Shares of public sector oil marketing companies (PSU OMCs) will be in focus as these companies hiked prices of petrol by Rs 0.75 per liter and price of diesel by Rs 0.50 per liter with effect from Saturday, 1 June 2013.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles declined 23.37% to 49,304 vehicles in May 2013 over May 2012. The company's domestic sales of Tata commercial and passenger vehicles declined 24.44% to 45,430 units in May 2013 over May 2012. Exports declined 8.17% to 3,874 units in May 2013 over May 2012.
Mahindra & Mahindra (M&M) on Saturday, 1 June 2013 said its total sales declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over May 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, We have achieved an overall growth of 5% in our domestic volumes during May 2013 for our automotive sector, in spite of a challenging environment. The growth in capital investment and private spending have also slowed down which is a cause for concern. At Mahindra, we remain cautiously optimistic of the situation and do hope that on the back of the new product launches, the auto industry will rev up sooner than later.
Maruti Suzuki India on Saturday, 1 June 2013 reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6856 units in May 2013 over May 2012.
Infosys announced on Saturday, 1 June 2013, that the company's board has appointed Mr. N R Narayana Murthy into the board and executive leadership of the company. The board approved appointing Mr. N R Narayana Murthy as Executive Chairman of the board and Additional Director with effect from 1 June 2013.
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Mr. Murthy's election as a Director would be placed for the consideration of the company's shareholders in the Annual General Meeting (AGM) on 15 June 2013. Subject to his election as a director at the AGM, the board will take up in its meeting on 15 June 2013, the resolutions for convening an extraordinary general meeting within the requisite period, in order to seek approval from the shareholders for appointing him as the Executive Chairman and Whole-time Director for a period of five years commencing on 1 June 2013.
Mr. K V Kamath would step down from his position as Chairman of the board and take up the position of Lead Independent Director effective 1 June 2013.
During his five year term, Mr. Murthy would draw a token compensation of Rupee one per year.
Mr. S Gopalakrishnan would be re-designated Executive Vice Chairman effective 1 June 2013 and would primarily focus on key client relationships and broader industry issues. Mr. S D Shibulal would continue to be the Managing Director and CEO.
Mr. S Gopalakrishnan and Mr. S D Shibulal have requested that they draw a compensation of Rupee one per year. The board has accepted their requests, subject to necessary shareholder and government approvals.
In order to function more effectively Mr. Narayana Murthy intends to create the Chairman's office to assist him during his tenure and has requested the board to permit him to put together a team for this function. The team will include his son, Dr. Rohan Murty, as Mr. Narayana Murthy's executive assistant. The board has agreed to Mr. Narayana Murthy's requests, subject to necessary approvals.
Sun Pharmaceutical Industries is reportedly in talks to buy Sweden's pharma firm Meda AB in a deal worth up to $5 billion. According to reports, Sun Pharma has been in talks with several banks to raise funds to buy out Meda for as much as $5 billion as part of its expansion plans.
Sterlite Industries said after market hours on Friday, 31 May 2013, that the National Green Tribunal (NGT) has on 31 May 2013, allowed the Tuticorin Copper Smelter of Sterlite Industries to recommence production. NGT has laid down certain conditions. The company said it welcomes the order and will work closely with the regulatory authorities and expect to resume production in approximately one week.
Jet Airways (India) announced after market hours on Friday, 31 May 2013, that its promoter, Tail Winds, sold 43.17 lakh shares through stock exchanges in two tranches to comply with market regulator Securities & Exchange Board of India's (Sebi) mandate of 25% minimum public shareholding in a listed company. As on 31 March 2013, Tail Winds held 79.99% stake in Jet Airways (India). Last week, Tail Winds sold 5% stake in Jet Airways through an offer for sale (OFS) and block deals on the bourses.
Tata Communications announced after market hours on Friday, 31 May 2013, that its promoter Tata Sons will divest 0.96% stake, comprising 27.50 lakh shares, in the company through offer for sale (OFS) route on Monday, 3 June 2013, to meet Sebi's minimum public shareholding norms. The OFS will open at 9.15 IST on Monday, 3 June 2013 and it will close on the same day at 3.30 IST, the company said in a filing to the BSE.
The OFS will take place through the seller's brokers on the separate window provided by the stock exchanges for this purpose, the filing added. Tata Sons will submit floor price to the BSE before 9:00 IST on Monday, 3 June 2013. The floor price will be declared by the stock exchange after trading hours on 3 June 2013, post closure of the OFS.
As on 31 March 2013, promoters held 76.15% stake in Tata Communications. Tata Sons held 14.22% stake in the company.
Omaxe's promoters will divest 12.19% stake, comprising 2.11 crore shares, in the company through OFS route on Monday, 3 June 2013, to meet the minimum public shareholding norms. The OFS will open at 9.15 IST on Monday, 3 June 2013 and it will close on the same day at 3.30 IST. The floor price for OFS is fixed at Rs 140 per share. As on 31 March 2013, promoters held 89.14% stake in Omaxe.
BGR Energy Systems' promoters will divest 6.13% stake, comprising 44.22 lakh shares, in the company through OFS route on Monday, 3 June 2013, to meet the minimum public shareholding norms. The OFS will open at 9.15 IST on Monday, 3 June 2013 and it will close on the same day at 3.30 IST. The floor price for OFS is fixed at Rs 163 per share. As on 31 March 2013, promoters held 81.13% stake in BGR Energy Systems.
Adani Ports and Special Economic Zone (APSEZ) on Saturday, 1 June 2013, said that the Finance Committee of board of directors of the company by a resolution dated 1 June 2013 fixed the price band at Rs 148 to Rs 158 per equity share for the proposed issue of up to 6.65 crore equity shares of face value of Rs 2 each of the company being offered by way of institutional placement programme. The issue will open and close on 4 June 2013.
Essar Ports, through its wholly owned subsidiary Vadinar Oil Terminal, has emerged as the highest bidder by quoting 31.01% revenue share for mechanisation and operation of three iron ore berths (two outer harbour berths and one inner harbour berth) at Visakhapatnam port on Build-Operate-Transfer (BOT) basis for a concession period of 30 years. The announcement was made after market hours on Friday, 31 May 2013.
These three berths will have a combined capacity of 23 million metric tonne per annum (MMTPA), Essar Ports said in a statement. On commissioning of this project, the company's total capacity for iron ore export at the east coast will become 39 MMTPA with 4 highly mechanised iron ore berths -- three in Visakhapatnam Port and one in Paradip Port.
The company can start the operation of the two outer harbour berths within next 3-4 months as the upgradation and operation at the terminal will go simultaneously.
Vishakhapatnam port handled 12.3 million tonnes of iron ore during FY'13 in spite of slump in iron ore export in India, it added.
Meanwhile, Essar Ports' promoter, Essar Shipping & Logistics, will divest 0.76% stake, comprising 32.46 lakh shares, in the company through OFS route on Monday, 3 June 2013, to meet the minimum public shareholding norms. The OFS will open at 11:00 IST on Monday, 3 June 2013 and it will close on the same day at 14:00 IST. The floor price for OFS is fixed at Rs 77 per share. As on 31 March 2013, promoters held 80.30% stake in Essar Ports.
This is the second OFS by Essar Ports. Essar Shipping & Logistics had earlier offloaded 2.03 crore shares, or 4.75% equity, of the company through OFS on Thursday, 30 May 2013.
Medical equipment maker Opto Circuits (India) announced after market hours on Friday, 31 May 2013, that it has entered into a licensing agreement with Biosensors for its drug eluting balloon range used for treatment of patients with peripheral arterial disease.
Eurocor GmbH, a group company of Opto Circuits, has entered into a licensing agreement for their drug eluting balloon (DEB) technology and the related intellectual property rights in relation to the treatment of both coronary and peripheral artery disease with Biosensors International Group, the company said.
Both agreements will involve three Biosensors-branded DEBs-- BioStream, BioPath 014 and BioPath 035, Opto Circuits said without giving the financial details of the agreement.
As a first step in this process, an original equipment manufacturer (OEM) agreement is being implemented, whereby Biosensors will market and sell, under its own brand, DEBs manufactured by Eurocor, the statement said.
GVK Power & Infrastructure after market hours on Friday, 31 May 2013, said it received environmental approval by the Coordinator-General for its $4.2 billion Kevin's Corner mine project in the Galilee Basin in Western Queensland. The Kevin's Corner project, proposes a 30 million tonne per annum (mtpa) underground and open-cut coal mine and other associated infrastructure 65 kilometres (KM) north-west of the Alpha township. The project would relay on the railway infrastructure of the adjacent Alpha Coal project to transport coal to the Port of Abbot Point, Bowen.
In March 2013, GVK Coal Infrastructure (Singapore) Pte (GVK Hancock) and Aurizon signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves including GVK Hancock's Alpha, Kevin's Corner and Alpha West coal mines and a process to support the next phase of coal growth in the Bowen Basin.
Earlier, in a major move to emphasize its focus in mining and also keeping in mind the rising demand for coal across the globe, GVK had acquired 79% equity stake each in Alpha Coal and Alpha West Coal Mines and 100% equity stake in Kevin's Corner Coal Mines, located in Queensland, Australia from Hancock Coal Pty. for $1.26 billion. These mines have reserves of about 8 billion tonne and a capacity of more than 60 million tonne per annum. When combined, these projects will create one of the largest thermal coal mining operations in the world, GVK said in a statement. GVK had acquired 100% stake in a 500 KM rail link and 60 million tonne per annum port as part of the 'pit-to-port' logistics solution. The first coal from the Alpha Project is scheduled for 2016 with the product bound for the Asian export market, GVK said.
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