Mahindra Satyam, Tech Mahindra in focus as AP High Court clears merger

IT stocks Mahindra Satyam and Tech Mahindra may be in focus after the Andhra Pradesh (AP) High Court cleared the merger of Mahindra Satyam with Tech Mahindra. The two companies made the announcement after trading hours on Tuesday, 11 June 2013. Earlier, the High Court of Bombay had vide its order dated 28 September 2012 approved the merger of two IT companies.

IT stocks may be in focus as the rupee on Tuesday, 11 June 2013 hit a record low against the dollar. After falling to a record low of 58.98 per dollar, the rupee closed at 58.39 on Tuesday, 11 June 2013, down 25 paise from its previous close. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Oil India (OIL) on Tuesday, 11 June 2013, said it has not contributed towards the content of the ONGC Press Release titled "OVL and OIL sign definitive agreement to acquire interest in the Rovuma Area 1 Offshore Block in Mozambique". In this regard, ONGC has already withdrawn the Press Release and factual position has been clarified by ONGC, OIL said. OIL has nothing further to add on this matter, it said. State-run oil exploration major ONGC withdrew a statement issued on Monday, 10 June 2013, saying its overseas oil exploration unit ONGC Videsh (OVL) and OIL had signed an agreement to buy a 10% stake in a Mozambique gas field viz. Rovuma Area 1 Offshore Block from Videocon Group for $2.48 billion.

In its clarification to the stock exchanges, Videocon Industries on Tuesday, 11 June 2013, said that the company has no new information nor there any event, which requires disclosure or intimation to the stock exchanges.

Pidilite Industries said that at the adjourned board meeting of the company held on 10 June 2013, noted that construction work on the Synthetic Elastomer Project remained suspended as the company was evaluating various alternatives regarding the future of the project. The company said that with due consideration to techno-commercial factors and completion of a strategic review, it has decided to explore induction of a strategic partner for the project.

The panel of ministers on disinvestment is reportedly likely to meet today, 12 June 2013 to decide on the base price for MMTC stake sale. The issue is likely to hit the market on tomorrow, 13 June 2013, reports added. The government owned 99.33% stake in MMTC as at end March 2013 and the stake sale would help the company to meet minimum public shareholding norms given by the Securities and Exchange Board of India (Sebi).

Fortis Healthcare on Tuesday, 11 June 2013 announced that it has entered into an agreement with Viva Holdings Vietnam (Pte.), a wholly owned subsidiary of Chandler Holdings and a Chandler Corporation company, to sell its entire stake in Fortis Hoan My Medical Corporation ("Hoan My"), Vietnam, for a total consideration of $80 million. The offer price provides a premium to the purchase price paid by Fortis Healthcare for the acquisition of Hoan My.

Commenting on the development, Mr. Vishal Bali, Group CEO, Fortis Healthcare, said, "In keeping with our current priorties in allocation of resources and further strengthening our balance sheet we have decided to accept this unsolicited offer from Viva Holdings."

The transaction is EPS accretive to Fortis Healthcare and post this divestment the net debt to equity ratio of the company is expected to go down to less than 0.6x, the company said in a statement.

The promoter of Adani Ports and Special Economic Zone, Adani Enterprises, has sold 2.5% of its holding to qualified investors for about Rs 1000 crore to meet the Securities and Exchange Board of India's guidelines on minimum public shareholding for listed companies. Shares were sold through the institutional placement programme (IPP), the company said. The IPP was subscribed 2.26 times of the issue size and had received applications worth Rs 2260 crore. The company issued 6.66 crore shares at Rs 150 per share.

ING Vysya Bank turns ex-dividend today, 12 June 2013, for dividend of Rs 5.50 per share for the year ended 31 March 2013.

Hanung Toys & Textiles has scheduled a board meeting today, 12 June 2013, to consider proposal to sub-division of equity shares.

The board of Agro Tech Foods has decided to withdraw the proposed buyback offer as current share price of the company is higher then the company's buyback offer price of Rs 520 per share. The buyback offer may not be successful if pursued, the company said in a statement. Shares of Agro Tech Foods fell 2.78% at Rs 534.65 on Tuesday, 11 June 2013.

Tree House Education & Accessories informed that Credit Analysis and Research (CARE Ratings) has communicated "CARE A-"(A minus) for the company's long term bank loan facilities. Facilities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such facilities carry low credit risk.

Ferro Alloys Corporation said it will seek shareholders approval through postal ballot to execute a corporate guarantee for Rs 69.36 crore in favour of Rural Electrification Corporation (REC) for the loan of Rs 69.36 crore sanctioned to Facor Power, a subsidiary of the company.

Advanta India has fixed 8 July 2013 as the record date for a 5-for-1 stock split.

IL&FS Engineering said it has received a Rs 266.50 crore contract for construction of elevated viaducts for the Rapid Metro Rail Project in Haryana.

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