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Monday, July 15, 2013

PSU OMCs in focus after petrol price hike



Shares of public sector oil marketing companies (PSU OMCs), car major Maruti Suzuki and two-wheeler makers will be in focus after PSU OMCs announced hike in price of petrol by Rs 1.55 a litre as the falling rupee made imports costlier. Actual increase will be higher and will vary from city to city depending on local taxes. The new price is effective from midnight Sunday. Meanwhile, the price of diesel was kept unchanged.

FMCG and agri-sector stocks will be in focus after the latest data showed a further pick-up in sowing of kharif crops. The Centre on Friday, 12 July 2013, said that as per reports received from state governments, the total sown area in the country stands at 517.65 lakh hectare (lh) as on 12 July 2013, compared with 341.49 lh at this time last year.

Glenmark Pharmaceuticals after market hours on Friday, 12 July 2013 confirmed that its subsidiary, Glenmark Generics, has filed abbreviated new drug applications (ANDAs) for Lacosamide tablets, and oral solution with the United States Food and Drug Administration (USFDA) with a Paragraph IV Certification for the Orange-Book listed patent. Glenmark's ANDA products are generic versions of VIMPAT, which are indicated for an adjunctive therapy in the treatment for partial-onset seizures in adults with epilepsy.

According to IMS Health data, the VIMPAT tablets and solution had annual sales of approximately $353 million in the United States for the twelve months ended 31 March 2013.

On 10 July 2013, UCB, INC., UCS Pharma GmbH, Research Corporation Technologies, Inc. and Harris FRC Corporation filed suit against Glenmark Generics and Glenmark Generics Inc., in the United States District Court for the District of Delaware, seeking to prevent Glenmark from commercializing its ANDA product prior to the expiration of US Patent. This lawsuit was filed under the provisions of the Hatch-Waxman Act. If Glenmark is successful in its challenge of the patent, it will garner 180-day exclusivity for its products.

Tata Global Beverages before market hours today, 15 July 2013, said that it has entered into an agreement with Tata Realty and Infrastructure for the development of the company's property in Bangalore through a special purpose vehicle (SPV). The consideration for the transfer of the company's property is Rs 195 crore which will be discharged by a mix of cash, equity/other securities in the SPV and constructed space in the developed property. The necessary transaction documents have been executed by the parties in this regard, Tata Global Beverages said.

Kalindee Rail Nirman (Engineers) has roped in Texmaco Rail & Engineering as a white knight after a voluntary open offer announced recently by Jupiter Metal to acquire 30% stake in Kalindee Rail Nirman (Engineers). Kalindee Rail Nirman (Engineers) on Saturday, 13 July 2013, said that the company's board of directors has decided to issue 41.10 lakh equity shares on preferential allotment basis to Texmaco Rail & Engineering at Rs 65 per equity share or such higher price determined in accordance with the provisions of the Sebi ICDR Regulations. After the preferential issue, Texmaco will hold about 24.9% of post issue equity capital of Kalindee.

On 10 July 2013, Jaipur-based Jupiter Metal announced a voluntary open offer to acquire 37.19 lakh equity shares, constituting 30% of the paid-up capital of Kalindee Rail Nirman (Engineers) at price of Rs 65 per share. The open offer is conditional, subject to a minimum level of acceptance of 32.23 lakh equity shares, constituting 26% of the paid-up capital of the company.

After Jupiter's voluntary open offer, Kalindee on 11 July 2013 said that the company's board of directors took note of the voluntary open offer for the company's shares and it will evaluate all options. The developments sparked rally in shares of Kalindee which jumped 18.35% in two trading sessions to settle at Rs 72.55 on Friday, 12 July 2013, from Rs 61.30 on 10 July 2013.

The crux of the issue is very lower promoter holding in Kalindee. Total promoter holding in the company was just 15.63%, as per the latest shareholding pattern available as on 31 March 2013.

Kalindee Rail Nirman (Engineers) is a construction company dedicated to building infrastructure for rail transport under one roof on turn key basis. It has been active in fields of signaling, telecommunications, and track and information systems.

Texmaco Rail & Engineering manufactures a diverse range of products. It is the largest manufacturer of railway freight cars, and hydro-mechanical equipment. Its product range also extends to pressure vessels, road repairing and agricultural machinery.

Torrent Power after market hours on Friday, 12 July 2013, said that the rating agency CRISIL has reaffirmed the credit rating on the debt programme and bank facilities of the company at CRISIL AA, with revision in rating outlook to negative from stable. The rating on the company's short-term bank facilities and debt programme has also been reaffirmed at CRISIL A1+, Torrent Power said.

Crompton Greaves after market hours on Friday, 12 July 2013 said it has deferred its decision on share-buyback. The company said that it has received the observations from the Securities & Exchange Board of India (Sebi) on 12 July 2013 and the company is in the process of incorporating the suggested amendments and therefore the proposed buyback will not commence on 15 July 2013 as disclosed earlier. Crompton Greaves said it will communicate the revised dates shortly.

Tube Investments of India (TII) after market hours on Friday, 12 July 2013 said that it has on 12 July 2013, entered into an agreement with Tsubamex Company (Tsubamex), Japan to form a joint venture company (JVC) in India to engage in the business of design and engineering of sheet metal dies & fixtures and providing related services. The JVC will have an initial share capital of a maximum of Rs 7 crore with 50:50 equity participation by TII and Tsubamex. The JVC will primarily cater to the requirements of automotive industry and white goods sector. The formation of JVC and infusion of equity capital by TII are subject to the approval of the shareholders of the company, TII said.

Asahi India Glass after market hours on Friday, 12 July 2013 said that it is proposing to convene a meeting of the Rights Issue Committee of the Board of Directors of the company, on Wednesday, 17 July 2013, to consider and if thought fit approve the terms of the rights issue including, inter alia, fixing the record date, the price, the ratio in which the shares will be issued and allotted to the existing shareholders under the rights issue and certain other matters pertaining to the rights issue.

Shasun Pharmaceuticals and SeQuent Scientific on Saturday, 13 July 2013, said they have signed a letter of intent (LOI) to form a joint venture (JV) company to develop, manufacture and sell veterinary products inclusive of both active pharmaceutical ingredients (API) and formulations in the global market.

Together the two companies plan to quickly and effectively offer a range of animal health products globally through the JV, they said. SeQuent will hold 73% of the JV and Shasun will own the remaining 27%. In terms of the arrangements proposed in the LOI, SeQuent and Shasun will set up a JV company, into which, contributions will be made by both companies, by way of transfer of identified assets, contracts and licenses.

The combination with Shasun will deliver synergies and technical arbitrage enabling the venture to become a leading global provider of animal health solutions, said Dr Gautam Kumar Das, Joint MD, SeQuent.

Bank of Maharashtra on Saturday, 13 July 2013, said it has reduced its base rate by 25 basis points from 10.25% per annum (p.a.) to 10% p.a on monthly compounding basis, with effect from 15 July 2013.

Sadbhav Engineering on Saturday, 13 July 2013, said it has secured a contract worth Rs 183.57 crore from Sardar Sarovar Narmada Nigam (Gujarat) for constructing Kachccha Branch canal reach.

JSW Steel turns ex-dividend today, 15 July 2013, for final dividend of Rs 10 per share for the year ended 31 March 2013 (FY 2013).

Piramal Enterprises turns ex-dividend today, 15 July 2013, for final dividend of Rs 17.50 per share for the year ended 31 March 2013 (FY 2013).

Tata Steel turns ex-dividend today, 15 July 2013, for final dividend of Rs 8 per share for the year ended 31 March 2013 (FY 2013).

Trent turns ex-dividend today, 15 July 2013, for final dividend of Rs 7 per share for the year ended 31 March 2013 (FY 2013).

D B Corp turns ex-dividend today, 15 July 2013, for final dividend of Rs 3.50 per share for the year ended 31 March 2013 (FY 2013).

Info Edge (India) turns ex-dividend today, 15 July 2013, for final dividend of Re 1 per share for the year ended 31 March 2013 (FY 2013).

JK Cement turns ex-dividend today, 15 July 2013, for final dividend of Rs 6.50 per share for the year ended 31 March 2013 (FY 2013).

South Indian Bank's net profit declined 6.66% to Rs 114.84 crore on 17.34% growth in total income to Rs 1342.88 crore in Q1 June 2013 over Q1 June 2012. The result was announced at the fag end of market hours on Friday, 12 July 2013.

The bank's ratio of net non-performing assets (NPAs) to net advances increased to 1.12% as on 30 June 2013, from 0.78% as on 31 March 2013 and 0.35% as on 30 June 2012. The ratio of gross NPAs to gross advances increased to 1.57% as on 30 June 2013, from 1.36% as on 31 March 2013 and 1.08% as on 30 June 2012.

The bank's capital adequacy ratio (CAR) as per Basel-II norms stood at Rs 13.66% as on 30 June 2013, as against 13.91% as on 31 March 2013 and 13.16% as on 30 June 2012.

South Indian Bank's provisions and contingencies jumped 314.92% to Rs 105.35 crore in Q1 June 2013 over Q1 June 2012.