Cadila Healthcare Board Nod For Up To Fund Raising Up To Rs. 18,500 Crore

New Delhi: Drug firm Cadila Healthcare on Monday said its board has approved raising up to Rs. 18,500 crore through various financial tools, including securities in domestic as well as international markets. The board considered and approved in-principle to various fund raising proposals, Cadila Healthcare said in a regulatory filing. It said the fund raising could be via issue of shares or convertible bonds or debentures through qualified institutional placement (QIP) for an aggregate amount of up to Rs. 10,000 crore.

The company’s board of directors also approved issuing secured/unsecured redeemable non-convertible debentures/foreign currency bonds on private placement basis for an amount up to Rs. 3,500 crore during the current fiscal year, it said.

Besides, cleared issuing foreign currency bonds/foreign currency convertible bonds (FCCBs) for an amount up to Rs. 5,000 crore.

Cadila Healthcare did not elaborate on how it plans to utilize the capital once raised

The company however did not elaborate as how it plans to utilize the capital once raised.

Headquartered in Ahmedabad, the Zydus Cadila group has global operations in four continents spread across the US, Europe, Latin America and South Africa and 25 other emerging markets. Its operations cover healthcare solutions ranging from formulations, active pharmaceutical ingredients (APIs) and animal healthcare products to wellness products.

Markets May See-Saw Amid Derivatives Expiry As GST Launch Nears: Analysts

New Delhi: Stocks may turn volatile this week amid derivatives expiry and will be steered by the
countdown to the all-new GST kicking off on July 1, say analysts. Markets were closed on Monday for Id-Ul-Fitr (Ramzan Id). “The PM’s US visit, GST rollout and derivative expiry will dominate the market trend in a truncated trading session this week,” said Vijay Singhania, founder-director at Trade Smart Online. There is a bit of nervousness with the scheduled rollout of the landmark tax reform Goods and Services Tax (GST), he added.

Other factors that will continue to play on market sentiment include progress of monsoon, global macroeconomic data, movement of the rupee against the dollar and crude oil price, he said.

“The most important event will be the meeting of Prime Minister Modi with US President Trump. Markets will have its eyes glued on what kind of chemistry develops between the two leaders,” said V K Sharma, head-private client group (PCG) at HDFC Securities.

The Sensex has gained 81.81 points while the Nifty shed 13.10 points on a weekly basis

Over the last week, the Sensex gained 81.81 points, or 0.26 per cent, while the Nifty shed 13.10 points, or 0.13 per cent.

“This week futures and options (F&O) expiry is due. So, we are expecting market to remain traded in a volatile zone,” said Abnish Kumar Sudhanshu, director and research head at Amrapali Aadya Trading and Investments.

Once GST turns into reality, indices will take cues from the same, he pointed out.

Sensex Erases Opening Gains, Nifty Falls Below 9,550; PSU Banks Weigh

The Sensex, which had risen nearly 150 points in opening deals on Tuesday, erased morning gains while the Nifty fell below its important psychological level of 9,550 on the back of selling pressure in PSU banking, realty and energy shares.Analysts say that the markets are likely witness some volatility this week amid derivatives expiry and will be steered by the countdown to the all-new GST (Goods and Services Tax) kicking off on July 1. Markets were closed on Monday for Eid-Ul-Fitr (Ramzan Id). “The PM’s US visit, GST rollout and derivative expiry will dominate the market trend in a truncated trading session this week,” said Vijay Singhania, founder-director at Trade Smart Online. There is a bit of nervousness with the scheduled rollout of the landmark tax reform Goods and Services Tax (GST), he added.

The BSE mid-cap and small-cap indices traded marginally lower

Meanwhile, from the Nifty basket of shares, 22 were trading higher while 29 were among the losers. Aurobindo Pharma was the top Nifty gainer, up 2 per cent at Rs. 686. Adani Ports, ITC, Cipla, Indian Oil, HDFC, Asian Paints, Hindustan Unilever, Bharti Airtel and Yes Bank were also among the gainers. On the other hand, State Bank of India, Indiabulls Housing Finance, BPCL, GAIL India, Infosys and NTPC were among the laggards.

The state-run lenders were facing the heat of selling pressure after reports suggested that strong steps taken by Reserve Bank of India to resolve non-performing assets (NPAs) are likely to raise provisioning by a whopping 25 per cent this year as lenders will take up to 60 per cent hair cut while resolving these accounts. Reacting to the news, the PSU Bank Nifty was among the top sectoral losers, down nearly 2 per cent. Power, private sector banks and oil & gas stocks were also facing a mild selling pressure.

The broader markets were also trading on a lacklustre note with the BSE mid-cap and small-cap indices trading marginally lower.

 

Reliance Industries To Seek Shareholder Nod To Raise Rs. 25,000 Crore

Mumbai: Reliance Industries will seek shareholder approval to raise Rs. 25,000 crore ($3.88 billion) via sale of secured or unsecured redeemable non-convertible debentures in a private placement, it said in a release.

Reliance Industries will conduct its annual general meeting with shareholders on July 21

The company will conduct its annual general meeting with shareholders on July 21, and will also seek an approval on the same day.

The company will look to raise the money in one or more tranches as it may deem fit, without any limitations on when the debentures are to be issued, it stated.

($1 = Rs. 64.43)

 

Tejas Networks Makes Tepid Listing On Stock Markets, Jumps 5%

Shares of Tejas Networks Limited which got listed on stock exchanges today made a tepid debut. The shares of the company jumped as much as 5.44 per cent to hit intraday high of Rs. 271 against its issue price of Rs. 257. Tejas Networks IPO was oversubscribed 1.88 times, with qualified institutional buyers’ (QIBs) portion getting oversubscribed 2.16 times, non-institutional investors 48 per cent and retail investors 3.10 times.

Price band for the offer was fixed at Rs. 250-257 per share and was open for bidding from June 14-16.

Little over 1.35 crore shares were allotted to the anchor investors at the price of Rs. 257 apiece — the upper end of the IPO price band.

Tejas Networks Makes Tepid Listing On Stock Markets, Jumps 5%
The 17 entities include Abu Dhabi Investment Authority – Behave, Amansa Holdings Pvt Ltd, Columbia Emerging Markets Fund, SBI Life Insurance Company Ltd, Reliance Nippon Life Insurance Company Ltd and BNP Paribas Arbitrage, according to a filing made by Tejas Networks to the BSE.

Spread over 60 countries, Tejas Networks is into developing and selling high-performance products to telecom service providers, utility companies, defence firms and government entities, among others.

Axis Capital, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) Pvt Ltd were the book running lead managers for the offer.

Shares of Tejas Networks ended 2.45 per cent higher at Rs. 263.30.

Orient Bell: HDFC Securities’ Top Stock Pick For The Week

Orient Bell Limited is HDFC Securities’ top stock pick for the week. HDFC Securities has recommended buying Orient Bell Limited (OBL) for an immediate target price of Rs. 299 and above Rs. 299 it expects the stock to go up to Rs. 329 in two-three quarters. Orient Bell Ltd, earlier known as Orient Ceramics & Industries, was incorporated in May 1977. The company is engaged in manufacturing, trading and selling of digital, vitrified, ceramic and ultra-vitrified tiles under brands Orient, Orient International, and Bell across India.

HDFC Securities in a note to its clients said, “Company is the first to have an in-house European designer. Company has a manufacturing capacity of 20 mnsq meters in house and an additional third party manufacturing capacity through its Joint Ventures of 4 mnSq meters. OBL has manufacturing facilities in Sikanderabad (Uttar Pradesh), Dora (Gujarat), and Hoskote (Karnataka).”

According to HDFC Securities, “OBL’s strong foothold in the domestic market with value-added product portfolio, higher penetration in rural and smaller cities and better working capital management could provide better growth opportunities going forward.”

Orient Bell is engaged in manufacturing, trading and selling of tiles
“Visibility of decent growth in industry wide sales, shift in share from unorganized to organized players and improvement in brand value of Orient Bell will help OBL to register good topline and bottomline growth going forward. Reduction in debt due to the latest sale of trust shares will also help cut interest costs. Gradual inching up of margins to the levels of peers will result in fast increase in profit after tax and rerating of the stock. Additional capacity due to the latest capex initiatives will enable faster topline growth in FY18E and FY19E.”

HDFC Securities recommends buying Orient Bell stating that “We feel investors could buy the stock at the current market price (CMP) and add on dips to Rs. 238-241 band for sequential targets of Rs. 299 and Rs. 329. At the CMP of Rs. 262.40 the stock trades at 13.2 times FY19 estimated earnings per share.”

At 10:18 am, Orient Bell shares traded 5.25 per cent higher at Rs. 276.50, outperforming the Nifty which was down 0.3 per cent.

 

Sensex Down Over 100 Points, Nifty Below 9,550; PSU Banks Weigh

The Sensex fell over 100 points and Nifty was trading below its important psychological level of 9,550 as PSU banking shares came under heavy selling pressure after a report suggested that the strong steps taken by Reserve Bank to resolve NPAs are likely to raise provisioning by a whopping 25 per cent this year as lenders will take up to 60 per cent hair cut while resolving these accounts. Analysts say that the markets are likely witness some volatility this week amid derivatives expiry and will be steered by the countdown to the all-new GST (Goods and Services Tax) kicking off on July 1.

PSU banking shares were among the worst hit, the PSU banking index on the NSE fell over 3 per cent with shares of banks like Bank of Baroda, Punjab National Bank, Bank of India, Oriental Bank of Commerce, Allahabad Bank and Syndicate Bank falling between 3 and 5 per cent each.

Capital goods, oil & gas and IT shares were also facing the heat of selling pressure.

Sensex Down Over 100 Points, Nifty Below 9,550; PSU Banks Weigh
From the Nifty basket of shares, 36 were trading lower while 15 were among the gainers. BPCL was the top Nifty loser, down 4.55 per cent at Rs. 602. Bank of Baroda, ICICI Bank, Infosys, UltraTech Cemet, Ambuja Cements, Tata Motors DVR and Power Grid were also among the losers. On the other hand, ITC, Bharti Airtel, Tech Mahindra, HDFC Bank and Adani Ports were among the gainers.

The broader markets were underperforming the benchmark indices with BSE mid-cap and small-cap indices down over a per cent each.

The overall market breadth was extremely bearish as 1,543 shares were declining while 608 were advancing on the BSE.

 

Nifty Falls For Fifth Day In A Row, Closes At One-Month Low

The NSE Nifty fell for a fifth straight session and the Sensex closed below important psychological level of 31,000 on Tuesday as lenders took a hit following a report that the country’s central bank has demanded higher provisioning for loans submitted under the insolvency process. The broader Nifty fell below its important psychological level of 9,500 and the Sensex fell nearly 300 points.

The Reserve Bank of India has asked banks to set aside at least 50 percent of the loan amount for accounts referred to bankruptcy courts, The Economic Times reported on Monday citing two bankers familiar with the order. The move could hurt banks’ earnings to the tune of Rs. 50,000 crore, it reported.

Analysts expect government-owned banks to be the worst affected as they hold the chunk of defaulted loans in the country.

“PSU banks will be under pressure for some more time as improvement in earnings for these banks will get delayed due to higher provisioning requirement,” said Siddharth Purohit, senior research analyst at Angel Broking.

The broader NSE Nifty ended 0.66 percent or 64 points lower at 9,511 while the benchmark BSE index closed 0.57 percent or 180 points lower at 30,958.

Nifty Falls For Fifth Day In A Row, Closes At One-Month Low

The NIFTY PSU Bank index slid as much as 4.26 percent to its lowest since March 24.

India’s biggest lender State Bank of India declined as much as 3.3 percent while Bank of Baroda Ltd fell as much as 4.8 percent to its lowest since Jan. 23.

Aurobindo Pharma Ltd climbed as much as 3 percent to its highest since March 24 after Jefferies analysts raised price target on the stock to Rs. 780 from 750 and maintained their “buy” rating.
The broader markets also faced the heat of selling pressure. The BSE mid-cap index declined 0.78 percent and the small-cap index fell 1.56 percent.

 

Scamsters’ Trading Tips Via SMSes: SEBI Seeks RBI, TRAI Help

New Delhi: Seeking to capitalise on the stock market rally, fraudsters are flooding gullible investors with unsolicited offers promising huge gains, prompting regulator Sebi to consider a closer coordination with banking and telecom regulators to check this menace.

These offers are mostly being made through SMSes, WhatsApp and various social media platforms, wherein names of some established brokerage houses and exchanges are also being misused.

While the Securities and Exchange Board of India (Sebi) has already taken action in several such cases so far, it is investigating a number of others involving similar activities, a senior official said.

To check the menace, the regulator is also looking at a closer coordination with its peers from the banking and telecom sectors — namely the Reserve Bank of India (RBI) and the Telecom Regulatory Authority of India (TRAI), they added.

Typically, Sebi depends on the call data records from the telecom companies and the financial transaction statements from the banks in its probe against such cases of frauds, where investors are lured into depositing money into designated bank accounts with promise of huge returns.

Generally, the gullible investors are first lured by these scamsters through SMSes, WhatsApp messages and posts on social media platforms like Facebook and Twitter, after which they are given certain bank account numbers to deposit money.

The mobile numbers and URLs, as also the bank account numbers, become the mainstay for the investigation by Sebi, ownership details of which help the regulator reach the perpetrators of such manipulative activities.

SEBI has already taken action against firms providing investment advice without registration.

Sebi has already taken action against several entities for providing investment advice without registration. These included MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, Orange Rich Financials, GoCapital, CapitalVia Global Research and one Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala.

Besides tightening its noose on the scamsters, Sebi enhanced its investor awareness campaign on these issues.

In several latest public notices, the capital markets regulator cautioned the investors against trading on the basis of unsolicited tips received through SMSes, social media, websites and other public media platforms.

It also asked the public to deal with only Sebi-registered investment advisers and research analysts and warned the unregistered entities of strict action.

Last year, Sebi had floated a consultation paper to ban unauthorised trading tips through SMSes, WhatsApp, Twitter, Facebook and other social media platforms, as also games, competitions and leagues relating to securities market.

It also proposed to curb unsolicited investment advice and promotion of investment products through electronic and broadcasting media platforms and has sought greater checks and balances for online investment advisory services and use of automation or robotic tools.

However, the regulator has yet to put in place a final regulation in this regard.