DOMESTIC:

Cadila Healthcare Gujarat facility clears USFDA inspection

Wipro partners with NASSCOM to unveil Future Skills platform

KEC International bags orders worth Rs1,520cr across segments

HCL Technologies partners with Critical Manufacturing

Tata Power to own licence for distribution, retail supply of electricity in Odisha

Chalet Hotels signs definitive agreement with Hyatt Hotels Corporation

L&T Technology Services bags multi-million-dollar project in Europe

HCL Tech announces expansion in Canada with a Global Delivery Center

TVS Motor Company launches TVS NTORQ 125 Race edition in Nepal

NTPC to invest Rs50kcrore to add 10GW solar energy capacity by 2022

Glenmark Pharmaceutical Inc. recalls ranitidine tablets in US Piramal Enterprises to raise Rs2,750cr by issuing bonds

NCLT Mumbai approves merger of Strides Chemical and Solara Active Pharma Sciences

HG Infra bags Rs522cr highway project in Haryana from NHAI

Zydus Cadila in talks to sell two units for Rs1,200cr

ONGC gets green nod for Rs3,500cr onshore exploration project in Assam

RIL proposes share swap scheme for Reliance Retail shareholders

Sebi penalizes rating agencies over lapses in IL&FS

Indiabulls sells assets to Blackstone for Rs810cr

Allahabad Bank receives fresh capital of Rs2,153cr from government

Biocon incorporates Biocon Biosphere

HC allowed Eveready Industries to go ahead with the sale of its property at Hyderabad

NIIT Technologies' board approved buyback of its equity shares

Airtel Payments Bank enables 24x7 NEFT transfers

PFC and REC may extend loans with stricter riders to state power discoms

M&M unit SsangYong on the lookout for a strategic investor

Johnson & Johnson gets Rs230cr rap for overcharging GST ECONOMY:

India in midst of significant economic slowdown, says IMF

RBI announces second round of Operation Twist

INDUSTRY:

Highways sector to see Rs15lakhcrore investments in 5 years: Nitin Gadkari

Profitability of domestic hospital sector to improve in FY20, FY21: Crisil

Renewable sector to create peak capacities in CY20

DCGI moves to curb sales of antibiotics without prescriptions

RBI tells banks to cap stake in insurance companies at 30%

BS4 and BS6 price gap to boost used car market

Cement earnings may improve in FY20 on lower input costs

The week that went by:

After the one way rally, the index halted with a negative opening for the week. There were range bound activities with a flat start to trade. The monthly expiry day commenced on an extreme flat note. With pull back moves seen in PSU banks, the Indian markets kicked off the day on a firm note and ended the session at the high point of the day.

Price Performance

Company 1M 3M 12M

Supreme Petrochem Ltd -7.5% -12.0% -22.6%

Shanthi Gears Ltd 1.6% 3.4% -24.1%

Hind Rectifiers Ltd -3.0% 26.5% 83.5%

KCP Ltd -4.2% -15.1% -34.1%

The Hi-Tech Gears Ltd 1.0% -2.1% -48.3%

Bharat Bijlee Ltd -1.8% -17.4% -29.4%

Triveni Turbines Ltd -4.3% -11.0% -17.1%

Siemens Ltd 3.5% 1.1% 48.2%

GMM Pfaudler Ltd 12.9% 23.6% 54.1%

Alicon Castalloy Ltd 1.9% 0.3% -32.4%

Gufic Biosciences Ltd -11.9% -16.2% -34.9%

Excel Industries Ltd -1.2% -15.5% -42.2%

Vesuvius India Ltd 8.3% 11.8% -6.0%

Munjal Showa Ltd -5.1% -5.9% -32.3%

Bharat Rasayan Ltd -5.2% 0.6% 13.7%

Alkyl Amines Chemicals Ltd 0.2% 23.4% 71.7%

Grauer and Weil (India) Ltd 4.2% 4.2% 0.4%

Texmaco Rail & Engineering Ltd -23.2% -36.1% -46.3%

Nagarjuna Agrichem Ltd 1.7% -3.2% -5.5%

ITD Cementation India Ltd -22.3% 2.0% -54.2%

Westlife Development Ltd -7.9% 14.3% -10.3%

Dynamatic Technologies Ltd -7.0% -23.9% -35.6%

Hitech Corporation Ltd -44.3% 1.7% -22.2%

NRB Bearings Ltd -4.6% -8.3% -51.2%

Kokuyo Camlin Ltd 5.3% 8.9% -29.2%

Timken India Ltd 5.8% 16.6% 60.7%

Morganite Crucible (India) Ltd -1.1% -7.6% 5.4%

Vardhman Special Steels Ltd -1.9% -8.7% -33.0%

Zen Technologies Ltd -12.0% -16.0% -31.0%

KSB Ltd 0.3% 2.5% -11.5%

Thermax Ltd 4.8% -8.2% -2.4%

Transpek Industry Ltd -6.5% -12.2% -18.3%

BASF India Ltd 3.4% -1.2% -35.2%

Artson Engineering Ltd 1.8% -17.1% -41.8%

Remsons Industries Ltd -6.5% -16.1% -32.6%

Snowman Logistics Ltd 8.7% 9.8% 21.5%

Alembic Pharmaceuticals Ltd -2.4% 10.4% -1.57%

SKF India Ltd -0.8% -2.4% 12.6%

HFCL Ltd 2.6% -7.1% -16.8%

Sudarshan Chemical Industries Ltd -0.1% 5.8% 17.1%

Huhtamaki PPL Ltd -1.0% 2.3% 26.8%

Mishra Dhatu Nigam Ltd -2.7% 20.1% 19.9%

Anuh Pharma Ltd -5.1% -15.8% -21.5%

Kirloskar Pneumatic Co. Ltd -2.0% -16.9% -29.3%

Integra Engineering Ltd -9.7% -15.0% -32.5%

ICICI Bank Ltd 8.7% 22.3% 54.6%

Indian Hume Pipe Co. Ltd -7.3% -29.1% 18.7%

Engineers India Ltd -5.1% -15.8% 58.3%

Gulshan Polyols Ltd -5.8% -25.4% -42.6%

Nesco Ltd 10.2% 17.3% 52.7%

Castrol India Ltd -11.9% -3.4% 66.8%

Hikal Ltd 0.0% -25.4% 4.1%

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Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 19%

Engineers India Ltd 211 200 Bonus 1 : 1 105 200 -5%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -52%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 41%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -43%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 18%

Coverage Universe Valuations

Company Reco Adj Reco CMP Tgt price Upside Mcap EPS PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY20 FY20 FY20

IHP Ltd BUY 341 203 500 145.8 9.9 20.1 10.1 6.7

Engineers India Ltd BUY 211 100 200 100.8 33.6 7.0 14.2 12.1

Gulshan Polyols Ltd BUY 390 38 78 107.2 1.8 5.1 7.4 3.7

Nesco Ltd BUY 2397 675 800 18.5 9.5 23.7 28.5 22.9

Castrol India Ltd BUY 223 128 200 56.3 63.3 15.6 8.2 10.7

Hikal Ltd BUY 143 113 175 55.1 9.3 10.1 11.2 7.3

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Coverage Universe Valuations

Company Reco Reco at CMP Tgt price Upside Mcap EPS/ ABV

PE/ (P/ABV) [x]

EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY20 FY20 FY20

Supreme Petrochem Ltd BUY 77 155 275 76.9 15.0 6.4 24.3 8.6

Shanthi Gears Ltd BUY 107 100 150 49.6 8.2 3.9 25.7 18.8

Hind Rectifiers Ltd BUY 69 208 275 32.3 3.1 5.3 39.3 19.5

KCP Ltd BUY 71 60 105 75.0 7.7 7.0 8.6 6.5

The Hitech Gears Ltd BUY 298 171 300 75.2 3.2 21.2 8.1 6.1

Bharat Bijlee Ltd BUY 787 803 1500 86.8 4.5 37.4 21.5 16.7

Triveni Turbines Ltd BUY 92 93 150 61.7 0.3 3.1 29.8 18.6

Siemens Ltd BUY 1128 1526 1750 14.7 543.2 53.6 28.4 38.7

GMM Pfaudler Ltd BUY 332 1835 2000 9.0 26.8 26.7 68.8 42.3

Alicon Castalloy Ltd BUY 288 385 650 68.8 4.7 46.6 8.3 5.1

Gufic Biosciences Ltd BUY 50 59 120 102.0 4.6 3.1 19.1 10.9

Excel Industries Ltd BUY 380 820 1200 46.3 10.6 112.2 7.3 4.5

Vesuvius India Ltd BUY 1165 1152 1300 12.8 23.0 56.3 20.5 10.7

Munjal Showa Ltd BUY 191 126 191 52.2 5.0 21.5 5.8 3.8

Bharat Rasayan Ltd BUY 2747 6133 7500 22.3 25.8 257.5 23.8 15.1

Alkyl Amines Chemicals Ltd BUY 391 1067 1300 21.8 21.8 38.9 27.4 15.2

Grauer and Weil (India) Ltd BUY 45 50 65 30.0 11.3 3.0 16.9 11.1

Texmaco Rail & Engineering Ltd BUY 91 31 91 190.7 20.2 1.8 17.3 11.1

Nagarjuna Agrichem Ltd BUY 29 27 45 67.6 4.2 0.8 34.0 12.2

ITD Cementation India Ltd BUY 158 51 130 155.7 7.9 9.8 5.2 3.7

Westlife Development Ltd BUY 266 341 450 32.2 53.0 1.6 214.6 49.6

Dynamatic Technologies Ltd BUY 2160 950 2160 127.3 6.0 51.1 18.6 6.9

Hitech Corporation Ltd BUY 175 88 125 42.9 1.5 6.4 13.7 6.1

NRB Bearings Ltd BUY 138 95 138 45.6 9.2 10.4 9.1 5.9

Kokuyo Camlin Ltd BUY 132 77 132 71.4 7.7 1.5 52.3 18.8

Timken India Ltd BUY 883 900 1000 11.1 61.2 19.0 47.4 23.9

Morganite Crucible (India) Ltd BUY 1047 1525 2000 31.1 4.3 63.9 23.9 2.8

Vardhman Special Steels Ltd BUY 151 66 110 66.2 2.4 8.7 7.6 6.1

Zen Technologies Ltd BUY 115 55 125 127.3 4.2 0.8 68.3 40.9

KSB Ltd BUY 820 682 1100 61.2 23.8 21.2 32.8 13.8

Thermax Ltd BUY 1019 1058 1230 16 126.1 26.8 39.5 29.1

Transpek Industry Ltd BUY 1547 1141 2000 75.3 6.4 76.0 15.0 11.7

BASF India Ltd BUY 1954 1008 1400 38.9 43.6 43.5 23.2 12.3

Artson Engineering Ltd BUY 64 29 55 89.7 1.1 2.3 12.6 14.9

Remsons Industries Ltd BUY 104 72 130 80.6 0.4 7.9 9.1 6.7

Snowman Logistics Ltd BUY 33 43 55 29.0 7.1 0.1 296.4 15.6

Alembic Pharmaceuticals Ltd BUY 605 565 751 32.9 106.5 26.7 21.1 14.9

SKF India Ltd BUY 1942 2131 2620 22.9 109.4 60.7 35.1 23.3

HFCL Ltd BUY 25 18 35 99.4 21.9 1.7 10.4 6.7

Sudarshan Chemical Industries Ltd BUY 372 397 500 25.9 25.8 13.8 28.8 13.7

Huhtamaki PPL Ltd BUY 254 248 320 28.9 18.8 11.2 22.2 8.0

Mishra Dhatu Nigam Ltd BUY 123 158 190 20.6 23.0 7.0 22.6 15.9

Anuh Pharma Ltd BUY 142 128 175 37.0 3.2 9.3 13.7 10.7

Kirloskar Pneumatic Co. Ltd BUY 134 129 192 49.1 8.3 8.6 15.0 9.1

Integra Engineering Ltd BUY 37 38 50 30.5 1.3 3.2 11.8 15.6

ICICI Bank Ltd BUY 535 549 657 19.6 3548.9 151.4 3.6 -

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending|

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 19%

Engineers India Ltd 211 325 Bonus 1 : 1 105 200 -5%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -52%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 41%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -43%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 18%

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending| * T= Target

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

IHP Ltd 341 203 500 600 500 - - - - 19% - -

Engineers India Ltd 211 100 200 250 200 - - - - -5% - -

Gulshan Polyols Ltd 390 38 110 78 - - - - - -52% - -

Nesco Ltd 2397 675 640 800 - - - - - 41%

Castrol India Ltd 223 128 275 250 200 - - - - -43% - -

Hikal Ltd 143 113 200 250 325 216 175 - - 18% - -

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Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

Supreme Petrochem Ltd 77 155 120 150 200 275 350 500 275 - - 102%

Shanthi Gears Ltd 107 100 150 200 150 - - - - - - -6%

Hind Rectifiers Ltd 69 208 110 140 175 220 275 - - - - 201%

KCP Limited 71 60 105 150 200 150 125 105 - - - -15%

The Hitech Gears Ltd 298 171 450 600 500 450 300 - - - - -43%

Bharat Bijlee Ltd 787 803 1100 1500 2000 1500 - - - - - 2%

Triveni Turbines Ltd 92 93 135 150 - - - - - - - 1%

Siemens Ltd 1128 1526 1500 1350 1500 1750 - - - - - 35%

GMM Pfaudler Ltd 332 1835 500 700 800 1000 1300 1600 2000 - - 453%

Alicon Castalloy Ltd 288 385 450 600 750 1000 850 650 - - - 34%

Gufic Biosciences Ltd 50 59 75 100 140 175 150 120 - - - 19%

Excel Industries Ltd 380 820 550 650 800 1100 1400 1800 2200 1800 1200 116%

Vesuvius India Ltd 1165 1152 1500 1300 - - - - - - - -1%

Munjal Showa Ltd 191 126 250 300 350 300 250 191 - - - -34%

Bharat Rasayan Ltd 2747 6133 3500 4250 5000 6500 9000 5000 6500 7500 - 123%

Alkyl Amines Chemicals Ltd 391 1067 550 700 850 1000 1300 - - - - 173%

Grauer and Weil (India) Ltd 45 50 65 80 100 65 - - - - - 11%

Texmaco Rail & Engineering Ltd 91 31 125 150 91 - - - - - - -66%

Nagarjuna Agrichem Ltd 29 27 45 60 75 60 45 - - - - -7%

ITD Cementation India Ltd 158 51 225 180 130 - - - - - - -68%

Westlife Development Ltd 266 341 350 425 525 450 - - - - - 28%

Dynamatic Technologies Ltd 2160 950 3000 2750 2160 - - - - - - -56%

Hitech Corporation Ltd 175 88 230 180 150 125 - - - - - -50%

NRB Bearings Ltd 138 95 200 240 138 - - - - - - -31%

Kokuyo Camlin Ltd 132 77 175 132 - - - - - - - -42%

Timken India Ltd 883 900 1200 1000 - - - - - - - 2%

Morganite Crucible (India) Ltd 1047 1525 1500 1750 2300 2000 - - - - - 46%

Vardhman Special Steels Ltd 151 66 225 140 110 - - - - - - -56%

Zen Technologies Ltd 115 55 170 125 - - - - - - - -52%

KSB Ltd 820 682 1100 - - - - - - - - -17%

Thermax Ltd 1019 1058 1230 - - - - - - - - 4%

Transpek Industry Ltd 1547 1141 2000 - - - - - - - - -26%

BASF India Ltd 1954 1008 2500 2000 1700 1400 - - - - - -48%

Artson Engineering Ltd 64 29 95 75 55 - - - - - - -55%

Remsons Industries Ltd 104 72 155 130 - - - - - - - -31%

Snowman Logistics Ltd 33 43 55 - - - - - - - - 29%

Alembic Pharmaceuticals Ltd 605 565 751 - - - - - - - - -7%

SKF India Ltd 1942 2131 2620 - - - - - - - - 10%

HFCL Ltd 25 18 35 - - - - - - - -30%

Sudarshan Chemical Industries Ltd 372 397 500 - - - - - - - - 7%

Huhtamaki PPL Ltd 254 248 320 - - - - - - - -2%

Mishra Dhatu Nigam Ltd 123 158 160 190 - - - - - - - 28%

Anuh Pharma Ltd 142 128 175 - - - - - - - -10%

Kirloskar Pneumatic Co. Ltd 134 129 192 - - - - - - - - -4%

Integra Engineering Ltd 37 38 50 - - - - - - - 4%

ICICI Bank Ltd 535 549 657 - - - - - - - - 3%

TERM OF THE WEEK:

Current Account and Savings Account (CASA): CASA deposit is the amount of money that gets deposited in the Current and Savings Accounts of bank customers. The bank pays very low or no interest for deposits in current accounts whereas the deposits in Savings Accounts receives slightly higher interest rates. It is the cheapest and major source of funds for banks.

COVERAGE NEWS:

Anuh Pharma Ltd: Anuh Pharma Ltd. has commenced its Commercial Production at E-18 Plant (New Expansion Project). Alembic Pharmaceuticals Ltd: The company has received final approval from the USFDA for its ANDA Travoprost Ophthalmic Solution USP, 0.004%. It is indicated for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension.

ITD Cementation India Ltd: The company has won its first overseas Maritime assignment in Myanmar, the order value aggregating to USD80mn. This is a step towards the endeavour to look for opportunities beyond Indian borders. Our comments: The award of this project is a testimony of the expertise and credentials in the execution and construction of Maritime Structures and Specialist Engineering in EPC Projects. ECONOMY:

India in midst of significant economic slowdown, says IMF The IMF in a report stated that India is in the midst of a significant economic slowdown and has asked India to take urgent steps to reverse slowdown while continuing with credible fiscal consolidation. The report presented two scenarios with one pushing for significant reforms around three pillars to boost growth namely: on-going clean-up of bank balance sheets should be complemented by a decisive strengthening of PSB governance and regulation and oversight of NBFCs. Also a medium-term fiscal consolidation path should be anchored by the Fiscal Responsibility and Budget Management Review Committee’s recommendation to reduce general government debt toward 60% of GDP and further unveil labour, land and productivity reforms. The other scenario in the report is that the country could grow by 7.3% in medium term riding on the back of reforms already taken such as GST and IBC. IMF projected growth at 6.1% in 2019-20, while adding that risks are more to the downside. Our comments: IMF’s report categorically states that India's substantial growth potential depends critically on the implementation of the growth-enhancing structural reforms.

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Weekly Sectoral Gainers & Losers in (%)

Expansion Done

USFDA Approval For Alembic

Action Needed To Reverse The Slowdown

Overseas Order For ITD

INDUSTRY:

Highways sector to see Rs15lk-cr investments in 5 years: Nitin Gadkari The Transport and Highways Minister stated that the governments’ commitment to pump in another Rs15lk-cr in the highways sector in this five-year term plan is intact and unabated as the quest for world class infrastructure continues. Armed with the new Motor Vehicles Act, e-tolling and instruments like InvIT, funding has never been a problem when it comes to infrastructure building. With e-tolling coming into force, the toll income alone will cross Rs8,000cr per annum as after the FASTag system has been made mandatory at national highways, the toll income has increased by Rs25cr per day. Projects on the agenda for 2020 include Rs12,000cr Char Dham project for all weather connectivity to Badrinath, Kedarnath, Gangotri and Yamunotri, completion of a highway for enabling the Kailash-Mansarovar yatra easy. Also, under the Bharatmala, the ministry has identified various stretches for development of various corridors and connecting roads. Our comments: The ministry has so far spent Rs17lk-cr on highways and shipping sectors combined in last 5 years and in the upcoming 5 years an additional infusion of Rs15lk-cr would be witnessed in the highways alone to provide for world class roads including 22 green expressways. DCGI moves to curb sales of antibiotics without prescriptions In a step to tackle the drug resistant bacteria, the DCGI has asked the authorities of all States and Union Territories to stop pharmacies from selling antibiotic drugs without a doctor’s prescription. Antibiotics fall under schedules H and H1 of the Drugs and Cosmetics Rules, which means they can be sold only under prescription. However, regulations for pharmacies are lax and violations are rampant. A number of such medicines are sold widely over the counter without prescriptions. With this move undertaken by the regulators indicates increased awareness about anti-microbial resistance, where bacteria and other microbial become immune to medicines on overuse, thereby making them ineffective against the infections. Our comments: According to experts, the sale of medicines without prescriptions is not the only reason for the rise in anti-microbial resistance but even the effluents that gets discharged by the drug manufacturing units add up to the problem for which the Central Pollution Control Board is working on the effluent treatment norms for pharma companies. BS4 and BS6 price gap to boost used car market Pre-owned car marketeers are of the view that the price differential between a BS4 and BS6 vehicle will be sharp enough to make second-hand cars an attractive proposition and that the industry will continue to clock double-digit sales growth throughout 2020. Second hand market clocked 12% increase in sales so far in 2019 at 4.2 million units and is set to record a 15% increase in 2020. Given that their BS6 variants will cost Rs10,000-Rs50,000 more for petrol variants and Rs50,000- Rs 1lakh more for diesel variants, the price differential between a discounted BS4 car now and a BS6 car after April 2020 will be around 20%. Our comments: These are all assumptions as to how the industry will shape up during and after the transition to BS6 takes place, definitely waiting an affirmation. COMPANY:

KEC International bags orders worth Rs1,520cr across segments The company has secured new orders worth Rs1,520cr across its various businesses: Urban Transport securing an order of Rs964cr for the construction of elevated viaduct along with 8 stations of the Delhi Metro Phase IV project, from Delhi Metro Rail Corporation (DMRC). Transmission & Distribution segment secured 2 orders worth Rs391cr for the construction of 400kV transmission lines in Nepal and the Railway business bagged an order of Rs165cr for construction of Road Over Bridges (ROBs) in Western India. Our comments: The management indicated that the order wins especially from the transportation business would enable the company to strengthen its presence in the urban transport sector whereas the order win in Nepal would consolidate its leadership position in the SAARC T&D market.

Likely Investments To Boost The Highway

Sector

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Page No: 5

Orders For KEC

Rational Use Of Antibiotics

Shift Towards BS6 Norms

COMPANY:

L&T Technology Services bags multi-million-dollar project in Europe The company secured a won a multi-million dollar project from one of the world's top plastics, chemicals and refining manufacturers to deliver the entire spectrum of Engineering, Procurement and Construction Management (EPCM) services for the expansion of the existing site in Europe. As the strategic engineering partner, LTTS will execute the entire project through an EPCM model, from procurement and supply chain management support to safety aspects and efficient design. Our comments: The project expansion will be implemented at the customers’ brownfield plant in Germany over 30 months.

Tata Power to own licence for distribution, retail supply of electricity in Odisha Tata Power emerged as the successful bidder to own the licence for distribution and retail supply of electricity in Odisha's five circles together constituting Central Electricity Supply Utility of Odisha (CESU) and hence the Odisha Electricity Regulatory Commission (OERC) has awarded the LOI to Tata Power Company Ltd for the acquisition of CESU Power Distribution in Odisha. The license is being offered for 25 years initially. The proposed sale of CESU to Tata Power will be through the formation of a SPV entity. Government of Odisha will own 49% equity stake in the proposed SPV and Tata Power will hold 51% equity with their management. The five electrical circles constituting CESU are the areas of Bhubaneswar (Electrical Circle - I and II), Cuttack, Paradip and Dhenkanal. Tata Power’s management indicated that the company hopes to transform Orissa distribution system with 24x7 reliable power and unmatched customer services with extensive social engagement using its existing experience in distribution of electricity in Delhi, Mumbai and Ajmer. Our comments: Tata Power’s focus has been on increasing company's existing footprint in distribution of electricity through Public-Private-Partnerships with discoms. This partnership is in line with the above mentioned strategy of the company. Allahabad Bank receives fresh capital of Rs2,153cr from government The Department of Financial Services has conveyed the sanction for release of the fresh capital infusion fund of Rs2,153cr from the government in the current financial year. This infusion of capital comes ahead of the merger with Indian Bank and would thereby aid the bank in meeting the regulatory requirement to get amalgamated with the bigger peer. The capital infusion is towards contribution of the central government in the preferential allotment of equity shares of the bank during the FY20 as the government's investment. Our comments: This round of capital infusion as intended will enhance the capital base of public sector banks so that they could accelerate lending in a bid to bolster growth.

27 Dec 2019

Page No: 6

LTTS Bags Orders

Power Distribution Acquisition

Capital Infusion For Allahabad Bank

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