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Idea Cellular, Yes Bank may gain after finding place in Nifty index

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Last Updated : Feb 23 2015 | 10:00 AM IST

Shares of Idea Cellular and Yes Bank may edge higher and stock prices of DLF and Jindal Steel & Power (JSPL) may edge lower after the index maintenance sub-committee of India Index Services & Products (IISL) on Friday, 20 February 2015, announced changes in the constituents of the 50-unit CNX Nifty index. IISL said Idea Cellular and Yes Bank will enter the Nifty index in place of DLF and JSPL with effect from 27 March 2015. Nifty based index mutual funds will have to rebalance their portfolio by including Idea Cellular and Yes Bank and exiting DLF and JSPL. An index fund is a passively managed mutual fund scheme in which the scheme's portfolio mirrors the index.

Power Grid Corporation of India (PGCIL) on Saturday, 21 February 2015 said that its board of directors will meet on 4 March 2015, inter alia, to consider and approve the declaration of interim dividend for the financial year 2014-15.

Jindal Steel & Power (JSPL) after market hours on Friday, 20 February 2015 in a clarification with regard to news item titled "JSPL Retains 2 Blocks, Hindalco Bags one" said that as per the information published in the website of Nominated Authority to the Central Government, Jindal Power, a subsidiary of JSPL has been declared as the successful bidder for the Coal Block of Gare Palma IV/2 and IV/3. However in respect of the Coal Block of Gare Palma IV/1 of JSPL, the company has not qualified for the e-auction round on the basis of initial price offer submitted by it, JSPL said.

Hindalco Industries will be focus after the company won the Gare Palma IV/4 coal block in Chhatisgarh for Rs 3,001 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal on Friday, 20 February 2015. The coal ministry has started auctioning coal blocks after the Supreme Court in September last year cancelled the allocation of more than 200 coal mines allotted between 1993 and 2010 after ruling that they were arbitrary and illegal.

Coal India (CIL) will be in focus after the company's Chairman & Managing Director (CMD) S Bhattacharya on Friday, 20 February 2015, said that the key issues that the coal miner is relying on to attain the 1 billion tonnes coal production target by 2019-20 are timely completion of three critical railway lines and timely land acquisition and green clearances. CIL had announced at the fag end of the trading session on Friday, 20 February 2015, that an amount of around Rs 6000 crore has been earmarked by CIL for railway and other infrastructure development for the year 2015-16. He further added that the process of identification of projects to share the balance quantity, to top up the 1 billion tonnes mark, is also underway. The two CIL subsidiaries Sambalpur based Mahanadi Coalfields and the Bilaspur based South Eastern Coalfields (SECL) are expected to play a pivotal role in CIL's quest of attaining the 1 billion tonnes production with 250 MTs and 240 MTs respectively.

GMR Infrastructure announced before market hours that Delhi International Airport (DIAL) a subsidiary of GMR Infrastructure on 20 February 2015 has entered into a definitive agreement to sell its entire stake of 26% of the equity capital of Delhi Cargo Service Centre which operates cargo operations at Delhi Airport. DIAL has agreed to sell its entire holding of 1.09 crore shares to India Infrastructure Fund -II (investment manager - IDFC Alternatives Limited), for Rs 26.20 per share aggregating a total consideration of Rs 28.60 crore. The consummation of share sale is subject to fulfilment of certain conditions precedent.

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Public Sector Banks (PSBs) will be in focus. The Union Finance Minister Arun Jaitley on Saturday, 21 February 2015, made an appeal to all the employees of PSBs and their Unions & Associations not to resort to agitation approach by participating in bank strike . He informed the employees of PSBs that banks are already in negotiations with their Unions and Associations for wage settlement. Jaitley said that the bipartite negotiations in a cordial manner is the only available tool for settlement. Jaitley said that participating in the proposed strike is neither desirable nor affordable in the interest of the nation. Making an another appeal to the employees of PSBs, their Unions and Associations, the Finance Minister asked them not to resort to such disruptive means, and call off the call for strike.

PSB employee unions had on Friday, 20 February 2015 threatened to go on a four-day nation-wide strike beginning 25 February 2015 to press for their wage-related demands.

ING Vysya Bank and Kotak Mahindra Bank, separately, announced after market hours on Friday, 20 Febraury 2015, that Competition Commission of India (CCI) has approved the proposed combination in the nature of merger of ING Vysya Bank with Kotak Mahindra Bank under Section 31 (1) of the Competition Act, 2002. Kotak Mahindra Bank and ING Vysya Bank had announced amalgamation of ING Vysya with Kotak in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya.

Central Bank of India announced after market hours on Friday, 20 February 2015, that Capital Raising Committee of the board at its meeting held on 20 February 2015, being the relevant date, has fixed the conversion price of Rs 105.09 per share for conversion of entire Perpetual Non-Cumulative Preference Shares held by Government of India (GOI) into shares. Total number of shares to be offered to GOI will be upto 15.38 crore shares. On 4 February 2015, the Board of Directors of the bank considered and approved raising of additional equity capital by conversion of entire Perpetual Non-Cumulative Preference Shares (PNCPS) of Rs 1617 crore (161.70 crore PNCPS of the face value of Rs 10 each) held by GOI, into shares to be issued and allotted to GOI on preferential basis. Board of Directors had also fixed 20 February 2015 as the relevant date for the purpose of determining the conversion price.

State Bank of Travancore announced after market hours on Friday, 20 February 2015, that 4 March 2015 has been fixed as the record date for the purpose of 1 for 5 rights issue. The board at its meeting held on 20 February 2015, has set rights issue price of Rs 400 per share with issue size of Rs 474.03 crore and number of shares to be issued are 1.18 crore shares.

Cholamandalam Investment and Finance Company, Sundaram Finance, Bajaj Finance, Reliance Capital, Aditya Birla Nuvo, Shriram Transport Finance and L&T Finance Holdings will be in focus after the Reserve Bank of India (RBI) on Friday, 20 February 2015, said it has reviewed the existing guidelines on private placement of non-convertible debentures (NCDs) by non-banking financial companies (NBFCs) and said that the minimum subscription per investor in an NCD issue shall be Rs 20,000. As per the revised guidance, the issuance of private placement of NCDs by NBFCs shall be in two separate categories -- those with a maximum subscription of less than Rs 1 crore and those with a minimum subscription of Rs 1 crore and above per investor. In respect of issuance of NCDs with a maximum subscription of less than Rs 1 crore, a limit of 200 subscribers for every financial year has been set and the subscription needs to be fully secured, the RBI said. In respect of issuances of NDCs with a minimum subscription of Rs 1 crore and above, there will be no limit on the number of subscribers and the option to create security in favour of subscribers will be with the issuers. The RBI further said that such unsecured debentures will not be treated as public deposits as defined in NBFCs Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

The RBI said that an NBFC (excluding Core Investment Companies) will be allowed to issue debentures only for deployment of funds on its own balance sheet and not to facilitate resource requests of group entities/parent company/associates. Further, an NBFC is not allowed to give loans against the security of its own debentures (issued either by way of private placement or public issue).

BEML announced after market hours on Friday, 20 February 2015, that a high level delegation led by the defence minister of Czech Republic Mr. Martin Stropnicky visited the Bangalore complex of BEML on 20 February 2015. The delegation went around the manufacturing facilities of the company and held detailed discussions on the emerging areas of mutual business cooperation.

Future Consumer Enterprise announced before market hours that that in terms of the consent granted by the shareholders of the company, Future Consumer Enterprise has issued and allotted an aggregate of 4.59 crore shares of the company to Godrej Agrovet and Anamudi Real Estates LLP (jointly sellers) and has accordingly acquired an aggregate of 30% shareholdings of Aadhaar Wholesale Trading and Distribution (Aadhaar) held by the sellers, consequent to which Aadhaar is now a wholly owned subsidiary of the company.

United Spirits announced after market hours on Friday, 20 February 2015, that the High Court of Karnataka, Bangalore, at the hearing held on 19 February 2015, has sanctioned the Scheme of Arrangement (Scheme) between United Spirits and Enrica Enterprises (Enrica) and their respective shareholders and creditors, in respect of hive off of the company's unit at Poonamallee, Chennai to Enrica. The High Court of Judicature at Madras has already approved the Scheme and certified copy of the order has also been filed with the Registrar of Companies, Tamil Nadu by Enrica. In terms of the Scheme, the Appointed Date is 1 April 2013 and the Scheme shall become effective upon filing the certified copy of the Order of the Hon'ble High Court of Karnataka with the Registrar of Companies, Karnataka by the Company. The certified copy of the order is awaited. The Company will take all necessary steps to make the Scheme effective / operational.

Jaiprakash Power Ventures on Saturday, 21 February 2015, said that the second unit of 660 megawatts (MW) of Jaypee Nigrie Super Themal Power (JNSTPP) (A division of Jaiprakash Power Ventures) declared commercial operation with effect from 21 February 2015. Thus, 1320 MW JNSTPP of the company stands fully operational, Jaiprakash Power Ventures said.

Digjam on Saturday, 21 February 2015 said that its board of directors will meet on 25 February 2015, inter alia, to explore and if appropriate, approve the raising of long term funds (not being equity capital) for the company and appropriate actions for the same.

Shares of Hathway Cable & Datacom may edge lower after the Reserve Bank of India (RBI) on Friday, 20 February 2015, banned further purchases of equity shares of the company by foreign institutional investors (FIIs) and Registered Foreign Portfolio Investors (RFPIs) as the total foreign shareholding in the company's shares through Global Depository Receipts (GDRs)/American Depository Receipt (ADR)/Foreign Direct Investment (FDI)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/FIIs/RFPIs has reached the prescribed threshold limit as per extant FDI guidelines. The total holding of FIIs in Hathway Cable & Datacom stood at 27.36% as on 31 December 2014.

Prime Focus on Saturday, 21 February 2015, said that its board of directors at a meeting held on Friday, 20 February 2015, decided to make an offer for the issuance of upto 4,000 unlisted, unrated, redeemable debentures not convertible into equity shares of the company of face value of Rs 1 lakh each aggregating upto Rs 27 crore with a green shoe option of upto Rs 13 crore on a private placement basis. The proposed issuance is subject to various terms and conditions, including execution of definitive documents and all requisite approvals and consents, Prime Focus said in a statement.

Marico after market hours on Friday, 20 February 2015 said it has redeemed 1,000 NCDs of face value of Rs 10 lakh each aggregating to Rs 100 crore and duly made payment of the principal amount and premium on Friday, 20 February 2015.

Sanofi India's net profit after exceptional items fell 0.21% to Rs 92.50 crore on 5.39% rise in total income to Rs 527.10 crore in Q4 December 2014 over Q4 December 2013. The Q4 result was announced after market hours on Friday, 20 February 2015.

Sanofi India said that the board of directors of the company at its meeting held on 20 February 2015, inter alia, has recommended, final dividend of Rs 24 per share for the year ended 31 December 2014. An Interim dividend of Rs 10 pershare had been paid in August 2014. The board has also recommended a special one-time dividend of Rs 11 per share arising from the profit on the sale of the company's commercial premises in Mumbai. The interim dividend, proposed final dividend and special one-time dividend will together amount to a distribution of Rs 103.60 crore (excluding Dividend Distribution tax).

Kalpataru Power Transmission announced after market hours on Friday, 20 February 2015, that Shree Shubham Logistics (SSL), a subsidiary of Kalpataru Power Transmission, has filed a draft red herring prospectus dated 19 February 2015 (DRHP) with SEBI on 20 February 2015, in connection with its proposed initial public offering of shares of Rs10 each comprising a fresh issue of shares, aggregating upto Rs 210 crore and an offer for sale of upto 70.07 lakh shares by Tano India Private Equity Fund II. The offer includes a reservation of 1 lakh shares for eligible employees, as defined in the DRHP. The offer is subject to receipt of requisite regulatory approvals, market conditions and other considerations.

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First Published: Feb 23 2015 | 8:33 AM IST

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