The Indian Industrial production (IP) growth accelerated to 7.8%YoY in June: This compares with a growth of 2.2%YoY (revised downwards from 2.7% earlier) in May and 1.2%YoY in April 2009. While we were expecting industrial production to remain on the recovery path, the growth in June was much above market expectations and our expectations. Infact, the IP growth in June 2009 is highest since February 2008. While we expect sustained recovery in IP growth, the monthly growth numbers do tend to be volatile at times and there could be some retracement in IP growth over the next 1-2 months. (more…)
Author: CP
Food prices soar 32% in 60 Days – What is the Government Doing ?
Despite the wholesale prices based inflation being in the negative zone for more than two months, India’s food prices continue to remain high. As per the latest figures, annual inflation was -1 .58 for the week ended July 25 [Old Data needs to be revamped, total disconnect with current World]. However, it has had little impact on prices of essential food items that continues to soar.
According to an analysis of 14 essential commodities collated by the ministry of consumer affairs, retail food prices have surged 32% in the country in the months of June-July compared to 18% in the corresponding period in 2008. However, WPI based inflation has been negative through most of this period. (more…)
Adani Power – Allotment + Status of Application
The management of Adani Power has released the Basis of Allotment just minutes ago and our reporters are in receipt of a copy. All applications above 195 shares have been given firm allotment 🙂
Applications for 975 shares have received 368 shares. The chart is as below (more…)
Fortis Healthcare rights issue 2:5 ratio
Fortis Healthcare has said that the issue committee of the directors of the company has fixed 2:5 ratio for its rights issue i.e. 2 new shares for every 5 shares held.
Apart from this, the subscribers to the rights issue will also be entitled to 2 detachable warrants (one each of Series A and Series B) for every 2 rights shares allotted.
These detachable warrants can be called upon by the company, at its option, within the given time frame, in future.
The company has fixed the price for its rights issue at Rs 110 per share, consisting Rs 10 as the face value and Rs 100 towards the premium. The size of the rights issue will be Rs 997 crore.
The proceeds of its rights issue would be used for funding greenfield projects, including green field project in Gurgaon, redemption of preference shares, repayment of short term debt, upgradation of its existing facilities and tapping future investment opportunities for growth, as mentioned in its filing with the BSE.
The issue is scheduled to open in the first fortnight of September 2009.
NHPC – Subscribe for Long Term
NHPC is India’s largest hydro power company. NHPC has experience of developing and executing hydroelectric projects. The company has managed the development and implementation of 13 hydroelectric projects, including two through its subsidiary, NHDC. NHPC has 5,175MW of existing generation capacity and is likely to almost double this over the next 4-5 years. This is totally CLEAN and Green Energy which will help the company earn carbon credits some time later. In FY2009, the company derived Rs3,436.22 crore or 84.81% of its (more…)
Monsoon Failure – Negative rural demand + GDP Numbers Backtrack
According to press reports, the rain deficit has worsened from 19% of the Long-Period Average till date last week, to 25% now. Data from the IMD suggests that overall shortfall over the June-September period could rise to 15%-18% from the foretasted 8%.
The monsoon is important for India’s agricultural growth given that about 60% of crop land is not irrigated and thus dependent on rainfall. We think that the overall shortfall over the June-September period could rise to 15%-18% from the current 8% shortfall forecast by the IMD. (more…)