HERO MOTOCORP TO SET UP NEW PLANT

ROLLING OUT PLANS

 India’s largest two-wheeler maker, Hero Moto Corp plans to set up a plant in South India, which would be the company’s sixth plant overall, to cater to the domestic market and take its overall annual capacity to 12 million units. The plant would have an annual capacity of around 1.5-2 million units. When completed, it will take the company’s overall capacity to around 12 million units per annum. The company had earlier set a target of achieving a capacity of 10 million units by 2017.

 SETTING UP A VILLA PROJECT

 Puravankara Projects has announced a theme-based villa project on Bannerghatta Road in Bangalore called ‘The Sound of Water’. The self-contained city coming up over 20 acres has 209 villas ranging between 3009 sq. ft . and 4723 sq. ft ., with an approximate base price of `1.92 crore to `4.15 crore respectively. Puravankara Projects has a presence in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore and in the United Arab Emirates, Kingdom of Saudi Arabia and Sri Lanka. The mid-segment focussed housing company currently has over 10.05 million sq. feet., of projects launched across Bangalore, Chennai and Mangalore, with an additional 10.32 million square feet slated for launch this fiscal year.

PLANNING TO BORROW

Shriram Transport Finance plans to borrow up to `3000 crore through non-convertible debentures (NCDs) to support its financing activities. The company has filed a draft offer document for the public issue of 3 crore secured redeemable NCDs of face value of `1,000 each, it said. The proceeds of the issue will be used for financing activities such as lending and investments, for repaying loans and for business operations, including capital expenditure and working capital requirements.

ARBITRATION WON

GMR Infrastructure won arbitration proceedings in the Male airport case and the tribunal has asked the Maldivian government and airport company are liable to pay damages and USD 4 million in legal costs to GMR. Lord Hoff man’s Tribunal in Singapore said the concession agreement was valid and binding and was not void for any mistake of law or discharged by frustration.

 IMPROVING CAR

 The Kolkata-based United Bank of India has a modest capital adequacy ratio of 9.8 per cent against the bare minimum of 9 per cent and thus it needs to bring in capital to improve the critical ratio. UBI plans to raise up to `1000 crore either by second public issue or rights issue of shares or by placement of shares to qualified institutional investors. It may also raise up to `300 crore of fresh equity from Life Insurance Corporation of India and another `275 crore from the government by converting existing perpetual non cumulative preference shares (PNCPS).

WANT CAPITAL SUPPORT

 State-owned UCO Bank has sought capital support worth `1,000 crore from the government for the current fiscal to meet its growth plans. Last fiscal, the Kolkata-based bank got capital support worth `200 crore from the government. Asked if the bank would tap capital markets to raise funds besides the government’s capital infusion programme, the management said that the bank is keeping all options open and would take a call at the appropriate time.

SPREADING ITS COLOURS

 Domestic paint major Asian Paints is evaluating opportunities to increase its presence in the international markets. The company’s wholly-owned subsidiary in Mauritius, Asian Paints (International) (APIL), had in April signed an agreement with shareholders of Kadisco Chemical Industry PLC., Ethiopia, to acquire either directly or through its subsidiaries 51 per cent of its share capital.