Larsen & Toubro Selling Its Infra Arm Stake
Engineering major Larsen & Toubro has signed an agreement to sell a minority stake in infrastructure development unit IDPL for Rs 1,000 crore to an arm of Canada Pension Plan Investment Board (CPPIB). “This transaction represents CPPIB’s first investment in India’s infrastructure sector with a highly reputable partner and fits well with our strategy for India as a key long-term growth market,” said Andre Bourbonnais, senior vice president, private investments, CPPIB. L&T said that the completion of the transaction and receipt of funds is subject to fulfilment of customary closing conditions for transactions of this nature and procuring necessary approvals from relevant government authorities and regulators.
GIC FY14 Net Profit Goes Down
General Insurance Corporation of India (GIC) is down with 3.9 per cent from Rs 2,345 crore. This was due to the obligatory cession (Portion transferred from premium for reinsured risk) from GIC coming down to five per cent compared to 10 per cent in FY13. “Due to the mandatory cession coming down to five per cent, we suffered a direct setback of Rs 3,500 crore. In spite of that, we have suffered minimum losses and, hence, this has been a satisfactory performance,” said A K Roy, chairman and managing director of GIC Re.
Ashok Varma Appointed Director (Onshore), ONGC
In first oil PSU appointment by the new NDA government, Ashok Varma has been appointed Director (Onshore) of Oil and Natural Gas Corp (ONGC). Prior to his joining as Director (Onshore) on June 19, he was heading ONGC’s Eastern Offshore Asset at Kakinada, where he was instrumental in putting the Eastern Offshore Asset on production. “Ministry of Petroleum & Natural Gas, Government of India vide letter dated June 19, 2014, has appointed Ashok Varma, as Director (Onshore), ONGC,” the company said in a filing to the stock exchange. Earlier, Varma steered Imperial Energy in Russia, a subsidiary of the ONGC Videsh Ltd (OVL), as the Chief Executive Officer and played an important role in the Sakhalin project in Far East Russia.
Essar Oil Board Approves Delisting Proposal
Essar Oil is locked in upper circuit, up 5% at Rs 114 on BSE, after the company said its board has approved the promoter’s proposal to delist company’s shares from the stock exchanges. The board of directors of the company at its meeting held on June 22, 2014 has approved and to take on record a letter dated June 20, 2014 received from Essar Energy Holdings informing it of a proposal to voluntarily delist the equity shares of the company listed on the two exchanges, Essar Oil said in a regulatory filing. Essar Oil said it will seek the consent of the shareholders of the company for the delisting proposal by way of postal ballot and e-voting.
BOI Seeks Fund Infusion From Govt
State-owned Bank of India said it has requested Rs 2,000 crore fund infusion from the government to meet capital requirement for the current fiscal. “We have sought around 2,000 crore (capital from government),” BoI Chairperson and Managing Director V R Iyer said. The government holds 66.7 per cent stake in the bank. Asked if the bank would go in for the public offer, she said it would not be immediately going in for a qualified institutional placement or a rights issue.
IRB Infra Gains
IRB Infrastructure Developers is trading higher by per cent to Rs 214 after the company said it has entered into a pact with National Highways Authority of India (NHAI) for an Rs 2,300 crore project for widening of a highway stretch in Haryana under National Highways Development Project (NHDP). Kaithal Tollway Private Limited – wholly-owned subsidiary of the company, has now executed concession agreement with NHAI for the project of four laning of Kaithal – Rajasthan border section of NH-152/65 in Haryana under NHDP Phase – IV, IRB Infra said in a statement.
CEAT At New High
Ceat has surged 6 per cent to Rs 618, after the overseas investor has bought equity shares worth of Rs 13 crore of the company though open market. MV SCIF Mauritius, part of US-based asset management company Van Eck Associates Corporation, on June 20, 2014 purchased 218,398 shares of Ceat at a price of Rs 575.11 per share.The stock opened at Rs 594 and touched a new high of Rs 624 on NSE. The counter has seen huge trading activity with a combined 1.79 million shares representing 5.06 per cent of total equity of the company changing hands.