Posts Tagged ‘Emami’

NEWS ROUND UP – ECONOMY & INDUSTRIAL SECTORS

Hello Friends here we come up with the Latest News round up from Indian Economy and various industrial Sectors of the country.

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NEWS ROUND UP

Economy

Β·India’s industrial output rose at a faster-than-expected 9.1 percent in September from a year earlier. Manufacturing production rose 9.3 percent in September from a year earlier.

Β· The green shoots visible in the economy failed to enhance government revenue with indirect tax collections β€” comprising customs, excise and service tax β€” falling almost 22 per cent to Rs 1,26,903 crore in the April- October period this year.

It stood at Rs 1,61,954 crore in the corresponding seven months of 2008-09. The overall decline was led by a 32 per cent fall in customs revenue.

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Oil & Gas

Β·Reliance Industries Ltd. found oil in a block in the western state of Gujarat and is assessing the commercial viability of the discovery, which may help increase domestic fuel supplies.

Five wells were drilled in the 635 square kilometer area located in the Cambay basin, about 130 kilometers (80 miles) from Ahmedabad

Β·Oil and Natural Gas Corporation (ONGC) has decided to merge its energy trading joint venture with steel tycoon Lakshmi Mittal with their exploration tie-up.

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Metals

Β·Tata Steel has approved an exchange offer for an existing $875 million of securities into foreign currency convertible bonds (FCCBs), in a move to reduce costs and ease repayment.Β  The move gives an option to extend the repayment schedule by two years.

Β·Hindalco Industries plans to raise about Rs 2,900 crore in the next three to four weeks.
In July, it had announced plans to raise Rs 2,400 crore through Qualified Institutional Placement (QIP).

The issue could not take place due to the volatility in the stock markets.

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Capital Goods

Β· Larsen & Toubro Limited (L&T) has secured a contract worth Rs 1,635 crore to build a coal-fired plant for Madhya Pradesh Power Generation Co. Ltd.

The project will be executed on turnkey basis and L&T’s scope includes design, engineering, manufacture, supply, erection and commissioning of balance of Plant Package (BoP) systems.

Β·L&T one of the failed suitors for scam-hit Satyam Computer, sold 2.32 per cent stake in the IT company (now Mahindra Satyam) for over Rs 306 crore, exactly a month after the lock-in perid on sale of its holding ended.

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Refineries

Β· MRPL is planning to invest Rs 6,000-8,000 crore starting from early 2011.

The company is looking at raising around Rs 5,000 crore to support its expansion plan, for setting up a polypropylene plant and installing a single buoy mooring (SBM) at the Mangalore port.

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FMCG

Β· Emami is diversifying into the cement business and will invest Rs 1,750 crore to set up production units in the next three years.

As part of the new plan, group company Emami Cement will set up a fully integrated cement plant in Chhattisgarh with an installed capacity to produce 3.1 million tonnes.

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Finance

Β· Power Finance Corporation has decided to lend Rs 50,000 crore, over two third of its total asset base, to fund various proposed power projects in the country.

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Positive Returns keeps Investor Interest in QIPs, Intact :)

QIPs

Thanks to a strong broad market rally, the share prices of the companies that have raised money through qualified institutional placements (QIPs) have recovered.

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According to SMC Capitals, of the 24 companies, which raised money through QIPs, only five gave negative return while the remaining 19 stocks were trading well above their QIP issue prices.

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However, they have underperformed the BSE benchmark index.

As against 62 per cent return posted by the BSE Sensex (since the beginning of the current fiscal), the companies’ return stood at just 35 per cent.

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β€œOn an aggregate, the current mark-to-market (MTM) value of all QIPs put together works out to an amount of Rs 23,208 crore, marking current MTM return of 35.17 per cent,” said a SMC Capitals study.

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β€œThe biggest contributor to the positive performance is the first QIP issuance by Unitech. The issuance was made at Rs 38.5 a share and the current market price is Rs 113.4, indicating a current MTM return of 194 per cent,” the report said.

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Other prominent QIP issuances include Indiabulls Real Estate, Shree Renuka Sugars, HDIL and Emami.

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A day before, the share prices of Network 18 Fincap, Bajaj Hindustan, and REI Agro were trading below their QIP issue prices.

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Such positive returns will make sure that investor interest in QIPs will continue and many more companies will raise fund through this route, said Mr Jagannadham Thunuguntla, Head of Equities at SMC Capitals.

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