GMR Infra to invest Rs 35,000 cr

Infrastructure major GMR Group, which has undergone organisational
restructuring, is likely to invest Rs 35,000 crore in the next five
years for expanding in various sectors such as airports and power at
home and abroad.

"Our advisors have been working with us to chart out future plans for
us in areas such as power, airports and special economic zones. We
have already formulated a strategy, which will see us expanding both
in India and overseas," GMR Group Chairman G M Rao said.

Asked if the group had planned an investment of about Rs 35,000 crore
in various areas, Rao declined to dabble into numbers. He, however,
said the group was actively pursuing all possible opportunities in
India and abroad.

EIH plans Rs 4,500 crore expansion

The Oberoi Group, which owns or manages the Oberoi Hotels and Resorts
and Trident Hilton brands, plans to invest Rs 4,500 crore to increase
its room capacity in the super-premium segment by over 60 per cent
over the next five years.

The group has a room capacity of 4,100 and it intends to increase this
to 6,800, through new hotels in India and abroad.

The company would generate up to Rs 1,000 crore internally for this
expansion, said P R S Oberoi, chairman, East India Hotels (EIH), the
flagship company of the Oberoi Group, at an interactive session after
the 57th annual general meeting today. The other Rs 3,500 crore would
be raised through debt and equity.

Book Building in Detail

a. How does Book Building work? The logic:

Book building is a process of price discovery. Hence, the Red Herring prospectus does not contain a price. Instead, the red herring prospectus contains either the floor price of the securities offered through it or a price band along with the range within which the bids can move. The applicants bid for the shares quoting the price and the quantity that they would like to bid at. Only the retail investors have the option of bidding at ‘cut-off’. After the bidding process is complete, the ‘cut-off’ price is arrived at on the lines of Dutch auction. The basis of Allotment (Refer Q. 15.j) is then finalized and letters allotment/refund is undertaken. The final prospectus with all the details including the final issue price and the issue size is filed with ROC, thus completing the issue process.

b. What is a price band?

The red herring prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing press release and also indicating the change on the relevant website and the terminals of the syndicate members. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding thirteen days.

c. Who decides the price band?

It may be understood that the regulatory mechanism does not play a role in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with Merchant Bankers. The basis of issue price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the issue price.

d. What is firm allotment?

A company making an issue to public can reserve some shares on “allotment on firm basis” for some categories as specified in DIP guidelines. Allotment on firm basis indicates that allotment to the investor is on firm basis. DIP guidelines provide for maximum % of shares which can be reserved on firm basis. The shares to be allotted on “firm allotment category” can be issued at a price different from the price at which the net offer to the public is made provided that the price at which the security is being offered to the applicants in firm allotment category is higher than the price at which securities are offered to public.

e. What is reservation on competitive basis?

Reservation on Competitive Basis is when allotment of shares is made in proportion to the shares applied for by the concerned reserved categories. Reservation on competitive basis can be made in a public issue to the Employees of the company, Shareholders of the promoting companies in the case of a new company and shareholders of group companies in the case of an existing company, Indian Mutual Funds, Foreign Institutional Investors (including non resident Indians and overseas corporate bodies), Indian and Multilateral development Institutions and Scheduled Banks.

f. Is there any preference while doing the allotment?

No, there cannot be any discretion in the allotment process. Prior to the SEBI Circular on DIP Guidelines dated September 19, 2005, the allotment to the Qualified Institutional Buyers (QIBs) was on a discretionary basis. This however has been amended and all allottees are allotted shares on a proportionate basis within their respective categories.

g. Who is eligible for reservation and how much? (QIBs, NIIs, etc.,)

In a book built issue allocation to Retail Individual Investors (RIIs), Non Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) is in the ratio of 35:15: 50 respectively. In case the book built issues are made pursuant to the requirement of mandatory allocation of 60% to QIBs in terms of Rule 19(2)(b) of SCRR, the respective figures are 30% for RIIs and 10% for NIIs. This is a transitory provision pending harmonization of the QIB allocation in terms of the aforesaid Rule with that specified in the guidelines.

h. How is the Retail Investor defined as?

‘Retail individual investor’ means an investor who applies or bids for securities of or for a value of not more than Rs.1,00,000.

i. Can a retail investor also bid in a book-built issue?

Yes. He can bid in a book-built issue for a value not more than Rs.1,00,000. Any bid made in excess of this will be considered in the HNI category.

j. Is there anything like “online bidding”?

A company proposing to issue capital to public through the on-line system of the stock exchange for offer of securities can do so if it complies with the requirements under Chapter 11A of DIP Guidelines. The appointment of various intermediaries by the issuer includes a prerequisite that such members/registrars have the required facilities to accommodate such an online issue process. An investor may place his bids through the online terminals offered by some of the brokers.

What is this subprime effect?

If you are the kind who follows the business press and news channels very closely, then chances are that, in the last one week, you would have heard stock market experts blaming US subprime defaults for the fall in the Indian markets.

Welcome to the world of globalisation, where when America sneezes, India catches cold. But what on earth is this subprime crisis?

It all starts with an entrepreneur who finds a demand-supply gap between people who want to buy a house and people who have the money to lend.

These people who want to buy a house do not have a good credit rating, i.e., their probability of defaulting on the loan repayment is very high.

So, if anybody wants to lend money to them, it will have to be at a significantly higher interest rate (sub-prime rates is the jargon for it). This is because the entrepreneur lending the money is taking a higher risk, and hence, needs to be compensated through higher returns.

The entrepreneur takes a loan from a bank/ investment bank at low interest rate (as he has a good credit rating, he can raise money at competitive rates) and lends out that money to many people at a higher interest rate.

This ensures that he gets a higher return than what he pays on the loan. At the same time, by giving out loans to many people, he has ensured that a few defaults on repayments do not have a huge impact. (This part is depicted by the fluorescent green arrows in the chart)

Another key feature of these loans is refinancing. The loans are such, that in the first 2-3 years, the interest rates are very low and then they become variable (which means they will become volatile and can go up significantly) for the remaining term, usually 27-28 years as the loans are generally for 30 years.

When real-estate markets are booming, refinancing is not a big problem. Every two years, the borrower gets to refinance his loan, thereby his cost of loan never really goes up.

The entrepreneur, on his part, securitises the loan by issuing mortgage-backed securities (MBS) i.e., he divides his loan into marketable financial securities and sells them to investors. The investors are promised a certain rate of interest on these securities.

The money collected by securitising the loans is used by the entrepreneur to repay the bank/ investment bank. (This part is depicted by the dark green arrows in the chart)
The coupon (interest) payments and the repayment of principal for the investors of the MBS are met by the installments, which the home loan borrower pays every month. (This part is depicted by the red arrows in the chart)

As interest rates start climbing, the impact will be felt on the real-estate market with prices flattening/climbing down. A double whammy will hit the home-loan borrowers as rates start climbing. They were not in a position to pay higher installments and when they went to refinance their loans, as they had been doing earlier, it was not possible this time around as nobody wanted to refinance when real-estate prices were falling. This lead to defaults by the borrowers (remember - their credit quality was always very poor).

As the borrowers default, the repayments from the borrowers, which were used to meet the interest obligations of the securitised paper, also stops. This lead the investors to bang the doors of the entrepreneur who had issued the security. What could the entrepreneur do? He would file for bankruptcy under Chapter 11 (The red arrows get broken).

Now, what happens to the investors?
In case of institutional funds, all their investments would turn. Any fund with global exposure has percentage allocations to various parts of the world. So, in case the US exposure turns bad, the fund will have to pull out of all markets for keeping the percentage allocation in line with the stated objective, and also for meeting possible redemptions.

IKB, a German bank, has already said that it had invested in such papers and has issued a profit warning. In fact, the issue is snowballing into a larger one, with German investors worried about other banks having similar exposure as well. Meanwhile, German banks have come together to bail out the bank even as the IKB chief executive has stepped down.

Now, if this is not all, there starts a negative spiral. As prices flatten, defaults increase as no refinancing is available. As defaults increase, lending rates increase as lending is now done in a stricter manner. As lending slows, the flow of money to the sector stops even more, so prices decline still further and thus starts a cascading effect.

Now, the debate is on whether this crisis will have an impact on the US economy as a whole or will the economy be insulated from this crisis? In case this virus affects the economy, one can forget support levels for our markets…and yes, you never catch a falling knife, so the best step would be to stay away from the markets. Once the storm has subsided, you can find pearls at throwaway prices!

Rings for your beloved one !!!

Kareena Kapoor

Kareena Kapoor

(Everything about Kareena Kapoor)

Full Name:
Kareena Kapoor

Profession
Actress

Hair
Brown

Height
5'5"

Birth Date
September 21, 1980

Education
Currently doing Law

Nickname
Bebo

Father
Randhir Kapoor

Mother
Babita Kapoor

Sister
Karishma Kapoor

Grandpa
Raj Kapoor

Grandma
Krishna

Star Sign
Virgo

Status
Single

Favorite Films
Awaara, Sangam,Bobby, Kal Aaj Aur Kal.

Favorite Car
Mitsubishi Lancer

Favorite Book
Master Of the Game' by Sidney Sheldon

Favorite Food
Chinese, Italian and Thai

Favorite Hotel
Golden Dragon, Olive and Thai Pavilion

Favourite Holiday Spot
Goa and London

Favorite Actor
Raj Kapoor

Favorite Actress
Nargis, of course, after Babita

Favorite Co-Stars
Shah Rukh Khan, Hrithik Roshan, and Abhishek Bachchan

Favorite Attire
Jeans and T-shirt (casuals) and ethnic Indian wear when it comes to formals

Favorite Color
Black and Red

Favorite Song
"Rahe na rahe hum mehaka karenge..."

Favorite Sport
Swimming

Favorite Accessory
Bracelets

Favourite Jewel
Diamonds

Favorite Perfume
Dune

Favorite Hobby
Horse-riding and cooking

Favourite Designer
Gianni Versace

Leisure Activities
Reading, swimming, eating and making friends

First Crush
My 4th std. Desk partner while i was in School

Strengths
My mom & sister

Weakeness
My sister and food

My Motto
Life is full of tears and joy,so make the most of it-Believe in true love

I Hate
Liars and Hypocrites

I Love
Frankness and Honesty

Going to Propose a Girl ?

Here are the top most reply of a girl, when you propose her...


1) Nahi........ ......... ???

2) Chiiiii..... Kitne gande vichar hain tumhare..... ..

3) Maine tumhe sirf ek acche dost ki nazar se dekha hai ....

4) Mera pehle se ek boyfrnd hai....

5) Main in baton pe vishwas nahi karti, apne padhai pe dhyaan lagao...

6) tum abhi tak mujhe jaante kahan ho ?Yeh shayad infatuation hai....

7) Tumhara bank balance kitna hai…??

8) Magar last year to Maine tumhe raakhi baandhi thi ..hai naa..bhaiyya. .??

9) Mein abhi is relation ke liye mentally prepared nahi hoo....

10) Mein apne dady se pooch ke tumhe kaal answer karu…??

11) Itni is baat kehne ke liye itni der lagaa di??

12) Ye donon ke dil me hai na, to phir kya kehna!!

13) Sorry

14) "……Apna chehra kabhi aayine me dekha hai….. L…………………………… "

15) "Main toh tumhe apna Bhai maanati hu"

16) "Yes .. I too like you … (but hope you don't cheat on me ) " …

17) Phele kyon nahi bataya AB tum late ho gaye ..

18) Tum agar pehle mile hote to sochti.

19) Tumhari himmat kaise hui mere baare mein aisa sochne ki… (probably followed by a slap)

20) Girl: mujhe sochna ka wakt do…

Guy: kitna wakt???(with hope)

Girl: saat janam

21) Mai ek shaadi shuda ladki hu ;-)

22) Mein tumhare chotte bhai se pyaar karti hoon…

23) Now that's a real tragedy….

Girl: Hee hee ……hee hee hee…..hee ….hee……hee……

Hee hee ……hee hee hee…..hee ….hee……hee……

24) Boy: I love U!

Gal: I don't think ABT all this before marriage.

25) Keep loving I don't care.

26) Tum mere liye kya kar sakte ho…

27) Kaun as number hai mera tumhare proposals ki history mein. Ha ha ha ha….

28) tumhe is nazar se kabhi dekha nahi

29) tumhare barre mein kabhi aisa socha nahi

30) mummy se pooch kar bataungi

31) mere bhaiyya se baat kar lo , who hi tumhe samajhayenge

32) Knyo, Tina NE "No" bola?

33) Lekin tum to Mina ke piche pade the, Kya usne thappad mara?

34) Kitne time ke liye -???

35) Worst one-- Jo bhi bolna hai jaldi bolo mera beta school se aata hoga..

36) Thanks. I love you, too.

37) Boy :- Sonya, I love U…..


Gal :- Sorry , Next 3 Months tak Waiting List chal rahi hai….

38) "What?"

39) "Let's just stay away from this"

40) My friend in college got one classic reply … "I THINK I'M ENGAGED"

41) "I think, I will have better options in future ..."

42)Mujhe tumse is baare mein koi baat nahi karni, then she starts ignoring, phir bhi nahi sudhare then she threatens via some common friends.

43) My Boy friend is very short Tempered. Beware of it.

44) like you as a friend but I never thought about us like this…cant we be just good friends for ever

45) Actually my younger sis likes you a lot. ..

46) My mummy does not like your family (if the family knows each other.) ..

47) "Why me?..Tumne mere meih essa kya dekha?..."she wants you to list down all the Good qualities that you even might have not seen in her. ...

48) SLAP !! ACTIONS SPEAK LOUDER THAN WORDS....it is said ..

49)hehe I didn't expect that from you....

50)nice joke ...

51)tum ladke kuchh or nahi soch sakte jaha ladki dekhi fisal gaye.....

52)achha tum bhi meine socha sirf harsh,nikhil, ravi, etc etc ko hi mujhme interest hai ..... And then walks on.......... ...

53)tumhe to purpose karna bhi nahi aata.... Peheli bari hai kya?? Koi baat nahi mein batati Hun ???...

Ek Gareeb Parivaaar ki Kahani

1 rich girl ko school mei Gareeb parivaar pe essay likhne ko kaha gaya.

Essay mei girl ne likha----


" Ek gareeb parivaar tha.

Pita gareeb tha,

Mata gareeb thi,

aur bachche bhi gareeb the,

parivaar mei 4 nauker the,

woh bhi gareeb the.......

Car bhi tutti hui Merc....dz.. ..thi.... ..

Unka gareeb driver bachcho ko

tutti hui car mei hee school chodta tha.

Bachcho ke pass mobile bhi purane the.....

Mali aur cook bhi gareeb the.....


Matlab pura parivar gareeb tha "

Reliance to invest $10 bn in Egypt

The Egyptian government said on Thursday that the Indian industrial group Reliance will invest $10 billion in the oil refining, petrochemicals and plastics industries in Egypt.

The state news agency MENA said Egyptian Prime Minister Ahmed Nazif announced the decision by the Indian company after meeting Reliance executives in the port city of Alexandria.

Nazif's spokesman, Magdy Rady, said the investments by Reliance would include $1 billion to build an oil refinery and $7 billion in petrochemicals, MENA added. It gave no further details of the projects.

The Egyptian government estimates Indian investments in Egypt are worth $320 million. Reliance Petroleum Limited, a subsidiary of Reliance group, has been importing and marketing Egyptian crude oil since 2001.

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Yamaha Bikes

यामाहा

Buy This Stock with Horizon of Two Years for Solid Returns

A roster of blue-chip clients and focus on Europe where growth prospects for telecom services are strong, make the company's stock a good investment option.

Investors can buy the Tech Mahindra stock with a two-year horizon considering the healthy growth prospects for its service offerings in Europe, its blue-chip clientele and status as an integrated telecom software player. The stock was marked down significantly during the recent meltdown in mid-tier IT stocks; investors can use this opportunity to buy.

The stock trades at 23 times its current year's earnings and is at a discount to other telecom software companies such as Sasken, as well as larger IT companies such as HCL Technologies and Wipro, making it a reasonable investment option.

Tech Mahindra broadly caters to three sets of clientele — telecom service providers (TSP), telecom equipment manufacturers (TEM) and independent software vendors (ISV). Its IT services offerings include application development and maintenance, system integration, product engineering, managed platforms and services, consulting, testing and BPO services, among others.