PSU OMCs and auto stocks will be in focus after diesel prices were hiked by 50 paise per litre, but petrol rates remain unchanged. The price increase, excludes local sales tax or VAT and were effective from Sunday, 1 December 2013. 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 in November 2013 were 40,863 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for November 2013 were 37,192 units.
The company's sales of commercial vehicles in November 2013 in the domestic market were 26,816 units, LCV sales were 19,993 units, while M&HCV sales stood at 6,823 units. Sales of passenger vehicles for November 2013 were at 10,376 units. Sales of the Nano/Indica/Indigo range in November 2013 were 7,910 units. The Sumo/Safari/Aria/Venture range sales were 2,466 units. The company's sales from exports were 3,671 units in November 2013.
Mahindra & Mahindra (M&M) on Sunday, 1 December 2013 reported a 18% decline in total auto sales to 39,255 units in November 2013 over November 2012. Passenger Vehicles segment sales (which includes UVs and Verito) dropped 32% to 16,771 units in November 2013 over November 2012. Domestic sales fell 22% to 36,261 units in November 2013 over November 2012. The 4-wheelers commercial segment sales declined 8% to 13186 units while the 3-wheelers segment sales fell 15% to 5,861 units in November 2013 over November 2012. Exports for the month stood at 2,994 units as against 1,388 units in November 2012, representing a substantial growth.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, "Post the festive season month of October, the auto industry has turned to further de-growth and continues to remain subdued. Unless some concrete measures are provided for its revival, we do not foresee any immediate turnaround. Factors such as increase in input costs and the depreciating rupee have not helped in any way. At Mahindra, we continue to focus on operational excellence to augment our overall performance and remain cautiously optimistic of the situation".
Separately, M&M reported a 13% growth in total tractor sales to 23,119 units in November 2013 over November 2012. Domestic sales rose 13% to 22,343 units in November 2013 over November 2012. Exports rose 8% to 776 units.
Speaking on the sector's monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said "Following the festive season, we are happy to keep up our sales momentum with a growth of 13% in November 2013. On the back of a good monsoon, we expect the robust demand for tractors to continue during the remaining months of this financial year".
L&T after market hours on Friday, 29 November 2013 said it is evaluating alternatives for monetisation of certain assets of its subsidiary L&T Infrastructure Development Projects (L&T IDPL), including a potential initial public offering and listing in Singapore of selected road assets of L&T IDPL, through a business trust in Singapore. The proposed transactions are subject to various factors including approvals and market conditions and may or may not be completed, L&T said. In the meantime, shareholders and other investors are reminded to exercise caution when deal in the company's shares, pending any definite announcement from the company, L&T said in a statement.
L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.
Videocon Industries said that the board of directors of the company at its meeting held on 29 November 2013 proposed to seek shareholders approval, authorizing the board, to issue equity shares or any other convertible instruments for an amount not exceeding Rs 5000 crore, at an appropriate time, by way of follow on issue, private placement basis, qualified institutional placement basis, American depository receipts (ADRs), global depository receipts (GDRs), foreign currency convertible bonds (FCCBs) or any other mode or mechanism, subject to necessary approval and consent.
Shares of infrastructure companies will be in focus after the Securities and Exchange Board of India (Sebi) on Friday, 29 November 2013, relaxed fundraising rules for infrastructure debt mutual funds in its continued bid to channel long-term capital to finance infrastructure projects in the country. Sebi said that it will allow foreign feeder funds that get at least 20% of their managed assets from long-term investors such as sovereign wealth funds, pension funds and insurance funds to qualify as strategic investors.
Bank stocks will be in focus after the Reserve Bank of India (RBI) on Friday, 29 November 2013, said that commercial banks will now have the option to pay interest on savings accounts and term deposits at intervals shorter than quarterly intervals. Banks were hitherto required to pay interest on savings deposits and term deposits at quarterly or longer intervals.
Pharma stocks will be in focus as Cabinet considered on Friday, 29 November 2013, the proposal of the Ministry of Commerce and Industry, for review of the policy on foreign direct investment in the pharmaceutical sector. The Cabinet decided that the current policy in brownfield and greenfield projects in the pharmaceutical sector will continue subject to the additional condition that in all cases of FDI in brownfield pharma, there will not be any non-compete clause in any of the inter se agreements.
Power Grid Corporation of India (PGCIL) has fixed the price band for the follow on public offer (FPO) at Rs 85 to Rs 90 per share. The price band has been approved by the company's board of directors at its meeting held on Friday, 29 November 2013.
PGCIL is coming up with a FPO which includes 13% of fresh issue of shares and 4% disinvestment of shares by Government of India (GoI). The issue opens on 3 December 2013 and closes on 5 December 2013 for institutional investors and 6 December 2013 for retail category of investors & employees. A discount of Rs 4.50 per share (which is 5% of the top end of the price band) will be available to retail investors and eligible employees on the issue price on allotment.
50% of the net issue is allocated to Qualified Institutional Buyers (QIBs), 35% for Retail category and 15% for High Network Investors (HNI). Above 0.38% of the issue is reserved for employees. Retail category and employees shall be given a discount of 5% on the issue price. With the above, the GoI holding of PGCIL will come down to 57.89% from the present level of 69.42%. Presently, there is no plan for further dilution of equity in PGCIL, in the medium term, the company said.
Idea Cellular said its board of directors have subject to approval of the shareholders, approved increase in the aggregate investment limit of Foreign Institutional Investors (FIIs) from 24% to 49% of the paid-up equity capital of the company. Further to the above, an Extraordinary General Meeting of the members of the company has been convened on 26 December 2013, inter-alia, for obtaining approval of the members for the proposed increase in the aggregate investment limit of FIIs from 24% to 49% of the paid-up equity capital of the company.
Marico after market hours on Friday, 29 November 2013 said it has stopped manufacturing activities at its Dehradun Camp Road Plant and initiated steps for a closure of the plant. The Dehradun Camp Road plant was set up in 2003 for manufacture of cosmetics. Marico said it believes that this closure has no significant bearing on the performance of the company.
Financial Technologies (India) (FTIL)'s net profit fell 61.16% to Rs 27.01 crore on 12.83% decline in total income to Rs 128.92 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Friday, 29 November 2013.
As on 30 September 2013, the company's investments aggregating Rs 494.65 crore in and loans and advances to/receivables aggregating Rs 1173.52 crore from certain subsidiaries and a joint venture (JV) company, which presently have accumulated losses, but are expected to be recovered, and have their values unlocked in the near future, since these companies are already at various stages of executing their business plans and operations, with expected profitability, FTIL said.
In view of the developments in respect of its subsidiary National Spot Exchange (NSEL), during the quarter, on conservative basis, the company has made provision towards diminution other than temporary in value of long term investments of Rs 44.99 crore for its investment in NSEL, the company said.
Total outstanding loan of Rs 210.83 crore and interest thereon of Rs 1.79 crore, aggregating Rs 212.62 crore as on 30 September 2013, are dependent on the recovery by NSEL from defaulted members and NAFED and the recovery of amount from NSEL will be reviewed periodically, FTIL said.
There are some writ petitions, public interest litigation (PIL), civil suits filed against NSEL, wherein FTIL has also been made a formal party in these writ petitions and civil suits only, it being the holding company of NSEL, the company said. FTIL further added that it is a separate and independent legal entity and, as such, has no responsibility or liability whatever towards the dues of or claims against NSEL.
The writ petitions and civil suits are primarily against the various defaulting members of NSEL, failing which the claim has been made against NSEL as guarantor and failing which against other parties including FTIL. Therefore, at this stage, there are no direct ascertainable financial claims against the company, and hence, direct financial implications on the company, if any, that may arise due to ultimate payment default on NSEL cannot be ascertained, FTIL said.
Hinduja Global Solutions after market hours on Friday, 29 November 2013 said that HGS Business Services (a wholly owned subsidiary of the company) has merged in to HGS International Services (a wholly owned subsidiary of the company) as per scheme approved by the High Court of Bombay vide order dated 25 October 2013. The appointed date is 1 July 2013 and effective date works out to 28 November 2013 being the date on which the Order of High Court of Bombay with Registrar of Companies, Maharashtra.
Flexituff International's board of directors at a meeting held on Friday, 29 November 2013, approved raising of funds of upto Rs. 45 crore by way of preferential issue of equity shares or compulsory convertible debentures to International Finance Corporation. The board also approved raising of funds upto $9 million in foreign currency, through issue of foreign currency convertible bonds (FCCBs) convertible into equity shares.
The company will hold an extra ordinary general meeting of the members of the company on 23 December 2013 for obtaining the authority/approval of the members of the company for the abovementioned agenda items.
Swan Energy after market hours on Friday, 29 November 2013 said that the Gujarat Maritime Board (GMB) has selected the company as the developer of Greenfield LNG Port Terminal with Floating Storage and regassification Unit (FSRU) project at Jafrabad, Gujarat on built-own-operate-transfer (BOOT) basis.
Kirloskar Electric Company said that as part of its continued efforts to improve the operating efficiency and optimize the productivity of the resources, the company has announced lay-off for 53 workmen at Electronic unit at company's factory situated in Mysore with effect from 25 November 2013 till 24 December 2013. The turnover of the above unit in the total turnover of the company is less than 1.5%, the company said.
R Systems International's board of directors at a meeting held on Friday, 29 November 2013 approved a 10-for-1 stock split.
Mirc Electronics after market hours on Friday, 29 November 2013 said its board of directors will meet on 4 December 2013, to consider matters related to raising of funds through issue of equity shares through rights issue to the shareholders of the company and increase/re-classify in the authorized share capital of the company including matters related/incidental thereto.
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