IRFC to launch rupee-denominate bonds abroad

In order to liberalise the bond market, the RBI in its April 7, 2015 monetary policy, allowed companies to sell offshore rupee-denominated bonds.

Indian Railways Finance Corp said that it is keen to raise rupee-denominated offshore bonds, according to a media report.

At present, IRFC is discussing such bonds with investment banks. IRFC is expected to raise Rs. 6,300 crore through such an offer, the report added.

However, no exact details have been provided about the launch of the bonds. In order to liberalise the bond market, the RBI in its April 7, 2015 monetary policy, allowed companies to sell offshore rupee-denominated bonds.

it is proposed to expand, in consultation with the government of India, the scope of such bond issues by the international financial institutions as also to permit Indian corporates eligible to raise external commercial borrowing (ECB) through issuance of rupee bonds in overseas centres with an appropriate regulatory framework,” RBI said in its policy statement.

The funds would be used by Indian Railways to renovate the railway network, introduce bullet trains and AC trains in Mumbai, the report added. 

Titagarh wagons clarifies on receiving license for manufacturing Defence equipment,

The Exchange had sought clarification from Titagarh Wagons Ltd with respect to news article appearing on ET Now on April 21, 2015 titled "Titagarh wagons Ltd & Cimmco Ltd got license for manufacturing Defence equipment, Titagarh Wagons to start manufacturing of defence equipments in december at Cimmco Unit" 

The Exchange had sought clarification from Titagarh Wagons Ltd with respect to news article appearing on ET Now on April 21, 2015 titled "Titagarh wagons Ltd & Cimmco Ltd got license for manufacturing Defence equipment, Titagarh Wagons to start manufacturing of defence equipments in december at Cimmco Unit"

Titagarh Wagons Ltd clarified "As regards Titagarh Wagons Limited, an application has been made for similar industrial license, however the development any requiring intimation pursuant to Clause 36 shall be duly conveyed to your office in due course.

Please note that other than the above, we or nobody on our behalf have issued any press release on the subject."

Tata Steel clarifies reports on acquiring Electrosteel Steel

While Tata Steel as part of its business strategy regularly evaluates strategic opportunities across various segments of its operations in different geographies. 

The Exchange had sought clarification from Tata Steel Ltd with respect to news appearing on ET Now on April 21, 2015 titled "Tata Steel , Vedanta looking to buy Electrosteel Steel Ltd ; Electrosteel Steel management looking to sell off company due to debt burden of Rs 6000 Crs."

Tata Steel Ltd clarified "Tata Steel Limited is a large Indian multi-national steel manufacturing company having operations in 26 countries and commercial presence in over 50 countries. The Company is the world's second most geographically diversified steel producer with about 80,000 employees spread across five continents. While Tata Steel as part of its business strategy regularly evaluates strategic opportunities across various segments of its operations in different geographies, in the instant matter, we would like to clarify that currently there is nothing to disclose under the obligations of Clause 36 of the Listing Agreement on the current media speculation. 

The Board and Management of Tata Steel is committed to making disclosures at the appropriate time so as to eliminate any asymmetry of information. The Company has robust disclosure standards and follows a policy of not commenting on market rumours."

Century Textiles soars on divestment plans

Century Textiles will divest its cement business and merge it in an all share deal with UltraTech.

Century Textiles & Industries is trading on gung-no note on the BSE in early morning deals, on the back of positive news flow.

According to media reports, Century Textiles will divest its cement business and merge it in an all share deal with India's largest cement maker UltraTech.

Now, the stock is trading at the highest level of the day - with a surge of over 6.6 percent at Rs. 762.

On the BSE, so far 211,000 shares have changed hands at the counter as against the daily average volume of 447,000 shares in the past two weeks.

Meanwhile, the BSE Sensex has spurted over 100 points at 27,779

Govt may sell stakes in IDFC, Tata Comm: Reports

Report said that the Government is considering floating an exchange-trade fund. 

IDFC and  Tata Communication are planning to sell stakes to raise funds for social-sector programmes, according to reports.

Report said that the Government is considering floating an exchange-trade fund.

The Centre holds 26.12% of Tata Communications, While Videsh Sanchar Nigam Ltd was among the first few companies the government had privatised. 

Small banks to be merged with large PSBs: Govt

The objective is to improve profitability by leveraging economies of scale and avoiding duplication of costs of small PSBs 

Ministry of finance has proposed that small public sector banks, with assets of less than Rs. 2 trillion, should be merged with large PSBs, according to a media report.

The objective is to improve profitability by leveraging economies of scale and avoiding duplication of costs of small PSBs, the report said.

The term “assets” include loans and investments made by the bank. Andhra Bank, Bank of Maharashtra and Dena Bank are some of the small PSBs which has less than Rs. 2 trillion of assets, the report added.

Among the large PSBs include Bank of India, Punjab National Bank and Union Bank, the report said further. 

Mining lease auction: State govts may get more powers

According to MMDRA Act, 2015, “the state government may in its discretion identify a specific end use” as a prerequisite for auction of mining lease” 

The central government is proposing to give state governments the powers to reserve end-use of any mine put up for mining lease (ML) auction, according to a media report.

Under the mineral auction rules mentioned in the Mines and Minerals (Development and Regulation) Amendment (MMDRA) Act, 2015, “the state government may in its discretion identify a specific end use” as a prerequisite for auction of ML.”

The concept of a composite licence, prospecting licence (PL)-cum-ML, for an area where there is inadequate evidence of mineral contents has been added in the recently passed MMDRA Act, the report added.

PL is granted for exploring, locating and proving mineral deposits. ML is required finally to extract minerals.
Before the enactment of MMDRA Act, the state governments had the discretionary powers to hand over these licences.

Top corporate news of the day - April 22, 2015

Adani Group has finally acquired Lanco Infratech's 1200 MW Udupi power plant for an enterprise value of Rs.63bn. 

The government will soon auction 69 small and marginal oil fields of state-owned ONGC and Oil India to private firms as a precursor to a full fledged licensing round. 
 
Adani Group has finally acquired Lanco Infratech's 1200 MW Udupi power plant for an enterprise value of Rs.63bn. 
 
Bayer CropScience opens new multi-crop breeding station in Haryana. 
 
Claris Lifesciences has received supplemental approval from the US health regulator to market Fluconazole injection in 50 ml PVC bags, used for treating fungal infections, in the American market. 
 
Neyveli Lignite Corporation Limited has commenced commercial operations of India's first Circulating Fluidised Bed Combustion Boiler plant in Tamil Nadu. 
 
Vendors of Japanese two-wheeler major Yamaha Motor are investing Rs.10bn to set up base at the company’s vendor park adjoining the still-to-be-inaugurated facility in Tamil Nadu. 
 
Kotak Mahindra Bank has approached the Foreign Investment Promotion Board to hike foreign investment ceiling in the bank to 55%. 
 
Rural Electrification Corporation said it has formed three subsidiaries with a focus on as many number of power transmission projects. 
 
Cimmco, a subsidiary of wagon and railway coach manufacturer Titagarh Wagons Ltd, said it has received industrial license for manufacturing defense equipment. 
 
Sadbhav Infrastructure has sealed a pact to acquire a 60% stake from HCC group company in a highway project. 
 
Vodafone India has invested over Rs.4500mn in two of its circles to improve its telecom services

Top economic news of the day - April 22, 2015

The recurring spells of un-seasonal rains and hailstorms has caused massive damage in the mango belt of Uttar Pradesh with the output estimated to fall 50%.

Affected by sluggish Chinese demand, the country has exported only 4.5mn bales of cotton so far and the overall shipments are expected to fall by 29% to 7mn bales in the ongoing crop year ending September. 
 
The recurring spells of un-seasonal rains and hailstorms has caused massive damage in the mango belt of Uttar Pradesh with the output estimated to fall 50%. 
 
An Indian parliamentary committee has recommended that price caps should be extended to all drugs in the country and that the government should expedite the capping process. 

Indices to open flat

Global cues are not really encouraging. The indices will look at minimizing any further damage unless the weather forecast takes a toll on the market. 

The first monsoon forecast by the India Meteorological Department (IMD) on Wednesday is keenly awaited. Fears of El Nino causing atmospheric changes leading to poor monsoon have been around for a while. Unseasonal rains have increased the attention these forecasts command. The recent correction of course may provide better opportunities in the coming days. Sell in May and go away will not be the case if market corrects like this in April.

The outlook is a flat start. Global cues are not really encouraging. The indices will look at minimizing any further damage unless the weather forecast takes a toll on the market. Yes Bank and Mastek results will be eyed. Attention will be on stocks like Sun Pharma again which shed over 9% on Tuesday after Daiichi sold its stake at a discount. While different interpretations are doing the round, Daiichi’s decision to exit Sun may be driven by its philosophy to not stay in a deal where it is a minority holder, says one.

FY15 is turning out to be the worst year in last decade, in terms of PAT growth. Revenue growth, Ebitda and PAT margins have hit decadal lows. While growth slowed down across the board, energy companies singularly pulled down the growth. Investors will do well to stay overweight on private financials, consumer discretionary, industrials, cement, and IT since we there appears maximum potential for earnings upgrades in these sectors over the next 1-2 years.

Hedge funds returned US$54.1 billion in performance-based gains for the first quarter of 2015; their highest Q1 gains on record since 2006 which brings the total industry AUM to a record high of nearly US$2.2 trillion.

Wipro stock will be in action after the company reported net profit at Rs. 2142 crore for Q4.Total Revenues were Rs. 121.4 bn ($1.9 billion), an increase of 4% YoY.

Moody's Investors Service says that Reliance Industries Limited's (RIL, LC: Baa2 positive, FC: Baa2 stable) EBITDA increased by 8% during the quarter ended 31 March 2015 (QE3/2015 or Q4), because of the improved performance of its refining segment, and despite revenues falling by 26%.Moody's points out that revenues fell, due to the slide in crude oil prices. Crude prices have fallen by more than 50% since June 2014.

Government will auction 69 marginal oil and gas fields owned by Oil and Natural Gas Corp and Oil India Ltd, oil secretary reportedly said."Marginal field policy will have approval soon for 69 fields which ONGC and Oil India have agreed to give" Saurabh Chandra reportedly said.

Most CEOs expect positive business conditions and accelerating technology innovation in 2015, according to a recent survey by Gartner, Inc. The 2015 Gartner CEO and senior business executive survey found that growth remains a top priority and technology-related change is viewed as the primary tool to achieve that growth in 2015 and 2016.

Shares of real-estate companies rallied after the Maharashtra government scrapped the controversial Mumbai Development Plan 2034, which had several omissions and flaws.

Wipro Ltd has announced that Rishad Azim Premji is appointed as Whole-time Director of the Company with effect from May 01, 2015. V Ramachandran, Company Secretary has resigned from the services of the Company with effect from close of business hours of April 22, 2015.

HDIL was the biggest percentage gainer, up 3.7 percent at Rs. 122. Oberoi Realty also rallied 3.5 percent to Rs. 293, and Sobha jumped 2.5 percent to Rs. 419. Prestige Estates added 1.5 percent to Rs. 263.

Ramco Systems ended 4% lower at Rs. 633 after the company 45.7 percent drop in Q4FY15 consolidated net profit at Rs. 4.35 crore as against Rs. 8.02 crore in a year ago period.

HOV Services was locked at the 20% lower circuit at Rs. 120, after a purchaser revoked its decision to buy HOV Services investment through its US-based subsidiary - HOVS LLC.

Lanco Infratech zoomed 10.5% to Rs. 5.85 on announcing completion of Udupi power plant sale to Adani Power for an enterprise value of Rs. 6,300 crore - the largest deal in the thermal power space.

Claris Lifesciences ended 1% up at Rs. 277 after it has received the Supplemental Abbreviated New Drug Application (ANDA) approval for Fluconazole Injection in the United States of America (US).

HCL Technologies ended 3% lower at Rs. 391 after the company reported poor Q3 FY15 results. The company has reported a drop of more than 12 percent in consolidated Q3 net profit at Rs. 1,683 crore on q-o-q basis.

Lanco Infratech zoomed nearly 10% to touch a high of Rs. 5.80 on BSE in opening deals on announcing the completion of sale of Udupi power plant.