• Market is expected to open on positive note and likely to remain range bound during the day. • Gems and jewellery exports from India fell 10.47% to Rs 14,888.75 crore in July this year as against Rs 16,630.03 crore in the corresponding month last year. In dollar terms, however, exports declined by 16.9% to $2490.60 million versus $2996.94 million in the month under consideration • FMC to meet some institutional investors of MCX on Tuesday for road ahead • Hexaware Tech – Event Update – Institution Desk :Baring PE Asia (Baring Asia) has signed a definitive agreement to purchase ~125mn equity shares of Hexaware Technologies (HTL) from the promoter group and GA Global Investments, a General Atlantic (GA) affiliate, totaling 41.8% stake at Rs126/share or Rs135/share, depending on whether Baring Asia’s total shareholding reaches 50% or more after the open offer. Baring Asia will make an open offer for 26% additional stake at Rs135/share. Transaction value at Rs135/share amounts to ~Rs27.5bn (US$420mn). There will be no change in the senior management team of HTL, which is a key factor for business continuity and client confidence. In our view, the critical factor is what value addition Baring Asia brings to the company going forward. As the stock price has risen more than 50% over the past two months, we have downgraded our rating on HTL to Hold from Buy, keeping the target price unchanged at Rs132. As regards the open offer, we advise the investors to tender their shares at the offer price of Rs135/share. • Tata Motors Ltd will observe a three-day block closure at its Jamshedpur plant from August 29 • Anadarko Petroleum Corp agreed to sell a 10% stake in a gas field offshore Mozambique to a unit of Oil & Natural Gas Corp for $2.64 billion in cash. • RBI has notified the decrease in foreign institutional investment (FII) limit in IDFC • Ranbaxy Laboratories Ltd could withdraw from some global markets in the near future, while consolidating in others. • Jindal Steel and Power Ltd (JSPL) has secured five exploration licences for iron ore mining in African countries. • Indian Oil Corporation Limited has said it would go-ahead with its Rs 4,320 crore first liquefied natural gas (LNG) plant at Ennore • Hindustan Petroleum Corp. says fire reported at Visakhapatnam refinery • Directors of ITC will meet on Aug. 28 to consider proposal for demerger of safety matches and agri business of Wimco into the company • Reliance Infrastructure – Event Update – Institution Desk: The MERC (Maharashtra Electricity Regulatory Commission) has issued its multiyear tariff order for the second control period (of FY13-FY16) for the Mumbai power distribution company (discom) of Reliance Infrastructure (R-Infra). As per the order, average tariff would increase by 0.18% from 1 September 2013 but decrease by 12% and 11% in FY15 and FY16, respectively. The MERC also approved the recovery of regulatory asset charge (RAC) of Rs55.5bn over the next six years (Rs9.3bn/year) from consumers and also the levy of cross subsidy surcharge (CSS) on Tata Power Company’s (TPC) consumers using R-Infra’s network. We expect the MERC order to improve the profitability and cash flow of R–Infra as well as lead to the reverse migration of consumers to the company’s network. Hence, we have retained our Buy rating on R-Infra with a target price of Rs590 based on SOTP valuation.
Posted on: Mon, 26 Aug 2013 07:10:52 +0000
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