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Tuesday, 4 September 2018

CORPORATE NEWS 04-Sep-2018


LIC to probe open offer for acquisition of IDBI Bank stake
The board of Life Insurance Company (LIC) is expected to explore an open offer for acquiring stakes in IDBI Bank and they may seek the Securities and Exchange Board of India (SEBI) to take a call on the offer, media reports said on Tuesday citing Economic affairs secretary SC Garg.
Garg, who is a member of the LIC board, also added that the insurance company has set a timeline for acquiring a 51% stake in IDBI Bank. The decision was taken at LIC's board meeting in Delhi on Tuesday. The meeting was held to take necessary decisions, supporting their plan to buy the 51% share in IDBI Bank.

TCS becomes second Indian company to cross Rs8 lakh cr in market cap
TCS made a new all-time high on Tuesday's trade, taking its market cap past the Rs8tn or Rs8 lakh cr-mark, joining Reliance Industries. While Reliance's market cap had breached this mark with the aid of Jio, retail and improvement in petchem performance, rupee depreciation and solid digital-led revenue growth are taking TCS to new highs.
TCS has been in a league of its own, evident from the solid turnaround in BFSI, where the vertical grew 3.7% qoq in constant currency terms in Q1FY19 while peers reported mixed bag results. This can be attributed to the results of its past investments. An example of this would be the solid wins by Diligenta, which has many opportunities in the US and Japan insurance markets.

Bajaj Electricals completes 80% acquisition of Nirlep
As per an exchange filing, Bajaj Electricals has announced that it has acquired ~80% stake in Nirlep Appliances Private Limited for Rs34cr. As per the announcement, on June 15, 2018, the company had entered into an agreement to acquire 100% of Nirlep for total cash consideration of Rs42.5cr. The said transaction was to be carried out in two tranches. The first tranche would cover acquisition of 80% stake within 60 days of the date of agreement. As a part of the second tranche, Bajaj Electricals holds an option to acquire remaining 20% at any time after the closing date.

Balkrishna Industries under pressure after foreign brokerage house downgrades the stock
Shares of Balkrishna Industries (BIL) extended losses in Tuesday’s trade after HSBC downgraded rating as well as slashed target price for the stock.
The global brokerage house has downgraded the stock to hold from Buy and slashed target price to Rs1, 370 from Rs1, 410 per share.
The stock saw decline on Monday as the company’s Board of Directors approved a capex plan of Rs1, 700cr.

Hathway Cable jumps 20%; inks partnership with Netflix
Shares of Hathway Cable jumped 14% on the BSE in the noon trade as the company has partnered with Netflix to offer video streaming services to the latter's eight lakh subscribers, as per media report.
Under this alliance, Netflix will be offered through Hathway's set-top box that includes a remote with a dedicated Netflix button to allow users to launch the service directly, report added.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.


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