• Worst over, says govt as GDP grows 6.1% in Q1
• ING Vysya Life owners looking to shed stake
• IL&FS Financial to take over Maytas Infra
• According to data released by the Central Statistical Organisation, the economy grew at 6.1% in the first quarter of 2009-10—an improvement over the sub-6% seen in the previous two quarters as higher government spending boosted demand. However, analysts say a slowdown in consumption and investment growth, as well as lower agriculture growth due to the poor monsoons, could crimp growth in the coming quarters. Nevertheless, GDP growth is at its highest since the collapse of Lehman Brothers in mid-September last year, fanning expectations of a faster recovery. The economy grew at 5.8% in Q4 and at 5.3% in Q3 of FY09. In Q1 last fiscal, though, it grew at a robust 7.8%. India is now the second-fastest growing economy after China, which expanded at 7.9% in April-June this year. (FE)
• According to sources, Indian shareholders of ING Vysya Life Insurance CoExide Industries, Ambuja Cements and Enam Group are looking to divest part of their holdings in the company, with their investments failing to yield much in dividends or valuations.The hunt for a domestic investor is on as ING already holds the maximum permissible foreign investment level of 26%. Exide holds nearly 50% while the combined stake of Ambuja and Enam is pegged at 24%. (ET)
• The IL&FS group will take control of infrastructure firm Maytas Infra in line with a Company Law Board directive. The CLB, based on a Maytas application, has instructed the company to induct IL&FS Financial Services as a promoter and allow it to assume management control, Maytas said in a statement. IL&FS would have a stake of 37.1% in Maytas Infra and will pump in Rs 55 crore to revive the firm. IL&FS, which holds 14.5% shares directly in Maytas, has been allowed to foreclose its rights on 22.6% pledged shares, which would take its total holding to 37.1%. The company will have to make an open offer later to meet the Securities & Exchange Board of India’s takeover norms. Further, IL&FS would have to hold at least 26% stake in Maytas for two years along with the management control. (FE)
