SpiceJet and Jet Airways share prices hogged limelight today, surging as much as 10 per cent, in-line with an positive broader market amid lower crude oil prices and low-cost airline IndiGo’s parent InterGlobe Aviation fixing the price band for its initial share sale.

SpiceJet share price zoomed 9.94 per cent to settle at Rs 47.55 — its 52-week high level — on BSE.

Shares of Jet Airways also surged 8.83 per cent to Rs 417.30 at close of trade.

After a prolonged wait, InterGlobe, which is running the country’s most profitable carrier under the brand IndiGo, will be hitting the market for its little over Rs 3,200-crore IPO on October 27.

The company has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore.

The IPO will be the largest in nearly three years.

IndiGo’s IPO is likely to generate increased interest in the sector.

Meanwhile, Wadia Group-promoted budget carrier GoAir is also planning to go for an initial public offer in the current fiscal.

GoAir is likely to be the second domestic carrier to come out with an IPO this fiscal after rival IndiGo.

Aviation stocks are also attracting huge buying interest amid decline in global crude oil prices.

Lower crude oil prices benefit aviation companies as jet fuel constitutes over 40 per cent of an airline’s operating costs.

IndiGo had increased the pricing on the issue to Rs 700-765 after the promoters decided to divest lesser number of shares. (AP)

Set to hit the capital markets with Rs 3,268 crore IPO next week, InterGlobe Aviation today said it will retire nearly one-third of its total debt of Rs 3,912 crore from the share-sale proceeds.

InterGlobe Aviation is the holding company of IndiGo airline. The company said it will retire Rs 1,166 crore out of its Rs 3,912-crore debt from the IPO proceeds.

Stating that the airline has not a single penny in working capital or non-aircraft purchase related debt, company President Aditya Ghosh said the entire Rs 3,912-crore debt it has is related to aircraft purchases. Out of its nine years of existence, it has been profitable in seven years, he claimed.

“For us the company turning a negative networth of Rs 139 crore is a non-event”, Ghosh said.

It happened on June 30, when the company declared an interim dividend of Rs 1,500 crore to the promoters. Since then the networth has turned positive and it remains so. As of now “we have a cash balance of over Rs 3,500 crore on our books”, he said.

“We had to report that we had negative networth for disclosure purposes as we happened to file our IPO papers with the Sebi on June 30. But let me repeat, that is a non-event as far as IndiGo and InterGlobe are concerned, ” Ghosh said while formally announcing the IPO.

When asked about hefty payouts the promoters have been getting all these while, he said, “As a manager my mandate is to keep my customers happy, my employees happy and also investors/shareholders. I have been doing as a private company and will continue to do so as public company going forward.”

Ghosh said the company will launch its Rs 3,268-crore public issue, the first from the airline sector after the Spicejet IPO, on October 27 which will remain open till October 29. The Rs 10-share has been priced at Rs 700-765.

The public issue includes a share premium consisting of a fresh issue aggregating up to Rs 1,272.2 crore and offer for sale of up to 26,112,000 shares, comprising 3,290,419 shares by InterGlobe Enterprises; 3,006,000 shares by Rahul Bhatia who will retain just 40,000 share post-issue thus practically exiting the airline’s direct holding.

When asked about the public perception about Bhatia, who has been the face of the airline from day one, Ghosh said that even after the issue both the key promoters (Bhatia and Rakesh Gangwal) will hold over 47 per cent each in the holding company, which in turn own the airline.”

IndiGo had increased the pricing on the issue to Rs 700-765 after the promoters decided to divest lesser number of shares. Earlier, the plan was that existing shareholders would sell up to 3.01 crore shares but as per the final offer document, this quantum has been reduced to 2.61 crore shares.

InterGlobe had reported Rs 640.44 crore in net income in the June quarter but its net worth slipped to a negative Rs 139.39 crore as of end June.

“The net worth of our company was Rs 426.22 crore and (-) Rs 139.39 crore as of March 31, 2015 and June 30, 2015, respectively, as per the restated financial statements of our company prepared in accordance with Indian GAAP and restated in accordance with the ICDR Regulations,” it said in the offer document.

Noting that it had a net negative worth at the end of June, InterGlobe said if this financial position continues, it may be “more difficult or expensive to obtain future financing or meet our liquidity needs”.

“Further, there can be no assurance that we will be able to achieve a positive net worth in periods going forward,” the document said.

Net worth is the aggregate of the paid-up share capital, share premium account, reserves and surplus. The figure excludes aggregate of miscellaneous expenditure. A negative net worth implies the company’s liabilities are more than its assets.

In the June quarter, IndiGo posted total revenue of Rs 4,317.19 crore. For the year ended March 2015, the carrier recorded a net profit of Rs 1,295.58 crore on revenues of Rs 14,309.14 crore.

The Gurgaon-based entity is also the largest domestic carrier by market share, having flown over one-third of the total passenger traffic carried by Indian airlines in August.

The other shareholder who will be divesting stake include another equal promoter Rakesh Gangwal divesting 3,759,638 shares, 601,200 by Anil Chanana; 149,900 by Asha Mukherjee; 300,600 by Kunal Chanana; 6,012,000 by Newton Bruce Ashby; 100,200 by Sanjay Kumar; 84,000 by Shakti Swarup Lumba; 2,227,316 by Shobha Gangwal; 1,442,000 Steven Eugene Harfst; 1,503,000 by Paul Carl Schorr, Iv (Nominee of G5 Investments) and 3,635,727 by

The Chinkerpoo Family Trust in which Shobha Gangwal is a trustee & JP Morgan Trust Company of Delaware).

The global coordinators & book running lead managers to the issue are Citigroup India, JP Morgan India and Morgan Stanley India, while the book running lead managers are Barclays, Kotak Mahindra Capital Company and UBS Securities India.

Domestic FMCG companies’ revenues have registered a 21 per cent CAGR over 10 year from fiscal 2005-06 to 2014-15, while their profits have come at a 24 per cent CAGR. (Express Photo)

Homegrown firms in the fast moving consumer goods (FMCG) sector have outpaced many multinational companies in growth and market cap because of better consumer connect, inorganic growth and entry into global markets, says a report.

“Our study of FMCG companies in India over 10 years shows that domestic firms have outstripped many MNCs in growth and market cap. Domestic FMCG companies have, over the years, grown from single-product companies to multi-product, multi-category firms,” said the AnandRathi Institutional Research report.

“Their margins and return ratios have improved. They have used steady cash-flows to invest in products and distribution to drive growth,” it said.

Domestic FMCG companies’ revenues have registered a 21 per cent CAGR over 10 year from fiscal 2005-06 to 2014-15, while their profits have come at a 24 per cent CAGR.

The listed FMCG MNCs have, during that period, registered a lower 13 per cent CAGR in revenue, while their profits have come at a 14 per cent CAGR, it added.

It further said: “Domestic FMCG players have grown their product portfolios, from niche offerings such as chyawanprash to more mainstream offerings such as skincare products and beverages.”

Identifying reasons for better growth reported by domestic FMCG companies, the report said four ‘I’s driving growth for domestic companies.

“Better India-consumer connect, innovation, inorganic growth and international forays have been the prime growth drivers for domestic firms. Barring innovation, most domestic firms have been able to leverage the other three ‘I’s far better than MNCs,” it added.

Report said that in the past 5-10 years domestic FMCG firms’ margins have grown faster than those of MNCs.

“This has been assisted by a better sales mix, scaled-up benefits and greater cost controls. We expect the margin gains to persist, especially for small and midcap FMCG operators, which have yet to gain from the scaled-up benefits,” it added.

HCL Technologies share price slipped as much as 2.72 per cent intraday on Monday on the back of soft Q1 results. (Photo: PTI)

HCL Technologies share price slipped as much as 2.72 per cent intraday on Monday on the back of soft Q1 results. The IT major reported 16.52 per cent fall in its net profit at Rs 1,404.63 crore for the quarter ended September 30, 2015 as compared to Rs 1,682.56 crore for the same quarter in the previous year.

At 11.54 am, the scrip was trading 0.29 per cent up at Rs 844. It opened at Rs 831 and had touched a high and low of Rs 851 and Rs 818.40, respectively, in trade so far. Sensex was up 69.69 points, or 0.26 per cent, at 27,284.29.

HCL Technologies’ total income increased by 4.46 per cent to Rs 4,616.65 crore for the quarter under review from Rs 4,419.48 crore for the corresponding quarter of the previous year.

ICICI Securities in a research note said, “HCL Tech reported soft Q1FY16 quarterly earnings. Dollar revenue growth was in line with our estimates while adjusted EBIT margins were better. Growth in constant currency was driven by the Europe; business, engineering services, and lifesciences, financial services and public services verticals.”

Sarabjit Kour Nangra, VP research, IT, Angel Broking, said, “HCL Tech, posted results just in line with expectations, while EBIT margins came ahead of expectations. On sales front, the company posted a 0.5 per cent sequential growth in dollar terms to US$ 1,545mn V/s US$ 1,547mn expected. On constant currency (CC), the company posted a 1.2 per cent qoq rise in sales. In rupee terms, revenues came in at Rs 10,097 cr against Rs 10,085cr expected, up 3.3 per cent qoq.”

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 1058.20 on 11 March 2015 and a 52 week low of Rs 725.18 on 15 December 2014.

Last one week high and low of the scrip stood at Rs 860.90 and Rs 818.40, respectively. The current market cap of the company is Rs 1,16,021.46 crore.

The promoters holding in the company stood at 60.57 per cent while institutions and non-institutions held 33.32 per cent and 6.12 per cent, respectively.

Infosys share price jumped as much as 1.89 per cent in the morning trade on Monday after the company announced a definitive agreement to acquire Noah Consulting (Photo: Reuters)

Infosys share price jumped as much as 1.89 per cent in the morning trade on Monday after the company announced a definitive agreement to acquire Noah Consulting, LLC, a leading provider of advanced information management consulting services for the oil and gas industry. This acquisition was an all-cash deal, with an aggregate purchase consideration of $70 million.

At 11.18 am, Infosys share price was at Rs 1,112, up 1.67 per cent, against Rs 1,093.75 on Friday. The share price of the global IT major opened at Rs 1,100 and had touched a high and low of Rs 1,114 and Rs 1,100, respectively, in trade so far. Sensex was up 0.21 per cent at 27,270

Noah Consulting helps upstream oil and gas companies, including super majors, independents and oil field service companies plan, architect and deploy information solutions to unlock the value of their oil and gas assets.This acquisition combines Noah’s deep industry knowledge, information strategy planning, data governance and architecture capabilities with Infosys’ ability to provide technology and outsourcing services on a global scale to oil and gas clients.

The transaction is expected to close before the end of the third quarter of FY 2016, subject to customary closing conditions.

Also, Infosys had announced a collaboration with IBM on Friday (post market hours), in which the company will tap Bluemix, IBM’s Cloud platform to rapidly prototype, develop and deploy the next generation of Cloud apps for its global client base.

In the past one year, the share price of Infosys gained 13.18 per cent to Rs 1,093.75 on October 16. Sensex gained 4.67 per cent during the same period.

For the quarter ended September 30, 2015, Infosys posted consolidated net profit of Rs 3,398 crore, up 9.75 per cent, against Rs 3,096 crore in the same quarter quarter a year ago.