PVR and Cinemax will remain in focus this week at the bourses as the open offer for the latter begins on February 4. PVR Cinemas, which acquired 69.27 per cent stake in Cinemax India last year through its wholly owned subsidiary Cine Hospitality Private Ltd, is making an open offer for another 26 per cent stake at Rs 203.65 a share.

Prominent investors in Cinemax India include ICICI Prudential Life Insurance Company (3.47 per cent)and Mavi Investment Fund Ltd (1.2 per cent). The open offer to Cinemax shareholders will remain open till February 15. About 23,600 small shareholders currently hold 10.16 per cent stake in the company.

Road rough for auto majors

Automobile majors, particularly Tata Motors and Maruti Suzuki, are likely to remain under pressure as they posted dismal sales numbers. Maruti Suzuki recorded its first drop in sales in five months despite domestic sales growing at a marginal pace. However, exports took a heavy toll on its performance. Tata Motors reported more than a 50 per cent decline in sales at 15,209 units against 34,669 units in January 2012. However, Mahindra & Mahindra posted a 11 per cent growth in January sales. Sales figures of heavy vehicle majors of Ashok Leyland and Eicher Motors and two-wheeler majors such as Hero MotoCorp and TVS Motor will be out of this week. Meanwhile, another two-wheeler major Bajaj Auto reported its highest ever January sales of 3.47 lakh vehichles, that is 3 per cent higher than a year-ago January sales figures.

Disinvestment to keep NTPC in focus

NTPC may remain in the limelight at the bourses, as the Government plans to divest 9.5 per cent stake in the power major. After the grand success of Oil India's offer-for-sale, the Centre is likely to usher in the stake sale process of NTPC to meet its disinvestment target of Rs 30,000 crore in the current fiscal. It is widely expected that the Government would in the second week of this month clear the sale of about 78.33 crore shares. The sale is expected to add about Rs 13,100 crore to the Government kitty. Like Oil India, the divestment in NTPC will also be through the offer-for-sale route. The Centre currently holds 84.50 per cent stake in NTPC. Post disinvestment, the Government stake would come down to 75 per cent.

badrinarayanan.ks@thehindu.co.in

(This article was published on February 3, 2013)
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