Adani Enterprises recast; port, power biz shifted to arms

Moneycontrol Bureau

Adani Enterprises —the flagship of the USD 9.4 billion Adani Group—Friday  announced a complex restructuring of its various businesses in an attempt to simplify its corporate structure.

Under the terms of the recast, Adani Enterprises (AEL) port business will be transferred to subsidiary Adani Ports and Special Economic Zone , its power businesses to Adani Power (APL), and transmission business to unlisted Adani Transmissions, which will subsequently be listed.

Also, Adani Mining Private Limited (AMPL), a wholly owned subsidiary of AEL is proposed to be merged into AEL. 

The scheme is subject to approvals from the stock exchanges, Sebi, shareholders, creditors and the Gujarat High Court.

Once approved, this is what the share swap ratio will be for each of the transfers:

Adani Ports to issue 14123 shares for every 10000 shares of Adani Enterprises
 
Adani Power to issue 18596 shares for every 10000 shares in Adani Enterprises

Adani Transmission to issue one share for every one share in Adani Enterprises

Following are the highlights of the restructuring:
(Excerpts from the press release)

* Demerger of the Port Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities pertaining to the Belekeri port and the investment of AEL in APSEZ into APSEZ;

* Demerger of the Power Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities pertaining to the 40MW solar power project at Bitta village, Kutch district of Gujarat and the investments of AEL in APL into APL;

* Demerger of the Transmission Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities related to the Mundra-Zedra transmission line and the investment of AEL in ATL into ATL;

* Merger of AMPL into AEL

The restructuring will become effective from April 1, 2015, the company said in its release.

"The scheme of arrangement will simplify corporate structure providing the shareholders of AEL direct shareholding in the respective operating companies, listing of one of the largest private sector transmission companies with over 5,000 circuit kms of transmission lines across Western, Northern and Central regions of India and increase free float at APL and APSEZ," the company release said.
 
The company further said Adani Transmission was in the process of acquiring 100 per cent of the outstanding equity share capital of Adani Transmission (India) (ATIL) from APL and Adani Power Maharashtra Limited (APML, a wholly owned subsidiary of APL). ATL is also in the process of acquiring 100% of the outstanding equity share capital of Maharashtra Eastern Grid Power Transmission Company Ltd. (MEGPTCL) from AEL, the company said. 

Adani Enterpris stock price

On January 30, 2015, Adani Enterprises closed at Rs 629.50, up Rs 45.50, or 7.79 percent. The 52-week high of the share was Rs 646.00 and the 52-week low was Rs 210.40.

The company's trailing 12-month (TTM) EPS was at Rs 2.48 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 253.83. The latest book value of the company is Rs 91.24 per share. At current value, the price-to-book value of the company is 6.90.

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Most billing disputes against Voda, Idea, Tata, BSNL: TRAI

As per the Telecom Regulatory Authority of India (TRAI) guideline, not more than 0.1 percent of the total bills raised by a company in a service area should be disputed.

Customers of Vodafone, Idea Cellular , Tata Teleservices  and BSNL in some circles have reported maximum discrepancies in their phone bills, according to a latest report by telecom regulator TRAI.

As per the Telecom Regulatory Authority of India (TRAI) guideline, not more than 0.1 percent of the total bills raised by a company in a service area should be disputed. However, 0.18 percent post-paid customers of Vodafone customers in Andhra Pradesh disputed their bills, 0.33 per cent in Assam and 0.24 in North East telecom service area which covers six states, as per TRAI's Indian Telecom Services Performance Indicators for June-September 2014 period.

Post-paid customers of Idea in Andhra Pradesh (0.19 per cent), Gujarat (0.11 per cent) and Kerala (0.13 per cent) complaint about their phone bills. Over 1 per cent of pre-paid customers of state-run BSNL raised issues in Kolkata and 0.24 per cent in West Bengal raised issue regarding their bills.

As per TRAI guuidelines, if a customer raises any dispute regarding the bill, companies must resolve the issue within four to six weeks to 100 percent satisfaction of the customer.

BSNL was unable to resolve billing dispute within 4 weeks in 10 out of 22 telecom circles in the country which include Bihar, Kolkata, North East, Odisha, UP West and West Bengal. There were no records of BSNL available for Himachal Pradesh, Punjab and Rajasthan. Further, Tata Teleservices failed to resolve billing dispute in 4 service areas -- Mumbai and Maharashtra for both CDMA and GSM services, Kolkata for CDMA and in Tamil Nadu for GSM services.

Airtel and BSNL failed to refund charges levied wrongly on consumers within TRAI benchmark of 1 week from the date complaint is resolved. While Airtel was found breaching the guidelines on the same in Delhi and Chennai, the state-run firm BSNL credited money back into customer's account across six service areas - Bihar, Chennai, Kolkata, North East, UP West and Bengal. TRAI did not had BSNL report on refund status of wrongly charged money in Himachal Pradesh, Jammu and Kashmir, Punjab and Rajasthan.

Idea Cellular stock price

On January 30, 2015, Idea Cellular closed at Rs 154.55, down Rs 4.95, or 3.1 percent. The 52-week high of the share was Rs 177.30 and the 52-week low was Rs 125.10.

The company's trailing 12-month (TTM) EPS was at Rs 6.89 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 22.43. The latest book value of the company is Rs 44.09 per share. At current value, the price-to-book value of the company is 3.51.

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FTIL moves SC against FMC, Sebi's 'fit and proper' order

The FMC order had declared FTIL as not 'fit and proper' to run exchanges. Taking cue from FMC, Sebi had also passed a similar order, directing FTIL to divest in stake in all stock exchanges.

Waging the battle against the Forward Markets Commission (FMC) and market regulator Sebi's 'fit and proper' order, Jignesh Shah led Financial Technologies ( FTIL ) has moved the Supreme Court, seeking relief. FTIL has appealed against the Bombay HC order that had upheld the FMC order of 2013.

The FMC order had declared FTIL as not 'fit and proper' to run exchanges. Taking cue from FMC, Sebi had also passed a similar order, directing FTIL to divest in stake in all stock exchanges.

After facing disappointment at the hands of Securities Appellate Tribunal (SAT), FTIL has filed another plea in SC challenging the Sebi order. FTIL's pleas will be heard by the SC on February 6.

Financial Tech stock price

On January 30, 2015, Financial Technologies closed at Rs 201.50, up Rs 5.85, or 2.99 percent. The 52-week high of the share was Rs 403.60 and the 52-week low was Rs 135.75.

The company's trailing 12-month (TTM) EPS was at Rs 25.80 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 7.81. The latest book value of the company is Rs 522.91 per share. At current value, the price-to-book value of the company is 0.39.

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Eyeing 150 mn subscribers in India by 2015-end: Truecaller

The Indian government has asked Swedish caller id major truecaller for access to its database for citing privacy invasion. Speaking exclusively to CNBC-TV18's Kritika Saxena, its co-founder & CEO Alan Mamedi says that Swedish laws prevent the company from giving access to the government or any government for that matter.

The Indian government has asked Swedish caller id major truecaller for access to its database for citing privacy invasion. Speaking exclusively to CNBC-TV18's Kritika Saxena, its co-founder & CEO Alan Mamedi says that Swedish laws prevent the company from giving access to the government or any government for that matter. More importantly, he says that India is expected go grow its subscriber base by over double in 2015... Expansion of true dialer and a new product is also on the anvil!

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Airtel payment bank will help 'reach the unbanked': Kotak

Bharti Airtel will sell 19.9 percent stake in Airtel M Commerce services to Kotak Mahindra Bank. In an interview to CNBC-TV18's Latha Venkatesh, Deepak Gupta, joint MD, Kotak Mahindra Bank, spoke about the deal.

It is first play into a totally new customer segment, the inclusive customer segment. As a standalone bank it is practically impossible to reach out to that mass in the market place.

Dipak Gupta

JMD

Kotak Mahindra Bank

Airtel M Commerce services, a wholly owned subsidiary of Bharti Airtel , has decided to convert its existing prepaid payment service into a payments bank by applying for a license with the Reserve Bank of India.

Bharti Airtel will also sell 19.9 percent stake in Airtel M Commerce services to Kotak Mahindra Bank . Airtel M Commerce currently offers mobile money services under the brand name Airtel Money.

In an interview to CNBC-TV18's Latha Venkatesh, Deepak Gupta, joint MD, Kotak Mahindra Bank, spoke about the deal.

Edited excerpts from the interview on CNBC-TV18.

Q: Are you paying something for this 19.9 percent stake? What will it be?

A: We are investing in that company. There is an existing company which has a PPI license, it is an RBI approved PPI. We are investing in it and that company will apply for a payment bank.

Q: That investment, what does it cost you?

A: We have not disclosed that.

Q: How do you expect this joint venture to benefit Kotak Mahindra Bank?

A: It is first play into a totally new customer segment, the inclusive customer segment. As a standalone bank it is practically impossible to reach out to that mass in the market place.

If you look at Airtel, it has phenomenal reach, particularly if you look at the rural pockets, the unbanked segments. They have an existing reach, so it is a great way to reach out to a wider inclusive segment.

Bharti Airtel stock price

On January 30, 2015, at 14:14 hrs Bharti Airtel was quoting at Rs 371.80, down Rs 3.35, or 0.89 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 282.10.

The company's trailing 12-month (TTM) EPS was at Rs 27.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 13.57. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.23.

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Maran, Kal Air to sell entire SpiceJet stake to Ajay Singh

The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.

Moneycontrol Bureau

Crisis-hit  SpiceJet on Friday morning announced that Kalanithi Maran and Kal Airways plan to sell their entire equity to its new promoter Ajay Singh.

The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.

SpiceJet also plans to raise up to Rs 1,500 crore through issues of various securities.

Maran, his wife Kaveri, and Managing Director S Natrajhen have resigned from the SpiceJet board.

The budget-carrier on Wednesday joined the low-fare race in the domestic market when it put on block half a million seats with ticket prices starting at Rs 1,499 under a limited period promotional offer. SpiceJet later announced that on day one itself, booking volumes quadrupled (increased by 4X or 400 percent), indicating continuing pent up demand in the market despite other airlines having held sales earlier this month.

Meanwhile, the beleaguered aviation company is eagerly awaiting the second tranche of investment to the tune of Rs 400 crore on February 15. Singh and a consortium of investors has promised a total of Rs 1500 crore investment in the cash strapped airline in tranches.

SpiceJet stock price

On January 30, 2015, at 14:05 hrs SpiceJet was quoting at Rs 22.30, up Rs 0.50, or 2.29 percent. The 52-week high of the share was Rs 24.10 and the 52-week low was Rs 11.10.

The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.35.

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SKS Microfinance plans to set up small bank; Q3 net doubles

SKS Microfinance reported nearly two-fold increase in net profit at Rs 41.1 crore for October-December quarter and also said it will seek licence from RBI for setting up a small finance bank.

SKS Microfinance  reported nearly two-fold increase in net profit at Rs 41.1 crore for October-December quarter and also said it will seek licence from RBI for setting up a small finance bank.

The city-headquartered micro lender said its board of directors has approved a proposal to apply for small finance bank licence. "The board of directors of SKS Microfinance approved the company's proposal for making an application to the Reserve Bank of India for grant of a small finance bank licence," the only-listed microfinance institution in the country said in a statement. 

Meanwhile, the company said its profit after tax for the quarter ended December 31, 2014 stood at Rs 41.1 crore as against Rs 21.4 crore in the same period last year. The net interest income was at Rs 96 crore during the quarter under discussion, up from Rs 68 crore in Q3 FY14. Its portfolio, excluding Andhra Pradesh and Telangana, their key markets, registered a 35 percent year-on-year increase to Rs 3,195 crore from Rs 2,364 crore in Q3 FY14 (5 percent quarter-on-quarter growth from Rs 3,043 crore in Q2 FY15)," SKS said.

In the October-December period, loan disbursements stood at Rs 1,544 crore, up from Rs 1,399 crore in the third quarter of 2013-14. As of December 31, 2014, SKS Microfinance had a net worth of Rs 998 crore and capital adequacy of 34.6 percent (without the RBI dispensation on the Andhra Pradesh and Telangana provisioning). Cash and cash equivalents stood at Rs 746 crore.

The un-availed deferred tax benefit of Rs 506 crore will be available to offset tax on future taxable income, the statement added.

SKS Microfin stock price

On January 30, 2015, at 14:14 hrs SKS Microfinance was quoting at Rs 438.00, up Rs 12.05, or 2.83 percent. The 52-week high of the share was Rs 475.75 and the 52-week low was Rs 169.30.

The company's trailing 12-month (TTM) EPS was at Rs 12.26 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 35.73. The latest book value of the company is Rs 37.84 per share. At current value, the price-to-book value of the company is 11.58.

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IDFC gets RBI nod to exempt 30% of loan book from SLR/CRR

Suruchi Jain of Morningstar is not surprised and says all banks should be subjected to the same rules. Hence, the exemption is 30 percent of the eligible loans for the first year, which is the same for all the banks, the following years it will be taken up to 50 percent and 60 percent of loans.

The Reserve Bank of India on Friday permitted  IDFC to exempt 30 percent of loan book from Statutory Liquidity Ratio (SLR)/ Cash Reserve Ratio (CRR). Most analysts had expected a 50-100 percent exemption.

In April last year, IDFC and Bandhan Financial Services Pvt bagged the licence from the RBI to set up a bank. IDFC board approved its plans to demerge its financial unit into a wholly-owned step-down subsidiary IDFC Bank Ltd last year.

Suruchi Jain of Morningstar is not surprised and says all banks should be subjected to the same rules. Hence, the exemption is 30 percent of the eligible loans for the first year, which is the same for all the banks, the following years it will be taken up to 50 percent and 60 percent of loans.

Below is the verbatim transcript of Suruchi Jain's interview with Ekta Batra and Latha Venkatesh on CNBC-TV18.

Ekta: Your thoughts and were you on the conference call and about the statutory liquidity ratio (SLR), cash reserve ratio (CRR) exemption if you can fill us in?

A: The exemption is 30 percent of the eligible loans for the first year and that's the same for all the banks and the following years it will be taken up to 50 percent and 60 percent of loans. So it's no different from any of the other banks.

Latha: So are you reworking your numbers?

A: So, what we had expected was that their rules will be the same as a bank because now they are a bank more than a Non-bank financial company (NBFC).

Latha: So, you're not disappointed?

A: No, we aren't.

Ekta: So, you wouldn't be changing your estimates on account of this, what would your estimates in terms of return on equity (ROEs) be?

A: So, our (ROEs) are rising in terms of it transferring to a bank and that's mainly because they can take up higher leverage and as a result while return on assets (ROAs) might temper down a bit, the (ROEs) will actually expand mainly because of the leverage factor.

IDFC stock price

On January 30, 2015, at 14:14 hrs IDFC was quoting at Rs 170.20, down Rs 0.45, or 0.26 percent. The 52-week high of the share was Rs 177.80 and the 52-week low was Rs 88.10.

The company's trailing 12-month (TTM) EPS was at Rs 10.10 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.85. The latest book value of the company is Rs 92.92 per share. At current value, the price-to-book value of the company is 1.83.

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Tata Power to buy Nelco's biz vertical for over Rs 8 cr

Acquisition of the UGS business will provide synergies to the existing business of Tata Power SED and has scope for growth and expansion, the filing said.

Tata Power  will acquire group firm Nelco 's defence business of Unattended Ground Sensors
(UGS) for about Rs 8.3 crore. For the "slump sale basis" deal, Tata Power has entered into a "binding understanding" with Nelco.

In a regulatory filing, the power utility said the consideration would be around Rs 8.3 crore. "The UGS business involves supply, installation and servicing of sensors for the Ministry of Defence.

After purchase, the UGS business would be housed in Tata Power's strategic engineering division, which is also a supplier of defence equipment and solutions. Acquisition of the UGS business will provide synergies to the existing business of Tata Power SED and has scope for
growth and expansion, the filing said.

"The takeover of Nelco's UGS business segment further enhances our presence in the defence segment and provides synergy and alignment in servicing the customers," it noted.

The transfer of the business is subject to approvals and consent of Defence authorities.

Tata Power stock price

On January 29, 2015, at 14:15 hrs Tata Power Company was quoting at Rs 87.60, down Rs 0.15, or 0.17 percent. The 52-week high of the share was Rs 115.25 and the 52-week low was Rs 68.95.

The company's trailing 12-month (TTM) EPS was at Rs 3.32 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 26.39. The latest book value of the company is Rs 52.69 per share. At current value, the price-to-book value of the company is 1.66.

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Idea, Voda may not bid in 2100 MhZ auction: PhillipCap

The Cabinet on Wednesday fixed a base price of Rs 3705 crore per Mhz for the 2100 Mhz band for the upcoming spectrum auctions. The Cabinet accepted the Telecom Commission's recommendation to price the 3G spectrum at that price, 36 percent higher than suggested by the Telecom Regulatory Authority of India (Trai).

Naveen Kulkarni, co-head of research at PhillipCapital says the price ofcourse is high, but it is on expected lines.

He does not think  Idea Cellular and Vodafone will bid aggressively for the 2100 MhZ band.  Bharti will be active in the space, he adds. "Idea has a huge retention bidding coming up in the 900 MhZ band in around nine major circles," he explains.

Besides the 2100 Mhz band, the government will auction 103.75 Mhz of spectrum in the 800 Mhz band, 177.8 Mhz in the 900 Mhz wavelength and 99.2 Mhz of 1,800 Mhz spectrum, in an auction.

He has a buy on Idea Cellular and Bharti Airtel.

Below is the verbatim transcript of Naveen Kulkarni's interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Latha: Do you think Idea Cellular and Bharti Airtel are going to get another knock today, is it bad news?

A: To some extent it is a very high price that is for sure but this was not something that was not expected. Sometime back Department of Telecommunications (DoT) had clearly said that they are looking at a price close to around Rs 3,900 crore and Telecom Regulatory Authority of India (Trai) has recommended Rs 2720 crore. However, mostly we have seen is that the reserve prices for all the bands have been significantly higher than what Trai had recommended. So, the market was expecting this a bit. So, I don't think so based on this news alone we should be looking at negative.

Latha: How might it ultimately sell?

A: If I were to look at the 900 MHz - so that is more favourable band both for 3G as well as 2G services because of the wave propagation characteristics. So 900 MHz is for pan-India is around Rs 5,200 crore currently and this is at Rs 3,700 crore. So there will be a mix and match between 2100 MHz and 900 MHz there will be choices that people will make.

Considering the reserve price are Rs 3,700 crore, the biding will not be very aggressive because there will not be so many takers. So it depends on the supply and demand scenario. So for 900 MHz there are 3 to 4 players because Idea has to retain its circle, Vodafone has to retain its circle, Bharti will be aggressive in some of its circles. However, incase of 2100 MHz may be Idea and Vodafone may not participate aggressively.

Sonia: In how many circles does Idea need 3G spectrum currently and how much are you penciling in terms of cost for Idea for the 2100 MHz?

A: Incase of Idea Cellular currently they have 3G spectrum in 11 circles. They will have to buy out in 11 more circles but the point is that I do not think that Idea Cellular will be able to participate for 3G spectrum this time because they have a huge 900 MHz retention auction coming up which is essentially 9 circles. All the 9 circles are their core circles except for lets say Karnataka which is not very big for them.

All the 8 circles are pretty big, they account for almost around 75 percent of the revenues for the company. Retaining those circles will be a huge task. Out of those 8 circles, 2 are a must because they do not have back up spectrum there. So, it is going to be a very tricky auction for Idea Cellular. I do not think so they will be able to participate for 2100 MHz, mostly Bharti will be very active there.

Sonia: So, they may not participate but how are they placed with in terms of cash to bid for these auctions?

A: Every company in telecom will have to borrow. Nobody has got piles of cash reserves. However they have taken approval of around Rs 25,000 crore for their debt ceiling so they can borrow another Rs 10,000-12,000 crore more. Apart from that the government norms are that they have to pay upfront 25 percent, remaining 75 percent can be paid after a moratorium period of two years. So that funding facilities is still available. So, it is not so much from a cash flow perspective but eventually it is the debt either it is government debt or you borrow it from banks anyway it is going to be a debt.

Latha: Is your company recommending a buy on any of these shares?

A: We have a buy on Idea Cellular as well as Bharti, reason being there is still lot of value in both these stocks. This is the biggest auction for Idea Cellular. In this auction, more or less everybody is expecting that Idea will have to spend in the range of Rs 18,000 to 20,000 crore. That much amount they should be able to retain all their circles, but may be not buy additional spectrum for improving their 3G footprint.

However, once we are done with these things, Idea will have more fire power in terms of launching more data products in the market and then this big overhang is done with, the stock should start performing again. Then it goes back again to the core operating performance which has been very strong for Idea Cellular over the last so many years.

Latha: So target price

A: Our target price is Rs 200.

Latha: You have a buy on Bharti? If yes what is the target price there

A: We have a buy on Bharti and the target price is Rs 550.

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Well-placed to renew existing spectrum in 900 MHz: Idea

On cash availability, Himanshu Kapania, MD of Idea Cellular says the company is well-placed to renew existing spectrums in 900 MHz band. In its Q3 results, the company reported cash profit of around Rs 2,000 plus crore. Next year it expects to generate Rs 10,000 crore cash profit.

Idea  will bid for spectrum in the upcoming auction, but with the same prudence it has done in the past, Himanshu Kapania, MD of Idea Cellular told CNBC-TV18. The company spent Rs 18,000 in the last three auctions.

On cash availability, Kapania says Idea is well-placed to renew existing spectrums in 900 MHz band. In its third quarter results, the company reported cash profit of around Rs 2,000 plus crore. Next year it expects to generate Rs 10,000 crore cash profit.

Idea has a huge retention bidding coming up in the 900 MHz band in around nine major circles.

The company has reduced its debt by Rs 8,000 crore since April 2014 and its net debt/EBITDA stands at 1.12x, one of the lowest in the industry, he adds.

Declining to get into a debate on whether this year's auctions will be aggressive or not, he says the current debt of the industry stands at Rs 2.7 lakh crore.

Kapania believes the cost structure of the industry is undergoing a change and consolidation is inevitable due to high cost of entry.

After the company came out with its Q3 numbers, JP Morgan noted that Idea's EBITDA margin beat was driven primarily by lower-than-estimated network operating costs. "Very strong data consumption growth continues and solely drives blended ARPU growth. However, data pricing needs watching in CY15/16," it added.

JP Morgan believes Idea has the most at stake in the upcoming spectrum auction (900 MHz).

In its base case, Morgan Stanley assumes that operators will fill gaps in their existing 3G portfolios by acquiring spectrum in the 2100MHz band. According to the brokerage house, Idea valuation will be impacted by -2.3 percent, Bharti Airtel by -0.2 percent. It forecasts 2100MHz spectrum cost rising to Rs 7970 crore for Idea (from Rs 7330 crore) and to Rs 6210 crore for Bharti (from Rs 5710 crore).

For Idea, MS continues to assume that it will not purchase additional 3G spectrum in the Delhi circle, where they plan to launch 3G services on the 900MH band.

Idea Cellular stock price

On January 29, 2015, at 14:10 hrs Idea Cellular was quoting at Rs 160.20, down Rs 5.8, or 3.49 percent. The 52-week high of the share was Rs 177.30 and the 52-week low was Rs 125.10.

The company's trailing 12-month (TTM) EPS was at Rs 6.89 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 23.25. The latest book value of the company is Rs 44.09 per share. At current value, the price-to-book value of the company is 3.63.

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Zomato acquires Turkey based Mekanist in all cash deal

Zomato's restaurant coverage will increase from about 27,500 restaurants in Istanbul and Ankara to more than 50,000 restaurants across Turkey.

Online restaurant guide Zomato has acquired Turkey's popular restaurant research service firm Mekanist in an all cash deal for an undisclosed sum.

Post this acquisition Zomato's restaurant coverage will increase from about 27,500 restaurants in Istanbul and Ankara to more than 50,000 restaurants across Turkey.

Commenting on the development, Zomato Founder and CEO Deepinder Goyal, said, "Mekanist has established itself as one of the heavyweights in the online restaurant search and discovery space in Turkey. We're excited to be joining forces with them as we continue to grow in one of our most important markets." On being asked how the company plans to raise funds for the acquisition Goyal said, "We already had the money. Mekanist is one of the earliest and most successful service player to emerge from the Turkish startup ecosystem, and we're excited about them becoming a part of Zomato," he added.

The two teams will be working closely over the coming months to integrate Mekanist into Zomato. All of Mekanist's traffic and restaurant-related content will move to Zomato, and Mekanist app users will be able to use the Zomato app, Zomato said. 

"With the power of Zomato, we will now be able to offer dinners in Turkey in even wider range of restaurants to choose from," Mekanist Co-founder and CEO Ali Servet Ey'boglu said. This is a big win for restaurant owners, as they will benefit hugely from Zomato's business-focused features, he added. This is Zomato's seventh acquisition in the past six months, having acquired Urbanspoon for USD 52 million to enter the US and Australia markets only a couple of weeks ago.

Zomato recently also acquired local dominant restaurant search players in New Zealand, Poland, the Czech Republic, Slovakia and Italy.

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SBI to raise Rs 15,000 crore through public issue

State Bank of India (SBI) will raise Rs 15,000 crore through a public offer including rights issue to fund business and meet global capital adequacy norms.

State Bank of India (SBI)  will raise Rs 15,000 crore through a public offer including rights issue to fund business and meet global capital adequacy norms.

"The committee of the Directors for capital raising has decided to seek government or RBI approval for raising capital up to Rs 15,000 crore by way public issue...," SBI said in a statement.

The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy, it said.

The fund, SBI said ,would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, Global Depository Receipt, American Depository Receipt or combination of these.

The move comes in the backdrop of the Cabinet permitting banks to lower the government holding from 58 percent to 52 percent enabling lenders to raise funds from the market to meet Basel III norms.

The government of India holds 58.60 cent stake in the bank. 

Shares of the country's largest lender were trading at 331.40 per unit, up 0.49 per cent.

Last year, the bank raised Rs 8,032 crore by selling shares through the qualified institutional placement route to fund its business growth. Besides, the government infused Rs 2,000 crore capital in the bank during the last fiscal. 

For the current fiscal, the government has earmarked Rs 11,200 crore for capital infusion in various public sector banks including SBI. The disbursement may take place during this quarter.

The statement further said that the quantum and mode, number of tranches, price or prices, discount or premium, reservations to employees, customers, existing shareholders will be decided by the board at a later date.

SBI had raised over Rs 16,000 crore through a rights issue in 2008. In the last SBI rights issue, the government contribution was in the form of bonds to the bank instead of cash.

SBI stock price

On January 28, 2015, at 14:12 hrs State Bank of India was quoting at Rs 334.55, up Rs 4.75, or 1.44 percent. The 52-week high of the share was Rs 2977.85 and the 52-week low was Rs 287.20.

The company's trailing 12-month (TTM) EPS was at Rs 15.70 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 21.31. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 2.11.

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CCEA to decide on HDFC Bank, Lupin FDI proposals today

HDFC Bank is planning to raise Rs 10,000 crore from foreign investors and Lupin is planning to raise FDI limit in the company to 49 percent

The Cabinet Committee on Economic Affairs will take up HDFC Bank's and Lupin's FDI proposals today, sources told CNBC-TV18.

HDFC Bank  is planning to raise Rs 10,000 crore from foreign investors and  Lupin is planning to raise FDI limit in the company to 49 percent.

The Foreign Investment Promotion Board had cleared HDFC Bank's proposal in December and had cleared Lupin's FDI proposal in November.

HDFC Bank stock price

On January 28, 2015, at 14:15 hrs HDFC Bank was quoting at Rs 1066.00, down Rs 8, or 0.74 percent. The 52-week high of the share was Rs 1093.00 and the 52-week low was Rs 618.00.

The company's trailing 12-month (TTM) EPS was at Rs 38.33 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 27.81. The latest book value of the company is Rs 179.87 per share. At current value, the price-to-book value of the company is 5.93.

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See no material benefit on sugar export sops: Sakthi Sugars

The food ministry has cleared the proposal of raw sugar export subsidy of Rs 560 crore and the Cabinet will be taking a call on the same next week.

The food ministry has cleared the proposal of raw sugar export subsidy of Rs 560 crore and the Cabinet will be taking a call on the same next week.

In an interview to CNBC-TV18, M Manickam, executive vice chairman, Sakthi Sugars , says the company will see no material benefit on the sops.

Manickam further adds that the subsidy will merely make raw sugar exports viable, not profitable.

The raw sugar export subsidy is at Rs 4,000 per tonne upto 14 lakh tonne for current sugar season.

Below is the verbatim transcript of M Manickam's interview with CNBC-TV18's Sonia Shenoy and Reema Tendulkar

Sonia: We were speaking with the management of Renuka Sugars a while back and they indicated that the big benefit will be on domestic sugar prices. So, domestic sugar prices are expected to rise and then there is that drought in Brazil as well that will keep prices higher. What to your mind is the movement that we can expect on sugar prices because of this news flow?

A: Again this depends on the world market prices now and we are trying to match the  domestic prices and the world market prices but the fact remains that domestic industry needs about Rs 34-35 to break even and we are at Rs 26-27. So, until there are some concrete steps to support the price I don't see a major upside but this will help the surplus sugar going out of the market to a certain extent.

Sakthi Sugars stock price

On January 28, 2015, at 14:14 hrs Sakthi Sugars was quoting at Rs 16.40, down Rs 0.7, or 4.09 percent. The 52-week high of the share was Rs 27.45 and the 52-week low was Rs 12.35.

The latest book value of the company is Rs 47.15 per share. At current value, the price-to-book value of the company was 0.35.

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Gammon to buy Sadbhav's 20% in Mum-Nasik E-way for Rs 72 cr

Discussing the details of the deal, Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.

Gammon Infra  is set to acquire Sadbhav Engineering 's 20 percent stake in Mumbai-Nasik Expressway for Rs 72 crore. The company already owns the majority 80 percent in the BOT project.

Discussing the details of the deal, Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.

"As far as funding is concerned, it will be mostly through internal accruals but our monetization option in different operational projects is possible," Mohanty said, adding that the company is also on the verge of completing three more projects in the next couple of months, which will give it a little headroom for "financial manoeuvring".

Below is the transcript of Kishor Kumar Mohanty's interview with Sonia Shenoy & Reema Tendulkar on CNBC-TV18.

Reema: What prompted this move and how will you be funding it?

A: It makes an investment sense for both the parties because they were minority stakeholder and we are the majority stakeholder with 80 percent. Therefore, minority stakeholder merging with majority stakeholder – will be a value up gradation for us, so it will give us arbitrage of economic value in the project and that's the primary reason for which we have taken. This is operational project, marquee project. In last two months' time the traffic is already showing a positive sign, so it makes sense for us. 

As far as funding is concerned, mostly it will be from the internal accruals but our monetisation options in different operational projects are possible. We are also on the verge of completing three more projects in the next couple of months' time and that will give us a little headroom for financial manoeuvring.

Gammon Infra stock price

On January 28, 2015, at 14:09 hrs Gammon Infrastructure Projects was quoting at Rs 15.45, up Rs 0.25, or 1.64 percent. The 52-week high of the share was Rs 20.85 and the 52-week low was Rs 6.60.

The latest book value of the company is Rs 7.16 per share. At current value, the price-to-book value of the company was 2.16.

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Ranbaxy forfeits 180 days exclusivity for stomach drugs

Drug major Ranbaxy today said that the US health regulator has "determined" that the Indian drug manufacturer has forfeited its 180 days exclusivity for stomach and esophagus problems treatment tablets.

Drug major Ranbaxy  today said that the US health regulator has "determined" that the Indian drug manufacturer has forfeited its 180 days exclusivity for stomach and esophagus problems treatment tablets.

"We have now received a communication from US FDA that they have determined that Ranbaxy has forfeited its 180 days exclusivity for esomeprazole magnesium delayed-release capsules," the company said in a BSE filing.

Esomeprazole is used for treatment of certain stomach and esophagus problems such as acid reflux and ulcers. 

Ranbaxy said it "is disappointed with the result and is pursuing all available legal options to preserve its rights."

In November 2014, US FDA revoked its tentative approvals for Ranbaxy's generic anti-viral drug valganciclovir hydrochloride and esomeprazole magnesium delayed-release capsules 20 mg and 40 mg.

In November, the communication from US Food and Drug Administration (USFDA) said that Ranbaxy's abbreviated new drug application (ANDAs) of concern did not have any data integrity issues.

However it added that "its original decisions granting tentative approvals were in error because of the compliance status of the facilities referenced in the ANDAs at the time the tentative approvals were granted."

Shares of Ranbaxy were trading at Rs 700.15 apiece, down 0.86 per cent from its previous close on the BSE.

Ranbaxy Labs stock price

On January 27, 2015, at 14:14 hrs Ranbaxy Laboratories was quoting at Rs 696.85, down Rs 9.4, or 1.33 percent. The 52-week high of the share was Rs 714.20 and the 52-week low was Rs 306.05.

The company's trailing 12-month (TTM) EPS was at Rs 20.91 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 33.33. The latest book value of the company is Rs 25.82 per share. At current value, the price-to-book value of the company is 26.99.

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Gayatri Projects to aggressively bid for NHAI orders: MD

The total orderbook for Gayatri Projects at the end of December quarter is around Rs 6000 crore, said managing director, TV Sandeep Reddy.

The total orderbook at the end of December quarter is around Rs 6000 crore.

TV Sandeep Reddy

MD

Gayatri Projects

TV Sandeep Reddy, managing director,  Gayatri Projects in an interview to CNBC-TV18 spoke about the recent order win worth Rs 119 crore from Government of Chattishgarh, PWD.

The order forms part of Government of India and Asian Development Bank (ADB) agreement. It is two-lane road project for which the execution will start immediately, he added.

The total orderbook at the end of December quarter is around Rs 6000 crore, said Reddy.

When asked if they had more orders in the offing, he said  NHAI has come out with bids worth Rs 10,000 crore for which the company plans to bid aggressively. The tender dates would start from first week of February till March, he added.

Gayatri Projects Ltd. is the flagship company of the esteemed and well diversified Gayatri Group that has interests in infrastructure, power, hospitality, real estate and industry. With an annual turnover of Rs.1812.53 crores, net worth of Rs.635.74 crores and total assets of Rs.3318.83 crore on a Standalone basis in FY14, it is one of India's leading infrastructure players.

Gayatri Project stock price

On January 27, 2015, at 14:14 hrs Gayatri Projects was quoting at Rs 175.45, up Rs 0.30, or 0.17 percent. The 52-week high of the share was Rs 192.00 and the 52-week low was Rs 49.50.

The company's trailing 12-month (TTM) EPS was at Rs 6.95 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 25.24. The latest book value of the company is Rs 220.32 per share. At current value, the price-to-book value of the company is 0.80.

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Eye Rs 2500 debt by next yr; pre-sales to improve: HDIL

Hariprakash Pandey, CFO, HDIL says the company saw the strongest Q3FY15 pre-sales in three years.

HDIL  has gained over 3 percent post an upgrade by brokerage house Macquarie. The brokerage has upgraded the stock to outperform from underperform.

Speaking to CNBC-TV18 Hariprakash Pandey, CFO, HDIL says the company is on a purple patch as it has seen the strongest Q3FY15 pre-sales in three years.

" We have an average run rate of Rs 400 crore pre sales per quarter. With our execution back on full scale and hopefully interest rates being low, we aim to deliver pre sales of Rs 500 crore per quarter soon," he adds.

The company has significantly pared its debt from Rs 4100 crore last year to Rs 3200 crore.

"We are also looking to cut it to Rs 2500-2600 crore in the next one year. We expect the sales momentum to aid this leveraging," he further adds.

Transcript to follow soon.

HDIL stock price

On January 27, 2015, at 14:12 hrs Housing Development and Infrastructure was quoting at Rs 84.35, up Rs 4.50, or 5.64 percent. The 52-week high of the share was Rs 113.85 and the 52-week low was Rs 38.70.

The company's trailing 12-month (TTM) EPS was at Rs 7.02 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 12.02. The latest book value of the company is Rs 248.81 per share. At current value, the price-to-book value of the company is 0.34.

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Johnson to buy 25.74% stake in Hitachi via open offer

Johnson Controls said it would acquire little over 70,00,990 shares at an offer price of Rs 821.38 per share amounting to Rs 575.04 crore

Johnson Controls plans to acquire 25.74 percent stake in  Hitachi Home & Life Solutions (India) Ltd through an open offer for an estimated price of Rs 575 crore.

In a public announcement to Hitachi's shareholders, Johnson Controls said it would acquire little over 70,00,990 shares at an offer price of Rs 821.38 per share amounting to Rs 575.04 crore.

In a BSE filing, the company has proposed to launch open offer to acquire "up to 70,00,990 fully paid-up equity shares of face value of Rs 10 each of the target company representing 25.74 percent of fully diluted voting equity share capital."

Last week, Johnson Controls and Hitachi Appliances had entered into a definitive agreement to form a global joint venture (JV) for heating, air conditioning, ventilation and refrigeration (HVAC).

Post completion of the open offer, the JV company, either directly or through one or more subsidiaries, will hold 74.25 percent of the target company, the company added. As per the agreement, Johnson Controls will obtain a 60 percent ownership in Hitachi Appliances. The deal excludes sales and service operations in Japan.

Hitachi Appliances will continue to provide Hitachi branded HVAC products in the Japanese market after this transaction, the company said in a statement.

The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.

Hitachi Home stock price

On January 27, 2015, at 14:13 hrs Hitachi Home & Life Solutions was quoting at Rs 1062.00, down Rs 73.8, or 6.5 percent. The 52-week high of the share was Rs 1307.00 and the 52-week low was Rs 129.05.

The company's trailing 12-month (TTM) EPS was at Rs 19.51 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 54.43. The latest book value of the company is Rs 88.27 per share. At current value, the price-to-book value of the company is 12.03.

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AirAsia CEO calls for single aviation authority in ASEAN

Tony Fernandes, the Indian-origin founder and CEO of the AirAsia group, has called for a single aviation authority to approve licences to operate in 10 Southeast Asian nations, an issue that assumed significance after the deadly crash of the group's Flight QZ8501. He, however, dismissed any lack of harmony that could have led to the accident on December 28 that killed all 162 people on board. "I don't think the non-harmonisation led to the accident.

But I think having one aviation authority improves standards for everybody and makes it easier for businesses to operate. And I think that goes across not just aviation, (but) across everything. "If ASEAN is to be a common market, investors have to see us as a common market, which means one approving authority - you get one license to operate inten countries.

I point that as a point from aviation," Fernandes told Channel NewsAsia at the sidelines of the World Economic Forum here. Association of Southeast Asian Nations (ASEAN) currently has no regional agencies overseeing aviation safety, or coordinating air traffic control - issues that have come to the forefront since the crash of the Airbus A320-200. Fernandes, 50, insisted ASEAN has the ability to set world standards, the report said today.

"So if we are going to have an ASEAN aviation authority and an ASEAN banking authority, they should be based on the very best standards. And that makes our companies able to compete globally as well," he said. Talking about recovery efforts in the Java Sea, where the doomed plane ended, Fernandes said AirAsia's primary concern was the affected families and recovery of bodies.

He said it was too early to know what caused the mysterious crash but assured steps would be taken to improve the services. "Everything has been certified, everything has been run by Airbus in the past. But we are not waiting for the investigation; we are looking to see what we can improve straight away," he added.

The Flight QZ8501, en route from Indonesia's Surabaya city to Singapore, ended in the choppy waters half way into a two-hour flight, minutes after it encountered difficulties from an approaching storm. Multi-national efforts have succeeded in retrieving 70 bodies besides the crucial black box recorders, expected to give details about the final moments of the ill-fated flight. In India, the AirAsia group launched services in June last year in partnership with the Tata group and Arun Bhatia's Telestra TradePlace.

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Swiss banks lose sheen amid Indians as secrecy about to end

In a major departure from their earlier practice of luring wealthy clients in the name of 'safe havens', Swiss bankers were seen pitching their 'superior banking' services to their prospective clients during the just-ended WEF summit

With the Swiss government showing eagerness to help India trace suspected black money hoarders, banks based in Switzerland appear to be losing traction among the wealthy Indian clients and could not get much business commitments during the just-ended WEF summit. In a major departure from their earlier practice of luring wealthy clients in the name of 'safe havens', Swiss bankers were seen pitching their 'superior banking' services to their prospective clients, but Indian corporate leaders did not appear much impressed. Nonetheless, a large number of Indians present here at Davos had scheduled meetings with bankers and top executives of various small and large Swiss banks.

Many of them, however, claimed these meetings were about the corporate banking related requirements rather than for the 'personal wealth management' services. The annual WEF meeting in this Swiss ski resort town has always been a perfect place for the bankers from Switzerland-based financial institutions to sign up new clients or get new business from their existing customers, including those from India. However, a global crackdown against secrecy walls of Swiss banks, as also continuing attempts by Indian authorities to bring to task those suspected to have stashed black money in Switzerland-based banks, appear to be bearing fruit -- at least with regard to the dealings related to Indians' funds finding their way to banks in this Alpine country.

Earlier on the sidelines of WEF summit, Switzerland assured India of full cooperation on tax information exchange and agreed to discuss the issue of black money stashed in Swiss banks. "We had an excellent meeting. There are opportunities for a lot of cooperation with India," Swiss Finance Minister Eveline Widmer-Schlumpf said.

Indian Finance Minister Arun Jaitley said Switzerland has agreed to share information expeditiously on black money cases where independent evidence is furnished and said automatic exchange of details would help in curbing the menace of illicit funds. "Now we do have independent evidence and material available. So, now we have to come back to Switzerland with that material on the basis of which we can get (the information)," the Finance Minister said.

According to Jaitley, Switzerland has assured that on the basis of such independent information "they will cooperate". A number of corporate leaders and some Swiss bankers said here discussions between them were not focussed on providing 'safe haven' to funds, but rather clients are being promised better banking services than anywhere else in the world. The change in approach, however, was not being received well by the Indians looking to do business with Swiss banks, as 'better services' can be availed in various other parts of the world and the main attraction for Switzerland had alway remained the 'safe haven' tag.
On condition of anonymity, some attendees of WEF summit said bankers were also pitching for arranging 'business deals' to mask the flow of black money, but such banks are very few as of now.

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Persistent bullish on growth; to hire 1,500 next fiscal

In 2014, it had made a net addition of nearly 700 employees and the total headcount currently stands at 8,296

Mid-sized software products firm, Persistent Systems , is targeting to hire 1,500 people next fiscal as it sees a steady surge in demand from key markets. "We will be needing 1,500 more people next fiscal," the Pune-headquartered company's CMD Anand Deshpande told PTI over the weekend, saying the company is positive about the business environment. He, however, added that the company decides on lateral hirings on a monthly basis.

In 2014, it had made a net addition of nearly 700 employees and the total headcount currently stands at 8,296. The company had posted a net profit of Rs 74.46 crore for the December quarter which is 16 per cent higher than in the same period last fiscal and 4.4 per cent higher than the preceding September quarter. The revenue for the quarter rose 6.6 per cent over the preceding quarter at Rs 494.6 crore.

Deshpande said this is an encouraging development, given the very low growth observed in the third quarter over the last four years. He said the company expects the same growth momentum to continue and exuded confidence about the next fiscal as well. The higher amount of work done during December quarter led to the utilisation rate surging by over 3 percentage points in as many months to over 74 per cent but Deshpande said this will come down once the trainees start joining.

"There is nothing unusual, new business is coming and we utilised the bench better. The number will move up next quarter but will go down as the new employees join," he said. When asked about the reported layoffs of middle-level staff at  TCS and other rivals and if Persistent would be interested in hiring them, Deshpande said, "If we find good people, we will look at them." However, he clarified that the business in which TCS is engaged is different from what Persistent does.

Deshpande also came out in support of laying-off people who are not delivering, saying performance should be continuously monitored. During the December quarter, there was an almost Rs 5 crore increase over September quarter in its marketing expenses at Rs 46.53 crore which was one of the reasons that trimmed its operating margin to 20.1 per cent. Deshpande said the company is focusing on serving non-IT businesses which resulted in fatter spends, adding that this will continue at the same elevated level.

Apart from that, Rs 5 crore increase in employee benefits due to recalculation of gratuity and other retirement benefits and a dip in forex gains to Rs 12.9 crore as against Rs 15.5 crore in the year-ago period, also impacted the margin.

Persistent stock price

On January 23, 2015, Persistent Systems closed at Rs 1836.80, down Rs 3.45, or 0.19 percent. The 52-week high of the share was Rs 1921.65 and the 52-week low was Rs 887.15.

The company's trailing 12-month (TTM) EPS was at Rs 61.33 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 29.95. The latest book value of the company is Rs 300.47 per share. At current value, the price-to-book value of the company is 6.11.

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Sun Pharma chief expects Ranbaxy deal to be done by mid-Feb

Drug major Sun Pharma's top executive Dilip S Shanghvi expects the USD 4-billion Ranbaxy deal to be concluded by middle of next month while stating that the key challenge before the combined entity would be to rebuild the confidence of health regulators.

Drug major Sun Pharma 's top executive Dilip S Shanghvi expects the USD 4-billion Ranbaxy deal to be concluded by middle of next month while stating that the key challenge before the combined entity would be to rebuild the confidence of health regulators. "I think Punjab and Haryana High Court will hear the issue of merger on February 2. Once we get the approval (from the court), then it will take a few more days.

We need to meet certain company laws. So, hopefully by middle of February we should be able to close the deal," Sun Pharma Managing Director Dilip S Shanghvi told reporters here. "Of course... I think more than anything else the ability to regain the confidence and trust of the regulator is the most important challenge for us," he said when asked about the USFDA ban on Ranbaxy facilities.

The FDA has imposed a ban on the drugs produced at Ranbaxy 's plants in India to the US. Later the company faced overseas troubles in Europe where it has been barred from exporting certain antibiotics produced at its Dewas plant to Germany for non-compliance to 'good manufacturing practices' norms by German health regulator.

"If this merger happens by February then we will announce result of the combined entity for fourth quarter," Shanghvi said on the sidelines of release of a book by founder of  Dr Reddy's Laboratories Late Dr K Anji Reddy 'An Unfinished Agenda: My Life in the Pharmaceutical Industry'. In April last year, Sun Pharma and Ranbaxy had announced that they entered into definitive agreements pursuant to which Sun Pharma will acquire 100 per cent of Ranbaxy in an all-stock transaction in a USD 4-billion deal. Sun Pharma had earlier said it would try to leverage Ranbaxy's strong presence in some of the geographies where it was not present.

Recently in a joint statement, the two firms had said that they have received the CCI order where acquisition of Ranbaxy by Sun Pharma has been approved "subject to compliance with certain conditions". The country's competition regulator, which has ordered Ranbaxy to sell six products and Sun Pharma to divest one, had said it would also appoint a monitoring committee to oversee compliance to the conditions put forth by it to ensure that the merger does not hit competition.

Sun Pharma stock price

On January 23, 2015, Sun Pharmaceutical Industries closed at Rs 923.75, up Rs 5.40, or 0.59 percent. The 52-week high of the share was Rs 938.90 and the 52-week low was Rs 552.50.

The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 25.82.

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Jet seeks nod to raise $300mn through bond sale to Etihad

Jet Airways has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

Jet Airways  has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

UAE-based Etihad Airways PJSC holds 24 percent stake in the domestic carrier.

Jet Airways plans to raise up to USD 300 million through the issue of securities to Etihad, according to a postal ballot notice sent to its shareholders seeking their approval for the proposal. 

It has sought nod "to offer, issue and allot secured and/ or unsecured, listed and/or unlisted non-convertible debentures and/or subordinated debt instruments and/or other debt securities or bonds for an aggregate value of up to USD 300 million on a private placement basis to Etihad Airways...", the notice said.

During the quarter ended September 2014, Jet Airways had reported 96 percent reduction in net losses on a one-time income by way of sale of JPmiles to Etihad. The Rs 305 crore income from sale of its loyalty programme to equity partner Etihad helped Jet slash losses by 95.7 percent to Rs 43 crore.

It had reported a whopping Rs 999 crore net loss in the same period a year ago. Shares of the company closed marginally down at Rs 434.85 on the BSE.

Jet Airways stock price

On January 23, 2015, Jet Airways closed at Rs 434.85, down Rs 1.65, or 0.38 percent. The 52-week high of the share was Rs 474.95 and the 52-week low was Rs 203.50.

The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -2.22.

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Coal scam: CBI registers fresh case against Hindalco

CBI has registered a fresh case in the coal block allocation scam against Indal (now Hindalco , Aditya Birla group) in connection with the allocation of Talabira-I coal block, twenty years ago.

The agency today carried out search operations at four places including one in Mumbai and three places in Sambalpur, Odisha after registering the case, CBI sources said. It is alleged that the coal was used by the company in an unauthorised manner in the existing power plant whereas the allocation was done for expanding the capacity of new power plant, the sources said.

The agency has also alleged that mining was started by the company wihout obtaining the mandatory permission. The sources said agency has named Indal (now Hindalco) and unknown public servants in connection with the case.

Public servants, the agency alleged, facilitated the illegal operations by not taking action against unauthorised use despite their knowledge.

Talabira-I coal block in IB valley in Odisha, with nearly 22.55 million tonnes of geological reserves, was allotted to Indal on February 25, 1994. "In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira-I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," the Aditya Birla group spokesperson said.

The company is already facing probe in the Talabira-II coal block in which CBI has recently examined former Prime Minister Manmohan Singh, his Principal Secretary TKA Nair besides head of Aditya Birla Group Kumar Mangalam Birla.

The agency had filed a closure report in the allocation of Talabira-II which has been rejected by the Special Court which directed CBI to re-investigate the matter.

Responding to the development, Hindalco said: "As is known the CBI has been investigating coal block allocations made since 1993, under the monitoring of the Supreme Court. With regard to allocation of 15% share to Hindalco in Talabira II & III coal mine, the CBI has already filed their closure report."

"In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," it added.

Already, the Supreme Court has cancelled the allocation of 204 coal mines to all the respective companies. The mines will be auctioned as announced by the Ministry of Coal.

Hindalco stock price

On January 23, 2015, Hindalco Industries closed at Rs 144.75, up Rs 1.15, or 0.80 percent. The 52-week high of the share was Rs 198.70 and the 52-week low was Rs 96.95.

The company's trailing 12-month (TTM) EPS was at Rs 4.79 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 30.22. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 0.81.

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Twitter acquires ZipDial for an undisclosed amount

Microblogging website Twitter was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

Microblogging website Twitter  was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

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Indian biz fantastic; one of APAC's pillar: DHL

The e-commerce boom in India has led to logistic companies making significant changes in their business models.Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the wordl's largest logistics company is coping with that change.

The e-commerce boom in India has led to logistic companies making significant changes in their business models. Apart from additional business, the largely B2B service providers now find themselves increasingly dealing with consumers and tackling issues faced by B2C companies. Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the world's largest logistics company is coping with that change.

Watch videos for more.

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Tata Motors launches Bolt; petrol version at Rs 4.65-6.35 L

Mayank Pareek, head of the company's passenger vehicle business said the prices were introductory and would be hiked soon

Moneycontrol Bureau

Tata Motors  Thursday announced the launch of its premium hatchback car, Bolt.
The petrol variant of the model will be priced at Rs 4.65-6.35 lakh in Mumbai and the diesel variant will be priced at Rs 5.75-7.32 lakh.

Briefing the media at the launch, Mayank Pareek, head of the company's passenger vehicle business said the prices were introductory and would be hiked soon. He said the Bolt has got 50,000 bookings so far.

He sees it cannibalizing sales of Zest, its sub-compact sedan launched in September last year, by 8-10 percent.

Pareek sees the Indian automobile industry growing less than 5 percent this year, and said the industry in general has been stagnant for the last three years.

Tata Motors stock price

On January 22, 2015, at 14:13 hrs Tata Motors was quoting at Rs 562.70, up Rs 11.30, or 2.05 percent. The 52-week high of the share was Rs 568.80 and the 52-week low was Rs 331.05.

The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company was 9.44.

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Emami acquires controlling stake in Fravin, Australia

FMCG major Emami has acquired controlling stake in Australia based Fravin Pty Ltd along with it's three subsidiaries for an undisclosed sum.

FMCG major  Emami has acquired controlling stake in Australia based Fravin Pty Ltd along with it's three subsidiaries for an undisclosed sum.

The acquisition of 66.67 percent stake in Fravin Pty Ltd, a firm manufacturing natural and organic personal care products, has been done by the company's arm Emami International FZE, Emami said in a statement.

Commenting on the development, Emami Director Harsh Agarwal said: "The Fravin acquisition is in sync with the Company's strategy to grow aggressively through both organic and inorganic routes in India and overseas."

This is a significant step for the organisation as the acquisition marks Emami's entry into organic personal care products where it was not present earlier, he added.

This international acquisition is in line with the company's strategy to be present in sectors with high growth potential, Emami said.

"The market for organic personal care products is growing at a rapid pace across the world. The global market for organic products which was over USD 7.6 billion in 2013, is expected to double in six years," Agarwal said.

Fravin will be a part of Emami's International business division, which contributes around 14 per cent to the total FMCG business. Emami has presence in over 60 countries across the world.

"We are very enthusiastic to be associated with a global company like Emami. There are strong synergies between the two companies. With Emami's strong marketing network and our R&D capabilities and advanced technologies, we expect to take Abache brands to new heights," Fravin Pty Ltd MD Peter Francis said.

Promoted by Peter Francis, the Fravin Group manufactures a full range of hair care and skin care products that are certified organic by various certification bodies in Australia and United States.

The group has R&D and manufacturing facility in Adelaide.

Emami stock price

On January 22, 2015, at 14:14 hrs Emami was quoting at Rs 887.20, up Rs 28.75, or 3.35 percent. The 52-week high of the share was Rs 930.05 and the 52-week low was Rs 421.00.

The company's trailing 12-month (TTM) EPS was at Rs 18.12 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 48.96. The latest book value of the company is Rs 40.92 per share. At current value, the price-to-book value of the company is 21.68.

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Hope to maintain growth of 28%: Allcargo Logistics

In an interview to CNBC-TV18, Shashi Kiran Shetty, executive chairman, Allcargo Logistics shares his views on the company's performance and his outlook for the upcoming quarters.

In an interview to CNBC-TV18, Shashi Kiran Shetty, executive chairman,  Allcargo Logistics shares his views on the company's performance and his outlook for the upcoming quarters.

Transcript to follow soon.

Allcargo stock price

On January 22, 2015, at 14:11 hrs Allcargo Logistics was quoting at Rs 336.50, up Rs 0.45, or 0.13 percent. The 52-week high of the share was Rs 357.90 and the 52-week low was Rs 123.00.

The company's trailing 12-month (TTM) EPS was at Rs 5.21 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 64.59. The latest book value of the company is Rs 96.46 per share. At current value, the price-to-book value of the company is 3.49.

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'If this continues, local steel industry will be wiped out'

In an interview with CNBC-TV18, Kalyani Steel  MD RK Goyal talked about the steel industry's demand that the government hike import duty.

He said that the government should introduce some sort of steep import duty so as to deter dumping of products from countries such as China. "We are expecting government should take some initiative and something should happen."

Below is the transcript of RK Goyal's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.

Anuj: Any update on your demand on import duty of steel products or do you believe that something like this could come in the Budget?

A: As of now there is nothing. We are expecting government should take some initiative and something should happen. Just for your information, particularly long products import has gone up by 550 percent in Q3 and in terms of volume it has gone up to the level of 450,000 tonnes in last quarter. On annualised basis it becomes 1.8 million tonne against the total demand of the industry around 4 million tonne and if this continues, I think the local industry will be wiped off.

Ekta: Can you tell us the reason for the surge in imports? Is it because of dumping that is taking place because of currency depreciation in say the ruble or maybe it is from China? Take us through the scenario.

A: Major imports are coming from China besides from various other countries including Europe, including Russia. The reason is that the economic situation or the slowdown in the growth in China -- since local demand in China is going down, they are trying to find out avenues to export that material and India is a good ground for them where there are practically no restrictions and a reasonable size market for them.

Ekta: How much of an import duty hike would you like to see and how much do you think it will protect the industry at this point in time?

A: I think a marginal increase in import duty from 9-10 percent will not affect Chinese because they will reduce the price further. We need to have some other trade barriers by which this entry of this material to the country is restricted.

Ekta: What would these other trade barriers be which you would possibly ask the government to implement and what might even be the progress on it?

A: The first and foremost will be whenever such surge in imports are there from any specific country, it can have safeguard duty, which can be implemented fairly fast and then the duty level will be something in the range of 30-50 percent. If such a thing happens, only then it will reduce the imports from China and in a longer period maybe in six months time anti-dumping duty on Chinese products for at least next five years.

Anuj: What is the situation domestically in terms of the iron ore situation?

A: As far as iron ore is concerned since the demand of steel is going down -- demand for iron ore is also little low but at the same time, prices are stable, quality is further deteriorating particularly in Karnataka and hence the cost to the manufacturer is higher.

Ekta: Wanted to focus on your company in general, what would be the impact or what is the impact of the dumping that is taking place with regards to long products etc right now which is happening specifically for Kalyani Steel?

A: Nothing is effecting on two counts. One is that the total demand in the market for local products is going down. Number two is that there is a very large pressure on prices. So we are also getting affected on both these accounts.

Ekta: What is the impact of this on domestic steel prices?

A: Every customer is asking for price reduction. As of now, we are holding it but I don't know how to respond or we will respond as the situation arises.

Ekta: How much has it seen a reduction by since the imports increased? Can you give us a sense in percentage?

A: As far as the volume part is concerned, the reduction is something between 10 percent and 50 percent from one company to another.

Ekta: The other one point that I wanted to bring up was basically the iron ore procurement, are you possibly going to look to import iron ore, what is the current domestic scenario looking like?

A: As of now, major imports to my understanding is being done by larger players like JSW Steel, Tata Steel and all. Our total requirement is very small so as long as we are getting material from e-auctions in Karnataka, we would like to do that but if there is a further surge in prices locally then we will resort to imports.

Ekta: What would your capacity utilisation be at currently?

A: Currently our capacity utilisation is around 70 percent.

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CNBC-TV18 Exclusive: Telenor eyeing stake in Tata Tele Svcs

Sources said Telenor, which is into communications, media and IT, may look to merge its Indian subsidiary with Tata Teleservices

Norway-based Telenor is doing a due diligence of Tata Teleservices to acquire a majority stake in the company, reports Kritika Saxena of CNBC-TV18, quoting unnamed sources.

The sources said Telenor, which is into communications, media and IT, may look to merge its Indian subsidiary with Tata Teleservices .

Telenor CEO Fredrik Baksaas is expected to come down to India for negotiations, the sources said.

Telenor was unavailable for comment, and a Tata Sons spokesperson said the company did not comment on such matters.

Last month, the RBI had allowed Tata Sons to buy out NTT Docomo's 26 percent in Tata Teleservices for USD 1.1 billion.

TataTeleservice stock price

On January 20, 2015, at 14:10 hrs Tata Teleservices (Maharashtra) was quoting at Rs 10.02, up Rs 0.76, or 8.21 percent. The 52-week high of the share was Rs 14.05 and the 52-week low was Rs 6.80.

The latest book value of the company is Rs -12.04 per share. At current value, the price-to-book value of the company was -0.83.

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Strides in licensing pact with Gilead Science for HIV drug

Under the pact, Gilead has extended non-exclusive rights to Strides to manufacture and distribute Under the pact, Gilead has extended non-exclusive rights to Strides to manufacture and distribute Tenofovir Alafenamide, both as a single agent product and in combination with other drugs.

Moneycontrol Bureau

Strides Arcolab  Limited on Tuesday announced a licensing agreement with Gilead Sciences, Inc for HIV drug Tenofovir Alafenamide (TAF).

Under the pact, Gilead has extended non-exclusive rights for Strides to manufacture and distribute TAF, both as a single agent product and in combination with other drugs, the Strides release said.

The license being granted to Strides extends to 112 countries, which together account for more than 30 million people living with HIV, the release said.

As part of the licensing agreement, pending U.S. Food and Drug administration (US FDA) approval of the Gilead product, Strides will receive a technology transfer from Gilead, enabling Strides to manufacture low-cost versions of TAF for developing countries, the Strides release said.

TAF is a novel nucleotide reverse transcriptase inhibitor that has demonstrated high antiviral efficacy at a dose 10 times lower than Gilead's Viread® (tenofovir disoproxil fumarate), as well as an improved renal and bone safety profile, the release said.

TAF and TAF-based regimens are investigational products in the United States and have not yet been determined safe or efficacious in humans, the release said.

Strides Arcolab stock price

On January 20, 2015, at 14:13 hrs Strides Arcolab was quoting at Rs 940.00, up Rs 13.55, or 1.46 percent. The 52-week high of the share was Rs 999.00 and the 52-week low was Rs 343.80.

The company's trailing 12-month (TTM) EPS was at Rs 645.04 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 1.46. The latest book value of the company is Rs 273.80 per share. At current value, the price-to-book value of the company is 3.43.

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Suven Life Sciences gets patents for neurodegenerative drug

The company said it has been granted one product patent from Australia, two product patents from Japan and one product patent from Hong Kong corresponding to the New Chemical Entity (NCE) for the treatment of disorders associated with Neurodegenerative diseases.

Pharmaceutical firm  Suven Life Sciences  has been granted four product patents, one each by Australia and Hong Kong and two by Japan for treatment of neurodegenerative diseases. Neurodegenerative diseases include Alzheimer's disease, Schizophrenia and Parkinson's disease.

In a BSE filing, the company said it has been "granted one product patent from Australia, two product patents from Japan and one product patent from Hong Kong corresponding to the New Chemical Entity (NCE) for the treatment of disorders associated with Neurodegenerative diseases." These patents are valid through 2030, the company said.

Suven Life Sciences CEO Venkat Jasti said: "We are very pleased by the grant of these patents to Suven for our pipeline of molecules in CNS (central nervous system) arena that are being developed for Major Depressive Disorder (MDD) with high unmet medical need with huge market potential globally." With these new patents, Suven has a total of 19 granted patents from Australia, 14 from Japan and 15 from Hong Kong.

Suven Life Sci stock price

On January 20, 2015, at 14:13 hrs Suven Life Sciences was quoting at Rs 217.65, up Rs 10.00, or 4.82 percent. The 52-week high of the share was Rs 236.50 and the 52-week low was Rs 67.50.

The company's trailing 12-month (TTM) EPS was at Rs 10.09 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 21.57. The latest book value of the company is Rs 20.86 per share. At current value, the price-to-book value of the company is 10.43.

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Twitter makes first Indian acquisition with startup ZipDial

Twitter has acquired Bengaluru- based mobile VAS firm ZipDial to mark its first acquisition in India, as the microblogging firm aims to expand its presence in one of world's largest Internet markets.

Though the deal size was not disclosed, reports suggest the monetary value is between USD 30-40 million (between Rs 185 crore-Rs 247 crore). The Indian startup, which was already working as a partner with Twitter, offers services like missed calls for user verification and alerts to its customers. 

"India is one of the fastest growing countries for us. We have been focussed on growing our audience here and this acquisition will dramatically accelerate that strategy," Twitter Market Director (India and Southeast Asia) Rishi Jaitly told PTI. He added that the acquisition will also help Twitter strengthen its engineering efforts in the country.

"Millions of people are coming online for the first time in countries like Brazil, India and Indonesia. For many, their first online experience will be on a mobile device but the cost of data may prevent them from experiencing the true power of the Internet. Twitter, in partnership with ZipDial, can make great content more accessible to everyone," he said.

He said the ZipDial platform is a "perfect match for India", which is a mobile-first country. Founded in 2010 by Valerie Wagoner and Amiya Pathak, ZipDial has built a mobile platform that lets people follow and engage with content across interfaces, combining SMS, voice, mobile web, and access to mobile apps to bridge users from offline to online. ZipDial allows users to make a "missed call" to a brand, following which the caller begins receiving inbound content and further engagement on their phone in real time through voice, SMS or an app notification.

"Only one in 3 phones in India have active Internet connections and even the average consumption is very low at an average of 60 MB per month compared to 1.38 GB consumed each month by users in the US. Our technology allows brands to interact with the audiences, especially in areas where people aren't always connected to data or only access data through intermittent WiFi networks," Wagoner said. ZipDial's platform has engaged nearly 60 million users with hundreds of marketer clients, including leading brands and media companies, including Procter & Gamble, Cadbury, Unilever, Colgate, Disney, KFC, and MakeMyTrip.

Over the past two years, ZipDial and Twitter have collaborated on a variety of campaigns, including the Indian elections, Bollywood film promotions and @MTVIndia's #RockTheVote "Dial the Hashtag" campaign. Twitter has more than 284 million monthly active users. It, however, does not disclose country-specific user numbers.

ZipDial has about 50 employees. Its investors included Blume Ventures, AngelPrime, Sunil Goyal of YourNest Ventures, Mumbai Angels, Jungle Ventures, Unilazer Ventures, and 500 Startups.

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Watch: Why Yusuf Hamied is one of the Indian Business Icons

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons. The names are now thrown open to public voting. The icon in focus is Cipla's Yusuf Hamied.

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons that the people of the country think have had a monumental impact, not only on their lives, but also on the Indian economy. An eminent jury has shortlisted 30 icons who they feel have impacted the Indian economy in the past 15 years. These names are now thrown open to public voting. The icon in focus is Cipla 's Yusuf Hamied.

Watch video for more...

Cipla stock price

On January 19, 2015, at 14:14 hrs Cipla was quoting at Rs 656.75, up Rs 9.75, or 1.51 percent. The 52-week high of the share was Rs 671.95 and the 52-week low was Rs 366.70.

The company's trailing 12-month (TTM) EPS was at Rs 15.02 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 43.73. The latest book value of the company is Rs 125.69 per share. At current value, the price-to-book value of the company is 5.23.

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Here's why IBI names YC Deveshwar as one of its icons

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons. The names are now thrown open to public voting. The icon in focus is YC Deveshwar.

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons that the people of the country think have had a monumental impact, not only on their lives, but also on the Indian economy. An eminent jury has shortlisted 30 icons who they feel have impacted the Indian economy in the past 15 years. These names are now thrown open to public voting. The icon in focus is YC Deveshwar.

Watch video for more…

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To benefit by Rs 100 cr post rate cut by RBI: Gammon Infra

MD KK Mohanty said the cost of funds is a critical aspect to make industry globally competitive. The company is on the verge of completing three projects and has operational assets worth Rs 2,500 crore.

Hailing Reserve Bank of India's move to slash repo rates by 25 bps KK Mohanty, MD,  Gammon Infrastructure said the company is likely to benefit by Rs 100 crore post this hike.

"We have more than Rs 5,000 crore debt in consolidated balance sheet. In that 25 percent bps effectively should give around Rs 100 crore benefit provided that reduction is passed on to us," he added.

In an interview to CNBC-TV18, Mohanty said government should tackle issue of ease of doing business. He further said that the cost of funds is a critical aspect to make industry globally competitive. The company is on the verge of completing three projects and has operational assets worth Rs 2,500 crore.

Below is verbatim transcript of the interview:

Q: How much relief will 25 bps cut give you, what is your current debt and how much interest payments do you expect on a quarterly basis?

A: We have more than Rs 5,000 crore debt in consolidated balance sheet. In that 25 percent bps effectively should give around Rs 100 crore benefit provided that reduction is passed on to us.

I will make two points here, the banks also have limitations. The projects that are stopped, they will not jump on it and give you interest rate reduction because those projects are anyways stopped and their portfolio is suffering.

Secondly, today because the infrastructure portfolio is not exactly performing well, the risk premium of the bank is also high on the infrastructure project. Due to risk premium, if they have 25 percent cushion in the cost of fund, they will try to increase 25 bps into the risk premium.

The industry or the infrastructure segment may not immediately enjoy a lot of benefit but this is exceedingly positive move and people are looking with optimism for future, it is a direction shown to the whole financial policy and RBI approach for the future.

Besides two critical things which RBI is focusing on - one is fiscal deficit and inflation. The central bank should also push the government on ease of doing business and taking faster decisions in public sectors so that the public sector is also performing along with the private sector.

Once the portfolio starts performing, if the infrastructure starts performing, today if the bank is charging 200 bps risk premium on the base rate, that risk premium will start coming down once the portfolio starts performing. Besides RBI cutting rate, the other side the performance itself also can bring down the cost of fund in the whole industry.

Gammon Infra stock price

On January 16, 2015, at 14:12 hrs Gammon Infrastructure Projects was quoting at Rs 15.00, down Rs 0.15, or 0.99 percent. The 52-week high of the share was Rs 20.85 and the 52-week low was Rs 6.60.

The latest book value of the company is Rs 7.16 per share. At current value, the price-to-book value of the company was 2.09.

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Will wait and see if lenders pass on rate cut benefit: NCC

Given the recently-acquired balance sheet strength, NCC plans to repay high cost term debt of Rs 600 crore using proceeds of the rights issue.

The RBI's rate cut bodes well for the industry, says NCC executive vice-president YD Murthy, but it is critical to watch how much of it will be passed on by the lenders. If rates are cut to the tune of 100 bps and if it is passed on, then it will add Rs 25 crore to the full year bottomline.

Analysts across the board are putting their faith behind NCC saying the company is best placed to capitalize on the huge infra investment opportunity. Over the last two years, while many EPC companies filed for Corporate Debt restructuring (CDR), NCC managed to improve its working capital situation and brought its debtor days down from 105 days in FY11 to 80 days in FY14.

Given the recently-acquired balance sheet strength, NCC plans to repay high cost term debt of Rs 600 crore using proceeds of the rights issue. Analysts say once this debt is repaid, NCC will have residual standalone debt of Rs 2,200 crore which would be entirely working capital debt and will also help improve credit rating.

Stay tuned for more...

NCC stock price

On January 16, 2015, at 14:14 hrs NCC was quoting at Rs 76.95, down Rs 0.3, or 0.39 percent. The 52-week high of the share was Rs 90.25 and the 52-week low was Rs 13.88.

The company's trailing 12-month (TTM) EPS was at Rs 0.79 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 97.41. The latest book value of the company is Rs 56.10 per share. At current value, the price-to-book value of the company is 1.37.

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Nissan launches Datsun Go+ priced at Rs 3.79 lakh

Datsun Go+ offers flexible sitting options and extra luggage space, he added. The Datsun Go+ range starts at Rs 3.79 lakh with the top end model priced at Rs 4.61 lakh (all prices ex-showroom Delhi).

Car maker Nissan Motor India today launched compact multi purpose vehicle Datsun Go+ in the Capital, with price starting at Rs 3.79 lakh (ex- showroom Delhi).

The company had launched the vehicle yesterday in Mumbai. "Datsun Go+ is the second model in Datsun's India line up and delivers on our promise of making motoring more accessible and more attractive for Indian customers," Nissan Motor India managing director Arun Malhotra said.

The vehicle offers flexible sitting options and extra luggage space, he added. The Datsun Go+ range starts at Rs 3.79 lakh with the top end model priced at Rs 4.61 lakh (all prices ex-showroom Delhi). The vehicle comes with 1.2 petrol engine, a fuel economy of 20.6 km/litre and a luggage space of 347 litres.

Earlier this month, Nissan had announced the start of pre-bookings for Datsun GO+ in India. Japan-based Nissan Motor had relaunched the Datsun brand, its third global brand, along side Nissan and Infiniti, in March 2012. Datsun started sales in India, Indonesia, Russia and South Africa from 2014.

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NTPC signs Rs 10,000 cr term loan agreement with SBI

NTPC has signed a term loan agreement of Rs 10,000 crore with state-run lender State Bank of India (SBI) for partially funding its capital expenditure.

Country's largest thermal power producer  NTPC  has signed a term loan agreement of Rs 10,000 crore with state-run lender  State Bank of India  (SBI) for partially funding its capital expenditure.

"NTPC has signed a term loan agreement for Rs 10,000 crore with State Bank of India. The loan has a door to door tenure of 15 years and will be utilised to part finance the capital expenditure of the company," NTPC said in a statement. 

The loan agreement was signed in the presence of Arup Roy Choudhury , CMD, NTPC , Arundhati Bhattacharya, chairperson, SBI and K Biswal, Director (Finance) NTPC.

NTPC stock price

On January 16, 2015, at 14:14 hrs NTPC was quoting at Rs 140.15, up Rs 0.90, or 0.65 percent. The 52-week high of the share was Rs 168.80 and the 52-week low was Rs 110.90.

The company's trailing 12-month (TTM) EPS was at Rs 12.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 11.3. The latest book value of the company is Rs 104.08 per share. At current value, the price-to-book value of the company is 1.35.

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BHEL bags Rs 1,202 cr power project order in Karnataka

The company has been awarded this contract for setting up a Combined Cycle Power Plant (CCPP) in Karnataka on EPC (Engineering, Procurement and Construction) basis by the Karnataka Power Corporation.

State-run BHEL  has bagged an order worth Rs 1,202-crore for 370 MW gas-based combined cycle power project in Karnataka.

The company has been awarded this contract for setting up a Combined Cycle Power Plant (CCPP) in Karnataka on EPC (Engineering, Procurement and Construction) basis by the Karnataka Power Corporation.

"Valued at Rs 1,202 crore, the order for the 370 MW Gas Turbine-based CCPP to be installed at Yelahanka in the outskirts of Bengaluru city, has been placed on BHEL by Karanataka Power Corporation," the company said in a statement today.

This plant will replace the old diesel generator-based power capacity and improve the power supply in Karnataka and specifically Bengaluru city.

BHEL's scope of work in the project includes manufacturing, engineering, designing, construction, erection, commissioning of the gas turbine-based combined cycle power plant.

The key equipment for the manufactured at BHEL's Hyderabad, Trichy, Haridwar, Bhopal and Jhansi plants, while the company's Power Sector - Southern Region shall execute the civil works and erection and commissioning.

BHEL stock price

On January 15, 2015, at 14:10 hrs Bharat Heavy Electricals was quoting at Rs 272.15, up Rs 4.30, or 1.61 percent. The 52-week high of the share was Rs 291.50 and the 52-week low was Rs 145.75.

The company's trailing 12-month (TTM) EPS was at Rs 11.68 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 23.3. The latest book value of the company is Rs 135.02 per share. At current value, the price-to-book value of the company is 2.02.

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