Reliance Industries after market hours on Friday, 3 June 2016, announced that it has restarted its purified terephthalic acid (PTA) plants, and is ramping up production to full capacity at Dahej. The PTA plants had been shut for a brief period owing to increased water salinity. RIL said it ensured PTA supplies to downstream customers from its Hazira and Patalganga plants during the brief shutdown at Dahej. Now, the customers will be getting PTA from all three locations, RIL said.
Housing Development Finance Corporation (HDFC) announced after market hours on Friday, 3 June 2016, that the board of directors of HDFC ERGO General Insurance Company (HDFC ERGO), a non listed subsidiary of the company, has approved the acquisition of a 100% stake in L&T General Insurance Company for an aggregate consideration of Rs 551 crore.
The board of HDFC ERGO also approved the plan to merge the two companies subject to all regulatory approvals. The acquisition would help HDFC ERGO improve its market position. HDFC ERGO expects significant cost synergies arising out of business, technology optimization and rationalization of offices.
HDFC ERGO, a 51:49 joint venture between housing major HDFC and ERGO International, Germany (part of Munich Re Group), is the 4th largest private sector general insurer in India and offers all lines of general insurance products including motor, health, personal accident, home, fire, marine, aviation, liability, crop insurance etc.
In a separate announcement after market hours on Friday, 3 June 2016, L&T said that it entered into a share sale and purchase agreement with HDFC ERGO General Insurance Company (HDFC ERGO) for sale of its entire stake in L&T General Insurance Company (LTGI), a wholly owned subsidiary of L&T, for a total consideration of Rs 551 crore.
The transaction envisages share sale by the Company to HDFC ERGO and subsequent merger of HDFC ERGO and LTGI.
The transaction is subject to various approvals, including approval of Insurance Regulatory and Development Authority of India and the Bombay High Court.
Upon closing, the L&T Group would exit from the general insurance and health insurance business. LTGI gross earned premium income during the year 2015-2016 was Rs 483 crore, constituting around 0.5% of the company's consolidated revenue for the year 2015-2016 and reported a net worth of Rs 142 crore as on 31 March 2016. The share sale is part of the company's strategy of exiting from its non-core activity.
Sun Pharmaceutical Industries (Sun Pharma) announced that as a part of its manufacturing consolidation in the US, one of its wholly owned subsidiaries has entered into an agreement with Frontida BioPharm, Inc (Frontida) for divestment of its two oral solid dosage manufacturing facilities located at Philadelphia, PA, and Aurora, IL both in the US, along with 15 related pharmaceutical products. In connection with the transaction, Frontida has agreed to continue manufacturing certain products for Sun Pharma at these facilities on a contract basis for a predetermined period. It has also agreed to offer employment to all production, quality and administrative personnel at the sites. During the divestment process, Sun Pharma was cognizant about ensuring the continued supply of quality products to patients and protecting the interests of its employees working in these units, the company said. The impact of this development on Sun Pharma's consolidated financials and operations is not material, the company said. Sun Pharma did not disclose other details of the transaction. The announcement was made on Saturday, 4 June 2016.
Maruti Suzuki India (MSIL) after market hours on Friday, 3 June 2016 reported a 1.57% growth in its total production at 1.29 lakh units in May 2016 over May 2015.
Cadila Healthcare announced on Saturday, 4 June 2016, that the United States Food and Drug Administration (USFDA) approved the company's plan to initiate a phase 2 clinical trial of Saroglitazar in patients with non-alcoholic Steatohepatitis (NASH) of the liver. This randomized, double-blind phase 2 trial will evaluate Saroglitazar 1mg, 2mg and 4mg Vs. Placebo. Commenting on the development, Pankaj Patel, Chairman and Managing Director of Cadila Healthcare said that NASH is an area of unmet healthcare need as there are currently no drugs approved for the treatment of NASH. Saroglitazar has significant and differentiated effect on hepatic steatosis, while it shows all other beneficial effects on reducing inflammation and fibrosis in the liver in NASH models, Patel said. With a phase III trial in biopsy proven NASH patients ongoing in India and a phase II trial in NASH patients planned in USA, Cadila is committed towards developing this drug for millions of patients suffering from NASH, Patel said.
Jubilant Life Sciences announced after market hours on Friday, 3 June 2016, that it has received Abbreviated New Drug Application (ANDA) final approval for Levetiracetam Injection USP, 500 mg/5 mL (100 mg/mL), the generic version of Keppra Injection 500mg/5mL (100mg/mL) of UCB, which is used for the treatment of epilepsy. As on 31 March 2016, Jubilant Life Sciences had a total of 739 filings for formulations of which 517 have been approved in various regions globally. This includes 72 ANDAs filed in the US, of which 44 have been approved and 46 Dossier filings in Europe.
Indiabulls Real Estate announced after market hours on Friday, 3 June 2016, that its 100% subsidiary, Tapir Realty Developers, has entered into a joint development agreement with Oricon Properties, a subsidiary of Oricon Enterprises, for development of 7,810 square meters plot situated at Worli in Mumbai.
Chembond Chemicals' board of directors at its meeting held on 4 June 2016, approved 2-for-1 stock split proposal. The announcement was made on Saturday, 4 June 2016.
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