Skip to main content

Fundamentals May 9, 2013

Nik's Diary
The Indian markets opened positive today tracking strong cues from SGX Nifty. Meanwhile, the major Asian markets are up in early trading except for Hang Seng. After recovering from an early move to the downside, US stocks moved mostly higher over the course of the trading day on Wednesday. The markets extended the upward trend that has been seen since a brief pullback in mid-April. With the gains on the day, the Dow and the S&P 500 reached new record closing highs, while the Nasdaq set another new twelve-year high. The European markets also moved higher on Wednesday, extending gains from the previous trading session. The markets got off to a positive start thanks to the better than expected trade data released by China. The unexpected increase in Germany industrial production, coupled with yesterday's factory orders growth, also provided a boost to investor sentiment. Meanwhile, Indian shares continued to rise Wednesday to close at 3 month highs with the BSE index closing just shy of 20,000 as FII inflows continue to drive the market. 

Bombay High Court approves JSW Steel-JSW Ispat merger
The merger of JSW Ispat Steel into JSW Steel has been approved by the Bombay High Court last week, paving the way for the company to become second largest steel producer in the country after SAIL. The two companies -- JSW Steel and JSW Ispat Steel -- said in two separate filings to the Bombay Stock Exchange (BSE) that the Composite Scheme of Amalgamation and Arrangement amongst the two companies and their shareholders and creditors was sanctioned by the Bombay High Court on May 3, 2013. According to the Scheme, shareholders of JSW Ispat will get one JSW Steel share for every 72 shares they hold. Moreover, JSW Ispat will transfer its Kalmeshwar undertaking and JSW Steel will transfer its downstream undertaking to JSW Steel Coated Products. Besides, JSW Building Systems will also be merged with JSW Steel. The two companies said that the order has been uploaded on High Court's website on May 7 but "the certified copy of the order sanctioning the Scheme is awaited". "The Scheme will become effective only upon receipt of the certified copy of the order of the High Court and on compliance with the requisite formalities," they added. Shareholders and creditors of the two companies had approved the merger on January 30. Post completion of formalities, JSW Steel's annual production capacity will increase to 14.3 million tonnes (MT) from existing 11 MT and it will become second largest domestic producer after SAIL. Post-merger, promoters of JSW Steel will hold 35.12 per cent in the merged entity, while company's second largest shareholder JFE Steel holding will come down to 14.92 per cent. JFE had about 15 per cent stake in JSW Steel till the time of merger announcement in September last year. JSW Steel had acquired 41 per cent stake in debt-ridden Ispat Industries from Pramod and Vinod Mittal, brothers of the steel czar L N Mittal, in December 2010 for about Rs. 2,157 crore. Ispat Industries was subsequently named as JSW Ispat. Later, it increased its stake to 46.75 per cent in JSW Ispat and is the single-largest shareholder of the company. Through merger, JSW Steel is aiming at various benefits, including synergy in operations and reducing the borrowing cost of JSW Ispat by Rs. 250 crore. The merger would also help JSW Steel in laying claim on deferred tax benefits available to JSW Ispat of over Rs. 2,088 crore as Ispat has started making profits since April-June quarter of 2012. Source: NDTV

Comments

Post a Comment

Popular posts from this blog

NDPMS Stock Advisory

It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not intended for distribution to, or use by, any person or entity, any jurisdiction or country, where such distribution or use would be contrary to local law or regulation. Reproduction in whole or in part without written permission is prohibited.
Post a Comment
Read more

12.1% Equity Return in 10 days !! Review it to believe it !!

This is a pseudo folio. The base folio amount was kept at Rs 1 lakh and was created on September 26, 2015. Most of the positions are still open hence please consider this post as an update on the folio.The folio heat was kept at 10% which in simpler words mean that of all position gets their stop losses hit, the folio will drop maximum by 10%. Risk reward ratio is kept at 3:1 which implies that target points are set at 3 times the risks per position taken. This post is subjected to promotion of NDPMS Stock Markets Training Program. Please read the disclaimer before forming any opinions about the post, stock markets or NDPMS Wealth Management. Disclaimer: The intention of this post is not at all to entice the blog viewers to take up NDPMS Advisory Service. The post is solely used to promote NDPMS Training Program. It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not int...
1 comment
Read more

Professional Trading !!

Professional Trading is a profession where an individual makes his living from trading in stock and commodity markets. A professional that involves prolonged training and experience. It provides you with other various opportunities. It gives you freedom of time and money. It has no competition threat. There are no deadlines, no geographical deadlines, no dependency on staff. You are your own boss.  When people come to the world of trading many think that they only need to learn a strategy and follow the rules of that strategy and they do this for a while. The problem with those who do not first get a good foundation of the markets is that when the markets change or when they have a draw down they start making mistakes. Those mistakes lead to self sabotage even in the healthiest of minds. The process of trading is only enjoyable when your sub conscious mind figure out the right ways for trade. In other words those who start with passion very often find that those feelings are...
Post a Comment
Read more