Reliance Lifts Lyondell Bid to $13.5 B

Mayank Mehta
11 Jan, 2010
New York City

Stocks in Mumbai traded lower after Reliance agreed to lift its offer for LyondellBasell to $13.5 billion from $12 billion and raised $763 million through the sale of treasury stocks. Rupee edged higher after as foreign investors increase exposure to Indian stocks. Dhampur Sugar Mills net triples.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower after Reliance agreed to lift its offer for LyondellBasell to $13.5 billion from $12 billion and raised $763 million through the sale of treasury stocks. Rupee edged higher after as foreign investors increase exposure to Indian stocks. Dhampur Sugar Mills net triples.[/R]

The Sensex index in India decreased 13.58 or 0.08% to 17,526.71 and CNX Nifty index rose 4.65 or 0.09% to 5,249.40. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 2,116 stocks advanced, 832 declined and 49 were unchanged.

India's December 2009 export will show expansion, trade minister Anand Sharma said on Monday. Sharma also said that better than expected winter crop prospects is likely to rein in the runway food inflation and said that government is not looking to import wheat and rice.

Reliance Industries fell 1.8% after the firm raised $763 million through a block sale of 3.3 crore shares on Monday.

Banking stocks fell on profit taking. Metal stocks advanced as metals prices rose on stronger-than-expected Chinese imports data released on Sunday.

MBL Infrastructure on its first day of trading surged 16% to Rs 208.70, a 15.9% from its initial public offer price of Rs 180.

Rupee edged higher 37 paisa to 45.38 against one dollar.

Gainers & Losers

Amtek Auto Limited increased 5.6% to Rs 188.40 after the company's equity changed hands in top gear after bulk deals.

Bajaj Hindusthan Ltd added 0.1% to Rs 232.60 after the sugar and ethanol manufacturing company said first quarter net profit of Rs 85.20 crore compared to net loss of Rs 55.94 crore a year ago.

BGR Energy Systems Limited rose 2.0% to Rs 563.70.

Bihar Tubes Limited gained 4.6% to Rs 99.25 after the manufacturer of steel pipes and tubes said third quarter sales rose 12.8% to Rs 85.5 crore from Rs 75.8 crore a year ago. Net profit for the quarter was Rs 8.4 crore compared to net loss of Rs 7.4 crore a year ago.

Blue Star Infotech Limited declined 5.0% to Rs 134.00 after the software developer had surged more than 20% in the last one week of trading.

Dhampur Sugar Mills Limited rose 1.2% to Rs 154.25 after the sugar company said first quarter sales rose 24% to Rs 332.1 crore from Rs 267.8 crore a year ago. Net profit for the quarter rose 322% to Rs 57.8 crore compared to net profit of Rs 13.7 crore a year ago.

Energy Development Company Limited advanced 9.2% to Rs 77.55 after the company announced that it has received sub-contract for Turnkey implementation of Rajiv Gandhi Gram Vidyut Yojna scheme in Manipur for Rs 56.70 crore to be completed in eighteen months.

Exide Industries Limited rose 3.4% to Rs 120.20 after the manufacturer of storage batteries said third quarter sales rose 16% to Rs 913 crore from Rs 787.7 crore a year ago. Net profit for the quarter rose 132% to Rs 130.5 crore compared to net profit of Rs 56.2 crore a year ago.

JK Tyre & Industries Ltd gained 3.5% to Rs 160.30 after the company plans to invest Rs 1,200 crore over the next three-four years for capacity expansion.

Minda Industries Ltd climbed 3.5% to Rs 283.50 after the manufacturing of automotive parts announced that a meeting of the board of directors of the company will be held on January 11 to evaluate an offering to raise capital.

Reliance Industries Limited decreased 0.9% to Rs 1,091.10 after the company increased its bid to acquire LyondellBasell to $13.5 billion from the earlier offer of $12 billion. In the proposed offer, RIL will acquire $2.2 billion in new stocks and participate in a separate $2.8 billion rights offering by the troubled refiner that will lift Lyondell from bankruptcy.

Suzlon Energy Limited advanced 1.5% to Rs 94.00 after the wind power turbine maker secured an order from Gujarat Alkalies and Chemicals Ltd for setting up a wind energy project in Gujarat.

Max India Limited rose 1.4% to Rs 219.90 after the specialty plastic products maker said promoters have revoked a substantial portion of pledged shares.

Natco Pharma Limited rose 5.7% to Rs 129.95 after the company said India's federal government has stayed the drug regulator's decision to suspend the company's manufacturing license for generic breast cancer drug Albupax.

Novartis India Limited gained 4.0% to Rs 592.40 after the pharmaceutical company launched schizophrenia treatment Fanapt in the US.

Punjab Chemicals and Crop Protection Limited rose 4.2% to Rs 183.15 after the company said its board will meet on January 13 to consider raising funds.