Indraprastha Gas surges on entering into SPA to acquire upto 5 crore equity shares of MNGL

Indraprastha Gas has signed Share Purchase Agreement (SPA) to acquire upto 50,000,000 equity shares of Rs 10 each of Maharashtra Natural Gas (MNGL) at a price of Rs 38 per equity share from certain financial investor shareholders of MNGL in such a manner so that upto completion of the proposed transaction the Company's shareholding in MNGL shall not exceed 50% of the issued, subscribed and paid up share capital of MNGL. MNGL is in City Gas Distribution business in Pune in the State of Maharashtra.

Indraprastha Gas, incorporated in 1998, is engaged in distribution of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Delhi. In 1999 the company took over Delhi City Gas Distribution Project from GAIL (India). IGL laid the network for the distribution of natural gas in the National Capital of Delhi to consumers in the domestic, transport, and commercial sectors.

Tata Motors gains on launching passenger vehicle range in Algeria

Tata Motors has launched its passenger vehicle range in Algeria. The range comprises Tata Indica and Tata Vista from the hatchback range, and Tata Indigo and Tata Manza from the sedans. Moreover, the company has appointed SPA Elsecom for distribution and marketing. The new range is now available in dealerships for sale.

Tata Motors in association with SPA Elsecom has set up dealerships at Algiers and Oran, with further plans underway to establish ten additional sales and service centers, to cover important regions, by the end of this year.

The company has presence in countries across Europe, Latin America, Africa, Russia, Middle East, Asia and lately Australia. Algeria has been ear-marked as a focus market in the Tata Motors global strategy.

Tata Motors, India’s largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world’s fourth largest truck and bus manufacturer.

Qantas looks past record loss, opens door to foreign investors

 Qantas Airways Ltd (QAN.AX) is looking past a record annual loss and predicting blue skies ahead, as a landmark change in Australian laws opens the door to significant foreign investment in the airline's international arm - its biggest headache.

The prospect of new funding - long desired by the struggling national flag carrier - and a surprisingly positive outlook for the current year sent Qantas' shares rising to a three-month high on the Sydney exchange on Thursday.

The so-called 'Flying Kangaroo' has been bruised by high fuel costs, a strong Australian dollar, increasing international competition and a domestic price war with arch-rival Virgin Australia Holdings (VAH.AX).

Qantas has also long complained it is competing at a disadvantage due to Australian laws restricting the level of foreign investment in the carrier while its rivals are allowed unfettered funding.

The airline unveiled a new holding structure that will divide its domestic and international arms, a separation made possible following the passing of changes to the Qantas Sale Act earlier this week, the carrier said.

Foreign and individual investors can now take a stake of up to 49 percent in the international arm. That is a major change from the previous limits on ownership by individual investors of 25 percent and by foreign-owned airlines of 35 percent.

Oil slips towards $102 on ample supply

Brent crude oil fell towards $102 a barrel on Thursday, depressed by ample supply and lacklustre demand as global economic growth remains tepid. 

Oil supply is expected to exceed demand this year, analysts forecast, and crude oil benchmarks on both sides of the Atlantic Basin are on track to post a second monthly decline. 

October Brent crude was down 25 cents at $102.47 a barrel by 0800 GMT. Last week, the contract hit a 14-month intraday low of $101.07 and it has been unable this week to break out of the $102-$103 range. 

US crude slipped after news of the fire at BP's largest refinery in the United States. The October contract was last down 40 cents at $93.48 a barrel

Political instability in Iraq and Libya continued to weigh on investors' minds even though oil exports from the two countries have actually risen in recent months. 

Adani buys Australia coal mine royalty rights from Linc for $145 million

Adani Enterprises has agreed to pay A$155 million ($145 million) to Linc Energy (LINC.SI) to buy out the Australian firm's rights to future royalties from Adani's huge but delayed Carmichael coal project, already four years behind schedule.

The deal comes amid growing questions on whether Adani will eventually go ahead with a project to build what would become Australia's biggest coal mine, amid opposition from green groups and a slump in coal prices to five-year lows.

A final decision to go ahead with the project, in Northeastern Australia, would mean spending A$16.5 billion to dig the mine, build a rail line and a port.

"This agreement reflects Adani's confidence in the progress of Carmichael mine, which received final federal environmental approvals from the Australian government last month," Adani said in a statement emailed to Reuters. "The agreement...underlines Adani's consistent commitment to ensure that the high-quality coal from the Carmichael mine is cost-efficient."

The agreement announced by Singapore-listed Linc on Thursday means Linc is walking away from a A$2 per tonne royalty, indexed to inflation, on the first 20 years of production from the coal mine. Adani bought Carmichael from Linc Energy amid a coal boom in 2010, paying A$500 million in cash upfront and agreeing to pay the royalty stream.

In 2010, Adani said it aimed to open the mine by 2014 and at the time Linc said it could earn more than A$3 billion in revenue over the life of the royalty stream.

Linc chief executive Peter Bond said the two companies agreed on the A$155 million price tag based on the risks of the current weak coal price and "all the other risks of the coal industry at the moment".

"I actually have a lot of confidence that Adani will get the pit going," Bond told Reuters by phone from Brisbane. "It's more about us focusing our strategy into cashing up the balance sheet and driving towards a more focused outcome like drilling our shale in South Australia."

 the agreement was a win-win deal for both Adani and Linc, as the Indian firm gets rid of a liability on the project, while Linc secures cash up front from a mine that may not be built for many years.

Adani is paying compared with the net present value of the royalty stream, which they estimated at A$600 million, implied Adani and Linc had put a 25 percent to 30 percent probability on the Carmichael project going ahead.

NHPC jumps as focus shifts to hydro power after coal ruling

Shares in NHPC Ltd surged as much as 6.4 per cent in trade on Thursday. Traders said the focus could shift to hydro power as an alternative to coal in electricity generation. 

NHPC was the top gainer in BSE large-cap stocks called "A group" and NSE equity derivatives. 

Volumes were at 1.4 times of the five-day average. The Supreme Court on Monday declared coal block allocations made since 1993 illegal. 

Gold up for third day on softer dollar; physical demand lags

Gold rose for the third straight day on Thursday on softening dollar and increased tensions between Ukraine and Russia, but the precious metal was under pressure from rallies in equities and the prospect of a US interest rate hike. 

Higher interest rates would dull the appeal of non-interest-bearing assets such as gold, which was struggling to cross the key resistance of $1,300 an ounce. Gold prices were more than $600 below a record hit in 2011. 

Gold added 0.56 per cent to $1,289.60 an ounce by 0635 GMT, moving away from a two-month low of $1,273.06 hit on Aug. 21. 

In other markets, Asian shares held steady after pulling back from a 6-1/2 year high as the recent rally in risk assets petered out for now, while the euro clung to modest gains after rebounding from 13-month lows. 

Brent hovers below $103 as ample supply weighs

 Brent futures dipped on Thursday, but still held between $102 and $103 a barrel, as ample supply and a refinery fire in the United States that could reduce crude demand weighed on prices. 

Global oil supply is expected to exceed demand this year, cooling prices. Oil futures on both sides of the Atlantic Basin are on track to post a second monthly decline. 

October Brent crude has been unable to break through the $102-$103 range this week, just off a 14-month low hit last week. On Thursday, Brent was down 3 cents at $102.69 a barrel by 0639 GMT. 

US crude slipped on news of the fire at BP's largest refinery in the United States. The October contract fell 25 cents to $93.63 a barrel. 

Rupee recovers 7 paise against the US dollar

The rupee recovered by 7 paise to trade at 60.38 against the US dollar in early trade today on selling of the American currency by banks and exporters amid sustained foreign capital inflows. 
Besides, a higher opening in the domestic equity market and strengthening of the euro against the dollar overseas also supported the local currency.

Yesterday, the rupee had lost two paise to close at 60.45, nearing its four-week high levels, against the American currency on dollar demand from importers. 

Railway related stocks rally as government notifies 100% FDI in the sector

Railway related stocks such as Kalindee, Texmaco Rail, Kernex rallied up to 14 per cent in intraday trade on Thursday, after the government notified liberalised FDI norms for the Railways, permitting 100 per cent foreign direct investment through automatic route in several areas, including high speed trains. 

Other segments of the Railways in which FDI will be allowed include suburban corridor projects through Public Private Partnership (PPP), dedicated freight lines, rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities, railway electrification, signalling systems, freight terminals, passenger terminals and infrastructure in industrial parks like railway line/sidings.

However, proposals involving FDI beyond 49 per cent in sensitive areas, from security point of view, will be placed before the Cabinet Committee on Security (CCS) for approval by the Railway Ministry on a case-to-case basis, said a press note of the Department of Industrial Policy and Promotion (DIPP). 

Defence related companies rally as government notifies FDI hike

Shares of defence related companies such as Astra Microwave, BEML  etc. surged in trade after the government notified increase in foreign direct investment (FDI) limit to 49 per cent through approval route in the sector.

The move is aimed at boosting domestic industry of the country which imports up to 70 per cent of its military hardware.

Reacting to the news, stocks related to defence sector such as Astra Microwave rose as much as 7.02 per cent, followed by Walchandnagar Industries  Ltd which surged as much as 5.3 per cent and BEML, Pipavav Defence, Dynamatic Technologies  rose nearly 5 per cent each.

Other defence related stocks such as BHEL moved 0.3 per cent higher, Walchandnagar Industries was up 3.61 per cent and Dynamatic Technologies was 2.84 per cent higher.

FDI ceiling in the sensitive defence sector has been hiked from current 26 per cent, with the condition that the company seeking permission of the government for FDI up to 49 per cent should be an Indian company owned and controlled by Indians. 

Foreign direct investment proposals above 49 per cent will have to seek the approval of the Cabinet Committee on Security on "case to case basis, wherever it is likely to result in access to modern and state of the art technology in the country," according to the press note of the Department of Industrial Policy and Promotion. 

Supreme Court directs DLF to pay Rs 630 cr penalty

In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore.

n a huge win for customers, the Supreme Court (SC) on Wednesday directed realty major DLF  to submit Rs 630 crore within three months. The company will be submitting undertaking of interest of 9 percent on Rs 630 crore fine. 

In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore. This as a complaint was filed by Belaire Owners Association, Gurgaon - the owners’ association of a DLF project. The association alleged that DLF imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments and these conditions had serious adverse effects and ramifications on the rights of the buyers. This tribunal then dismissed DLF's plea against the fine imposed by the CCI. The tribunal had given the company 60 days to pay the penalty or approach the Supreme Court. DLF had then said that it would move the Supreme Court on the matter. 

Philips India's garment segment to grow

Philips India plans to clock 25 percent compound annual growth rate (CAGR) in the garment care category by the end of 2015, A.D.A. Ratnam, president, consumer lifestyle, Philips India said here Wednesday.

"In Philips, garment care category is growing in excess of 20 percent (CAGR). We would like to increase it substantially over a period of time, somewhere in the range of 25 percent plus by end of 2015. That's the way we want to grow and reach to more amount of customers," Ratnam told IANS on the sidelines of an event to launch Philips PerfectCare Iron.

In India, the garment care market is Rs.1,060 crore, which is growing at 10 percent CAGR.

"The introduction of more and more categories and the introduction of products (PerfectCare Iron) like these which will take us to the next level. We have a reasonably strong distribution channel and brand equity," he added.

The company has more than 20,000 outlets in the country.

Since January till date, the company has launched around 20 products, he said, adding: "Before Diwali (the festive season) there will be two-three more launches in the mother and child and air purifier categories."

The niche product in the ironing category that the company launched Wednesday is priced at Rs.23,495.

"The product is value for money and the customer is willing to buy," Ratnam said.

He mentioned that on an average, middle-class Indian families spend around Rs.1 lakh on dresses every year, hence those customers would not mind shelling out some more money to take care of their garments.

Liberty Shoes to consolidate biz in 3 phases

The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Fast-moving consumer goods company  Liberty Shoes  is likely to undertake a consolidation exercise to increase operational efficiencies and eliminate royalty. According to sources, the consolidation will possibly complete on three years in three different phases. The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Liberty had entered into a two-year agreement with partnership firms in FY13 .the proposal is likely to be submitted to the board after clarity on tax implication, evaluation of assets. The payment will be made through allotment of shares to partners post valuations exercise.  Liberty Shoes declined to comment on this development. 

BEL, BEML, Astra Micro up 5-8% on hike in defence FDI limit

DIPP has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent.

Buyers lapped up shares of Bharat Electronics ,  BEML and  Astra Microwave Products on Wednesday on hike in foreign direct investment limit in defence space. These stocks gained as much as 5-8 percent intraday. The Department of Industrial Policy and Promotion (DIPP) on Tuesday released a press note on defence FDI , saying foreign investment will be allowed through the FIPB route and foreign institutional investors (FIIs) will also be allowed to invest. It has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent. However, the caveat is that company seeking permission of the government for FDI up to 49 percent should be an Indian company owned and controlled by Indians.

According to the DIPP press note, foreign direct investment proposals above 49 percent will have to ask for Cabinet Committee on Security's permission. Further, the FDI limit of 49 percent is composite and includes all kinds of foreign investments - FDI, FIIs, FPIs, NRIs, foreign venture capital investors (FVCIs) and qualified foreign investors (QFIs). At 12:44 hours IST, the scrip of BEML was locked at 5 percent upper circuit at Rs 540.55 on the BSE. There were pending buy orders of 23,268 shares, with no sellers available. Bharat Electronics rose 7.26 percent to Rs 1,890 while Astra Microwave Products climbed 2.84 percent to Rs 128.75.

Brent rises near $103, rebounds from lows on North Sea outage

Brent crude oil rose towards $103 a barrel on Wednesday, recovering from a 14-month low hit last week as traders monitored maintenance work in the North Sea, although healthy global supplies limited gains. 

Oil benchmarks on both sides of the Atlantic have fallen by more than 10 per cent since mid-June and remain on track to post a second monthly fall against a backdrop of lower imports by the United States and slowing growth in China and Europe. 

But on Wednesday traders were watching to see if the Buzzard oilfield in the North Sea, one of the biggest contributors to physical supplies underpinning Brent future contracts, would return quickly after shutting again for additional maintenance. 

Brent crude for October delivery was up 43 cents at $102.93 a barrel by 0804 GMT, moving away from a 14-month low of $101.07 a barrel last week. 

US crude rose 26 cents to $94.12 a barrel after settling 51 cents higher on Tuesday on stronger economic data in the United States. Its discount to Brent was at $8.81 a barrel, having widened to its largest in two months on Monday. 

Crude inventories fell by 1.3 million barrels in the week ended Aug. 22 to 361.5 million, data from industry group the American Petroleum Institute (API) showed on Tuesday.

Burger King, Tim Hortons merge to form fast-food giant

Burger King is buying Canada's Tim Hortons coffee-and-donuts chain in an $11.4 billion deal that raised concerns about another US company moving abroad for tax advantages. 

Burger King Worldwide denied that the deal announced Tuesday, which would create the world's third-largest fast-food company, was being undertaken for tax reasons. 

But the planned move of the "Home of the Whopper" headquarters from Florida to Canada, which could cut its corporate tax bill, sparked calls for boycotts from consumers and objections on Capitol Hill. 

The deal, backed by legendary investor Warren Buffett, would create a giant of the quick-service restaurant (QSR) industry with $23 billion in sales and more than 18,000 restaurants in 100 countries. 

That would propel the as-yet unnamed new company to number three worldwide in sales after McDonald's and Yum!, owner of Pizza Hut, Taco Bell and Kentucky Fried Chicken. 

The planned merger is the latest in a wave of controversial tax-inversion deals, in which a US company relocates its statutory headquarters outside the country to take advantage of lower tax rates. 

In the deal, Brazilian-controlled 3G Capital will convert its roughly 70 percent equity stake in Burger King to a 51 percent shareholding in the new company. 

Venus Remedies Ltd rallies on strategic tie-up with Teva

Venus Remedies Ltd rallied as much as 13.9 per cent in trade on Wednesday, after the pharma major said it has entered into a collaborative agreement with Israel-based generic drug maker Teva for selling an anti- cancer drug in the Canadian market. 

Under this collaboration, Venus Remedies will be initially manufacturing the drug at the Venus Medicine Research Centre, its research unit, for assisting Teva in registrations.

Thereafter, Venus will also use its manufacturing capabilities to support Teva in enhancing the business from this drug in the Canadian market, said a company statement. 

UCO Bank down 8% on order of NPAs' forensic audit by FinMin

The finance ministry ordered forensic audit in case of non-performing assets (NPA) of the bank and that forensic audit will find out irregularities in loan sanction.
Shares of  UCO Bank fell more than 8 percent in early trade Wednesday on reports of some irregularities in loan sanction. The finance ministry ordered forensic audit in case of non-performing assets (NPA) of the bank and that forensic audit will find out irregularities in loan sanction.
Asset quality of the pubilc sector lender had improved in the quarter gone by . Gross NPAs of the public sector lender stood at Rs 6,346.3 crore at the end of June 2014, down 11.6 percent compared to same quarter last year and down 4 percent compared to previous quarter. Net NPAs declined 6 percent sequentially and 15 percent on yearly basis to Rs 3,344 crore in the quarter ended June 2014.
chairman of the bank had said, " The focus on recovery upgradation has continued and that is what is helping the bank to reduce gross NPAs. "Even net NPAs at 2.33 percent are below the last year 3.15 percent level as on June 30th and March 31st this year it was 3.28 percent. So continuously both gross and net NPAs are coming down and the focus will continue on the recovery and upgradation of distressed assets," he added.

TVS Motor Company rallies over 4%, hits 52-week high on growth plans

TVS Motor Company  Ltd rallied as much as 4.5 per cent in trade on Wednesday to hit its fresh 52-week high of Rs 193.10, after the two wheeler maker said it is eyeing about 18 per cent market share in the country's two-wheeler segment over the next two years on the back of its recently launched products as well as new launches planned in the future. 

The company, which today expanded its scooter range with the launch of Scooty Zest 110 priced at Rs 42,300 (ex-showroom Delhi), plans to introduce a couple of new products, including a completely new Apache bike in the next 6-9 months.

"Our market share last year stood at 12 per cent. Currently, it is around 13.5 per cent. By the end of this year we expect it to touch 14-14.5 per cent and in the next two years it should be around 18 per cent," PTI reported quoting TVS Motor Company Vice-President (Sales) J S Srinivasan. 

Rupee down 4 paise against the US dollar

The rupee depreciated by four paise to 60.47 against the US currency in opening trade today at the Interbank Foreign Exchange market due to dollar's gains against other currencies overseas. 

 besides dollar's gains against other currencies on positive economic data, month-end demand for the American unit from importers put pressure on the rupee, but a higher opening in the domestic equity market capped the losses. 

Yesterday, the domestic currency had gained 13 paise to close at nearly four-week high of 60.43 against the American unit following fresh dollar selling by exporters and sustained investments by foreign funds. 

Indian Bonds Advance as Growing Cash Supply Seen Boosting Demand

 India's 10-year government bonds gained, pushing the yield down from a two-week high, on speculation a growing cash supply will boost demand.
The overnight interbank borrowing rate has averaged 7.68 percent this month, compared with 8.12 percent in July. That’s less than the Reserve Bank of India’s key repurchase rate of 8 percent. Lenders’ overnight borrowings from the RBI to meet shortages have averaged 98 billion rupees ($1.6 billion) in August, from 128 billion rupees the previous month, official data show.
“Easing liquidity conditions are a source of comfort for the market,” said Debendra Kumar Dash, a fixed-income trader at DCB Bank Ltd. in Mumbai. “The market has confidence that the RBI will make sure that the overnight lending rate is close to the RBI’s repo rate.”
The yield on the 8.4 percent bonds due July 2024 fell one basis point, or 0.01 percentage point, to 8.55 percent, as of 10:34 a.m. in Mumbai according to the central bank’s trading system. The rate climbed four basis points yesterday to the highest level since Aug. 12.
Investors are waiting for another increase in the foreign-investment limit for sovereign notes, said Dash. Overseas funds can currently own a combined $25 billion of the debt and are already at 99.2 percent of that, according to National Securities Depository Ltd. data. The central bank raised the cap by $5 billion on July 23 and RBI Governor Raghuram Rajan said Aug. 6 that there was a possibility of increasing it further.
One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, were little changed at 8.46 percent.

Gold premiums widen as jewellers stock up in anticipation of festival demand

Gold premiums, or prices charged by suppliers in excess of the gold rate, have increased to $8-11 an ounce from $3-4 since early last week, as jewellers stock up on inventory ahead of the festival season amid signs of a gradual pickup in consumer demand, said Sudheesh Nambiath, senior analyst, GFMS Thomson Reuters, a precious metals analytical company. 

Jewellers said that the decline in prices by around $27 an ounce over the past week also helped. Indian gold prices take their cues from the metal's overseas rate as the country imports much of its consumption. 

However, gold rose by 1 per cent to $1,289.06 an ounce as investors assessed the geopolitical impact of tensions in the Middle East and Ukraine.

On commodity exchange MCX, gold was up three fifths of a percent at Rs 27,950 ex-VAT. A stronger rupee limited the domestic rate rise in noon trades. 

Havells India shares surge over 12 pc after stock split

 Shares of Havells India, maker of electrical equipment, soared over 12 per cent post stock-split to touch one-year high in a subdued market today.

The company stock surged 12.18 per cent to Rs 279.70 - 52-week high - on the BSE as against 249.31 (adjusted basis). The stock had closed at Rs 1,246.55 (pre-split) yesterday. 

Havells had announced a stock split in the ratio of 5:1, that is every share with face value Rs 5 will be split into 5 shares of Re 1 each.

The company had in a filing to the BSE on August 11 said it has fixed August 27, 2014 as record date for the purpose of sub-division of equity shares of Rs 5 per share of the company into 5 shares of Re 1 each. However, the split has taken effect today itself.

Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share.

ONGC stake sale: Govt selects merchant bankers

Among the bankers include Citigroup and ICICI Securities and the ONGC stake sale is expected to be completed by the end of September.

The Department of Divestment has selected five merchant bankers for managing the 5% stake sale of ONGC through the offer for sale mechanism, according to a media report.
Among the bankers include Citigroup and ICICI Securities and the ONGC stake sale is expected to be completed by the end of September, the report added.
At present, the Government holds 68.94% stake in the company and is expected to raise around Rs. 18,250 crore through the stake sale.
On Monday, 14 merchant bankers made presentations before the Department of Disinvestment. Five legal firms also made presentations, the reports further said.
The CCEA is expected to take up the issue at its meeting on August 27. 

Shree Cement to buy JP Associates cement grinding unit for Rs 360 crore

Shree Cement is acquiring Jaiprakash Associates' 1.50 million tonne (mt) cement grinding unit at Panipat in Haryana, for a total consideration of Rs 360 crore. 

The acquisition is subject to satisfactory completion of due diligence and the cost of acquisition to adjustment for any short term liability and net working capital taken over as on the closing date, the company said in a statement sent across to the stock exchanges on Monday. 

Shree Cement managing director HM Bangur said that the two groups have merely entered into an agreement to buy out the Panipat unit and not take over the company. The deal would get finalized only after the due diligence gets completed within the next two weeks. 

If the deal is clinched, the acquisition will enhance Shree Cement's cement grinding capacity to 21.5 mt per annum and 23 mt by June 2015 from 20 mt now. 

Incidentally, the Jaypee group has been on a debt-reduction spree and is selling most of its cement assets to reduce its debt of Rs 60,000 crore. In September, the company offloaded its Gujarat cement plant to UltraTech Cement for Rs 3,800 crore. 

Asian Development Bank raises $50 million via offshore rupee-linked bonds

The Asian Development Bank has raised $50 million through offshore, rupee-linked, the lender said in a statement on Tuesday. 

The rupee-denominated bonds would be settled in US dollars and would mature in August 2016, the statement said. 


The bonds were sold as part of the Manila-based lender's $500 million offshore rupee-linked bond programme, which aims to deepen India's capital markets, it added. 

Azim Premji set to buy 10% in Manipal Education for Rs 900 crore

India's richest tech billionaire and Wipro  boss Azim Premji is set to invest Rs 900 crore ($150 million) for over 10% stake in Manipal Global Education Services, people directly familiar with the matter said. 

PremjiInvest, the proprietary investment fund of the Wipro chairman, is in the final lap of deal making, which could be announced soon. This will be the single largest investment by Premji, 69, with estimated net worth of $16 billion and broader interests in the education sector. 

Manipal Global, the for-profit education arm of the Bangalore headquartered Manipal Education and Medical Group (MEMG), operates a string of overseas campuses stretching from the Caribbean to Malaysia. India's largest education services company also operates test and assessment centers, skills development platforms and employment exchanges. 

Tech Mahindra rallies over 1%, hits 52-week high on growth outlook

Tech Mahindra Ltd rallied as much as 1.7 per cent in trade on Tuesday to hit its fresh 52-week high of Rs 2348 in trade, after the company said that it expects its digital unit to contribute more than $500 million to revenue by 2015, as the company moves towards its goal of achieving a $5 billion top line by that time. 

Tech Mahindra's digital unit includes also technologies related to network, security and sensors that comprise the Internet of Things, an idea of connecting almost everything online. 

The company, which has targeted growing revenue to $5 billion by 2015, expects 10% of that coming from the NMACS focused unit. Tech Mahindra reported revenue of just over $3 billion for fiscal year ending on March 31, 2014.

Gold ticks up but stuck near 2-month low on firm dollar

Gold regained some strength on Tuesday on bargain hunting but still held near its weakest level in two months as a firmer US dollar and rallies in equities undermined the metal's appeal as an alternative investment. 

Tensions between Russia and Ukraine as well as violence in the Middle East have failed to stir up demand from investors, although some jewellers purchased bullion after prices dropped below $1,300 an ounce. 

Cash gold added 0.22 per cent to $1,279.11 an ounce by 0328 GMT, still not far above a two-month low of $1,273.06 hit on August 21. 

Rupee up 4 paise against the US dollar

The rupee recovered by four paise to 60.52 against the US dollar in early trade today at the Interbank Foreign Exchange market on increased selling of the American currency by exporters. 

The local currency had lost 9 paise to close at 60.56 per dollar yesterday following late profit booking in local equities and fresh dollar demand from oil importers. 

selling of the US currency by exporters, dollar's weakness against other Asian currencies overseas also supported the rupee but a lower opening of the domestic equity market capped the gains. 

Mahindra bullish on e-commerce, plans retail expansion

Bullish on e-commerce potential in India, Mahindra group is set to expand in the segment with its specialty retail venture Mom & Me and also gearing up to adopt franchise model for the next stage of expansion. 

At present, the group operates 110 company-owned stores and is looking to go franchise route for further expansion of Mom & Me that focusses on maternity and infantcare products. 

On whether the group would be looking to invest in other e-commerce companies, Mahindra said at present the focus was on expanding the reach of Mom & Me. 

Petrochemicals prices up even as crude oil dips under $100

While international crude oil prices dropped below the $100 a barrel-mark this week, data released simulateneously showed prices in the $3 trillion global petrochemicals market rose for a second consecutive month.

As per Platts Global Petrochemical Index (PGPI), a top research and information source on the industry, global petrochemicals prices rose over 4 percent in July to $1,446 per metric tonne (mt) following a 2 percent monthly advance in June.

Prices declined in each of the four months prior to June. The PGPI is a benchmark basket of seven widely used petrochemicals published by Platts. On a year-on-year basis, the petrochemical prices were up 10 percent over July 2013.

While crude oil and naphtha prices were down 5 percent and 2 percent respectively in July, production issues for some products like olefins put upward pressure on prices.

"While prices of some products dropped in line with the lower input costs by late July, it didn't really show in the full monthly average," said Jim Foster, Platts editorial director of petrochemical analytics.

Petrochemicals are used to manufacture plastic, rubber, nylon and other consumer products and are utilized in manufacturing, construction, pharmaceuticals, aviation, electronics and nearly every commercial industry.

Dalmia Bharat, OCL India in talks for a merger

As the cement sector picks up and is showing signs of good prospects going forward, Dalmia Group is looking at a merger of its listed cement companies Dalmia Bharat and OCL India, sources with direct knowledge share. A source also shared that the Dalmia family members are in talks for the merger and the swap ratio is expected to be in favour of the OCL India's shareholders. 

As part of the mega restructuring plan Dalmia Bharat will also merge its unlisted arm Dalmia Bharat Enterprises with itself. Global private equity firm KKR owns 14.5% stake in Dalmia Bharat Enterprises will eventually own a minority stake in the merged listed entity, a source said. 

Dalmia Bharat and OCL India have revived plans of the merger after a failed attempt way back in 2008. Dalmia Bharat owns 48% stake in OCL India and both companies together have a cement capacity of close to 20 million tonnes, Dalmia Bharat being the larger one. 

Joint force of Dalmia Group's cement companies will also inch closer to India's third largest cement producer, JP Associates, in terms of capacity. JPA has been selling its assets to reduce the group's debt pile. JP Associates's 4.8 mt unit was sold to Ultratech  in 2013 and Bhilai unit of 2.2 mt to Dalmia Bharat, Bokaro unit is also on the block. On the other hand, Dalmia Group is in the expansion mode and is expected to reach 24 mt of cement capacity by 2015-end.