Top corporate news of the day - December 05, 2014

In a first ever exercise; the government would draw mine wise plans for Coal India to achieve one billion tonne production by 2019. 
 
ONGC Videsh Ltd, foreign arm of Oil and Natural Gas Corporation, is likely to soon acquire stakes in two Russian oilfields, Vankor and Yurubcheno-Tokhomskoye. 
 
Air India has tied up with the National Buildings Construction Corporation for monetising its land parcels. The national carrier had made a three-year plan to monetise assets worth Rs50bn by March 2016 and funds raised would be used to retire debt. 
 
After Madhya Pradesh, Essel group plans to develop smart cities in West Bengal in collaboration with the state and central government. The project will be developed under Public Private Partnership model. 
 
Following the US import alerts from the USFDA, the European Union has banned imports from aRanbaxy Laboratories factory unit in Dewas in Madhya Pradesh which makes injectable antibotics. 
 
Bharat Heavy Electricals said it has commissioned the sixth unit of 412 MW Rampur hydel power project in Himachal Pradesh. 
 
Axis Bank said it had raised Rs57.05bn by selling infrastructure bonds. The 10-year senior unsecured redeemable non-convertible debentures were priced at 8.85% a year, payable annually. (ET)
 
HDFC Bank has become the first bank to rule out a joint venture partnership with any applicant for a payment bank. (BS)
 
Essar Steel plans to invest Rs15bn over the next one year. The company intends to complete the second phase of a 6mtpa pellet plant at Paradeep in Odisha and take up a 1.35mtpa coke oven plant at Hazira, Gujarat. 
 
Even after witnessing three years of muted growth in the steel sector, JSW Steel is set to continue its expansion. The company has lined up investments worth Rs70-80bn every year towards capacity addition. (BL)
 
Ashiana Housing will mark its entry into the Chennai's realty space by launching residential projects, one of them targeted at senior citizens. 
 
Patel Engineering has sold a 4-acre plot in Mumbai's central business district for about Rs3bn as part of plans to sell assets to reduce debt. 
 
Dena Bank plans to sell Rs4-5bn of bad loans to asset reconstruction companies in the last quarter of the fiscal, a senior bank official said. 
 
Government's 5% stake in SAIL can raise Rs15-17bn for the exchequer in the first disinvestment under the new regime. 

Mastek soars 4% after winning contract

Mastek today started the day on a robust note at Rs. 277 on the BSE after the firm announced that it secured a new contract from UK-based Unum.

The announcement was made yesterday after market hours.

On the BSE, so far, the stock has hit a high of Rs. 282, and has currently jumped over 4 per cent at Rs. 278.

The counter has seen trades of around 53,000 shares, as against the daily average volume of 28,000 shares in the past two weeks.

Meanwhile, the BSE Sensex is up 39 points at 28,602.

Sensex opens on a positive note...Auto, Bankex lead

At 9:18AM, the S&P BSE Sensex is trading at 28,583 up 20 points, while NSE Nifty is trading at 8,579 up 15 points.

The BSE Mid-cap Index and BSE Small-cap Index was trading up at 1%.

Auto, Consumer Durables, Power, banking, capital goods, Metal, realty, FMCG, Oil and gas indices are the gainers, while healthcare indices is only the loser.

GAIL, BHEL, COALINDIA,SUNPHARMA,TATASTEEL, Reliance, Hindalco are among the gainers, whereas HDFC Bank, Infosys, Axis Bank, HUL are losing sheen on BSE.

US indices closed flat. ECB President Mario Draghi said the central bank was  prepared to implement more easing next year if necessary. This did not go well with global markets.  In US economic news, weekly jobless claims fell to 297,000 as expected. Monthly jobs report later in the day is awaited in US. Asian indices are mostly higher. Japan's Nikkei is up and so is Hong Kong's Hang Seng. China's Shanghai index has gained around 0.83%.

The SAIL offering is set to kick off the Modi-led government's ambitious disinvestment programme. The govt has fixed a floor price for SAIL stake sale at Rs 83 per share, through which it hopes to raise up to Rs.1,700 crore. A report stated that the government will give a discount of 5% to retail investors in the offering.

HDIL has said the allegation of irregularities in the Slum Rehabilitation Authority project in Bandra, Mumbai, is a "frivolous attempt to malign" the company. The company said that it was taking recourse to legal remedy, including quashing of the FIR registered against government and company officials, a report stated.

A High Level Committee to interact with trade and industry to ascertain where clarity on tax laws is required was constituted on Wednesday. Former Chief Economic Advisor Ashok Lahiri will serve as its Chairman while other members include retired Settlement Commission Member Sidhartha Pradhan and Gautam Ray, retired Director General (Audit) of Customs and Central Board of Excise and Customs (CBEC), an official statement said.

The Airports Authority of India is planning to withdraw credit facility relating to airport user fees to the low-cost carrier SpiceJet at all airports in the country from Thursday midnight, according to reports.

Sensex opens on a positive note...Auto, Bankex lead

At 9:18AM, the S&P BSE Sensex is trading at 28,583 up 20 points, while NSE Nifty is trading at 8,579 up 15 points.

The BSE Mid-cap Index and BSE Small-cap Index was trading up at 1%.

Auto, Consumer Durables, Power, banking, capital goods, Metal, realty, FMCG, Oil and gas indices are the gainers, while healthcare indices is only the loser.

GAIL, BHEL, COALINDIA,SUNPHARMA,TATASTEEL, Reliance, Hindalco are among the gainers, whereas HDFC Bank, Infosys, Axis Bank, HUL are losing sheen on BSE.

US indices closed flat. ECB President Mario Draghi said the central bank was  prepared to implement more easing next year if necessary. This did not go well with global markets.  In US economic news, weekly jobless claims fell to 297,000 as expected. Monthly jobs report later in the day is awaited in US. Asian indices are mostly higher. Japan's Nikkei is up and so is Hong Kong's Hang Seng. China's Shanghai index has gained around 0.83%.

The SAIL offering is set to kick off the Modi-led government's ambitious disinvestment programme. The govt has fixed a floor price for SAIL stake sale at Rs 83 per share, through which it hopes to raise up to Rs.1,700 crore. A report stated that the government will give a discount of 5% to retail investors in the offering.

HDIL has said the allegation of irregularities in the Slum Rehabilitation Authority project in Bandra, Mumbai, is a "frivolous attempt to malign" the company. The company said that it was taking recourse to legal remedy, including quashing of the FIR registered against government and company officials, a report stated.

A High Level Committee to interact with trade and industry to ascertain where clarity on tax laws is required was constituted on Wednesday. Former Chief Economic Advisor Ashok Lahiri will serve as its Chairman while other members include retired Settlement Commission Member Sidhartha Pradhan and Gautam Ray, retired Director General (Audit) of Customs and Central Board of Excise and Customs (CBEC), an official statement said.

The Airports Authority of India is planning to withdraw credit facility relating to airport user fees to the low-cost carrier SpiceJet at all airports in the country from Thursday midnight, according to reports.

KPIT Tech zooms after block deal

KPIT Technologies after trading on a quiet note in the first half, suddenly strengthened gains on the BSE after 16 lakh shares have changed hands at the counter at Rs. 173 on the BSE today.

The stock zoomed 7.6 per cent from the day's low of Rs. 171 to touch a high of Rs. 184.

The share price of KPIT Technologies is now up 5.3 per cent at Rs. 182. On the BSE, so far 2.7 million shares have been traded at the counter, as against the daily average volume of 261,000 shares in the past two weeks.

Meanwhile, the BSE Sensex is up 56 points at 28,498.

Top corporate news of the day - December 4, 2014

Stelis Biopharma, wholly owned subsidiary of Strides Arcolab, announced the ground-breaking for construction of its customised, multi-product, biopharmaceutical manufacturing facility at Bio-Xcell Biotechnology Park in Malaysia for Rs3.6bn. (ET)
 
National Electric Vehicle Sweden AB, the holding company that purchased assets of Saab Automobile two years ago, has said that it is in talks with two Asian companies for a sell-out, one of which, news reports say, could be Mahindra & Mahindra. (BS)
 
Ranbaxy Laboratories Ltd has been barred by from exporting the antibiotic cephalosporin to Germany from its plant in Madhya Pradesh for not complying with standard manufacturing practices. (BS)
 
Fastrack, the youth brand from the house of Titan which had 148 stores across 75 cities in the country in nine years, is now going to rapidly increase its store count in the next one year to reach 300 end of December 2015. (BS)
 
BPCL will diversify into Petrochemicals at an estimated capital cost of Rs45.88bn. The company said it plans to produce niche petrochemicals such as Acrylic Acid, Acrylates and Oxo Alcohols that are predominantly being imported into the country. (ET)
 
ABB has won orders worth Rs3.34bn from public utilities, Bihar Grid Corporation Limited and West Bengal State Electricity Transmission Company Limited, to build new transmission and distribution substations that will boost power supplies in the region. (ET)
 
Axis Bank is expecting its credit card business to double in terms of volume during the next three years. It is also expecting the credit card spend to grow two to three times from the current Rs10bn a month, by the time. (BS)
 
Suven Life sciences Limited has raised Rs2bn through Qualified Institutional Placement process. Post issue, the promoter's holding will be in excess of 59% as against 64.76% as on September 30, 2014. (BL)
 
National Mineral Development Corporation Ltd has decided to scale up its production of iron ore gradually and aimed to double output by 2018-19. (BL)
 
Bharat Heavy Electricals Limited has commissioned indigenously developed India's first phase shifting transformer at Kothagudem Thermal Power Station in Telangana. (BL)
 
BEML Ltd has launched the biggest 'Made-in-India' electrical excavator BE1800E for large mining operations. (BL)

ADB approves US$200mn loan to strengthen finances in Punjab

The Asian Development Bank (ADB) and the Government of India signed a US$200mn loan to help India's Punjab state improve a weak fiscal situation that is undermining growth, investment and socioeconomic development.
 
"Untargeted public expenditure including various transfer payments has left Punjab in a financial bind which is weighing on public investment and the delivery of public services," said M. Teresa Kho, Country Director of ADB's India Resident Mission, who signed the agreement for ADB. "ADB's loan will help the state government to introduce reforms which will strengthen finances, encourage fresh investment and free up resources for priority spending needs."
 
With large committed expenditure, the state government has been forced to borrow heavily in recent years to fund its spending needs, creating a vicious cycle of debt and deficit. Moreover, untargeted power subsidies are adversely affecting environmental sustainability in the state by exerting pressure on water resources.
 
Tarun Bajaj, Joint Secretary, Department of Economic Affairs at India's Ministry of Finance, who signed the agreement on behalf of Government of India, said: "The Punjab Development Finance Program will improve targeting of public expenditure in the areas of health, education, power, and public works. Moreover, it addresses environmental issues that are undermining sustainability considerations through direct feedback loops from subsidy to water table depletion." Jaspal Singh, Secretary (Expenditure), signed on behalf of the Government of Punjab.
 
Savings produced by these actions are expected to free up extra space for spending in other areas, allowing capital outlays as a percentage of gross state domestic product to rise from less than 1% in fiscal year (FY) 2012 to an expected 2.4% by FY2016. Fiscal savings between FY2014 and FY2018 are expected to reach US$766mn.
 
The loan funds will be released in three tranches as policy milestones are met, with the first amount set at US$50mn. ADB is also providing a technical assistance grant of US$400,000 to raise the fiscal management skills of key institutions overseeing the reforms. The program will run for about two and a half years with an expected completion date of June 2017.
 
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2013, ADB assistance totaled US$21.0bn, including cofinancing of US$6.6bn

Sanghvi Forging bags new orders; stock 2% up

Sanghvi Forging and Engineering Ltd announced that yje company has received an order worth Rs. 11 crore. The fresh orders have come in from Oil and Gas and Power sectors. The majority of the orders received by the company are for its new heavy open die forging plant.

At 9.45 AM, the stock was up 2.25% at Rs. 45.50. The stock has hit a high of Rs. 45.50 and a low of Rs. 44.05.

Monte Carlo IPO subscribed 61% on the first day

The public issue of garment manufacturer Monte Carlo was subscribed by 61% on the first day of the IPO. The issue will remain open till Friday. Ahead of the IPO on Tuesday, the company sold 16.3 lakh shares to anchor investors -- 60 per cent of the shares set aside for qualified institutional buyers, as required, says a report.

Monte Carlo Fashions Limited (the "Company" or "Issuer") has allotted to anchor investors 16,29,904 equity shares at Rs. 645 per equity share (upper end of the Price Band) aggregating to Rs. 105.13 crore. The anchor investors include Aditya Birla Private Equity Trust - A/C Aditya Birla Private Equity Fund 1; Aditya Birla Private Equity Trust - A/C Aditya Birla Private Equity Sunrise Fund; DB International (Asia) Ltd.; Tata Trustee Co. Ltd. A/C Tata Mutual Fund A/C Tata Midcap Growth Fund; and Birla Sunlife Trustee Company Private Limited. Birla Mutual Fund has applied through six (6) schemes.

The Issue opens on December 3, 2014, an initial public offering ("IPO) of 5,433,016 equity shares of face value of Rs. 10 each (the "Equity Shares") for cash at a Price Band of Rs. 630 to Rs. 645 per Equity Share through an Offer for Sale by Selling Shareholders (the "Offer"). 

Sensex surges nearly 250 points...Nifty above 8,600 levels

At 9:20AM, the S&P BSE Sensex is trading at 28,728 up 285 points, while NSE Nifty is trading at 8,599 up 62 points.

The BSE Mid-cap Index and BSE Small-cap Index was trading up at 1%.

Auto, Consumer Durables, Power, banking, capital goods, FMCG, healthcare metal, realty, Oil and gas indices are the gainers.

Global cues are healthy for now but not good enough to turn sentiment around. The Dow rose 0.18% while S&P 500 added 0.38%. Nasdaq was up 0.39%. Asian indices are also higher. Japan's Nikkei and Hong Kong's Hang Seng are up over half a percent each. China's Shanghai index is also up around 0.6% now.

Stocks of insurance companies surged up to 8.4 per cent today on hopes of hike in foreign direct investment (FDI) limit in the sector, says a report. The gainers include Bajaj Finserv, Max India, Reliance Capital and Aditya Birla Nuvo.

The public issue of garment manufacturer Monte Carlo was subscribed by 61 per cent on the first day of the IPO. The issue will remain open till Friday. Ahead of the IPO on Tuesday, the company sold 16.3 lakh shares to anchor investors -- 60 per cent of the shares set aside for qualified institutional buyers, as required, says a report.

The Centre is set to kick off its disinvestment programme on Friday by selling 5% of its stake in Steel Authority of India Ltd (SAIL). Based on SAIL's closing price on Wednesday, the sale should fetch around Rs. 1,768 crore, says a report. After SAIL tests the market, other state-owned companies whose shares will be put on the block are ONGC, Coal India, and Hindustan Zinc (residual stake sale), the report added.

Sadbhav Infrastructure Projects has filed draft papers with the regulator Sebi for raising up to Rs 600 crore through an initial public offering.