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REC in focus as government to pare stake through OFS

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Capital Market
Last Updated : Apr 09 2015 | 12:01 AM IST

Rural Electrification Corporation (REC) after market hours yesterday, 7 April 2015, fixed the floor price for offer for sale (OFS) of shares by its promoter viz. the Government of India (GoI) at Rs 315 per share. The floor price for the OFS is at a discount of 2.06% to the stock's closing price of Rs 321.65 yesterday, 7 April 2015. The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence today, 8 April 2015 at 9:15 IST and close on the same date at 15:30 IST. GoI after market hours on 6 April 2015, issued a notice for offer for sale (OFS) of upto 4.93 crore equity shares of the face value of Rs 10 each, representing 5% of the total paid up equity share capital of REC through a sale on the separate window provided by the stock exchanges. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The GoI currently holds 65.64% stake in REC (as per the shareholding pattern as on 31 December 2014).

ICICI Bank before market hours today, 8 April 2015, announced reduction in base rate by 0.25% to 9.75% per annum with effect from 10 April 2015. ICICI Bank also announced a reduction in interest rates for some tenors of retail fixed deposits with effect from 10 April 2015.

State Bank of India has reportedly lowered its base rate by 15 basis points to 9.85% effective 10 April 2015.

HDFC Bank has reportedly cut its lending rates by 15 basis points to 9.85%, effective 13 April 2015.

Dr Reddy's Laboratories and its subsidiary, Promius Pharma, LLC yesterday, 7 April 2015, announced the filing of three 505(b)(2) New Drug Applications (NDAs) with the US Food and Drug Administration (US FDA). The three NDAs - DFD-01, DFD-09, and DFN-11, are in support of Dr Reddy's Proprietary Products group, focused on developing and commercializing therapies in dermatology and neurology.

DFD-01 and DFD-09 are the first dermatology applications submitted to the NDA that have been fully developed leveraging in-house capabilities. DFN-11 is the first development program filed in support of a newly created vertical, focused on the US neurology market.

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Realty stocks will be in focus. The Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday, 7 April 2015, gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.

The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The Bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters and allottees; establishment of Real Estate Regulatory Authority; establishment of fast track dispute resolution mechanism through adjudication; establishment of a Real Estate Appellate Tribunal; offences and penalties etc.

These measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide 'Housing for All by 2022', through enhanced private participation.

Aurobindo Pharma and Glenmark Pharmaceuticals will be in focus. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, yesterday, 7 April 2015, approved two significant foreign investments in the pharmaceutical sector, viz. in Aurobindo Pharma and Glenmark Pharmaceuticals. Approvals have been given for Qualified Institutional Buyers to infuse fresh equity of upto 7% amounting to about Rs 2165 crore into Aurobindo Pharma. The existing FII shareholding is 27.32% in the company. This will enable the company to expand its operations in the areas of anti infective, cardiovascular and central nervous system related ingredients. Aurobindo Pharma employs more than 9500 professionals from 26 countries.

For Glenmark Pharmaceutical, CCEA approved increase in the foreign investment limit by FIIs from 35.07% to 49%. This will result in an inflow of about Rs 2022 crore.

Colgate-Palmolive (India) turns ex-dividend today, 8 April 2015, for third interim dividend of Rs 8 per share for the year ended 31 March 2015.

SKF India turns ex-dividend today, 8 April 2015, for final dividend of Rs 2.50 per share for the year ended 31 March 2015.

Shriram EPC has scheduled a meeting of the board of directors of the company on 10 April 2015, to consider and approve the conversion of the funded interest term loan of the CDR Lenders into equity shares of the company. CDR Lenders refers to the lenders of the company whose loans are restructured under the Corporate Debt Restructuring (CDR) package; issue of equity shares in lieu of the sacrifice amount to the CDR lenders and issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings (SIHL) and use of proceeds from such issuance towards redemption of cumulative redeemable preference shares and the repayment of the unsecured loan.

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First Published: Apr 08 2015 | 8:42 AM IST

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