Parag Milk Foods raises Rs. 343 crore from anchor investors

The Company proposes to open on Wednesday, May 4, 2016, a Public Issue of its equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a Price Band from Rs. 220 to Rs. 227 per Equity Share.

Parag Milk Foods Limited (the “Company” or “Issuer”) has finalized the allocation of 1,51,03,935 equity shares to anchor investors at a price of Rs. 227 per equity share aggregating to Rs. 342.86 crore to anchor investors. Anchor Investors include: Nomura, Morgan Stanley, Abu Dhabi Investment Authority, Tata MF, Neuberger Berman, Quantum, etc.

Abu Dhabi Investment Authority – Behave – 1423825 (9.43%), Alberta Teachers Retirement Fund Board – 316495 (2.1%), Copthall Mauritius Investment Limited – 913516 (6.05%), Government Pension Fund Global – 1421095 (9.41%), Hostplus Pooled Superannuation Trust Neuberger Australia PTY Limited – 330896 (2.19%), Indus India Fund (Marutius) Ltd. – 220300 (1.46%), Jana Emerging Markets Share Trust – 240972 (1.6%), Morgan Stanley Mauritius Company Ltd. – 1404195 (9.3%), Neuberger Berman Emerging Market Strategy – 305679 (2.02%), Neuberger Berman Emerging Markets Equity Fund – 561055 (3.71%), Nomura India Investment Fund Mother Fund – 2202655 (14.58%), Quantum (M) Limited – 844480 (5.59%), SEI Global Master Fund PLC A/C The SEI Emerging Markets Equity Fund – 273357 (1.81%), SEI Institutional International Trust Emerging Markets Equity Fund A/C SEI Institutional International Trust Emerging Markets Equity Fund managed by Neuberger Berman Management LLC – 460375 (3.05%),The Honey Well International Inc. Master Retirement Trust – 220300 (1.46%), The Nomura Trust & Banking Co. Ltd. As the Trustee of Nomura India Stock Mother Fund – 440570 (2.92%), Tata Balanced Fund – 1921270 (12.72%), Tata Equity Opportunities Fund – 507065 (3.36%), Tata India Consumer Fund – 28015 (0.19%), Tata Offshore India Opportunities Scheme – 694265 (4.6%), Tata Trustee Co Ltd. A/C Tata Mutual Fund A/c Tata Midcap Growth Fund – 240500 (1.59%), Tata Trustee Co Ltd. A/C Tata Mutual Fund – Tata India Tax Savings Fund – 133055 (0.88%)  

 The Company proposes to open on Wednesday, May 4, 2016, a Public Issue of its equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a Price Band from Rs. 220 to Rs. 227 per Equity Share (including a share premium per Equity Share) consisting of a fresh issue of Equity Shares aggregating up to Rs. 3,000 million (“Fresh Issue”) and an offer for sale of up to 20,572,573 Equity Shares comprising of 14,286,449 Equity Shares by the Investor Selling Shareholders; and 6,286,124 Equity Shares by Other Selling Shareholders (the “Offer for Sale” and the Offer for Sale and the Fresh Issue are collectively referred to as the “Issue”). The Issue includes a reservation of 300,000 Equity Shares for subscription by Eligible Employees (the “Employee Reservation Portion”). The Issue less the Employee Reservation Portion is referred to herein as the Net Issue.

 Bids can be made for a minimum of 65 Equity Shares and in multiples of 65 Equity Shares thereafter. The Company and the Investor Selling Shareholders may, in consultation with the Book Running Lead Managers (the “BRLMs”), consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “SEBI Regulations”). The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date. The Bid/Issue Period will close on Friday, May 6, 2016.

 The Equity Shares offered through the Issue are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (collectively, “Stock Exchanges”). For the Issue, BSE shall be the Designated Stock Exchange.

The BRLMs to the Issue are Kotak Mahindra Capital Company Limited, JM Financial Institutional Securities Limited, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited. 

 In compliance with the proviso to Regulation 21A(1) of the SEBI (Merchant Bankers) Regulations, 1992, read with proviso to Regulation 5(3) of the SEBI Regulations, IDFC Securities Limited and Motilal Oswal Investment Advisors Private Limited will be involved only in marketing of the Issue.

 The Issue is being made through the Book Building Process, in compliance with Regulation 26(2) of the SEBI Regulations, wherein at least 75% of the Net Issue shall be Allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company in consultation with the Investor Selling Shareholders and the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 75% of the Net Issue cannot be allotted to QIBs, then the entire application money shall be refunded forthwith. Further, not more than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. Further, 300,000 Equity Shares will be available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received from them at or above Issue Price after the Employee Discount. The Company in consultation with the Investor Selling Shareholders and the BRLMs will offer a discount of up to Rs. 12 per Equity Share on the Issue Price to Eligible Employees and a discount of up to Rs. 12 per Equity Share on the Issue Price to the Retail Individual Bidders. Under-subscription, if any, in the Employee Reservation Portion will be added back to the Net Issue portion. All potential investors, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in the Issue.

Sun Pharma trades in red despite a deal with ICGEB

Under the deal, Sun Pharma is expected to produce novel Dengue drug for 17 countries

Shares of Sun Pharmaceutical Industries, India’s largest drug maker, are currently trading 0.49% lower at Rs. 794.40 on BSE. The company has singed a global deal with ICGEB for treatment of Dengue.

Under the deal, Sun Pharma is expected to produce novel Dengue drug for 17 countries.

The scrip opened at Rs. 799 and has touched a high and low of Rs. 799 and Rs. 787.1 respectively. So far 714266(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 192143.2 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1010.1 on 25-May-2015 and a 52 week low of Rs. 706.4 on 24-Nov-2015. Last one week high and low of the scrip stood at Rs. 820 and Rs. 780.55 respectively.

The promoters holding in the company stood at 54.97 % while Institutions and Non-Institutions held 35.37 % and 9.65 % respectively.

The stock is currently trading below its 200 DMA. 

India April Nikkei Services PMI at 53.7 vs 54.3 in March

Services employment was unchanged in April, with almost all survey members reporting the same staffing levels as in March.

Although PMI data for April showed that economic conditions across India continued to improve, softer increases in output were noted among goods producers and service providers alike. The latter saw a slower expansion in new business inflows, while order books at manufacturers broadly stagnated. Subsequently, companies kept workforce numbers unchanged.

The seasonally adjusted Nikkei India Composite PMI Output Index dropped from 54.3 in March (37- month high) to 52.8 in April, pointing to a softer expansion in private sector activity across the country. Slower increases were seen at both goods producers and service providers.

Down from 54.3 in March to 53.7 in April, the seasonally adjusted Nikkei Services Business Activity Index – which is based on a single question asking respondents to report on the actual change in output at their companies compared with one month ago – pointed to a solid, although softer, expansion in activity. The latest increase in output was supported by growth in the Financial Intermediation, Post & Telecommunication and Transport & Storage sub-sectors.

New business at services firms rose for the tenth straight month in April. Despite easing since March, the rate of expansion was solid overall. Although survey members reported improved demand, there were mentions of competitive pressures. Incoming new work in the private sector as a whole increased at a moderate and weaker rate, weighed on by stagnant order books among manufacturers. April data highlighted a general lack of pressure on the capacity of Indian service providers, as unfinished business declined. The latest fall was the third in as many months, but the weakest in this sequence and fractional overall. In contrast, manufacturers accumulated backlogs.

Services employment was unchanged in April, with almost all survey members reporting the same staffing levels as in March. Broadly stagnant employment trends have now been registered through the past nine months. Likewise, manufacturing payroll numbers were unchanged. Amid reports of higher prices paid for fuel, average input costs faced by Indian services companies increased in April. The rate of cost inflation reached a 13-month high, although remained below the long-run series trend. Purchase prices among manufacturers also rose at a quicker rate, one that was the most pronounced since May 2015. Evidence suggested that part of additional cost burdens were passed on to clients, as both manufacturers and service providers raised their selling prices again in April. In contrast to the trends seen for costs, rates of inflation softened in both cases.

Services firms’ sentiment weakened slightly in April, with the degree of optimism being modest by historical standards. Those companies that foresee activity growth in the year ahead linked confidence to hopes of a pick-up in demand.

Commenting on the Indian Services PMI survey data, Pollyanna De Lima, economist at Markit, which compiles the survey, said, “Having accelerated to the fastest in over three years during March, activity growth across India’s private sector took a step back in April.

Manufacturers appear to be still struggling to generate strong upward momentum in a subdued demand environment, while solid increases in activity and new work were sustained among service providers. Nevertheless, a softer expansion in activity, combined with unchanged employment and a dip in business expectations among the latter suggest that companies are not fully convinced about the recovery and that March’s stronger numbers might have been a one-off.”

Adani Ports plunges 10%; Q4 net profit jumps 38%

Total income has increased from Rs.18318.50 mn for the quarter ended March 31, 2015 to Rs.21616.50 mn for the quarter ended March 31, 2016.

Adani Ports and SEZ Ltd was lower by 8% at Rs. 217. The company posted a net profit of Rs. 9140.60 mn for the quarter ended March 31, 2016 compared with Rs.6607.30 mn for the quarter ended March 31, 2015. 

Total income increased from Rs.18318.50 mn for the quarter ended March 31, 2015 to Rs. 21616.50 mn for the quarter ended March 31, 2016.

The scrip opened at Rs. 235.5 and has touched a high and low of Rs. 235.5 and Rs. 214.55 respectively. So far 4246058(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 48853.75 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 374.7 on 20-Aug-2015 and a 52 week low of Rs. 169.65 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 243 and Rs. 227.8 respectively.

The promoters holding in the company stood at 56.39 % while Institutions and Non-Institutions held 38.14 % and 5.47 % respectively.

The stock is currently trading below its 200 DMA.

Tata Motors slumps 3%

Ratings has affirmed India-headquartered Tata Motor Limited's (TML) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB'.

Tata Motors Ltd was lower by 3% at Rs. 396. Fitch Ratings has affirmed India-headquartered Tata Motor Limited's (TML) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable.

The rating reflects TML's small size in relation to global auto majors and its profitable wholly owned subsidiary, Jaguar Land Rover (JLR, BB-/Positive), which accounted for 75% of TML's consolidated revenue and 90% of EBITDA in the financial year ended 31 March 2015 (FY15).

The scrip opened at Rs. 406.75 and has touched a high and low of Rs. 406.75 and Rs. 394.8 respectively. So far 1995924(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 133492.92 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 530.95 on 11-May-2015 and a 52 week low of Rs. 266 on 11-Feb-2016. Last one week high and low of the scrip stood at Rs. 425 and Rs. 395 respectively.

The promoters holding in the company stood at 33.01 % while Institutions and Non-Institutions held 41.3 % and 25.69 % respectively.

The stock is currently trading above its 50 DMA.

Total exposure of top 50 defaulters of PSBs stood at Rs.1.21 lakh crore

The total exposure of top 50 defaulters of PSBs as on December 2015 was Rs. 1,21,832 crore, Jayant Sinha reportedly said in a written reply in the Upper House.

Minister of State for Finance Jayant Sinha stated that the number of wilful defaulters of PSBs rises to 7,686 from 5,554 in three years to December 2015, according to reports.

The total exposure of top 50 defaulters of PSBs as on December 2015 was Rs. 1,21,832 crore, Jayant Sinha reportedly said in a written reply in the Upper House. 

Sinha stated there were 1,365 borrower accounts having funded outstanding loans of Rs 500 crore.

Asian markets in negative zone

China’s Shanghai Composite is currently trading 0.23% lower at 2,985.91 points.South Korea’s Kospi index ​is ​at 2,985.91 points (down 0.59%) and Indonesia’s Jakarta Composite ​is ​at 4,788.04 points (down 0.51%).

Asian stock markets are trading in negative zone on Wednesday after US stock indices ended lower and oil prices lost ground. Crude oil futures traded in New York slipped on Tuesday on the back of renewed fears of a severe global glut ahead of weekly inventory data. Brent oil futures dropped 86 cents, or 1.9%, to finish at US$44.97 a barrel on London’s ICE exchange.

The US dollar, however, fell against most other major currencies, as the yen extended its recent gains against the greenback.

The Japanese stock market is closed until Friday for the Golden Week holidays.

China’s Shanghai Composite is currently trading 0.23% lower at 2,985.91 points.

South Korea’s Kospi index ​is ​at 2,985.91 points (down 0.59%) and Indonesia’s Jakarta Composite ​is ​at 4,788.04 points (down 0.51%).

Taiwan’s Taiex at 8,210.93 points (down 1.01%), Singapore’s Straits Times at 2,776.42 points (down 1.25%), Hong Kong’s Hang Seng at 20,426.66 points (down 1.23%), Thailand’s SET Composite at 1,389.53 points (down 0.60%) and Singapore Nifty at 7,736.50 points (down 0.58%).

European stocks slumped, while commodity prices as well as commodity currencies declined following a surprise interest-rate cut by the Australian central bank.

Liberty House submits bid for Tata Steel UK assets

Sanjeev Gupta, Executive Chairman of Liberty House, has formally submitted the so-called letter of intent (LOI) to buy loss-making assets of Tata Steel, including the Port Talbot steel plants in Wales.

The UK-based commodity-trading firm Liberty House Group has formally submitted the first bid for some of Tata Steel Ltd’s UK assets, reports a business daily.

Sanjeev Gupta, Executive Chairman of Liberty House, has formally submitted the so-called letter of intent (LOI) to buy loss-making assets of Tata Steel, including the Port Talbot steel plants in Wales.

“Liberty House Group today formally submitted the required LOI to Tata Steel Europe, containing its indicative bid for the entire issued share capital of Tata Steel UK," Liberty House said in a statement released late on Tuesday evening. 

"The document, which was sent from Liberty’s international headquarters in London, states the company’s intention to bid for all of Tata Steel’s UK assets, excluding its long products division which is in the process of being sold separately and the Scottish plate assets that Liberty already acquired from Tata,” Liberty House said.

The Port Talbot site in South Wales employs around 4,000 workers. 

Tata Steel’s total UK workforce is 15,000.

On 30th March, Tata Steel had said that it will consider various portfolio restructuring options for its UK business, including a sale in part or whole.

Tata Steel’s combined capacity in the UK is close to seven million tonnes (MT) of the company's total 13 MT of steelmaking capacity in Europe. 

The company acquired these assets as part of buyout of Corus Group Plc for US$12.9 billion in 2007.

Top 10 stocks in focus today: JSPL, Hexaware Tech, Adani Ports

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

JSW Energy Ltd: Sajjan Jindal-led JSW Energy Ltd has said that it will acquire 100% of Jindal Steel & Power Ltd’s (JSPL) 1,000 megawatt (MW) thermal power plant in Chhattisgarh at an enterprise value of INR 4,000 crore, reports a business daily.

Jindal Steel and Power: Jindal Steel and Power will announce its Q4 numbers today. IIFL estimates that the company’s loss is expected to widen to Rs. 507 crore, at a rate of 2.4% yoy and 11.6% qoq.

Adani Power: The company’s consolidated revenue stood at Rs. 7,344.39 crore, up 57.35% yoy and 18.63% qoq.

Reliance Industries Ltd: Reliance Industries is contemplating whether to withdraw a pending arbitration with the Government on the gas price issue in order to benefit from higher gas prices, reports a business daily.

Hexaware Technologies: Hexaware Technologies will announce its Q4 numbers today. IIFL estimates that the company’s net profit is likely to soar to Rs. 104 crore, at a rate of 24.8% yoy and 4.7% qoq.

Adani Ports & Special Economic Zone: Adani Ports & Special Economic Zone, country's largest private multi-port operator, reported consolidated net profit of Rs. 914.06 crore for the quarter ended March 31, 2016, registering growth of 38.34% yoy and 41.72% qoq. 

Bajaj Auto: Bajaj Auto last month regained the position of third-biggest two-wheeler company in volume terms, displacing Chennai-based TVS Motor, reports a business daily.

BHEL: A Parliamentary panel on Tuesday called for a forensic audit of BHEL to identify instances of deficiencies, saying that performance of the Maharatna PSU slackened in the last 2-3 years due to poor risk analysis and business foresight.

Tata Steel: The UK-based commodity-trading firm Liberty House Group has formally submitted the first bid for some of Tata Steel Ltd’s UK assets, reports a business daily.

Mangalam Cement: Mangalam Cement, one of the leading cement producers in India, will announce its Q4 numbers today. As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to fall to Rs. 238 crore, at a rate of 0.1% yoy; however, the same is likely to go up 12.1% qoq.   

SITI Cable, Den Networks: SITI Cable is planning to acquire Sameer Manchanda-promoted Den Networks, according to reports. SITI plans to expand its footprints via inorganic route and is talks with Den Network.

BASF India: The company’s standalone revenue stood at Rs. 1,152.12 crore, up 7.44% yoy and 1.8% qoq.

Sensex, Nifty to open on a weak note

Global cues are subdued. Asian markets are mostly weak. The market will await data on Nikkei Services and Composite PMI. The rupee could remain lower for most part of the day.

It has stopped raining gains for some days now and investors seem to be banking on a good monsoon for a recovery on the street. Talking about banks, the picture is not so healthy. The government said that PSU banks exposure to top 50 defaulters is around Rs. 1.22 trillion while wilful defaults stand at Rs. 662 bn. On the bright side, IMF said India's growth outlook is favourable, with GDP growth projected to strengthen to 7.5 per cent in the current fiscal year, even in the absence of major structural reforms. China and Japan are expected to further slowdown sharply over the next two years. Yet, it is important to implement major reforms like GST on a priority, an IMF spokesperson said.

The outlook is a weak start. The indices may look at bouncing back as the weakness has prolonged for a few days now. Global cues are subdued. Asian markets are mostly weak. The market will await data on Nikkei Services and Composite PMI. The rupee could remain lower for most part of the day. US stock indices ended lower on Tuesday, with the technology, energy and banking shares leading the fall, as weaker-than-expected Chinese manufacturing data revived worries about global growth. European stocks slumped, while commodity prices as well as commodity currencies declined following a surprise interest-rate cut by the Australian central bank.

The Dow Jones Industrial Average dropped 140.25 points, or 0.8%, to end at 17,750.91. The S&P 500 index sank 18.06 points, or 0.9%, to close at 2,063.37, with all the 10 main sectors in the red. The Nasdaq Composite index fell by 54.37 points, or 1.1%, to finish at 4,763. Two prominent members of the US Federal Reserve's Open Market Committee overnight said they intend to support an interest rate hike in June.

Crude oil futures traded in New York slipped on Tuesday on the back of renewed fears of a severe global glut ahead of weekly inventory data. West Texas Intermediate (WTI) crude oil lost US$1.13, or 2.5%, to end at US$43.65 a barrel on the New York Mercantile Exchange (NYMEX). Brent oil futures dropped 86 cents, or 1.9%, to finish at US$44.97 a barrel on London’s ICE exchange.

Meanwhile, the closely watched Energy Information Administration (EIA) weekly inventory data is due out on Wednesday. A survey compiled by Bloomberg expects an increase of 500,000 barrels in stockpiles last week.

The UK-based commodity-trading firm Liberty House Group has formally submitted the first bid for some of Tata Steel Ltd’s UK assets, reports a business daily. Sanjeev Gupta, Executive Chairman of Liberty House, has formally submitted the so-called letter of intent (LOI) to buy loss-making assets of Tata Steel, including the Port Talbot steel plants in Wales.