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Wednesday, 5 September 2018

CORPORATE NEWS 05-Sep-2018


BEL tumbles ~15% post change in government pricing policy
As per media sources, the defence ministry plans to cut down on profit margins on the projects that are awarded on nomination basis. In lieu of this, BEL's stock price has taken a huge hit given that ~40% of its order inflows are usually on nominated basis.
However, BEL on CNBC TV-18 stated that because the new policy is only applicable to new contracts, it is unlikely to have any drastic impact on its profitability. As per the company, the Akash missiles order, which is likely to be signed in the next few months, might be awarded as per the new norm.

Cyient zooms 5% after receiving first order from Indian Army
Shares of Cyient zoomed 5% on the BSE in afternoon trade. Cyient Solutions & Systems), a joint venture between Cyient Ltd. and BlueBird Aero Systems, Israel, on Tuesday announced that it has received its first supply order from a unit of the Indian Army for SpyLite mini UAV systems for high altitude aerial surveillance.
Meanwhile, Morgan Stanley said it is overweight on the stock with target price at Rs825 per share, implying a 13% potential upside, as per media reports.

Strides to market Potassium Chloride Extended Release Tablets in US
Strides Pharma Science’s subsidiary Strides Pharma Global has received an approval from the USFDA to market Potassium Chloride Extended Release tablets USP, 8 mEq (600 mg) and 10 mEq (750 mg) in the US, the company said in the a statement to the exchanges on Wednesday.
This is the second extended release product approval for the company, which a strong pipeline of products leveraging its capability in has extended release delivery technology, the company added. Strides will manufacture the tablets at its Bangalore facility. The tablets will be marketed by Strides Pharma Inc. in the US Market.

L&T successfully completes offer for sale of L&T Infotech shares
Larsen & Toubro (L&T) has successfully completed the offer for sale (OFS) of Larsen & Toubro Infotech (LTI) shares yesterday, September 4, 2018, thereby lowering its stake in LTI by ~6% (from ~81.5%).
As a part of its requirement to gradually bring down its holding in LTI within three years, L&T offered 59 lakh shares via a base offer and 46.3 lakh shares via the green shoe option. The green shoe or the oversubscription option was exercised as the company got a solid response from non-retail participants.

Cadila receives USFDA approval for Acyclovir Sodium Injection
Cadila Healthcare has received an approval from the USFDA to market the Acyclovir Sodium Injection. Reacting to this news, shares of the company were trading ~1% up on Wednesday.
An approval has been received to market the injection, 500 mg (base)/10 mL (50 mg (base)/mL) and 1,000 mg (base)/20mL (50 mg (base)/mL) single dose vials, the company said in a press note to the exchange today. Cadila will manufacture these formulations at its Moraiya facility in Ahmedabad.




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