Aarti Ind in JV talks with Japan Co for speciality chemicals

Aarti Industries has announced that the Company is at an advanced stage of discussions with a multi billion Japanese Chemical Major for a proposed 50% Joint Venture for the purpose of manufacturing various Speciality Chemicals with applications in high growth markets such as Polymers, Additives, High Purity Electronic Chemicals, etc.

The stock is in limelight for the past few days with the price rising Rs.18.05 or 65.76% in last 1 week from Rs.27.45 on 12-June-2007

Educomp Solutions hits 52-week high; Kotak initiates coverage with Outperform and target of Rs 2,350

Educomp Solutions has touched a 52 week high of Rs 2,126 and an intra day low of Rs 1,880.10. Currently, the share is quoting at Rs 2,118.00, up Rs 232.90, or 12.35%. It is trading with volumes of 460,024 shares, compared to its 5-day average of 110,235 shares, an increase of 317.31%.

Kotak Institutional Equities in its latest report expects Educomp to leverage its content and pedagogy skills to become a significant player in the Indian K-12 education space. Demand for quality education is creating significant opportunity and we believe Educomp's new initiative to set up schools is a significant step towards capitalizing on this. "Initiate with Outperform and DCF-based target price of Rs 2,350," , Kotak report says.

"We believe the current valuations do not price in the significant business value from the new initiatives--setting up and managing schools (under Edu Infra and Edu Manage) and the acquisition of AsknLearn. We expect Edu Infra and Edu Manage to generate substantial cash flows as they achieve optimal scale in the next three years. Edu Infra and Edu Manage collectively account for Rs 578 (25%) of our target valuation," the report adds.

Advance Tax Q1: HDFC Bank pays Rs 140 Cr vs Rs 80 Cr; ACC pays Rs 63 Cr vs Rs 53 Cr

The Q1 Advance Tax numbers show that HDFC Bank has paid an advance tax of Rs 140 crore vs Rs 80 crore. ACC has paid Rs 63 crore vs Rs 53 crore. M&M has paid Rs 23 crore vs Rs 20 crore, Tata Steel has paid Rs 220 crore vs Rs 180 crore, L&T has paid Rs 75 crore vs Rs 40 crore. BPCL has paid Rs 97 crore vs Rs 10 crore, HPCL has paid Rs 30 crore vs Nil and Grasim Rs 65 crore vs Rs 45 crore.


Petron Engg: KazStroyServices to make open offer; Have got Rs 92 Cr for 80% stake in Petron Investment

Petron Engineering Construction has informed BSE that Petron Investments Pvt Ltd (PIPL), a holding company of Petron Engg holding 3936327 Equity Shares of Rs 10/- each (52.22%) that:

1. PIPL has received letters from Amritha Sharanya Leasing & Investments Pvt Ltd (ASLI) and SRA Finance & Investments Pvt Ltd (SRA) that their Shareholders have entered into an Agreement with KazStroyServices PLC., UK for sale / transfer of 21,095 Shares in ASLI and 721530 Shares in SRA, subject to fulfillment of certain conditions and their getting approval from Govt. Authorities / RBI.

ASLI and SRA hold 80% Shares in PIPL.

2. PIPL has also been informed by the following individual Shareholders that they have entered into an Agreement with the said KazStroyServices PLC., UK for sale / transfer of their respective Shareholding in PIPL as per the following details also subject to fulfillment of certain conditions and clearance from various Govt. Authorities / RBI authorities.

M K Nair, MD, Petron Engg said his family and Petron Engg Chairman R S Ambekar hold 80% stake, 40% each, in Petron Investments which again holds about 52% in Petron Engg. KazStroyServices has bought that 80% stake in Petron Investments for Rs 92 crore.

KazStroyServices will hold the controlling stake and will make open offer. Petron Investment, which is the family holding company will get Rs 46 crore from KazStroy while SRA will get Rs 46 crore from KazStroyServices. KazStroyServices is a Kazakhstan based oil & Gas Company.



Hindustan Dorr Oliver is likely to bag another order from HPCL worth Rs 120 crores.

The order is likely for recycling of water in Mumbai refinery and is likely to be executed in 18 months. Their current order book size close to Rs 170 crore. Management declined to comment on orders. They expect few more orders from Vedanta & Godavari Fertilisers. Vedanta order will be worth Rs 26 crore for water & air system.

They are expecting order worth Rs 90 crore from Godavari Fert and have bid for orders worth Rs 170 crore in domestic market.

Sources say that they are looking to acquiring water technology company overseas and also to acquire domestic company in engineering space. The targeted company will have turnover of Rs 10 crore and company is debt free with cash balance of Rs 50 crore.



Paramount wants to add spice to GoAir - but both Wadia and SpiceJet say they are not talking to Thyagarajan

Paramount Airways is keen to take off in the consolidation game. It wants to strike a deal with GoAir and is also keen on buying out SpiceJet. Paramount Airways is certainly on the go... It is believed that the company, which has a 26% market share in the south, seems set to buy GoAir for about Rs 150 crore. Sources tell Paramount will not use the GoAir brand or its airbus fleet, but its slots, parking bays and marketing network.

All that stands between the deal going through is GoAir's, MD, Jeh Wadia's stubborn refusal to sell even though his father Nusli Wadia seems reluctant to put any more money in the loss-making venture. GoAir is willing to sell 26% stake. But it is not talking to paramount, at least not yet.

Jeh Wadia said, “ - GoAir is open to stake sale but we are not in talks with any airline. There is no difference of opinion on stake sale in Wadia family. Wadias would not completely exit airline business. GoAir has had no discussion with Paramount on stake sale.”

But sources say, in the next few weeks, Go could be gone to Paramount. Besides, SpiceJet also seems to be on Paramount's radar.

There is buzz in the market that the promoters of SpiceJet, the Kansagra family-controlled Royal Holdings, and Ajay Singh, who together own about 17% in the airline, have approached Paramount for a takeover. And initial due diligence of Spice Jet by Paramount is apparently on. Investment banking sources say Kotak is backing Paramount Airways in its bid for SpiceJet. And aviation sources say Paramount wants to buy 26% from the promoters and then will make an open offer for another 26%.

The total deal is said to be worth about Rs 500 to 600 crore. That's due to come from internal accruals and debt. Spice Jet officials, though; say no such deal is in the offing. Ajay Singh, Director, SpiceJet said,” We have absolutely no reason to sell any equity in the company at this point of time. Paramount has not approached us. There are no talks with Paramount. You know, these people have infused fresh funding in the recent past. It makes absolutely no sense for them to sell out so soon. All the large investors are in this for the long-term, and there is absolutely no intention of... as far as I know, and as far is my dialogue with all the investors is concerned, I don't think there is any proposal by anybody to sell any stake at this time.”

While paramount airways management refused to comment on the matter... Sources tell us they will continue to run spice jet as a low cost carrier... Because they believe that the days of cutthroat pricing is over. With Vijay Mallya's stake buy in Air Deccan... GoAir meanwhile will be merged with paramount as soon as the deal gets done... Which could be anytime now.