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TOP
NEWS
Textile
Industry: The recent
GST council meet addressed the liquidity problem faced by exporters due to
delay in refund of input credit claim and cut the GST rate on man-made yarn
from 18% to 12% - this is positive for the entire textile sector which forms
one of the major portion of India’s total exports and thus positive for Arvind,
Raymond, Trident and man-made fibre companies like SRF, Garware Wall
Ropes…..(details in other news)
Jewellery: The
government decided to remove the gems and jewellery dealers from purview of the
reporting requirement under the Prevention of Money Laundering Act (PMLA;
extended the provisions of PMLA from the present limit of Rs 50,000 to Rs.2,00,000 in the case of jewellery purchases; also PAN
card will no longer be mandatory on the purchase of jewellery for over Rs
50,000 – positive for Titan, PC Jewellers and other jeweler companies
RIL: Sings
agreement to sell its Marcellus shale gas play to Kalnin Ventures LLC for
$126million – steep discount to purchase consideration of $392million;
sentimentally negative
Reliance Marcellus II, a
subsidiary of Reliance Industries Limited (RIL), has signed an agreement with
BKV Chelsea (an affiliate of Kalnin Ventures LLC) to sell its interest in
certain upstream assets in north-eastern and central Pennsylvania, which are
operated by Carrizo Oil & Gas for consideration of $126million. Moreover,
RIL is likely to get contingent payment of $11.25million depending on the
natural gas prices over the next three years. RIL had bought the assets in 2010
at $392million and thus selling the same at steep discount to price paid –
sentimentally negative for RIL.
Cadila: Cadila
gets USFDA approval for Amitriptyline Hydrochloride Tablets USP, used to treat
depression. Also It receives USFDA final approval to market Dutasteride Capsule
0.5mg (used to treat enlargement of the prostate gland) – Positive for Cadila.
Sun Pharma:
Sun Pharma’s research arm Sun Pharma Advanced Research Company’s (SPARCs)
Baclofen GRS (used to treat spasticity in patients with multiple sclerosis)
fails to meet Phase 3 end points – Negative for SPARC and Sun Pharma;
Baclofen GRS was one of the key product in SPARC’s pipeline, commercialization
of which is now a low probability. Hence it is negative for Sun Pharma
(as Sun is manufacturing and marketing partner for Baclofen GRS), as it is
setback to its efforts to build speciality business in US. Xelpros and Elepsia
XL are two mid size opportunities for SPARC & Sun, which are delayed due to
Halol (and is now under site transfer process).
Zee Entertainments: Acquires 100% stake in 9X Media,
INX Music for Rs 160 cr – this acquisition will help ZEEL to strengthen
its music portfolio in niche genres and expanding its reach in regional
markets – Long term positive ……… (details in other news)
Motherson Sumi
Systems: Wholly owned subsidiary MSSL Estonia has gained title to residual
outstanding minority shares of PKC Group (about 6.3% stake of PKC Group). With
the above share acquisition, PKC has now become wholly owned subsidiary of
Motherson Sumi and can now be delisted. Positive
Automobiles:
Government to clear pending refunds of exporters by November end; no tax under
GST for exporters for next six months; positive read thru for Bajaj Auto and
Bharat Forge……… (details in other news)
Hotel/restaurant
industry: The government has indicated that it will consider the reduction of
GST rate on AC restaurants from 18% to 12% in the next GST council meet. If it
happens it will be positive for Specialty Restaurants, Jubilant Foodworks
OTHER
NEWS
Jaybharat
Maruti Group: Income Tax officials have raided properties of Jaybharat
Maruti Group across Delhi, Harayana's Gurugram and Faridabad and Uttar
Pradesh's Ghaziabad and have seized Rs 7 cr in cash and 3 Kgs of Gold – Sentimentally
Negative
Textile
Industry: The recent
GST council meet addressed the liquidity problem faced by exporters due to
delay in refund of input credit claim and cut the GST rate on man-made yarn
from 18% to 12% - this is positive for the entire textile sector which forms
one of the major portion of India’s total exports and thus positive for Arvind,
Raymond, Trident and man-made fibre companies like SRF, Garware Wall Ropes
The GST council announced major cuts in taxes
of various items and announced various measures to support exporters. Keeping
in view of the liquidity problem being faced by the exporters, the Council has
decided to immediately start refund process for the month of July by 10th
October while exporters can get refund of August by 18th October. For the
remainder of the fiscal, they will operate under an exempted category paying a
nominal 0.1 per cent GST. As a long term solution, an e-wallet will be created
for every exporter where a notional amount will be given in advance and the
refund will be offset later against that amount. The e-wallet option will be
launched by 1st April 2018. The GST rate on man-made yarn used in textile
sector has been reduced to 12 per cent from 18 per cent.
Automobiles:
Government to clear pending refunds of exporters by November end; no tax under
GST for exporters for next six months; positive read thru for Bajaj Auto and
Bharat Forge
The government will clear pending GST refunds
of exporters by November-end and over the next six months. Further, no tax will
be levied on exports as the Council has decided to revert to the pre-GST
era. Also, from April 1,2018 an e-wallet service will be launched that
will give exporters notional credits that can be used to pay GST. The credit in
the wallet would be transferable. GST does not provide for any exemptions,
and so exporters are required to first pay Integrated-GST (IGST) on
manufactured goods and claim refunds after exporting them. This put severe
liquidity crunch. To ease their problems, the GST Council decided a
package for them that includes extending the Advance Authorisation / Export
Promotion Capital Goods (EPCG) / 100 per cent EOU (Export Oriented Unit)
schemes to sourcing inputs from abroad as well as domestic suppliers till March
31, 2018 thus not requiring to pay IGST.
VA Tech Wabag
: National Company Law Tribunal passes order for initiation of Corporate
insolvency resolution process in matter relating to CCCL ; stock in focus
With reference to the matter relating to
Consolidated Construction Consortium Ltd (CCCL) vs. VA Tech Wabag Ltd in
respect of an application filed by CCCL in respect of an alleged default in
payment of dues amounting to ~ Rs1.5crs, the National Company Law Tribunal,
Division Bench, Chennai (NCLT) at its hearing held on October 6, 2017 has
passed an order for initiation of corporate insolvency resolution process under
the provision of Insolvency and Bankruptcy Code, 2016. VA Tech Wabag has filed
an appeal against this order with the National Company Law Appellate Tribunal.
V-Guard,
Shakti Pumps and KSB pumps in focus: GST rate on water pumps reduced to 18%
from 28%; positive
RIL:
Government had won an arbitration against Reliance Industries (RIL) related to
quantum of penalty for non completion of minimum work program for four blocks.
RIL has already paid the penalty and hence the event is neutral for RIL.
Indian
Overseas Bank: The Reserve Bank of India ( RBI) has initiated prompt corrective
action or PCA on Indian Overseas Bank in view of high non performing assets of
the bank. This will be the seventh bank among the 21 PSU banks to be placed
under restrictions since March this calendar year - Negative read through
as the category means OBC will face restrictions in terms of opening new
branches, hiring staff and lending to sub-investment grade companies. PCA is
imposed when thresholds related to capital, asset quality and earnings are
breached. The bank can continue to accept deposits and give small tickets loans
Axis Bank: The
Bank has completed acquisition of digital payments platform ‘FreeCharge’ for
Rs373.2 crore – sentimentally positive for Axis Bank
IDBI Bank:
Government raises stake in IDBI Bank to 77.79% by acquiring 3.81% shares
through preferential allotment. As per media reports the government has infused
Rs1861 crore – neutral read thru for IDBI Bank
Punjab
National Bank: puts 32 NPAs with outstanding loan of Rs1,176 crore for auction
– Neutral Read thru
Reliance Industries: JIO Paymeny Bank is
expected to start it's operations in December-2017 as compared to earlier
launch timeline of October-2017.
Zee Entertainments: Acquires 100% stake in 9X Media,
INX Music for Rs 160 cr – this acquisition will help ZEEL to strengthen
its music portfolio in niche genres and expanding its reach in regional
markets - positive
Zee Entertainment announced that it has entered into a definitive
agreement to acquire 9X Media and its subsidiaries from New Silk Route and other
shareholders for Rs160 crore. 9X Media, along with its subsidiaries, operates a
bouquet of six music channels - 9XM (Latest Bollywood), 9X Jalwa (Evergreen
Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao
(Hindi Classics).
Tata Communications: Ties Up with Motorsport.tv
Tata Communications has entered into partnership with Motorsport.tv to
power the international growth of the network’s internet television platforms.
The company will harness its global reach, media capabilities and motorsports
expertise to bring the latest updates from major motorsport events seamlessly
to Motorsport.tv viewers around the world.
GoM set up to make GST scheme more attractive
GTL Infra bar RCap arm from bidding for tower assets
India plans to reduce its drug reliance on China
Telecom sector critical, needs urgent govt help: Experts
New limit to gold buying coming soon: Government
SMEs garner record Rs 656 cr via IPOs in Apr-Sept
Idea tops Trai's 4G upload speed rankings in September
SAIL signs technical pact with POSCO to reap benefits for IISCO Steel Plant
Composition scheme window open for six more months
New track for Rs 1 lakh-cr station development plan
160 companies to face penal action for CSR violations
PNB puts 32 NPAs with outstanding loan of Rs 1,176 cr on block
Kingfisher loan default probe: Govt officials, directors under lens
IndiGrid to buy 3 firms from Sterlite Power for Rs. 1,490 cr
Govt to shut down DGS&D this month
Jaitley to take part in IMF, World Bank annual meetings
Patanjali Ayurved planning to invest Rs. 5,000 cr this fiscal
Adani Enterprises to demerge renewable energy biz
IEX, GIC Re public issues to hit markets this week
Nabard buys 7% more in Sidbi from IDBI Bank for Rs900 crore
Jio Payments Bank likely to launch in December
Jaiprakash Associates approves debt restructuring
IndiGrid approves acquisition of 3 power transmission assets
Over 54,000 petrol dealers on nationwide strike on 13 October
Insolvency row: UltraTech files petition against Lavasa Corporation
GST breather for SMEs, exporters to boost economy: Analysts
Goods transporters to observe chakka jam against GST on Monday
Premiums set to cost more after listing of insurers
Close to 21k cr flows into equity MFs in September
FIIs to remain interested as India offers highest real rate of return
Sugar prices may remain firm despite high output
Seasonal production to put pressure on rubber rates
