NEWS ANALYSIS - Mar 13, 2013
Rajesh Desai
INFRASTRUCTURE
IL&FS Engineering and Construction Company Ltd has received EPC Contract in Road Sector for Rs. 1436.08 Crores.
IL&FS Engineering and Construction Company Ltd has received EPC Contract in Road Sector for Rs. 1436.08 Crores. The company has received a Letter of Intent (LoI) from Kiratpur Ner Chowk Expressway Limited, an SPV incorporated by IL&FS Engineering and Construction Company Ltd for the project. The project is an Engineering, Procurement, and Construction (EPC) contract that involves four laning in Kiratpur Ner Chowk Section of NH-21 in the state of Punjab and Himachal Pradesh. The project completion period is 1005 days from commencement date. The total length of the project is 84.375 kms. covering the district of Rupnagar in Punjab, and the districts of Bilaspur and Manali in Himachal Pradesh.
METALS & MINING
Ministerial panel defers MMTC stake sale on valuation concerns
· An inter-ministerial panel today deferred the Government’s 9.33 per cent stake sale in the State-owned trading company MMTC on concerns over valuation of the company’s equity. The issue was originally planned to hit the markets on March 14.
· According to sources, the sale is likely to be shifted to the next financial year 2013-14 which begins on April 1. The Government had shortlisted three merchant bankers for selling over 9.33 crore shares or 9.33 per cent of its stake in MMTC in the current fiscal through an Offer For Sale (OFS). Since the public float of the company is very less, sources said the merchant bankers had a tough time in evaluating the share sale price which would be acceptable to investors. The Government was expecting to raise Rs 250-300 crore through the stake sale.
Tata Steel buys 9.25 lakh shares of Tata Power
· Tata Steel has informed the stock exchanges that it bought 9.25 lakh shares of Tata Power on March 4. The transaction cost the company Rs 9 crore. Following the purchase, the stake of Tata Steel, a promoter group company, increased to 1.08 per cent from 1.04 per cent.
Tata Steel arm buys stake in Canadian mine for Rs 160 cr
· Tata Steel has acquired through its subsidiary Tata Steel Minerals Canada (TSMC) half the interest in Labrador Iron Mines’ (LIM) Howse deposit for Canadian dollars 30 million (Rs 160 crore). TSMC has the option to raise its stake to 70 per cent by paying Rs 130 crore. Howse has estimated iron ore reserves of 28 million tonnes (mt). TSMC will transfer its “Timmins 4” deposit, having resources of 1.7 mt, to LIM for C$3 million (Rs 16 crore), which is recoverable from sales.
· Tata Steel already has a presence in Canada after it bought 27.7 per cent in New Millennium Iron Corporation. It also owns 80 per cent in NML’s DSO Project in the Labrador region. The DSO Project has 125 mt of resources spread over 25 deposits.
Coal scam: CBI files status report with Apex Court
· The Central Bureau of Investigation (CBI) on Tuesday filed its status report in the Supreme Court on the coal allocation scam. To ensure that there is no political interference in the process, the apex court has asked the CBI Director to file an affidavit stating that the status report will not be shared with political executives. The Supreme Court has also sought an explanation from the Government.
Coal India has signed fuel supply pacts with 56 power plants: Minister
· The government said that state-run Coal India (CIL) has signed fuel supply pacts with 56 power plants so far. Coal India Ltd has signed 56 fuel supply agreements (FSAs) with the power plants as on March 2. The deadline set by the Prime Minister’s Office for signing of FSAs between CIL and power producers expired in January.
EGoM on Nalco Stake Sale Today; SAIL Next Week
· Keen to achieve the scaled down disinvestment target of INR24,000 crore, the government is working to sell part of its stake in Nalco and SAIL in the next fortnight. The inter-ministerial committee disinvestment is scheduled to meet on Tuesday to decide on sale price of Nalco equity, adding similar meeting for SAIL will be held next week. The EGoM is scheduled to meet on Tuesday and decide on Nalco base price, adding the issue could hit the market on March 15.
· The disinvestment of Nalco and SAIL could together fetch around INR4,000 crore to the exchequer ,adding that the MMTC disinvestment is now likely only in next fiscal. The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, on Monday deferred MMTC's 9.33% stake sale on valuation concerns. At the current market price the 12.5% or 31.31 crore shares of Nalco is expected to fetch around.1,400 crore to the exchequer. The government currently holds 87.15% stake in Nalco, and post stake sale its holding would be 75%.
NMDC eyes INR10,000 cr from stake sale
· NMDC is looking to garner INR8,000- 10,000 crore from the sale of its 50 per cent stake in the upcoming three- million tonne per- annum steel plant in Chhattisgarh to a strategic partner.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
--
CA. Rajesh Desai