Thursday, 23 July 2015

DHFL Board approves Bonus Issue

The Board also approved issuance of the Postal Ballot Notice for the purpose of seeking the approval of the Members of the Company for issue of Bonus Shares.


Dewan Housing Finance Corporation, DHFL
Dewan Housing Finance Corporation Ltd has announced that the Board of Directors of the Company at its meeting held on July 23, 2015, inter alia, had discussed a Non-Agenda item apart from the other Agenda items, relating to the recommendation for the Issue of Bonus Shares, for the approval of the Members of the Company. The Board after discussion recommended the issue of Bonus Shares in the ratio of 1:1 (i.e. one bonus equity share of Rs. 10/- for every one fully paid up Equity Share of Rs. 10/- each).

The Board also approved issuance of the Postal Ballot Notice for the purpose of seeking the approval of the Members of the Company for issue of Bonus Shares and appointed Mrs. Jayshree S. Joshi, Proprietress of M/s. Jayshree Dagli & Associates, Practising Company Secretary, Mumbai, to act as the Scrutinizer to scrutinize the e-voting process and physical ballot process in a fair and transparent manner.

Top insurance news of the day- July 23, 2015

Riding high on motor and fire premia and government-run social security schemes, the general insurance industry grew 12.5 per cent in the April-June quarter mobilising Rs 23,418 crore in premium income.


Riding high on motor and fire premia and government-run social security schemes, the general insurance industry grew 12.5 per cent in the April-June quarter mobilising Rs 23,418 crore in premium income. 

The Allianz Group has expressed interest in raising its shareholding in the two insurance  joint ventures with the Bajaj Group. Bajaj Finserv, which is the holding company for the two insurance businesses, has a 74% stake in the ventures, while Allianz has 26%. 

Country’s insurance regulator IRDA has formed panels to look into existing regulations for life and general insurance businesses. “It has become necessary to relook (at) the existing regulations, particularly related to acturial valuation aspects of life insurance business and its regulatory requirements.”(mydigitalfc.com)

Non-life insurance companies have settled only 11.12 percent of the claims received in the three months following the April 25 earthquake. The value of the claims settled as of the end of the last fiscal year amounted to Rs1.86 billion against the total claims worth Rs16.8 billion.

China will expand its critical illness insurance system to cover more urban and rural residents, authorities have said. All participants in the country's basic medical insurance system for urban and rural residents will be protected against critical illness by the end of this year, according to an official statement. 

The local Olympic bid committee would seek to buy $500 million in insurance to cover a loss of revenue if an event is canceled due to a major disaster, and $350 million in coverage for decreased ticket revenue if a major competitor dropped out of the Games.

Top Pharma news of the day

Glenmark Pharmaceuticals has now introduced its new third generation oral anti diabetic agent Teneligliptin for type-2 diabetes in India at an affordable price of Rs. 19.90 per tablet. The molecule gliptin comes under the category of DPP-4 inhibitors, which is backed by scientific data as being safe, well tolerated, weight neutral with low risk of hypoglycemia.


Medical supplies, pills and capsules
AstraZeneca, a global, innovation-driven biopharmaceutical business, announced that the phase III SUMIT study of selumetinib in combination with dacarbazine for the treatment of patients with metastatic uveal melanoma did not meet its primary endpoint of progression free survival. This combination therapy showed an adverse event profile generally consistent with current knowledge of the safety profiles of dacarbazine and selumetinib. A full evaluation of the data is ongoing.

Glenmark Pharmaceuticals has now introduced its new third generation oral anti diabetic agent Teneligliptin for type-2 diabetes  in India at an affordable price of Rs. 19.90 per tablet. The molecule gliptin comes under the category of DPP-4 inhibitors, which is backed by scientific data as being safe, well tolerated, weight neutral with low risk of hypoglycemia.

Sanofi posted  nearly 12% growth in net profit at Rs 64.20 crore for the quarter ended June 30, 2015 compared to Rs 57.50 crore for the same quarter last fiscal. 

Animal healthcare player Hester Biosciences Ltd on Wednesday reported net profit of Rs. 4.66 crore for the first quarter ended June 2015, up 7 per cent from Rs. 4.34 crore in the same period last year. 

Top Auto News of the Day

Apollo Tyres has launched a new tyre in Indian market that promises to run up to 1 lakh kms and beyond. Jointly developed at global R&D centres in Chennai and Netherlands, the tyre Amazer 4G Life is targetted at the mileage conscious customers.


Volkswagen Group's Indian sales arm — Volkswagen Group Sales India has seen three high-profile exits in a span of few weeks. Anil Reddi, director of Porsche brand, Nalin Jain, Group CFO and Niraj Srivastava, head of sales of Audi in India have put in their papers. While Jain and Srivastava put in their papers in June, Reddi stepped down from his position on Tuesday and was immediately relieved. Srivastava has been relieved, Jain is serving his notice period. 

Apollo Tyres has launched a new tyre in Indian market that promises to run up to 1 lakh kms and beyond. Jointly developed at global R&D centres in Chennai and Netherlands, the tyre Amazer 4G Life is targetted at the mileage conscious customers. 

It's not just incessant rains that are flooding the roads this monsoon. Triggered by tumbling demand, luxury-car makers are offering freebies and steep discounts that shave off more than Rs 5 lakh from the price of popular models such as the BMW 5 Series, Audi A3 and the Mercedes-Benz E-Class.

In an effort to focus on the global strengthening plans of the Royal Enfield brand, Eicher Motors Ltd's MD and CEO Siddhartha Lal said that he will be relocating to London temporarily.

Top mutual fund news of the day- July 23, 2015

Mutual fund (MF) distributors are concerned at the Securities and Exchange Board of India's hinting at an advisory-based model for them.


Mutual fund (MF) distributors are concerned at the Securities and Exchange Board of India's hinting at an advisory-based model for them.They say it is premature to expect Indian investors to pay for financial advisories. MFs continue to be a 'push' product, not a 'pull' one.

Investment in Indian equity mutual funds by domestic retail investors has hit the highest since 2008, signaling the return of individual players drawn to a stock market that is outperforming physical assets such as gold and real estate. 

Even after the signing of a treaty between the governments of India and America to comply with the latter's Foreign Account Tax Compliance Act (Fatca), mutual funds (MFs) continue to remain wary of accepting investments from their or from Canada. 

Mutual funds bought shares worth a net Rs 122.50 crore yesterday, 21 July 2015, compared with net outflow of Rs 208.80 crore during the preceding trading session on Monday, 20 July 2015.

Edelweiss Mutual Fund has announced 27 July 2015 as the record date for declaration of dividend under Edelweiss Absolute Return Fund and Edelweiss Short Term Income Fund. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be:
Edelweiss Absolute Return Fund-dividend option: Rs 0.22
Edelweiss Absolute Return Fund-direct plan-dividend option: Rs 0.22
Edelweiss Short Term Income Fund-dividend option: Rs 0.20 

Edelweiss Mutual Fund has announced that in addition to the existing facility of purchase and redemption of units of the eligible schemes/plans of the fund on stock exchange infrastructure viz. BSE StAR MF platform, the facility for switching of units among the eligible schemes/plans, except Edelweiss ELSS Fund is also being made available to the investors with effect from 22 July 2015.

Kotak Mutual Fund has announced 27 July 2015 as the record date for declaration of dividend under the bimonthly dividend option of Kotak Equity Arbitrage Fund, an open ended equity growth scheme. The amount of dividend on the face value of Rs 10 per unit will be:
Kotak Equity Arbitrage Fund - Regular Plan-Bimonthly Dividend Option: Re 0.2318 per unit.
Kotak Equity Arbitrage Fund - Direct Plan - Bimonthly Dividend Option: Re 0.2514 per unit. 

Tata Steel slips on turning ex-dividend

Tata SteelTata Steel dropped nearly 3 percent to a low of Rs. 272 on turning ex-dividend today.

The stock price was adjusted for Rs. 8 per share dividend.

The stock has recently registered a fresh 52-week low at Rs. 268, and is now down 2.6 percent at Rs. 273. The counter has seen trades of around 125,000 shares in the first few minutes on the BSE.

Meanwhile, the Sensex is up 43 points at 28,548.

Cairn Energy Set to Vote Against Vedanta-Cairn India Merger: Report

Cairn Energy Set to Vote Against Vedanta-Cairn India Merger: Report

Mumbai: Britain's Cairn Energy Plc is set to vote against Vedanta Ltd's $2.3 billion buyout offer for Cairn India's minority shareholders, the Financial Times said on Wednesday, citing people familiar with the situation.
  Cairn Energy's objections were over "fundamental disagreements over valuations", and its preference for "holding an investment in an energy company rather than a distributed resources group," the newspaper said, citing one person with direct knowledge of the matter.

News of Cairn Energy's objections comes a day after Cairn India chief Mayank Ashar said the merger was on track.

Spokespeople for Vedanta and Cairn India could not be immediately reached for comment outside business hours.

A spokesman for Cairn Energy said the company had no comment on the report.

Ex-parent Cairn Energy is the single largest minority shareholder in Cairn India in which Vedanta already has a 59.88 percent stake.

State-owned insurer Life Insurance Corp (LIC), Cairn India's second-largest minority shareholder, and which together with Cairn Energy controls about 19 percent of the Indian company, had earlier expressed reservations about the deal.

The deal is being seen by many as a test for India's new shareholder protection law, which requires an approval of more than half of the minority shareholders to go through.

Banks Opt For Offbeat Tactics To Tackle Rs 3 Lakh Crore of Bad Debts

 Under pressure to do more to cut a $48.83 billion (Rs 3.1 lakh crore) mountain of bad debt, India's state-owned banks are reversing years of lax recovery efforts, naming and shaming smaller borrowers and even using big TV screens at shopping malls to advertise seized assets for sale.

India's bad debt pile, dominated by corporate loans, is at its highest in a decade, swollen by an economic slowdown, loose lending and, in many cases, banks' own failure to do enough to chase down rogue debtors.

Now, bank executives say pressure - from a government needing to accelerate economic recovery and from a central bank that wants company owners to take more responsibility - has left little choice but to get tougher and faster.

Tactics include targeting smaller borrowers with aggressive 'name and shame' campaigns, with placards and groups of bank employees protesting outside offices, for example, and putting pressure on investors or executives at larger firms.

PK Malhotra, a deputy managing director at the State Bank of India, the country's largest bank, said his team received extra training, including in psychology, and was systematically chasing up payments, as others in the bank accelerated sales of seized assets.

"The focus (is) on getting court cases expedited. Less on the paperwork and more on the fieldwork," said Malhotra.

Executives say it's too early to measure overall success, but there have been some wins for India's bruised banks.

Suzlon Energy this year sold its German unit, Senvion, for 1 billion euros ($1.1 billion) in cash - less than what it paid to buy the asset in a deal completed in 2011. It crystallised a huge loss after banks piled pressure on the loss-making wind-turbine maker to cut its debt.

More than two dozen lenders led by SBI are looking for an investor in Electrosteel Steels Ltd, whose near-$1.4 billion bank loan is strained. Rather than 'evergreening' the loan - a process of regular review and renew - lenders are getting involved in the buyer talks, an individual with direct knowledge of the matter told Reuters.

EARLY WARNINGS

Gross bad loans at Indian banks rose to Rs 3.1 lakh crore ($48.83 billion) as of end-March, or 4.6 per cent of total loans, according to central bank data. Including loans that are stressed but not yet classified as bad, total troubled loans made up 11 per cent of total lending.

Banks say they are now moving faster to bring that down, stepping in at the first sign of trouble, sending out more officers to chase borrowers and putting more people on the job through specialised branches. Some are trying to speed up the sale of seized assets by advertising them on large screens at shopping malls.

"These days people are getting on to the job the moment you have an early warning signal that something may happen in a company and you have thousands of crores at stake," said a senior banker at a big state-run bank. India uses crore to denote a unit of 10 million.

SBI has set up branches focussed solely on recovering loans, and, to speed up cumbersome paperwork, encourages managers to snap pictures of themselves on seized assets - proof of the change of ownership. It plans to set up a web portal to showcase all the seized assets available for auction.

"Companies can sometimes fall in love with their assets, but bankers can't afford to do that," said SBI's Malhotra.

Union Bank of India Chairman Arun Tiwari said his state-run lender has changed its system to put three separate general managers in charge of recovering different classes of loans - large, middle and small.

30 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.


Stocks to watch
KPIT Technologies Ltd: The Company has posted a net profit of Rs. 559.889 million for the quarter ended June 30, 2015 where as the same was at Rs. 335.043 million for the quarter ended June 30, 2014. Total Income is Rs. 3211.901 million for the quarter ended June 30, 2015 where as the same was at Rs. 2499.368 million for the quarter ended June 30, 2014.

Bank of India: The bank plans to raise Rs. 6,000 crore from Tier I and II bonds.

Bharti Infratel:  The company has reported a net profit of Rs. 5,757 million for the quarter ended June 30, 2015 as compared to Rs. 4,628 million for the quarter ended June 30, 2014. Total Income has increased from Rs. 29,599 million for the quarter ended June 30, 2014 to Rs. 32,315 million for the quarter ended June 30, 2015.

KEC International: The company has completed the sale of its telecom assets to ATC Telecom Tower Corporation Private Limited for a total consideration of Rs. 82.3 crore.

Tata Consultancy Services: The company has launched a major new global study looking at the impact of IoT technologies across a wide range of industry sectors around the world.

SpiceJet: The company said it has not defaulted on any tax-deducted at source (TDS) obligations. The airline also said that it has been paying all TDS dues as per Income Tax Rules.

Bharti Airtel: The telecom major plans to raise Rs. 3,200-6,400 crore, in overseas debt to partly fund spectrum related payments, meet capital expenditure for network expansion and pare debt, as per media report.

Punj Lloyd: The company  will seek shareholders approval for slump sale of its defence business to its subsidiary Punj Lloyd Industries for up to Rs. 180 crore.

Muthoot Finance: The company has recorded a marginal increase of 2 per cent for the quarter ended June 30, 2015 compared with the same quarter a year ago. The net profit increased to Rs 183 crore from Rs 180 crore.

Tata Communications Ltd: The company plans to sell a 74% stake in its subsidiary Tata Communications Data Centre Pvt. Ltd

Heritage Foods Limited: The company is looking for a potential joint venture with a leading European company to collaborate on value added dairy products for domestic as well as overseas market.

Cyient
: The IT company announced the acquisition of Global Services Engineering Asia, based in Singapore, from Pratt & Whitney Services Pte Ltd. This site provides repairs. development and validation for aero gas turbine engine com ponents in support of Prall & Whitney throughout the region.

Alstom India: The company booked a net profit of Rs. 8 crore for the quarter ended June 2015, as against Rs. 15 crore in a year ago period. During the period under review, the company's Total Income stood at Rs. 426.3 crore Vs Rs. 470.8 crore for the above mentioned period.

Container Corporation of India Ltd :  The company reported a net profit of Rs. 2,069.00 million for the quarter ended June 30, 2015 as compared to Rs. 2,618.80 million for the quarter ended June 30, 2014. Total Income has increased from Rs. 13,525.50 million for the quarter ended June 30, 2014 to Rs. 15,006.60 million for the quarter ended June 30, 2015.

CEAT Ltd: The company has posted a net profit after taxes, Minority Interest and Share of Profit of Associates of Rs. 1,210.10 million for the quarter ended June 30, 2015 as compared to Rs. 516.70 million for the quarter ended June 30, 2014. The company reported a EBITDA at Rs. 224 crore for the quarter ended June 2015, as against Rs. 136 crore in a year ago period.

SKS Microfinance: The company has posted a net profit of Rs. 611.556 million for the quarter ended June 30, 2015 as compared to Rs. 493.205 million for the quarter ended June 30, 2014. Total Income has increased from Rs. 1689.516 million for the quarter ended June 30, 2014 to Rs. 2826.442 million for the quarter ended June 30, 2015.

Hester Biosciences: The company reported net profit of Rs. 4.66 crore for the first quarter ended June 2015, up 7 per cent from Rs. 4.34 crore in the same period last year.

Heidelberg Cement Ltd: The company reported a net profit at Rs. 3.3 crore for the quarter ended June 2015, as against Rs. 11.8 crore in a year ago period. During the period under review, the company's Total Income stood at Rs. 439 crore Vs Rs. 410.5 crore for the above mentioned period.

Adani Ports: The company has launched its debut dollar bond to raise upto US$1.5 billion.

Isuzu Motors India:  launched the automatic variant of its sports utility vehicle MU-7 priced at Rs 23.9 lakh (ex-showroom, Delhi).

GVK Power & Infrastructure Ltd:  The company will seek shareholders nod for an enabling resolution to facilitate the company raise up to Rs. 10 billion, with a Greenshoe option to retain higher subscription of about Rs. 5 billion.

Apollo Tyres: The company has launched a new tyre in Indian market and jointly developed at global R&D centres in Chennai and Netherlands.

Eicher Motors: The company has decided to strengthen its motorcycle business in international market starting next month.

Texmaco Rail Ltd: The company reported a net loss at Rs. 4.1 crore for the quarter ended June 2015, as against Rs. 7.8 crore in a year ago period.

JSW Energy Ltd: The company  has  posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs. 2774.50 mn for the quarter ended June 30, 2015 as compared to Rs. 3254.70 million for the quarter ended June 30, 2014.

Tata Metaliks Ltd: The company booked a net profit at Rs. 26.7 crore for the quarter ended June 2015, as against Rs. 34.2 crore in a year ago period.  During the period under review, the company's Total Income stood at Rs. 319.3 crore Vs Rs. 358.5 crore for the above mentioned period.

Novartis: The company reported Q1 net profit stands at Rs. 13.4 crore. The total Income for the quarter stands at Rs. 224 crore.

TV18 Broadcast: The company has posted a net profit/(loss) after taxes, Minority Interest and Share of Profit/Loss of Associates of Rs. 429 million for the quarter ended June 30, 2015 as compared to net loss of Rs. 1,545.422 million for the quarter ended June 30, 2014.

Igarashi Motors Ltd: The company booked a net profit of Rs. 15.6 crore for the quarter ended June 2015, as against Rs. 10.2 crore in a year ago period. During the period under review, the company's Total Income stood at Rs. 108.6 crore Vs Rs. 90 crore for the above mentioned period.

Kalyani Steels Ltd: The company booked a net profit of Rs. 28.9 crore for the quarter ended June 2015, as against Rs. 15.3 crore in a year ago period.

Bajaj Finserv Ltd: The company  has posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs. 4,669 million for the quarter ended June 30, 2015 as compared to Rs. 3,193.70 mn for the quarter ended June 30, 2014

Top corporate news of the day- July 23, 2015

Glenmark Pharmceuticals launched its “low-cost anti-diabetic” drug to treat Type 2 diabetes, which it claims will be sold at half the price of similar molecule of competitors.

Corporate News
Glenmark Pharmceuticals launched its “low-cost anti-diabetic” drug to treat Type 2 diabetes, which it claims will be sold at half the price of similar molecule of competitors.

Adani Ports has launched its debut dollar bond to raise upto US$1.5bn.

Heritage Foods Limited is looking for a potential joint venture with a leading European company to collaborate on value added dairy products for domestic as well as overseas market. 

JSW Energy, part of the JSW Group has tweaked its growth strategy. The company will not pursue investments in green field projects but go in for the acquisition of stressed power projects. 

Isuzu Motors
 India launched the automatic variant of its sports utility vehicle MU-7 priced at Rs 23.9 lakh (ex-showroom, Delhi). 

GVK Power & Infrastructure Ltd will seek shareholders nod for an enabling resolution to facilitate the company raise up to Rs10bn, with a Greenshoe option to retain higher subscription of about Rs5bn. 

Apollo Tyres has launched a new tyre in Indian market that promises to run up to 1 lakh kms and beyond. Jointly developed at global R&D centres in Chennai and Netherlands, the tyre Amazer 4G Life is targetted at the mileage conscious customers. 

In order to strengthen its motorcycle business in international markets, Eicher Motors MD & CEO Siddhartha Lal has decided to relocate to the UK for a year, starting next month.

Cyient Limited announced the acquisition of Global Services Engineering Asia, based in Singapore, from Pratt & Whitney Services Pte Limited. This site provides repairs, development and validation for aero gas turbine engine components in support of Pratt & Whitney throughout the region.