SKS Microfinance in India Oversubscribed

Chandrasekhar Atreya
03 Aug, 2010
New York City

Stocks in Mumbai traded higher after positive earnings and Coal India prepares for its public offering. SKS Microfinance IPO was oversubscribed nearly 14 times. NMDC reports 100% jump in first quarter profit. Adani plans to import 400,00 tons of coal.

[R]5:00 PM Mumbai – Stocks in Mumbai traded higher after positive earnings and Coal India prepares for its public offering. SKS Microfinance IPO was oversubscribed nearly 14 times. NMDC reports 100% jump in first quarter profit. Adani plans to import 4 lakh tons of coal for three users in India. SKS Microfinance IPO is oversubscribed.[/R]

Indian stocks fluctuated and gained marginally at the close. NMDC led gainers among raw material producers after reporting better-than-expected first quarter profits almost doubled.

The Sensex Index gained 0.21% or 38.49 to close at 18,119.70. CNX Nifty Index on the National Stock Exchange gained 0.2% to close at 5,440.05.

NMDC Ltd, India’s largest iron ore miner, reported first quarter profit that was almost double after prices of the steelmaking ingredient increased.

Net income rose to Rs 1,500 crore or Rs 3.79 per share in the quarter ended June 30 from Rs 774 crore or Rs 1.95 per share, the Hyderabad-based company said in a statement to the Bombay Stock Exchange today.

Adani Enterprises Ltd, India’s biggest coal importer, plans to import 400,000 tons of the fuel from South Africa for ACC Ltd and two other companies, according to an official.

Ahmedabad-based Adani, will import the coal by the end of the year. 200,000 tons of the import will be supplied to ACC Ltd, and 100,000 each to Grasim Industries Ltd and Jaypee Cements Ltd.

Securities & Exchange Board of India has asked Anil Ambani, two companies controlled by him and four executives to submit replies to show-cause notices issued by the regulator.

The regulator had on June 9 served notices over certain dealings by Reliance Natural Resources Ltd, Reliance Infrastructure Ltd, and the five executives including Anil Ambani.

ADAG and RNRL directors said they will comply with the SEBI directive.

Reliance Industries Ltd plans to start exploration at two oil blocks in Kurdistan this year, according to a tender document.

Mukesh Ambani-controlled Reliance invited contractors to bid for work to begin extended well testing at its Rovi and Sarta blocks starting in the fourth quarter to evaluate the productivity of a reservoir by estimating the oil and gas.

Contract handset maker Foxconn international Holdings Ltd, said Monday it had resumed operations at a facility in India following a production halt last month after some workers experienced giddiness and nausea.

Foxconn, which makes handsets for companies like Nokia and Motorola Inc, suspended operations at the handset mechanical parts production facility in Kancheepuram District in Tamil Nadu on July 23.

Ahmedabad-based Adani Enterprises Ltd agreed to buy an Australian coal asset from Linc Energy Ltd for A$500 million and agreed to pay a royalty linked to coal production for 20 years as part of the agreement, the company said in a statement today.

SKS Microfinance public issue of Rs 1,654 crore, the first by a microfinance firm in Asia, was oversubscribed 13.64 times at the end of the offer on Monday, according to data from National Stock Exchange.

Gas Authority of India Ltd on Monday reported a 35% jump in net profit in the first quarter ended June 30 despite a five-fold jump in fuel subsidy expenses.

Net profit rose 35.2% to Rs 886.80 crore in the first quarter from Rs 655.80 crore in the same period a year ago, GAIL Chairman and Managing Director B.C. Tripathi told reporters in New Delhi on Monday.

Coal India Ltd’s board is scheduled to meet in Kolkata on August 5 to consider the draft prospectus, now being readied for submission before the Securities & Exchange Board of India. CIL expects to tap the capital market with an IPO of 10% of its equity and expects to submit the prospectus by the first week of August.

Research in Motion agreed to allow Indian security agencies to monitor its BlackBerry services, the Economic Times reported on Tuesday.

After pressure from governments worried about national security, RiM has agreed to share with the Indian security agencies its technical codes for corporate e-mail services, open up access to all consumer e-mails within 15 days and also develop tools in six to eight months to allow monitoring of chats, the newspaper said, citing internal government documents.

Gainers & Losers

Ambuja Cements Ltd dropped 2.1% to Rs 115.90 after the cement company reported dispatches dropped 1.25% to 14.20 lakh tons in July compared to a year ago month.

Atul Auto Limited surged 2.7% to Rs 137.50 after the three wheeler auto rickshaw manufacturer said net profit increased 2,000% to Rs 2.10 crore.

Greaves Cotton Limited rose 4.7% to Rs 356.50 after the diversified engineering company reported its board will meet on 12 August to consider a stock split.

Gulf Oil Corporation Limited fell 1.5% to to Rs 93.70 after the industrial conglomerate said net profit declined 55.58% to Rs 9.31 crore.

Gokaldas Exports Limited declined 1.8% to Rs 150.50 after the maker of garments said first quarter net loss of Rs 17.73 crore compared to net profit of Rs 2.82 crore in the quarter a year ago.

Hero Honda Motors Limited rose 1.6% to Rs 1,855.00 after the motorcycles maker said sales rose 16.6% to 4.27 lakh units in July from year ago.

ICICI Bank Limited gained 2.2% to Rs 960.75 after the bank reported American depository receipt, increased 6.4% to $41.40 on the New York Stock Exchange on August 2, after better-than-expected first quarter earnings.

Jaiprakash Associates Limited surged 1.4% to Rs 120.15 after the diversified infrastructural industrial company reported cement shipments rose 60.5% to 1.22 million tons in July 2010 from July 2009.

Maruti Suzuki India Limited rose 0.6% to Rs 1,215.35 after the automobiles maker raised prices across models between 1% and 1.5% on higher materials costs.

NMDC Limited surged 3.1% to Rs 270.40 after the iron ore producer and exporter reported first quarter net profit increased 94.4% to Rs 1,504.04 crore compared to Rs 773.75 crore in year ago.

Nitco Tiles Limited dropped 3.9% to Rs 59.00 after the tiles manufacturer said net profit declined 79.13% to Rs 1.25 crore from Rs 5.99 crore.

Oriental Hotels Limited gained 6.6% to Rs 351.00 after the hotel operator said it is seeking shareholder approval for 10-to-1 stock split.

Ramco Systems Limited fell 0.4% to Rs 113.20 after the software development company said board approved to raise as much as Rs 40 crore through a rights offering.

Swaraj Engines Limited rose 0.4% to Rs 429.35 after the diesel engines manufacturer reported net profit increased 10.09% to Rs 10.69 crore in the quarter ended June from Rs 9.71 crore in year ago

Strides Arcolab Limited gained 1% to Rs 450.00 after the manufacturer and exporter of finished pharmaceutical dosage company reported Carbapenems manufacturing facility at Campos, Brazil got Certificate of Good Manufacture Practice from Medicines & Healthcare products Regulatory Authority, UK.