Gillette India sells Gurgaon property for Rs 72.8 Cr

Gillette India has sold its immovable property, namely its General Offices at 5 to 9 floors at Global Business Park, Tower A, Mehrauli Gurgaon Road, Gurgaon for a total sum of Rs 72.75 crore. The full and final payment has been received by the company on June 19, 2007. Book Value of the said immovable property is Rs 30.54 crore as on May 31, 2007.


Tata Motors to raise $ 450 Mn in overseas mkt for capex & prodt development

Tata Motors has decided to raise USD 450 million additional funds in overseas markets for capital expenditure and product development.

The Committee of Directors of Tata Motors, at its meeting held on June 20, 2007, has in principle approved, subject to such other approvals as may be required, raising of additional long term resources of USD 450 million, excluding Green Shoe option by issue of appropriate securities in the international markets, on terms to be decided by the Board/Committee of the Board in due course.

The said funds are being raised to meet the capital and product development expenditure related to Company's growth projects in its Commercial Vehicle Business Unit and Passenger Car Business Unit and for such other corporate purposes as may be permitted under applicable laws.


Educomp Solutions hits 52-week high; RBI allows FIIs to buy 100% in the company

Educomp Solution has touched a 52 week high of Rs 2,324.50 and an intra day low of Rs 2,150. Currently, the share is quoting at Rs 2,310.00, up Rs 179.60, or 8.43%. It is trading with volumes of 569,053 shares, compared to its 5-day average of 208,738 shares, an increase of 172.62%. Yesterday the share closed up 13.01% or Rs 245.30 at Rs 2,130.40.

RBI has allowed FIIs to buy up to 100% in Educomp Solutions.


Canara Bank gathers momentum; Volumes multiply

Canara Bank has touched an intra day high of Rs 276.45 and an intra day low of Rs 250.50. Currently, the share is quoting at Rs 276.45, up Rs 26.15, or 10.45%. It is trading with volumes of 286,349 shares, compared to its 5-day average of 45,528 shares, an increase of 528.95%.

Yesterday the share closed up 4.86% or Rs 11.60 at Rs 250.30

“With inflationary pressures under control, investors feel RBI will no longer resort to rate hikes so soon,” analysts say. However, those sceptical of the rally in bank shares point out that current quarter earnings of banks could come under pressure as a result of borrowing high cost funds in the past few months.

While there are indications of credit growth moderating, brokerage house Citigroup still rates the banking sector as one of its favourites, stating credit moderation has already been factored in.

Canara Bank had recently stopped mortgage lending at fixed rates and also raised interest charged on floating rate home loans by 175-200 basis points as it grapples with rising defaults. The bank has also decided to charge second-home buyers 25 basis points more, even if the borrower has not taken any loan for the first house.

Home loans above Rs 20 lakh will carry a 25 basis points higher interest than loans up to Rs 20 lakh. The bank is offering loans up to Rs 20 lakh at 10.75-11.25%.

According to a Canara Bank official, there has been a steep hike in rates as the bank had kept its home loan rates unchanged since mid-2006. All the revised rates are effective from June 1, 2007.


Expect good jump in net profits from 2nd Quarter, may look at consolidation between Aarti Drugs & Aarti Industries: Aarti Ind

Rajendra Gogri, Vice Chairman and Managing Director of Aarti Industries says last year we had problem regarding import of our down stream products as well as expansion modifications which affected our top line as well as bottom line. This year it will come on stream. Chinese Govt is reducing export duty on chemical from 8% to 5% - 0%. That should benefit us pretty well.

Aarti Industries is in advance stage of discussion for JV with Japanese chemical major, Sojitz Chem. It is a 50-50 JV for manufacturing specialty chemicals.

Regarding that, Gogri said along with the contract, their contact and their direct touch with the markets would come. They will also bring in technical expertise. There is no domestic company buying stake in our company. We have our sister concern Aarti Drugs. In future we may look at consolidation possibility between Aarti Drugs & Aarti Industries, but nothing in near future. We are expecting a good jump in net profits from Q2 this year, Rajendra added.


Batliboi to acquire French co AESA Air Engineering for s 9 Cr

Batliboi Ltd has informed that the xompany has acquired AESA Air Engineering, S.A., a France based Textile Air Engineering Company for a consideration of approximately Rs 9 crores in an all cash deal.


Vakrangee Software sizzles, hits upper circuit; Goldman Sachs lapping up shares

Vakrangee has touched an intra day high of Rs 147.25 and an intra day low of Rs 134.35. Currently, the share is quoting at Rs 147.25, up Rs 13.35, or 9.97%. There were pending buy orders of 49,192 shares, with no sellers available. It is trading with volumes of 363,882 shares, compared to its 5-day average of 133,157 shares, an increase of 173.27%.

Vakrangee Software is one of the software companies which is insulated from the Dollar - Rupee fiasco since most of its projects are eGovernance initiatives by various Government agencies in India.

Goldman Sachs Investments Mauritius has been lapping up the stock silently in good quantity for the past few days. Goldman Sachs had bought 2 lakh shares @ Rs 131.5/sh on June 18 and 99 thousand shares @ Rs 130.9/sh on June 15.


Cadila to set up JV with US-based TGL Enterprises

Cadila Healthcare has entered into an agreement with TGL Enterprises LLC of United States to set up a joint venture Company, Zydus Noveltech Inc to develop novel drug delivery based products.


Blue Dart Express hits 52-week high on buzz that DHL to buy remaining 19% stake at substantially higher rate

Blue Dart Express has hit a 52 week high of Rs 819 and an intra day low of Rs 663. Currently, the share is quoting at Rs 792, up Rs 93, or 13.30%. It is trading with volumes of 353,230 shares, compared to its 5-day average of 102,179 shares, an increase of 245.70%. Yesterday the share closed up 7.70% or Rs 50.00 at Rs 699.

There were news reports that DHL will buy remaining 19% stake in Blue Dart at Rs 950/share. In response to this, Blue Dart Express had replied to the Exchanges that, "The Company is unaware of any such move." But the stock continues to surge hoping that the price will be at a substantial premium.

The Economic Times had reported that DHL has agreed to an offer price of Rs 950 per share to acquire the remaining stake in the company. The freight and logistics major had acquired a majority stake in Blue Dart in 2004 and has since then been trying hard to acquire the residual stake and delist the company.

DHL currently holds a little over 81% in Blue Dart through DHL Express Singapore, while institutional investors collectively hold 10.34%. Individual investors have a stake of less than 5%. The institutional investors include fund houses like SBI Mutual Fund and UTI Mutual Fund.

According to sources, talks had initially fallen through in November last year due to differences over the buyback price. DHL finally gave the go-ahead to a price arrived at by the reverse book building process in November last year. Interestingly, DHL had earlier refused to accept this price of Rs 950 per share. The price is at a premium of nearly 44% over Monday’s closing price of Rs 649 on BSE. In the past one month, the stock has gained nearly 45% or Rs 196.30.

“There were some issues related to the offer price, which have been sorted out now,” says a source close to the development. “Earlier, DHL was insisting on a price of less than Rs 700 per share that was unacceptable to the shareholders. After much deliberations, the promoters decided to accept the discovered price of Rs 950. The process is likely to near completion over the next couple of months,” he added.

The delisting process is finally on track, nearly 10 months after DHL first sent an official notice to the board of Blue Dart, signalling its intention of getting the company delisted. Meanwhile, Blue Dart officials, when contacted, refused to comment. “It is not the policy of the company to comment on any rumours,” said Tushar Gunderia, company secretary, Blue Dart Express.

The board of the company has already okayed a proposal for delisting. In an extra ordinary general meeting (EGM), held on September 20, 2006, the board had approved the proposal for delisting from both BSE and NSE.


ESS DEE Aluminium continues upmove, hits 52-week high with high volumes

ESS DEE has touched a 52 week high of Rs 493.65 and an intra day low of Rs 441. At the moment the share is quoting at Rs 487, up Rs 38.20, or 8.51%. It is trading with volumes of 504,639 shares, compared to its 5-day average of 138,130 shares. Yesterday the share closed up 4.08% or Rs 17.60 at Rs 448.80.


KPIT Cummins in pact to offer engineering services to Germany's Dialog

KPIT Cummins has formed strategic partnership with Dialog Semiconductor. The company would setup Offshore Development Center for engineering support in audio, power management devices and display driver circuits.


Max India raises Rs 1,000 Cr Via QIP Issue

Max India, one of India 's leading healthcare, life insurance and clinical research companieshas completed the $ 243 million Qualified Institutional Placement (QIP) issue of. It was the second largest QIP issue in the past twelve months, it was oversubscribed 2.3 times, and attracted the highest quality domestic and international investors.

The QIP issue received a very positive response from high-quality global institutional investors and was comfortably oversubscribed.

The Max India QIP issue was priced at Rs 240 per share, a 0.5% premium to the average trading price in May and a 4.6% discount to last fortnight's average prices. Around 80% of the book went to long-only funds and the balance to hedge funds.