The Adani Ports & SEZ stock is likely to come under pressure this week, as the company is accused of violating environment norms.
A committee set up by the Ministry of Environment and Forests has said there have been instances to circumvent statutory procedures by using different agencies, at the Centre and State, for obtaining clearances for Mundra port project.
The panel has also recommended a fine of Rs 200 crore on the Gujarat-based company for damaging local mangroves and creeks while developing the project and asked the Ministry to cancel the environment clearance to the northern part of the project.
The company, however, said the north port has “not been developed’’ and hence this will not “impact’’ its current operations. The company reported a net profit of Rs 415.4 crore for the December quarter on a revenue of Rs 892.18 crore.
Globalcom deal to keep RCom in focus
The stock of Reliance Communications will remain in focus this week as the company is in advanced stage of negotiations with a consortium of PE funds, including Samena Capital, for the acquisition of Reliance Globalcom.
RCom said that the process of due diligence and completion of definitive documents in relation to the acquisition has already begun.
Reliance Globalcom is a unit of RCom that owns undersea cable firm Flag Telecom. The deal is likely to conclude by May end, the company said.
“At this point, there can be no certainty that this will lead to a transaction. A further announcement will be made in due course, if and when appropriate,’’ RCom statement said.
Reliance Globalcom was previously in talks with Bahrain Telecom, but now clarified that it is no longer in talks with Batelco.
Tribunal booster for Gulf Oil
The stock of Gulf Oil Corporation could see some buying interest this week, as the company received a big relief from the Competition Appellate Tribunal, which has reduced the penalty to just Rs 2.85 crore.
In 2011, the Competition Commission of India had imposed a penalty of Rs 60 crore on Gulf Oil and nine other explosives’ manufacturers as Coal India alleged that these companies were anti-competitive in determining prices.
Gulf Oil has now informed the exchanges that Compat had issued a final order on April 18 reducing the penalty to 10 per cent (Rs 2.89 crore) against the penalty of Rs 28.95 crore imposed by CCI.
The Hinduja Group company reported a turnover of Rs 959.49 crore and a net profit of Rs 62.11 crore for FY’12. For the December quarter, it reported a net profit of Rs 15.04 crore on a turnover of Rs 247.97 crore.