MDL-Pipavav Shipyard JV for making warships put on hold

"The issue needs to be fully examined and settled before any forward movement takes place on this front," defence minister AK Antony said while addressing a meeting of the consultative committee attached to the ministry

New Delhi: In wake of complaints by private shipyards against a tie-up between Mazagon Dockyards and Pipavav Shipyard for building warships, defence minister AK Antony today put on hold a joint venture (JV) between the two entities, reports PTI.

The ministry has put on hold the JV till the time the government comes up with a new policy, a defence ministry spokesperson said here.

"The issue needs to be fully examined and settled before any forward movement takes place on this front," Mr Antony said while addressing a meeting of the consultative committee attached to the defence ministry here.

After MDL and Pipavav announced their JV, two other bidders, ABG Shipyard and Larsen and Toubro (L&T) questioned the selection process.

Both the companies, in their separate letters to MDL, said they have not been given a chance to respond to MDL's proposal to become the joint venture partner, despite making presentations to the defence PSU on 23rd August and submitting their expression of interest (EoI).

Observing that the JV should not be formed on nomination basis, the defence minister said they should compete for contracts.

Stressing on complete transparency in the procedure, Mr Antony said "we are treading on a new path and we would like to ensure that transparency is maintained at all levels".

Several members of Parliament attended the meeting including Naveen Jindal, Shivaji Patil and Harsh Vardhan.

Defence secretary Shashikant Sharma, secretary defence production Shekhar Aggarwal, Navy vice chief vice admiral R K Dhowan, DG Coast Guard vice admiral Anil Chopra, and other officials were also present in the meeting.

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Share prices may head higher: Monday Closing Report

If today’s low holds, the Nifty may go up to 5,000

Extending its losses for the fourth consecutive day, the market closed lower on worries of the debt crisis plaguing Europe and its impact on the world economy. The Nifty's intra-day low of 4,759 today went below its second support of 4,790. The index closed 32 points lower at 4,835. The index's volatile move was on a low volume of shares of 48.89 crore on the National Stock Exchange (NSE), which was the lowest in the past 16 trading days (including today). If the Nifty holds itself above today's low, we may see gains up to the level of 5,000.

The domestic market opened marginally in the positive but failed to maintain the lead and slipped lower soon after the opening bell. The Nifty opened 11 points up at 4,879 and the Sensex added 47 points at 16,209. While the opening figure of the Sensex was its intraday high, the Nifty rose to the day's high minutes later, with the index touching 4,880.

However, the decline in the Asian markets in morning trade on fears of a Greece default weighed on the domestic market, pushing it lower in initial trade. Offloading by institutional investors resulted in the markets taking a southward journey in subsequent trade.

The benchmarks touched the low point of the day in late-morning trade with the Nifty falling to 4,759 and the Sensex sliding to 15,801. Buying in IT and banking stocks helped the market bounce back and touch Friday's closing figure, but sellers became active once again to push the benchmarks down.

The market continued to drift lower and closed in the red for the fourth day in a row. At the end of trade, the Nifty was 32 points down at 4,835 and the Sensex settled at 16,051, a loss of 111 points.

The advance-decline ratio on the National Stock Exchange (NSE) was 369:1297.

The broader indices underperformed the Sensex today with the BSE Mid-cap index falling 1.47% and the BSE Small-cap index declining 1.67%.

BSE TECk (up 0.50%) and BSE IT (up 0.42%) were settled higher in the sectoral space. On the other hand, BSE Consumer Durables (down 4.95%), BSE Metal (down 2.87%), BSE PSU (down 1.77%), BSE Oil & Gas (down 1.56%) and BSE Capital Goods (down 1.39%) ended at the bottom of the index.

The top gainers on the Sensex were Jaiprakash Associates (up 2.37%), Bharti Airtel (up 1.48%), ICICI Bank (up 1.40%), DLF (up 1.21%) and Cipla (up 0.97%). The laggards were led by Coal India (down 5.46%), Sterlite Industries (down 4.40%), Hindalco Industries (down 3.80%), Hero MotoCorp (down 2.84%) and Jindal Steel (down 2.61%).

The top performers on the Nifty were DLF (up 3.52%), JP Associates (up 3.34%), Ranbaxy (up 2.18%), Ambuja Cement (up 1.80%) and Bharti Airtel (up 1.33%).  The major losers on the index were Tata Power (down 5.82%), Sterlite Ind (down 4.57%), Sesa Goa (down 4.37%), Reliance Capital (down 4.20%) and Hindalco Ind (down 4.07%).

Markets in Asia settled in the negative as announcements from leaders of the Group of Twenty (G-20) nations fell short of expectations. German deputy finance minister Jorg Asmussen stated in Washington on Sunday that additional funding for Greece was unlikely to be granted at a 3rd October meeting.

The Shanghai Composite fell 1.64%; the Hang Seng declined 1.48%; the Jakarta Composite tumbled 3.22%; the KLSE Composite tanked 2.50%; the Nikkei 225 sank 2.17%; the Straits Times lost 1.65%; the Seoul Composite slipped 2.64% and the Taiwan Weighted closed 2.40% lower.

Back home, foreign institutional investors were net sellers of stocks worth Rs1,279.61 crore on Friday. On the other hand, domestic institutional investors were net buyers of stocks worth Rs765.38 crore.

PG Electroplast, which made its debut on the bourses today, closed trade on the NSE at Rs459.50, a huge gain of 118.60% against its issue price of Rs210. The stock opened at Rs 215 and traded in the range of Rs176-Rs84.40. The company's initial public offering (IPO), which was open between 7th and 12th September, was subscribed 1.34 times.

Real estate major Parsvnath Developers on Monday said it has received shareholders' approval to raise up to Rs2,000 crore through the issue of securities to qualified institutional buyers. The company is expected to use the proceeds to reduce its debts to Rs500-Rs700 crore by the end of the fiscal, from the level of Rs1,200 crore as on 30 June 2011. The stock declined 2.44% to end at Rs66 on the NSE.

Eveready Industries India is planning to sell around 60-70 acre of land in Delhi, Hyderabad and Bangalore to pay debt of about Rs200 crore. The company has approached well-known builders, but added that it was in no hurry to sell the land and is looking at clinching a deal in the next 12-15 months. The stock tumbled 4.13% to close at Rs36 on the NSE.

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Dr Reddy’s, JB Chem scrap Rs137 crore deal for prescription biz

The transaction would have helped Dr Reddy's to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into $256 million cold and cough market in Russia and CIS markets

New Delhi: Drug major Dr Reddy's Laboratories today said its Rs137.5 crore deal to acquire pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals (JBCPL) in Russia and other CIS countries has been mutually terminated by both the firms, reports PTI.

A source in the company, however, said the deal was called off as "both parties could not come to terms on the operationalisation" of their agreement.

In a statement Dr Reddy's Laboratories said: "...the proposed business deal to acquire the pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually terminated in the overall business interest of both parties."

In a filing to the BSE, JBCPL said both the parties have agreed with immediate effect not to pursue the proposed deal in their overall business interests.

"Accordingly, the proposed deal has been mutually called off," JBCPL said.

Consequently, both JBCPL and Dr Reddy's Russian subsidiaries have also called off their proposed transaction in relation to sale of former's prescription products' inventory to latter, it added.

The two firms had inked a pact on 22 July 2011 with DRL agreeing to acquire JBCPL's prescription products business in Russia and CIS countries for Rs137.5 crore.

The transaction would have helped Dr Reddy's to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into $256 million cold and cough market in Russia and CIS markets.

The deal had also envisaged JBCPL supplying finished products for the acquired business.

Post the termination, JBCPL said it will continue to pursue its Russia-CS prescription products business aggressively.

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