Market Analysis: Review on Monday, Dec 27

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Market Analysis: Review on Monday, Dec 27
Mumbai, Dec 27: Here is the daily market review on Monday, Dec 27.


JSW to recast Ispat top deck

The JSW Group's acquisition of Ispat Industries is likely to prompt a reorganization in the ML Mittal family and will also seek to replace existing agreements to ring fence Sajjan Jindal's JSW from any possible litigation. JSW, which bought 41 percent in Ispat for Rs 2,157 crore and is likely to increase its stake further through the open offer will nominate directors on board of JSW Ispat on a 2:1 basis.

The JSW group will replace all existing raw material supply agreements that Ispat Industries earlier had to ensure efficient purchases of key ingredients such as coke and pellets. The sale of Ispat was promoted by its lenders, who have lent about Rs 9,500 crore including working capital. Lenders had been scouting for possible suitors to avoid the Ispat account from turning into a non-performing asset. JSW has offered to refinance the existing debt with money raised from new lenders at lower cost by leveraging on the balancesheet of JSW Steel.

DLF's arm to settle row with foreign investors

The hospitality arm of DLF will pay Rs 145 crore to settle a dispute with certain overseas investors paving the way to rope in a strategic partner in ultra-luxury hotel chain Aman Resorts.

DLF's subsidiary, Silverlink Holdings that owns Aman Resorts, had filed a case in Singapore High court to repurchase convertible securities held by them. The court had asked Silverlink to pay $32.63 million to a group of investors. The repurchase of the securities held by investors by Silverlink at the price ordered by the Singapore court values the company at Rs 3,625 crore or $800 million. DLF had bought 97 percent stake in Aman in 2007 for $400 million from its founder Adrian Zecha, who owns the remaining 3 percent stake. Aman Resorts has 23 hotels across 12 countries patronized by the super-rich.

Indiareit to float Rs 500 crore fund for office realty

Indiareit Fund Advisors, a real estate Venture Capital fund backed by 3i Group is planning to raise a Rs 500-crore maiden domestic rental yield fund to invest in commercial realty projects in India. The fund with a target net internal rate of return of 20 percent, will invest in information technology parks and commercial offices across the major metros such as Mumbai, Bangalore, Pune, Chennai, Hyderabad and New Delhi.

The money would be raised from high net-worth individuals and institutional investors. The average ticket size would be Rs 80-120 crore. More investors are backing rental yield funds as they offer lower risk compared with investing in projects that are still under development. Indiareit currently manages one offshore fund worth $200 million which has 3i Group as anchor investor.

KFC keen to increase veggie platter

KFC, is keen to increase its vegetarian offerings to cater the interest of a large majority of Indians. The company would increase its vegetarian offerings, developed on taste and quality pillars after understanding consumers' nuances over many years. These pillars are a secret of 11 herbs and spices, usage of real ingredients ranging from 100 percent pure vegetables, freshly prepared dishes in the in-built kitchen of the restaurant rather than factory-made ingredients, and separate fryers, utensils, tongs and cold storage for vegetarian and non-vegetarian items. It assures that, vegetarians interests will be safeguarded in terms of hygiene, value and cleanliness. KFC presently operates in 21 cities, both metros and mini-metros. It recently opened its 100th store in Bangalore. The Company plans, to complete 500 stores over the next five years. KFC started its operations in India in 1996 and started expanding from 2006 in smaller cities such as Jalandhar, Chandigarh, Lucknow and Kochi.


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