DLF and GIC Finalize Investments, Reliance and Almaz in Frigate Deal

Sarla Buch
24 Dec, 2015
New York City

Reliance Defence and Russia-based AlmazAntey for manufacture the four frigates for the Indian Navy worth $4.8 billion. Singapore controlled fund invested $300 million in housing projects developed by DLF. ONGC plans to invest $530 million in three coal-bed methane blocks in eastern India.

[R]6:00 PM Mumbai, India – Reliance Defence and Russia-based AlmazAntey for manufacture the four frigates for the Indian Navy worth $4.8 billion. Singapore controlled fund invested $300 million in housing projects developed by DLF. ONGC plans to invest $530 million in three coal-bed methane blocks in eastern India.[/R]

Stocks on Dalal Street lacked direction but in thin trading closed higher and investors focused on DLF and Reliance Defense developments.

World markets are winding down ahead of holiday period and quieter trading next week as commodities remain depressed and traders look for more decline in crude oil price in 2016.

Rupee closed unchanged at ₹66.20 against one U.S. dollar.

The Sensex Index fell 11.59 to close at 25,838.71. The CNX Nifty slid 4.90 to 7,861.05.

In the shortened trading week, Sensex Index and CNX Nifty rose 0.2%.

Gainers & Losers

Coal India Limited edged up 0.2% to ₹322.40 after the coal producer plans to invest about ₹500 crore in its joint venture with Indian Railways to procure rail wagons for transporting coal.

DLF Limited decreased 1.3% to ₹114.55 after the real estate developer said it completed the 50% sale in two development projects in New Delhi to Singapore government controlled GIC fund.

DLF Home Developers Ltd, the subsidiary of DLF and GIC agreed to a joint venture and the latest investment of ₹1,992 crore was approved by the Competition Commission of India in mid-November.

The highly leveraged developer is struggling with mounting debt and the home builder is working with several private equity investors on a project-by-project basis for its expansion.

Total debt on DLF debt increased 4% in the September quarter from the previous quarter to ₹22,520 crore.

Oil and Natural Gas Corporation Limited edged down 0.6% to ₹234.25 after the oil and gas explorer plans to invest ₹ 3,500 crore in three coal-bed methane blocks in eastern India.

Reliance Defence Ltd plans to sign an agreement with Russia-based United Shipbuilding Company, AlmazAntey for the manufacturing of four frigates for the Indian Navy worth ₹30,000 crore.

Steel Strips Wheels Limited soared 9.9% to ₹434.40 after the steel wheel rims maker won an export order from Siam Kubota Corp for $13.5 million.

Reliance Infrastructure Limited soared 6.7% to ₹488 after the infrastructure developer plans to sell its cement business for ₹2,600 crore or $394 million.

V-Mart Retail Limited surged 18.9% to ₹579.50 after the apparel retailer said that the Reserve Bank of India lifted foreign investor limit to 49%.