Monday, May 10, 2010

BOR: Market Outlook: Indian markets are expected to recover a bit today and remain rangebound in near-term.

Market Outlook: Indian markets are expected to recover a bit today and remain rangebound in near-term. 4900 - 5100 range, could probably stay for a while before the market gets some significant strong cues for it to breakout of this range, while overall global undertone remains cautious on world economy.

Global Events to watch for today:

  • 4-Week Bill Announcement
  • 3-Month Bill Auction
  • 6-Month Bill Auction

Global indices Update @ 8:

Dow Jones : 10380 (- 139.8)

NASDAQ : 2265 (- 54.00)

Nikkei 225 : 10498 (+134.0)

Hang seng : 20197 (+276.8)

SGX CNX Nifty : 5102 (+70.50)

INR / 1 USD : 45.58

Stocks in action for the day : Patni, Dabur, RNRL, Engineers India, Dalmia Cement

Patnis may get premium over NTT’s offer to GA: The three Patni brothers, who co-founded and promoted the country’s sixth-largest software exporter, Patni Computer Systems, may get a premium for selling their stake to Japanese strategic investor NTT Data Corp, as compared to private equity firm General Atlantic, said a person with knowledge of the matter. NTT Data is close to acquiring a controlling stake in Patni Computer and is in discussions with its major shareholders that include GA and the brothers. GA holds a shade below 18%, while the Patni brothers, Ashok, Narendra and Gajendra Kumar Patni, together hold 46.54% in the software exporter. The brothers’ stake is important to NTT if it wants management control of the company. The Patni brothers could get an additional Rs 50 per share or a 7-8% premium compared to GA, the person said. GA had invested in Patni Computer in 2002.

Dabur to acquire cos in Africa, the Middle East: FMCG major Dabur said it will go ahead with its overseas acquisition plans this fiscal, particularly in the personal care and healthcare segment, in the Middle East and African countries.

Govt may tweak gas policy to power Anil's Dadri plant: The government may rework natural gas allocation priorities to accommodate Anil Dhirubhai Ambani Group’s (ADAG) Dadri power plant after Reliance Industries (RIL) and Reliance Natural Resources Ltd (RNRL) successfully re-negotiate a gas supply deal based on the prevailing policies. Reliance Power’s proposed 7,480 mw Dadri project is the single-largest gas-based power plant at a single location in the world.

Ansal Properties plans fund-raising via QIP, pref allotment: Ansal Properties and Infrastructure on Friday said its board approved raising up to Rs 1,000 crore via share sale to institutions and preferential allotment to raise about Rs 71 crore. The company would allot 8.5 million shares or 6.94% of pre-issue capital on preferential basis to a set of investors, including Enam Investment Services Pvt Ltd, at Rs 82.50 per share. Following preferential allotment founders holding in the company would fall to about 55.5%, from 59.4% now, the company said adding foreign institutional investors own close to 13% in the company. The funds raised through the preferential allotment will be used for part-financing on-going projects and for expansion of business in various states, the company said. Ahead of the announcement, shares in Ansal Properties, currently valued at a little over Rs 1,000 crore, rose 1.52% to Rs 83.70 in a Mumbai market that fell 1.29%. The realty firm had said in June that it planned to raise up to Rs 1,500 crore through sale of shares to institutions. The Delhi-based company had said it had raised prices of most residential projects between 10-35% in the national capital region, Lucknow, Mohali and Jaipur.

Govt to give 5% discount to retail investors in EIL offer: The government will give a 5% discount to retail investors in the follow-on offer by Engineers India and stick to the conventional book-building process, having seen the strategy yield good results in the recently concluded stake sale offer in SJVNL.

KKR to invest Rs 75cr in Dalmia Cement venture :Confirming the largest private equity investment in India's cement industry, Dalmia Cement (Bharat) Ltd on Friday said Kohlberg Kravis Roberts (KKR) has agreed to buy 15-20% stake in the cement maker's unlisted unit for up to Rs 750 crore. Dalmia would draw Rs 500 crore immediately and has an option to utilise another Rs 250 crore in the next 18 months. KKR will get a 15% stake if the cement maker draws down only Rs 500 crore, but the stake will rise to 20% if it draws additional Rs 250 crore, managing director Puneet Dalmia said.

Shriram Transport -To raise Rs 500 crore through retail NCDs -Rs 500 crore includes Rs 250 crore of greenshoe option -To raise subordinate debt & secured NCDs -To raise 3-year NCD at 9.75%, 5-year NCD at 10.25% -To raise double bond around 11% with minimum tenure 5 years-Retail NCD issue to open on May 17


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