COMPANIES

SIDBI to set up asset reconstruction firm
Mumbai: Small Industries Development Bank of India (SIDBI) is in talks with leading public and private sector banks to set up an asset reconstruction firm for small and medium enterprises in the next 6-9 months.

"The asset reconstruction company is expected to have Rs100 crore equity and 7-10 partners," bank's chairman and managing director R M Malla said on the sidelines of a microfinance conference.

He said the company might also include some global players, which have expertise in the SME sector.

An asset reconstruction company purchases bad debts from financial institutions at a lower value and sells the same after reconstruction.
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BEML opens Kolar rail coach unit
Mumbai: Bharat Earth Movers Ltd (BEML) has inaugurated Rail Coach Unit II at Kolar Gold Fields, Karnataka on October 9.

The unit will be utilised to produce railway wagons and coaches for defence and civil applications and for high-speed freight corridor, the company informed the BSE.
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GENERAL

Ambani brothers emerge world's richest with combined wealth of $91.41 billion
Mumbai: The booming stock market has made the Ambani brothers - Mukesh and Anil - the world's richest with combined fortunes of $91.41 billion, way ahead of the Walton family of Wal-Mart.

Sons of legendary industrialist Dhirbuhai Ambani who founded Reliance Industries, Mukesh and Anil split the business empire between them in June 2005.

While Mukesh controls shares worth $55.81 billion, Anil owns shares worth $35.6 billion in their respective groups, whose combined worth stands at just over $170 billion.
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BANKING AND FINANCE

State Bank of Bikaner to place Rs300 crore bonds
Mumbai: State Bank of Bikaner & Jaipur plans to privately place unsecured, redeemable, non-convertible, subordinated bonds aggregating Rs300 crore to raise upper Tier II capital, the bank informed the BSE.

The necessary approval from the directors of the board has been obtained, it added.
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Bank of India raises Rs155 crore in perpetual debt
Mumbai: Bank of India has made private placement of Rs155 crore to raise capital. The fund was raised via an instrument, called Innovative Perpetual Debt Instruments - Series 3, has a credit rating of AA+(stable) from Crisil and LAA (Positive) from ICRA and the amount is Rs 155 crore, BoI informed the BSE.

The issue opened on October 3 and closed on October 4. The deemed date of allotment is October 11.

The face value per bond is Rs10 lakh and the coupon rate, 10.40 per cent per annum up to 10 years and 10.90 per cent per annum after 10 years (if call option not exercised). The put option is nil and call option after 10 years.

The listing was on the wholesale debt market segment of National Stock Exchange of India Ltd.
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MARKETS

Markets bounce back; Sensex @ 18K
The markets have bounced backed sharply today and Sensex has crossed the 18,000 mark. The Sensex took eight days to move from 17,000 to 18,000. FIIs have invested $ 3.54 billion in the cash market. The Nifty is up more than 3 per cent. Midcaps have also staged a strong performance and the Mid-Cap Index was up more than 2 per cent.

This came in as a surprise after the news that UPA, Left to meet again on US Nuke Deal on October 22. Sensex is up over 650 points and Nifty has surged nearly 200 points. The benchmark indices have outperformed the broader markets.

Despite all the political turbulence markets seem to be ignoring it and is making new records by not just touching new highs but has registered some record gains. Sensex logged biggest intra day absolute gains ever to close at 18,280.24 and the Nifty at 5333.90.

CLSA says that the Sensex immediate target is of 19500-19800 and feels that Infosys will see a stronger move once it moves past Rs 2035.(Read More)
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Citigroup, Nikko to merge securities business in Japan
Mumbai: Citigroup which acquired Japanese securities firm Nikko Cordial Corp, said it would merge its retail securities business in Japan with the unit, as part of the US financial firm's push in the world's second-largest economy.

Citigroup plans to buy out minority shareholders in Nikko Cordial, Japan's third-largest brokerage, for $4.6 billion. Under the buyout, Nikko Cordial will be delisted from the Tokyo exchange and Citigroup will list its own shares.

The two companies plan to bring their brokerage businesses together as early as May 2008, according to a joint statement.

Earlier this year Citigroup spent about $8 billion to buy a 68 per cent stake in Nikko Cordial, its biggest-ever Asian acquisition.
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