Market Analysis: Review on Monday, Nov 29

Mumbai, Nov 26: At 12.50 hrs, BSE Sensex was 19,307.46 up 170.85 points and NSE Nifty was 5,787.45 up 35.50 points.

Philips leads race to take majority pie in Halonix

Philips India has emerged as the front runner to acquire a controlling stake in Halonix (formerly Phoneix Lamps) from private equity fund Actis for around Rs 300 crore as a part of a two- step transaction. Halonix makes lights for the auto industry while its subsidiary Halonix Technologies makes lights for homes and offices.

As per Company sources, the deal was being structured that the listed entity with the profitable auto lighting business was divested, while the loss-making general lighting business remained privately held Actis.

Actis owns 66 percent of Halonix and if the sale goes through, Philips will have to make an open offer to buy 20% additional shares from other shareholders. The value of the Company is being pegged at Rs 400-450 crore which is more than its present market capitalization of only Rs 313 crore.

Zydus Cadila plans to roll out more flu vaccines

Zydus Cadila is planning to further expand its flu vaccine kitty. After becoming India"s first domestic Company to launch H1N1 (Swine Flu) vaccine, is now planning to an entire gamut of seasonal flu vaccine to its kitty, where it is expanding its vaccine making capabilities. In 2008, Zydus Cadila"s Rabies vaccine became the only second vaccine to be accredited by World Health Organization (WHO) after Novartis.

Indian vaccine industry, human as well as animal vaccines registered sales of $524 million in 2009-10. This accounted for about 25 percent of the total BioPharma market, which is valued at $2.1 billion for the same period. PWC estimates that the vaccine industry will continue to drive the growth of the BioPharma segment, growing at a CAGR in the range of 10-13 percent over the next 10 years to reach a size of between $1.4 billion and $1.8 billion by 2020. Globally, the vaccine market is estimated worth $4.2 billion by 2015.

GMR seals deal for sale of InterGen stake

GMR Infrastructure sealed the deal to sell its 50% stake in InterGen to Chinese electricity company Huaneng Power for $1.23 billion. The transaction is expected to close in the first half of 2011. As per the Management sources, the divestment of stake in InterGen is in line with the strategy to focus on its Indian investments.

China Huaneng has paid $1.2 billion for the stake, which is $100 million above the price paid by GMR when it bought the stake from an AIG unit in 2008. The sell off will cover GMR"s cost of acquisition. InterGen"s overseas holding company has $1 billion in debt. And the sale will release $225 million equity that can be used for its projects.

The proposed acquisition by China Huaneng will allow it to expand globally. China Huaneneg is a state owned power generating enterprise. With InterGen stake buy, China Huaneng will control part of 12 power plants operating in UK, Netherlands, Australia, Mexico and Philippines.

HDFC chalks out a major foray into education

Housing development Finance Corporation (HDFC), India"s largest housing finance Company, will make a big-bang entry into education. It will look at small towns to either set up schools or take over defunct boarding schools. The opportunity is huge, as the need for quality education will only increase. The entry into education will be made through a separate subsidiary.

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