News Detail

• Shares of public sector oil marketing companies (PSU OMCs) and oil exploration firms will be in focus as crude oil prices rose for a third straight day on Wednesday (21 December 2011) after US crude inventories dropped to their lowest in nearly three years, overshadowing worries about the euro zone debt crisis. US February crude settled at $98.67 a barrel, rising $1.43, or 1.47%. In three days, front-month US crude has advanced $5.14, or 5.5%.Higher crude oil prices will increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. While higher crude oil prices will result in higher realisations from crude sales for oil exploration firms.
• Bank stocks will be in focus after the central bank on Wednesday, 21 December 2011, relaxed some restrictions on borrowing by banks from it, in another move aimed at easing the cash crunch in the banking system. The Reserve Bank of India (RBI) has allowed banks to avail themselves of funds from RBI on overnight basis, under Marginal Standing Facility (MSF), against their excess SLR holdings.Additionally, banks can also avail themselves of funds, on overnight basis below the stipulated SLR, up to one per cent of their respective Net Demand and Time Liabilities outstanding at the end of second preceding fortnight. In the event the banks' SLR holdings fall below the statutory requirement, banks will not have the obligation to seek a specific waiver for default in SLR compliance arising out of use of this facility in terms of notification issued under sub section (2A) of Section 24 of the Banking Regulation Act, 1949, RBI said in a circular.
• The board of United Spirits approved raising upto $225 million by issuing foreign currency convertible bonds (FCCBs). The proceeds are intended to retire high cost debt and for other expenditures. The company will take approval of the shareholders for the proposed FCCB plan at an extra-ordinary general meeting on 20 January 2012.Mahindra Holidays & Resorts India (MHRIL), one of the leading players in the leisure hospitality industry, announced the launch of its new acquisition in Goa, the Club Mahindra Emerald Palms. With this acquisition, MHRIL has added another 106 rooms in Goa. Club Mahindra now has the largest resort operations in South Goa taking its tally to 336 rooms with this acquisition.
• Greaves Cotton said that Fitch Ratings have upgraded the long term rating of the company to FITCH AA (IND) from FITCH AA (- IND). The rating FITCH AA (IND) reflects high credit quality and a low expectation of credit risk.Piramal Glass said that Vijay Shah will cease to be the managing director of the company with effect from the close of business hours on 31 December 2011, consequent to his appointment as executive director and chief operating officer of the company with effect from 1 January 2012. Shah will, however, continue to be a member of the board, as a non-executive director, thereby facilitating continuity of leadership and ongoing strategic initiatives.
• Central Bank of India said it raised Rs. 500 crore of Tier II capital on private placement basis on 21 December 2011.Manali Petrochemicals said it entered into an agreement to set up storage and handling facility at Ennore Port, Chennai for bulk import of propylene oxide, a major input for the derivative plants of the company. The aforesaid facility, expected to be ready in about a year, will help the company to achieve and sustain capacity utilisation of the derivative plants at optimum levels.
• The board of SEL Manufacturing Company approved allotment of 1.20 crore convertible equity warrants at Rs. 15.25 each, aggregating to Rs. 18.30 crore to the promoters of the company.The board of Venus Remedies allotted 17 lakh fully convertible warrants on a preferential basis to Sunev Pharma Solutions, a promoter group company.The board of Fame India approved appointing Rajeev Patni as manager of the company with immediate effect.

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