Shares of sugar companies will be in focus after Uttar Pradesh (UP) government retained last year's state advised price of Rs 280 per quintal for sugarcane for the 2013-14 crushing season which began in October. Private sugar millers' appeal for a lower rate was reportedly not considered and the waiver was insignificant. Private sugar mills have been posting losses on account of selling sugar at lower prices.
Bombay Dyeing & Manufacturing Company will be watched after media reports suggested that the Bombay High Court on Wednesday, 20 November 2013, held that the company was within its rights in deciding which of its properties in Wadala and Lower Parel it wanted to surrender to the BMC and MHADA under Integrated Development Scheme as provided under the Development Control Rules (DCR).
According to reports, Mill workers' unions had argued that the mill cannot take advantage of the composite scheme and surrender land from its property in Wadala alone and retain the more expensive textile mill property in Lower Parel for redevelopment. Chief Justice Mohit Shah and Justice M S Sanklecha, however, allowed Bombay Dying to surrender its land in Wadala in lieu of its land at Lower Parel. Bombay Dyeing will now surrender 66,651 square metres (sq m) from its Spring Mills property in Wadala.
The company was required to hand over 52,331.55 sq m at Wadala and 12,823.39 at Lower Parel to the two agencies. It had urged the court to allow it to submit the land at one location in Wadala, instead of separately under the section 58 of DCR, reports added.
Future Retail will be watched after the National Stock Exchange of India (NSE) said it would exclude Future Retail from the futures and options (F&O) segment. NSE said contracts for new expiry months in Future Retail will not be issued on expiry of existing contract months. However, the existing unexpired contracts of expiry months November 2013, December 2013 and January 2014 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months. Accordingly, no contracts shall be available for trading in the security with effect from 31 January 2014.
Reliance Industries (RIL) will be watched on media reports that the government has slapped an additional penalty of $792 million on RIL for producing less than targeted natural gas from its eastern offshore KG-D6 block.
State-run Shipping Corporation of India (SCI) reportedly announced a freight rate hike of up to $500 for 40-feet containers on the India-Europe sector. The hikes, for traffic from India to Europe, the Mediterranean, the Black Sea and the Red Sea trade route, are applicable from 1 December 2013, reports added.
SKS Microfinance said that the Reserve Bank of India (RBI) has classified the company as non-banking financial company-micro finance institution (NBFC-MFI) (non-deposit taking) from its existing status of non-banking financial company (non-deposit taking) systematically important (NBFC-ND-SI), effective from 18 November 2013.
Jet Airways (India) and Etihad Airways, the national carrier of the United Arab Emirates, after market hours on Wednesday, 20 November 2013, announced that both airlines closed the transaction for the subscription of a 24% equity stake by Etihad Airways in Jet Airways. All requisite Indian regulatory approvals had been obtained by 12 November 2013. Jet Airways has on 20 November 2013, issued and allotted 2.7 crore shares of a face value of Rs. 10 each at a price of Rs. 754.7361607 per equity share on a preferential basis to Etihad Airways.
Consequent to the above allotment, the paid up share capital of Jet Airways stands increased to 11.35 crore shares of Rs. 10 each. Following this issue and allotment of the said equity shares on a preferential basis to Etihad Airways, Etihad Airways holds 24% of the post issue paid up share capital of Jet Airways (on a fully diluted basis). Additionally, Mr. James Hogan and Mr. James Rigney, being nominee Directors of Etihad Airways, have been appointed as additional directors on the board of directors of Jet Airways as from 20 November 2013.
Mr. Naresh Goyal, Chairman of Jet Airways said: The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefitting our customers who will now have access to a more expanded global network.
Mr. Goyal also stressed that together with Etihad Airways, Jet Airways would enhance connectivity for tourists, business travellers, Indian families and the wider travelling public.
Mr. James Hogan, President and Chief Executive Officer of Etihad Airways said: India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy. Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier.
Mr. Goyal and Mr. Hogan confirmed that the collaboration between the airlines would commence immediately with a view to delivering network and service benefits to customers as soon as possible. Specific details will be released progressively.
Jet Airways (India) also said after market hours on Wednesday that the board of directors of the company has approved the sale of the Jet Privilege Frequent Flyer Programme business of the company to its subsidiary, Jet Privilege as a going concern on a slump sale basis. The company and Etihad Airways PJSC have also agreed to make equity investment in Jet Privilege following which Jet Privilege will become 50.1% owned by Etihad Airways PJSC (with Jet Airways holding approximately 49.9%).
The consummation of the transaction is subject to the approval of the Competition Commission of India and will only be effected after receipt of such approval, Jet Airways said.
Sasken Communication Technologies said it allotted 12 lakh convertible warrants to Ira Bhaduri on 18 November 2013 on preferential basis. Each warrant is convertible into an equity share at Rs 120.25 each. The said allottee has paid 25% of the consideration and the remaining 75% will be paid when the allottee applies for the underlying equity shares, the company said.
Reliance Broadcast Network (RBN) said that Credit Analysis & Research has assigned rating of 'CARE AAA (SO)' [Triple A (Structured Obligation)] to long term bank facilities of Rs 12 crore of RBN.
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