Shares of public sector oil marketing companies (PSU OMCs) and state-run upstream oil companies will be watched after crude oil futures dropped on Friday, 5 September 2014, after downbeat US jobs data fuelled demand concerns and a ceasefire in Ukraine cooled geopolitical tensions. Brent October contract finished $1.01, or 1%, lower at $100.82 a barrel on Friday. US October contract finished $1.16, or 1.2%, lower at $93.29 a barrel on Friday.
Lower crude oil prices will decrease under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
State run upstream companies share a part of the under recoveries of PSU OMCs by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Shares of companies operating in the power sector will be in focus after India and Australia signed a civil nuclear deal on Friday, 5 September 2014, providing a boost to India's energy sector. Prime Minister Narendra Modi and visiting Australian Prime Minister Tony Abbott signed the agreement in New Delhi on cooperation in the peaceful uses of nuclear energy. The two leaders also agreed to work towards the long-term, sustainable and reliable supply of Australian resources based on India's energy needs, including increasing sales of conventional fuels such as coal and natural gas to India.
Cipla said that the company's wholly owned subsidiary Medispray Laboratories at its board meeting held on 5 September 2014 approved the acquisition of two manufacturing undertakings. The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore respectively. The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Entities controlled by relatives of the promoters hold majority interest in the companies which own the aforesaid undertakings, Cipla said.
A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies, Cipla said.
Bharat Forge has divested its 50% stake in Impact Automotive Solutions, which was formed, earlier in 2010 as a joint venture (JV) with KPIT Technologies. The JV was formed for the manufacture of hybrid solutions for automotive. The stake was sold by the company to the other JV Partner, KPIT Technologies, for Rs 10.80 crore against an initial investment of Rs 14.91 crore.
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Deepak Fertilisers & Petrochemicals Corporation said that Smartchem Technologies (STL), wholly-owned subsidiary of the company, India's leading manufacturer of mining chemicals, as a part of its forward integration initiative, has incorporated "Platinum Blasting Services" as its overseas venture for Mining Services in Brisbane, Australia.
STL will hold 65% while the local partners will hold 35% in the joint venture. Over the next two years. Platinum intends to make an investment of around AUD 28 million through a mix of debt and equity. Australia, which is an approximately 2 million tons per annum of expanding TAN market, will offer immense growth potential to platinum. platinum plans to develop a full service offering including, technical ammonium nitrate (TAN) supplies; storage and logistics; manufacturing of emulsion; blast design and technical support; and down-the-hole services, the company said in a statement.
La Opala RG said that 25 September 2014 has been fixed as a record date for its 5-for-1 stock split. The announcement was made after market hours on Friday, 5 September 2014.
Tree House Education & Accessories (Tree House), a leading educational service provider operating the largest number of branded self-operated pre-schools in India, announced that its board approved and executed the Memorandum of Understanding (MOU) for sale of its land and building located at Vadodara, Gujarat.
The particular property being considered for sale under this MOU is located at Village Atladara, Vadodara, Gujarat and represents one of five K-12 school land and building premises fully or partly owned by Tree House. The Company plans to monetize its physical assets while continuing to provide educational services to these institution. Tree House commenced the business of providing educational services to K-12 schools in 2008 and currently has a portfolio of 24 large format K-12 schools apart from over 500 pre-schools across the country.
Commenting on the development, Mr. Rajesh Bhatia, Managing Director of Tree House, said "This is the first step towards monetizing our investments in physical assets of K-12 schools and moving towards an asset-light operating structure. In addition to today's announcement, we are in discussio-i for our other assets also and will use the proceeds to move towards a debt free status and deliver strong returns to all our shareholders from the strong cash flows generated by the business."
The board of Vinati Organics will meet on 11 September 2014, to approve the allotment of 22.18 lakh equity shares of face value of Rs 2 each at the conversion price of Rs 100 on the request from IFC (International Finance Corporation) on conversion of Foreign Currency Convertible Bonds (FCCBs) for an aggregate amount $5,000,000 being 100% of the initial amount of the FCCBs (as per subscription agreement dated 4 March 2011).
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