Sesa Goa mulls to buy iron ore mine in Kolha-Roida, Orissa: Report

Sesa Goa is reportedly looking to buy iron ore mines in Kolha-Roida, Orissa. The mine is owned by Orissa Minerals Development (OMDC), a company under the ministry of steel and a subsidiary of Rashtriya Ispat Nigam. Sesa Goa is one of the eleven companies and the biggest of the lot to have bid for development of Kolha-Roida mine which was tendered by OMDC in January 2011.
Kolha-Roida mine is spread over nearly 255 hectares (ha). It is the third-biggest mine in the company’s portfolio in terms of area covered. The other bidders include companies like Hyderabad-based Ramky Infrastructure and the mining arm of Kolkata-based Adhunik Metaliks. Sesa Goa had failed to renew a mining contract for Thakurani mine in Orissa in November last year.
Recently Sesa Goa had announced that the Honorable Supreme Court of India has, vide order dated February 07, 2011, upheld the order of single judge of high court of Bombay dated December 18, 2008 approving the Scheme of amalgamation of Sesa Industries with Sesa Goa with appointed date of April 01, 2005.

Info Edge to invest Rs 1 crore in Nogle Technologies

Info Edge (India) has approved an investment of up to Rs 1 crore in Nogle Technologies, an online information sharing portal.
Recently, the company had announced that it is planning to buy multiple internet businesses and build a portfolio of web properties that could be a significant revenue contributor in five years for the company. The company will spend part of its Rs 400 crore cash reserve for these buyouts.
Info Edge (India) owns one of the leading job portals naukri.com. The company is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. The company has a network of 67 offices spread across in 41 cities in India.

BF Utilities trades in green as subsidiary completes FDI process

BF Utilities is currently trading at Rs 753.75, up by 10.00 points or 1.34% from its previous closing of Rs 743.75 on the BSE.

The scrip opened at Rs 755.00 and has touched a high and low of Rs 769.90 and Rs 752.00 respectively. So far 74,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 5 has touched a 52 week high of Rs. 1143.90 on 24-Aug-2010 and a 52 week low of Rs. 649.20 on 10-Feb-2011.

Last one week high and low of the scrip stood at Rs. 789.90 and Rs. 678.15 respectively. The current market cap of the company is Rs. 2876.49 crore.

The promoters holding in the company stood at 66.13% while Institutions and Non-Institutions held 2.80% and 31.07% respectively.

BF Utilities’ all transactions in relation to the FDI in Nandi Economic Corridor Enterprises (NECE) have been recently completed by NECE. NECE is a company incorporated for and undertaking the implementation of Phase I of the Bangalore Mysore Infrastructure Corridor Project and an indirect subsidiary of BF Utilities.

The board of directors of BF Utilities, the promoter and indirect holding company of NECE has approved the proposal for, and signing of definitive agreements in relation to, foreign direct investment of a sum of Rs 500 crore. The approval was granted at its meeting held on December 24, 2010.

BF Utilities is engaged in power generation through wind mill technology. The company was set up to satiate the power requirements of the Kalyani Group companies, which have business interests in the areas of steel making, forging, machining, etc.

Call rates surge in the second week of the reporting cycle; tax outflows skew liquidity conditions

The Inter-bank call money rates were at 7.55/60% almost steady compared to its previous close of 7.50 /60% on strong demand at the first day of second week of the reporting fortnight. The call rates are well above the repo level since tax outflows have caused cash crunch leading banks to borrow more in order to cover their mandated requirements. The call rates closed at 7.50/60 in an illiquid market on Saturday.

Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 87,095 crore through repo window on March 16, 2011. While banks via Second Liquidity Adjustment Facility (LAF) borrowed Rs 53,375 crore through repo window and parked Rs 300 crore via reverse repo window on the same day.

The overnight borrowing rates has touched a high of 7.75% and a low of 7.55%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 6.99% on Friday and total volume stood at Rs 1631 crore on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 2.84% on Friday and total volume stood at Rs 6395 crore on the same day. 

India Securities Group Company exercise its options

India Securities has been informed by Essar Telecommunications Holdings (ETHPL) that its wholly owned subsidiary, ETHL Communications Holdings (ETHL CHL), has exercised its prepayment option in relation to the Series A and Series B Non Convertible Debentures (in accordance with the terms of issue). The payment towards the redemption would be made on March 29, 2011.
Accordingly, post payment the 10.97% stake in Vodafone Essar held by ETHL CHL will be free from all encumbrances.
India Securities is promoted by Essar (Ruia) group and is a subsidiary of Essar Investments. It is into the business of finance, corporate advisory services, project finance, intermediation services project money and foreign exchange markets.
ETHPL holds 11 per cent stake in Vodafone Essar, while the remaining 22 per cent is held through Essar Telecom. Vodafone owns the rest. Vodafone paid $11.1 billion in 2007 for a 67% stake in the firm.
The deal gave Essar the option to sell its entire 33% stake for $5 billion by May 2011, or part of it at a market-determined price. Vodafone has an agreement with Essar that gives it first option to buy out the Indian company’s stake if some or all of the holding is put up for sale. The decision to exercise either put option on or before 8 May, 2011, is entirely the choice of both companies.
Last year in June India Securities (ISL) had said that its board had approved the merger of Essar Telecommunications, which owns an indirect 11 percent stake in Vodafone Essar. Vodafone objected to Essar Telecommunications Holdings' reverse listing into India Securities (ISL) saying ISL's value may be inaccurately used to calculate the value of its Indian telecom joint venture Vodafone Essar.

Bharati Shipyard expects Rs 2,000-crore of orders from offshore and defence segment

Bharati Shipyard is planning to concentrate strongly on the offshore and defence segments and expects over Rs 2,000-crore of orders over the next one year as the offshore and defence segments hold immense potential.

Offshore and defence both the segments are presently growing exponentially and presently, the company's order-book of Rs 5,000-crore has a huge component of off-shore orders at around Rs 3,000-crore and defence orders of around Rs 500-crore. The company expects that there would be a huge demand for defense vessels and it is well-positioned to exploit these opportunities as presently, around 50 ships are under construction at its shipyards due for deliveries by mid-2013.

Recently, Bharati Shipyard was looking to acquire majority 51% stake and management control in Tebma Shipyards for a total consideration of Rs 75.75 crore. The company will infuse fresh equity capital into south-based firm at a price of Rs 19.20 per share of face value of Rs 10 each. Following this acquisition, Tebma’s equity capital base will expand to Rs 77.36 crore from current Rs 7.78 crore.

Tricom Fruit Products to raise Rs 70 crore through issue of equity shares

Tricom Fruit Products has received its borad’s approval for raising of funds to the extent of Rs 70 crore through issue of equity shares of the company, and has appointed merchant bankers for the same.
The board has further approved increasing the authorised share capital of the company to Rs 25 crore divided into 2,50,00,000 equity shares of Rs 10 each from the existing Rs 17,50,00,000 divided into 1,75,00,000 equity shares of Rs 10 each.
Tricom Fruit Products is engaged in the processing of wide range of fruits encompassing Mango, Pomegranate, Guava, Papaya, Tomato and Gooseberry (Amla). Supplied in the form of pulp, puree, juice, concentrate they are exclusively customised and processed as aseptic or, frozen based on the customer's requirement.

Voltas inks agreement with KION Group Gmbh for a JV

Voltas has approved the proposal for formation of a joint venture with Linde Material Handling GmbH (LMH), an affiliate of KION Group, Germany for Materials Handling (MH) business of the company. Voltas’s material handling operations will be integrated into a new joint venture company where the KION group will hold a majority share.

The JV Company will be named Voltas Materials Handling (VMH) and is expected to start operations in April 2011. VMH will be KION Group’s sixth brand and will use Voltas to focus on the Indian market with a product range that includes diesel/LPG and electric trucks with load capacities of 1.5 to 16 tons. VMH will have twenty-five branches and dealership all over India.

Voltas would also enter into a supply agreement with the VMH for forklifts to be manufactured at Thane Plant and grant license for use of 'Voltas' brand for forklifts for a period of 5 years on certain conditions.

Voltas is one of the world's premier engineering solutions providers and project specialists. The company offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

The company reported a decrease of 2.59% in net profit after tax to Rs 67.01 crore for the quarter ended December 2010 from Rs 68.79 crore in the same quarter last year.

Elder Health Care to build its own brands

Elder Health Care a part of Elder group of companies is planning to build its own brands. In this regard, the company has lined up about half-a-dozen launches this year. Following this, the company aims to have a 50:50 ratio between in-licensed products and own brands over the next three to five years as against the present 90:10 in favour of in-licensed products

The company is also targeting for a massive increase in its turnover by FY13 at Rs 300-crore against Rs 80-crore in FY10. It plans to launch Octane in April and together with fuel and targeting an 8-9% market share in deodorants.

Elder Health Care is engaged in manufacturing of a range of FMCG and skin care products through research and development and also products through licensing agreements with Indian and International companies. It has a strong portfolio of brands -- Fairone, Tiger, AMPM, Anthical, Eldercoid, Isoace among others -- that are having major market shares in their respective segments. The company has manufacturing facilities in Patalganga and Rabale.

BUY SESAGOA(500295) 21/03/2011

BUY SESAGOA(500295): 258-259 STOP-LOSS:253 TARGET:263 TGT2:269.70  FOR 2-3DAY CALL FOR POSITIONAL  

BANKNIFTY FOR SUPPORT 21/03/2011

BANKNIFTY (2nd Resistance) 11036.7
(1st Resistance) 10896.4
Pivot point 10817.7
(1st Support) 10677.4
(2nd support) 10598.7

NIFTY FOR SUPPORT 21/03/2011

NIFTY (2nd Resistance) 5545.22
(1st Resistance) 5466.03
Pivot point 5423.02
(1st Support) 5343.83
(2nd support) 5300.82

Reliance Power gains on getting 5 power projects in Himachal Pradesh

Reliance Power is currently trading at Rs 122.55, up by 1.30 points or 1.07% from its previous closing of Rs. 121.25 on the BSE.

The scrip opened at Rs. 122.60 and has touched a high and low of Rs 123.45 and Rs 122.10 respectively. So far 75,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 191.00 on 11-Nov-2010 and a 52 week low of Rs 106.15 on 25-Feb-2011.

Last one week high and low of the scrip stood at Rs. 127.60 and Rs. 120.10 respectively. The current market cap of the company is Rs. 34011.63 crore.

The promoters holding in the company stood at 80.42% while Institutions and Non-Institutions held 6.46% and 13.08% respectively.

Corporate giant, Reliance Power has got five out of the 18 hydropower projects for which global bids were invited by the Himachal Pradesh. The company was allotment the 300 MW Purthi, 94 MW Teling and 44 MW Shangling, all in Lahaul and Spiti district, 130 MW Sumte Kothang and 104 MW Lara Sumta projects in Kinnaur district.

As per Himachal Pradesh's amended power policy, the bidder who offers more free power to the state in addition to the fixed quota are allotted projects. During the previous Congress government, the projects were allotted on the basis of highest upfront premium.

Himachal Pradesh has ample water resources with a power potential of about 23,000 MW. About 6,672 MW have been harnessed till now by the central and state governments, private players and joint venture companies.

REC to raise $1 billion in FY12 through ECBs or corporate bond

India’s state-run lender Rural Electrification Corporation (REC) is planning to mop up about $1 billion in FY12 through issue of external commercial borrowings (ECBs) or corporate bond issues in the USA.

Recently, the company had raised $500-million through a bond issue in the international market. The company also announced to raise $200 million from the offshore loan market by the end of the current financial year.

Rural Electrification Corporation is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them. The company reported a surge of 40.08% in net profit of Rs 664.09 crore for the quarter ended December 2010 compared to Rs 474.07 crore in the same quarter last year.

Godawari Power get courts sanction to amalgamate Hira Industries and R.R.Ispat with itself

The High Court of Chhattisgarh and Bilaspur have sanctioned the scheme of amalgamation of Hira Industries (HIL) and R.R.Ispat (RRIL) with Godawari Power and Ispat (GPIL). The order was passed dated March 17, 2011 and the company has received the certified copy on March 19, 2011.

Pursuant to the said Scheme of Amalgamation GPIL shall issue 36,86,440 equity shares of Rs 10 each fully paid to the equity shareholder of HIL. The shares of RRIL shall be cancelled since the entire share capital of RRIL is been held by GPIL. Further as per the scheme of amalgamation 11,25,000 equity shares of GPIL held by the RRIL shall be transferred to GPIL beneficiary trust.

The said Scheme of amalgamation shall come into effect after filing of the certified copy of the said order with Registrar of Companies within 14 days from the date of receipt of copy of the order.

Lanco Infratech’s group company synchronizes its 600 MW unit

Lanco Infratech’s group company - Lanco Anpara Power - has successfully synchronized Unit I (600 MW) on March 19, 2011. With this Lanco Infratech becomes the country's no 1 independent Power Producer (IPP) with present installed capacity of about 3,292 MW.

Recently, Lanco’s another group company - Udupi Power Corporation - has successfully synchronized Unit II (600 MW) with the grid on March 08, 2011. The Unit 1 (600 MW) of Udupi Power Corporation (UPCL) was synchronized with the grid on June, 3 2010.

Lanco Infratech is one of the fastest growing integrated infrastructure enterprises of India, operating across a synergistic span of verticals comprising power generation, power trading, non-power infrastructure, construction, EPC, property development and renewable (solar and wind). Lanco Infratech posted net profit of Rs 133.56 crore for the quarter ended December 31, 2010 as compared to Rs 114.51 crore for the quarter ended December 31, 2009, up 16.63%.

Kingfisher Airlines, RCom, Monnet Ispat and United Spirits likely to witness some action today

Both lenders and promoters will pick up equity in debt-laden Kingfisher Airlines at a substantial 64% premium to its current market price by March 31 if the company keeps its commitment on timelines earlier agreed upon.

FMCG player, Elder Health Care, has decided to give more focus to building its own brands and has lined-up about half-a-dozen launches this year.

Bharati Shipyard plans to focus strongly on the offshore and defence segments and expects over Rs 2,000-crore of orders over the next one year.

Monnet Ispat and Energy has bought a 100-million tonne coal mine in Indonesia. The company has been in serious talks for the past 5 months to buy a 100-million tonne thermal coal mine in Indonesia. The acquisition is now complete and the announcement will happen on Monday.

Air conditioner maker Voltas has signed an agreement with Germany-based Kion Group to establish a joint venture in India for developing and servicing industrial trucks and warehousing equipment.

The finance ministry said that the government should not arm-twist Cairn Energy by linking the approval of the $9.6-billion Cairn-Vedanta deal with disputes between the British explorer and its estranged partner, ONGC. At a time when the episode of Cairn's acquisition by Vedanta is unfolding, the shareholders of the petroleum explorer are facing a confusing predicament. With crude oil prices soaring above $100, a number of broking houses are valuing Cairn's shares at Rs 420 or higher apiece.

Vijay Mallya-led United Spirits (USL) will invest around Rs 600 crore to set up glass manufacturing plants, as the world's largest liquor firm by volume tries to rein in volatile input costs.

State-run Rural Electrification Corporation (REC), plans to raise around $ 1-billion in 2011-12 through a corporate bond issue in the USA.

Consumer products major Procter & Gamble’s (P&G’s) recent move to slash prices of its hygiene products, Whisper and Pampers, is likely to push its rivals to take price cuts soon.

With the Centre’s clean energy cess on coal, Coal India (CIL) is set to pay a little over Rs 2,150 crore on it. The cess is expected to put additional burden on consumers.

Ansal Properties & Infrastructure has booked sales of about 2.92 million sq ft, aggregating to sale value of about Rs 294 crore in the month February.

BF Utilities’ all transactions in relation to the FDI in Nandi Economic Corridor Enterprises (NECE) have been recently completed by NECE.

Corporate giant, Reliance Power has got five out of the 18 hydropower projects for which global bids were invited by the Himachal Pradesh.

Union Bank of India has entered into an agreement with Lintas Media Group for a period of two years from October 01, 2010 to September 30, 2012. As per the agreement, Lintas Media will develop, plan and implement media strategy for the bank.

State Bank of India (SBI) has raised around Rs 150 crore through 3 months certificates of deposit (CDs)  at 9.75% and Rs 820 crore via one year CDs at 9.95%.

HDFC Bank, second largest private bank in the country, has inked an agreement with Shri Jirawala Parshwanath Chowis Tirthankar Trust for offering online donation.

Reliance Communications' plan to sell its 50,000 towers asset faces a set back as American Tower Corporation (ATC) is not eyeing these towers. There was an increased speculation that Reliance Communications was being wooed by players to pick up the company’s asset with US headquartered - ATC one among them.

Hindustan Motors (HML), India’s pioneering automobile manufacturing company is set to get its most radical makeover of Ambassador in the six decades of its history.

Spectacle Infotek, a leading provider of software development and support services, has successfully completed implementation of its software to various professional colleges and schools.

Tata Group’s arm Titan Industries (TIL) is likely to enter Indonesia by July this year as a part of overseas expansion plans and it is also looking to appoint local partner in the country.

Engineering solutions company Hindustan Dorr-Oliver (HDO) has received orders worth Rs 54.64 crore from Nuclear Power Corporation of India, or NPCIL, for manufacture and supply of process equipment, namely, emergency condensers and D20 exchangers for its Kakrapar Atomic Power Project in Gujarat and Rawatbhatha Atomic Power Project in Rajasthan.

Markets likely to get a positive start on supportive global cues

The Indian markets once again suffered sharp cuts on Friday; investors were still to overcome from the pressure of rate hike by RBI and the rise in crude prices too weighed on the sentiments. Today the start is likely to be positive as the global cues are supportive, however the crude prices are still moving higher after the Gaddafi violated cease fire and air bombardment from American, French and British forces took place to protect Libyan civilians from government troops. On the domestic front Finance Minister Pranab Mukherjee has said that the Reserve Bank of India's move to hike key policy rates by 25 basis points would help curb inflationary pressure. On the same time there is a bad news for the oil marketing companies as the Prime Minister’s Economic Advisory Council (PMEAC) has said that the government would wait for inflationary pressure to calm down before freeing the diesel prices. However the PMEAC has exuded confidence that inflation will decline to below 6 per cent in the first few months of the next fiscal, even as the Reserve Bank revised upwards its March-end inflation projection. The PMEAC Chairman C Rangarajan also said that RBI would halt increase in key policy rates once the headline inflation comes down to around 6 per cent.

The US markets managed to close in green on Friday as the Libyan tension eased a bit, also the G7 nations pledge to support Japanese currency from moving higher in the time of crisis helping the markets closed higher. Most of the Asian markets have made a green start and major indices are trading higher by half to one percent.

Back home, Indian benchmarks once again settled in the red zone on the last trading day of the week as hefty profit booking by funds and retail investors continued for the second straight day after the RBI hiked its key policy rates to curb inflation on Thursday. Sentiments remained subdued as investors feared that more rate hikes are on cards as RBI’s tone was hawkish as it battles spiraling inflationary pressures which threaten to derail the robust growth of Indian economy. The gloomy reports from the political front too did no good to the local sentiments as the opposition demanded resignation of Indian Prime Minister following a wikileaks cable showing bribes had been given by the ruling UPA government members for votes during a no confidence motion after an Indo-US nuclear treaty. While in the global space, sanguine cues from the Asian and European markets went largely unnoticed as investors factored in the spike in international crude oil prices which surged in the session after a vote by the United Nations Security Council (UNSC) authorizing the imposition of a no-fly zone over the Libya. The NSE’s 50-share broadly followed index Nifty, breached the crucial 5,400 support level while Bombay Stock Exchange’s Sensitive Index, Sensex infringed the psychological 18,000 mark after shaving off over two hundred fifty points. The broader markets traded with some resilience though and finished with relatively smaller losses thereby outshining their larger peers. Earlier on Dalal Street, the benchmark ricocheted by around 100 points in the opening trade, with finance and other sector stocks rising on the back of supportive cues from overnight US markets which surged around one and half a percent on a slew of good economic reports that helped to put aside the fear of Japanese crisis. However, the frontline indices immediately erased all the opening gains and treaded on a southbound journey thereafter, since unpleasant reports related to the index heavyweight RIL’s lower than estimated gas production from its KG Basin block hit headlines. Sentiments were also dampened after the opposition raised questions on Congress, which is already burdened by corruption charges, culpability after wikileaks cables revelation. The bourses touched intraday lows in the dying hours of session as they infringed crucial support levels to eventually settle with losses of around one and half a percent. Finally, the BSE Sensex plunged by 271.06 points or 1.49% to settle at 17878.81 while the S&P CNX Nifty fell by 72.95 points or 1.34% to end at 5373.70.

FII DII DATA 21/03/2011

Net Index Futures (-510), Net Stock Futures (-273), Derivative Market: Total Open Interest (Rs 1,44,986 cr), Stock Futures Open Interest (Rs 31,711 cr)

India Inc raises $2.7 billion in foreign borrowings

As rate domestic cost of borrowing begins to rise amidst continued monetary tightening by the central bank, India Inc is increasingly looking to overseas sources of funds. In the month of January, Indian companies raised over $2.7 billion through External Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds, showed the data compiled by the Reserve Bank of India (RBI).

Out of the total amount, around $1.93 billion were raised through the automatic route, which does not require the approval of either the central bank of government. A total of 35 companies availed foreign borrowings under automatic route. The remaining sum of around $773 million was raised by four companies under the approval route.

The biggest funding was availed by the government controlled Hindustan Petroleum Corporation (HPCL) that raised $400 million through the ECBs for modernizing its plants in India. Another major borrowing came from the construction and Infrastructure company SP Jammu Udhampur Highway that brought in $ 350 million via ECBs for various road projects being undertaken by it.

Indian companies are allowed to raise up to $500 million from overseas sources in a financial year under the automatic route for specified purposes. In case the objective for raising loans is not covered explicitly under the automatic route, the central bank takes a decision under the approval route. Often when the domestic rate cycle is on the uphill journey, as is the case presently, the foreign borrowings of India Inc increase as foreign funds become cheaper in many cases.