Trackpad
Mahindra CIE Announces Acquisition
The board of directors of Mahindra CIE Automotive has approved the acquisition of 100 per cent of the issued and outstanding share capital of Aurangabad Electricals and authorized the signing of a share purchase agreement. The acquired firm’s revenues and PAT for FY18 were Rs. 651 crore and Rs. 34.4 crore, respectively, while its long-term borrowings was at Rs. 88 crore. Aurangabad Electricals caters to automotive aluminium die-cast components industry and is a crucial supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier-1 auto component companies. For this acquisition, the company would pay Rs. 830 crore in cash. The said acquisition is expected to be completed before April 10, 2019. The company’s management believes that this acquisition would lead to the company’s entry into the automotive aluminium die-casting segment and increase strength in the two-wheeler segment.
Adani Enterprises Subsidiary Secures Two Road Projects
Adani Transport, a wholly-owned subsidiary of Adani Enterprises, has received Letter of Awards for 2 hybrid annuity road projects (HAM) from National Highways Authority of India (NHAI) in the state of Telangana. These projects include four laning of NH-363 from Mancherial to Repallewada under NHDP Phase-IV on HAM and also four laning of Suryapet to Khammam of NH365BB under Bharatmala Pariyojana on HAM in the state of Telangana. These projects are worth Rs. 1,356.9 crore and Rs. 1,566.3 crore, respectively. Adani Enterprises consolidated net profit declined by 72 per cent to Rs. 80.09 crore in the quarter ended December 2018 as against Rs. 286.97 crore YoY. This decline in profitability was on account of higher expenses. The company’s total income stood at Rs. 10,548.14 crore in the quarter ended December 2018 as against Rs. 9,241.61 YoY, registering a growth of 11.43 per cent. Adani Enterprises has forayed into new sectors like petrochemicals and technology earlier this year.
PSP Projects Bags Orders Worth Rs. 601.21 Crore
PSP Projects has received work orders worth Rs. 601.21 from multiple clients. The company will carry out the order for industrial, institutional, government and residential projects from various clients. A major chunk of order is received from Indian Institute of Management, Ahmedabad for Construction and Implementation Work of its Faculty Houses, Student Dormitories and Staff Houses New Academic Block, JSW School of Public Policy and Sports Complex for a contract value of Rs. 328 crore. The remaining orders have come in from other major clients like Cadila Healthcare, MRF, Gujarat Cancer Society, Torrent Pharmaceuticals, CEPT University etc. PSP Projects is an Ahmedabad-based multi-disciplinary construction firm which provides its services ranging from planning and design for construction as well as post-construction activities.
NBCC Secures Four Orders From Raipur SMART City
State-owned infrastructure company, NBCC (India) secured four orders from Raipur SMART City Limited (RSCL). The company will charge project management consultancy fees at the rate of 8 per cent on the actual cost of work as per the terms of the agreement. Three of the four orders are for the commercial redevelopment of Ganj Mandi, Shastri Mandi and Naveen markets in Raipur. These projects have a total estimated cost of Rs. 700 crore. The other order is for the development of two vacant lands in Raipur. The company has a presence across three main segments namely, Project Management Consultancy (PMC), Real Estate Development and EPC Contracting. The PMC segment contributes 88 per cent to the company’s revenues and has an order book of almost Rs. 85,000 crore. The company has won projects worth Rs. 8,311.68 crore for the April-December 2018 period. The company also made an entry into large-scale residential projects with the Supreme Court handing over incomplete projects of the private builder, Amrapali Group to the company.
Standard Life To Liquidate 4.93 Per Cent Stake In HDFC Life
Standard Life will sell 4.93 per cent stake in HDFC Life Insurance for Rs. 3,570 crore in order to comply with the public shareholding norm. Standard Life is the joint venture partner in HDFC Life Insurance. Standard life holds 29.2 per cent whereas HDFC holds 51.5 per cent. Standard Life sold 7 crore shares which is 3.47 per cent of the total equity of HDFC Life Insurance company on March 12 through an offer for sale. There is an option to offload an additional 2.95 crore shares or 1.46 per cent of equity in case of oversubscription. The floor price of Rs. 357.5 per share is at an 8.2 per cent discount to Monday’s closing price of Rs. 389.8 per share. As per SEBI’s minimum public shareholding norms, promoters of HDFC Life Insurance Company need to reduce 5.71 per cent stake before November 2020. At present, the combined shareholding of the joint venture partners stands at 80.71 per cent. Standard Life’s stake in HDFC Life will drop to 24.27 per cent.
Capacite Infra Secures Orders Worth Rs. 486 Crore
Capacit’e Infraprojects has received an order from Municipal Corporation of Greater Mumbai to redevelop Harilal Bhagwati Municipal General Hospital at Borivali. The said order amounts to Rs. 486.81 crore. Capacite’s order book (excluding MHADA) as on December 31, 2018, stood at Rs. 7,519 crore. This strong order book gives revenue visibility for the next 4-5 years. The residential segment contributes nearly 77 per cent to the order book, while the commercial & institutional segment contributes around 23 per cent. During the recent quarter Q3FY19, the company’s revenue grew by 22 per cent on YoY basis, whereas net profit increased marginally by 5.3 per cent on YoY basis. Capacit’e Infraprojects Limited is a leading building construction company with presence in MMR, NCR, Bengaluru, Hyderabad, Chennai, Kochi and Pune, with specialisation in the construction of super high rise buildings.
DLF Plans To Reduce Debt Via QIP Of Rs. 3,000 Crore
DLF plans to raise Rs. 3,000 crore by June by selling equity shares to qualified institutional investors (QIP). DLF is aiming to become a debt-free company. The company had announced plans to issue up to 17.3 crore shares via QIP to raise funds and pre-pay debt. The proceeds from the QIP combined with an additional infusion of Rs. 2,500 crore from promoters against the issue of warrants would aid in the reduction of debt which stood at Rs. 7,200 crore in December 2018. The company also intends to sell ready to move housing inventories worth Rs. 12,500 crore in the next 3-5 years. DLF promoters K P Singh and family will pump in Rs. 2,250 crore into the company in addition to the Rs. 9,000 crore already infused by them. The company made a preferential allotment of compulsorily convertible debentures (CCDs) and warrants against the infusion of funds. This infusion, however, would cause the promoter shareholding to exceed the permissible limit of 75 per cent. The QIP will also allow the company to maintain minimum public shareholding of 25 per cent in the public company. The promoters had sold their entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs. 11,900 crore and committed to invest this amount in the company to cut net debt.
Future Retail To Focus On Big Bazaar Expansion
Future Retail plans to spend around Rs. 150-200 crore per year to expand Big Bazaar outlets in the Eastern region. The region contributes nearly 25 per cent to the company’s total revenue, said a media report quoting top official. As on December 31, 2018, the company’s Big Bazaar store count stood at 286 across 144 cities covering 12.5mn sq.ft. During the recent quarter, the company has added 2 new stores of the same with area addition of 0.14mn sq.ft. Big Bazaar operates large formats stores which contributed around 85 per cent to the company’s total revenue with SSG (Same Sales Growth) at 10.1 per cent in Q3FY19 vs 13.1 per cent in Q3FY18. The revenue increased by 13 per cent on YoY basis, whereas PAT increased by 10 per cent YoY. Future retail promoted by Kishor Biyani operates in the various division through its brands like Big Bazaar, a hypermarket format; Food Bazaar, a supermarket; fbb, a fashion destination; Foodhall, a supermarket, and Easyday convenient stores. In terms of home business, the company functions Home Town, a one-stop destination for home improvement, and eZone, a consumer durables and electronics chain.