CG Power and Industrial Solutions to sell its US power biz

CG Power and Industrial Solutions to sell its US power biz

21/06/2017 12:17

CG Power and Industrial Solutions Ltd, formerly known as Crompton Greaves, on Wednesday said it has accepted the binding offer of Weg SA for acquisition of the company’s power business in USA at an enterprise value of USD 37 million.

In a filing to the Bombay Stock Exchange, CG Power and Industrial Solutions said, “The company has accepted a binding offer of WEG S.A for acquisition of the company’s power business in USA comprised in the company’s step down overseas subsidiary, CG Power USA Inc. (PSUS), at an enterprise value of USD 37 million.”

“In this regard CG Power Systems Belgium N.V., the company’s step down overseas subsidiary has executed a Stock Purchase Agreement (SPA) on June 20, 2017 with WEG Electric Corp for sale of its 100 per cent stake in PSUS, comprising exclusively of the company’s power business at closing,” it added.

Further, the SPA is expected to close by July 31, 2017 upon which CG Power USA Inc. will cease to be an overseas subsidiary of the company, it said.

The copany further added that, the move is part of the company’s stated strategy of debt reduction and on focusing on its core operations and core market in India. Meanwhile, shares of the company were trading at Rs 85.10 apiece, up 0.35 per cent, from previous close on BSE at 12:22 hours.

Housing credit growth moderates to 16% in FY17: Icra

20/06/2017 16:53

Total housing credit growth moderated to 16 per cent in the financial year 2016-17 due to lack of new project launches and as investors deferred their home purchase decisions, according to rating agency Icra.

In the financial year ended March 2016, the housing credit grew by 19 per cent.

Overall housing credit stood at Rs 14.4 trillion as on March 31, 2017 as against Rs 12.4 trillion as on March 31, 2016.

“The growth in the sector (in FY17) was impacted by a slowdown in new project launches with buyers and investors deferring their home purchase decisions in expectation of a decline in real estate prices,” Icra said in a report here today.

While the slowdown was across both housing finance companies (HFCs) and banks, the decline in the pace of growth of the latter was higher – from 18 per cent in FY 2016 to 15 per cent in fiscal 2017. It was largely because banks were operationally tied up in second half of FY 2017 on account of demonetisation, the report said.

“HFCs operating in the affordable housing space, with a total portfolio of Rs 1.2 trillion, continued to grow at a faster pace of 28 per cent in the previous fiscal compared to the industry,” Icra’s senior vice president and group head (financial sector ratings), Rohit Inamdar, said.

HFCs’ growth was supported by increase in supply due to launch of affordable housing projects and the infrastructure status accorded to the sector. They were also helped by the improved borrower affordability supported by lower interest rates and the credit-linked subsidy scheme, Icra said.

Traditional lenders that have historically focused on the prime segment have also started lending to this segment, the report said.

The rating agency expects affordable housing finance to continue to outpace the industry, going forward as well.

Icra expects HFCs’ gross non-performing assets (NPAs) to remain range-bound between 0.9-1.3 per cent in the current financial year.

Cardamom futures slip 2.29% on sluggish demand

Cardamom futures slip 2.29% on sluggish demand

20/06/2017 17:17

Cardamom futures fell over 2 per cent during evening trade in the domestic market on Tuesday as investors and speculators exited their positions in the agri-commodity on plunge in physical demand for cardamom in the domestic spot market. Further, sufficient supplies on higher physical arrivals from the major cardamom producing regions, influenced the downward trend in the domestic cardamom prices. At the MCX, cardamom futures for July 2017 contract is trading at Rs 1047 per kg, down by 2.29 per cent, after opening at Rs 1103.60, against a previous close of Rs 1071.50. It touched the intra-day low of Rs 1039 (at 17:17 hours).
BSE SME platform receives 214 draft prospectus

BSE SME platform receives 214 draft prospectus

20/06/2017 12:06

BSE’s small and medium enterprise (SME) platform seems to be generating significant interest from investors with as many as 214 firms filing draft papers to raise funds through IPOs since the launch of the segment, nearly five years ago.

Out of 214 companies, 183 of them are already listed and have raised Rs 1,440 crore from the market. Currently, these firms have a market capitalisation of Rs 18,832 crore.

Of these 183 firms listed on BSE SME platform, 29 have migrated to BSE main board. Asia’s oldest bourse is the leader in this segment with more that 80 per cent market share.

Moreover, a total of 26 SMEs are expected to launch their initial public offerings soon.

BSE had launched its SME platform in March 2012 and since then, several companies have got listed on them and some have even shifted to the main board.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

“BSE’s SME has become the first SME platform in India where 214 companies have filed their prospectus for getting listed,” the exchange said in a statement issued today.

Indian SME sector has emerged as a highly vibrant and dynamic sector of the economy over the past few years. SMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialisation of rural areas.

Adani Ports rises nearly 3% on ratings upgrade

Adani Ports rises nearly 3% on ratings upgrade

19/06/2017 13:05

Shares of Adani Ports and Special Economic Zone Limited (APSEZ) soared nearly 3 per cent on the Bombay stock Exchange after Moody’s Investors Service revised the company’s Baa3 issuer and senior unsecured rating to stable from negative the outlook.

Boosted by the development, shares of the company gained as much as 2.95 per cent to hit intra-day high of Rs 373.35 apiece on the Bombay Stock Exchange. The scrip was currently trading at Rs 371.35 against previous close price of Rs 362.65.

In a similar fashion, stocks of company were trading 2.44 per cent higher at Rs 372.00 apiece on the National Stock Exchange.

Meanwhile, the broader benchmark BSE Sensex was trading at 31,205.00, up 148 points or 0.48 per cent, at 13:15 hours.

Subdued physical demand bites mentha oil

Subdued physical demand bites mentha oil

16/06/2017 17:17

Mentha oil futures were trading lower during evening trade in the domestic market on Friday as investors and speculators exited their positions in the agri-commodity amid decline in physical demand for mentha oil from major consuming industries in the domestic spot market.

Further, trimming of positions by traders in the spot market was due to a fall in physical demand for mentha oil from consuming industries at the domestic spot market against sufficient stocks position on higher supplies from producing regions, influenced mentha oil prices at futures trade.

At the MCX, mentha oil futures for June 2017 contract is trading at Rs 923.40 per kg, down by 0.46 per cent, after opening at Rs 935.70, against a previous close of Rs 927.70. It touched the intra-day low of Rs 921.20 (at 17:18 hours).

Post Session: Sensex, Nifty end flat in choppy trade; IT, pharma stocks drag

16/06/2017 16:24

The Indian equities ended tad lower in choppy trade on Friday, undermining firm cues from Asian peers, as investors digested the US Federal rates hike, while reports that the Bank of England came close to raise U.K. interest rates also left traders jittery. Most of the Asian markets closed higher as the Bank of Japan maintained status quo in its latest policy review. IT, Teck and pharma stocks witnessed selling pressure amid concerns over earnings outlook. IT bellwether Infosys dipped over 1 per cent after the company announced that Sandeep Dadlani, the head of Americas and global head of manufacturing and retail, has resigned from his post.

The 30-share barometer SENSEX closed at 31056.4, down by 19.33 points or by 0.06 per cent, and the NSE Nifty ended at 9588.05, up by 10 points or by 0.1 per cent.

During the day’s trade, Sensex touched an intraday high of 31182.73 and intraday low of 31017.18, while the NSE Nifty touched intraday high of 9615.85 and intraday low of 9565.5.

The top losers of the BSE Sensex pack were Lupin Ltd. (Rs. 1131.00,-4.40%), Sun Pharmaceutical Industries Ltd. (Rs. 529.15,-2.78%), Wipro Ltd. (Rs. 254.95,-2.24%), Cipla Ltd. (Rs. 537.05,-2.20%), Infosys Ltd. (Rs. 940.50,-1.24%), among others.

On the flip side, Tata Motors Ltd. (Rs. 455.50,+1.57%), ITC Ltd. (Rs. 306.30,+1.46%), Adani Ports & Special Economic Zone Ltd. (Rs. 362.65,+0.67%), State Bank of India (Rs. 285.85,+0.63%), NTPC Ltd. (Rs. 160.25,+0.53%), were among the top gainers on the BSE.

Among the sectors, healthcare and IT stocks emerged as top losers, falling as much as 1.52 per cent and 0.83 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was flat. On BSE out of total shares traded 2994, shares advanced were 1427 while 1400 shares declined and 167 were unchanged.

Indian steel sector poised to become 3rd largest producer in world: Min

Indian steel sector poised to become 3rd largest producer in world: Min

16/06/2017 16:48

India being one of the fastest growing economies in the world, and steel finding its extensive application in areas like construction, infrastructure, power, aerospace, industrial machinery and consumer products, the sector is poised to become second largest producer putting Indian steel prominently on the map of the global industry, says Chaudhary Birender Singh, the Union Minister of Steel.

“Indian steel sector has evolved as 3rd largest steel producer in world and is poised to become 2nd largest producer putting Indian steel prominently on the map of the global industry,” said Singh in a meeting of the recently constituted National Steel Consumers’ Council of Ministry of Steel in Bhubaneswar on Friday.

He mentioned that owing to the significance of the sector and dynamic scenario in steel sector, the government came up with National Steel Policy (NSP) 2017. With the roll out the New Steel Policy, it is envisaged that the industry will be steered with appropriate policy support in creating an environment for promoting domestic steel and thereby ensuring that production meets the anticipated pace of growth in demand, he stated.

Outlining the thrust areas of National Steel Policy he said, the NSP would focus on ensuring raw material security, import substitution, enhancing steel consumption, R&D of value added steel, increasing energy efficiency and sustainability, establishing India as cost-effective and quality steel destination, and reducing Carbon foot-print of the industry.

Singh also elaborated on the policy on preference to Domestically Manufactured Iron & Steel products (DMI & SP) which will cause increase in the consumption of domestic steel and help the Indian steel makers.

The steel minister mentioned that steel is one of the most important products in the modern world and forms the backbone to any industrial economy. The qualities and advantages of this material must be popularized for increasing the consumption of steel. Emphasizing on the low life cycle cost of steel, the minister said, it is a viable option for large construction, buildings or for individual users too. He said to enhance steel consumption, Steel Ministry has identified construction and manufacturing sectors like Rural development, Urban infrastructure, Roads & Highways, Railways etc. to be the key focus areas.

Indiabulls Housing Finance raises Rs 1100 cr via bonds

Indiabulls Housing Finance raises Rs 1100 cr via bonds

16/06/2017 15:35

Indiabulls Housing Finance said that it has raised Rs 1100 crore by issuing Non-Convertible Debentures on a private placement basis.

“Indiabulls Housing Finance has allotted its second tranche of Secured, Redeemable, Non-Convertible Debentures of face value Rs 10 lakh each (‘NCDs’) aggregating to Rs 1100 crore on a private placement basis,” the company said in a filing to the Bombay Stock Exchange.

The coupon/interest offered will be 7.85 per cent per annum payable annually and at maturity.

The debentures have tenure of 731 days and the date of maturity is 17th June 2019.

Meanwhile, shares of the company closed trading at Rs 1129.60 apiece, down 1.78 per cent from the previous close on BSE.

United Bank of India cuts 6-month MCLR to 8.55%

United Bank of India cuts 6-month MCLR to 8.55%

16/06/2017 14:55

United Bank of India said that it has revised its Marginal Cost of Funds based Lending Rate (MCLR) with immediate effect.

“The bank has reduced its six month Marginal Cost of Funds based Lending Rate (MCLR) to 8.55 per cent per annum (p.a.), with immediate effect, United Bank of India said in a filing to the Bombay Stock Exchange.

Meanwhile, shares of the bank were trading at Rs 19.85 apiece, down 1.73 per cent from the previous close at 14:52 hours on BSE.