L&T open offer to acquire 31% stake in Mindtree to start June 17

Engineering major Larsen & Toubro's (L&T) open offer to acquire 31 percent stake in midcap IT major Mindtree will start on June 17 and end on June 28, according to the offer letter by the engineering major.

As per the revised schedule, the independent directors of Mindtree will have time till June 13 to give their recommendations to stakeholders. The last date for revision of the offer price is June 14.

The initial open offer was slated to happen on May 14 and was postponed due to delay in approval by the Securities and Exchanges Board of India (SEBI).

The market regulator had sought clarifications from L&T regarding the open offer. As a result of this delay, the committee of independent directors set up by Mindtree were unable to recommend to their shareholders whether to opt for the open offer or not.

With SEBI's approval now in place, L&T has sent the Letter of Offer to Mindtree to acquire 31 percent of its shares.

In India’s first-ever hostile takeover bid, L&T signed a definitive agreement to acquire 20.32 percent from VG Siddhartha and his coffee enterprise for over Rs 3,000 crore on March 18. The deal was formalised late April.

In March, L&T said it would increase its stake to 66.32 percent through an open offer for 31 percent and an open market purchase of 15 percent. This puts the total value of the acquisition at Rs 10,700 crore, or Rs 980 per share. On June 6, the company upped its stake in Mindtree to 28.90 percent.

The move was against what Mindtree founders wanted since they did not want to be a part of large conglomerate. The weeks leading up to the buyout of Siddhartha’s majority stake by L&T saw the founders of Mindtree taking all necessary steps of fend off a hostile takeover bid. This included the buyback of shares or looking for another white knight. The company's move failed at both ends.

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L&T to announce Q4 earnings today; here's what brokerages expect

Engineering and construction major Larsen & Toubro is expected to report double-digit yearly growth in March quarter earnings on strong execution. Sequential performance is also expected to be robust given strong order inflow.

Profit is likely to grow in the range of 10-25 percent YoY, but sequential growth could be 30-90 percent, brokerages said, adding revenue may increase over 10 percent YoY.

For Q4FY19, Motilal Oswal expects revenue growth of 11 percent YoY to Rs 45,200 crore. "We have factored in 11 percent YoY growth in the E&C segment driven by execution in the domestic segment," it said.

L&T is likely to lead Q4FY19 with strong order inflows, said ICICI Securities. Company has announced orders in excess of Rs 47,000 crore and is expected to report strong order inflows growth during the quarter.

It has secured orders worth more than Rs 16,000 crore in hydrocarbon, Rs 18,000 crore in construction, Rs 3,500 crore in power T&D and around Rs 9,500 crore in water & effluent treatment segment.

Edelweiss said it expects 14 percent YoY growth in core EPC revenues led mainly by the infra segment. Services businesses are expected to grow at 25 percent, it added.

Kotak also expects 13 percent growth in core EPC execution in Q4FY19, leading to around 17 percent growth for the full year in core EPC.

"Infrastructure segment will report a modest around 8 percent revenue growth in line with opening backlog that was up 9 percent YoY. The biggest growth driver is expected to be the hydrocarbon segment, growing 28 percent YoY in the quarter continuing the robust performance from 9MFY19 (+32 percent) on the back of strong order inflows that constituted 16 percent share of core E&C order inflows in 9MFY19," the brokerage said.

Among other segments, heavy engineering will likely report high double-digit growth, E&A will sustain 10-11 percent growth and power segment will see another quarter of decline based on our analysis of order book, it added.

At the operating level, Motilal Oswal expects operating profit margin to improve by 60bp YoY to 13.9 percent in Q4FY19.

"We expect core E&C business to report EBITDA margin of 13.5 percent in Q4 in a seasonally strong quarter that provides operating leverage benefits. This margin will also improve FY2019E core E&C margin by 25 bps as guided by the management," Kotak said.

Among individual segments, margin remains a function of job mix and execution stage, it added.

Key monitorables would be working capital, and order inflow, revenue and margin guidance for FY20.

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Stocks in the news: Reliance Industries, SBI, L&T, Voltas, HCL Tech, Welspun Corp, GSPL

Here are stocks that are in the news today:

Results Today: SBI, L&T, Allahabad Bank, Canara Bank, Syndicate Bank, Eicher Motors, Glaxosmithkline Consumer Healthcare, Gujarat Poly Electronics, HT Media, IDFC First Bank, Kajaria Ceramics, Merck, Nocil, Oberoi Realty, Punjab Chemicals, PVR, Tata Investment Corporation, V2 Retail, Vakrangee, Venky's, V-Mart Retail, VST Tillers Tractors

Voltas Q4: Net profit down 27.5% at Rs 139.6 crore versus Rs 192.6 crore, revenue up at Rs 2,062.8 crore versus Rs 2,048.4 crore, YoY

PNB Housing Q4: Net profit up 51% at Rs 379.8 crore versus Rs 251.6 crore, revenue up 30.9% at Rs 2,145.2 crore versus Rs 1,638.2 crore, YoY

Vardhman Textiles Q4: Consolidated net profit up 9.6% at Rs 179 crore versus Rs 163.7 crore, revenue up 16.8% at Rs 1,763.4 crore versus Rs 1,509.6 crore, YoY

HCL Tech Q4: Net profit down 1.7% at Rs 2,568 crore versus Rs 2,611 crore, rupee revenue up 1.9% at Rs 15,990 crore and dollar revenue up 3.5% at USD 2,278 million, QoQ

MGL Q4: Net profit up 27.4% at Rs 133.5 crore Vs Rs 104.8 crore, revenue up 23.2% at Rs 793.2 crore Vs Rs 643.8 crore, YoY

GSPL Q4: Net profit down 2.6% at Rs 153.3 crore Vs Rs 157.4 crore, revenue up 23.8% at Rs 433.9 crore Vs Rs 350.4 crore, YoY

MGL Q4: Net profit up 27.4% at Rs 133.5 crore Vs Rs 104.8 crore, revenue up 23.2% at Rs 793.2 crore Vs Rs 643.8 crore, YoY

GSPL Q4: Net profit down 2.6% at Rs 153.3 crore Vs Rs 157.4 crore, revenue up 23.8% at Rs 433.9 crore Vs Rs 350.4 crore, YoY

Indian Overseas Bank Q4: Loss at Rs 1,985.2 crore Vs loss of Rs 3,606.7 crore, NII down 14.7% at Rs 1,479 crore Vs Rs 1,733 crore, YoY

Kalpataru Power Q4: Net profit up 30.6% at Rs 136.9 crore Vs Rs 104.8 crore, revenue up 29% at Rs 2,491.4 crore Vs Rs 1,931.4 crore, YoY

Sundram Fasteners approved payment of second interim dividend at Rs 3.10 per share for the financial year ended March 31, 2019.

Reliance Brands, a subsidiary of the Reliance Industries has signed a definitive agreement to acquire 100% equity shares of Hamleys Global Holdings

Welspun Corp to consider proposal to buyback the fully paid-up equity shares of the comapny on May 14

Company has received additional pipe orders of 103 KMT which will be serviced from India

Quess Corp completed the acquisition of 100% equity in Greenpiece landscape

Edelweiss Financial Services - ECL Finance announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of Rs 3000 mn

Brigade Enterprises - CRISIL reaffirmed long term rating to CRISIL A; outlook revised to stable from negative

Analyst or Board Meet/Briefings

Care Rating's board meeting is scheduled on May 21 to consider and approve the financial results for the period ended March 31, 2019

Oil India's board meeting is scheduled on May 27 to consider and approve the financial results for the period ended March 31, 2019

Corporation Bank's board meeting is on May 17 to consider and approve the financial results for the period ended March 31, 2019

Arvind's board meeting is scheduled on May 17 to consider and approve the financial results for the period ended March 31, 2019 and recommend dividend, if any.

Interglobe Aviation's board meeting is on May 27 to consider and approve the Audited standalone/consolidated financial results of the Company for the quarter and year ended March 31, 2019

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Stocks in the news: Maruti, Axis Bank, Bharti Infratel, Indiabulls Housing, Automotive Stampings, L&T

Here are stocks that are in the news today:

Results on April 25: Maruti Suzuki India, Axis Bank, Tata Steel, Biocon, SBI Life Insurance Company, Aditya Birla Money, Cyient, GHCL, Indiabulls Ventures, MCX, Nestle India, AAR Commercial Company, Apcotex Industries, Betala Global Securities, Cochin Malabar Estates, Lloyds Metals and Energy, Oriental Hotels, PH Capital, Rallis India, Sterling Guaranty & Finance, Vesuvius India, Wendt (India)

Indiabulls Housing Finance Q4: Consolidated profit falls 6.9 percent YoY and rises 2.1 percent QoQ to Rs 1,001.4 crore; NII increases 5.8 percent to Rs 1,591 crore versus Rs 1,504 crore QoQ.

SBI: Board approves raising up to $2.5 billion through dollar notes in FY20.

Automotive Stampings Q4: Loss at Rs 3.82 crore versus loss at Rs 9.1 crore; revenue rises to Rs 139 crore versus Rs 111.9 crore YoY.

Bharti Infratel Q4: Consolidated net profit rises to Rs 608 crore versus Rs 606 crore; revenue falls 2 percent to Rs 3,600 crore versus Rs 3,662 crore YoY.

Shah Foods: Company has received a letter from Britannia Industries Limited stating that the job work contract is terminated with effect from 30/06/2019.

Persistent Systems: Company has appointed Sandeep Kalra as President - Technology Services, with effect from May 1, 2019.

FDC: Company' non-sterile manufacturing facility located at Waluj, Aurangabad, Maharashtra had recently undergone an inspection by PIC/S Malaysia and it continues to be approved. Hence, the Company continues to export oral liquid, oral powder and external powder products.

Oil India: Board approves proposal for giving its employees an opportunity to exercise the option to contribute towards the Employee Pension Scheme on the basis of actual salary, having a financial impact of approximately Rs 1,788 crore to the company.

IPCA Laboratories: To acquire Ramdev Chemical for Rs 108.5 crore.

Oriental Hotels: To consider raising funds via debt securities on April 25

Tata Elxsi: Company appoints Manoj Raghvan as CEO and MD of the company with effect from October 2.

Larsen & Toubro: Company issues NCDs aggregating to Rs 1,500 crore on April 18.

Allahabad Bank: Bank allots 162.5 crore shares worth Rs 6,900 crore to Government of India in a preferential basis.

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Source: Moneycontrol

Stocks in the news: RIL, HDFC Bank, GVK Power, SBI, Jet Airways, L&T, Tata Coffee

Here are the stocks that are in news today:

Results Today: AU Small Finance Bank, Goa Carbon, Lux Industries, Mahindra Lifespace Developers, Shiva Cement, Swaraj Engines, Tejas Networks

CCI approves acquisition of electrical & automation business of L&T by Schneider & Macritchie

Reliance Industries Q4

Net profit up at Rs 10,362 crore, revenue down 11.3% at Rs 1.38 lakh crore

Gross refining margin at USD 8.20/bbl

Rel Jio Q4 net profit up 1.1% at Rs 840 crore; FY 19 profit up 309% at to Rs 2,964 crore, YoY

HDFC Bank Q4: Net profit rises 22.6 percent to Rs 5,885.1 crore, net interest income increases 22.8 percent to Rs 13,089.5 crore YoY.

Tata Sponge Iron Q4 net profit at Rs 24.39 crore, revenue at Rs 254.07 crore

ICICI Lombard Q4FY19 net profit up 7.5% to 228 crore against Rs 212 crore in Q4 FY2018

Jay Bharat Maruti Q4 net profit falls 63 percent at Rs 11.10 crore against Rs 18.13 crore, YoY

Tata Coffee Q4: Profit jumps to Rs 10.49 crore versus Rs 6.46 crore; revenue increases to Rs 460.52 crore versus Rs 440.43 crore YoY.

SpiceJet, Emirates sign MoU for codeshare partnership

Reliance Capital: Brickwork Ratings revised rating to A+ (credit watch with negative implications) for long-term debt program, market-linked debentures and subordinated debt of the company, due to extension of timeline for progress of planned disinvestments in various companies.

CARE Ratings revised its rating to A (credit watch with developing implications) for long-term debt programme, market-linked debentures and subordinated debt of the company, due to extension of timeline for progress of planned divestments in various companies.

Majesco announces ready-to-use partner apps in Majesco Digital1st EcoExchange

Asian Granito India Ltd forays into Sanitaryware

Dr Reddy's Laboratories: USFDA classifies Srikakulam plant inspection as Voluntary Action Indicated (VAI)

Thangamayil Jewellery opens new retail outlets

Corporation Bank: Brickwork revises the outlook on the rating of bank's bonds to stable.

Bank of Baroda: Srei Equipment Finance and BoB to offer joint loans for infrastructure equipment under a new agreement.

GVK Power - Abu Dhabi Investment Authority and the National Investment & Infrastructure Fund to invest in new shares in GVK Airport Holdings, subsidiary of company, equating to a 49% stake

Bank of Maharashtra board meeting on April 29 to consider audited financial results for the quarter ended March 2019

Axis Bank issued 5 year Senior Fixed Rate Green Bonds aggregating to USD 40,000,000 under the GMTN Programme

Jet Airways

Nasim Zaidi has submitted the resignation as non-executive non independent director

Independent director Rajshree Pathy resigns

Etihad spokesperson said Aviation Group sees significant value generation from ownership & management of Jet Privilege Program (Reuters).

CRISIL downgrades DHFL commercial papers' rating to CRISIL A3+ from CRISIL A2+

Shirpur Gold Refinery appoints Sharvan Kumar Shah as chief financial officer

JSW Steel raised USD 500 million by the allotment of fixed rate senior unsecured notes

SBI board meeting on April 24 to consider fund raising plan

Borosil Glass Works made an additional investment in Klass Pack, a subsidiary company

Gravita India: Gravita Tanzania commences commercial production of lead from its plant situated at Tanzania, East Africa.

GKB Ophthalmics: Board accepted the resignation of Gaurav Gupta, Promoter, Non-Executive Director, from the post of Director and as a member of the Audit Committee.

FCS Software Solutions: Board approved the scheme of amalgamation providing for the merger of its wholly owned subsidiaries, Insync Business Solutions, Innova E Services, Stablesecure Infraservices, Cgain Analytics and Zero Time Constructions with FCS Software Solutions.

Out of F&O Ban: DHFL, Jet Airways, Reliance Power, Wockhardt

Analyst or Board Meet/Briefings

Syngene International: Board meeting is scheduled on April 24 to consider a proposal for issue of bonus shares.

Gujarat State Fertilizers & Chemicals: Company will announce its FY19 earnings on May 22.

Raymond: Company will announce its FY19 earnings on April 30.

Wockhardt: Company will announce its FY19 earnings on May 6.

ICICI Securities: Company will host an earnings call with analysts and investors on April 23 to discuss the financial results of the company.

Bharti Infratel: Board to recommend/declare dividend, if any, in its meeting scheduled to be held on April 24.

KPR Mill: Board meeting will be held on April 29 to consider audited financial results for the year ended March 2019, recommendation of dividend, if any; and the proposal for buyback of shares.

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Source: Moneycontrol

L&T acquires TIDCO's 3% stake in L&T Shipbuilding for Rs 32.74 cr

Infrastructure giant Larsen & Toubro (L&T) on Thursday said it has purchased Tamil Nadu Industrial Development Corporation Ltd's (TIDCO) 3 per cent stake in its subsidiary L&T Shipbuilding Ltd for Rs 32.74 crore.

"The company has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Ltd (TIDCO) in L&T Shipbuilding Ltd (LTSB), a subsidiary company, on April 10, 2019. TIDCO held 3 per cent stake in LTSB. The same has now been acquired by L&T, to make it a wholly owned subsidiary," L&T said in a BSE filing.

L&T said it acquired TIDCO's stake pursuant to exercise of a put option which TIDCO had on Larsen & Toubro Ltd which is the promoter of L&T Shipbuilding as agreed with TIDCO at the time of inception of L&T Shipbuilding.

L&T Shipbuilding was incorporated on November 13, 2007, and currently operates a modern shipyard from Kattupalli, Chennai carrying out shipbuilding and ship related activities.

The company undertakes manufacture and building of warships, auxiliary vessels/crafts and specialised commercial ships.

In addition, Kattupalli shipyard also undertakes repairs and refits of both defence and commercial ships.

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Source: Moneycontrol