IIFL buys controlling stake in KadaiEshwar Housing Finance for Rs 100 crore

An application for the certificate of registration has now been submitted to the central bank. The new venture is expected to hit the market by January

IIFL India Private Equity Fund has acquired about three fourths of the total shareholding in KadaiEshwar (KE) Housing Finance, a non-banking finance company, for about Rs 100 crore, two people aware of the transaction told ET.

An application for the certificate of registration has now been submitted to the central bank, and the new venture controlled by IIFL PE is expected to hit the market by January 2019. The NBFC was launched by C. Ilango, former MD at home finance company Can Fin Homes.

With a focus on backing professional entrepreneurs, IIFL Asset Management had launched its new fund — IIFL India Private Equity Fund — in May with a target of around Rs 2,000 crore. Under the AIF business, the IIFL AMC currently manages capital commitments of Rs 20,000 crore. IIFL Asset Management has an AUM of about $5 billion as on March 31, 2018.

Established in 2008, IIFL AMC operates in areas of mutual funds, alternative investment funds, venture capital funds, fixed income securities, and real estate. Ilango confirmed the development, but refused to disclose details.

An IIFL spokesperson, on the other hand, said: “We have done our due diligence with a couple of professional entrepreneurs and their companies and are awaiting approval from regulatory authorities. At this point in time, we would not be in a position to comment on any investment until they are consummated.” During Ilango’s CEO tenure at Can Fin Homes, the loan book expanded five times to Rs 11,000 crore, while profit surged about four times to Rs 157 crore, said one of the persons cited above.

PE investors are increasingly tying up with industry veterans to set up growth platforms in India.

https://economictimes.indiatimes.com/news/company/deals/iifl-buys-controlling-stake-in-kadaieshwar-housing-finance-for-rs-100-crore/articleshow/66210331.cms

SpiceJet hits new high, IndiGo nears record high

SpiceJet hits new high, IndiGo nears record high on ATF prices cut

SpiceJet hit an all-time high of Rs 157, up 8%, while InterGlobe Aviation, the operator of IndiGo, was up 2% at Rs 1,712, trading close to its all-time high level of Rs 1,716 touched on May 8, 2019.

Shares of aviation companies were in focus after they rallied up to nearly 8 per cent on the BSE during the early morning trade on Monday. Heavy volumes of shares were being traded at the bourses after Indian Oil Corporation slashed Aviation Turbine Fuel (ATF) price, which makes up 40 per cent of an airline’s cost structure, for the first time in the past five months.

Following the price cut, SpiceJet hit an all-time high of Rs 157 pe share, up 8 per cent, while InterGlobe Aviation, the operator of IndiGo, gained 2 per cent to trade at Rs 1,712 apiece. The latter was close to its all-time high level of Rs 1,716 touched on May 28, 2019 in intra-day trade.

SpiceJet counter saw huge trading volumes with 3.69 million shares already changing hands till 10:13 am, as compared to an average 3.66 million shares being traded daily in the past two weeks on the BSE.

The domestic brokerages remained bullish on SpiceJet with 12-month target price in the range of Rs 172 to Rs 211 per share.

“Over half of Jet Airways’ domestic slots along with its entire international slots are yet to be allocated. If Jet shuts down, SpiceJet will be the prime beneficiary given complementary fleet portfolio. This will lead to further upside to our estimates. We expect SpiceJet to turn profitable in FY20 as yields expand while fuel costs moderate,” analysts at Edelweiss Securities said in a result update with target price of Rs 179 per share.

Analysts at Prabhudas Lilladher also remained positive on SpiceJet on the back of massive fleet expansion plan, strong yield environment post Jet’s suspended operations, prime slots at key airports, strong regional operations, codeshare with Emirates and likely return of Boeing 737 Max in July/August.

“All this will lead to ASK/Revenue & EBITDAR CAGR of 47 per cent/51 per cent & 72 per cent respectively,” they said.

The brokerage firm maintains ‘buy’ rating on the stock with target price of Rs 211 per share. Abnormal increase in crude oil prices & irrational yield environment remain a key risk, it added.

https://www.business-standard.com/article/markets/spicejet-hits-new-high-indigo-nears-record-high-on-atf-prices-cut-119060300232_1.html

Metals & Chemicals

Metals, chemicals: Sectors that stand to benefit from US – China trade war

The unanticipated trade tensions that cropped up between two major economies in the world-the US and China- have since spooked the global markets

Global shares lost ground during the early morning trade on Monday reacting sharply to China’s decision to tariff hike on $60 billion worth of US imports, which came into effect on Saturday, June 1.

While China’s Shanghai composite index was trading 17.23 points or 0.59 per cent lower, Japan’s Nikkei slipped 239 points, hovering close to its lowest levels in four months.

Indices on the Wall Street plummeted over a per cent after the tariff decision came into effect. The Dow Jones fell 355 points during the overnight trade on Friday to close at 24,815 while the S&P500 lost 37 points to end at 2,752 levels. The Nasdaq too lost 114 points to end the session at 7,453 levels.

China’s retaliatory move was in response to United States’ decision to hike import tariffs on $200 billion worth of Chinese goods. Last week, while the US President hiked import tariffs on all imports from Mexico, he also ended India’s tariff-free access to the US market under the Generalised System of Preferences (GSP) scheme.

The unanticipated trade tensions that cropped up between two major economies in the world—the US and China— and spilled over other countires thereafter have since spooked the global capital markets.

Between May 5 and May 15, since the day Trump tweeted about his views on China till exit poll outcomes in India, the benchmark S&P BSE Sensex and the broader Nifty50 had lost 4 per cent with the indices seeing their worst ever selling streak of nine consecutive days.

However, between May 5 and May 30, the S&P BSE Sensex gained 3.1 per cent, while the Nifty50 moved up 3 per cent ignoring global cues. The rally was on account expectation of the National Democratic Alliance (NDA) securing a second consecutive term post the general elections that ended on May 19.

BENEFIT INDIA?

While a possible trade war has been averted for the time being, discussions on how India might benefit from this situation have already begun. Analysts suggest that India might not be able to “fill the gap” created by China as the country doesn’t have the required capacity.

“India isn’t a big trade partner to the US to be able to reap benefit from this trade war. Our exports have grown only recently and we don’t have traditional advantage as an exporting country,” says AK Prabhakar, head of research at IDBI Capital.

According to a report by UBS, the US imports of tariff goods from China comprised nearly 47 per cent of China’s goods’ export basket and 39 per cent of India’s goods’ exports basket, as of 2017.

“In this situation, India as a country won’t have much of an impact. Firstly, we are a consumption driven economy, and secondly, after the first trade war concerns surfaced last year, our indices-including Bank Nifty- touched all-time high,” says Gaurang Shah, head of research at Geojit BNP Paribas. Thus, India has already discounted a trade war.

“In the long term, however, if there is a slowdown in China, it will definitely benefit India as an emerging nation in terms of investment and foreign direct investment (FDIs),” he says.

INVESTMENT STRATEGY

The top beneficiaries, according to analysts, would be the overlapping sectors between Indian export basket and items included in hiked tariff. These, they say, include industrials, chemicals, clothing/footwear, plastics, machinery and electrical/electronic products.

According to Shah of Geojit, the chemical sector, especially agro-chemicals and specialty chemicals, would benefit in the long-run.

For Prabhakar, chemicals and soda companies including Vinati, Tata Chemicals and Gujarat Alkelies could be profitable bets. “On the other hand, electronics could be an area of worry due to dumping of such goods in India. Anti-dumping should be in place for phone, laptop,” he suggests.

According to Shah, electronics could only be affected indirectly as there aren’t many Indian players established in the country. That said, analysts believe, sectors such as steel, rubber, aluminium and plastics might need protection may need protection from unreasonable dumping by China.

Analysts are also placing bets on auto-ancillary, metals, information technology (IT) – likely sanctions on Huawei, hospitality and agriculture-related stocks. The indirect spill-overs, some analysts say, could also benefit allied sectors, such as consumption and financials.

“Textiles could have benefitted but Africa, Bangladesh and other Asian countries are at better position than India,” Prabhakar adds.

https://www.business-standard.com/article/markets/metals-chemicals-sectors-that-stand-to-benefit-from-us-china-trade-war-119060300202_1.html

Bajaj Auto sales

Bajaj Auto sales rise 3% in May to 4.19 lakh units

Motorcycle sales increased 7 per cent to 3,65,068 units in the previous month as against 3,42,595 units in May 2018, the company said in a statement.

Bajaj AutoNSE 3.72 % on Monday reported 3 per cent increase in total sales in May at 4,19, 235 units as against 4,07,044 units in the same month previous year.

Motorcycle sales increased 7 per cent to 3,65,068 units in the previous month as against 3,42,595 units in May 2018, the company said in a statement.

Commercial vehicles sales declined by 16 per cent to 54,167 units during the month compared to64, 449 units in the year-ago period, it added.

Exports stood at 1,83,411 units in the previous month as against 1,82,419 units in the same month of 2018, an increase of one per cent, as per the statement.

https://economictimes.indiatimes.com/two-wheelers/bajaj-auto-sales-rise-3-in-may-to-4-19-lakh-units/articleshow/69629819.cms

Daily Bulletin (3rd June 2019)

There are no current notifications of our companies on this date.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190603-45

1. Scrip code : 523537
Name : APM Industries Ltd.
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement.
Kindly refer to our intimation dated May 29, 2019 informing about the approval of the Scheme of Arrangement among APM Industries Limited (Demerged Company) and APM Finvest Limited (Resulting Company) and their respective shareholders and creditors pursuant to the provisions of Sections 230 – 232 of the Companies Act, 2013 for the demerger of ‘Finance and Investment Undertaking’ (‘Demerged Undertaking’) of APM Industries Limited (Demerged Company) and subsequent amalgamation of Demerged Undertaking with its wholly owned subsidiary APM Finvest Limited (Resulting Company), by Hon’ble National Company Law Tribunal, Jaipur Bench vide there order dated May 24, 2019. The Company has received the Certified Copy of Order w.r.t. approval of Scheme of arrangement and simultaneously filed the Certified True Copy of the Order with Registrar of Companies, Ministry of Corporate Affairs on June 03, 2019 which shall be deemed to be the effective date for the purpose of the Scheme of Arrangement.

2. Scrip code : 534816
Name : Bharti Infratel LimitedSubject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement.
Pursuant to Regulation 30(7) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that Hon’ble National Company Law Tribunal (NCLT), Chandigarh Bench, vide its order dated May 31, 2019, has sanctioned the scheme of amalgamation and arrangement between Indus Towers Limited (Transferor Company) and Bharti Infratel Limited (Transferee Company) and their respective shareholders and creditors under Section 230 to 232 of the Companies Act, 2013 (the ‘Scheme’). Copy of the order of Hon’ble NCLT is enclosed. The Scheme shall become effective on the date on which certified copy of the order of Hon’ble NCLT is filed with Registrar of Companies upon fulfilment/ waiver of other conditions prescribed in the Scheme. The effective date will be communicated to the Stock Exchanges for further public dissemination as and when the Scheme becomes effective. Kindly take the above information on record.

3. Scrip code : 536507
Name : Future Lifestyle Fashions Limited
Subject : Further Investment In Koovs Plc.
This is to inform that the Company has further invested by way of subscribing to 4,58,39,063 Ordinary shares at a price of GBP 0.08 per Ordinary share aggregating to GBP 3.67 millions (equivalent to approximately INR 32.43 Crore), of Koovs plc., a company incorporated in England.

4. Scrip code : 531199
Name : Glance Finance Ltd.
Subject : Updates on Buyback Offer Master Capital Services Limited (“Manager to the Buyback Offer”) has submitted to BSE a copy of Letter of Offer dated May 29, 2019 (“LOF”) along with tender form (for demat shareholder). The Buyback offer period will open on Monday, June 10, 2019 and will close on Friday, June 21, 2019.

5. Scrip code : 500620
Name : Great Eastern Shipping Co. Ltd.
Subject : Corporate Action-Buy back
Outcome of Board meeting- Approval for Buy back of equity shares.

6. Scrip code : 890146
Name : Hatsun Agro Products Ltd.
Subject : Update On Acquisition Of Cattle Feed Unit – Intimation Under Regulation 30 Of The SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’)
Further to our earlier intimation to the Stock Exchange on 2nd May 2019 intimating the approval of the Board for the acquisition of a Cattle Feed unit belonging to M/s. Madhur Pashu Aahar (Partnership Firm), located at Chandolewadi, Tal Sangola, Dist. Solapur, Maharashtra having a production capacity of 100 Tonnes per day on an outright asset purchase basis, we would like to inform you that the process of acquisition of the above said Cattle Feed Unit is Complete now.

7. Scrip code : 500520
Name : Mahindra & Mahindra Ltd.
Subject : Sale Of 1,92,00,000 Equity Shares Representing 1.54% Of The Total Paid Up Equity Share Capital Of Mahindra And Mahindra Limited By M&M Benefit Trust – Disclosure Under Regulation 30 Read With Schedule III Of SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015
We would like to inform you that M&M Benefit Trust (‘the Trust’) which forms part of the Promoter Group of the Company, has today sold 1,92,00,000 equity shares (treasury stock) representing 1.54% of the total paid up equity share capital of the Company. The sale has been executed on the stock exchange(s), at a gross price of Rs.648 per share. Following the sale, the shareholding of the Promoters and Promoter Group of the Company has come down from 20.44% to 18.90% of the total paid up equity share capital of the Company.

8. Scrip code : 539978
Name : Quess Corp Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition.
This is an update to our stock exchange intimation dated April 17, 2019 wherein we had stated that the Acquirer, which is a subsidiary of Quess, had signed definitive agreements to acquire up to 93,49,095 equity shares of Allsec, representing 61.35% of the total share capital of Allsec (the ‘Underlying Transaction’). Subsequently, on May 29, 2019, we had intimated the stock exchanges that, as part of the Underlying Transaction, the Acquirer has acquired 39,61,940 equity shares of Allsec, representing 26.00% of the total share capital of Allsec. Now, we wish to inform you that in conclusion of the Underlying Transaction, the Acquirer has, today, acquired 53,87,155 equity shares of Allsec, representing 35.35% of the total share capital of Allsec by way of a block trade on the National Stock Exchange of India Limited. Accordingly, as on date, the Acquirer holds 93,49,095 equity shares of Allsec, representing 61.35% the total share capital of Allsec. We request you to take the above on record.

9. Scrip code : 530075
Name : Selan Exploration Technology Ltd.
Subject : Announcement under Regulation 30 (LODR)-Daily Buy Back of equity shares
Daily Buyback reporting

10. Scrip code : 517214
Name : Spice Mobility Limited
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Update on Comprehensive Scheme of Arrangement We wish to inform you that the Scheme has become effective on 1st June, 2019 on filing of the prescribed Form with the Registrar of Companies. As per the terms of the aforesaid Scheme of Arrangement, DTS Business Undertaking of Spice Digital Limited has been demerged into Spice Mobility Limited. Spice IOT Solutions Private Limited, Mobisoc Technology Private Limited and Spice Labs Private Limited, the subsidiary companies have got amalgamated with Spice Mobility Limited. Consequently, the following two step – down subsidiary companies, which were earlier subsidiaries of Spice Digital Limited, have become direct subsidiaries of Spice Mobility Limited: 1. S Global Services Pte. Limited, Singapore (SGS) 2. Spice Digital Bangladesh Limited

11. Scrip code : 532509
Name : Suprajit Engineering Ltd.
Subject : Announcement – Acquisition Of Halogen Bulb Manufacturing Facility From M/S. Osram India Pvt. Ltd.
Suprajit Engineering Ltd (Suprajit) has entered into an Asset Purchase Agreement to acquire the Halogen Bulb manufacturing facility (near Chennai) from M/s. Osram India Pvt. Ltd. With this acquisition, Suprajit’s Halogen Bulb’s annual capacity will increase from 87 million to about 110 million. Suprajit will emerge as one of top 3 manufacturers of Halogen Bulbs in the world.

12. Scrip code : 500055
Name : TATA STEEL BSL LIMITED
Subject : Announcement under Regulation 30 (LODR)-Acquisition
This is further to our letter dated May 31, 2019. We wish to inform you that Tata Steel BSL Limited has successfully completed the acquisition of Bhushan Energy Limited (”BEL”) in accordance with the Approved Resolution Plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016. Pursuant to the acquisition, the Company holds 99.99% of the total equity share capital of BEL. This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is for your information and records.

13. Scrip code : 532356
Name : Triveni Engineering & Industries Ltd
Subject : Fixed Record Date For Entitlement To Participate In The Buyback
In terms of the Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(1) of the Buyback Regulations, the Board has fixed Wednesday, June 19, 2019, as the record date (‘Record Date’) for determining the entitlement and the names of the Eligible Shareholders / Beneficial Owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback.

14. Scrip code : 507685
Name : Wipro Ltd.
Subject : Record Date For Buyback Of Equity Shares
This has reference to our earlier letter dated April 16, 2019, informing the stock exchanges that the Board of Directors have approved the buyback of equity shares by the Company and also our letter dated June 3, 2019, informing the stock exchanges that the shareholders have approved the buyback of equity shares by the Company. Pursuant to regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regulation 9(i) of SEBI (Buy-Back of Securities) Regulations, 2018 and Clause 204.21 of the NYSE Listed Company Manual, the Company has fixed Friday, June 21, 2019 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback.