Companies and Markets

Companies & Markets

NTPC’s SJVNL acquisition likely this year

After kickstarting consolidation in the oil sector, the government plans to undertake a similar exercise in the power sector this year, allowing state-owned NTPC to buy out the entire central government’s equity in hydropower generator SJVNL.

Focus on individual stocks

The market closed marginally higher after a highly volatile trade with the Sensex ending 46.64 points or 0.13 per cent higher at 35,739.16, the Nifty 50 index rose 13.85 points or 0.13 per cent to settle at 10,856. The S&P BSE Mid-Cap index fell 0.46 per cent whereas the Small-Cap index fell 0.21 per cent. Both these indices underperformed the Sensex. The market breadth was negative as 1,297 shares rose and 1,380 shares fell. The markets opened higher but gradually lost steam as profit taking set  after five consecutive days of positive advance decline ratio of 0.94.

Bayer begins open offer process for Monsanto India

German chemicals and pharma major Bayer Group has launched the process for over Rs 1,300-crore open offer to acquire up to 26 per cent additional stake in Monsanto India, following global acquisition of the US biotech firm for $63 billion.

Bayer AG, along with its Indian arm Bayer CropScience, has proposed to buy up to 44,88,315 shares, representing 26 per cent of the fully diluted voting equity share capital of Monsanto India, according to a regulatory filing.

The open offer is set at Rs 2,926.87 a share and the maximum size of the offer will be Rs 1,313.67 crore.

Bharat 22 ETF to raise Rs 8,400 cr from new issue

After announcing a Rs 466-rore Rites IPO this week, the government is looking to raise Rs 8,400 crore through Bharat 22 ETF Further Fund Offer (FFO), which is being managed by ICICI Prudential Asset Management Company.

Bharat 22 ETF FFO to raise Rs 6,000 crore, with a green-shoe option to retain Rs 2,400 crore more, opens on June 19 and closes on June 22.

The ETF received good response last year when it was launched.

NLC to trade power independently

Having secured a licence, Neyveli Lignite Corporation will be independently trading in the power market through a power trading arm. The company hopes that the new development will double its revenue from trading.

NLC has secured a Category I licence for power trading from Central Electricity Regulatory Commission last week. With this licence, the company can independently trade in the power market.

“As a part of its business promotion and diversification plan NLCIL has joined the league of Accredited Power Traders in the country,” the company said.

Pharma stocks see turn in fortune

Brokerages are getting bullish on pharmaceutical stocks after the recent rally and have raised price targets of bluechip pharma stocks. They expect pharma earnings to grow 22 per cent year-on-year in the current financial year, thanks to easing US FDA restrictions, moderation in price fall and product launches lined up for the upcoming quarters.

Hong Kong branches of PNB, IOB under lens

Hong Kong-based branches of Punjab National Bank and Indian Overseas Bank have been put under enhanced supervisory oversight and barred from proactively soliciting customer deposits by the Hong Kong Monetary Authority as the capital adequacy ratio of the two lenders fell below the regulatory requirements.

SBI CMD’s salary is too little compared to HDFC Bank MD’s

State Bank of India (SBI), one of the world’s 50 largest banks, pays a pittance to its top management personnel when compared to salaries earned by their counterparts in top private banks.

SBI chairman and managing director Rajnish Kumar drew a gross salary of Rs 14.25 lakh for six months since taking over as the bank chief in 2017-18. Kumar was elevated to the post on October 7, 2017. His remuneration as SBI chief consisted of basic salary of Rs 13.48 lakh and a dearness allowance of Rs 73,968 and other component of Rs 3,000, according to SBI annual report for 2017-18.

TCS plans another share buyback; shares up 2.43%

Shares of Tata Consultancy Services TCS), India’s largest company by market capitalisation, jumped by almost 3 per cent on Wednesday after the company informed stock exchanges that its board will consider share buyback on June 15.

TCS shares finally settled the day at Rs 1,824.20 on BSE, 2.43 per cent higher than its previous close. Its market capitalisation soared by around Rs 17,000 crore to Rs 6.98 lakh crore from 6.81 lakh crore a day earlier.

HDFC Bank’s plan to raise Rs 24K cr via FDI gets govt nod

The government on Wednesday approved the proposal of HDFC Bank to raise an additional capital of Rs 24,000 crore by selling equity to foreign investors to fund its business growth.

With the raising of this capital, foreign direct investment (FDI) in the bank will hit the regulatory ceiling of 74 per cent. At present, the FDI in the bank stands at 72.62 per cent. As per the RBI guidelines, foreign holding in public sector banks cannot go beyond 74 per cent.