* ECONOMY : Chief Statistician says GDP may grow 9% in Apr-Jun Q on strong
consumer demand
* POWER : power regulator likely to propose Rs 5/unit cap on sale of power from
coal fired plants in short term mkt
* AUTO : truck sales in May grows 74% on low base & higher demand for cargo
transportation from mfg & agri sectors.. Separately auto majors rule out px
hike as of now inspite of soaring sales & rising input costs
* BANKING : credit offtake for 1 yr period ended 21st May @ 17.96% v/s 15.2% YoY
* RCOM : press rpts that promoters considering to sell a strategic stk in the co
as it seeks to infuse fresh equity to fund its foray into 3G telephony.. rpts
co considering a merger with SA's MTN grp or infusion of fresh equity from a
strategic foreign investor
* GTL INFRA : rpts co in talks with Reliance Infratel, the telecom tower arm of
Reliance Communications for a strategic partnership
* RIL : plans entry into telecom sector by building low cost handsets for 3G
segment & offer airtime bundled schemes later
* SHREE RENUKA : rpts co seals deal with Brazil's Equipav SA at a renegotiated
price which is 25% lower than its original bid
* UNITECH : promoters increase stk by 1.3% to 46.3% thru conversion of warrants
* INFOTECH ENTERPRISE : signs long term agreement with Seawell AS of Norway to
provide engineering support services
* CASTROL : plans to push rural sales by building distribution infra to reach
out to all villages.. To take products to 600k villages from current 5-7k
* NTPC : set to acquire a controlling interest in a 720mn ton coal mine in
Western Australia in a deal valued at $1-1.5bn
Market News & Trends
Corporate News – Industry trends
– ADAG is ready to sell a strategic stake in RCom as the company seeks to infuse
fresh equity to fund its foray into 3G telephony and wireless broadband access.
The company is considering two options: a merger with South Africa’s MTN or
infusion of fresh equity from a strategic foreign investor. (ET)
– NTPC is set to acquire controlling interest in a 720mn tonne coal field in
Australia in a deal valued at $1-1.5bn, which will enable it to fire about 3,500
mw of power capacity. (ET)
– Sun Pharma has rejected a $215mn offer from US-based banker and financial
advisor Guggenheim Securities to buy its 36% stake in Israel's Taro Pharma. The
offer valued Taro's shares at $15 each, a 93% premium over what Sun Pharma
paid to acquire 14.4mn shares in 2007. (Mint)
– The Hinduja group plans to raise nearly $1bn through an initial share sale of its
lubricant arm Petromin in Saudi Arabia this year. (ET)
– JSW Steel will raise about Rs2,100cr through an issue of warrants to promoters
on a preferential basis to help cut debt. (ET)
– GTL is believed to be in talks with Reliance Infratel, the telecom tower arm of RCom for a strategic partnership. (BS)
– RIL may start work on a multibillion-dollar chemical plant this year, reviving a project to meet India’s surging demand for the raw materials for plastics,
drugs and textiles. (ET)
– Shree Renuka Sugars is negotiating a 25-28 % reduction in the acquisition
price for its proposed Equipav buyout. SRS will now pay anywhere between
Rs1,100cr and Rs1,150cr against the earlier price of Rs1,530cr. (ET)
– Godrej Consumer Products has acquired an Argentinian hair care company
Argencos, making it the company’s second buyout in Latin America in less
than two weeks. (ET)
– GMR Energy has raised Rs350cr from IDFC Group for a significant minority
stake. The transaction is part of the GMR Energy’s plan to raise Rs1,600cr
through the equity route to meet its immediate requirement. (ET)
– Sasol plans to spend $10bn in India in partnership with the Tata Group on a
block awarded last year, following similar investments in Indonesia and China.
The South African company plans to produce 80,000 barrels a day of motor
fuel by 2018 from a coal block in Orissa. (ET)
– Adani Enterprises has placed orders for two new capesize bulk carriers with
South Korea's Hanjin Heavy Industries and Construction Co worth around
$120mn. (Mint)
– Aditya Birla Minacs announced the acquisition of US-based Bureau of
Collections Recovery, an accounts receivables management company, in an
all-cash transaction. The deal amount was not disclosed. (BS)
Economic/Regulatory development
– Net profits in the just-ended fiscal for 2,046 manufacturing companies
gained 23%, a bounce-back from the previous year when they fell 10%, on the
back of significant savings in raw material costs and interest expenses. (Mint)
– The DoT is seeking legal opinion on whether it can avoid consulting the Trai
before making changes to existing rules that govern the telecom sector.
(Mint)
– The government plans to price domestic coal on par with global rates, a
move that could lead to higher power tariffs. (DNA)
