PowerGrid Corporation of India Ltd says its estimated Rs 8,400 crore follow-on public offer will hit the capital market on Nov 9 and close on Nov 12.
State-run transmission company PowerGrid Corporation of India Ltd on Thursday said its estimated Rs 8,400 crore follow-on public offer will hit the capital market on November 9 and close on November 12.
"PowerGrid's FPO to garner Rs 8,400 crore would open on November 9 and close on November 12," PowerGrid Chairman and Managing Director S K Chaturvedi told PTI.
The capital raised from the FPO will be used for part funding the PSU's Rs 55,000 crore capex plan, with Rs 30,900 crore worth of investment lined up over the next two years, he said.
"Of the proposed capex of Rs 55,000 crore, we have already spend 46 per cent in the last three years' period. We are spending Rs 14,000 crore in FY'11 and Rs 16,900 crore in FY'12," Chaturvedi said.
The Cabinet Committee on Economic Affairs gave the nod for PowerGrid's follow-on public offer (FPO) on July 22 this year.
The company plans to offer 10 per cent fresh equity under the issue, while the government will offload 10 per cent of its 86.36 per cent stake in PowerGrid.
The offer comprises over 84 crore (84,17,68,246) equity shares of Rs 10 each, constituting 20 per cent of the existing paid-up capital of the company.
The PSU has already tied up for 86 per cent of the funds required for its capex plan and the remaining amount will be raised through the follow-on public offer and bonds issues, Chaturvedi said.
The company aims to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.
On the transmission side, the company had been awarded Rs 7,000 crore worth of projects. It hopes to bag projects worth Rs 14,000 crore in FY'11, he said.
The company had hit the capital market with its maiden public offer in October, 2007, under which the company issued 10 per cent fresh equity and the government divested a 5 per cent stake.
PowerGrid reported a growth of 41.62 per cent in profit after tax to Rs 651.4 crore for the quarter ended September 30, 2010. The company had posted a profit after tax of Rs 459.97 crore for the same period in 2009-10.
Total revenues were up 23.44 per cent to Rs 2,222.97 crore from Rs 1,800.9 crore in the three-month period a year ago. "The increase in turnover was due to transmission projects worth Rs 3,932 crore commissioned in the quarter and the full-year impact of projects worth Rs 3,610 crore commissioned last year," Chaturvedi said.
The company commissioned assets worth Rs 3,932 crore in Q2, FY'11, as against Rs 958 crore in the same period last year.
It also earned consultancy revenue of Rs 79 crore in Q2, FY'11, as against Rs 50 crore in the corresponding period of the previous year.
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India Inc bullish about business; cautious on hiring
New Delhi, Oct 19 (PTI) Corporate India is bullish about the future of their business, but adopting a cautious approach while hiring, as they are giving more importance to productivity and efficiency, a report by staffing firm TeamLease said.
According to the TeamLease employment outlook report for October?December 2010, the business outlook has increased, but still companies are playing the hiring game safely.
For the said quarter the employment outlook moved up by 4 per cent to 68 per cent, while, business outlook grew 10 per cent to 71 per cent.
"We witness a shift in hiring intent; while earlier the business sentiment and hiring sentiment were moving hand in hand, this quarter shows the business sentiment improving but hiring intent lagging behind marginally," TeamLease Services Pvt Ltd VP Sangeeta Lala said.
Lala further added that "this development implies that employers are cautious while hiring and giving importance to productivity and efficiency."
Meanwhile, attrition levels have increased marginally across geography and business sectors.
"All in all, therefore, the consolidation could also mean a relatively better supply-demand scenario in the employment market," the report said.
Even though metro cities continue their dominance in the hiring landscape, the tier-II and tier?III cities have moved up a notch in the hiring intent.
Mumbai (with 7 per cent points) is the only one with a significant improvement in the index value.
The report further said that the hiring at the entry levels continue to be positive in comparison to mid-level positions, which seem to be losing their sheen.
Entry Level hires witnessed a 9 per cent point increase, while, middle level positions saw a drop of 5 per cent points.
A sectorwise analysis shows that retail & FMCG are the only sector with a significant improvement in the net employment outlook index (8 per cent points) during the present quarter even as there is a significant drop in the index (6 per cent points) for ITeS.
The survey was conducted with HR managers and senior management of 624 leading companies in India.
Job visas only for highly skilled, salaried foreigners: govt
New Delhi, Oct 20 (PTI) In an attempt to prevent foreigners from getting non-technical jobs, the government has made it clear that citizens of other countries will be taken only for highly-skilled assignments in India and should draw an annual salary of over USD 25,000.
In an order, the Home Ministry nullified a Labour Ministry circular which allows one per cent foreigners among the total work force in any project with a minimum of five and maximum of 20 people.
"An employment visa is granted to a foreigner if the applicant is a highly skilled and/or qualified professional, who is being engaged or appointed by a company/organisation/ industry/undertaking in India on contract or employment basis," according to the Home Ministry guidelines.
Besides, the ministry made it clear that employment visa shall not be granted for jobs for which qualified Indian are available and also for routine, ordinary or secretarial/ clerical jobs.
"The foreign national being sponsored for an employment visa in any sector should draw a salary in excess of USD 25,000 per annum," it says.
However, this condition of annual floor limit on income will not apply to ethnic cooks, language teachers (other than English), staff working for the Embassy/High Commission concerned in India.
The Labour Ministry had ordered that visa applications could be cleared by the Indian missions abroad at their level if the foreign national is skilled and qualified professional, technical experts, senior executives or in managerial positions and those kinds of skills which are not available in India.
US top bosses' bonus median down by 12.6 pc in 2009: Equilar
New York, Oct 20 (PTI) The pressure on US companies to justify the compensation package of its top brass in the aftermath of the global financial crisis reflected in the chief executives' bonus payouts median, which fell over 12 per cent in 2009.
According to a report by executive compensation research firm Equilar, the median total bonus payouts for chief executives fell by 12.6 per cent from 2008 to 2009, dropping from USD 930,133 to USD 812,799.
Total bonus payouts included both performance-based bonuses and discretionary cash awards.
Equilar analysed results for a total of 232 companies reporting compensation data for fiscal years ending between June 30, 2009- December 31, 2009.
It found that performance-based bonus payouts fell from a median of USD 713,108 in 2008 to a median of USD 639,950 in 2009, a drop of 10.3 per cent.
The median value of discretionary cash awards declined by 20.5 per cent from USD 860,000 in 2008 to USD 683,323 in 2009.
CEOs in certain industries were hit harder than their peers in other fields. For capital goods and technology companies, the median total bonus payout for CEOs from 2008 to 2009 decreased by 41.3 and 53.2 per cent, respectively.
In contrast, median total bonus payouts for Services providers grew by 21 per cent.
During 2009, while many CEOs had their bonus payouts decreased, some executives did not receive a bonus at all. The total number of CEOs receiving bonus payouts fell by 3.1 per cent from 2008 to 2009, the report said.
It further noted that in an attempt to align executive pay with performance, many companies have traded in previous compensation practices for a more performance-based mix.
Many firms are also resorting to pay bonuses in equity -- a method by which companies can conserve cash. Besides, reducing cash expenses, equity-based bonus awards can be used as a retention incentive and to align executives? interests with shareholders?, the report said.