TOP-10 COS ADD OVER RS 1.42 LAKH CR

India's top-10 firms added Rs 1,42,000 crore to their market capitalisation last week with country's most valued firm, Reliance Industries crossing Rs 3 trillion mark after two weeks.

The country's most-valued firm, Reliance Industries Ltd, added Rs 24,395 crore to its market valuation taking its total market cap to Rs 3,04,292 crore. Shares of RIL surged nearly 9 per cent on the Bombay Stock Exchange (BSE) to end the trade at Rs 1,933.40 on Friday...

The Financial Express

INDIA'S BILLION DOLLAR CLUB ADDS 51 FIRMS; $500 BILLION

The rally in the stock market and the recent appreciation in rupee value has brought 51 new members to the elite billion-dollar market-value club, while doubling its overall valuation since October when the benchmark index had dropped below the 8,000-level.

The country boasts of as many as 144 companies with a market capitalisation of at least a billion dollar at present. The number represents a increase of 51 companies from just 93 in October 2008. Interestingly, the cumulative market value of the club currently stands at about 900 billion dollars (Rs 42,34,171.25 crore) as on June 5, more than double of its value in October last year of 410 billion dollars (about Rs 20,41,029.8 crore).

The Economic Times

PE RUSH SEEN LIFTING VALUATIONS

The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark.

The Financial Express

INDIAN FIRMS RUSH TO AIM AS DOMESTIC FLOATS HIT SHELF

Indian firms are tapping London’s Alternative Investment Market, or AIM, to raise funds as the domestic market for initial public offerings, or IPOs, has dried up for lack of investor appetite for new stock sales and dipping valuations of listed companies.

MINT

BSNL mulls IPO, valued at over $ 100 bn

State-owned telecom firm Bharat Sanchar Nigam Ltd, which has been valued at over 100 billion dollar (Rs 400,000 crore), is considering an IPO to dilute up to 10 per cent of its equity to fund expansion plans.

The Financial Express
http://www.financialexpress.com/news/
BSNL-mulls-IPO-valued-at-over-100-bn/261324/

Merrill Lynch may pick 20% stake in Sharekhan

Private equity(PE) investor Citigroup Venture Capital (CVC) is diluting a part of its 75% stake in brokerage firm Sharekhan. Financial services major Merrill Lynch is said to be the front-runner to pick a minority stake even as other PE firms, including Baring Private Equity, are believed to be in the race. The industry buzz is that the deal for 20% stake is valued at around Rs 300 crore. However, a source close to Sharekhan said CVC is looking to dilute its stake only by 10% and the deal value is close to $50 million or Rs 200 crore.

The Economic Times
http://economictimes.indiatimes.com/News/News_By_Industry/
Banking_Finance_/Merrill_Lynch_may_pick_20_stake_in_Sharekhan/
articleshow/2646215.cms

Spiralling rentals hit retail boom

First came political misgivings and then street protests by small-store owners across the country, who were afraid they would be put out of business by the deep pockets and discounting powers of the retail chains. But that perhaps didn’t worry Indian tycoons as much as the surge in rentals and space shortages they are now battling in a bid to open thousands of stores and change the way the subcontinent shops.

Mint
http://www.livemint.com/2007/12/23235111/
Spiralling-rentals-hit-retail.html

Valuation conundrums

With the year coming to a happy end, action is getting geared up for the next year. And the valuations question raises its head again. “Is the market overvalued?”, the million dollar question once again makes the rounds. There is no doubt the Indian market is expensive. The price to earnings ratio is now around 26 times trailing earnings and the long-term average has been around 15-17 times. The price to book value is now more than 6 times, and clearly the highest ever. But then these ratios should be looked at in perspective, says optimists.

The Financial Express
http://www.financialexpress.com/news/
Valuation-conundrums/251098/