Tuesday, September 14, 2010

Market Outlook: Indian markets are expected to open in positive ground

Market Outlook: Indian markets are expected to open in positive ground and trade in the range of 5720 – 5790. The crucial support on the downside for the Nifty is at 5690.

Global events to watch:

Þ ICSC-Goldman Store Sales

Þ Retail Sales

Global indices Update @ 8:

Dow Jones : 10544 (+81.36)

NASDAQ : 2285 (+43.23)

Nikkei 225 : 9300 (- 21.17)

Hang seng : 21686 (+28.57)

SGX CNX Nifty : 5765 (+02.00)

INR / 1 USD : 46.31

Stocks in action for the day: Maruti, S Kumars, Kale Cons, Suzlon, Ispat, Ess Dee, Cairn...

HDIL - -HDIL QIP opens; to raise between USD 150-250 million-HDIL QIP issue priced at Rs 268.18/share-JPMorgan sole banker to HDIL QIP issue

S Kumars - -S Kumars launches QIP; plans to raise USD 25-50 million -S Kumars QIP issue priced at Rs 80/share -Antique, JPMorgan, Edelweiss bankers to S Kumars QIP

L&T Infra Finance – Sources -Looking to raise up to Rs 700 crore before December 2010 -SBI Caps, JM Financial & ICICI Sec short listed bankers to issue

Vedanta deal - -ONGC consent not needed for Vedanta deal under PSC -Cairn Energy formally seeks GoI’s consent for Vedanta Deal -Cairn hopes to partner Oil Ministry to close Vedanta Deal Alert- Bill Gammell wrote to Oil Secretary on September 9 Alert- Gammell responds to Oil Ministry letter of August 31 Alert- Oil Ministry letter told Cairn to file for GoI approval

IPOs -Eros Entertainment issue opens on September 17, closes on September 21 -Mircosec Fin IPO opens on September 17, closes on September 21

OP Bhatt says -Airline loan restructuring will have to be a multi pronged approached -Approach to include equity infusion, rate reduction and repayment rescheduling

Oil spill - Sources -Oil spill at Kakinada coast in Andhra Pradesh; -No oil drilling firm claims oil-spill; -ONGC, Reliance and Cairn have oil-rigs in Kakinada coast

Ess Dee set to take on Hindalco in household aluminium foils market: Ess Dee Aluminium, which acquired India Foils from Sterlite Industries in 2008, is poised to mark its maiden entry into the retail market for household aluminium foils, pitching it against the industry leader Hindalco Industries. Ess Dee`s foray into foils comes at a time when global aluminium giants, like Novelis, have decided to shut their foils unit in the UK and consolidate operations across Europe. Earlier, Alcoa too had divested Reynolds, its packaging and consumer business best known for the `Reynolds` foil wrap.

Ispat lenders may sell out to Tata Steel, Arcelor Lenders to Ispat Industries, rattled by the steelmaker`s shaky finances, are exploring options of selling their shareholding in the company to rivals Tata Steel and ArcelorMittal India, according to people involved in the preparation of such a plan. The move by the lenders is aimed at protecting their exposure. Mumbai-based Ispat, owned by Pramod and Vinod Mittal, has about 15 lenders, including financial institutions, banks and insurance companies, which had together lent about Rs 65 billion to the steelmaker. According to a debt restructuring plan approved by shareholders, any default in payment by Ispat will prompt the lenders to convert part of their loan into equity. This will raise the shareholding of the lenders to about 31% from 10.86% now. At an annual general meeting last year, Ispat`s shareholders had cleared the proposal to allow lenders to acquire 19.53% equity, worth Rs 6.65 billion, in case of a default.

GSK to invest Rs 3 bn in Horlicks relaunch Packaged consumer goods company GlaxoSmithKline Consumer Healthcare (GSKCH) on Monday said it would invest over Rs 3 billion on repositioning original milk food drink Horlicks as the company`s umbrella brand. Apart from relaunching Horlicks with a new look and promoting the brand across media, including the digital and mobile marketing space, GSK is also looking at foraying into other categories like breakfast and mid-day meals. Shubhajit Sen, E-VP (marketing) at GSK, told reporters that the company plans to achieve sales of Rs 3 billion over the next 18-24 months from its foods business. Recent category extensions of Horlicks, estimated to be a Rs 15 billion plus brand, include biscuits, cereal bars and instant noodles.

Den Networks to raise Rs 7.5 bn for digitization Cable distribution firm Den Networks said it will raise fresh capital up to Rs 7.5 billion over the next 3-6 months for strengthening operations and digitization of services. ``We have received an approval to raise up to Rs 7.5 billion, which will be done over the next 3-6 months. It could be pure debt or pure equity or a mix of both,`` Den Networks President (Strategy & Business Development) Mohammad Ghulam Azhar said. All routes such as QIP, GDRs or preferential allotment will remain open, he added. The company said the proceeds of the capital issue will be used for strengthening its operations in the country and digitization of its services.

Sterlite Energy to resume work at Orissa unit Vedanta Resources group company Sterlite Energy will resume operations at its 600-megawatts (mw) independent power unit at Jharsuguda in Orissa from September 13, following efforts taken by the company to reduce emission of fly ash. The plant, which is part of Sterlite Energy`s 2,400-mw independent power plant project, was temporarily shut after locals protested against release of fly ash from the plant. Sterlite Energy is investing around Rs 100 billion for the IPP project. Jharsuguda district collector Shivnarayan Mishra said company officials assured him about running the plant after they repaired the electro static precipitators - a device used to remove liquid droplets or solid particles from gas, preventing emission of fly ash into the air.

Shriram, TPG to buy Vishal for Rs 1 bn After teetering on the verge of a complete collapse for months, troubled retail chain Vishal Retail said on Monday that its board has approved a sale of its business to two acquirers, successfully taking on board a clutch of lenders, who agreed to a restructuring plan spanning years. San Francisco-based private equity player TPG Capital will buy the wholesale arm of the business, while Chennai-headquartered Shriram Group will buy the retail operations. Both deals have a combined value of Rs 1 billion. This clears the way for new management at the retail chain that operates over 170 stores across the country under brands such as Vishal Megamart, Vishal Retail and Vishal Fashion Mart. The two buyers will take over the assets and certain liabilities of the respective businesses, but Vishal Retail will retain its properties in Hubli, Kolkata, Dehradun and Jabalpur, the company disclosed at BSE.

Electrotherm in talks to acquire US-based Firefly Gujarat`s electric two-wheeler maker Electrotherm India (EIL) is looking to acquire Illinois based lead acid battery manufacturer Firefly Energy. The US-based company has already filed for bankruptcy in March. EIL owns the popular electric scooter brand `Yobykes`. ``Yes, negotiations are in a very advanced stage with Firefly. It makes electric batteries, and is a suitable acquisition target for us as there are significant synergies. The company has already filed for bankruptcy in the US,`` confirmed a highly placed source in the company. However, he refused to divulge details on the probable deal size, but Electrotherm could be purchasing Firefly`s assets.

Manjushree plans Rs 1.4 bn expansion Manjushree Technopack, the Bangalore-based specialty plastic packaging solutions provider, is set to double its manufacturing capacity of PET bottles and pre-forms to 65,000 tonnes per annum for an investment of Rs 1.4 billion. Presently, the company manufactures 30,000 tonnes per annum in its two plants at Bangalore. ``We are planning to more than double our capacities as there is a huge demand for pre-forms from the FMCG and beverage companies. We have also entered into supply arrangements for PET jars with pesticide and seed suppliers, which is opening up business opportunity for us,`` Vimal Kedia, MD, Manjushree Technopack said.

Nestle to invest Rs 5 bn in food processing unit The food processing sector is gradually gaining momentum in the state. After a string of investment proposals from biggies in the sector like Britannia, ITC, Parle Agro Indo Nissin and Future Foods, another behemoth in the packaged food industry-Nestle has evinced interest in setting up a state-of-the-art food processing unit in the state at an investment of around Rs 5 billion. The food processing facility of Nestle would be spread over 50 acres and the Industrial Infrastructure Development Corporation of Orissa (Idco) has already identified land for the purpose between Bhubaneswar and Khurda, an official source told Business Standard.

Inclusion in T2T from September 17: Axis IT&T, Deccan Gold Mines, Bafna Spinning Mills, Gujarat Borosil, Megasoft, Raj Television

Pantaloon Retail B-DVR: Allots 50 lakh shares to Future Corporate Resources at Rs 183/share

Prism Cement: Lock out at tile manufacturing plant at Karaikal in Pondicherry

Lafarge’s Greenfield plan in HP has run into environmental trouble – ET

Sonata Software promoters looking to exit co, appoints KPMG as advisors – ET

Lenders may oppose sale or Vishal Retail over transaction value – BS

Piramal’s to exit the real estate PE biz – BS

Suzlon plans R&D center, listing in China

Kale Consultants open offer at Rs 172/sh, offer opens on November 5, closes on November 24

Wyeth sues DRL over drug patent over anti-depressant drug – FE

SC scraps mining leases of Jindal Stainless Steel and Kalyani Steel, co can re-apply – DNA

Maruti offering big discounts despite rocketing sales – DNA

Gayatri Projects may rope in Sembcorp for Krishnapatnam power plant expansion – DNA

Oil dealers to go on strike on September 20


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