MMTC declared 1:1 bonus and 10:1 stock split

Board of Directors of the MMTC Ltd has recommended a Dividend @ 90% on the paid up equity capital of the Company for the Financial Year 2009-10. The board has also approved split of each equity share of face value Rs. 10/- each into 10 equity shares of face value Re. 1/- each. The sub-division is to be effective and simultaneous with the allotment of Bonus Shares.

The Company has declared Audited results for the Year ended March 31, 2010. It has posted a net profit of Rs 2162.40 million for the year ended March 31, 2010 as compared to Rs 1402.20 million for the year ended March 31, 2009. Total Income has increased from Rs 368738.10 million for the year ended March 31, 2009 to Rs 452138.90 million for the year ended March 31, 2010.

MMTC Ltd is quoting at CMP of Rs 32,035.00. The stock has made an intraday high of Rs 33,400.00 and low of 30,700.00 at NSE. Total traded quantity at NSE for MMTC Ltd at 15.16 IST is 14,671.

Established in 1963, MMTC, one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over US$ 7 billion. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of "five star export house" by Govt of India for long standing contribution to exports. MMTC is the largest non-oil importer in India.

RIL to invest $20 bn in power foray

As per media reports, Mukesh Ambani-led Reliance Industries Ltd (RIL) may invest anywhere between $15 to $20 billion (Rs70,000- Rs90,000 crore) over the next 10 years towards its big-bang foray into the power sector, which, besides power generation, would also include transmission projects.

The funding for RIL’s power business will be through a mix of debt and equity and a new company may be floated in the next two years to undertake execution of power projects.

Since construction of a new power project takes up to five years, RIL, besides bidding for ultra mega power projects (UMPPs), may preferably look at inorganic growth (by acquisition of power plants) to establish its presence in the sector.

RIL may look at acquiring some hydel and thermal power projects besides bidding for coal based UMPPs of 4,000 mega watt (MW) capacity each.

UMPPs at Chhattisgarh, Orissa and Tamil Nadu — each of which would cost Rs16,000 crore —  is already on the investment radar of RIL.

“Setting up a power project does not need any licence but takes at least a year or two for preparatory work and another 3-4 years for its execution,” said a power ministry official.

RIL will bid for transmission projects as the space has been offered for participation by the private sector.

Given the scarcity of coal in the country, sources said RIL is also considering acquisition of coal mines in Australia, Mozambique, Indonesia and South Africa. RIL already has a memorandum of understanding (MoU) with a local company in Australia for mining uranium.

Even brother Anil — who has big plans to develop 33,000MW  power generation capacity with an estimated investment of over Rs1 lakh crore — had acquired the Rosa power project in 2006.

RIL’s entry in the power sector was termed as a “game changing development” by its chairman and managing director, Mukesh Ambani at the company’s AGM on Friday (June 18, 2010).

Reliance Power has commissioned 600MW capacity at Rosa and plans to add another 600MW in the next phase.

In addition, Anil’s Reliance Power has so far bagged three out of the four ultra mega power projects (coal based) announced so far by the government. No developer at a given point of time can undertake execution of more than three UMPPs.

RIL closed at Rs1,065.25, up by 0.95%, with a volume of 4.99 lakh shares on the BSE.

Government may divest up to 10 per cent of its stake in SCI

The government may divest up to 10 per cent of its stake in Shipping Corporation of India.

"The government in their list has included Shipping Corporation (SCI) for disinvestment in this fiscal. It is likely to happen. Disinvestment could be up to 10 per cent," SCI chairman and managing director S Hajara said here on the sidelines a SCOPE conference today.

The government currently holds 80.12 per cent in SCI, while over 10 per cent is held by LIC. The remaining 3.15 per cent is already with the public.

Asked if the company could issue fresh equity, he said, "we don't know. Discussions are on...there could be some possibility but no decision has been taken as yet."

Shipping secretary K Mohandas had said last month that the government was looking at various proposals for SCI, including a follow-on-public offer.

Hajara said a part of the disinvestment proceeds will be utilised for further acquisition. Asked how much SCI plans to raise from divestment, Hajara said it will depend on the market condition.

SCI scrips today closed at Rs 165.50 per share, up 0.88 per cent from on the Bombay Stock Exchange.

SCI at present owns 76 ships of 5.1 million DWT (deadweight tonnage) and has interests in all segments of shipping trade. In addition, it mans and manages 60 vessels of 0.2 million tonnes DWT. DWT is the total weight of the ship including the cargo, crew, fuel etc.

SCI selloff is part of the government's plans to raise up to Rs 40,000 crore this fiscal through disinvestment. Besides SCI, the government is looking at divesting its stake in three shipping-related companies--Cochin Shipyard and Dredging Corp of India.

The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.