NSE WEEKLY NEWS UPDATE

✍ Sebi censures BSE for taking late bids in NMDC sell off
Market regulator Sebi on Thursday censured BSE for accepting an order of 4.55 crore shares in the divestment of government-owned NMDC after the closing time due to a technical glitch in December 2012. The market regulator also asked BSE to engage external consultants to look into the matter in further detail and fix responsibilities.
In the NMDC divestment, the government sold about 39.6 crore shares and the issue was subscribed nearly two times with the total demand at about 73.2 crore shares. Of the total book size, while the order for 4.55 crore shares came in at the fag end of the trading hours, the money from the custodian bank, Citibank NA, was transferred to the designated bank account for NMDC offer for sale about two and half hours after the close of trading on that day. Sebi censured BSE for accepting this bid that was confirmed after the close of trading.

✍ ICICI Bank board approves five-for-one stock split
ICICI Bank, country's largest private lender, today approved sub-division of one equity share into five with the aim to increase liquidity of scrip.
"The board of directors of ICICI BankBSE -0.06 % has considered and approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each," the bank said in a statement.
Each American Depositary Share (ADS) of ICICI Bank will continue to represent two underlying equity shares as at present, it said.
The number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of equity shares. Thus, the underlying equity shares would rise to 10 with the split.

✍ Jaiprakash Associates falls as Goldman Sachs downgrades stock
Jaiprakash Associates fell about 4 per cent after Goldman Sachs downgraded Jaiprakash to 'neutral' from 'buy' and removed it from Asia Pacific buy list.
The global investment bank cited uncertainty after one of its promoters sold 1.45 per cent stake.

✍ Disinvestment in Coal India, ONGC, NHPC to fetch record Rs 45,000 crore
The government on Wednesday kicked off the most ambitious disinvestment programme, targeting to mop up a record Rs 45,000 crore by selling shares in blue chips public sector companies — Coal India, ONGC and National Hydroelectric Power Corporation (NHPC).
While the exact dates are yet to be finalized, SAIL's disinvestment, which was cleared earlier, is likely later this month, with a 10% stake sale in Coal India expected around Diwali. The energy behemoth will help the government raise around Rs 23,600 crore based on its current share price. If prices hold, this sale alone is going to match the best ever disinvestment receipts of Rs 23,957 crore in 2012-13, when the government had sold shares of NTPC and NMDC, among others.
ONGC, where the government can garner close to Rs 19,000 crore via a 5% sale, is expected later in the year as the government is awaiting clarity on gas prices before the issue, sources in the government told TOI. Somewhere during the course of the year, it will also sell 11.3% in NHPC which, going by current price, will help generate around Rs 3,000 crore.

✍ Sun Pharma falls 4%, Taro recalls anti-clotting drug
Shares of Sun Pharma slipped 4 percent intraday Friday on drug recall concern. Its subsidiary Taro Pharmaceutical has recalled an anti-clotting drug, Warfarin generic from the US markets due to USFDA concerns on quality. Taro has recalled two lots of a key drug on September 2, citing failed content uniformity specifications, according to drug regulator. The drug contributes nearly 5 percent of Taro's sales, analysts say. The stock has been under pressure from yesterday as the US drug regulator made a surprise audit at the pharma major's Halol facility in Gujarat. It is learnt that majority of ex-Taro products of Sun Pharma for the US market come from Halol facility, the largest plant of the company, which supplies 40 percent of US sales and contributes 25 percent to consolidated profit.

✍ Cigarette stocks fall amid reports of tough tobacco policy
Shares of cigarette companies ITC, Godfrey Phillips India and VST Industries fell by as much as 6 per cent amid media reports that the government may tighten norms to put check on smoking.
Stocks of Godfrey Phillips slumped 6.09 per cent to Rs 2,990, while ITCBSE 1.40 % was down by 1.85 per cent to Rs 351.05 and VST Industries lost 3.58 per cent to Rs 1,625.05 on the BSE.
According to reports, the government is considering a proposal to ban sale of loose cigarettes. The health ministry has also proposed to raise age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognisable offence, it said.

✍ Snowman Logistics surges 68% on listing day
Snowman Logistics has seen huge buying appetite on listing day itself, beginning the trade at Rs 75 (the equilibrium price arrived in pre-opening session) on the Bombay Stock Exchange. That is 60 percent returns for investors over the issue price of Rs 47, which is more than grey market premium of 25-30 percent premium. It means the person, who has applied for 300 shares (the minimum bid quantity) by paying Rs 14100, received a whopping profit of Rs 8400 on day one (Rs 28 per share premium over issue price).
The stock was quoting at Rs 78.75 (the highest level in today's trade), up Rs 31.75, or 67.55 percent on the BSE. The current market capitalisation of the company stands at Rs 1,310 crore. Its public issue had received excellent response from investors, oversubscribing 59.75 times supported by retail subscription with 41.26 times, non-institutional investors with 221.79 times and qualified institutional buyers with 16.98 times.

✍ L&T bags orders worth Rs 1,920 crore in hydrocarbon business
Larsen & Toubro (L&T) has bagged contracts worth Rs 1,920 crore in its hydrocarbon business in the offshore and onshore segments.
The company secured an offshore contract worth Rs 1,340 crore from Oil and Natural Gas Corporation (ONGC). The scope of the contract includes engineering, procurement, construction and installation of five wellhead platforms at the Mumbai High North field of ONGC.

✍ Rajiv Rattan takes over Indiabulls Power with Rs 360 crore buyout
Rajiv Rattan, one of the three promoters of the India Bulls group, on Sunday announced having taken control of the group's two power companies after buying out Saurabh Mittal's stake for Rs 360 crore in Indiabulls Infrastructure and Power.
After buying out Mittal's five per cent holding in Indiabulls Infrastructure and Power, Rattan infused fresh equity into Indiabulls Power through his private company. Rattan will hold five percent directly in the company.

✍ BSNL, MTNL merger likely by July next year
The much-awaited merger of telecom PSUs, BSNL and MTNL, is likely to take place by July next year as the two companies look at synergising operations by offering services as a single entity.
At present, BSNL offers services in the whole country, except Delhi and Mumbai. MTNL provides telecom services in these two zones.


✍ FIIs pump in Rs 9,000 crore in first week of September
Continuing their bet on the government's reforms agenda, overseas investors have poured in nearly Rs 9,000 crore in the Indian capital market in the first week of the month.
Net investments by foreign investors in the equity market were Rs 3,972 crore ($656 million) from September 1-5, while they infused a net amount of Rs 5,013 crore ($828 million) in the debt market during the period, taking the total to Rs 8,986 crore ($1.5 billion), as per the latest data.

✍ ICICI Bank raises $500 million selling bonds to overseas investors
ICICI Bank Ltd, India’s largest private sector bank by assets, raised $500 million late on Thursday by selling bonds to investors in Europe and Asia, two bankers familiar with the matter said. The bonds, maturing in five-and-a-half years, were subscribed more than four times, one of the bankers cited above said. “Investors bid a total of more than $2 billion, indicating solid investor interest for the bonds,” the banker said.

✍ Mahindra and Mahindra falls nearly 2% on Kotak downgrade
Mahindra and MahindraBSE 0.99 % Ltd shares fell 1.7 per cent after Kotak Institutional Equities cut the auto maker to 'reduce' from 'add' and lowered target price to Rs 1,310 from Rs 1,404.
Kotak cited valuations as the key reason. Adding Mahindra and Mahindra has lost 13 per cent market share in the utility vehicle segment over the past two years.

✍ Wockhardt rallies over 3%, hits 52-week high on merger plans
WockhardtBSE 1.66 % rallied as much as 3.3 per cent in trade on Wednesday to hit its fresh 52-week high of 871.40, after the drug maker said that it plans to merge two wholly owned subsidiaries with itself as part of a new business realignment.
The company said in a statement to the stock exchanges on Tuesday that it will consider and approve amalgamation of two wholly owned subsidiaries viz Wockhardt Biopharm and Vinton Healthcare with Wockhardt.

✍ Biocon rallies over 1% on buying stake in Syngene International
Biocon Ltd rallied as much as 1.6 per cent in trade on Wednesday, after the drug maker acquired GE Capital's entire 7.69 per cent stake in its research services subsidiary Syngene International for Rs 215.38 crore.
Biocon Research Ltd, a wholly owned subsidiary of Biocon, has entered into an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation to purchase the latter's investment in Biocon's research services subsidiary, Syngene International for an agreed consideration of Rs 215.38 crore.

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