Sagar Cements said its board has approved selling the entire 6.52 crore equity shares of Rs 10 each held by the company in its joint venture, Vicat Sagar Cement, for Rs 435 crore (approximately Rs 66.68 per equity share) to Parficim S.A.S., France, an affiliate of Vicat S.A., France. This approval is subject to further approval of our shareholders and other approvals, if any, required from the regulatory authorities concerned, the company said.
This transaction is the result of a strategic decision taken by both entities to enable each one focus on its own strengths and capabilities to create value and drive growth, Sagar Cements said in a statement.
Sagar Cements and the Vicat Group had entered into this joint venture in June 2008, with the objective of setting up a 5.5 million tonne plant in Gulbarga, Karnataka. The first phase of this facility, capable of producing 2.75 million tonnes was completed in December 2012 with the commencement of production in January 2013. Sagar's contribution for first phase was Rs 86 crore for its 47% stake in the joint venture.
Sagar Cements said it proposes to utilise the proceeds from this stake sale partly towards purchase of some capital equipment for its Matampally plant, while the remaining sum will be deployed to fund organic and inorganic growth with the objective of playing a larger role in the cement industry in South India.
Banking, realty and infrastructure stocks will be in focus after the Reserve Bank of India (RBI) on Tuesday, 15 July 2014, announced incentives to raise long term bonds for infrastructure financing. RBI said that banks can issue long-term bonds with a minimum maturity of seven years to raise resources for lending to long term projects in infrastructure sub-sectors and affordable housing. The minimum maturity period of the long-term bonds shall be seven years. These bonds will be exempted from computation of net demand and time liabilities (NDTL) and would not be subjected to cash reserve ratio (CRR)/statutory liquidity ratio (SLR) requirements. This exemption will be subject to a ceiling of the eligible credit which has been decided by the RBI.
RBI's regulatory incentives for infrastructure financing come after Finance Minister Arun Jaitley on 10 July 2014 said at the time of presentation of Union Budget 2014-15 that banks will be permitted to raise long-term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending.
The RBI on Tuesday also said that it has issued a number of instructions to banks, specifying the operational guidelines and incentives in the form of flexibility in loan structuring and refinancing so as to mitigate the Asset-Liability Management (ALM) problems faced by banks in extending project loans to infrastructure and core industries sectors.
National Buildings Construction Corporation (NBCC) said that in the Budget speech, Chief Minister of Rajasthan announced to form a joint venture company with NBCC to execute various re-developmental works and construction projects in the State of Rajasthan. In this regard , signing of agreement is in advance stage, the company said.
Bajaj Finserv, Bajaj Finance, CMC, Federal Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank and South Indian Bank will announce their April-June 2014 results today, 16 July 2014.
Pantaloons Fashion & Retail said its board will meet on 18 July 2014, to consider the fund raising proposals for the company, including rights issue.
Gayatri Projects said after market hours on Tuesday, 15 July 2014, that Sembcorp Utilities., a joint venture partner of Gayatri in Thermal Powertech Corporation India, (TPCIL),, has consolidated its stake from 49% to 65% in TPCIL, partly by way of conversion of cumulative participatory redeemable convertible preference shares into equity and partly by way of fresh infusion of equity. Gayatri's stake in TPCIL was retained at 35%.
TPCIL, is a joint venture between Gayatri Energy Venture (GEVPL), a wholly-owned subsidiary company of Gayatri Projects and Singapore-based Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, to build, own and operate a 1,320-megawatt (2x660MW units) coal-fired power plant located near sea coast of Bay of Bengal at Krishnapatnam, Mutukur Mandal, SPS Nellore District of Andhra Pradesh, India. Gayatri Projects issued above clarification with respect to the news article captioned "Sembcorp buys Rs 400 crore stake in power plant"
Tech Mahindra announced after market hours on Tuesday, 15 July 2014, that it will be establishing its new Canadian Aerospace head office in Greater Montrl. This was made possible in part due to the support provided by Montreal International. Tech Mahindra anticipates the creation of approximately 300 jobs over the next three years, mainly in the aerospace industry. The announcement was made at the 2014 Farnborough Air Show. Montrl International, whose mandate is to attract foreign direct investments to the Greater Montrl area, supported and advised the company in its project to establish itself in the region.
Natco Pharma announced after market hours on Tuesday, 15 July 2014, that the Mumbai High Court upheld the compulsory license (CL) granted to the company on Nexavar (sorafenib tosylate) of German drug Major Bayer's patented kidney cancer drug. The Nexavar issue dates back to 9 March 2012, when the then Controller General of Patents issued the first-ever CL to the company to manufacture an affordable generic version of sorafenib tosylate, the anti-cancer drug for which Bayer had obtained a patent.
Aksh Optifibre said after market hours on Tuesday, 15 July 2014, that the committee of Board of Directors of the company in its meeting on 14 July 2014 has allotted 7.43 lakh shares, pursuant to the conversion of foreign currency convertible bonds (FCCBs) aggregating $0.2 million.
Berger Paints India turns ex-dividend today, 16 July 2014, for dividend of Rs 2.20 per share for the year ended 31 March 2014 (FY 2014).
Mphasis turns ex-dividend today, 16 July 2014, for dividend of Rs 7 per share for the year ended 31 March 2014 (FY 2014).
KEC International turns ex-dividend today, 16 July 2014, for dividend of Rs 0.60 per share for the year ended 31 March 2014 (FY 2014).
Eveready Industries India turns ex-dividend today, 16 July 2014, for dividend of Rs 0.50 per share for the year ended 31 March 2014 (FY 2014).
Greenply Industries turns ex-dividend today, 16 July 2014, for dividend of Rs 3 per share for the year ended 31 March 2014 (FY 2014).
Kirloskar Brothers turns ex-dividend today, 16 July 2014, for dividend of Rs 2.50 per share for the year ended 31 March 2014 (FY 2014).
Indag Rubber turns ex-dividend today, 16 July 2014, for final dividend of Rs 6.50 per share for the year ended 31 March 2014 (FY 2014).
DCM Shriram turns ex-dividend today, 16 July 2014, for final dividend of Rs 1.20 per share for the year ended 31 March 2014 (FY 2014).
Balaji Telefilms said its board has appointed Sameer Nair, as Chief Executive Officer (CEO) of Balaji Telefilms and its subsidiary companies from 15 July 2014. He will be designated as a group CEO.
Orchid Chemicals & Pharmaceuticals said its board has approved the delisting of the equity shares of the company from Madras Stock Exchange.
Shriram EPC said its board has decided to defer the proposed rights issue to a later date and the company will be intimating further developments in this regard, if any, accordingly.
Rushil Decor has planned to establish the new project in Karnataka for manufacturing HDF laminated flooring. The promotion capacity of the plant is nearly 36.80 million square feet per annum. As per projection, the company will start the production from the first quarter of financial year 2016-2017, subject to receipt of necessary approval from the stake holders.
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