Shares of Ultra Tech Cement (UTCL) and Jaiprakash Associates (JAL) will be watched. The board of directors of JAL approved an amendment to the definitive agreement dated 31 March 2016 and also the draft scheme of arrangement with UTCL for sale of cement business of JAL and its wholly-owned subsidiary, Jaypee Cement Corporation (JCCL) comprising identified operating cement plants with an aggregate capacity of 17.20 MTPA spread over the states of Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh besides a grinding unit of 4 MTPA capacity which is currently under implementation in Uttar Pradesh. The total enterprise value now agreed is Rs 16189 crore. An additional amount of Rs 470 crore shall be paid by UTCL for completion of the grinding unit under implementation.
The transaction is subject to various regulatory approvals including the approval of stock exchanges, Competition Commission of India, financial institutions & banks, shareholders & creditors and sanction of the scheme of arrangement by High Courts at Mumbai and Allahabad. The consummation of transaction is expected to take 9 to 12 months.
On this occasion, Manoj Gaur, executive chairman, Jaypee Group said that the Jaypee Group is determined to reduce its overall debt through its proactive divestment initiatives to help the group tide these current turbulent times caused by economic slowdown in the country. He added that post this deal, Jaypee Group shall retain an aggregate cement manufacturing capacity of 10.60 MTPA with plants spread in the states of Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and Karnataka. The group would continue to leverage expertise in the fields of engineering & construction, real estate and project execution in a committed manner.
Punjab & Sind Bank announced lending rates based on marginal cost of funds to be effective from 4 July 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.2%, for one month will be 9.3% and for three months will be 9.45%. The MCLR on 6-month loans will be 9.55% and for one-year loans the rate would be 9.6%, the bank said. The announcement was made after market hours yesterday, 4 July 2016.
IDBI Bank announced lending rates based on marginal cost of funds to be effective from 1 July 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.60%, for one month will be 9% and for three months will be 9.15%. The MCLR on 6-month loans will be 9.25% and for one-year loans the rate would be 9.30%, the bank said. MCLR for two-year loans would be at 9.55% and loans with three-year maturity would carry an MCLR of 9.70%, the bank said. The announcement was made after market hours yesterday, 4 July 2016.
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IFCI said it sold 2.25 lakh shares in National Stock Exchange of India (NSE) at Rs 3,950 a share. IFCI has, however, put on hold selling its remaining 3.05% stake in NSE. The announcement was made after market hours yesterday, 4 July 2016.
Grasim Industries said that the operations have resumed at its staple fibre plant at Nagda in Madhya Pradesh in a phased manner with immediate effect. The company had suspended production at the plant since 5 June 2016 due to water shortage. However, with the onset of monsoon, the availability of water has improved. The announcement was made after market hours yesterday, 4 July 2016.
Diesel car makers like Mahindra & Mahindra and Tata Motors will be watched. The Supreme Court yesterday, 4 July 2016, reportedly reserved its order on the petition seeking modification in the apex court order banning registration of diesel vehicles of 2000 cc and above in the NCR. During the hearing, the centre told the apex court it is ready to conduct a multipronged study on diesel vehicles' effect on environment and possibility of imposition of green cess. Asserting that it favoured removal of ban on registration of diesel vehicles above 2000 cc, the centre sought six weeks time for study and said that any cess should be decided by them. According to reports, the apex court on Friday, 1 July 2016, said that it might consider lifting the ban if a one-time environment compensation cess is introduced. The Supreme Court had on 16 December 2015 put a ban on diesel cars with cylinder displacement over 2000cc in Delhi NCR in a bid to curb pollution in the region. The major automobile manufacturers had moved the court to modify the order.
Fertiliser stocks will be in focus. The retail prices of non-urea fertilisers including Di-ammonium Phosphate (DAP) have been slashed by up to Rs 5,000 a tonne, Union Minister Ananth Kumar said in a press conference held yesterday, 4 July 2016. The state-run fertiliser firms Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers (NFL) have agreed to reduce the price of non-urea fertilisers, Kumar said. The retail price of DAP has been cut by Rs 2,500 a tonne, Muriate of Potash (MoP) by Rs 5,000 a tonne. For a bag of 50 kg, the effective rate for DAP would come down by Rs 125 and MoP by Rs 250. The rate cut, which would be effective immediately, would entail a benefit of Rs 4,500 crore to farmers, he said, adding the move would help promote balanced use of fertiliser.
Shares of Pokarna, Mold-Tek Technologies and Compuage Infocom will list on the National Stock Exchange of India (NSE) on 7 July 2016.
Bhushan Steel announced after market hours yesterday, 4 July 2016, that for the purpose of capacity addition from 4 million tons to 5 million tons per annum of hot strip mill of the company situated at Orissa, the company is taking shut down of said mill for about 20 days.
Techno Electric & Engineering Company said its board will meet on 14 July 2016, to consider issue of bonus shares. The announcement was made after market hours yesterday, 4 July 2016.
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