Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Stocks

Monthly Summary: Deal Flow for the month of January 2016

Here is the “Deal Flow (Summary of Bulk & Block Deals)” for the month of January, 2016 (>10 Crore).

 Deal_Flow_January_2016

Grindwell Norton

Manufacturer of Abrasives (Bonded, Coated, Non-Woven, Superabrasives and Thin Wheels) and Silicon Carbide. It also manufactures and markets High Performance Refractories and Performance Plastics products.

Meheru Soarab Mehta sold 300,000 shares or 0.54% at an avg. price of Rs. 745/- per share thereby valuing the deal at Rs. 2235 lakhs.

Along with this stake purchase, UTI Mutual Fund purchased an additional 32,519 shares or 0.06% at an avg. price of Rs. 745/- per share.


Cox & Kings

Established Travel Company in the world. The principal services offered by the company are: Destination Management, Outbound Tourism, Business Travel, Incentive & Conference Solutions, Domestic Holidays, NRI, Trade Fairs, Foreign Exchange, and Insurance

Janus Investment Fund sold 1,280,467 shares or % at an avg. price of Rs. 244.95/- there valuing the deal at Rs. 3137 lakhs.

As of September, 2015 the fund held 4,104,744 shares or 4.41%. With this sale their stake is now reduced to 2,824,277 shares or 3.03%.


Navin Fluorine International

Manufacturers of speciality fluoro chemicals. Belongs to the Arvind Mafatlal Group – one of India’s oldest industrial houses. NFIL has four main strategic business units: Refrigeration Gases, Inorganic Fluorides, Speciality Fluorides and Contract Research & Manufacturing Services (CRAMS).

Atyant Capital India Fund which held 298,088 shares or 3.05% as of September, 2015 sold 120,000 shares or 1.23% to Vanderbilt University thereby valuing the deal at Rs. 2270 lakhs.

With this sale its stake is now reduced to 178,088 shares or 1.82%.


Skipper Limited  – Capital Mind Outlier Stock

Largest Integrated Transmission Tower manufacturing companies with Angle Rolling, Tower, Accessories & Fastener manufacturing and EPC line construction. Skipper is also the largest producer of Plastic Pipes in West Bengal. The company offers a range of pipes and fittings, which are used in different areas such as Plumbing, Sewage, Agriculture and Borewell sectors.

DSP Blackrock purchased a total of 2,599,345 shares or 2.54% at an avg. price of Rs. 160.75/- thereby valuing the deal at Rs. 4178 lakhs. This is the first investment for DSP Blackrock in Skipper Limited (based on the disclosure submitted for the December holdings).

The stock was sold by 2 little known Promoter firms  i.e. Kotiratan Distributors and Regius Suppliers who together sold 1,500,000 shares or 1.46%.

Kotiratan Distributors held 1,250,000 shares or 1.22% as of September, 2015. With this sale its stake is now reduced to 650,000 shares or 0.63%. Holding of Regius Suppliers is not known and hence we do not know the stake dilution.

Manoj Saraogi HUF – (details unavailable) also sold 651,500 shares at an avg. price of Rs. 160.95/-.


Gateway DistriparksCapital Mind Outlier Stock (2 days above Upper BB, MACD Crossover Zero)

GDL was incorporated to conduct the business of General and Bonded Warehousing, handling and clearing of sea borne Exim Cargo in container-ised form at Navi Mumbai.

Gateway Distriparks Limited is the only logistics facilitator in the whole of India with three verticals which are synergic and capable of being interlinked – Container Freight Stations (CFS), Inland Container Depots (ICD) with rail movement of containers to major maritime ports, and Cold Chain Storage and Logistics – Snowman Logistics. GDL’s rail operations are handled by a subsidiary, Gateway Rail Freight Limited (Gateway Rail).

GMO Emerging Domestic Opportunities Fund purchased 838,515 shares or 0.77% at an avg. price of Rs. 343/- per share. This values the deal at Rs. 2,876 lakhs.

Other Investors include (as of September, 2015)ICICI MF, Franklin Templeton MF, Amansa Holdings, L&T MF, Morgan Stanley Investments, Kuwait Investments Authority Fund, LIC of India, Mirae MF, UTI MF and Axis MF.    

Note: Gateway Distriparks’ price has fallen to Rs. 302 since then, a 15% fall since the deal. 

In the news:

Gateway Distriparks has commenced construction of its Logistics Park at Krishnapatnam Port in Andhra Pradesh after receiving all necessary state government approvals. Targeting the trade in the Andhra Pradesh, Telengana and Karnataka region, the Logistics Park will offer comprehensive supply chain solutions through a CFS, general warehousing and reefer/cold storage services, along with transportation facilities. The Company is targeting to commence operations of the first phase of general warehousing and reefer and cold store by September 2016 and the CFS by end of December 2016.


Tech Mahindra

An Indian multinational provider of information technology (IT), networking technology solutions and Business Process Outsourcing (BPO) to the telecommunications industry. It is a specialist in digital transformation, consulting and business re-engineering solutions.

It is a USD 3.9 billion company with 105,200+ professionals across 90 countries, helping over 788 global customers including Fortune 500 companies.

New Perspective Fund which held 11
,300,936 shares or 1.17% via New World Fund as of September, 2015 – sold 5982118 shares or 0.62% to bring down their stake to 5318818 shares or 0.55%.

New Perspective Fund managed by American Funds – an American investment management firm of mutual funds, variable annuities, individual retirement plans, 529 plans and other forms of investments. The company’s investment products focus on its actively managed mutual funds by Capital Research & Management Company, part of the Capital Group Companies, and only offer their products through financial advisers. 

The fund’s primary investment objective is to provide long-term growth of capital. Future income is a secondary objective. Diversifies among blue chip companies in the United States and abroad, emphasizing multinational or global companies and focusing on opportunities generated by changes in global trade patterns and economic and political relationships. The fund invests primarily in common stocks, convertibles, preferred stocks, bonds and cash.

First State Asia Pacific Leaders Fund which holds 14,417,371 shares or 1.50% purchased this additional stake. With this its holding now increases to 20,228,561 or 2.10%. The same firm (First State Investments) also holds 10,475,164 shares or 1.09% via First State Global Emerging Markets Leaders Fund as of September, 2015.

This brings First State Investments total holding via these 2 funds to 30,703,725 shares or 3.19%.

First State Asia Pacific Leaders Fund is a fund maintained by First State Investments (UK) –  a privately owned investment manager. The firm provides its services to pension and profit sharing plans, state and municipal government entities, banking and thrift institutions, investment companies, pooled investment vehicles, and charitable organizations. It manages mutual funds for its clients.


Marico

Consumer goods company providing consumer products and services in the areas of Health and Beauty. The organisation holds a number of brands including Parachute, Saffola, Hair&Care, Nihar, Mediker, Revive, Manjal, Kaya Skin Clinic, Livon, Set Wet, Zatak, Fiancee, HairCode, Eclipse, X-Men, Hercules, Caivil, Code 78 and Black Chic.

Arisaig Partners (Asia) which held 33,278,269 shares or 5.16% via Arisaig India Fund as of September, 2015 – today sold 549,148 shares or 0.09% at an avg. price of Rs. 220/- thereby valuing the deal at Rs. 14960 lakhs. This reduces their stake to 32,729,121 shares or 5.07%.

Arisaig Partners is a privately owned investment manager. The firm manages separate client-focused portfolios. It invests in the public equity markets of Asia (ex-Japan) and Africa. The firm also manages equity funds for its clients. It primarily invests in the stocks of small-cap and mid-cap companies employing fundamental analysis. The firm primarily makes its investments in consumer, distribution, media and service sectors.

This take was purchased by First State Asia Pacific Leaders Fund which was on a buying spree today. Not only did they buy this huge stake of 549,148 shares or 0.09% and some 66,510 shares or 0.01% from the open market, they also made a huge purchase in the following Tech Mahindra stock.

First State Investments (UK) Limited is a privately owned investment manager. The firm provides its services to pension and profit sharing plans, state and municipal government entities, banking and thrift institutions, investment companies, pooled investment vehicles, and charitable organizations. It manages mutual funds for its clients. 

Other Big Investors include Azim Premji, a Big Whale


Sasken Communication Technologies

Sasken Communication Technologies Limited (formerly, Silicon Automation Systems, Inc. (SAS) offers research and development consultancy, wireless software products, software services and network engineering services to semiconductor manufacturers, wireless handset developers, network equipment and test and measurement companies, and service providers globally.

Vanderbilt University purchased 300,000 or 3.49% valuing the deal at Rs. 200 lakhs.

As of 31-Dec-15, only Birla Sun Life New Millennium Fund holds 40,000 shares or 0.23% in Sasken.


Sangam (India)

Engaged in textile sector. The Company manufactures polyester viscose (PV) yarn. It is also present in the synthetic blended fabric and denim segments with brands, such as Sangam Suitings and Sangam Denim. Its other brands include Sangam Yarns and Channel Nine. The Company’s portfolio of products includes PV blended dyed/grey yarn, cotton spun yarn, cotton open end yarn, texturized yarn, knitted fabrics, woven fabric, denim fabric and seamless garment. It offers single ply, double ply, grindle, roving grindle, core spun, slub and other fancy yarns. In addition, the Company has a wind power plant. It has a network of around 100 dealers and around 1,000 retailers across India. The Company’s manufacturing facilities are located in Bhilwara, Rajasthan. The Company is a flagship company of Sangam Group, a business conglomerate having business interests across textiles, steel, infrastructure, power and energy sectors.

GMO Emerging Domestic Opportunities Fund – an open-end fund incorporated in the USA. The Fund invests in equity securities in companies whose prospects are linked to the internal development and growth of the world’s non-developed markets including companies that provide goods and services to emerging market consumers.

GMO stands for Grantham, Mayo, & Van Otterloo. A Boston-based asset management firm, GMO is one of the largest managers of such funds in the world, having more than US $118 billion in assets under management as of March 2015.

GMO purchased 1,960,200 shares or 4.97% at an avg. price of Rs. 275.03/- thereby valuing the deal at Rs. 5,391 lakhs.

Mentor Capital which held 4,947,622 shares or 12.55% as of 29-Dec-15, sold 2,713,935 shares or 6.88% at an avg. price of Rs. 275.25/- thereby valuing the sale at Rs. 7,475 lakhs. The company had earlier sold 550,000 shares during end of December.

Mentor Capital –  formerly known as Pacific Corporate Services Limited and changed its name to Mentor Capital Limited in September 2010. Mentor Capital Limited was incorporated in 1996 and is based in Mumbai, India.

Directors of Mentor Capital Limited are Sanjay Bhai Khushal Bhai Patel, Amit K Dangi and Sanjay Soumitra Singh D
ang.


Check out the below links for detailed analysis:

Deal Flow – 05/01: Ashish Kacholia aka Big Whale tops up Royal Orchids Hotel, UTI Mutual Fund buys Grindwell Norton

Deal Flow – 06/01: Cox & Kings, Cyber Media, Indiabulls Wholesale Services, Indian Card Clothing, McNally Bharat Engineering, Sakuma Exports, Sonata Software & United Breweries

Deal Flow – 08/01: Deutsche Securities sells Ess Dee Aluminium, Sahi Trading sells Good Luck Steel Tubes and Atyant Capital India Fund sells Navin Fluorine International to Vanderbilt University

Deal Flow – 13/01: DSP Blackrock via DSP Blackrock Alternative Investment Fund, via DSP Blackrock MicroCap Fund & via DSP Blackrock Tiger Fund buys a ton of Skipper Limited

Deal Flow – 15/01: GMO Emerging Domestic Opportunities Fund buys the Outlier Gateway Distriparks

Deal Flow – 21/01: Morgan Stanley dumps GATI, First State Asia Pacific Leaders Fund buys Marico from Arisaig India Fund and Tech Mahindra from New Perspective Fund

Deal Flow – 25/01: Copthall Mauritius (subsidiary of J.P.Morgan Chase & Co.) buys KNR Constructions, Atyant Capital & Directors of Kedaara Capital sell Ponni Sugars (Erode) & Sasken Communications to Vanderbilt University and Vistar Financiers buy ECE Industries

Deal Flow – 27/01: GMO Emerging Domestic Opportunities Fund buys Sangam (India) while Mentor Capital sells

divider

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. 

Next Gen Financial Analytics