|Market Commentary||Monday, June 25, 2012 08:53 Hrs IST|
Coal India in focus on buzz it hikes prices in select Western blocks by 10-15%
State-run Coal India (CIL) has reportedly hiked the prices by an average of 10-15% for non-coking coal mined from selected blocks in Western Coalfields. According to reports, the increase in the prices came into effect from midnight of 21 June 2012.
Sesa Goa and Sterlite Industries will be watched as both the companies will announce results of court convened meetings of their shareholders that was held last week. Shareholders of Sesa Goa and Sterlite Industries met separately last week to cast their vote on the proposal to merge both the firms.
Results of the vote on the merger is being closely watched as it will create the world's seventh largest diversified metals and mining conglomerate. At least 75% of shareholders need to approve the merger for it to become effective.
Post the merger, parent Vedanta Group will hold 58.3% stake in the combined entity, Sesa Sterlite. As per the scheme, Sterlite shareholders will get three shares of Sesa Goa for every five shares held. Cairn India, Hindustan Zinc, Balco, Vedanta Aluminum, Madras Aluminum, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite after the restructuring.
Larsen & Toubro is reportedly looking to raise $400-500 million by selling stake in its infrastructure development subsidiary, L&T Infrastructure Development Projects.
Suzlon Group, which controls wind-turbine maker Suzlon Energy, will sell stake in its China manufacturing unit to China Power New Energy Development Co. for Rs 340 crore. Suzlon will sell the unit with the majority of its assets and liabilities, it said in a statement. "This is in line with our previously announced strategy to dispose of non-critical group assets to reduce our long-term debt," Suzlon Chairman Tulsi Tanti said in a statement.
ONGC is reportedly mulling listing its overseas investment arm ONGC Videsh (OVL) next year to raise funds for aggressive foreign acquisitions. According to reports, the company may go for an initial public offering (IPO) of at least 10% equity shares. Reports added that the IPO is not likely before 2013.
The Andhra Pradesh High Court (AP HC) on Friday, 22 June 2012, issued an interim order suspending the District Rural Development Agency (DRDA) notice canceling SKS Microfinance's registration in Mahabubnagar district, SKS Microfinance has said. According to the company, AP HC suspended the DRDA notice as it found no valid reasons for the cancellation of SKS' licence to conduct business in Mahabubnagar district.
"Prima facie, a perusal of the impugned order indicates that no valid reasons have been recorded in cancelling the registration as contemplated under section 5 of the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011," the court said in its order, SKS said in a statement.
Indian Hotels Company said its directors have approved allotment of 4.80 crore equity shares worth Rs 497.47 crore to Tata Sons, the promoter of Tata group companies. Tata Sons has exercised the option to convert 4.80 crore warrants where each warrant entitled Tata Sons to subscribe to one ordinary share of the company of Re 1 each at Rs 103.64 per share, Indian Hotels said in a filing to the BSE.
Maruti Suzuki India has reportedly accelerated work at its Gurgaon factory to introduce a fuel-efficient and technologically superior 800cc car around Diwali, as it seeks to boost sales of cars in a segment where its aging Alto hatchback is losing market share.
Jet Airways has reportedly sought government clearance to scale down its flights to the northeastern region by about half to stem the losses. The airline, which currently operates around 38 daily services in several northeastern destinations, has written to the Civil Aviation Ministry to allow it bring these operations down by nearly 50%, reports suggested, adding there has been no response from the Ministry on the matter as yet.
Essar Oil will be watched on reports Gujarat High Court Bench recused itself from hearing a petition filed by the company seeking direction that the State government should allow repayment in instalments and waive interest in relation to its sales tax deferment liability. In its petition filed in May 2012, the company has sought waiver from payment of interest and penalty to the tune of around Rs 2000 crore, with regard to its sales tax deferment liability to the Gujarat government. It has also sought directions for the state government to allow the company to make repayment in form of annual instalments from April 2013. The state government had earlier rejected this proposal of the company.