Kotak Mahindra Bank gains on plan to trim promoter shareholding to 40%

Kotak Mahindra Bank is currently trading at Rs 865.00, up by 1.55 points or 0.18% from its previous closing of Rs. 863.45 on the BSE. The scrip opened at Rs 862.00 and has touched a high and low of Rs 872.40 and Rs 850.60 respectively. So far 29373 shares were traded on the counter. The BSE group 'A' stock of face value Rs 5 has touched a 52 week high of Rs 950.00 on 16-May-2014 and a 52 week low of Rs. 588.00 on 28-Aug-2013. Last one week high and low of the scrip stood at Rs 924.00 and Rs 850.65 respectively. The current market cap of the company is Rs 66442.72 crore. The promoters holding in the company stood at 43.58% while Institutions and Non-Institutions held 33.53% and 22.73% respectively. Kotak Mahindra Bank has been directed by the Reserve Bank of India (RBI) to bring down its promoter shareholding to 40% by September 30, 2014 per estimates provided by the bank. The next estimate is 30% by December 31, 2016. The current promoter shareholding in the bank is 43.58%. Kotak Mahindra Finance is the first non-banking finance company in India to convert itself in to a bank as Kotak Mahindra Bank. Today, the bank is one of the fastest growing bank and among the most admired financial institutions in India.

SSIII Indian Investments sells 60 lakh shares of Oberoi Realty

SSIII Indian Investments Two has offloaded 60 lakh shares of Oberoi Realty through the open market route. The shares were sold on an average price of Rs 230.61 valuing the transaction to Rs 138.37 crore. On the other hand, Morgan Stanley Asia (Singapore) picked up 38.71 lakh shares of the real-estate firm for Rs 89.03 crore.

Oberoi Realty is India’s leading real estate development company, headquartered in Mumbai, focused on premium developments in the residential, office space, retail, hospitality and social infrastructure verticals. Oberoi Realty has an established brand and a track record in the real estate industry of developing innovative projects through its emphasis on contemporary architecture, strong project execution and quality construction.

Aditya Birla Nuvo to invest Rs 350 crore in financial services in FY15

Aditya Birla Nuvo (ABNL) is planning to invest Rs 350 crore in its financial services business in the current fiscal. The company has earmarked a capital expenditure plan of around Rs 460 crore for 2014-15.

Aditya Birla Nuvo is a $4 billion conglomerate operating in the services and the manufacturing sectors, where it commands a leadership position. Its service sector businesses include Financial Services (Life Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management and general insurance advisory), Fashion & Lifestyle (Branded apparels & Textiles) and Telecom.

Gail India slips despite reporting 57% rise in Q4 net profit

GAIL (India) is currently trading at Rs. 379.95, down by 30.10 points or 7.34% from its previous closing of Rs. 410.05 on the BSE. The scrip opened at Rs. 403.00 and has touched a high and low of Rs. 403.00 and Rs. 378.30 respectively. So far 255031 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 439.00 on 26-May-2014 and a 52 week low of Rs. 273.00 on 28-Aug-2013. Last one week high and low of the scrip stood at Rs. 439.00 and Rs. 400.00 respectively. The current market cap of the company is Rs. 48202.14 crore. The promoters holding in the company stood at 56.11 % while Institutions and Non-Institutions held 40.09 % and 2.40 % respectively. Gail (India) has reported a rise of 57.24% in its net profit at Rs 972.03 crore for fourth quarter and year ended March 31, 2014 as compared to Rs 618.18 crore for the same quarter in the previous year. Total income of the company increased by 17.56% at Rs 14977.89 crore for quarter under review as compared to Rs 12740.29 crore for the quarter ended March 31, 2013. For the year ended March 31, 2014, the company has posted a jump of 8.77% in its net profit at Rs 4375.27 crore as compared to Rs 4022.20 crore for the same period in the previous year. Total income of company improved by 25.95% at Rs 58406.45 crore for year under review as compared to Rs 48287.20 crore for the period ended March 31, 2013. For the year ended March 31, 2014, on the consolidated basis, the company has posted a rise of 9.43% in its net profit at Rs 4786.22 crore as compared to Rs 4373.60 crore for the same period in the previous year. Total income of company has increased by 21.01% at Rs 62836.52 crore for year under review as compared to Rs 51923.71 crore for the period ended March 31, 2013.

Moody's: Proposed bank resolution regime could raise risk for Indian bank creditors

Moody's could lower its assumption of government support for all categories of bank securities, including senior unsecured debt. Moody's Investors Service says that modifications to India's bank resolution framework, if implemented as recommended, could increase risks for many creditors of Indian banks, including holders of both senior and subordinated debt. At the same time, while it is too early to form any definitive conclusions, in the event of implementation, Moody's could lower its assumption of government support for all categories of bank securities, including senior unsecured debt. In addition, there could be a significant differentiation between bank senior unsecured debt and deposit ratings resulting from the principle of depositor preference, as currently defined under the proposal. Moody's made its conclusions in a just-released report, titled: "Potential changes to India's bank resolution framework could increase risks for creditors". The report was authored by Gene Fang and Srikanth Vadlamani, both Vice Presidents and Senior Analysts. Moody's notes that while depositor preference is usually only applied to natural persons and not legal persons, the scope of the proposed modifications extends depositor preference significantly beyond what is usual, for example, to the coverage of interbank deposits. Such a policy could be credit negative for other senior unsecured creditors should it place a very large percentage of liabilities ahead of them in the queue in the event of insolvency. At the same time, the proposed changes would not necessarily eliminate the probability of support completely for those other senior unsecured creditors. Normally, resolution authorities reserve the right to choose resolution tools aside from bail-in to avoid the systemic risks of contagion. Moody's report also notes that the Working Group recommends that losses should be imposed in an "ownership neutral" fashion, which would preclude different treatment of public-sector and private-sector banks. The Working Group released its recommendations on May 2 and not only does the initial comment period continue until 31 May, implementation will also require establishing new regulatory bodies and legal framework, which will inevitably involve a complex and lengthy process. Accordingly, Moody's emphasizes that its conclusions about the potential impact are only preliminary and inherently subject to the details of any changes that actually occur.

CARE withdraws rating assigned to long-term debt of Edelweiss Financial Services

CARE has withdrawn the rating assigned to the long-term debt of Rs 50 crore of Edelweiss Financial Services, with immediate effect, as the company has not raised any amount against the instrument and there is no amount outstanding against the instrument as on date. Edelweiss Financial Services is India’s leading diversified financial services company. It is engaged in the business of investment banking, brokerage services, asset management and financing.

Wipro moves up on the bourses

Wipro is currently trading at Rs. 510.40, up by 5.85 points or 1.16% from its previous closing of Rs. 504.55 on the BSE. The scrip opened at Rs. 509.00 and has touched a high and low of Rs. 518.05 and Rs. 506.00 respectively. So far 123639 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 610.50 on 26-Feb-2014 and a 52 week low of Rs. 315.30 on 31-May-2013. Last one week high and low of the scrip stood at Rs. 508.50 and Rs. 480.95 respectively. The current market cap of the company is Rs. 125945.09 crore. The promoters holding in the company stood at 73.47% while Institutions and Non-Institutions held 13.62% and 10.97% respectively. Wipro, a leading Global Information Technology, Consulting and Outsourcing company, has launched its ‘Finance and Accounting Business-Process-as-a-Service’ (F&A BPaaS) solution for enterprises.  This solution is developed in partnership with NetSuite, the industry’s leading provider of cloud-based financials / ERP and omnichannel commerce software suites, Wipro’s F&A BPaaS is a comprehensive, end-to-end business process solution that can help improve business agility, user experience and process efficiency. Wipro’s F&A BPaaS is built on the industry leading NetSuite platform, along with best-in-class Wipro process capabilities in finance and accounting. The solution empowers customers to selectively manage and control their finance and accounting processes on a standardized platform, in a 100% variabilized cost model. It also enables rapid implementation of business processes, improves compliance standards, and provides operational readiness, leading to significant cost savings. Wipro is a leading provider of analytics and information management solutions - enabling customers to derive actionable business insights from data to drive growth, enhance cost management and strengthen risk management.

Diageo gets SEBI’s nod for open offer to acquire 26% stake in United Spirits

Securities and Exchange Board of India (SEBI) has given nod to Global liquor giant Diageo Plc for its open offer to acquire additional 26 per cent stake in United Spirits (USL) for Rs 11,448.91 crore. SEBI issued final observations, necessary for the offer and the deal as a whole to go through, on May 21. This is the second open offer made by Diageo to gain majority control in India’s number one liquor firm. As part of the deal to buy 53.4 per cent stake in Vijay Mallya-led UB group’s USL, Diageo has made a Rs 11,448.91-crore open offer for purchase of 26 per cent stake in the company from non-promoter shareholders. The global liquor giant would pay Rs 3,030 per share of USL, which is more than double the price of Rs 1,440 per share it offered in the previous bid last year. United Spirits is the largest spirits company in India and a flagship entity of $2 billion UB group. It manufactures wide range of whisky, vodka, rum and other spirits.

Cotton futures exhibit mixed trend on MCX

Cotton futures exhibited mixed trend on MCX as May contracts traded down as speculators reduced their holdings on the back of slow buying of mills. While June contracts traded high on account of increased demand at the spot market along with expectations of higher exports.

The contract for May delivery was trading at Rs 19160.00, down by 0.05% or Rs 10.00 from its previous closing of Rs 19170.00. The open interest of the contract stood at 1740.00 lots.

The contract for June delivery was trading at Rs 19490.00, up by 0.05% or Rs 10.00 from its previous closing of Rs 19480.00. The open interest of the contract stood at 5747.00 lots on MCX.

Turmeric futures trade lower on subdued demand

Turmeric futures traded lower on NCDEX as speculators indulged in reducing exposures due to subdued demand against adequate supplies from producing belts. Further, arrival of poor quality Turmeric as well as sluggish North Indian demand also weighed on the yellow spice's prices.

The contract for June delivery was trading at Rs 6100.00, down by 1.42% or Rs 88.00 from its previous closing of Rs 6188.00. The open interest of the contract stood at 13405.00 lots.

The contract for July delivery was trading at Rs 6250.00, down by 1.51% or Rs 96.00 from its previous closing of Rs 6346.00. The open interest of the contract stood at 2705.00 lots on NCDEX.