Friday, 20 July 2018

20 July 2018 - Views & News


Business Standard

Digitisation to help explore $39bn export opportunity
Trai overhauls rules on pesky calls, spam messages
Digital retail lending may hit $1 trn in 5 years
NCLT approves Aion Capital-JSW Steel resolution plan
June quarter CAD seen rising to 2.5% of GDP: Icra
India may lose trade dispute with US in WTO: Secy
New industrial policy to suggest ease of trade
India to remain fastest growing economy till FY20: Asian Development Bank
NSE to levy 10 times higher STT on physically-settled derivatives
Liquidity crisis for gems, jewellery sector as Nirav Modi case scares banks
Sebi to finalise guidelines to allow MFs to invest in commodity derivatives
India's demand for solar equipment import jumps 90% in last three FY: Govt


India’s growth story intact despite challenges: Ficci
MCF gets green nod for 1 mt fertiliser plant
ABB India net profit up by 26% in Q2 of 2018
Registered valuers told to expand scope of work
Liberty House to invest Rs.300 cr to restart Adhunik, Zion Steel
JSW Cement to set up $150-mn clinker facility in UAE
IOC, BPCL, Adani bid for most city gas licences
Novartis to pay as much as $1 billion for skin drug rights
Suzuki Motorcycle to invest ₹600 crore in its second India plant
European Union to curb steel imports after Trump tariffs
Fortis EGM on 13 August over stake sale to IHH

Financial Chronicle

Ex-RBI deputy governor R Gandhi cautions against frequent loan waivers
AirAsia announces $30 billion deal for 100 Airbus planes
Kotak Mahindra Bank Q1 net up 12 per cent to Rs 1,025 crore
Secular countries may have more economic growth, says study
Rural market drives consumption demand
Coal demand rises 7.5% in FY18: Goyal
Rupee closes at historic low of 69.05
Fuel, land and electricity will be under GST, says CEA
IBBI working on cross-border insolvency laws


Alembic Pharma: Company’s API unit at Kharkhadi gets USFDA Establishment Inspection Report (EIR) for the inspection carried out during the period from 14th May, 2018 to 18th May, 2018 – Positive read thru.


Indian Oil Corporation (IOCL): Expects its 5million ton per annum Ennore Liquefied Natural Gas (LNG) terminal to start operations by October-2018. IOCL is setting up LNG terminal at Ennore at an estimated capital cost of Rs4500 crore - positive read through for IOCL.

JSW Steel : The resolution plan submitted by the consortium of JSW Steel and AION Investments Pvt. II Ltd and approved by the committee of creditors (CoC) of Monnet Ispat and Energy Ltd. in respect of the corporate insolvency resolution was approved with modifications by the Mumbai bench of the NCLT; Positive read-thru

Maruti Suzuki India: expands reach of Ecstar products to boost aftermarket revenues; positive

Maruti Suzuki India (MSI) expanded the reach of its Ecstar branded lubricants, coolant and car care products with the introduction of the range at 3,400 workshops under its Arena network. MSI had launched the Ecstar brand of engine oil at workshops under its premium outlet chain NEXA in September last year. The Ecstar range products includes engine oils, coolants, injector cleaner, automatic transmission oil, car care products, and screen wash for the cars.MSI said more products will be added to the range in India progressively.

Hatsun Agro : The company has proposed to set up a dairy manufacturing plant in Maharashtra and has identified the location for construction of the plant. The installation of the dairy plant is expected to be commissioned before end of December 2019; positive read-thru

MEP Infrastructure: MEP Sanjose Nagpur Ring Road 2 Private Limited - Subsidiary of the Company, has achieved the Milestone II for the project of Four Lane Stand Alone Ring Road/ Bypasses for Nagpur City, Package-II in Maharashtra on BOT (Hybrid Annuity) basis as per the Concession Agreement. The Company has received the Milestone II payment for 40% of the physical progress for the project on 19th July, 2018. Positive read thru for MEP Infrastructure

Oil and Natural Gas Corporation (ONGC): The government has exempted ONGC from the obligations of buying back its own shares and issuing bonus shares in the current fiscal as ONGC had to buy 51.11% stake of government in HPCL resulting into depletion of cash reserves and addition of debt in FY18. As per the guidelines of department of investment and public asset management (DIPAM), PSUs above certain defined thresholds of reserves and surplus have to issue bonus shares and buy back a portion of their shares. The exemption would help ONGC to meet its capex plan of Rs32000 crore - neutral read through for ONGC.

Thursday, 19 July 2018

19 July 2018 - Views & News


Business Standard

RIL plans to borrow $6 billion in consumer push
Daiichi Sankyo moves Delhi HC to block Fortis-IHH deal
Govt introduces bill to check unregulated deposits
245 infra projects delayed, 345 report cost overrun
Airtel added 36 mn users after Telenor India buy: Trai
Parliament nod to bill for SBI-subsidiary bank merger
Government increases sugarcane FRP by Rs 20 per quintal to Rs 275
Inflationary pressures, led by crude, expected to hurt FMCG companies
EPFO invested nearly Rs 489.46 bn in exchange-traded funds till June 30
CAG probes Rafale jet deal; CBI examines 4 graft cases in defence: Govt
Cipla plans acquisitions to enter new therapies, boost Africa business


Bank credit rises by 12.78%, deposits by 8.33%
Anti-dumping duty on grinding media balls from China, Thailand extended for five more years
Nod for Bill to replace insolvency ordinance
ONGC, OIL will not bear entire royalty, cess burden in pre-NELP blocks: Pradhan
Zydus Cadila gets USFDA nod to market 4 generic products
Spanish oil firm Cepsa ties up with GP for India entry
DoT looking into Vodafone-Idea plea on recalculating dues
Govt decides to withdraw contentious FRDI bill
Ultratech Cement Q1 profit slumps 30% to Rs.631 crore on higher petcoke, fuel prices
Google fined $5 billion by EU, told to alter Android model
Bill to curb ponzi schemes tabled in Lok Sabha

Financial Chronicle

Insolvency process: Videocon lenders' claims at Rs 59,000 crore
Reliance Comm Q1 net loss narrows to Rs 342 crore
Merger of associate banks with SBI to enhance profitability, says Minister
Cabinet nod for tabling bill recognising home buyers as financial creditors
Oil and gas- Expect inventory gains for OMCs
Global Cyclicals will drive first quarter earnings
Ranbaxy promoters asked to disclose foreign bank accounts, assets
Govt concerned about additional duties by US
ONGC gets board nod to exit Pawan Hans, to sell 49% stake


Travel & Hospitality:  Domestic airlines registered 18.4% growth in passengers flown during June compared to corresponding month last year; airline traffic is growing in strong double digits for last few months and has clocked a growth of 22% during the period of January-June 2018 – positive read through for airline companies such as Interglobe Aviation, SpiceJet, Jet airways and sentimentally positive for hotel companies such as Indian Hotels, Taj GVK and Lemon Tree Hotels

Sugar Sector: The Central Government has raised the Fair & Remunerative Price (FRP) for sugarcane by Rs 20/quintal to Rs 275/ quintal (linked to base recovery rate of 9.5%) for the sugar season 2018-19 (Oct-18 to Sep-19). This is the minimum price which the sugar millers will have to pay the farmers for procuring sugarcane from them – Negative read through for the sugar millers/ companies like Balrampur Chini Mills, Dhampur Sugar, EID Parry etc….(details in other news)


Oil & Gas: Cabinet approves relaxation of norms in the production sharing contracts for pre-NELP and NELP blocks. With the revised norms the upstream PSUs (ONGC and Oil India) would be required to bear royalty and cess in the proportion of their stake as compared to higher share currently for some of the blocks. We see the revised norms positive for the sector as it would increase the investment in the development/production of hydrocarbon blocks - positive read through for ONGC and Oil India.   

Oil and Natural Gas Corporation (ONGC): Plans to sell its entire 49% stake in Pawan Hans (helicopter service provider) in order to reduce its debt (taken for acquisition of government's  51.11% stake in HPCL). We highlight here that book value of ONGC's investment in Pawan Hans stands at around Rs1,200 crore as on March-2017 and the benefit of debt reduction would depend upon value unlocking for its stake sale in Pawan Hans. 

Tata Motors to hike domestic passenger vehicle prices by 2.2%; confident of outpacing PV industry in FY2019 on new launches; positive 
Tata Motors will hike prices of its passenger vehicles across models by up to 2.2% from August 2018 to offset increased input costs. It is expecting to outperform the industry growth of 7-8% on new launches. Tata Motors will also widen distribution reach to augment sales. Tata Motors will also supply 200 electric vehicles (Tigor compact sedans) to Cognizant worth around Rs 18 to 22 crore.

Sugar Sector: The Central Government has raised the Fair & Remunerative Price (FRP) for sugarcane by Rs 20/quintal to Rs 275/ quintal (linked to base recovery rate of 9.5%) for the sugar season 2018-19 (Oct-18 to Sep-19). This is the minimum price which the sugar millers will have to pay the farmers for procuring sugarcane from them – Negative read through for the sugar millers/ companies like Balrampur Chini Mills, Dhampur Sugar, EID Parry etc.
The sugar industry is facing challenges of huge surplus inventory for the current season leading to sharp decline in sugar realisation and losses in sugar division resulting in cane arrear built-up. The decision to hike FRP will further add to the woes of the industry. However the Central government and state governments are trying to balance the situation to the extend by announcing certain sops and subsidy for the sector which has not been enough as of now to bring back the sugar industry on track.

TVS Motors: Partner BMW launches GR and GS 310 premium motorcycles; higher than anticipated pricing to limit sales
The two-wheeler arm of BMW Group, BMW Motorrad India and TVS Motors partner, launched the all-new G310 R and G310 GS motorcycles priced at Rs 2.99 lakh and Rs 3.49 lakh respectively (ex showroom). The motorcycles developed by BMW Motorrad in Munich will be produced at TVS Motor’s Hosur plant, in keeping with the partnership between the two companies. The launch of two bikes marks BMW first offerings in sub 500 cc motorcycle space. However, higher than anticipated pricing (on road price of Rs 3.37 lakhs as against our expectation of Rs 2.85-3 lakhs) as compared to competition KTM 390 sells for Rs 2.65 lakhs would limit sales volumes.

Bharti Airtel: May raise upto $1.5 billion from Warburg Pincus via Africa operations stake – stock to remain in focus
As per media report, Bharti Airtel is in talks with Warburg Pincus to raise as much as $1.5 billion by divesting up to 15% in its holding company for African operations. The proposed deal between Airtel and Warburg is expected to value Bharti Airtel’s Africa unit at $8-9 billion. 

Today's Corporate Action 19th July Ex Date 

APCOTEXIND Dividend - Rs. - 6.0000
ASTEC Final Dividend - Rs. - 1.5000
ASTRAMICRO Dividend - Rs. - 1.2000
AVANTEL Dividend - Rs. - 4.0000
BIOCON Final Dividend - Rs. - 1.0000
BOMDYEING Dividend - Rs. - 1.0000
CMIFPE Final Dividend - Rs. - 2.0000
CMIFPE Special Dividend - Rs. - 2.0000
COROMANDEL Final Dividend - Rs. - 3.5000
CROMPTON Dividend - Rs. - 1.7500
EXCELCROP Dividend - Rs. - 8.7500
GAEL Final Dividend - Rs. - 0.9000
GOODRICKE Dividend - Rs. - 4.5000
HDFC Final Dividend - Rs. - 16.5000
INFRATEL Final Dividend - Rs. - 14.0000
JCHAC Dividend - Rs. - 1.5000
KALYANIFRG Dividend - Rs. - 3.5000
KITEX Final Dividend - Rs. - 0.7500
M&MFIN Dividend - Rs. - 4.0000
MAHLIFE Final Dividend - Rs. - 6.0000
MEGH Dividend - Rs. - 0.4000
MINDACORP Final Dividend - Rs. - 0.3500
MONEYMATF Final Dividend - Rs. - 0.3000
PEL Dividend - Rs. - 25.0000
PERSISTENT Final Dividend - Rs. - 3.0000
PNBHOUSING Final Dividend - Rs. - 9.0000
RPGLIFE Dividend - Rs. - 2.4000
SAREGAMA Dividend - Rs. - 3.0000
SHOPERSTOP Dividend - Rs. - 0.7500
SQSBFSI Final Dividend - Rs. - 20.0000
SUDARSCHEM Final Dividend - Rs. - 1.0000
TRANSCOR Dividend - Rs. - 0.1600
TRANSCOR Special Dividend - Rs. - 0.6400
UNICHEMLAB Dividend - Rs. - 5.0000
WABCOINDIA Dividend - Rs. - 8.0000
ZUARIGLOB Dividend - Rs. - 1.0000

Wednesday, 18 July 2018

18 July 2018 - Views & News


Business Standard

Growth rises in eastern states for auto companies
Very positive momentum against US sanctions on India
Govt nod to Rs 11,336 cr capital infusion in 5 state banks
Panel to change laws to prevent defaulters from fleeing
Steel Minister announces pension scheme for CPSEs
Trai's draft rules to curb pesky calls, msgs: COAI
Technology driving BFSI sector to grow: TCS
HDFC AMC's Rs 28 bn IPO to open on July 25 at Rs 1,095-1,100 per share
Ashok Leyland Q1 profit up by 233% to Rs 3.70 billion, beats estimate
ICICI Lombard General Insurance Q1 net profit rises 35% to Rs 2.89 billion
Cabinet to consider Rs 20 per quintal hike in sugarcane price for 2018-19
EU, Japan to sign massive trade deal in 'strong signal' against Trump
NCLAT stays voting by Bhushan Power & Steel lenders on finalising bids


‘US import tariff to have indirect effect on steel industry’
25% safeguard duty on solar modules is both a boon and a bane: Crisil
Trucks can now legally carry 20-25% more load
‘Proposed solar safeguard duty is double-edged sword’
Jet orders 737 MAX 8 Boeing planes for $9 b; drawn by fuel efficiency of its narrow body
ICICI Bank audit committee hires law firm to look into bad loans
IDBI Bank to move govt to make LIC promoter
Federal Bank posts 25% rise in net profit on lower provisioning
Nestle breaks into Rs1 trillion market cap club
Rolls-Royce unveils hybrid ‘flying taxi’ at Farnborough
NBFCs eye stressed SMEs for lending opportunities

Financial Chronicle

China’s cooling economy spells trouble ahead for global growth
Government doubles import duty on over 50 textile products
Grofers to enter FMCG segment; eyes Rs 2,500 cr sales in FY19
UK employment hits record high as job creation continues
Securitisation volumes up 128% in Q1
Financial technology yet to reach potential
Increase in truck axle load to impact CV sales
Karnataka miners for curb on iron ore imports


HDFC Bank: The bank has raised Rs 8,500 crore by issuing over 3.9 crore shares at an issue price of Rs 2,174.09 per equity share on preferential basis to its parent HDFC Ltd.– Positive read thru. This is part of the bank's Rs 24,000 crore fundraising plan that was approved in December. Of this, Rs 8,500 was planned to be raised by issuing equity to HDFC on a preferential basis and the balance through the issuance of equity shares or convertible securities or depository receipts to a qualified institutions placement or through ADR/GDR.

Punjab National Bank, Allahabad Bank, IOB, Andhra Bank, Corporation Bank: The government has decided to infuse Rs 113 billion into  five public sector banks, to help them meet regulatory capital requirements, this is as per media reports. The government would likely infuse in the following banks: PNB(Rs 28.2 billion), Corporation Bank (Rs 25.5 billion), Indian Overseaas Bank (Rs 21.6 billion), Andhra Bank (Rs 20.2 billion) and Allahabad bank (Rs 18 billion) - Sentimentally positive for the PSBs. The capital infusion will be a part of the Rs 2.11-trillion recapitalisation plan announced last year.

Idea Cellular, Grasim Industries: The Department of Telecommunications has rejected Vodafone India and Idea Cellular’s requests to recalculate their dues, saying its numbers (Rs7268 crore) are fine and they should pay up to get a final seal of approval on their merger at the earliest. Sentimentally negative for Idea Cellular and Grasim Industries (holding company of Idea).


Ashok Leyland, Tata Motors and Eicher Motors: Government indicated that higher axle load capacity norms (20-25% capacity increase) will be applicable to existing fleet as well and they will soon come out with a notification in this regard. This is expected to impact the replacement demand which accounts for 25-30% of the new vehicle demand. While the development is negative for new CV demand, the impact is likely to be limited as overloading is already rampant currently. 

Maruti Suzuki: Is working on a new entry level car for a launch in 2020 – Positive read thru
Maruti Suzuki is working on a new entry-level car, which would be rolled out in 2020. As per media reports, the new car Code-named Y1K, would have a petrol engine of a capacity between 800cc – 1,000cc. It is currently being developed at the company’s newly built research and development facility at Rohtak. The new car will meet the upcoming stringent safety and emission regulations and will be positioned between Alto and Wagon R. 

Tata Motors: Introduces AMT in a lower XM version priced at Rs 7.5 Lakhs and Rs 8.53 lakhs (ex showroom Delhi) for petrol and diesel variants respectively. The new variant named as XMA gets three Multi-Drive modes namely Eco, City and Sport, Smart Hill Assist and Crawl function to step up the convenience factor. Positive read thru

TCS: Total partners with TCS to set up a digital innovation center in India – positive read-thru

Dairy Sector : The GOI plans to provide dairy exporters with incentives worth an aggregate of ~ $ 55 mn to promote exports according to a deputy agriculture minister.  In another development related to dairy sector, Agriculture Ministry has requested railways to make milk available at Railway stations; Positive read-thru for Parag Milk, Prabhat Dairy, Hatsun Agro & Heritage Foods

PNC Infratech: signed concession agreement for its HAM project worth Rs 1,157 crore in Karnataka. Positive read thru for PNC Infratech.

Kridhan Infra: JV won Rs 222.6 crore order for highway project. Positive for the stock 

Tuesday, 17 July 2018

17 July 2018 - Views & News


Business Standard

Users have right on their data not cos: Trai 
IMF cuts India's growth projection, but it's still on top
Productive US-Russia talks good for world: Trump
India, Iran discuss impact of US sanctions on oil trade
ICICI Bank decides to postpone AGM by a month
India recommends safeguard duty on solar cells
BSNL to roll out 5G service with global launch: Anil Jain
Hindustan Unilever Q1 profit up 19% to Rs 15.29 bn, income rises 3%
Sebi extends deadline to Sept 30 for RTAs to collect PAN, bank details
LIC board gives nod to acquisition of up to 51% stake in IDBI Bank: Garg
Buyback withdrawals by companies pose headache for Sebi, investors
China files WTO challenge to Donald Trump's $ 200 bn tariff plan


WPI hits 54-month high, jumps to 5.77% in June
Moody’s warns of higher SME LAP delinquencies on rising rates
Centre may take up fresh valuation of Air India
Sugar output seen at a new high of 355 lakh tonnes in 2018-19
Lupin gets UK health regulator’s approval for Goa facility
China Q2 GDP growth slows, meet forecast
IDBI Bank board may soon clear preferential share allotment to LIC
Fitch sees IOC’s net debt levels rising due to large capex
TCS eyes $200 million in revenue from blockchain in FY19
Hotel firm’s lawsuit a challenge for Infosys’s hiring plans in US
Sensex drops 217 points on sell-off in banking, pharma stocks

Financial Chronicle

PhonePe acquires Zopper Retail for undisclosed account
FMCG major HUL to go for ‘judicious’ hike to ward off inflation
Scam-hit PNB opens 2nd centralised loan processing centre for better monitoring
India invites investments from Omani companies
PE investments in real estate see a quantum jump
Ashok Leyland forms new division for customers
Office assets witness inflow of `57,300 cr since 2011
10% duty sought to curb aluminium dumping
Business confidence stays subdued in June


ALERT: Ashok Leyland, Tata Motors and Eicher Motors, Bharat Forge and Ramkrishna Forgings: Government notifies increased axle load norms; axle ccarrying capacity hiked by 20-25%; negative as it would impact new CV demand. However, the finer details are not available and the impact could be mitigated if the consideration safety norms could keep existing fleet out of the notification…..(details below)


Britannia Industries: inaugurates Rs170 crore unit in Assam; will cater to growing demand from North East – positive read through for the stock
Britannia Industries opened its Rs 170-crore manufacturing plant (spread over 22 acres and has an annual production capacity of 60,000 tones) in Assam. This will cater to the growing demand from North East. It will help in augmenting the company’s vision to be a total foods company and strengthen its position as a market leader in the packaged foods industry. This new facility will produce a wide array of Britannia products to cater extensively to Assam and the neighbouring states. The company plans further expansion of its footprint in Assam by investing in a finished goods distribution centre at an investment of Rs 20 crore that will cater to the entire North Eastern market

Ashok Leyland, Tata Motors and Eicher Motors, Bharat Forge and Ramkrishna Forgings: Government notifies increased axle load norms; axle ccarrying capacity hiked by 20-25%; negative as it would impact new CV demand. However, the finer details are not available and the impact could be mitigated if the consideration safety norms could keep existing fleet out of the notification
Government has hiked maximum safe axle weight norms for Commercial vehicles. Safe Axle weight for two axles rigid vehicles, trailers and semi trailers is 21 tonnes while for three axles is 27 tonnes. Safe axle weight for two axle Puller tractor for hydraulic and pneumatic trailers is 28.5 tonnes. Similarly single axle with single tyre safe axle load is hiked to 3 tonnes and single axle with two tyres is hiked to 7.5 tonnes. The hike in axle load capacity is about 20-25% which would impact the demand for new CV. Negative for Ashok Leyland, Tata Motors and Eicher Motors. However, the finer details are not available and the impact could be mitigated if the consideration safety norms could keep existing fleet out of the notification
 Cipla: Company gets USFDA approval for Caspofungin Acetate injection; used in treatment of variety of serious fungal infections – Neutral read thru; there are another 6-7 players with approval.

Glenmark Pharma: Company has acquired 100% equity stake in Zorg Laboratories Private Limited – Neutral read thru.

Tata Motors: JLR India expands its F Type line up by launching the new Jaguar F Type with a 2.0 litre ingenium petrol engine. The car is available in 2 versions – Coupe and convertible and is priced at Rs 90.93 lakhs and Rs 1.01 crore respectively (ex-Showroom). Positive read thru

TVS Motors: Partner BMW recalls G310R and G310GS motorcycles in the US (manufactured at TVS Motors plant) to fix a faulty side stand and / or frame that holds the stand. The recall covers 2,376 units across both the motorcycles. Neutral for TVS as it will procure the frame and side stand from the vendor for replacement. 

Banking: The government may infuse about Rs 8,000 crore in five or six state-run banks, including Punjab National Bank,  that are likely to fall short of regulatory capital requirements, as per media reports – sentimentally positive 

Parag Milk Foods : From last Sunday midnight, farmer’s organization in Maharashtra has suspended supply of milk to Mumbai & Pune as part of its agitation demanding a hike of Rs 5/litre in the procurement price of cow’s milk. Private and Co-operative milk unions in Maharashtra had already announced raising procurement price per litre of milk for farmers by Rs 3/litre from July 21st onward; negative read thru for Parag Milk & Prabhat Milk. However, Parag Milk is likely to be relatively less impacted with ~ 2/3rd of revenue from value added products.

JSW Steel : has restarted coking coal mining in the US after a gap of almost three years and plans to ramp up production from 2.4 lac tonnes to 1 mn tonnes p.a. gradually. Operations were suspended after coking coal prices had dropped below production cost; positive

Friday, 13 July 2018

13 July 2018 - Views & News


Business Standard

Inflation at 5-month high in June, IIP slows 
HCL Tech board clears Rs 4,000 crore share buyback
Tata Steel plans to sell South-East Asia operations
India could climb up to be 5th largest economy: FM
Iran an important partner for energy: India
India becomes newest shareholder of EBRD
Iran says will strive to ensure oil supplies to India
India's per capita income too low despite being 6th largest economy: NITI
GIC Re trades ex-bonus in ratio of 1:1
Avendus Capital leads race to acquire IDFC Mutual Funds, say sources
RCom calls DoT's approach on one-time spectrum charge discriminatory
Merger blues: Idea Cellular likely to move TDSAT against DoT demand


L&T construction arm bags orders worth Rs 2,388 cr
LPG subsidy jumps 60% as govt maintains prices to help consumers
LIC board likely to meet next week to discuss IDBI Bank deal
$63-b trade deficit untenable, India tells China
Airtel Payments Bank gets RBI, UIDAI nod to resume taking new customers
HIL Ltd to buy Parador Holdings of Germany
1,000 NPA accounts under scanner in ICICI Bank probe
India’s fuel demand up 8.7% in June, gasoline sales rise by 14.9%
With US trade under a cloud, China opens to Indian pharma
GE commissions first leg of grid-stabilisation system for PowerGrid
World oil supply risks being ‘stretched to limit’: IEA

Financial Chronicle

CCI dismisses complaints against Google; chairperson gives dissent note
RCom alleges govt of bias in Idea-Vodafone merger case; DoT denies charges
Tata, Fortum win Karnataka solar tender for Rs 2.85/unit
LPG subsidy a distortion, provide fuel-agnostic cooking sop: NITI Aayog
States fail to meet fiscal targets for third year: RBI
Brokers barred from taking cash from clients
NCLAT rejects Liberty House plea to stay resolution process of Bhushan Power
Tata-Mistry feud: Chairman doesn’t enjoy a free hand, says NCLT
Russia tightens grip on Europe’s gas
Government to forego nearly Rs 6,000 crore locked in tax disputes


HCL Tech: announced buyback up to 3.63 crore equity shares (representing 2.6% of the total paid-up equity share capital) at Rs1,100 per share (9.5% premium to CMP) for maximum of Rs 4,000 crore, we believe the acceptance  ratio for retail shareholders (holding less than Rs2 lakhs amount of shares) will remain on higher.  
View:  The buyback price premium to CMP is around 9.5% (the stock has run up around 6% after the announcement of buyback program dated on July 9, 2018), which is inline our expectations. It has now become more structured way of returning cash to shareholders (as last year the company had done similar kind of buyback   of Rs3,500 crore). We believe that this buyback program will have positive impact on EPS of 1%/1.5% in FY19/FY20E and also improve the company’ RoE. We have a BUY rating on the stock with a TP of Rs. 1,120.

Fortis Healthcare: Board approves binding bid from Malaysia’s IHH Healthcare at Rs 170/share (20% premium from closing price on July 12, 2018) – Positive; Open offer will be for both Fortis healthcare and Fortis Malhar…..(details in other news)

IDFC Ltd: As per media news, Avendus-KKR is said to be the frontrunner for acquiring IDFC MF and may have given offer of Rs 4000 Crore for the MF business - Sentimentally positive for IDFC


Fortis Healthcare: Board approves binding bid from Malaysia’s IHH Healthcare at Rs 170/share (20% premium from closing price on July 12, 2018) – Positive; Open offer will be for both Fortis healthcare and Fortis Malhar.
Fortis board approves IHH Healthcare BHD’s binding offer for Rs 4,000-crore equity infusion. As per the approved bid, Fortis Healthcare will issue 23.5 crore shares to IHH Healthcare at Rs 170 per share. The deal also offers a cash exit option to 26 % shareholders on expanded share capital through the mandatory tender offer of up to Rs 3,349 crore at a price of not less than Rs 170 per share. IHH will hold a stake of 31.2% to 57.21%, depending on the success of a mandatory open offer to the shareholders of Fortis Healthcare. The bid also provides for refinancing debt to the extent of Rs 2,500 crore. IHH will separately make an mandatory open offer to Fortis Malhar shareholders of up to Rs 29 crore at a price of Rs 58 per share. Proposal will require approvals from the shareholders and the Competition Commission of India (expected to come through within the next 2-3 months).

Varroc Engineering: Subsidiary Varroc Lighting Systems INC, USA has approved setting up new manufacturing facilities for exterior lighting components at Chennai and Poland. Positive read thru 

Tata Steel :  As per media reports, under its strategy to exit non-scalable operations, the company plans to sell part of its South-East Asia operations that contributed ~ 7% to FY’18 consolidated revenue & less than 1% to its consolidated EBITDA; stock to remain in focus

GE T&D India Ltd: GE Grid Solutions has commissioned the first leg of mega grid-stabilisation project of Power Grid Corporation for the northern grid. After completion, the project would be the world's largest Wide Area Monitoring System (WAMS) solution that entails monitoring and controlling of electricity supply across the country. Positive

Allahabad Bank : Public sector Allahabad Bank said it is mulling to off-load non-core assets like shareholding in various joint ventures and sell immovable properties to shore up its capital base. - positive read thru 

Airtel: Airtel Bank gets RBI, UIDAI nod to resume taking new customers – positive read-thru