Market Analysis: Review on Monday, Nov 22

Mumbai, Nov 22: Market started the trading on a strong positive note after witnessing selling-off in last two weeks. Metal, cement, healthcare and select financial companies' shares were on buyers' radar.

Centrum in talks to buy out Future from two JVs

Centrum Capital, a financial services company, is in talks with Kishore Biyani's Future Capital Holdings (FCH) to buy out the latter's stake in their foreign exchange and wealth management joint ventures (JVs). Future Capital owns 50 percent stake each in FCH Centrum Direct and FCH Centrum Wealth Managers, which it had bought in Mar 2008 for Rs 100 crore.

Centrum Group is also planning to raise Rs 500 crore in the next two to three months to expand its retail financial services and non-banking financial service businesses.

The Mumbai-based group aims to raise this amount through qualified institutional placement or a private investment in public equity method in Centrum Capital or a private equity deal in Centrum Financial Services.
Centrum's retail financial services business includes foreign exchange, wealth management & retail broking, non-banking finance and international business. The group's plan is to increase its distribution presence from 45 cities at present to 100 cities in the next three years.

Emami eyes one more buy in Africa

Emami, maker of the Fair & Handsome and Boroplus cream brands, is in talks to acquire a personal care company in Africa. The deal size and name of the firm could not be ascertained. If it fructifies, this will be the second acquisition for Emami in Africa in the current financial year.

In Jun 2010, Emami acquired the manufacturing facility of a personal care company in Egypt for Rs 25 crore. The current acquisition, in contrast, will be a brand acquisition.

The board has approved the investment plans of Rs 5000 crore in India and abroad in personal care and healthcare. The board approved to raise Rs 2000 crore long term debts for funding the acquisition.

The Company is in talks with two-three companies in the domestic market place for possible acquisition. Internationaly it is looking African and European markets for acquisition.

(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)