Reliance to partner world leaders for new businesses, says Mukesh Ambani

Bullish on adding further financial muscle to energy-to-retail conglomerate led by him, Mukesh Ambani on Friday said Reliance Industries will partner world leaders for entering new businesses in the country.

Although he was silent on specific details for the future course of action of RIL's entry into financial services and telecom businesses, Ambani said that a partnership-led transformation would be one of the top agenda going forward.

"... transformation is at the top of the Reliance agenda for a renewed organisation that will deliver continuous growth," Ambani said.

Addressing shareholders at the company's 37th AGM here, Ambani listed among the top agenda "a partnership transformation that will enable Reliance to partner with world leaders to enter new business domains in India". He also promised "a business transformation that will fundamentally strengthen the constitution and character of the organisation".

Ambani said Reliance was endowed with a strong balance sheet and it was reinforcing its constitution with the business transformation initiative. "Reliance is forging new partnerships to pursue new growth opportunities," he said, while adding that the group was determined to improve its ranking among global businesses.

Ambani went on to talk about a talent transformation to help it attract best talent in the country and abroad, an innovation-led technology transformation to explore new businesses and a market-transformation to help Reliance explore new consumer markets.

The RIL Chairman and MD said Reliance has transformed many sectors and redefined the way industries operate and has always been able to foresee changes in business trends.

Ambani said the focused efforts would be undertaken to transform Reliance into a "renewed and refreshed organisation prepared for opportunities and challenges of a 21st century world". He said the year 2010 presented the company with opportunities in market growth and for investments across each of its businesses.

At the same time, RIL also had to confront challenges arising out of high commodity and input prices and inflationary trends, he added.

Still, RIL added significantly to its financial strength and its enterprise value has grown to over USD 75 billion, Ambani said.

Market expert: SBI, RIL, Tata Steel may lead Nifty to 5330

In an interview with CNBC-TV18, Jatinder Sharma, Partner, Equity Strategists says, after trading between 5,450-5,460 and 5,600 for past nine sessions, the market has given very valid technical breakdown. “SBI results may have tilted balance firmly in favour of the bearish outcome,” he adds.

He believes that now the levels to look forward would be around 5,330-5,335. “SBI, Reliance and Tata Steel could be the leaders in this particular fall and they might lead it towards 5,330-5,335 kind of levels,” he adds.

Also read: See Nifty in range of 5450-5600 for few days, says Deven Choksey

Below is verbatim transcript of his interview with Reema Tendulkar and Gautam Broker Also watch the accompanying video.

Q: The Nifty has broken that 5,450 mark? Now, what is the kind of downside which is opened up on any kind of trade?

A: I think after trading between 5,450-5,460 and 5,600 on the upside for past nine sessions, the market has given very valid technical breakdown. SBI results may have tilted balance firmly in favour of the bearish outcome. So, I believe that now the levels to look forward would be around 5,330-5,335 levels with some support coming in between around 5,375-5,380 levels.

Q: If we go all the way down to the 5,350 mark, what is primarily going to be leading us downside over there? Any kind of strategy that you have on key banking names or even the banking index now?

A: Along with SBI today, two more heavyweights have seen technical breakdown, Tata Steel as well as Reliance Industries. Reliance Industries was finding support around Rs 935-940 levels. It was expected that it will bounce back again to about Rs 979-980 kind of levels, but it has broken support. Now, it could be headed towards Rs 880-885 levels.

Similarly Tata Steel, it has given a valid breakdown again on daily charts as well as weekly charts. It could shed some more weight in the coming days. So, SBI, Reliance and Tata Steel could be the leaders in this particular fall and they might lead it towards 5,330-5,335 kind of levels.

Q: Technically, what about State Bank of India? What are the charts telling you as key support levels for State Bank of India?

A: State Bank of India was precariously placed around Rs 2,600 levels before the results. It has given a breakdown now. The levels to look forward to in the short run would be around Rs 2,375-2,380 where strong weekly support is seen. So, there could be technical rebound from around those levels.

Q: Do you think there could be any kind of an opportunity in the financial space, any other smaller banks that you like?

A: In the morning, Bank of India was looking good because it was finding support around Rs 390-385 levels. It has found support around these levels for past so many months now. So, a technical rebound could have been expected. Even now, I believe that that stock could be bought at current levels with small risk trade because Rs 385 is the stop loss level for Bank of India and it could go to all the way up to around Rs 435-440 or maybe if the market support, it could even head higher.

Among the largecaps, I believe HDFC Bank is still showing some resilience around Rs 2,240-2,245 levels. So, maybe on semblance of some support around these levels, one could go long in HDFC Bank.

Q: What would you recommend buying in terms of the sectors in the defensive side, pharma, FMCG and maybe IT?

A: FMCG and pharma are looking much better than even IT. In IT, the whole chart pattern is not looking good because of Infosys. Infosys is trading just around its strong support levels, weekly support levels about Rs 2,835-2,850 levels. But it is not showing any inclination to move higher.

TCS might trade in a range. But it is not looking good to give you some decent returns even in the short run. So, we are left only with the FMCG as well as pharma.

In FMCG, Hindustan Unilever looks to be a better chart right now, in fact better than ITC because it has held on to most of its gain for past three-four sessions and absorbed all the profit taking above Rs 305-306 levels. So, it could head towards Rs 320-325 levels over next five-seven trading sessions.

Topsgrup planning 400-crore IPO for domestic acquisitions

MUMBAI: Security services provider Topsgrup, which counts billionaire investor Rakesh Jhunjhunwala and private equity funds ICICI Venture and Everstone Capital among investors, is planning to raise 400 crore through an initial public offering , or IPO, in six months, according to investment bankers with knowledge of the company's plans to raise funds.

The IPO, which will comprise a fresh issue of shares and an offer for sale, could set a benchmark in terms of the valuation for similar firms in the industry waiting to tap the primary market this year.

The company is close to appointing merchant bankers and is in talks with JM Financial , IIFL, Kotak Investment Banking and Enam for the issue, investment bankers said. The offer for sale will pave the way for part exit of some of the marquee investors.

Jhunjhunwala had earlier adopted the same route in another firm A2Z Maintenance where he had exited partly through the company's IPO.

The Mumbai-headquartered company will use the proceeds for strategic acquisitions in the domestic market to increase its market dominance.

"The company is planning to launch its IPO this year," Topsgrup's global chairman Diwan Rahul Nanda said. "It will be difficult to give any timeline and financial details now. The money raised through the IPO will be used to part fund possible acquisitions, predominantly in India. The additional money required for the buyouts will come from internal accruals," he said.

Tops Security, the flagship company of Topsgrup, is the first security firm in India to secure private equity funding in 2007. ICICI Venture invested 115 crore for a 13.66% equity stake, while Indivision India (now Everstone Capital), increased its stake in the company to 7.08% from 4.11% with an additional investment of 25 crore. Rakesh Jhunjhunwala & Associates, who invested in 2005, has a 10.41% stake.

In 2008, Topsgrup acquired a 51% stake in a leading UK security service provider, The Shield Guarding Company, for close to 125 crore. In the same year, it strategically acquired Bangalore-based Guardwell Detective Services and also acquired a 14.69% stake in Chennai-based security systems integrator firm Adtech Systems.

The total aggregate revenues of the firm for the financial year 2010-11 aggregated 800 crore with an EBIDTA of 43 crore. Topsgrup caters to over 8,000 customers, including top corporates such as TATA, Reliance, ICICI Bank , HSBC, IBM, GE and Nokia.

economictimes.indiatimes.com

Sensex trades higher; RIL, Infy, ICICI Bank gain

The market was trading higher as strong buying was seen in banks, realty, pharma, metal and FMCG stocks. Reliance, Infosys, ICICI Bank, ITC and HDFC were major contributors to the Sensex, which was up 182.30 points or 1.01% at 18170.60 at 12.53 am, and theNifty was up 54.80 points or 1.01% at 5468.65.

About 1588 shares advanced, 1071 declined, and 714 shares remained unchanged.

Top gainers on the Sensex included ICICI Bank at Rs 1,033 up 2.96%, Cipla at Rs 300.20 up 2.77%, Jaiprakash Associates at Rs 87 up 2.72%, Sterlite Ind at Rs 165 up 2.07% and BHEL at Rs 1,985.30 up 1.96%.

However, Top losers on the Sensex M&M at Rs 647.50 down 0.75%, Jindal Steel at Rs 656.80 down 0.55%, TCS at Rs 1,064.20 down 0.44% and Maruti Suzuki at Rs 1,168.10 down 0.32% and Tata Motors at Rs 1,135.75 down 0.02%.

Hindustan Lever was trading at Rs 270.90 up 1.54% from its previous close of Rs 266.80.

Index heavyweight Reliance was trading at Rs 1,008.85 up 0.94% from its previous close of Rs 999.50.

Tech major Infosys was trading at Rs 2,985.00 up 1.41% from its previous close of Rs 2,943.40.

Cigarette major ITC was trading at Rs 171.70 up 1.15% from its previous close of Rs 169.75.

www.moneycontrol.com

Ambani divorce papers may soon be in public domain

MUMBAI: The famous, but so far unseen, family agreement, which formalised the split between Mukesh and Anil Ambani, may soon become public.

"The MoU, if required, would be produced before the court by Smt Kokilaben, mother of the Ambani brothers," according to Ram Jethmalani, counsel for Reliance National resources (RNRL), an Anil Ambani group company, which is engaged in litigation with the Mukesh Ambani-controlled Reliance Industries over natural gas supply from the Krishna-Godavari (KG) basin. Mr Jethmalani spoke to ET on the sidelines of the legal proceedings in the Bombay High Court.

The family agreement assumes significance in view of the arguments advanced by RIL's lawyer Harish Salve that the MoU was a 'ghost agreement' as nobody has seen it yet and questioned the enforceability of such an MoU.

Thus, the 'family agreement' may take centre stage at the Bombay HC next week. "It's a private document between the Ambani brothers. Besides broad framework of the demerger, it also has the details of the division of the personal assets of Ambani family," said a person broadly familiar with the contents of the MoU.

A single-judge bench of the HC, in an earlier order, had directed the Ambani brothers to renegotiate the gas sales agreement as per the family agreement or the MoU. The MoU has not been submitted in the court as evidence. Mr Salve has argued that the RIL board was not party. "It's a piece of trash, as far as this case in concerned," said Mr Salve.

The case will come up before a two-judge bench of the Bombay HC on Tuesday, when RIL's counsel is likely to complete his submissions and Mr Jethmalani will begin his argument.
thanks to :- economictimes.indiatimes.com

Indian Stocks Gain Most in 3 Months, Led by Infosys, Reliance

By M.C. Govardhana Rangan

July 2 (Bloomberg) -- Indian stocks rose for the first day in four, led by software exporters including Infosys Technologies Ltd. on the expectation a weakening rupee will boost overseas earnings.

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 702.94, or 5.4 percent, to 13,664.62, the biggest jump since March 25. India's key benchmark has plunged more than 35 percent from its record in January and India's overall market value yesterday slipped below $1 trillion for the first time in a year.

``From a three-year perspective, these levels could give a decent return even if the economy grows at around 6 percent'' a year, said Tridib Pathak, chief investment officer at Lotus India Asset Management Co., which manages assets equivalent to about $1.8 billion.

Infosys Technologies, India's second-largest software exporter, rose 6 percent, the most in more than two months, to 1,820.6. Reliance Industries Ltd., which gets more than half its revenue from overseas markets according to data compiled by Bloomberg, gained 4.9 percent, the most in more than three months, to 2,143.1.

Satyam Computer Services Ltd., the nation's fourth-largest software exporter, rose 7.2 percent to 463.3, the highest since April. 29, after the company said it aims to have $1 billion of sales from Europe.

U.S. Revenue

Indian technology firms such as Infosys get more than 50 percent of their revenue in U.S. dollars. A stronger dollar increases the amount of Indian currency they receive. India's rupee fell 7.3 percent last quarter, the biggest decline in a decade. The currency yesterday fell to the lowest in 15 months as crude imports widened the trade deficit to a record.

India's market value has lost $919 billion from its record on Jan. 7 as overseas equity investors pulled $6.37 billion of funds out of the country so far this year. Net sales accelerated after the central bank raised interest rates twice last month because oil prices pushed inflation to a 13-year high.

The S&P CNX Nifty Index on the National Stock Exchange today gained 196.60, or 5.1 percent, to 4,093.35.

DLF Ltd., the nation's biggest real estate developer, jumped 15 percent, the most in nine months, to 423.95 after the company said it planned to consider a share buyback on July 10.

Banks Rebound

Bank shares led by ICICI Bank Ltd. and State Bank of India, which have lost more than half their value since peaking in January, gained after early losses on speculation the fall was overdone. ICICI Bank, the second largest, advanced 5.4 percent at 621.05 rupees, and State Bank, the largest, rose 5.2 percent to 1,078.35 rupees.

The following were among India's most active stocks. Tickers are in brackets behind company names.

Mundra Port & Special Economic Zone Ltd. (MSEZ IN): The operator of the largest cargo terminal outside state control, rose 3.15 rupees, or 0.7 percent to 481.3, after falling 19 percent following a Press Trust of India report that the Supreme Court had barred development of its land.

Ashapura Minechem Ltd. (ASMN): The miner fell 10.4 rupees, or 7.6 percent, to 126.75, sliding for the fifth straight day, after it said there were administrative delays in getting permission to export and that bauxite volumes may decline.

To contact the reporters on this story: M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net