Shares of firms paying higher advance tax may see action

Advance tax collections for the second quarter of the current financial year (2009-10) have reportedly shown robust growth of 35% to 40% across industries, reinforcing the government's hopes of a sooner-than-expected recovery.

According to reports, State Bank of India have paid 22.53% higher advanced tax to Rs 1838 crore in Q2 September 2009 over Q2 September 2008. Reliance Industries (up 69.40% to Rs 1157 crore), HDFC Bank (up 34.92% to Rs 425 crore), Larsen & Toubro (up 40% to Rs 210 crore), Tata Motors (up 116.67% to Rs 130 crore), Mahindra & Mahindra (up 540% to Rs 112 crore), Tata Power (up 435.71% to Rs 75 crore). However, India's largest private sector bank by market capitalisation ICICI Bank have paid 12.87% lesser advance tax to Rs 501 crore in Q2 September 2009 over Q2 September 2008.

LIC Housing Finance is reportedly raising up to $136 million through a share sale to institutional investors at a discount of 1.9% to 3.4% to its Tuesday closing price of Rs 673. The company is selling 1 crore shares in a qualified institutional placement (QIP) offering at Rs 650 to Rs 660 each in a deal handled by Citigroup, Enam Securities, Kotak Securities, and Nomura.

Reliance Communications has reportedly initiated talks with its overseas lenders to revise the terms of the $1 billion unsecured external commercial borrowings raised in 2007.

Tata Motors is reportedly planning to sell about 10-15% in subsidiary Tata Motors Finance to raise funds to reduce debt.

Foreign lenders, upset over Wockhardt's corporate debt restructuring package, have reportedly threatened to block the pharma company's $130 million deal to sell its nutrition business to US-based Abbott Laboratories.

Asian Paints has reportedly started selling its near-10% stake in rival ICI India and has reduced it to 7.49%, citing favourable market conditions. Asian Paints had acquired ICI India shares in 2003, following disinvestment by the federal government.

Triveni Retail Ventures, the retail arm of Triveni Engineering & Industries, is reportedly closing down all its stores after it failed to find a buyer.

Securities & Exchange Board of India is reportedly expected to give 14 days to both Bharati Shipyardand ABG Shipyard, which are locked in a fierce takeover battle for Great Offshore, for their final price quotes.

Elder Pharmaceuticals is reported to be in talks with US-based private equity firm, TA Associates, to dilute a minority stake as part of its fund raising plans.