The Hindu Business Line : Weekly News Round-up

The money earmarked for an IPO will now remain in the applicant's bank account till allotment is finalised, thus eliminating the refund process, according to SEBI.

This money will not be used for any other payment obligation during that period.

At the same time, the applicant will enjoy the interest payable on the amount.

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The Finance Ministry notified May 16 as the date from which service tax is applicable on the seven new services announced in Budget 2008-09.

The services coming under the service tax net are information technology, software, investment management under unit linked insurance plans, internet, telecommunication and services provided by stock exchanges, commodity exchanges and clearing houses.

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The rupee crossed the psychological barrier of Rs 42 last Monday owing to data on slump in industrial production, high oil price and inflation.

It touched a low of Rs 42.91 then recovered and closed at Rs 42.54 during the week against the dollar.

It last visited the Rs 42 levels in April 2007.

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BHEL took over Bharat Heavy Plate and Vessels Ltd last Saturday. It also signed a memorandum of understanding with AP Generation Corporation for setting up a 125-MW integrated coal gasification combined cycle power plant at Vijayawada.

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Lafarge has acquired L&T's ready mix concrete business for an enterprise value of Rs 1,480 crore. By this acquisition, the French cement major is set to emerge as leading player in the country's nascent ready mix concrete market, with a market share of 25 per cent.

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Secondary steel producers have reduced prices by Rs 4,000 a tonne. This move follows a Rs 4,000-a-tonne price cut effected by hot rolled steel producers earlier this month.

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Lacklustre performance by the manufacturing sector dragged down the Industrial Production Index to a six-year low of three per cent in March 2008 as against 14.8 per cent in March 2007.

For fiscal 2007-08, the IIP registered a growth rate of 8.1 per cent as against 11.6 per cent in fiscal 2006-07.

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The annual WPI-based inflation rate rose to a 182-week high of 7.83 per cent during the week ended May 3, higher than the previous week's rise of 7.61 per cent.

The sharp spurt in the latest provisional estimates was mainly on account of higher prices of industrial fuels, metals and some food items.

Compiled by M.J. Madhavan

Podcast by Mohan Padmanabhan