The News International Team
INOX Leisure board is meeting on September 25 to consider and approve the proposed merger with Satyam Cineplexes, a wholly-owned subsidiary of the company.
In an interview to CNBC-TV18, Deepak Asher, President and Director of INOX Leisure, said the merger was on the cards. “We acquired Satyam a month ago and since it’s a 100 percent subsidiary of INOX Leisure, we thought it would make sense to merge the entity with us so that we have combined benefits of the revenue.”
The acquisition of Satyam Cineplex has strengthened Inox Leisure’s presence in North India, where PVR is a dominant player.
Since Satyam is a 100 percent subsidiary, there won’t be any additional share issue, Asher said, adding that the move will lead to improved revenues and bottomline. He said that post-deal, the company would be able to negotiate better with supply chain.
10:20am Market Expert
Traditionally, the second half of the year has always been better for the markets than the first half. But this year, Sanju Verma, CEO, Violet Arc Global Managers expects September and October to be months of consolidation for the Indian market. She says the market most likely will continue its upmove from November.
She says perhaps the government should not be too worried about the bypolls and it should see it as losing a few battles, if it comes to that, to win the war and it has already won the war, considering the NDA won with an absolute majority in the Lok Sabha elections for the first time in three decades. She expects the government to table a few good bills during the winter session, including GST.
According to Verma, if there is one thing that can derail the equity markets, it is the geopolitical tensions.
10:00am Equity benchmarks rebounded smartly with the Sensex rising 210.31 points to 26841.60 and the Nifty advancing 65.15 points to 8040.65 supported by broadbased rally.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining 1 percent and 1.8 percent, respectively. About four shares advanced for every share declining on the Bombay Stock Exchange.
Shares of Reliance Industries, ITC, HDFC, Larsen and Toubro, Sun Pharma, ONGC, Hero Motocorp, Dr Reddy’s Labs, Wipro and Maruti Suzuki rallied 1-2 percent followed by ITC, ICICI Bank and SBI with 0.8 percent gain.
However, Infosys (down 1.3 percent), Mahindra and Mahindra (down 0.4 percent) and Hindustan Unilever (down 0.25 percent) underperformed.
The market priced in FOMC meet outcome, which was on expected lines, say experts.
Michael Gapen, Barclays says the September FOMC decision was in-line with expectation. “That said, Chair Yellen stated clearly that rates could go higher sooner if economic performance results in a faster convergence towards the committee’s objectives than currently expected,” he adds.