BGR, Dabur, Dhanlaxmi, Godrej, Reliance: India Equity Preview

The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are as of the last close.

The Bombay Stock Exchange Sensitive Index, or Sensex, rose 308.23, or 1.7 percent, to 18,518.81. The S&P CNX Nifty Index on the National Stock Exchange gained 1.7 percent to 5,551.45. The BSE 200 Index climbed 1.6 percent to 2,285.46. SGX S&P CNX Nifty Index futures for May delivery advanced 0.7 percent to 5,585.0 as of 10:55 a.m. in Singapore.

Bhushan Steel Ltd. (BHUS) : The steel producer plans to raise as much as $1 billion from the sale of securities, the company said in a statement to the Bombay Stock Exchange on May 7. The money may be raised between October and March to fund expansion, Finance Director Nittin Johari said in a telephone interview. The shares fell 0.2 percent to 472.35 rupees.

BGR Energy Systems Ltd. (BGRL) : The maker of equipment for power, oil and petrochemical industries was cut to “sell” from “buy” at Citigroup Inc., which cited the prospects for sales given the “extremely muted inflows” and “poor” industry outlook. The brokerage reduced its share-price estimate to 470 rupees from 727 rupees, analysts led by Venkatesh Balasubramaniam wrote in a report. The shares added 0.7 percent to 511.55 rupees.

Cairn India Ltd. (CAIR) : Indian Prime Minister Manmohan Singh has requested a review of Vedanta Resources Plc’s performance in the mining and power industries as it considers whether to approve its purchase of Cairn, which operates the nation’s biggest onshore oilfield, The Times reported. The shares fell 3 percent to 336.1 rupees.

Dabur India Ltd. (DABUR) : The maker of packaged honey, traditional medicine and hair oil is willing to spend as much as 30 billion rupees ($670 million) on buying companies and brands, the Mint newspaper reported, citing director P.D. Narang. Dabur has shortlisted 15 brands and companies and initiated talks with most of them, the report said. The shares rose 1.7 percent to 102.1 rupees.

Dhanlaxmi Bank Ltd. (DHLBK) : Nandan Nilekani, co-founder and former chief executive officer of Infosys Technologies Ltd., bought 1.17 percent stake in the lender, acquiring 993,827 shares from other investors, the Financial Express reported, citing filings to stock exchanges by the Indian lender. The shares rose 1 percent to 116.85 rupees.

Godrej Properties Ltd. (GPL) : The developer’s profit in the quarter ended March rose 4 percent to 599.9 million rupees, according to a statement to the Bombay Stock Exchange on May 7. Sales more than doubled to 3.18 billion rupees, according to the statement. The shares rose 0.1 percent to 669.85 rupees.

Hindustan Unilever Ltd. (HUVR) : Managers of the nation’s biggest household products maker have been given their first performance-based bonus in two years, the Economic Times newspaper reported, without saying from where it got the information. The shares advanced 3.1 percent to 275.9 rupees.

Jyothy Laboratories Ltd. (JYL) : The consumer products maker offered to acquire 23.3 million shares of Henkel India Ltd. (HNKL IN) through an open offer at 41.2 rupees a share, according to an advertisement in the Economic Times newspaper today. Jyothy’s offer for Henkel India will start June 24, the advertisement showed. Jyothy fell 0.6 percent to 221.95 rupees. Henkel India surged 4.9 percent to 35.2 rupees.

Kesoram Industries Ltd. (KSI) : Vasavadatta Cement, a unit of the manufacturer of tires and cement, is planning to increase cement production capacity by two million tons a year to eight million tons at its Sedam plant in southern Karnataka state, the Hindu Business Line newspaper reported, citing the unit’s senior president K.C. Jain. The shares climbed 2.6 percent to 198.6 rupees.

Maharashtra Seamless Ltd. (MHS) : The maker of carbon and alloy steel seamless pipes was raised to “overweight” from “neutral” at HSBC Holdings Plc by equity analyst Puneet Gulati. The target price is 450 rupees per share. The stock rose 0.1 percent to 358.85 rupees.

Power Finance Corp. (POWF IN): India’s biggest lender to utilities will sell as much as 45.8 billion rupees ($1 billion) of shares, two government officials with direct knowledge of the plan said. The New Delhi-based company will sell the shares for 193 rupees to 203 rupees apiece, the officials said, declining to be identified before an official announcement. The sale of 229.55 million shares runs from May 10 to May 13, according to a document filed with the Securities and Exchange Board of India. Power Finance shares fell 0.3 percent to 214.45 rupees.

Power Grid Corp. of India Ltd. (PWGR IN): The nation’s biggest transmission company may finalize a contract for leasing towers for telecommunications use by the end of May, the Business Standard reported, citing an official it didn’t identify. The shares advanced 1.2 percent to 103.1 rupees.

Reliance Industries Ltd. (RIL) : Fuel exports by India’s largest publicly traded company remained near the highest this year in April as demand for gasoline rose. The Mumbai-based company, which operates the world’s largest refining complex, shipped at least 2 million metric tons of fuel-products from its Jamnagar facility last month, little changed from March, according to ship-tracking data compiled by Bloomberg and vessel fixtures from Clarkson Research Services Ltd. March shipments were the highest so far this year. The share gained 0.5 percent to 955.05 rupees.

SKS Microfinance Ltd. (SKSM) : India’s biggest microlender reported a wider-than-expected loss in the fourth quarter as it raised provisioning for bad debts. The company had a loss of 697.7 million rupees in the three months to March 31, compared with a profit of 628.9 million rupees in the same period a year earlier.

Separately, the microlender was cut to “underperform” from “outperform” at Credit Suisse Group AG, which cited the company’s “weak” fourth-quarter results and the prospect of losses for the 2012 and 2013 financial years. The brokerage reduced its share-price estimate to 323 rupees from 1,575 rupees, analysts led by Ashish Gupta wrote in a report. The shares plunged 20 percent to 331.80 rupees.

Tata Steel Ltd. (TATA) : Tata Steel Europe aims to double its profit margin by concentrating output on higher-value products and steel more closely tailored to customers’ needs, Chief Executive officer Karl-Ulrich Koehler told the Financial Times. Tata Steel is India’s biggest producer of the alloy. The stock rose 2 percent to 594.5 rupees.

To contact the reporter on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net

To contact the editor responsible for this story: Reinie Booysen at rbooysen@bloomberg.net

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