Financial Daily from THE HINDU group of publications
Tuesday, May 10, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 10, 2005 |
|
|
|
|
|
Corporate
-
Announcements S&P plans no changes in Crisil management, name Our Bureau
Mr R. Ravimohan, Managing Director and CEO, Crisil, with Ms Kathleen A. Corbet, President, Standard & Poor's, at a press conference in Mumbai. - Paul Noronha
Mumbai , May 9 STANDARD & Poor's (S&P), which now owns 58.5 per cent stake in Crisil Ltd, will leave the name of the latter unchanged even as integration exercises would make Crisil part of S&P's Asia-Pacific network. Crisil enjoys strong brand recognition in the country, said Ms Kathleen Corbet, President, S&P, at a news conference today. Some of S&P's global analytical outsourcing would be handled by Crisil, in addition to the collaboration that would happen on other fronts, she added. S&P has been commissioning Crisil in an increasing number of global analytical projects over the last few years. S&P spent Rs 240 crore last month to acquire 49.07 per cent of Crisil through its open offer, in which valid acceptances were made for 31,20,948 shares at Rs 775 each. This was in addition to its existing stake in the company of over nine per cent. S&P, whose open offer was for a larger stake, said that it would not increase its shareholding currently. The original objective of obtaining majority ownership has been met, Ms Corbet said. S&P and Crisil would now be able to leverage each other's brands both in the domestic and global arena, she added. S&P's representation on the Crisil board would increase in accordance with its shareholding, but for now there will be no specific changes in the management, according to her. Crisil's revenues have been growing at a compound aggregate growth rate of 25 per cent for the last five years, which will be maintained this year, said Mr R. Ravimohan, Managing Director, Crisil. While S&P rates around a dozen Indian global issuers, Crisil has over 1,000 domestic ratings. "Suddenly, our smallest issuer will get a change to be noticed in the international arena through the S&P network. International markets will get a deeper understanding of Indian markets," he said. On account of S&P's majority stake, Crisil's domestic pricing is likely to improve, he added. The company already has 65 per cent market share domestically. The two companies would jointly work on several issues, especially new products, said Mr Ravimohan. For instance, Crisil could see whether it could offer a variant of S&P's IPO rating. In February this year, S&P had made a voluntary conditional open offer to the shareholders of Crisil. The offer was for up to 41.7 lakh shares, on the condition that at least 26.5 lakh shares are tendered to receive acceptance.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|