Diageo buys fresh 26% in USL, gains control

Succeeding in its second attempt to gain controlling stake in United Spirits , world's largest liquor maker Diageo Plc has acquired an additional 26 percent shares in India's largest alcoholic beverages company for Rs 11,448.91 crore.

UK-based Diageo paid Rs 3,030 for a share of United Spirits Ltd (USL), more than double of Rs 1,440 it offered in the previous bid last year.

Shares of USL, the flagship company of Vijay Mallya-led UB group, today closed at Rs 2,486.55 a share, up 2.93 percent from its previous close on BSE.

Diageo through its wholly-owned subsidiary Relay BV has accepted the tender of 37,785,214 shares in United Spirits Ltd (USL) at a price of Rs 3,030 per share under the tender offer announced on April 15, Diageo Plc said in a statement.

The shares tendered and accepted by Diageo are in the process of being transferred to Relay B V and represent 26 percent of USL's issued share capital, it added.

"Diageo, therefore, will have a total interest of 54.78 percent in USL acquired for a total consideration of Rs 18,023.14 crore," it added.

Diageo Chief Executive Ivan Menezes said: "India has now become one of Diageo's largest markets and will be a major contributor to our growth ambitions."

USL is the leading player in the attractive Indian spirits market with great brands, a unique route to consumer and talented people, he added.

"We can now combine that strong platform with Diageo's strengths to create a compelling future in India for Diageo, USL and the Indian spirits industry," Menezes added.

Diageo's earlier Rs 5,441-crore offer for 26 percent stake had received a tepid response from public investors. Of 3.8 crore shares of United Spirits that were on offer, shareholders tendered just 64,169 shares and only 58,688 scrips were accepted. Diageo had offered to buy shares at a price of Rs 1,440 per piece.

Diageo, which sells brands such as Smirnoff vodka and Johnnie Walker whiskey, had announced in 2012 it would pick up a 53.4 percent stake in USL in a multi-structured deal. USL brands include Signature, Bagpiper, Antiquity and Royal Challenge.

United Spirits stock price

On July 02, 2014, United Spirits closed at Rs 2486.55, up Rs 70.75, or 2.93 percent. The 52-week high of the share was Rs 2940.55 and the 52-week low was Rs 1993.30.

The company's trailing 12-month (TTM) EPS was at Rs 22.94 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 108.39. The latest book value of the company is Rs 440.83 per share. At current value, the price-to-book value of the company is 5.64.

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Expectations from Budget 2014

All eyes are on Arun Jaitley as he gears up for his maiden Budget on July 10. Not just Jaitley's but this is also Modi government's first Budget and expectations are running high.

All eyes are on Arun Jaitley as he gears up for his maiden Budget on July 10. Not just Jaitley's but this is also Modi government's first Budget and expectations are running high.

To know what experts are expecting from the upcoming Budget, watch the videos.

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Govt extends validity period of industrial licence to 3 yrs

Seeking to improve ease of doing business in India, the government Wednesday decided to extend the validity period of industrial licence to three years with a provision for further extension of two years.

However, the commerce and industry ministry's press note said that the licence will lapse automatically after five years in absence of commencement of commercial production.

"In supersession of all earlier Press Notes, the period of validity of Industrial Licence is being extended from two years to three years as a measure for ease of doing business," the note said.

"Renewal of licence would be allowed for a period of two years. Any Industrial Licence, wherein commercial production has not started within a period of five years of issue of licence, will be treated as automatically lapsed," it added.

Further it said that in case the company fails to start commercial production of items within three years of issue of licence, the application for extension of licence should be submitted to the concerned administrative ministry, 60 days prior to the expiry of three years period.

It has stipulated that in case the application is not received in time, justification for late application would have to be submitted along with the application, it added.

"Applicant's request should be forwarded to Ministry of Home Affairs (in case of industrial licence in defence and explosive sector) and concerned State Government and after seeking comments of these agencies, case should be considered for Extension of validity," it said.

It also listed the conditions for an applicant to meet at the time of applying for extension.

"Land should have been acquired, either under ownership or on lease for minimum period of 30 years; The construction on the projects should have commenced; Orders for plant and machinery for the project should have been placed," the note said.

Recently, the government took steps to improve India's ranking in ease of doing business. Recently, it has de-licensed several defence products for private sector. It has also upgraded the National Industrial Classification Code with a view to make business climate more investor friendly.

According to a World Bank report, India ranks at 134th position out 189 economies.

In its election manifesto, BJP has said that it would ensure "that a conducive, enabling environment is created making 'doing business' in India easy. We will focus on cutting the red tape, simplifying the procedures and removing the bottlenecks".

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Apollo Hospitals rejigs designations at top level

While the redesignations of Preetha Reddy, Suneeta Reddy and Sangita Reddy are for the remaining period of their tenure up to February 02, 2016, the redesignation of Shobana Kamineni is for the remaining period of her tenure up to January 31, 2015, it added.

In a major rejig at its top level, Healthcare major  Apollo Hospitals has re-designated Preetha Reddy and Shobana Kamineni as Executive Vice-Chairpersons with immediate effect in a move aimed at reorganisation in line with their expanded roles.

The company has also re-designated Suneeta Reddy and Sangita Reddy as Managing Director and Joint Managing Director respectively. Board of Directors of the Company at its meeting held today have taken these decisions, Apollo Hospitals Enterprise said in a statement.

Commenting on the development, Apollo Hospitals Group Chairman Prathap C Reddy said: "As the healthcare landscape in the country and the region changes and expands, this strategic realignment, we believe, will enable Apollo to focus on growth opportunities in hospitals, pharmacies, clinics and health insurance while furthering its clinical leadership and service excellence."

While the redesignations of Preetha Reddy, Suneeta Reddy and Sangita Reddy are for the remaining period of their tenure up to February 02, 2016, the redesignation of Shobana Kamineni is for the remaining period of her tenure up to January 31, 2015, it added.

The Board has also approved the re-appointment of Shobana Kamineni as Executive Vice Chairperson for a period of five years with effect from February 01, 2015 on the existing remuneration terms, Apollo Hospitals said.

"It is a move aimed at strategic alignment and is in keeping with the expanded roles and additional responsibilities being assigned to us. It is to focus on the
growth of the company,"  Apollo Hospitals Enterprise Shobana Kamineni Executive Vice-Chairperson told PTI.

The company's board has also appointed Vinayak Chatterjee as an independent director of the company with effect from today, it added.

Apollo Hospitals Enterprise currently has over 8,600 beds across 50 hospitals, 1,632 pharmacies, 92 primary care and diagnostic clinics and 100 telemedicine units across 10 countries.

Apollo Hospital stock price

On July 02, 2014, Apollo Hospitals Enterprises closed at Rs 1026.75, up Rs 37.75, or 3.82 percent. The 52-week high of the share was Rs 1042.90 and the 52-week low was Rs 802.00.

The company's trailing 12-month (TTM) EPS was at Rs 23.77 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 43.2. The latest book value of the company is Rs 196.05 per share. At current value, the price-to-book value of the company is 5.24.

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RINL raises prices by up to Rs 1,000 per tonne

RINL has raised the price of TMT bars by Rs 500-1,000 a tonne. It has also hiked the price of wire rods by Rs 350-450 per tonne and other products such as rounds, structurals and semis by Rs 300-700 a tonne.

State-owned Rashtriya Ispat Nigam Ltd (RINL) has raised prices of its products by up to Rs 1,000 per tonne from this month. The Vizag-based firm, which mainly produces products for use in the construction sector, attributed the hike to increase in railway freight and other input costs.

Also read: Impact of infra development on real estate

RINL has raised the price of TMT bars by Rs 500-1,000 a tonne. It has also hiked the price of wire rods by Rs 350-450 per tonne and other products such as rounds, structurals and semis by Rs 300-700 a tonne.

"The increase is due to hike in railway freight and other input costs. Though Railways increased the freight with effect from June 26, RINL increased the prices with effect from July 1, there by reducing the burden on customers by 4 days," it said in the statement.

In one of the biggest hikes, the cash-strapped railways recently raised passenger fares by 14.2 per cent for all classes and increased freight rates by 6.5 per cent to garner Rs 8,000 crore annually through the pre-budget decision.

Steel makers generally raise prices in tandem. However, it is learnt that private sector firms are yet to decide on the quantum of the hike.

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Tata Steel to cut 400 jobs in UK

This follows world's largest steel maker ArcelorMittal shutting down some sites in Belgium and France to battle weak demand in European markets.

Global giant  Tata Steel today said it will cut about 400 jobs at its South Wales plant in the UK as part of cost-trimming efforts in the wake of lower demand in Europe.

"Tata Steel today announced restructuring proposals. The proposed changes would enable the UK Strip Products Business to compete in Europe's lower market demand era by reducing costs equivalent to the loss of about 400 jobs in Port Talbot," the company said in a statement.

This follows world's largest steel maker ArcelorMittal shutting down some sites in Belgium and France to battle weak demand in European markets.

Tata Steel's European Chief Executive Karl Koehler said: "Steel demand and prices are likely to be under pressure for some years. Our business rates in UK are much higher than in other EU countries and our UK energy costs will remain uncompetitive until new mitigation measures come into effect.

These proposed changes then are vital if we are to build a competitive future for our Strip Products business in the UK."

Koehler said the company has invested more than 250 million pounds over the last two years in the state-of-the-art steel-making technology in the Strip Products business.

In addition, it is investing in its Hot Strip Mill in Port Talbot and upgraded galvanising line in Llanwern to increase production of high-value automotive steels.

Koehler said, "We will, of course, engage fully with employees, trade unions and our political stakeholders during this restructuring process. And we will do everything we can to support our employees through this unsettling time."

Roy Rickhuss, Chair of the UK trade unions' steel committee, said: "We are obviously very concerned to hear this news and we will do all we can to support those affected by the announcement."

He added that the news demonstrated that despite the Government's trumpeting of economic recovery, the steel sector remains under real pressure.

"We will be seeking an urgent meeting with the company to discuss our concerns about manning levels and reiterate our opposition to any compulsory redundancies."

Tata Steel stock price

On July 01, 2014, Tata Steel closed at Rs 541.35, up Rs 13.05, or 2.47 percent. The 52-week high of the share was Rs 578.60 and the 52-week low was Rs 195.40.

The company's trailing 12-month (TTM) EPS was at Rs 66.02 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 8.2. The latest book value of the company is Rs 634.48 per share. At current value, the price-to-book value of the company is 0.85.

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Infosys to announce Q1 results on July 11

The audited consolidated financial results of the company and its subsidiaries for the quarter ended June 30, 2014 will also be considered, it added.

Country's second largest software services firm  Infosys today said it will announce its earnings for the April-June 2014 quarter on July 11.

"The meeting of the Board of Directors of the company will be held on July 11, 2014 to consider the audited financial results of the company for the quarter ended June 30, 2014 (Q1)," Infosys said in a filing to the BSE.

The audited consolidated financial results of the company and its subsidiaries for the quarter ended June 30, 2014 will also be considered, it added.

Infosys stock price

On July 01, 2014, Infosys closed at Rs 3221.75, down Rs 24.7, or 0.76 percent. The 52-week high of the share was Rs 3847.20 and the 52-week low was Rs 2392.85.

The company's trailing 12-month (TTM) EPS was at Rs 177.52 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.15. The latest book value of the company is Rs 733.03 per share. At current value, the price-to-book value of the company is 4.40.

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Vodafone case: SC refuses to entertain PIL

A bench headed by Justice H L Dattu, however, allowed the petitioner, former Additional Solicitor General Bishwajit Bhattacharyya, to file fresh petition with all relevant documents stating what action Centre has so far been taken on the issue.

The Supreme Court Tuesday rejected the petition that had sought to quash conciliation proceedings between the government and UK telecom major Vodafone over the Rs 20,000 crore tax dues.

Also Read: Airtel likely to be world's third largest telco soon: Kohli

A bench headed by Justice H L Dattu, however, allowed the petitioner, former Additional Solicitor General Bishwajit Bhattacharyya, to file fresh petition with all the relevant documents stating what action Centre has so far been taken on the issue.

The petitioner had argued that the Retrospective Amendment to Section 9 of the Income Tax Act was the law of the land, but the tax department had been sitting idle for over 27 months. He argued that inaction by the taxman amounted to subversion of rule of law.

The petition argued that despite the fiscal deficit bonafide tax demands were been ignored.

The apex court however refused to entertain the petition citing lack of necessary documents or proof to substantiate claims of inaction by the department.

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Shree Cement commissions 2 mtpa grinding unit in Bihar

"...the company has commissioned a grinding unit of two mtpa capacity at Aurangabad in Bihar on June 30, 2014," the cement maker said in a communique to stock exchanges.

Shree Cement  today said it has commissioned a grinding unit of two million tonnes per annum (mtpa) capacity at Aurangabad in Bihar.

"...the company has commissioned a grinding unit of two mtpa capacity at Aurangabad in Bihar on June 30, 2014," the cement maker said in a communique to stock exchanges.

Shree Cement had 13.5 mtpa cement-making capacity before the commissioning of the unit. It has embarked on expansions to take its total capacity to 25 mtpa by 2015 aimed at consolidating position further in the North India market and gain a foothold in the East.

Shree Cements stock price

On July 01, 2014, Shree Cements closed at Rs 7158.20, down Rs 96.8, or 1.33 percent. The 52-week high of the share was Rs 7981.50 and the 52-week low was Rs 3412.65.

The company's trailing 12-month (TTM) EPS was at Rs 228.07 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 31.39. The latest book value of the company is Rs 1103.32 per share. At current value, the price-to-book value of the company is 6.49.

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IFCI acquires 49% equity stake in Rajasthan Consultancy

IFCI has acquired the equity shareholding in RAJCON from one of its associate companies HARDICON Limited (HARDICON).

IFCI  Limited has acquired 49 percent equity stake in unlisted Rajasthan Consultancy Organisation Ltd (RAJCON) for an undisclosed amount.

"As a result of the said purchase of equity shares, IFCI's shareholding in RAJCON shall become 49 percent of the total paid-up equity capital and RAJCON shall become an associate company of IFCI," the company said in a release.

IFCI has acquired the equity shareholding in RAJCON from one of its associate companies HARDICON Limited (HARDICON). IFCI, previously Industrial Finance Corporation of India, is a government owned development bank catering to long-term finance needs of the industrial sector. Shares of the company closed down 0.95 percent at Rs 41.60 apiece on BSE.

IFCI stock price

On July 01, 2014, IFCI closed at Rs 41.60, down Rs 0.4, or 0.95 percent. The 52-week high of the share was Rs 44.90 and the 52-week low was Rs 17.85.

The company's trailing 12-month (TTM) EPS was at Rs 3.06 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 13.59. The latest book value of the company is Rs 41.68 per share. At current value, the price-to-book value of the company is 1.00.

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