TCS signs strategic agreement with Gfi Informatique

Gfi Informatique and Tata Consultancy Services will offer the Intelligent Urban Exchange (IUX) advanced analytics solution developed by the TCS Digital Software & Solutions (DS&S) Group.

Tata Consultancy Services, a leading IT services, consulting and business solutions organization, and Gfi Informatique, a leading vendor in value-added IT services and software, today announced a strategic partnership agreement on smart cities to meet the requirements of digital initiatives in public transportation, water, and energy and accelerate the adoption of digital technologies in France’s fast-growing and innovative smart cities market.

Gfi Informatique and Tata Consultancy Services will offer the Intelligent Urban Exchange (IUX) advanced analytics solution developed by the TCS Digital Software & Solutions (DS&S) Group.  The TCS IUX software solution leverages real-time and historical data to close the loop between citizen and city needs and the supply of services, such as  transportation, water and energy.

The contract is a culmination of DS&S Group’s knowledge of the global smart city market – a $1.6 trillion dollar opportunity by 2020 – and Gfi’s trusted relationships with local public sector organizations to provide system integration and localization in France.  Gfi will use IUX analytics software to support digital initiatives that enhance public services for citizens, make efficient use of resources and improve the environment to help boost France’s leadership in intelligent city programs.

“Our first commitment is to meet the expectations of cities, including its citizens, elected officials and economic stakeholders with innovative solutions for operational efficiency, new revenue opportunities and citizen satisfaction,” said Vincent Rouaix, Gfi Chairman and CEO. “This partnership enables us to quickly add value to our digital technology offerings in the public sector, such as our City Hub mobile portal or our Public CRM, as well as to leverage data and applications to promote a coordinated, systematic roll-out and sustained growth of smart cities, bringing greater value to everyone involved.”

Gfi will include the TCS IUX flexible solution as part of their value-added capabilities to address market requirements and deliver greater benefits to smart city programs in France.  The highly scalable, modular software solution combines big data and domain specific advanced analytics to provide cities, utilities or transport operators with real time, actionable insights and deliver cost-effective operations across multiple intelligent city domains, such as transportation, water, energy, open governance and city commerce.

“Gfi are experts in the French public sector, and their experience in this market coupled with TCS DS&S Group’s TCS IUX solution will be a valuable asset to intelligent city development,” said Seeta Hariharan, General Manager & Group Head of TCS DS&S group.  “The agreement introduces advanced analytics software capabilities to expand Gfi’s approach to unite and leapfrog the digital transformation of public sectors to build new revenue streams and create a culture of more fully engaged, satisfied citizens.”

HLL's profitability to increase over time: Shekhar Bajaj, Bajaj Electricals

Shekhar Bajaj, Chairman and MD, Bajaj Electricals said, “HLL is a really good source of lamps for our company since 65 years and as it is not facing any loss since few months, this is the right time to invest funds and support the HLL business. The 3-5 percent cost reduction is expected as a result of this deal which will surely lead to profitability”.

Bajaj electricals announced a partnership with the manufacturing business of Hind Lamps Limited which is under the Board for Industrial and Financial Reconstruction (BIFR) and has a value of Rs.16 crore at present with a negative net-worth of Rs 25-30 crore.

Shekhar Bajaj, Chairman and MD, Bajaj Electricals conveyed to CNBC- TV 18, that this deal will reduce the cost of borrowing for HLL from 13 percent to 10-11 percent. HLL is weak under BIFR, and hence this bond will make HLL profitable.

Bajaj said, “HLL is a really good source of lamps for our company since 65 years and as it is not facing any loss since few months, this is the right time to invest funds and support the HLL business. The 3-5 percent cost reduction is expected as a result of this deal which will surely lead to profitability”.

He made sure that once they receive approval from BIFR, there will be a drastic change in the whole scenario and HLL will give profits in H2FY16.

IIFL View on Bajaj Electricals:

Revival in consumer demand and strong spending in Transmission & Distribution (T&D) would boost Bajaj Electricals (BEL)’s earnings over the next two years. BEL’s E&P division has shown strong growth over the last six months and is expected to continue on the back of strong order book and expansion in margins. The company is trading at 10.1x FY17E P/E, which is quite lower than its peers.

BEL is a major player providing solutions in lighting, consumer durables (CD) and engineering & projects (E&P) segments through its wide network of dealers and distributors. CD, luminaries and E&P accounted for 55%, 25% and 20% of total FY15 revenues, respectively. BEL’s premium product Morphy Richards contributes 15% to total CD sales and registered a CAGR of 13% over the last five years. BEL’s sales witnessed 14% CAGR over the last 5 years on the back 15% revenue CAGR registered in CD and E&P segments, even as lower margins in CD, abnormal increase in site expenses and challenging business environment dampened profitability. Of late, the company has taken a series of steps such as monitoring of project performance and completion of projects as per schedule to avoid cost and time overrun. As a result, it has turned profitable over the last 3 quarters. Near term sales growth in CD would remain impacted due to the shift to TOC model. BEL has announced the merger of manufacturing business of Hind Lamps Limited (HLL) into BEL. HLL, an unlisted company, is a sick unit and has been a vendor for BEL since last several years. The merger will provide manufacturing capabilities and its required infrastructure of HLL to BEL, leading to more efficiency and would be more economical for the company. The management was quite confident in turning around the compan

Nippon Life to raise stake in Reliance Life to 49%

The Japanese company will be investing an aggregate value of Rs 2,265 crore (US$ 348 million) to acquire an additional 23 per cent stake in Reliance Life Insurance to reach a 49 per cent stake. The transaction pegs Reliance Life Insurance’s valuation at approx. Rs 10,000 crore (US$ 1.5 billion), amongst the highest valuations for any Life Insurance company in the country.

Nippon Life Insurance (NLI), a Fortune 500 company and one of the largest life insurers in the world, today signed definitive agreements to increase its stake in Reliance Life Insurance (RLIC), a part of Reliance Capital Ltd. from the existing 26 per cent to 49 per cent.

“We are delighted that the outstanding relationship between our two companies has now grown into an equal partnership, with NLI increasing their stake – first, in our asset management business, and now, in our Life Insurance business - to 49 per cent. Life Insurance is one of Reliance Capital’s major businesses, and we believe Nippon Life’s experience of over 125 years will accelerate our growth in this space,” said Anil D. Ambani, Chairman, Reliance Group.

“Ever since our initial investment in 2011, we have developed a mutual understanding and built more than just a financial partnership but an interactive relationship based on solid trust. This additional investment represents not only the past efforts and initiatives, but also the good relationship between both companies going forward, and we are pleased to be able to further strengthen this partnership in various fields. We believe our past and future ties will become a great role model for India - Japan business partnerships”, said Mr. Yoshinobu Tsutsui, President, Nippon Life Insurance.

The Boards of Directors of both the companies - Nippon Life Insurance and Reliance & DSLWDO- have approved the increase in stake by the Japanese partner, subject to regulatory approvals.

The Japanese company will be investing an aggregate value of Rs 2,265 crore (US$ 348 million) to acquire an additional 23 per cent stake in Reliance Life Insurance to reach a 49 per cent stake. The transaction pegs Reliance Life Insurance’s valuation at approx. Rs 10,000 crore (US$ 1.5 billion), amongst the highest valuations for any Life Insurance company in the country.

Nippon Life Insurance’s investment also represents an implied Embedded Value (EV) multiple of over 3 times for Reliance Life Insurance, the highest for any private insurer in India till date.

Nippon Life Insurance would have invested an aggregate of Rs 5,327 crore (US$ 819 million) for acquiring 49 per cent take in Reliance Life Insurance with this transaction. NLI has also committed an investment of Rs 3,303 crore (US$ 508 million) for acquiring 49 per cent stake in Reliance Capital Asset Management, thereby taking its total investment to Rs. 8,630 crore (US$ 1.3 billion), the largest FDI in the financial services sector.

In line with the new shareholding structure, the name of the company will also be changed to Reliance Nippon Life Insurance Company Limited.

Sun Pharma falls 1.3%; pays Rs. 500 cr interest on NCDs

Sentiment has been subdued on the counter for a while

Sun Pharmaceutical Industries Ltd’s southward journey continues for yet another trading session. The scrip is currently trading 1.3% lower at Rs. 709.15 on BSE, which is a 16-month low level.

On Monday, the company announed payment of Rs. 500 crore as interest on NCDs.
 
The scrip opened at Rs. 717.9 and has touched a high and low of Rs. 720.3 and Rs. 706.5 respectively. So far 50,70,852 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 172967.09 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1200.7 on 07-Apr-2015 and a 52 week low of Rs. 714.1 on 23-Nov-2015. Last one week high and low of the scrip stood at Rs. 761.75 and Rs. 714.1 respectively.

The promoters holding in the company stood at 54.71 % while Institutions and Non-Institutions held 35.62 % and 9.68 % respectively.

The stock is currently trading above its 200 DMA.

Masala bond market creates alternative funding source for Indian NBFCs and GRIs: Moody's

The masala bonds though denominated in Indian rupees, will be offered and settled in US dollars, thus making it easier for foreign investors to participate, especially since foreign investors are only allowed to invest up to $51 billion in corporate bonds issued onshore in India.

Moody's Investors Service says that the masala bond market opens up a new source of funding for non-bank finance companies (NBFCs) and government-related issuers (GRIs) in India (Baa3 positive), although key challenges remain for the market to become a sustainable funding source.

The Reserve Bank of India (RBI) on 29 September issued guidelines allowing Indian corporates, NBFCs, real estate investment trusts and infrastructure investment trusts to issue rupee-denominated bonds overseas (masala bonds).

"The RBI's guidelines will help deepen India's capital markets and provide these issuers with a way to raise funds abroad without incurring currency risk," says Alka Anbarasu, a Moody's Vice President and Senior Analyst.

"At the same time, we expect investors to be cautious in taking on currency risks from emerging markets," adds Anbarasu. "Offshore rupee liquidity, secondary market trading, and a long-term benchmark yield curve will all need to come into being before the masala bond market can become a sustainable funding source for Indian issuers."

Anbarasu was speaking on the release of a new Moody's report on Indian finance companies, titled "Finance Companies -- India: Masala Bonds Open New Funding Source for NBFCs and GRIs".

The masala bonds, though denominated in Indian rupees, will be offered and settled in US dollars, thus making it easier for foreign investors to participate, especially since foreign investors are only allowed to invest up to $51 billion in corporate bonds issued onshore in India.

Furthermore, as the number of issuances increases, secondary trading in the instruments will help set a benchmark for future deals.

Over the next 12 months, Moody's expects selective issuance by some of the largest Indian NBFCs, government-related issuers (GRIs) and state-owned enterprises (SOEs).

Funding remains a key credit weakness for Indian NBFCs. Regulatory restrictions prevent them from accepting current and savings deposits, leaving firms reliant on expensive and less-granular funding from wholesale markets and institutional investors.

The RBI first allowed masala bonds in 2014, when it approved International Finance Corporation (Aaa stable) and Asian Development Bank (Aaa stable) to issue rupee-denominated debt outside India.

These issuances created a benchmark yield for long-term rupee denominated corporate bonds for Aaa-rated issuers, although Moody's expects most NBFC issues to be rated at or below India's Baa3 sovereign rating.

Under the latest guidelines, Indian companies may issue masala bonds with a minimum maturity of five years and up to $750 million per annum per issues, with further issuance requiring approval from the RBI.

TATA trademark row...SC favours Tata Sons vs Maharashtra Govt

A bench headed by Chief Justice H.L. Dattu stayed the penalty after senior counsel Harish Salve told the apex court that the company had paid Rs. 300 crore sales tax to the state government over the use of TATA name by its subscribing companies.

The Supreme Court restrained the Maharashtra government from imposing penalty on Tata Sons over the use of the "TATA" name by its subscribing companies.

A bench headed by Chief Justice H.L. Dattu stayed the penalty after senior counsel Harish Salve told the apex court that the company had paid Rs. 300 crore sales tax to the state government over the use of TATA name by its subscribing companies.

The apex court also admitted the company’s appeal, seeking clarity on taxability of the transaction for the transfer of right to use the trademark assigned to its group companies.

Tata Sons’ had challenged a Bombay High Court judgment that upheld the state government’s decision to levy tax for the use of TATA name.

However, Tata Sons had argued that the trademark was assigned to its group companies which meant that there is no transfer within the meaning of the Lease Tax Act.

But, the state’s sales tax department held that the transactions were covered under the provisions of the Lease Tax Act and slapped sales tax dues of Rs. 300 crore between 1998 and 2002.

Cement prices hiked by Rs. 70/bag in AP, Telangana

“The cement manufacturers have increased prices all of a sudden leading to increase in price per bag from INR 250 to about INR 320," a leading cement dealer told the financial newspaper.

Cement prices have been hiked by INR 70 per bag in Andhra Pradesh and Telangana in the last couple of weeks, according to a business daily.

“The cement manufacturers have increased prices all of a sudden leading to increase in price per bag from INR 250 to about INR 320," a leading cement dealer told the financial newspaper.

The recently launched Government housing scheme for the poor in Telanagana, building regularisation scheme announced along with expectations on infrastructure development in Andhra Pradesh in the proposed new capital and other projects will be key drivers of cement demand in the near future, Sagar Cements ED S Sreekanth Reddy has been quoted as saying.

Capacity utilisation levels of the cement companies remain at about 55 per cent, reports the daily.

South India accounts for 36 per cent of the total cement demand in the country. 

IOC Gujarat Refinery to set up 1,400 MW solar power unit

A grid-connected 250-kW Solar Power system is already catering to the partial electricity requirement of technical building, ED of Gujarat Refinery S K Dhar Gupta said.

Gujarat Refinery of Indian Oil Corporation Ltd. (IOCL) has decided to set up 1,400 MW solar power systems that will be commissioned in 2016, a top company official said on Monday.

A grid-connected 250-kW Solar Power system is already catering to the partial electricity requirement of technical building, ED of Gujarat Refinery S K Dhar Gupta said.

“The system automatically gets synchronised with Gujarat Refinery’s Power System at LV level during day time and similarly gets offline during evening period,” Dhar Gupta said in a statement.

Grid-connected systems are the most common type of solar grid-connected solar photovoltaic (PV) system, he added.

Separately, he said that IOC's Gujarat refinery is the first to set up a Visual Model-based Safety Park to train its workforce.

The park constantly reminds and highlights the importance of safety measures to the workforce.

Pfizer, Max India, Lanco Infratech among 18 Stocks in focus today

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

Pfizer: Pfizer Inc. and Allergan plc announced that their boards of directors have unanimously approved, and the companies have entered into, a definitive merger agreement under which Pfizer, a global innovative biopharmaceutical company, will combine with Allergan, a global pharmaceutical company and a leader in a new industry model – Growth Pharma, in a stock transaction currently valued at $363.63 per Allergan share, for a total enterprise value of approximately $160 billion, based on the closing price of Pfizer common stock of $32.18 on November 20, 2015.

Nestle India: Nestle announced that the company have commenced the manufacturing of your favourite MAGGI Noodles at Pantnagar factory in Uttarakhand.

Wockhardt: National Pharmaceutical Pricing Authority (NPPA) has given exemption to three insulins of Wockhardt Ltd for five years.

Petronet LNG: Qatar has agreed to waive $1 billion penalty on India for breaking a long-term LNG contract, and has also consented to change the pricing formula to reflect the slump in global energy rates.

Lanco Infratech Ltd: The company has announced that Lanco Anpara Power Limited - 1200 MW (LAnPL) one of the step down subsidiary of the Company received tariff order from UPERC to compensate for changes in RFP / PPA conditions in respect of coal supply and power purchase payments.

Tata Steel: Tata Steel is planning raise at least $1.5 bn to refinance its debt. As per media reports. The fund size may go up to as high as $3 billion.
 
Federal Bank: The bank has recduced base rate to 9.63% From 9.95%, effective December 1.

JSW Steel: Fitch Ratings has revised JSW Steel Limited's (JSW Steel) Outlook to Negative from Stable, while affirming the Long-Term Issuer Default Rating (IDR) at 'BB+'.

IOC: Gujarat Refinery of Indian Oil Corporation Ltd. (IOCL) has decided to set up 1,400 MW solar power systems that will be commissioned in 2016, a top company official said on Monday.

IDBI Bank: The bank will issue five-year green bonds to overseas investors, the proceeds of which will be used to fund clean energy projects.
Max India: Max India stated that it is planning to sell 23% stake in Max Bupa Health Insurance to Bupa Plc For Rs. 191 crore. The company added that Max Bupa Health Insurance stake sale will be an all cash transaction. 

Hexaware Technologies: The IT company has entered into a strategic partnership with Blue Prism, the leading developer of robotic process automation (RPA) software, to transform support processes by enabling rapid automation of manual, rules based, back office administrative processes through RPA.

Cera Sanitaryware: The Ahmedabad-based Cera Sanitaryware Ltd has caquired 100% shares of the Andhra Pradesh-based Anjani Tiles Ltd. “Now, Anjani Tiles Ltd has become our subsidiary with immidiate effect,” said the company in a BSE filing.

MRF Ltd: The company is planning to set up a INR 900-crore facility in Medak district of Telangana, Telangana Industries Minister Jupally Krishna Rao

SeQuent Scientific Ltd: The company said that its subsidiary Alivira Animal Health Ltd (Alivira) will acquire Topkim Ilaç Premiks San. ve Tic. A.S ̧(Topkim) of Turkey. The acquisition will be made through Provet Veterinary Products, Turkey, a subsidiary of Alivira, the company said.

Gammon India Ltd: A consortium of lenders to Gammon India Ltd. has decided to convert part of the company’s Rs. 15,000 crore debt into equity under the strategic debt restructuring (SDR) exercise

Vipul Ltd: The company has announced that the Debenture Committee of the Board of Directors of the Company at its meeting held on November 23, 2015 inter alia, have accorded their consent on the followings with regard to proposed issue of Tranche / Secries-3 of the Debt Instrument on private placement.

Sun Pharmaceuticals Industries Ltd: The pharma cmpany has informed the stock exchange that it has made payment of interest on and redemption amount pertaining to 5,000 Secured Rated Redeemable Non-Convertible Debentures (NCD) of the face value of Rs.10,00,000 each aggregating to Rs. 500 crores (listed on NSE) on November 23, 2015 to the NCD holders of the company whose names stand registered on the Register of beneficial owners maintained by depositories in respect of the NCDs held in electronic form on November 10, 2015.

Suzlon Energy: Suzlon Energy said that order is for 31.50 megawatts (MW) of wind power project. Suzlon will install its 597 suite of WTGs (wind turbine generators) with 120m hub height and rated capacity of 2.1 MW each at Zaheerabad site in Medak district, Telangana on supply and installation basis. The project will be scheduled for commissioning by June 2016.

Sensex, Nifty to open on a flat note

The F&O expiry will also be in play on Thursday and market players may look at making adjustments in their positions. A sharp increase in VIX was seen on Monday. The rollover has been one of the weakest with just two sessions left for expiry. The Dow fell 0.17%, S&P 500 shed 0.12% and Nasdaq was a tad lower by 0.05%. Asian markets too are dragging in a narrow range.

The world markets are not in real good health despite one of the biggest healthcare deal being announced between Pfizer and Allergan. Both the stocks ended lower after the US$160bn deal announcement. Politicians view this mega deal as a ‘tax dodge,’ and the street seems to be unimpressed by the benefits or cost savings both companies would derive following the deal. Back home the consumer discretionary, consumer durables, auto and realty indices ended with gains on Monday even as main indices saw minimal gains. In fact the mid-cap and the small-cap indices managed to outperform the benchmarks. On the other hand, FMCG, metals and telecom indices were under pressure.

The outlook is a flat start ahead of a holiday. The F&O expiry will also be in play on Thursday and market players may look at making adjustments in their positions. A sharp increase in VIX was seen on Monday. The rollover has been one of the weakest with just two sessions left for expiry. Nifty rolls stood at 41 % (6-month average of 42%); in terms of shares, rolls stood at 1.12mn shares as against 6-month average of 1.03mn shares.  Surprisingly, BankNifty rolls are at 29% (as against 32% 6-month average) with cost of carry dipping to 51bps (6 months average of 67bps). Maruti Suzuki will remain in spotlight as it has seen 27% rollover;​much lower than its 6-month average of 45%. The currency movement will also be at play after the rupee plunged and dollar index rose to an eight-month high of 100.

Global cues are subdued. The Dow fell 0.17%, S&P 500 shed 0.12% and Nasdaq was a tad lower by 0.05%. Asian markets too are dragging in a narrow range.

Tata Steel is planning raise at least $1.5 bn to refinance its debt, according to reports.

Maruti Suzuki on Monday dismissed proxy advisory firm Institutional Investor Advisory Services’ (IiAS) recommendation asking the carmaker’s shareholders to vote against the proposal of setting up a plant in Gujarat by Suzuki Motors Corp.

MRF has received the formal approval from the Telangana government to set up the manufacturing facility.

Healthcare Global Enterprises Ltd (HCG), a cancer care network operator, has received SEBI’s approval to float an initial public offer (IPO).

Cement prices have been hiked by Rs. 70 per bag in Andhra Pradesh and Telangana in the last couple of weeks, according to a business daily.

Warburg Pincus, a leading global private equity firm focused on growth investing,  announced it has successfully raised its latest global fund, Warburg Pincus Private Equity XII, L.P. (“Warburg Pincus XII”). Launched in May 2015, Warburg Pincus XII has received third party commitments significantly in excess of its $12 billion hard cap.

The finance ministry has invited seven merchant bankers to make presentation on Coal India's divestment, according to reports. The merchant bankers are Axis Capital, HSBC Securities and Capital Markets, Kotak Mahindra Capital, Edelweiss Financial Services, SBI Capital Markets, J.M. Financial Institutional Securities and ICICI Securities.