TOP CORPORATE NEWS
· Torrent Pharma confirms acquiring dermatology company Encore
Torrent Pharma confirms that it is in race to acquire dermatology company Encore (positive read through).While reacting to speculation, Torrent Pharma has clarified that the company has submitted a non-binding bid for one of the companies of Encore Group, subject to various assumptions and conditions and is in discussions for crystallizing the proposal. Earlier, there was a media news that Torrent Pharma may buy dermatology company Encore for Rs350 crore.
· Coal India attempts to rationalise coal linkages to southern states
Coal India has initiated a process to rationalise coal linkages for various power generation companies in southern States, while also seeking to work out some minor coal swap arrangements within its fold.
The objective is also to ease the pressure on supplies from Mahanadi Coalfields Ltd, a CIL subsidiary, through some swap arrangements. With this development, merchant power demand and price could soften in southern states; hence negative for JSW Energy and Nava Bharat Ventures.
· BASF India launches largest construction chemicals plant
BASF India Limited launched its largest construction chemicals plant in India at Nellore in Andhra Pradesh, which offers advanced chemicals solutions for new construction, maintenance, repair and renovation of structures – positive read thru for BASF India.
· Gammon India rallies on bagging two orders worth Rs840.65 crore
Shares of Gammon India surged nearly 18% at Rs24.45 in early deals on the National Stock Exchange after the infrastructure company annnounced that it has secured two new projects worth Rs840.45 crore.
The stock opened at Rs23.05 and touched a high of Rs24.90 on the NSE.
· Petrol price cut by 80 paise, diesel by Rs1.30
Oil marketing companies slashed retail prices for petrol by Rs0.80 a litre and retail price of diesel by Rs1.30 a litre responding to lower crude oil prices. The new rates would be effective from April 16. Prior to this, the oil marketing companies had cut price of petrol by 49 paise and diesel by Rs1.21 for every litre from April 2. With this price cut, petrol will be sold in Delhi for Rs59.20 a litre and diesel for Rs47.20 a litre.
· Sun Pharma, Israel university ink pact to develop anti-cancer drugs
Sun Pharma and Technion-Israel Institute of Technology have entered into an exclusive worldwide research and license agreement to develop anti-cancer drugs. Although, financial details of the arrangements have not been disclosed, we presume that Sun will fund and participate in the research program jointly with Technion and upon successful completion of the research program, Sun will have marketing rights to certain regions. The development is positive read through.
· Aviation scrips fall on rise in crude oil prices
Shares of SpiceJet, Jet Airways fell as global crude oil prices surged yesterday, April 15, 2015. SpiceJet (down 1.15%) and Jet Airways (down 2.13%). Aviation turbine fuel ( ATF) or jet fuel typically constitutes about 50% of airlines’ operating costs. Jet fuel prices are directly linked to international crude oil prices.
· American motorcycle company EBR files for bankruptcy
American motorcycle manufacturer Erik Buell Racing ( EBR) has shut down operations and has filed for bankruptcy. The company was in the business of manufacturing sports motorcycle and also participated in racing competitions. In 2013, Hero MotoCorp had invested USD25mn in EBR while picking up 49.2% stake. EBR is under court protection with outstanding liabilities of USD20mn and the court is expected to call for bids to liquidate the company.
· Food Minister to propose raising import duty on sugar to 40%
Food minister would propose raising the import duty on sugar to 40% from 25% as a preventive measure to protect farmers, though the country has amassed massive stocks through bumper local harvests. It is estimated to rise to 26.5 million tonnes in 2014/15 from 24.4 million in the previous year.
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