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HCC approves Lavasa IPO worth Rs20bn Hindustan Construction Company Ltd. (HCC) said that the Board of Directors of Lavasa Corporation Ltd. a Subsidiary Company of the Company, has informed HCC that they have, at their Meeting held on July 30, 2010 approved the proposal to undertake, subject to market conditions, obtaining necessary shareholder and regulatory approvals, an initial public offering of its Equity Shares for an amount up to Rs20bn. Lavasa Q1 net sales were at Rs1.81bn and net profit at Rs490mn, during the quarter ended June 30. HCC also posted a net profit of Rs283.14mn for the quarter ended June 30, 2010 as compared to Rs181.92mn for the quarter ended June 30, 2009. Total Income has increased from Rs8778.99mn for the quarter ended June 30, 2009 to Rs9984.38mn for the quarter ended June 30, 2010. Announcing these major developments, Ajit Gulabchand, Chairman and Managing Director, HCC, said, Lavasas IPO will unlock its true value, thereby enabling HCC to be one step closer in realizing its vision of creating a hill city development in India which offers infrastructure better than that available in an average Indian city. This bonus is a show of gratitude to our shareholders who have shared this journey with HCC. HCC announces 1:1 bonus shares HCC bags Rs1.26bn contract HCC shares jump on results, bonus DLF plans to raise Rs 25bn: report DLF, the countrys largest real estate developer, is planning to raise Rs 25bn in the next 15-18 months through divestment of noncore assets. The report stated that the company sold land parcels worth Rs 2.94bn during the June quarter. The company had a net debt of Rs 184.63bn as on June 30, and has to pay around Rs 21.58bn in this financial year, says report. There are reports that the company is planning to buy out the stake owned by Limitless Group, which is a part of Dubai World to make Bidadi Knowledge City, for around Rs 2bn, according to a report. Dubai World is the investment vehicle of the Dubai government, says report. The company has posted a net profit of Rs 2051mn for the quarter ended June 30, 2010 as compared to Rs 1004.00mn for the quarter ended June 30, 2009. Total Income has increased from Rs 5658.30mn for the quarter ended June 30, 2009 to Rs 8145.20mn for the quarter ended June 30, 2010. DLF Brands to issue shares to DLF promoters

July 26 to 31, 2010

Leader Speak
Prakash C. Kanugo, Chairman & Managing Director, Prakash Steelage Limited Speaking with Yash Ved of IIFL, Prakash C. Kanugo says, "The domestic demand for seamless steel pipes and tubes is 26,600 tons. This is expected to go up to 60,000 tons by 2015-16."...More Anurag Shrivastava, Managing Director, Xebia India Replying to Anil Mascarenhas of IIFL, Anurag Shrivastava says, "Agile is emerging as the new approach to software development."...More Anjanee Kumar Lakhotia, CEO, MBL Infrastructure Speaking with Yash Ved of IIFL, Anjanee Kumar Lakhotia says, "We see huge Infrastructure opportunities for the next 5-10 years and having very clear visibility for roads and highways."...More ___________________________

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Articles
The easy way to filing tax A few simple steps can help you avoid the crowded boat of troubled taxpayers during the tax filing season. Money Today tells you how to navigate through the clutter and find your way to tax nirvana...More Exchange offer Agreed that the coupons are income-tax free if this amount were paid as cash allowance, it could be taxed at up to 30.9%p.a. (30%tax+3%educational cess, for the highest tax bracket). However, they come with a ceiling...More RBI surprises with 0.5% hike in Reverse Repo: Manjunath Gaddi The policy statement is in line with the market expectations, i.e., RBI announced no hike in CRR and a 25 bps (bps) increase in Repo rate but a 50 bps hike in Reverse Repo rate was not expected by many...More

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In Focus Stories
Dayanidhi Maran kicks off e-auction of NTC land With an objective to bring transparency in the process of sale of land of the closed mills of the National Textile Corporation Ltd.,(NTC) Thiru. Dayanidhi Maran , Union Minister of Textiles, commenced the e-auctioning of the sale of land of NTC in Mumbai. This is the first ever initiative for any Govt. Company to sell land by the eauction process. The function was attended by Tmt. Panabaaka Lakshmi , Minister of State for Textiles, Tmt Rita Menon , Secretary Textiles, and senior officials of the NTC and the Ministry. Complying with the directions of Thiru Dayanidhi Maran, the NTC initiated, last month, the process of selling the land through e-auction process under its revival scheme for sale of land of Poddar Textile Mills and Bharat Textile Mills in Mumbai. Earlier, NTC had been resorting to only tender process for selling their immovable properties. The process of eauctioning will be conducted by e-Procurement Technologies Ltd., Ahmedabad on behalf of NTC. Thiru Maran started the process of eauctioning of Podar Mill (Process House) land facing Worli Sea Face at Mumbai, measuring 2.39 acres (9664.44 sq. mtrs.) by e-auctioning. The reserve price of the land has been fixed at Rs. 250 crore. There are 8 bidders participating in the bidding process for the next 3 days from 29th to 31st July, 2010 (3 days) with auto extension as applicable after 5.00 PM on 31.07.2010. Property prices in India rise 18.6% in last one year: Makaan.com Gaining companies
Name OMAXE LTD HOUSING DEVELOPM ANSAL PROPS & IN ANANT RAJ INDUS PARSVNATH DEVEL SOBHA DEVELOPERS 26-Jul-10 107.4 256.0 78.9 118.3 128.6 332.2 30-Jul-10 117.5 266.3 80.1 120.1 129.9 334.2 % Change 9.4 4.0 1.6 1.5 1.1 0.6

Losing companies
Name PENINSULA LAND UNITECH LTD DLF LIMITED MAHINDRA LIFESPA AKRUTI CITY LTD 26-Jul-10 72.9 84.4 313.1 481.9 500.7 30-Jul-10 68.5 81.2 301.4 473.8 499.8 % Change -6.0 -3.8 -3.7 -1.7 -0.2

Results
Omaxe Q1 net profit up 45% Omaxe Ltd, a premier real estate development company in India, today reported net sales of Rs. 252.93 crore for the quarter ended June 30th 2010 as compared to Rs. 1.18bn posted in the corresponding quarter of last fiscal, registered a growth of 112.71 %. Read more HDIL Q1 net profit up 118% Phoenix Mills Q1 net profit up 19% Sobha Developers Q1 net profit up 169% D B Realty Q1 cons net profit at Rs618mn Puravankara Projects Q1 net profit skyrockets
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Domestic News
HC grants interim stay on realty service tax In a major reprieve to home buyers and developers, the Bombay High Court has granted an interim stay on writ petition challenging collection of service tax levied on buildings under construction until further hearing. The writ petition has been moved by Maharashtra Chamber of Housing Industry, an umbrella organization of more than 500 developers. While admitting the petition on July 23, 2010, filed by MCHI against the Union of India and others in the matter of Service Tax levied on building under construction, a division bench of the Bombay High Court comprising Justice V C Daga and Justice S J Kathawala have granted interim stay until further hearing. The MCHI and others through their Writ Petition challenged the constitutional validity of the Finance Act 2010 seeking to amend the Finance Act 1994 introducing and explanation to section 65 (105) (zzq) and 65 (105) (zzzh) to introduce the Service Tax concept of Deemed Service for any commercial or industrial construction of residential complex done prior to obtaining completion certificate. Unitech plans to acquire Unitech Corporate Parks: report Real estate firm Unitech is planning to buy its Londons AIM-listed group firm Unitech Corporate Parks (UCP), over Rs7.50bn, according to a report. Read more RBI rate hike in line with expectations: Pradeep Jain Repo rate and Reverse Repo rate in line with expectations: Rohtas Goel Ackruti City to set up unit for infrastructure projects: report Ackruti City Ltd is planning to revive a plan to set up a unit to bid for infrastructure projects, according to a report. The report stated that the new company will be ready in a year. Ackruti had shut Infrastructure Investment Ltd. a decade earlier after the company failed to win projects, says report. Unitech to evaluate acquisitions in India or overseas Unitech Ltd has constituted a committee to explore and evaluate, potential acquisitions, whether in India or overseas, in the best interests of the Company and its shareholders. As part of this evaluation and in connection with the demerger of the infrastructure business of Unitech into Unitech Infra Ltd, Unitech has been considering a possible offer for UCP. UCP is an AIMlisted company which owns the majority interests in the corporate park assets in respect of which entities within the Unitech Group act as project manager, investment manager and investment adviser and also own the residual interests. Unitech has made an approach and is currently discussing with the independent directors of UCP a possible offer for UCP from the Unitech Group. Under the terms of the possible offer, consideration would comprise 31 pence in cash in respect of each UCP share. It is expected that any offer will be implemented by way of an Isle of Man scheme of arrangement. C&C Constructions wins two DBFOT projects in Bihar Eastern corridor of Pune witnessed rapid growth in commercial sector: Sanjay Bajaj Blue Star board approves acquisition of D S Gupta Construction Unchanged CRR a positive step: J C Sharma DB Realty to develop prime Bandra property D B Realty Limited has received a Letter of Intent from the Government of Maharashtra to develop Sector J of Government colony at Bandra (East), Mumbai admeasuring approx. 2,31,174 square meters (approx. 57 acres).
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Approximately 8 million square feet of Real Estate is expected to be developed. The Bandra Government Colony is located in the heart of Mumbai and can be considered as an extension of the Bandra Kurla Complex. The site derives access from the main Western Express Highway and is arguably the single largest parcel of land available for development in Bandra. D B Realty plans to build a world class enclave comprising of residential and commercial users. This project reemphasizes DBRs focus on urban renewal in the city of Mumbai. The project is expected to be completed over 5 years.

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International News
Israel Governor raises benchmark interest rate to avoid real estate bubble: report Bank of Israel Governor Stanley Fischer has raised the benchmark interest rate for the first time in four months to cool housing prices, according to a report. Read more US new home sales rise 24% in June: report Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month, according to a report. The report stated that the Purchases increased 24% from May to an annual pace of 330,000 while the rate was the second-lowest in data going back to 1963 after Mays downwardly revised 267,000 pace. DJSP Enterprises completes acquisition of Timios: report DJSP Enterprises, Inc. one of the largest providers of processing services for the mortgage and real estate industries in the United States, has completed its acquisition of Timios, Inc, according to a report. The report stated with the acquisition of Timios, Inc, DJSP further demonstrates its commitment to providing market leading services to the real estate and mortgage industries for the life of the loan. British house prices fell 0.5% in July: Nationwide The average house prices in Britain fell by 0.5% in July, the first drop since February, according to Nationwide. The Nationwide Building Society said that house prices in the three months through July still rose 1.3% from the previous three months. UK house price fell 0.1% in July: Hometrack The average British house price fell 0.1% in July, the first decline in 15 months, according to Hometrack. The report stated that Compared to July 2009, house prices were up 2%. Prices saw a 0.1% monthly rise in June and a 2.1% year-on-year increase, says report.

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Notes

Published in 2010. India Infoline Ltd 2010 This report is for the personal information of the authorised recipient and is not for public distribution and should not be reproduced or redistributed without prior permission. The information provided in the document is from publicly available data and other sources, which we believe, are reliable. Efforts are made to try and ensure accuracy of data however, India Infoline and/or any of its affiliates and/or employees shall not be liable for loss or damage that may arise from use of this document. India Infoline and/or any of its affiliates and/or employees may or may not hold positions in any of the securities mentioned in the document. The report also includes analysis and views expressed by our research team. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in this document and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information. India Infoline and/or its affiliate companies may deal in the securities mentioned herein as a broker or for any other transaction as a Market Maker, Investment Advisor, etc. to the issuer company or its connected persons.

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