Tata Power in focus on signing option deal to sell 5% stake in Indonesian coal mine

Tata Power Company said that the company has signed option agreements to sell 5% stake in PT Kaltim Prima Coal (KPC) for $250 million to Bakrie Group entity, to get additional cash flow as well as to reduce its consolidated debt after facing under-recovery and cash flow challenges due to its Mundra Ultra Mega Power Projects (UMPP) operations. In addition, the entire 30% stake in KPC related power infrastructure companies is also covered for sale in the agreement to the same entity. KPC will continue to be the part of supply chain for Tata Power Group's coal offtake requirements. Tata Power Company, however, would continue to hold 25% stake in KPC if the option is exercised. The announcement was made after market hours on Friday, 4 July 2014.

 

"The option to partially sell KPC and its related power company has the potential to provide the company the flexibility raise additional funds to meet the current challenges," Anil Sardana, Managing Director, Tata Power said in the statement.

PSU OMCs will be in focus after Ministry of Petroleum and Natural gas clarified it is not proposing any increase in prices of subsidised LPG and kerosene prices after certain media reports have appeared, speculating about increase in prices of subsidised LPG and PDS Kerosene. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

Ashok Leyland said that the fund raising committee of the company at its meeting held 4 July 2014, approved the issue and allotment of 18.52 crore equity shares of face value Re 1 each to eligible qualified institutional buyers (QIB) at the issue price of Rs 36 per share, aggregating to Rs 666.72 crore.

IDBI Bank said that the Board of Directors of the bank has approved the proposal for mobilization in one or more tranches of Rs 4000 crore and foreign currency resources upto $7.5 billion equivalent outstanding, comprising of Senior Bonds, Basel III Compliant Tier II/Additional Tier I Bonds, by way of Private Placement/Public Issue/Reverse Enquiry/Issuances under MTN programme during the financial year ending 31 March 2015 (FY 2015). The announcement was made after market hours on Friday, 4 July 2014.

Adani Ports and Special Economic Zone (APSEZ) said that it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port. This will be the 4th container terminal at Mundra and will be a 650 meters terminal along with 27 hectares of back area, capable of handling 1.3 million TEUs annually. Following this announcement, the construction phase will be initiated immediately and completion will be in a record 24 months. The new terminal will be set up as an equal joint venture between APSEZ and CMA CGM Group. The announcement was made after market hours on Friday, 4 July 2014.

JSW Steel turns ex-dividend today, 7 July 2014, for dividend of Rs 11 per share for the year ended 31 March 2104 (FY 2014).

Sunflag Iron & Steel Company said that a meeting of the board of directors of the company will be held on 9 July 2014, to consider issue of equity shares of the company on preferential basis.

Sayaji Hotels said that Barbeque-Nation Hospitality has allotted 22.52 lakh shares and resulting this allotment the stake of the company is reduced from 54.70% to 47.41%.

Patel Integrated Logistics said that India Ratings & Research Ltd (India Ratings), a Fitch group company has affirmed National long term credit rating 'IND BBB-' [outlook stable] for company's fund based borrowings & finance lease and 'IND A3' [outlook stable] rating for its non fund based borrowings from the banks. India Ratings has also assigned credit rating 'IND tA-' (adequate safety) for its Fixed Deposit Programme

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