Future Ventures acquisiton
The stock of Future Ventures will see some buying activity this week, as the company is acquiring 33.30 per cent stake in KFC Shoemaker for undisclosed sum. Post investment, its operational performance will form part of the consolidated financials of Future Ventures. On approval of ongoing demerger process fashion business of Future Venture India, KFC will be part of the new company Future Lifestyle Fashion. KFC Shoemaker sells footwear and bags under Tresmode and Solvoga Brand. Kishore Biyani is planning to divide the group's businesses into different listed entities. While Future Retail will hold hypermarket and supermarket businesses (Big Bazaar and Food Bazaar), brand and lifestyle businesses such as Central and Brand Factory will converge under Future Fashion.
Banking stocks are likely to be in focus this week ahead of the Reserve Bank of India’s monetary policy review on May 3. It was widely expected that central bank is likely to cut rates by 25 basis points (bps). If the RBI surprises marketmen with higher percentage cut, both bank stocks and bank futures will surge sharply; If the apex bank leaves the rates unchanged, the possibility of which is very low, then Bank Nifty will slip sharply. On the other hand, an expected rate cut of 25 bps will also depress the index, as it had seen a sharp surge in recent times. It may be recalled the Bank Nifty started to slide after the RBI had cut interest rate by 25 bps in January for the first time after nine months.
Bonus issue to buoy Nagarjuna Agrichem
The stock of Nagarjuna Agrichem Ltd will remain in focus this week, as the company decided to issue bonus shares in the ratio of 3:14 only to its public shareholders. The move will help the promoters of Nagarjuna Agrichem to meet minimum public shareholding norm. Currently promoters hold 78.29 per cent stake in the company. All listed private companies should have a minimum public shareholding of 25 per cent by June 30. The record date to identify eligible shareholders will be determined by the share committee /Managing Director of the company, it said. The company, in which institutions have no stake, has about 10,000 individual shareholders controlling 21.71 per cent stake. The company posted a loss of Rs 3.96 crore for the quarter ended December 31, 2012 on a revenue of Rs 125.20 crore.