Media Mates: MANAGEMENT COMPASS: Bizz Buzz

Events that rocked the business world in the past one month

Oil FPO on the anvil
The state-run Oil India is the latest Public Sector Undertaking (PSU) in for disinvestment as the government is soon planning to further its public offer with a Forward Public Offer (FPO). Negotiations are currently on between the disinvestment department and the Petroleum Ministry to work out the details through further stake sale. They will have to work out on what is their capital requirement.

The company’s Initial Public Offer (IPO) launched in September 2009, fetched a whopping Rs 4900 crore and 10% of the equity was offloaded with the issuance of fresh equity of 11% Other PSUs identified by the government for a sale of stakes include RINL, MMTC and NBCC. It will further have to add more companies for disinvestment in order to meet its targets of the current fiscal amounting to Rs 40000 crore during 2011-12. The Cabinet has so far given approval for the disinvestment of four state-run firms - PFC, SAIL, ONGC and HCL, expecting to garner a little over Rs 15000 crore through follow-on offers of the identified four PSUs. The 5% disinvestment of PFC has already earned the government Rs 1162 crore, and SAIL and ONGC are expected to hit the market within the next two months.

Maruti Suzuki to set base in Gujarat
Maruti Suzuki India Ltd (MSIL) is considering setting up a manufacturing facility at Sanand in Ahmedabad district, close to the Tata Motors Ltd's Nano plant. The company already has a Pre-Dispatch Inspection (PDI) facility at Mundra Port in Gujarat. It is, however, yet to make a formal announcement in this regard and word from the State Government is also not out. Ever since Ratan Tata made it the home of the Nano, the state has caught the fancy of both domestic and international companies alike. French automobile giant Peugeot had also recently visited Gujarat, apparently scouting for land to set up their plant.

Though the State Government is not in a position to confirm or deny these reports, the market reports have it that Maruti is expected to be allotted around 500 acres near Sanand. After Gurgaon and Manesar, this will be the third largest manufacturing facility to be set up by MSIL.