NBCC (India) in focus as government to dilute stake through OFS

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NBCC (India) announced after market hours yesterday, 19 October 2016, that the government proposes to sell up to 9 crore equity shares, or 15% equity, of NBCC (India) through offer for sale (OFS) through a separate, designated window on the stock exchanges. The OFS will open on 20 October 2016 for non-retail investors and on 21 October 2016 for retail investors and non-retail investors who choose to carry forward their un-allotted bids. The floor price for the OFS shall be Rs 246.50 per equity share. The OFS floor price is at 2.57% discount to the stock’s previous closing price of Rs 253 on BSE. As on 30 June 2016, the government held 90% stake in NBCC (India).

Reliance Industries and Yes Bank will declare its Q2 September 2016 results today, 20 October 2016.

Hindustan Zinc’s net profit fell 15.41% to Rs 1901.87 crore on 10.51% decline in total income to Rs 4647.62 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 6% to Rs 2077 crore in Q2 September 2016 over Q2 September 2015.

The company said its revenues decreased during the quarter on account of lower volumes, partly offset by higher zinc & silver prices and rupee depreciation. Net profit decreased dueing the quarter due to higher depreciation and lower investment income on account of smaller corpus despite higher mark to market gains. The result was announced after market hours yesterday, 19 October 2016. Bharti Airtel after market hours yesterday, 19 October 2016, announced an offer for all customers purchasing a new 4G mobile handset. Airtel is offering 10 GB 4G/3G data on a recharge of Rs 249 along with any new 4G handset. 1 GB data will be instantly credited to the customer’s account and the additional 9 GB data can be claimed by the customer through MyAirtel App. The data will be valid for 28 days. Users can avail a maximum of 3 recharges within 90 days, on the offer.

The special offer, which was introduced in Gujarat and Madhya Pradesh & Chhattisgarh last week, has now been extended across and is available across all brands of 4G handsets. Airtel 4G is currently available in 18 circles across India. In non 4G circles, 3G data will be available to customers with their 4G devices. Pack Prices may vary from circle to circle. Offer on 4G handsets only and can be availed within 30 days of purchase of the handset.

RBL Bank’s net profit rose 34.3% to Rs 89.89 crore on 37.91% rise in total income to Rs 1071.04 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 19 October 2016.

Bayer CropScience’s net profit rose 2.12% to Rs 159.10 crore on 8.22% rise in total income to Rs 1118.10 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 19 October 2016.

Tata Coffee’s consolidated net profit rose 61.89% to Rs 44.65 crore on 7.19% fall in total income to Rs 375.76 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 19 October 2016.

Quess Corp’s consolidated net profit increased 65.86% to Rs 30.12 crore on 27.27% rise in total income to Rs 1023.38 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 19 October 2016.

Ceat announced of a rollout a new breed of ‘Puncture Safe’ tyres for the two wheeler market. This new range will offer a technology to consumers that will allow tyres to resist punctures with no loss of air pressure and allow a hassle free and safe ride. This new range is currently available only in the states of Andhra Pradesh and Telangana and the company proposes to roll out the “Puncture Safe” tyre range in the other markets in a phased manner. The announcement was made after market hours yesterday, 19 October 2016.

Rashtriya Chemicals and Fertilizers (RCF) has issued commercial paper for Rs 150 crore on 19 October 2016, in favour of ICICI Bank, having maturity date as 30 December 2016. The announcement was made after market hours yesterday, 19 October 2016.

Suzlon Group announced a joint venture with the Unisun Energy Group for the development and construction of a 15 megawatts (MW) Solar PV Project located at Bhainsa, Adilabad District, Telangana. The announcement was made after market hours yesterday, 19 October 2016.

According to the contract signed between Suzlon Group and the Unisun Energy Group on 22 August 2016, the Unisun Energy Group shall acquire a 49% stake in Vayudoot Solarfarms, a special purpose vehicle (SPV) set-up by Suzlon for executing this project. Unisun Energy has the option to acquire the balance of the 51% stake in the SPV in the future in accordance with the relevant rules and regulations. The off-taker of the Vayudoot project will be the Telangana State Northern Power Distribution Company Limited (TSNPDCL). Suzlon will be responsible for project commissioning and to provide comprehensive operation and maintenance services for a period of 25 years. The project is expected to be commissioned in the financial year 2017 (FY17).

Suzlon won solar projects of 210 MW in Telangana through a competitive bidding process and the PPAs for the same were signed in February, 2016. These include one project of 100 MW, one of 50 MW and four projects of 15 MW each.

NCC will be watched. The NCC-BGR Consortium, which was formed between NCC and BGR Mining & Infra (BGR), has been awarded the Pachhwara North Coal Block Mine Developer and Operator Project (MDO Project) by the West Bengal Power Development Corporation (WBPDCL). The Pachhwara North Coal Block is located in the Pakur District of Jharkhand State and was allocated by the Ministry of Coal, Government of India, to the WBPDCL and the coal extracted is for use for their power plants in West Bengal. The announcement was made after market hours yesterday, 19 October 2016.

The project has coal reserves of nearly 400 million tons and over burden of 1650 million cubic meters. The rate of mining fee per ton of coal is about Rs 890 including taxes. The total duration of the Project is about 30 years and will be extended for further period until the coal reserves are exhausted. The peak rated capacity of the mine is 15 million tons per annum (to be achieved by the 6th year of commencement of operation). The value of the project including taxes is estimated to be Rs 35000 crore (approximately) over a period of 30 years and the annual revenue at rated capacity is about Rs 1335 crore. These values are however valued at the current prices. Further, the contract provides for escalation of mining fees etc and therefore the yearly turnover may vary in line with the escalation of the input prices.

Tata Communications announced the successful completion of the data centre joint venture transaction with ST Telemedia, a strategic global investor focused on communications, media and technology sectors. The announcement was made after market hours yesterday, 19 October 2016. In May 2016, the parties announced their entry into definitive agreements whereby ST Telemedia, through its wholly-owned subsidiary, ST Telemedia Global Data Centres (STT GDC), agreed to acquire a 74% majority stake in Tata Communications’ data centre business in and Singapore. The transaction for STT GDC’s acquisition of the majority stake in the data centre business has been completed and is estimated at 100% enterprise value of Rs 3140 crore. Tata Communications remains a significant shareholder. The transaction for the Singapore data centre joint venture is expected to close shortly. The strategic partnership provides both companies with the opportunity to further grow their data centre businesses, offering advanced managed data centre services that enable digital transformation for customers.