Tata Power Company announced that Tata Power Renewable Energy (TPREL), a wholly owned subsidiary of the company, successfully issued and allotted guaranteed, unsecured, non-cumulative, redeemable, taxable, listed, rated non-convertible debentures of Rs 575 crore on private placement basis. The announcement was made after market hours yesterday, 15 June 2016. The NCDs will carry a spread of 0.14% above 6 month marginal cost of lending rate (MCLR) of HDFC Bank payable semi annually and are guaranteed by the company. The proceeds from the NCDs will be primarily used to prepay existing higher cost debt in TPREL. The guarantee agreement has been entered to guarantee payment obligation of TPREL pursuant to the NCDs. The guarantee is capped at Rs 625 crore and will fall off once the NCDs are fully repaid. This will create contingent liability not exceeding Rs 625 crore for the company.
Shares of public sector oil marketing companies (PSU OMCs) will be in focus as prices of petrol and diesel were revised with effect from midnight of 15 June 2016. Petrol price was raised by Rs 0.05 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of Petrol in Delhi increased to Rs 65.65 a litre. Diesel price was raised by Rs 1.26 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of diesel in Delhi increased to Rs 55.19 a litre.
Wipro announced the launch of its analytics solution, Data Discovery Platform. The solution provides pertinent business insights across the value chain of an industry through the predefined apps. The platform will enable businesses to embark on an analytics journey with value added services of process simplification and business transformation. The announcement was made after market hours yesterday, 15 June 2016.
NTPC said that pursuant to joint venture agreement dated 16 May 2016 signed with Coal India, a joint venture company, Hindustan Urvarak & Rasayn, with 50:50 shareholding by NTPC and Coal India was incorporated on 15 June 2016. The joint venture company will take up revival of Gorakhpur and Sindri plants of Fertilizer Corporation of India by setting up ammonia urea plants at each locations. The announcement was made after market hours yesterday, 15 June 2016.
Tata Sponge Iron said it successfully bid for 24000 tonnes per annum of Grade G 4 coal from Coal India, in a recently held auction of coal linkages for the sponge iron industry. This tonnage constitutes less than 10% of the company's annual coal requirement. This intimation is based on the information available on the website of MSTC E-Commerce. The company is yet to receive the allotment letter, the company said. The announcement was made after market hours yesterday, 15 June 2016.
Indiabulls Housing Finance said that it proposes to issue 2000 secured non-convertible redeemable debentures with a face value of Rs. 10 lakh each aggregating to Rs 200 crore (plus greenshoe option), on private placement basis, pursuant to special resolution passed by the shareholders of the company at the 10th annual general meeting held on 7 September 2015, on the terms and conditions. The announcement was made after market hours yesterday, 15 June 2016.
Jaiprakash Power Ventures said that a meeting of the board of directors of the company will be held on Friday, 17 June 2016, to consider the recommendations of committee of directors for transfer of 500 megawatts (MW) Jaypee Bina Thermal Power Plant of the company to its subsidiary company. The announcement was made after market hours yesterday, 15 June 2016.
Stocks of aviation companies may extend gains registered yesterday, 15 June 2016, after Union Cabinet approval a civil aviation policy which among other things aims at boosting regional air connectivity. The government has abolished the requirement of 5 years of domestic flying as one of the two key prerequisites for starting international operations by an Indian carrier. Hencforth, an airline can commence international operations provided it deploys 20 aircrafts or 20% of its total capacity (in term of average number of seats on all departures put together), whichever is higher, for domestic operations.
The regime of bilateral rights and code share agreements will be liberalised leading to greater ease of doing business and wider choice to passengers. Open skies policy will be implemented on a reciprocal basis for SAARC countries and countries beyond 5,000 kilometer from Delhi. A method will be recommended by a committee headed by the Cabinet Secretary for the allotment of additional capacity entitlements wherever designated Indian carriers have not utilised 80% of their bilateral rights but the foreign airlines/countries have utilised their part and are pressing for increase in the capacity.
The civil aviation ministry will continue to encourage development of airports by the state government or the private sector or in public private partnership (PPP) mode and endeavour to provide regulatory certainty. Future greenfield and brownfield airports will have cost efficient functionality with no compromise on safety and security. Meanwhile, the existing ground handling policy is being replaced with a new framework to ensure fair competition. All domestic scheduled airline operators including helicopter operators will be free to carry out self-handling at all airports.
The Viability Gap Funding (VGF) will be funded by a small levy per departure on all domestic routes other than Cat II/Cat IIA routes, RCS (Regional Connectivity Scheme) routes and small aircraft at a rate as decided by the Ministry of Civil Aviation from time to time. A detailed scheme will be put up in the public domain for stakeholders' consultations.
The announcement of the government's nod for the civil aviation policy hit the market after trading hours yesterday, 15 June 2016.
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