MARKET NEWS

SEL Manufacturing is planning to invest Rs 8.10 billion for expanding its business, reports Business Standard.

Patel Engineering is planning to increase its presence in export markets, especially in the U.S. and Africa and has lined up Rs 4 billion expansion plan.

RCom to issue 17.5 m shares under ESOP .

The State Bank of India becomes only the second bank in the world to have more than 10,000 branches, after China’s ICBC.

Mastek acquires U.S. firm for $29 mln

Software firm Mastek Ltd on Monday announced the acquisition of U.S.-based STG International for $29 million in an all-cash deal.
The acquisition, made through Mastek's U.S. subsidiary, would involve an 85 percent upfront payment, with the remainder based on future earn-outs.
Systems Task Group (STG) provides business software services to the property and casualty insurance market in North America, Mastek said in a statement.
It has about 350 employees and a customer-base which includes more than 35 small and medium American insurance carriers, it added.
In 2007, STG had revenues of $17 million and earnings before interest, tax, depreciation and amortisation of $1.73 million.
The acquisition, which will be completed by June 2008, will be funded by internal accruals and bank borrowings, Mastek said. It will contribute to Mastek's financial performance partly in 2007/08 and fully in 2008/09, it added.
This is Mastek's second insurance acquisition in the U.S., after buying Vector Insurance Services LLC for $10 million last July.

Aban Offshore will raise up to Rs 1.94 billion by issue of non-convertible cumulative redeemable preference shares.
The company will raise that amount in one or more tranches on private placement basis.

Analyst Speak's

The Indian investor seems to be tiring out and expects the market to bottom out with Sensex levels close to 13000-12000, says Shashank Khade of Kotak Securities, on NDTV Profit. Today the market seems to be governed by sentiments not fundamentals, he adds. Allocation in the market seems to have moved from equities to commodities that have outperformed, he says.

The global credit crunch and recession in the US do not seem to have impacted the momentum of Indian companies acquiring US-based companies. The first two month of 2008 saw 10 US-bound acquisitions, the majority of which were in the IT sector, lending credence to the fact that adequate liquidity and comfortable valuations have helped Indian companies buck the global trend.