Metal and Mining Newsletter - December 26 to 30, 2016

India Infoline News Service | Mumbai | December 30, 2016 16:50 IST

This week, Welspun Enterprises sold its stake in Welspun Energy, Ratnamani Metals & Tubes bagged two new orders worth Rs 136 crore. IIFL presents a weekly snapshot of all the major happenings in the Hotel and Tourism industry.

Top Stories
 
Welspun Enterprises sells its stake in Welspun Energy
Welspun Enterprises Ltd, formerly Welspun Projects Ltd, part of the US$ 2.3 billion Welspun Group, announced its plans to divest its stake in Welspun Energy. Post sale of its renewable business, WEL’s 15.49% minority stake in Welspun Energy does not contribute to the consolidated results of the Company. In order to unlock value for the Company, the Board of WEL authorised the monetisation of this stake, subject to shareholders’ approval. As against its investment of Rs 911 million, the stake is proposed to be sold to Welshop Trading Pvt Ltd, for a consideration of approximately Rs 2.9 billion plus contingent consideration, thereby implying more than 3x returns to the Company on its investment. Read More
 
Jindal Stainless to issue equity shares worth Rs 250 crore
A meeting of the Board of Directors of Jindal Stainless Limited inter alia approved the issuance of equity shares to the lenders of the company for an aggregate amount of Rs 250 crore on Preferential Basis upon conversion of Funded Interest Term Loan (FITL). It approved the issuance of Preference Shares to the Lenders of the Company for an aggregate amount of Rs 650 crore on Preferential Basis upon conversion of Funded Interest Term Loan I and II. It approved the issuance of Compulsorily Convertible Debentures (CCDs) to Promoter Group of Companies on Preferential Basis as follows: Jindal Stainless (Hisar) Limited for an amount up to Rs 250 crore; Jindal United Steel Limited for an amount up to Rs 120 crore and Jindal Coke Limited for an amount up to Rs 60 crore. Read More
 
Domestic Newsmakers
 
Ratnamani Metals & Tubes bags two new orders worth Rs 136 crore
Ratnamani Metals & Tubes Ltd has informed BSE that the company has bagged two new orders aggregating to 22,000 MT valued at approx. Rs 103 Crore and Rs 33 Crore for supply of Carbon Steel ERW pipes for gas pipe line in India to be completed by June/July 2017 and Oct/Nov 2017 respectively. Read More
 
Welspun Enterprises sells its stake in Welspun Energy
Welspun Enterprises Ltd, formerly Welspun Projects Ltd, part of the US $ 2.3 billion Welspun Group, announced its plans to divest its stake in Welspun Energy. Post sale of its renewable business, WEL’s 15.49% minority stake in Welspun Energy does not contribute to the consolidated results of the company. In order to unlock value for the Company, the Board of WEL authorised the monetisation of this stake, subject to shareholders’ approval. Read More
 
Steel production grows 9%, exports up 60%
The overall steel production grew by 8.8% between April-November, 2016 compared to the same period last year. Steel imports have declined by 38.28%  between April-November, 2016 while exports have increased by 59.96% during the same period, according to government figures. The per capita consumption of total finished steel in the country has risen from 58 kg in 2011-12 to 63 kg in 2015-16, while the crude steel capacity in the country stood at 121.97 million ones in 2015-16 (source: JPC) and the production of crude steel stood at 89.79 mt during the same year. Read More
 
Gravita India increases production capacity of Gravita Metal Inc
Gravita India Limited , the leading recycling company of India and having a global manufacturing presence informed the exchanges about capacity addition in Gravita Metal Inc., a wholly owned Partnership firm of the company. The existing production capacity of 3600 MTPA of Gravita  Metal Inc has been increased to  6000 MTPA w.e.f. 28th December, 2016. The reason behind capacity addition is due to potential raw material availability and rising demand of orders. Gravita Metal Inc is engaged in Manufacturing of Pure Lead and all kinds of Specific Lead Alloys. The firm has incurred an investment of approx. Rs 30 lakh for the above mentioned capacity addition and this investment is made out of internal accruals of the firm. Read More
 
Steel prices in China fall amid volatile trade
The price of  Chinese steel reinforcing bars, commonly used to provide structure and tension support, went down by 2 percent, countering the gains it had made the previous day, amidst concerns over weakening demand in volatile trade. The week witnessed steel prices oscillating on a daily basis against the backdrop of a low turnover given that major international exchanges are shut for the Christmas holidays and the New Year. Iron ore on the Dalian Commodity Exchange at 564.5 yuan a tonne has risen by 0.1 percent. Read More
 
Non-ferrous metal prices are unlikely to increase further: ICRA
International base metal prices are unlikely to increase further, as ICRA believes that the recent rallies have been largely sentiment driven, and positions taken by global commodity funds, without any major change in fundamental demand-supply positions in recent months. Commodity markets are anticipating a boost in public expenditure in the USA, which in turn would lead to a higher demand for base metals. Consequently in the last two months or so, international base metal prices have strengthened significantly. While aluminium and zinc prices quoted at the London Metal Exchange (LME) have strengthened by ~4% and ~8% respectively since September 30, 2016, increase copper prices has been sharper, at ~15%. Read More

 

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