash ballooning US budget deficit admitted failure to conclude the deal. The panel was tasked with proposing measures to reduce deficits by at least US$1.2 trillion over 10 years. Without a plan, US$1.2 trillion in spending would be automatically cut from across government, according to the bipartisan deal approved in August. A host of spending cuts, such as US$600bn from the Pentagon, would not take effect until 2013, reports said. An imminent payroll-tax increase and the Dec. 31 expiration of extended unemployment benefits will also be left unresolved.

Standard & Poor's and Moody's retained their ratings on the world's largest economy. Fitch Ratings said that it would conclude a review of US sovereign credit ratings by the end of November. US President Barack Obama said that he would veto any measure designed to override automatic budget cuts caused by the failure of a so-called congressional supercommittee to come up with a deficit-cutting deal. Obama said that many Democrats were willing to make concessions to cut entitlement spending but chided Republicans for not listening to "reason" with regards to raising revenue.

Rating agencies affirm US debt rating

Mariano Rajoy wins Spain's parliamentary election

In Spain, People’s Party leader Mariano Rajoy won the biggest parliamentary majority in 29 years. The People’s Party won 186 of the 350 seats in Congress compared with 110 for the Socialist Party’s candidate Alfredo Perez Rubalcaba, based on 97% of the vote counted. That is the worst performance by the Socialists since Spain returned to democracy in 1978.

"Today more than ever our destiny is played out in and with Europe," Rajoy said in an acceptance speech in Madrid. "We will stop being a problem and become part of the solution again." Socialist leader Jose Luis Rodriguez Zapatero didn’t seek re-election. The People’s Party won 10.5 million votes versus the 10.2 million four years ago. Support for the Socialists plunged, with the party getting 6.8 million votes, a drop of about 4.5 million votes from 2008. Rajoy, 56, has pledged to slash the country's budget deficit and regain the nation’s 'AAA' credit rating. Spain is suffering from an unemployment rate of 23% and its borrowing costs are back at the levels Spain was paying before it joined the euro. Spain’s 10-year bond yield rose as high as 6.78% on Nov. 17, the most since the start of the euro. The gap between Spanish and German borrowing costs ended last week at 441 basis points, or 4.41%.

Moody's warns France on 'AAA' rating

Rising government borrowing costs for France and an uncertain economic outlook continue to pose a threat to the outlook for the nation's 'AAA' credit rating, Moody's Investors Service said on Monday. "Elevated borrowing costs persisting for an extended period would amplify the fiscal challenge the French government faces amid a deteriorating growth outlook, with negative credit implications," Alexander Kockerbeck, senior credit officer wrote in Moody's Weekly Credit Outlook. "As we noted in recent publications, the deterioration in debt metrics and the potential for further liabilities to emerge are exerting pressure on France's creditworthiness and the stable outlook (though not at this stage the level) of the government's AAA debt rating," the Moody's note said. "With the government's forecast for real GDP growth of a mere one percent in 2012, a higher interest burden will make achieving targeted fiscal deficit reduction more difficult," Moody's said. The yield on 10-year French government bonds rose 6 basis points to 3.51% today, according to reports. The yield differential between French and German 10-year government bonds rose above 200 basis points last week, a new euro-era high. The CAC 40 index was down 2.6% at 2,918 after being as low as 2,915 and as high as 2,981.

Eurozone composite PMI drops for 3rd straight month

The debt-strapped eurozone's output of manufacturing and service sectors contracted for a third month in a row in November, as the region's credit crisis worsened.   The preliminary Markit composite purchasing managers index (PMI) for the eurozone rose to 47.2 from 46.5 in October, London-based Markit Economics said in an initial estimate today. Economists had forecast a drop to 46.1. The so-called 'flash' composite PMI still signaled persistent contraction of private-sector activity across the 17-nation region. A reading of less than 50 implies fall in the output while a reading of more than 50 signals growth. "Overall, the survey data suggest that the eurozone is contracting at a quarterly rate of approximately 0.6% in the fourth quarter. As feared earlier in the year, malaise has spread from the periphery to the core, with Germany stagnating and France contracting by around 0.5%," said Chris Williamson, chief economist at Markit. Euro area's provisional manufacturing PMI dropped to 46.4 in November from 47.1 in the previous month, Markit said today. A measure of services rose to 47.8 from 46.4 in October. The euro-area economy may expand just 0.5% in 2012 after growing 1.5% this year, the European Commission said on Nov. 10. It had previously forecast growth of 1.8% next year. Data earlier today showed that China's manufacturing sector output may contract this month by the most since March 2009. HSBC's China manufacturing PMI fell to 48.0 in November from 51.0 last month. Forecasts for the HSBC flash manufacturing PMI had called for a reading of 50.1. The final version of the PMI is due out next week. The flash PMI includes roughly 85-90% of total responses which comprise the final version.

German business confidence rises in November

Business confidence in Germany surprisingly improved this month for the first time in five months, sending the euro higher versus the dollar. Germany is the largest economy in the eurozone. The Munich-based IFO institute’s business climate index, based on a survey of 7,000 executives, increased to 106.6 from 106.4 in October.   Economists had expected a decline to 105.2. The euro rose about a quarter of a cent after IFO’s report and traded at US$1.3397 at 10:11 a.m. in Frankfurt. It was up 0.2% at 103.37 yen.  The IFO institute's current conditions index was unchanged at 116.7, while the expectations index, which measures business prospects over the next six months, rose to 97.3 from 97.0. "The German economy is still performing relatively well despite the international turmoil," said IFO President Hans-Werner Sinn. The index is based on around 7,000 monthly survey responses from firms in the manufacturing, construction, wholesale and retail sectors, the institute said.

Fitch downgrades Portugal to junk status

Fitch Ratings on Thursday said that it was cutting Portugal's sovereign credit rating to BB-plus from BBB-minus, putting the country's rating in junk status. The ratings agency also maintained a negative outlook on Portugal, leaving the door open for further downgrades. "The country's large fiscal imbalances, high indebtedness across all sectors, and adverse macroeconomic outlook mean the sovereign's credit profile is no longer consistent with an investment-grade rating," Fitch said in a statement. The ratings firm said that recession will make the government's deficit-cutting plan more challenging and will hurt bank asset quality, but that the government's commitment to the plan was strong. The Portugal PSI 20 index is up 0.2% to 5,241 after being as high as 5,271. It had opened at 5,236. Other European markets were up much more compared to the Portuguese index. Separately, trade unions launched a 24-hour strike in Portugal on Thursday, to protest against the tough austerity measures the government agreed to in exchange for an international bailout package earlier this year. Lisbon's metro, Metropolitano de Lisboa, suspended services for the day while CP-Comboios de Portugal, the country's rail operator, said there would be disruptions to some services. The country's air transport was also likely to be hit due to the union strike. Media reports said that government offices, schools, postal delivery and other public services would also be hit.

China's 'flash' manufacturing PMI slips in November

A provisional reading on the manufacturing sector output in China for November has come in lower than anticipation and weaker than the previous month's level, raising some concerns about the state of the world's second-biggest economy. HSBC's China manufacturing gauge has fallen to 48.0 in November from 51.0 last month. Forecasts for the HSBC flash manufacturing Purchasing Managers Index had called for a 50.1. A level above 50 implies expansion while anything below it denotes contraction. The final version of the Chinese manufacturing PMI is due out next week.

World Bank sees soft landing in China

Japan reports trade deficit in October

Japan has reported a surprising trade deficit in October, missing forecasts for a surplus, as overseas shipments to top trading partner China fell 7.7% while those to US slipped 2.3%. Japan's Ministry of Finance reported a trade gap of ¥273.8 billion ($3.56 billion), missing a forecast for a surplus of ¥55.6 billion. Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial distress in Europe are hurting the nation’s recovery from the March disaster. Shipments abroad fell 3.7% in October from a year earlier. In part, the data reflected production problems for Japanese multinationals from disastrous flooding in Thailand.

Thailand cuts growth forecast due to flood damage

Thailand's government on Monday cut its growth forecast for this year citing the adverse economic impact from the nation's worst flooding in 70 years. Economic growth is forecast to be 1.5% this year from the previous range of 3.5% to 4% announced in August, the National Economic and Social Development Board said in Bangkok today. Thailand's National Economic & Social Development Board issued the revised forecasts along with the quarterly GDP data. Thailand's economy grew 3.5% in the third quarter from the year-earlier period after expanding by a revised 2.7% in the previous quarter, the government reported today. The reading showed slower-than-expected expansion in the July to September quarter before dramatic floods shut down large swathes of industry and disrupted agriculture. A survey of economists had projected a year-on-year expansion of 4.4% for the July-to-September period.

Thailand’s GDP rose 0.5% in the third quarter from the previous three months. The median estimate was for a 1.5% growth. Thai floods have killed hundreds of people, swamped thousands of factories and disrupted supplies for a slew of large companies. The damage from floods may reach 300 billion baht (US$9.7 billion), the board said. The economy is set to contract in the three months through December because of the floods, Arkhom Termpittayapaisith, the board’s secretary general, said at a briefing in Bangkok today. "The situation will be 70% to 80% back to normal in the first quarter," he said. "The economy next year will be boosted by reconstruction spending. The government’s policies to increase income will aid local demand, and machinery replacement after the floods will bolster private investment." The development board said that the economy may expand 4.5% to 5.5% in 2012.

Singapore growth likely to slow in 2012

TSE and OSE to merge...To be world's No.3 exchange

The Tokyo Stock Exchange is planning to merge with Osaka Securities Exchange Co Ltd to cope with sluggish market conditions in Japan, according to reports. The report stated that this move will create powerhouse in Japan dominating both cash equities and derivatives that will rank as the third-largest securities exchange globally. The report stated that both would merge operations in January 2013. The deal will see the Tokyo Stock Exchange pay 480,000 yen (US$6,230.21) for each Osaka Stock Exchange share, which closed at ¥421,000 a piece on Monday on the Jasdaq. The Osaka exchange will retain its public listing following the merger. Shareholders in the Osaka exchange will also receive shares in the Tokyo exchange as part of the deal. The two exchanges cited costs savings of ¥7bn a year from integrating their trading systems as part of the rationale for the consolidation, reports said. Osaka Securities Exchange traded up 3.7% at 436,500 in afternoon trade on the Jasdaq.

Suzuki files for arbitration in VW row

Suzuki Motor Corp. has reportedly filed for international arbitration in the long-running dispute with Volkswagen AG after the German auto major refused to sell back 20% stake to the Japanese company. According to reports, Suzuki initiated arbitration procedures with the International Chamber of Commerce International Court of Arbitration in London. On Nov. 18, Suzuki said that its two-year alliance with the Volkswagen was over and demanded a return of the 19.9% stake the German company had bought for about 1.7 billion euros ($2.27 billion) in January 2009. The arbitration process could take up to two years to resolve the dispute, said reports. "We're very disappointed by this step that Suzuki is taking and cannot understand it in any way," a spokesman for the German carmaker said. "We won't sell our Suzuki stake. If the current management at Suzuki doesn't want to work together with us, then maybe the next generation will," Volkswagen's CEO, Martin Winterkorn was quoted as saying on November 21.

KKR-led group to acquire Samson for US$7.2bn

A consortium led by private equity firm KKR & Co is planning to buy oil and gas group Samson Investment Co for $7.2 bn, according to reports. The report stated that the deal is the second-largest global private equity transaction of the year. KKR has a 60% participation in the consortium, says report. There are reports that the group includes Japanese trading house Itochu Corp, which will invest $1 bn to take a 25 percent stake, as well as two smaller private equity houses.

Merck to settle US Vioxx charge for US$950mn

Merck known as MSD outside the United States and Canada, announced it has reached a resolution with federal and state authorities regarding a previously disclosed investigation concerning Vioxx. Merck voluntarily withdrew Vioxx from the market in September 2004. The company previously recorded a charge of US$950mn in October 2010 in anticipation of today's agreements. Under civil settlement agreements signed with the United States and individually with 43 states and the District of Columbia, Merck will pay approximately two-thirds of the reserved charge to resolve civil allegations related to Vioxx. As a result, the United States and the participating states have released Merck from civil liability related to the governments' allegations regarding the sale and marketing of Vioxx in the United States. Previously disclosed litigation with seven states remains outstanding. The civil settlement does not constitute any admission by Merck of any liability or wrongdoing. "We believe that Merck acted responsibly and in good faith in connection with the conduct at issue in these civil settlement agreements, including activities concerning the safety profile of Vioxx," said Bruce N. Kuhlik, executive vice president and general counsel of Merck.

Nokia Siemens Networks to cut 17k jobs

Nokia Siemens Networks announced its strategy to focus on mobile broadband and services besides launching an extensive global restructuring program. Nokia Siemens Networks said that it was planning to lay off 17,000 jobs, or 23% of its workforce by the end of 2013, to focus on mobile broadband business. The company made an operating profit of 6.0 million euros on sales of 3.41bn in third quarter. "We believe that the future of our industry is in mobile broadband and services – and we aim to be an undisputed leader in these areas," said Rajeev Suri, CEO of Nokia Siemens Networks. "At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market." Nokia Siemens Networks will target end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband. Nokia Siemens Networks targets to reduce its non-IFRS annualized operating expenses and production overheads by EURO 1 billion by the end of 2013, compared to the end of 2011.

Thomas Cook shares plunge on financial woes

The shares of Thomas Cook Group Plc plunged after media reports stated that the company was again renegotiating its banking facilities. It was also stated that Thomas Cook would delay the publication of its full-year results because of deteriorating trading conditions. The stock is down a staggering 70% this year. Thomas Cook shares soared on Oct. 21 after the company’s banks relaxed loan conditions and agreed to provide additional short-term funds, reports said. According to reports, Thomas Cook was in talks with its principal lending banks over the terms of its borrowing following a further deterioration in its trading and cash position. Thomas Cook had struck a deal with its banks in October to relax the terms of its lending but has asked them to consider a further amendment after trading continued to decline, added reports.

Groupon shares tumble below IPO price

Groupon’s shares tumbled, falling well below the price of US$20 a share, for the first time since going public on November 4. Shares in the daily deals company rose on the first day of trading by around 50% on its launch price of US$20 per share, though it soon settled at around US$26. This week, however, Groupon’s share value has sank. On November 23, it fell 16% to US$16.96 per share, taking it below the IPO price for the first time. Groupon raised US$700mn in its IPO. It was the largest IPO by an American Internet company since Google raised US$1.7bn back in 2004. It floated only a small portion of its stock, leaving it more vulnerable to price volatility.