Financial News in January 2010

News Posted - 2010-01-20

Omaxe Looking to Raise Rs 800 Crore Through QIP:-
Omaxe Ltd is planning to raise over Rs 800 crore by March end through qualified institutional placement (QIP) of shares. The company plans to use the proceeds for debt repayment and acquisition of cheaper land. To facilitate the deal, it is looking to appoint a couple of investment bankers by month end. According to a company official, the developer is looking to use Rs 400 crore of the funds raised to reduce its outstanding debt of over Rs 1,500 crore. The rest of the amount would be used to invest in its housing projects, which includes ones in affordable mass housing. It would also invest in its proposed township of over 3,601 acres at Bulandshahar in Greater Noida 14 Jan 2010
Sunil Mantri Group To Make Investments Worth Rs 250 Crore In Bangalore:-
Bangalore-based realtor, Sunil Mantri Group said it will invest Rs 250-crore to develop an integrated housing project in Bangalore, close to offices of major IT companies and the Electronic City. The project, christened as Mantri Premero, will be a large-scale residential township spread over 3.25 acres, as per a company press release. Mantri Premero is located on Sarjapur Road close to offices of companies like Wipro, Intel, Cisco Systems, Accenture and I-Flex Solutions. 13 Jan 2010 DNA
Mint Road Raises Concerns Over Rise In Teaser Home Loans:-
The teaser home-loan rate war has raised concerns on Mint Road. While State Bank of India Chairman, Mr OP Bhatt says that lowering home loan rates was a necessary measure to revive the economy, Reserve Bank of India has started to voice its concern with the teaser interest rates that banks are currently offering. The State Bank of India was the first to lower home loan interest rates to 8% after which HDFC, ICICI and others also lowered their interest rates. Ms Usha Thorat, deputy governor of RBI, emphasized the increase in teaser rate offerings is a cause for concern. Mr MD Mallya, chairman and managing director, Bank of Baroda gave a similar opinion. He added that the teaser home loans being offered by most banks were only after keeping risk management in mind. 13 Jan 2010 DNA
China Promises To Keep Foreign Investment Out Of The Property Market:-
China vowed not to let foreign speculative investment have an effect on the property market, the latest expression of official concern that property prices are racing ahead too fast. The directive from the State Council, China's cabinet, will serve as a guideline for local authorities and ministries, including the People's Bank of China and the China Banking Regulatory Commission, to work out detailed policies. According to the cabinet, "Relevant departments must enhance monitoring of loans and cross-border investment to prevent illegal inflows of capital into the property market and to avoid the impact of overseas hot money on China's real estate market." It added that the central bank and banking regulator should step up oversight and 'window guidance' of mortgage lending. About one-sixth of China's nearly 10 trillion Yuan ($1.5 trillion) in new loans last year flowed into the real estate sector. 10 Jan 2010 DNA