Shares of Suven Life Sciences gained as much as 6 per cent in the intraday trade on Tuesday after the company informed BSE that it has been granted patent by Australia, China, Europe, South Korea and the US (Photo: Reuters)

Shares of Suven Life Sciences gained as much as 6 per cent in the intraday trade on Tuesday after the company informed BSE that it has been granted patent by Australia, China, Europe, South Korea and the US for a drug used in the treatment of neuro-degenerative diseases.

At 12.35 pm, Suven Life Sciences shares were trading 4.45 per cent up at Rs 291.30. The scrip opened at Rs 280.70 and had touched a high and low of Rs 295.90 and Rs 278.90, respectively, in trade so far. Sensex was down 0.16 per cent at 26,861.20.

The patents are valid until 2031, 2030, 2031, 2030 and 2031, respectively, Suven Life Sciences said in a BSE filing. Suven Life CEO Venkat Jasti said: “We are very pleased by the grant of these patents to Suven for our pipeline of molecules in CNS arena that are being developed for cognitive disorders with high unmet medical need with huge market potential globally.”

With these new patents, Suven has a total of 22 granted patents from Australia, 19 from China, 17 from Europe, 17 from South Korea and 23 from the US.

For the quarter ended June 2015, the company posted net profit of Rs 20.23 crore, down 41.76 per cent, against Rs 34.74 crore in the corresponding quarter a year ago.

In the past one year, the share price of Suven Life Sciences jumped 46.48 per cent to Rs 278.90 on October 12. Sensex gained 1.97 per cent during the same period.

Suven Life Science is a biopharmaceutical company focused on discovering, developing and commercializing novel pharmaceutical products, which are first in class or best in class CNS therapies through the use of GPCR targets.

In the biggest ever FDI in Indian mutual fund industry, Japanese giant Nippon Life today acquired 14 per cent additional stake in leading fund house Reliance Capital Asset Management Company for Rs 1,196 crore, hiking its stake to 49 per cent. (Photo: PTI)

In the biggest ever FDI in Indian mutual fund industry, Japanese giant Nippon Life today acquired 14 per cent additional stake in leading fund house Reliance Capital Asset Management Company for Rs 1,196 crore, hiking its stake to 49 per cent.

This pegs the valuation of RCAM, which runs Reliance Mutual Fund and is part of Anil Ambani led conglomerate Reliance Group’s financial services arm Reliance Capital, at Rs 8,542 crore or USD 1.3 billion.

Nippon Life Insurance (NLI), which holds 35 per cent stake in RCAM at present, today signed definitive agreements to increase its stake to 49 per cent in the Reliance Group company, RCAM said in a statement.

The Boards of Directors of both NLI and RCAM have approved the increase in stake by the Japanese partner.

“Both Reliance Capital and Nippon Life Insurance have enjoyed an extraordinary relationship in the last few years and we see this mutual respect and commitment growing stronger with time. Together we are determined to grow our businesses multi-fold and have stronger footprint in India and abroad,” said Ambani, the Chairman of Reliance Group.

The Japanese company will invest an aggregate value of Rs 1,196 crore (USD 184 million) to acquire an additional 14 per cent stake in RCAM, in tranches, to reach a 49 per cent stake.

The transaction pegs RCAM’s valuation at Rs 8,542 crore (USD 1.3 billion), the highest valuation till date for any asset management company in the country, the statement claimed.

“We believe this investment will further strengthen the ties of both companies, achieve perpetual growth and contribute to further economic development of India and Japan,” NLI President Yoshinobu Tsutsui said.

Post regulatory approvals, Nippon Life Insurance would become the co-sponsor in Reliance Capital Asset Management.

In line with the new shareholding structure, the name of the company will also be changed from Reliance Capital Asset Management to Reliance Nippon Life Asset Management.

Nippon Life had acquired 26 per cent stake in RCAM at an aggregate value of Rs 1,450 crore (USD 240 million) in 2012. The transaction pegged the total valuation of RCAM at approximately Rs 5,600 crore (USD 920 million).

Subsequently, the Japanese company increased its stake by 9 per cent, to 35 per cent, in February this year at an aggregate value of Rs 657 crore (USD 108 million) that pegged the valuation of RCAM at Rs 7,300 crore (USD 1.2 billion).

Reliance Capital Asset Management is the largest asset manager in India managing Rs 2,43,162 crore (USD 38.3 billion) as on June 30, 2015, across mutual funds, pension funds, managed accounts and offshore funds.

Nippon Life Insurance manages over USD 520 billion (Rs 33.8 lakh crore) in assets – amongst the largest total assets in the world for any life insurer.

TCS shares will be in focus as the company will declare its earnings for the second quarter on Tuesday. (Photo: PTI)

The BSE Sensex and NSE Nifty opened in red on Tuesday tracking weakness in Asian markets. At 9.45 am, the S&P BSE Sensex was down 105 points or 0.39 per cent at 26,798. The 50-unit CNX Nifty was down 25.95 points or 0.32 per cent at 8,117.65.

Below are some stocks that are in focus today:

Hero MotoCorp: Hero MotoCorp after market hours on Monday announced that the company has launched the New Splendor PRO, the flagship bike of the iconic Splendor franchise, with youthful new design and bold styling. Attractively priced at Rs 46,850 ex-showroom Delhi, the new Splendor PRO will go on sale at dealerships across the country, from October 13, the first day of the auspicious Navratra, which marks the beginning of the festive season. Hero MotoCorp also said that priced at Rs 49,500 ex-showroom Delhi, the retail sales of Hero’s new scooter Maestro Edge, the first of the products developed on Hero’s own in-house technology will also commence from Tuesday.

Lanco Infratech: Lanco Infratech on Monday post market hours informed BSE that it has pre-closed its outstanding term loan with YES Bank to the extent of Rs 205.42 crore by obtaining lower interest rate term loan from another bank. The term loan was taken for a couple of Solar Power Projects, which are operating well and the cash flow from the Solar Power projects, are healthy. Other term loans of Rs 61.04 crore from Yes Bank for other Solar Power Projects are continuing.

Tata Consultancy Services (TCS): The IT major will be in focus as the company will declare its earnings for the second quarter on Tuesday.

Cox & Kings: The Cox & Kings Group has acquired 100 per cent of the issued and outstanding shares of Late Rooms (UK) (Late Rooms) for GBP 8.5 million. The acquisition fits the group’s strategic intent to expand its global online and B2C leisure proposition. LateRooms is a profitable, leading online hotel booking specialist in the UK. Its extensive offering encompasses a full range of accommodation options with over 54,800 properties globally, which can be booked up to a year in advance. LateRooms operates a Single Web Platform, which optimizes the website for mobile device usage.

DB Corp: DB Corp on Monday announced that it has acquired 14 frequencies in the Phase III auctions. Out of the 14, 9 frequencies have been acquired in Maharashtra, where MY FM is poised to become the biggest FM player (excluding Mumbai and Pune) and has created a strong complementary local ad medium to Divya Marathi.

Shilpi Cable Technologies: Shilpi Cable Technologies announced after market hours on Monday, that a meeting of the board of directors of the company will be held on Tuesday (October 13), inter-alia, to consider and approve the preferential allotment of 1.5 crore convertible warrants to Shilpi Cables, a promoter group company at an exercise price of Rs 60 each.

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Tuesday tracking SGX Nifty and Asian markets. (Photo: PTI)

The BSE Sensex and NSE Nifty are likely to open flat with negative bias on Tuesday tracking SGX Nifty and Asian markets.

At 8.25 am (IST), SGX Nifty was down 5.50 points at 8,145.50.

Retail inflation also rose to 4.41 per cent in September due to costlier food items in general and beverages and pulses in particular. The Consumer Price Index (CPI) based inflation in August stood at 3.74 per cent on cheaper vegetables, fruits and protein rich items, government data showed on Monday.

Asian shares stepped back from two-month highs on profit-taking on Tuesday and oil prices regrouped after Monday’s big fall, while the dollar was on the defensive as expectations of an imminent US rate hike receded.

The biggest focus in Asia on Tuesday is China’s September trade data later in the day, which is expected to show further weakness in the world’s second largest economy.

Hang Seng, Nikkei and Shanghai were down 0.66 per cent, 0.93 per cent and 0.84 per cent, respectively.

Back home, Sensex and Nifty slid 0.65 per cent and 0.56 per cent at 26,904.11 and 8,143.60. Foreign portfolio investors (FPIs) bought shares worth a net Rs 317.56 crore on Monday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.07 crore, as per provisional data.

IT major TCS will announce its second quarter earnings on Tuesday.

(With inputs from agencies)

Retain ‘hold’ on Gas Authority of India (GAIL) but lower our target price to R330 (earlier R385) as we adjust for lower oil prices and marginally lower gas volume. We continue to value GAIL on a sum-of-the-parts basis. We value the transmission segment at an 8x EV/ebitda, in line with global peers, and the LPG segment at 6x, which is a mid-cycle multiple, in line with peers. We value investments at a holding company discount of 20% to market prices.

GAIL’s business suffering due to low oil price. GAIL has four main businesses, three of which depend directly on the price of oil. A low oil price therefore is not good for company’s profitability. Note that GAIL has doubled its gas cracker capacity.

We have cut our estimates of the profitability of the LPG and Petrochemical divisions to factor in our reduced oil price assumptions of $55.4 per barrel for CY16e, $60 per barrel for CY17e, $70 per barrel for CY18e, and $80 per barrel for CY19e (versus $62.5 per barrel, $75 per barrel, $90 per barrel and $95 per barrel previously), in line with HSBC’s house view.

We have also lowered our FY16e, FY17e and FY18e gas transmission volume assumptions to 91, 97, and 110 mmscmd, respectively (from 97, 107, and 117). Another overhang is the ongoing dispute with Qatar on take-or-pay obligations due to lower offtake of term volume.