Mahindra shares worth Rs 1,424 crore picked up Canada’s CDPQ

CDPQ bought another 27.84 lakh shares of M&M at the same price from M&M Employees Welfare funds, according to the BSE.

Shares of M&M ended Monday’s trading session up 1.05%, at Rs 653.90 a piece.

Canada’s CDPQ, an institutional investor that manages funds for several public and para-public organisations, has invested `1,424.56 crore in Mahindra & Mahindra (M&M) by picking up stakes in the auto company from M&M Benefit Trust as well as M&M Employees Funds, marking the former’s first investment in the Mahindra Group.
Mahindra & Mahindra Benefit Trust on Monday sold 1.92 crore shares of M&M, amounting to Rs 1,244 crore to CDPQ, according to a stock exchange notification released on Monday by the company.

“The shares held by the trust were the outcome of various mergers and schemes of amalgamation. The trust held 10.36 crore shares of M&M. According to the trust deed, the proceeds of the sale would be transferred to M&M, which would be used by the company for its various operational requirements,” the company said.

After Monday’s transaction, the M&M Benefit Trust will hold 8.44 crore shares, representing 6.8% of the equity capital of the company. “The sale has been executed at a gross price of `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,” M&M said in a stock exchange filing.

CDPQ bought another 27.84 lakh shares of M&M at the same price from M&M Employees Welfare funds, according to the BSE. Shares of M&M ended Monday’s trading session up 1.05%, at `653.90 a piece.

Mahindra Group chief financial officer VS Parthasarathy said since the benefit trust holds M&M shares for the benefit of its shareholders, it had decided to monetise part of the holding by divesting to a long-term, high-quality investor. “This is the first investment by CDPQ in the Mahindra Group reposing their faith in the future prospects of the company and Indian economy in general.”

CDPQ is an institutional investor that manages funds for several public and para-public organisations, mainly pension and insurance plans, in Quebec, Canada. Created in 1965, CDPQ manages more than C$309.5 billion, with investments in 60 countries.

Bharti Airtel’s Africa arm to proceed with initial public offering; looks to raise $750 million

The telecom company looks to raise $750 million which it will deploy in reducing the debts.

India’s third largest telecom operator Bharti Airtel said that its Africa subsidiary intends to go ahead with an initial public offering for listing on the London Stock Exchange, the company announced in a BSE filing. With this, the telecom company looks to raise $750 million which it will deploy in reducing the debts, it further said. The company is also eyeing to list Airtel Africa on the Nigerian Stock Exchange (NSE). The mobile service provider had earlier submitted a registration document to the UK Financial Conduct Authority for approval. Airtel Africa had revealed its plan for going public early in 2018.

Currently operational in 15 African countries, Bharti Airtel has over 9.9 crore users spread across three African regions primarily. Out of Nigeria; East Africa, and the rest of Africa, Nigeria brings most of the profits for the company and also accounts to half of the company’s EBITDA and 40% of its total revenue. Speaking on the recent quarterly results, Airtel Africa MD and CEO had said that Africa growth story remains strong as the company has reported a 12% revenue growth for the full year. The company also reported a spike in the traffic growth of 73%. Airtel had ventured into Africa business about nine years ago.

Meanwhile, Bharti Airtel Africa has posted its quarterly results and said that it is making more money per user now. With an increase in average revenue, the telecom is now getting Rs 123 per user at an average. However, the same is still not at par with the sustainable level in the telecom business, MD and CEO, India & South Asia, Gopal Vittal had earlier said. Bharti Airtel’ rival Reliance Jio, which is owned by Mukesh Ambani, garners an average of a little over Rs 126 per user.

According to Bharti Airtel’s recent quarterly release, Sunil Bharti’s telecom company has over 40 crore users across 16 countries. Airtel’s various services include telecom operations in India, South Asia and Africa, digital TV services and Airtel business. The company has 38 crore subscriptions for its telecom services alone.

RBI seen cutting rates by at least 25 bps

RBI seen cutting rates by at least 25 bps, may turn ‘accommodative’ after dismal GDP

Beginning a three day review on Tuesday, the Reserve Bank of India’s six-member monetary policy committee (MPC) can draw comfort from subdued inflation. Running at 2.92 % annually in April, it has stayed below the medium term target of 4% for the past nine months.

A worrying slowdown in India’s economy makes a cut in the central bank’s benchmark interest rate highly likely this week, but analysts say policymakers should also find ways to boost banks’ liquidity to ensure they drop their lending rates too.

Beginning a three day review on Tuesday, the Reserve Bank of India’s six-member monetary policy committee (MPC) can draw comfort from subdued inflation. Running at 2.92 % annually in April, it has stayed below the medium term target of 4% for the past nine months.

Two-thirds of 66 economists polled by Reuters expect the MPC to wrap up on Thursday by cutting the repo rate by 25 basis points, but that survey was taken even before India released far worse than expected economic growth numbers, so expectations for a cut have probably hardened.

If they are right, and the RBI does lower the repo rate to 5.75% it will be the third meeting in a row since February that India has cut interest rates. The last time it moved this quickly to lower rates was in 2013 to revive the moribund economy from growth rates that had slipped to a decade low.

The trouble is banks are laden with bad debt and are scared of losing customers if they cut deposit rates, constraining their ability to cut lending rates despite all the prods from the RBI.

State Bank of India, the country’s largest lender by assets, has cut its key lending rate by only 10 basis points in response to the 50 bps cuts by the RBI.

A series of defaults at lender Infrastructure Leasing and Financial Service Ltd last year has raised concerns about the country’s shadow banking industry with other lenders also facing trouble accessing capital and rating downgrades.

The RBI had retained its “neutral” stance after the rate cut in April but traders said a change in this stance to “accommodative” will be more comforting for markets than just a rate cut, especially after the recent GDP numbers.

“Liquidity woes in banking system are far from over,” said Lakshmi Iyer, Chief Investment Officer (Debt) at Kotak Mahindra Asset Management Company.

“Given the global as also domestic scenario, the MPC may well choose to gratify the markets with a benchmark rate cut. What is more important for markets is the MPC guidance than the actual rate action.”

The economy really does need help.

Data out on Friday showed annual economic growth running at 5.8% in the January-March quarter, sharply down from 6.6% in the previous quarter, well below forecasts and the slowest in more than four years.

“The market is expecting RBI to cut the rates by at least 25 basis points, and we will not be surprised if they decide to cut the rate by even 50 bps, to infuse liquidity and push growth,” said Romesh Tiwari, head of research at CapitalAim.

Re-elected last month for a second term regardless of the slowdown, Prime Minister Narendra Modi needs to stop the rot, and his economic strategists are working on big-bang reforms.

New Finance Minister Nirmala Sitharaman is due to present a budget on July 5 that many analysts expect to be expansionary, though the she cannot afford to let the deficit slip too much.

Until then the RBI will have to live with the uncertainty over the new minister’s fiscal plans, while knowing that when the government does boost spending it will go some way to boosting banks’ liquidity.

Also, the effect of the drain on banks’ liquidity from political parties’ demand for cash during the election campaign should begin to fade.

Oil prices and the monsoon rains are less predictable. The central bank had lowered its Jan-March 2020 inflation forecast to 3.8 percent but warned it could be higher if food and fuel prices rise abruptly or if the fiscal deficit overshoots targets.

Sensex ends above 40,000-mark; all 19 indices rise, auto gains the most

Analysts said India is benefiting from the weakness in global markets that is resulting into fall in oil prices, US bond yields and dollar

The markets on Monday rallied sharply, with the benchmark Sensex and the Nifty closing above 40,000 and 12,000 for the first time after weak economic data, coupled with slump in oil prices, increased expectations of a rate cut by the Reserve Bank of India (RBI).

The Sensex ended at 40,267.62, up 553 points, or 1.4 per cent, while the Nifty added 166 points, or 1.39 per cent, to close at 12,089.

The gains came despite a slump in global equities amid fears of economic slowdown due to the US-China trade conflict. Driven by the robust show by indices, investor wealth rose by Rs 1.76 trillion.

Analysts said India was benefiting from the weakness in global markets which is resulting in a fall in oil prices, US bond yields and the dollar. The 10-year US bond yield has declined from 2.54 per cent to 2.1 per cent in the past one month.

Brent crude prices have gone down by 15 per cent to below $64 a barrel in the past fortnight. Prices, however, were volatile on Monday. The fall in global oil prices has helped ease macroeconomic pressure and the inflation outlook, providing more comfort to the RBI.

The 10-year government bond yield ended below 7 per cent for the first time since November 2017. The rupee appreciated 43 paise to end at 69.26 against the dollar.

Foreign portfolio investors (FPIs) have stepped up their India investment amid softening of US bond yield. On Monday, FPIs invested Rs 3,069 crore in the domestic market.

The RBI will announce its bi-monthly monetary policy on Thursday. In the last two policy reviews, it had cut the repo rate by 25 basis points each. According to experts, the RBI will go for another round of rate cut, the third in a row, on Thursday to prop up economic growth, which dropped to a five-year low in the final quarter of 2018-19, and benign inflation. The gross domestic product data, released Friday, showed growth in the fourth quarter of 2018-19 slowing to 5.8 per cent — the slowest in several quarters.

“Two things one needs to look out for is the RBI policy and the FM’s plan to revive growth. The markets are going to latch on to every word that the finance minister is going to speak about how she is going to revive growth,” said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies.

Market players said the market is hoping that since we have a stable government with a more significant mandate, there will be continuity in reforms and the government will take quick action that will reverse slowdown. However, they expressed concerns about the valuations.

“It’s not a cheap market, and the market is trading at the higher end of the valuation range. From now on, the onus will be on earnings. If it comes quickly, the market will be fine. If earnings revival does not happen, markets will be disappointed,” said Jyotivardhan Jaipuria, founder, Valentis Advisors.

The broader market underperformed the benchmarks with the NSE Midcap 100 Index rising by 0.96 per cent and the NSE Smallcap 100 gaining 0.28 per cent.

All of BSE’s 19 sectoral indices gained, with the auto index gaining the most.

L&T promoters to offload 4.03 million LTTS shares on June 4 and 6

LTTS in a BSE filing said that L&T will sell up to 40,34,399 equity shares of face value of Rs 2 each

Larsen & Toubro Technology Services (LTTS) Monday said its promoter L&T plans to sell 4.03 million shares on June 4 and 6.

LTTS in a BSE filing said that L&T will sell up to 40,34,399 equity shares of face value of Rs 2 each that represent 3.88 per cent of the total paid up equity share capital.

The floor price of the offer shall be Rs 1,650 per equity share of the company. The shares will be sold on June 4 (for non-retail investors) and June 6 (for retail and non-retail investors who choose to carry forward their unallotted bids), it said.

At the end of March 2019, L&T held 78.88 per cent shares in LTTS. Shares of LTTS closed at Rs 1723.75 apiece Monday, down 2.18 per cent from the previous close on the BSE.

Daily Bulletin (4th June 2019)

There are no current notifications of our companies on this date.

1. Scrip code : 532921
Name : Adani Ports and Special Economic Zone Ltd
Subject : Corporate Action-Updates on Buy back
Outcome of Board Meeting held on June 4, 2019

2. Scrip code : 515055
Name : Anant Raj Limited
The NCLT Convened meetings of the Equity Shareholders of the Company is scheduled to be held on Saturday, July 06, 2019 at 11:00 the Registered Office of the Company to consider the Composite Scheme of Arrangement for amalgamation and demerger involving the amalgamation of Anant Raj Agencies Private Limited with and into Anant Raj Limited (ARL)and immediately thereupon, the demerger of the ‘Projects Division’of the ARL into Anant Raj Global Limited under the provisions of Sections 230 – 232 read with Sections 52 and 66 of the Companies Act, 2013 as per the order of Hon’ble NCLT, Chandigarh Bench dated May 17, 2019. The Company has provided remote e-voting and postal ballot facility. Notice of the NCLT convened meeting of the Equity Shareholders alongwith e-voting and postal ballot form is attached.

3. Scrip code : 531223
Name : Anjani Synthetics Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
With Reference to above mentioned subject, please note that ANITA VASUDEV AGARWAL has purchased 10000 equity shares on 03.06.2019 of Anjani Synthetics Limited, a Company registered under the Companies act, 1956, having its registered office at 221 (Maliya) New Cloth Market, Ahmedabad-380002. Please find enclosed herewith Annexure the Disclosure as per Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 We request you to take the above information on your records. Kindly acknowledge the receipt.

4. Scrip code : 533758
Name : APL Apollo Tubes Limited
Subject : Intimation Regarding Completion Of Acquisition Of Production Unit Of Taurus Value Steel & Pipes Pvt. Ltd.
APL Apollo Tubes Limited has informed the Exchange regarding ”Completion of acquisition of production unit of Taurus Value Steel & Pipes Pvt. Ltd. ”.

5. 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.

6. Scrip code : 500493
Name : Bharat Forge Ltd
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Acquisition update regarding TORK Motors Private Limited, Pune, India

7. Scrip code : 500547
Name : Bharat Petroleum Corpn. Ltd.
Subject : Agreement For Formation Of JV Company For Kandla Gorakhpur LPG Pipeline

8. Scrip code : 542333
Name : CESC Ventures Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
We would like to inform you that the Company has executed an agreement dated 03 June, 2019 (“Investment Agreement”) and has acquired 64.63% (Sixty-Four point Six Three Percent) shareholding in Herbolab India Private Limited (‘Herbolab’).

9. Scrip code : 502820
Name : DCM Ltd.
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Allotment of 1,86,77,749 equity shares of Rs.10/- each fully paid-up by DCM Nouvelle Limited to the shareholders of Demerged Company, whose names appears in the Register of Members and in the statement of beneficial position furnished by the depositories as at close of business hours on Friday, May 31, 2019 in terms of Scheme of Arrangement between DCM Limited (‘Demerged Company’) and DCM Nouvelle Limited (‘Resulting Company’) and their respective shareholders and creditors (‘Scheme’).

10. Scrip code : 500620
Name : Great Eastern Shipping Co. Ltd.
Subject : Buy-Back Offer
Kotak Mahindra Capital Company Ltd (“Manager to the Buyback Offer”) has submitted to BSE a copy of Public announcement for the attention of Shareholders of the Equity Shares of Great Eastern Shipping Company Limited(“Company”) for the Buyback of Equity Shares from the Open Market through Stock Exchanges under the Securities and Exchange Board Of India (Buy-Back of Securities) Regulations, 2018.

11. Scrip code : 500104
Name : Hindustan Petroleum Corporation Ltd
Subject : Announcement under Regulation 30 (LODR)-Joint Venture
Signing of Joint Venture Agreement of Kandla Gorakhpur Pipeline(KGPl) – Disclosure under Regulation 30 of SEBI (lODR) Regulations, 2015

12. Scrip code : 530965
Name : Indian Oil Corporation Ltd.
Subject : Announcement under Regulation 30 (LODR)-Joint Venture
Pursuant to Regulation 30 read with Part A of Schedule III of SEBI (LODR) Regulations 2015, it is hereby notified that Indian Oil Corporation Limited (IndianOil), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have signed an Agreement on 03.06.2019 for formation of a Joint Venture Company for implementation and subsequent operation of 2757 Km long LPG Pipeline from Kandla, Gujarat to Gorakhpur, UP. IndianOil, BPCL and HPCL would have 50%, 25% and 25% equity holding in the JV Company. The proposed pipeline will source product from Kandla and other LPG import terminals on West Coast and two refineries at Koyali, Gujarat and Bina, MP and would directly link 22 LPG bottling plants in Gujarat (3), MP (6) and UP (13) owned by the three promoter companies. In addition, the pipeline would feed LPG through road-bridging to additional 21 LPG bottling plants in Rajasthan, Gujarat, MP, Maharashtra and UP.

13. Scrip code : 542323
Name : K.P.I. Global Infrastructure Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
Intimation of Incorporation of Project Specific Special Purpose Vehicle (SPV)

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