Relax, refresh and recharge words on office table with computer, coffee, notepad, smartphone and digital tablet
NIFTY started the day flat at 19,828. After an initial up-move to 19,875 levels, the index fell sharply to the 19,800 support levels and consolidated the rest of the day. Niftyclosed at 19,802, down by 9.85 points or 0.05%.
BANK NIFTY (BNF) started the day flat at 43,452. The index had a calm day following yesterday’s volatility. It consolidated within a range of 100 points, roughly between 43,550 and 43,650. It can also be seen as a consolidation between the significant resistance at 43,700 and the support at 43,500. BNF closed at 43,577, up by 127 points or 0.29%.
All indices except Nifty Pharma (-1.57%) and Nifty IT (-0.59%) closed flat-to-green. Nifty Realty (+1.03%) moved up the most.
Major Asian markets closed mixed. European markets are currently trading mixed.
Today’s Moves
Hero MotoCorp (+4.52%) was NIFTY50’s top gainer. The stock has rallied over 15% in nine days after the company reported record festive sales.
Shares of EID Parry (+8.37%) surged after promoters divested a 2.27% stake in the company for ₹190 crore through an open market transaction.
HPCL (+6.94%) moved up with strength as crude oil prices dropped sharply after OPEC+ postponed its meeting to decide on oil output.
Honasa Consumer (Mamaearth) hit a 20% upper circuit after the company reported a 94% YoY growth in Q2 net profit.
Cipla (-7.93%) was NIFTY50’s top loser. The US Food & Drug Administration issued a letter that flagged data issues at the pharma company’s unit in Madhya Pradesh.
Tube Investments (-8.25%) fell sharply today.
Markets Ahead
Being the weekly expiry for Nifty, the index remained stable and maintained its upper levels. Bank Nifty also sustained its upper levels after recovering from yesterday. However, both Nifty and BNF need to overcome their respective major resistances to achieve a clear breakout.
Nifty: The index has immediate support near 19,800. If there’s a breakdown from this level, the index may decline to 19,700 and 19,630 levels. Meanwhile, the resistance to monitor is approximately at 19,860. A breakout from this level might lead to targets of 20,000.
Bank Nifty: A major resistance to watch out for in BNF is 43,700. A breakout from this level could potentially lead to targets of 43,900 and the round level of 44,000. On the other hand, the immediate support lies near 43,500 levels. If there’s a breakdown from there, the index may decline to 43,200 levels.
India VIX remains steady, and the markets are currently stable. Confirmation of a reversal and an uptrend may occur with a further breakout from key resistance levels. In the event of a positive market reversal, you could focus more on Bank Nifty as it’s further away from the all-time high (ATH) compared to Nifty. This suggests that BNF has the potential to move swiftly to cover the gap.
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Here are some of the major updates that could move the markets tomorrow:
Vedanta secures two coal mines in Odisha in e-auction
Vedanta Ltd has emerged as the highest bidder for two coal mines in Odisha on the second day of the commercial coal mines e-auction. The company won the bid for Ghogharpalli and its dip extension mines. Both coal mines are fully explored and have a peak rate capacity (PRC) of 20 million tonnes per annum. The government placed 10 coal mines on sale on Tuesday and Wednesday.
Tube Investments to leverage Murugappa Group firms to boost EV business
Tube Investments of India (TII) is looking to leverage the expertise of all the companies within the Murugappa Group as it sets a roadmap for its electric vehicles (EV) business. The financing expertise of Cholamandalam Investment & Finance Co will help the company fund its customers. Group firms CG Power and Shanthi Gears can help make motors and gearboxes for electric vehicles. TII also plans to invest up to ₹1,000 crore in its EV business.
Tata Power Solar Systems to set up 100 MW project for SJVN in Gujarat
Tata Power Solar Systems Ltd (TPSSL) will set up a 100 megawatts (MW) ground-mounted solar project for SJVN Ltd in Gujarat for ₹612 crore. The project will get commissioned within 11 months. With this order win, TPSSL’s total portfolio will touch 9.9 gigawatt-peak (GWp). The company’s total order book currently stands at ₹15,520 crore.
Tamilnad Mercantile Bank to focus on phygital platform, network expansion: CEO
Tamilnad Mercantile Bank (TMB) will focus on strengthening its exposure in the phygital platform and expand its branch network during the current financial year (FY23), said MD & CEO S Krishnan. Retail, agriculture, and micro, small and medium enterprises (MSME) segments would be the bank’s focus areas, as this vertical comprises 88% of its exposure.
Shares of TMB made a muted debut on the NSE today, falling by 2.94% from the issue price.
New momentum of auto industry’s innovation for greener alternatives need of the hour: PM Modi
Prime Minister Narendra Modi stressed the need for the automobile industry’s innovation for green alternatives to ensure environmental protection and help make India self-reliant. In a written address to the annual session of the Society of Indian Automobile Manufacturers (SIAM), he said the automobile sector has contributed to the all-round development and growth of the economy through new avenues for employment generation.
Meanwhile, Kenichi Ayukawa, MD & CEO of Maruti Suzuki, said the Indian auto sector will be near 100% self-reliant by 2047.
Reliance Jio adds 29.4 lakh subscribers in July; Vi loses 15.4 lakh users
Reliance Jio added 29.4 lakh mobile subscribers in July 2022, taking its total subscription base to 41.59 crore. Bharti Airtel added 5.1 lakh subscribers, and its total user base stood at 36.34 crore. Meanwhile, Vodafone Idea (Vi) lost 15.4 lakh mobile customers in July, and its user base fell to 25.5 crore. Jio and Airtel further widened their market shares to 36.23% and 31.66%, respectively. Vi’s share narrowed to 22.22% in July.
Larsen & Toubro Ltd’s (L&T) construction arm has secured a significant order (in the range of ₹1,000-2,500 crore). The Water & Effluent Treatment business has received an order from the Government of Odisha to execute a pressurized underground pipeline irrigation network system for the Lower Suktel Irrigation project. The project aims to provide water to irrigate 27,000 hectares of Culturable Command Area (CCA) in the Balangir district, Odisha.
Mindtree designs remote digital solution for L&T green hydrogen plant in Gujarat
Mindtree Ltd has implemented a digital command and control solution for L&T’s recently-commissioned green hydrogen plant in Hazira, Gujarat. The solution enables remote monitoring and control of all services at the plant. It helps optimise operational and energy costs and drive effective utilisation of resources such as solar energy and battery energy storage systems.
BPCL divestment not on the table as of now: Oil Minister
The divestment of Bharat Petroleum Corporation Ltd (BPCL) is not on the table as of now, said Minister of Petroleum and Natural Gas Hardeep Singh Puri. In August, the Centre told Parliament that it will decide on re-initiating the process of BPCL strategic sale based on a review of the situation in due course.
In May 2022, the govt. formally withdrew its offer to sell its entire 52.98% stake in BPCL. A majority of bidders had expressed their inability to participate in the current privatisation process due to prevailing conditions in the global energy market.
UPL Ltd has acquired a 26% stake in renewable energy firm Clean Max Kratos Pvt Ltd. Clean Max was incorporated on July 28 with paid-up capital of ₹1 lakh. The company will develop and maintain a hybrid 28.05 MW solar and 33 MW wind power project. This project will enable UPL to increase its renewable energy usage to 30% of its total global power consumption (from the current level of 8%).
Axis Bank Q3 Results: Net profit jumps three-fold YoY to Rs 3,614 crore
Axis Bank reported a 224% YoY jump in net profit to Rs 3,614 crore for the quarter ended December (Q3 FY22). Net profit increased by 15% when compared to the previous quarter. Its net interest income (NII) rose 17% YoY (or 10% QoQ) to Rs 8,653 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 3.17% in Q3 FY22, compared to 3.53% in Q2 FY22. Provisions fell 64% YoY to Rs 1,335 crore in Q3 FY22.
SBI Cards Q3 Results: Net profit rises 84% YoY to Rs 386 crore
SBI Cards & Payment Services Ltd reported an 84% YoY increase in net profit to Rs 386 crore for the quarter ended December (Q3 FY22). Net profit rose 12% when compared to the previous quarter. Its revenue from operations rose 20% YoY (or 13% QoQ) to Rs 2,889 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 2.40% in Q3 FY22, compared to 2.51% in Q3 FY21.
Star Housing Finance enters into co-lending agreement with Capital India Home Loans
Star Housing Finance Ltd (SHFL) has entered into co-lending partnership with Capital India Home Loans to complement its asset under management (AUM) growth across their shared operational geographies. The partnership will provide housing finance assistance to low-income group home buyers looking to purchase/construct low-cost housing units in Tier 2,3 towns and semi-urban locations.
Shriram Transport Finance Q3 Results: Net profit falls 6% YoY to Rs 681 crore
Shriram Transport Finance Company Ltd reported a 6% YoY decline in net profit to Rs 681 crore for the quarter ended December (Q3 FY22). Net profit fell 12% when compared to the previous quarter. Its net interest income (NII) rose 11% YoY to Rs 2,388 crore during the same period. Total assets under management stood at Rs 1,24,602 crore in Q3 FY22, up 8% YoY. Loan losses and provisions increased by 46% YoY to Rs 984 crore.
Tube Investments to acquire 70% stake in Cellestial E-Mobility
Tube Investments of India Ltd (TII) will acquire a 70% stake in startup Cellestial E-Mobility Pvt Ltd for Rs 161 crore. Cellestial E-Mobility is engaged in the design and manufacture of electric tractors, aviation ground support electric equipment, and other electric machinery. It has designed and developed two tractor prototypes for production. As part of its entry into clean mobility, TII is also setting up a 100% subsidiary for its electric 3-wheeler initiative.
HDFC AMC Q3 Results: Net profit falls 3% YoY to Rs 360 crore
HDFC Asset Management Company (AMC) reported a 3% YoY decline in net profit to Rs 359.75 crore for the quarter ended December (Q3 FY22). Its revenue from operations rose 14% YoY to Rs 549.8 crore during the same period. Overall operational cost increased 35% to Rs 151 crore. Total assets under management (AUM) stood at Rs 4.37 lakh crore in Q3, up 7% YoY.
Paytm partners with Fullerton India to scale up lending to MSMEs
One97 Communications Ltd (Paytm) has partnered with Fullerton India to expand digital lending to micro, small & medium enterprises (MSMEs) and consumers from smaller cities and towns. Both companies will leverage data-driven insights and their wide reach to bring loans to new-to-credit users. The program will offer Paytm Postpaid to millions of consumers on the Paytm platform while utilizing Fullerton’s deep risk assessment capabilities and scale.
IEX Q3 Results: Net profit rises 38% YoY to Rs 80 crore
Indian Energy Exchange (IEX) reported a 38% YoY increase in net profit to Rs 80.5 crore for the quarter ended December (Q3 FY22). Net profit increased by 5% when compared to the previous quarter. Its revenue from operations rose 38% YoY (or 7% QoQ) to Rs 117 crore during the same period. EBITDA stood at Rs 98.7 crore in Q3, up 42% YoY.
Vi MD says drop in customer base is because of tariff hikes/SIM consolidation
Vodafone Idea (Vi) Managing Director Ravinder Takkar said there was “no concern regarding the 4G customer addition pace”, and the drop in subscribers was the result of tariff hikes in November and SIM consolidation. His comments come on the back of a 5.8 million decline in Vi’s customer base in the quarter ended December (Q3 FY22). The telecom company only saw a 0.8 million addition in its 4G subscribers in Q3.
Deepak Nitrite Q3 Results: Net profit rises 13% YoY to Rs 243 crore
Deepak Nitrite Ltd reported a 13% YoY increase in consolidated net profit to Rs 243 crore for the quarter ended December (Q3 FY22). Net profit fell 4% when compared to the previous quarter. The chemical manufacturer’s revenue from operations rose 40% YoY (or 2% QoQ) to Rs 1,722 crore during the same period.
Ramco Cements Q3 Results: Net profit falls 63% YoY to Rs 75 crore
The Ramco Cements Ltd reported a 63% YoY decline in consolidated net profit to Rs 75.2 crore for the quarter ended December (Q3 FY22). Net profit fell 85% when compared to the previous quarter. Its revenue from operations rose 16% YoY (or 6% QoQ) to Rs 1,541 crore during the same period. The company’s EBITDA fell 42% YoY to Rs 217 crore in Q3.
India has witnessed the rise of numerous business conglomerates that have drastically fueled the growth of the country. From the houses of Tata, Godrej, and Birla to the new age Reliance and Adani Group, the list goes on. In today’s editorial, we shall analyse the 121 age-old business empire— the Murugappa group.
Business Profile
The story begins in 1900 when Dewan Bahadur AM Murugappa Chettiar set up a banking firm in Myanmar. His company ventured into various other businesses in south-east Asia. Towards the end of the 1930s, the Murugappa group migrated to India and entered the engineering sector by establishing Coromandel Engineering Co. Ltd.The business development strategy used by the group was very interesting. Instead of starting fresh, they formed joint ventures (JV) with industry experts to enter into a particular industry. For example, TI Cycles was established in 1949 in partnership with UK-based cycle manufacturer Tube Investments Ltd.
Later in 1954, the Murugappa Group formed Carborundum Universal Ltd (CUMI), which produces industrial inputs such as abrasives and ceramics. The group also entered the financial services sector to offer loans to small businesses by forming Cholamandalam Investment and Finance Company. In 1981, they made an aggressive move by acquiring EID Parry, one of the largest sugar manufacturers in south India.
Group Firms
Currently, the Murugappa Group is divided into 3 business verticals: Agriculture, Engineering, and Finance.
EID Parry
As discussed earlier, EID Parry is a sugar manufacturing and marketing company. Retail products such as refined sugar and brown sugar are sold under the ‘Amrit’ brand. Sulfur-free, low glycemic index sugar are some of their other products. EID Parry also supplies sugar used for coating tablets and tonics to the pharmaceutical industry.
The company extracts ethanol from sugarcane molasses, which is used as a blending mix in fuel. The government, through the Ethanol blending Programme (EBP), targets a blend of 20% of ethanol in fuel by 2025. Additionally, the manufacturer uses byproducts of sugarcane (bagasse) to generate electricity. It can replace coal as fuel in power plants.
Financials
EID Parry has a stake in Coromandel International Ltd (CIL). The subsidiary is also an agricultural player that engages in the business of fertilizers, nutrients, and crop protection.
As we can see, CIL contributes the majority of the revenue. EID Parry reported consolidated revenue of Rs 18,758 crore in FY21, resulting in 8% growth year on year. The five-year Compounded Annual Growth Rate (CAGR) is 5.21%.
Looking through the profitability of the business vertical, the crop protection, pharma, and ethanol segments have a Profit Before Tax (PBT) margin above 12%.It means that for every Rs 100 earned as revenue, the company can retain Rs 12 as profit before paying taxes.
Now, let us compare EID Parry with other sugar companies and interpret its performance in the sugar industry.
For the past four years, EID Parry has been a loss-making entity, while peer companies have improved their margins in the same segment.
In the case of leverage, the manufacturer made the balance sheet strong by reducing the debt from Rs 3,888 crore in FY17 to Rs 576 crore in FY21.
Cholamandalam Investment and Finance Co. Ltd (CIFCL)
CIFCL is an emerging midcap finance player with a market capitalization of around Rs 47,000 crore. The lender mainly provides loans in 3 main categories:
Vehicle financing covers more than 70% of their loan book, of which loans for the used vehicle market share 27% and light commercial vehicles constitute 21%. The impact of the Covid-19 pandemic has increased defaults made on vehicle loans, which further lead to the decrease in profitability of the lender. Loans against property (LAP) and credit for Small & Medium Enterprises (SME) constitute 22% of the total loan book. This segment reported an income of Rs 1,639 crore in FY21 with a 3-year CAGR of 15%. Unfortunately, the loans being defaulted are also increasing at a rapid pace, from 0.3% in Q1 FY21 to 2.1% for the Q1 FY22. If the lender cannot limit the bad loans, it may affect the overall efficiency.
The company is led by Mr. Vellayan Subbiah (Chairman & Managing Director). He is part of the fourth generation of the Murugappa family. Vellayan served various roles in the group and is also the MD of Tube Investments of India.
The promoters hold a 52% stake in CIFCL, followed by mutual funds at 22% stake and foreign Institutional Investors (FIIs) with 19%. The company’s Asset Under Management (net value of their financial assets) has doubled in five years. The lender is reporting strong profits, but increasing bad loans is a concern.
Tube Investments of India
Tube Investments operates some of the well-known cycle brands in India, including Hercules, BSA, and Montra Cycles. The company has three main verticals: engineering, metal-formed products, and cycles.
The Engineering wing manufactures products such as Electric-Resistance Welded or ERW tubes (used for transportation of oil & gas) and auto components for two-wheelers and trucks. The metal-formed products business mainly manufactures inputs for industrial applications like railway coach parts, chains, and door frames for vehicles. The cycle business offers brands such as BSA, Hercules, Mach City, and Montra. Track & Trail is a retail cycle outlet chain operated by Tube Investments that spreads across 225 outlets in the country.
The company’s total revenue declined 23% YoY to Rs 6,195 crore in FY21. The 3-year CAGR of the topline stands at -5.92%. Decreasing revenue over the years is a concern as the company is unable to capture new business opportunities.
The engineering wing reported high-profit margins of around 11% in FY21. Even though the cycle business is a low-margin business, rising profitability across the years is a good sign. However, profit margins of the metal products segment have declined sharply.
The company has announced its entry into electric mobility (three-wheelers) and plans to hit the market towards the end of 2021.
Conclusion
The story of the Murugappa Group does not stop here. The group is further diversified in the three verticals with other niche players. Carborundum Universal Limited (CUMI) is one such player that manufactures silicon carbide, zirconia, and other electro minerals and abrasives. Coromandel International, being a crop protection player, is the second-largest phosphatic fertilizer player in the country.
When we analyse these companies from the business house, we can find similar corporate principles and beliefs binding them. Murugappa Group has established strong businesses throughout its 121-year-old legacy. Moreover, they diversify into a segment by either collaborating with industry leaders or acquiring a quality player.
Have you included any of the Murugappa companies in your portfolio? Let us know in the comment section of the marketfeed app.
Power Grid Corp Q4 Results: Net profit rises 6% YoY to Rs 3,526 crore
Power Grid Corporation of India reported a 6.42% YoY (or 4.7 QoQ) increase in consolidated net profit to Rs 3,526.23 crore for the quarter ended March (Q4). Its revenue from operations rose 3.5% YoY to Rs 10,510.32 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) rose 8.83% YoY to Rs 12,036.46 crore. The company’s board has recommended a final dividend of Rs 3 per share. Its board has also declared a bonus issue in the ratio 1:3. [Eligible shareholders will receive one extra share for every three shares held in the company]
Federal Bank to raise Rs 916 crore from IFC, associate entities
Federal Bank will raise nearly Rs 916 crore by issuing shares to International Finance Corporation (IFC) and its affiliates. The private lender’s board has approved the issuance of up to 10.5 crore equity shares (of the face value of Rs 2 each) to IFC, IFC Financial Institutions Growth Fund (FIG), and IFC Emerging Asia Fund (EAF) at Rs 87.39 per share. Federal Bank is also seeking shareholders’ approval to raise Rs 4,000 crore through a rights issue or Follow on Public Offer (FPO).
Natco Pharma Q4 Results: Net profit declines 43% YoY to Rs 53 crore
Natco Pharma Ltd reported a 43.68% YoY decline in consolidated net profit to Rs 53 crore for the quarter ended March (Q4). Net profit has declined by 15.57% when compared to the previous quarter. Its total income declined by 24.62% YoY (or 6.81% QoQ) to Rs 359.7 crore during the same period. Net profit for the financial year 2020-21 (FY21) declined by 4.32% YoY to Rs 440.9 crore. The company expects strong growth during the current financial year due to multiple high-value product launches in the US and a rebound in its India business.
Lupin receives USFDA approval for Sevelamer Hydrochloride tablets
Lupin Limited has received approval from the US Food & Drug Administration (USFDA) to market Sevelamer Hydrochloride tablets. The drug is used to control serum phosphorus in patients with chronic kidney disease on dialysis. According to IQVIA data, the tablets had estimated annual sales of $80 million (~Rs 592 crore) in the US for the 12 months ended March 2021. The product will be manufactured at Lupin’s facility in Nagpur.
IndusInd Bank launches digital lending platform ‘IndusEasyCredit’
IndusInd Bank announced the launch of ‘IndusEasyCredit’, a digital lending platform that enables customers to meet their financial requirements from the comfort of their homes. Both existing customers and non-IndusInd Bank customers can instantly avail of personal loans or credit cards on a single platform in a completely paperless and digital manner. Currently, customers can only apply for the ‘IndusEasyCredit’ facility through the bank’s website.
DB Corp Q4 Results: Net profit jumps 157% YoY to Rs 61.9 crore
DB Corp Limited reported a 157.42% YoY jump in consolidated net profit to Rs 61.91 crore for the quarter ended March (Q4). Net profit has declined by 37.48% when compared to the previous quarter. Its revenue from operations declined by 6.17% YoY to Rs 456.60 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) declined by 48.57% YoY to Rs 141.42 crore. The company’s board has recommended a final dividend of Rs 3 per share. DB Corp is a print media and publishing company based in Madhya Pradesh.
Nazara Technologies to acquire 69.82% stake in gaming firm Publishme
Nazara Technologies Ltd has signed a binding term sheet to acquire a 69.92% stake in Publishme, a mobile game publishing agency based in the Middle East and Turkey. The company will invest nearly Rs 20 crore for acquiring the majority stake in Publishme. With this acquisition, Nazara Tech will expand its international footprint in the freemium segment. It aims to build local execution capabilities by cutting across key growth segments— freemium, gamified learning, and esports.
Adani Enterprises to invest Rs 1,000 crore in cement business: Report
According to a report from BusinessLine, the Adani Group is setting up a 5 metric tonne per annum (MTPA) cement plant in Maharashtra with an initial investment of Rs 1,000 crore. Adani Enterprises Limited (AEL) had recently announced the incorporation of a new wholly-owned subsidiary, Adani Cement Industries Ltd, to carry out the business as manufacturers and processors of all types of cement. The company has identified a 100-acre land in the Raigad district of Maharashtra to set up the cement plant.
Novartis India Q4 Results: Net profit rises 43% YoY to Rs 9.7 crore
Novartis India Ltd reported a 43.07% YoY increase in net profit to Rs 9.7 crore for the quarter ended March (Q4). Its revenue from operations rose 6%YoY to Rs 99.29 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) jumped 107.34% YoY to Rs 20.9 crore. The pharma company’s board has recommended a final dividend of Rs 10 per share.
Domestic air passengers in May 63% lower than April: DGCA
The total number of domestic passengers that travelled by air declined by 63% to 21.15 lakh in May 2021, compared to 57.25 lakh passengers in April. The second wave of the Covid-19 pandemic has severely hit the aviation sector. IndiGo carried 11.69 lakh passengers in May and secured 55.3% of the domestic market share. SpiceJet flew 1.99 lakh passengers during the same month, accounting for a 9.4% market share. Go First (previously known as GoAir) carried 1.38 lakh passengers in May. The data was released by the Directorate General of Civil Aviation (DGCA).
Tube Investments Q4 Results: Net profit jumps 141% YoY to Rs 143 crore
Tube Investments of India reported a 141.91% YoY jump in consolidated net profit to Rs 143.84 crore for the quarter ended March (Q4). Net profit has increased by 34% when compared to the previous quarter. Its revenue from operations jumped 165.3% YoY to Rs 2,624.72 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) declined by 6.54% YoY to Rs 286.32 crore. The company’s board has recommended a final dividend of Rs 1.5 per share. Its board has also approved the fundraising of up to Rs 200 crore via debt securities.
Infosys Finacle launches digital banking SaaS offering for urban co-op banks
Infosys Finacle has launched a digital banking software-as-a-service (SaaS) platform to help Indian urban cooperative banks (UCBs) modernize their business and operations. The company is a part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys Ltd. The platform has already been adopted by three leading UCBs in India— Vidya Sahakari Bank, Urban Co-operative Bank, Bareilly, and Zoroastrian Cooperative Bank
The Rs 520-crore IPO of Dodla Dairy Ltd was subscribed 3.3 times on the second day of bidding. The portion reserved for retail investors was subscribed 6.18 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 6% and that of qualified institutional buyers (QIBs) 28%. You can learn more about the IPO here.
KIMS
The Rs 2,144-crore IPO of Krishna Institute of Medical Sciences Ltd was subscribed 56% on the second day of bidding. The portion reserved for retail investors was subscribed 1.95 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 9% and that of qualified institutional buyers (QIBs) 32%. You can learn more about the IPO here.
PM Modi reveals plans to boost India’s renewable energy sector
During his speech at RE-Invest 2020, Prime Minister Narendra Modi stated that India has huge renewable energy deployment plans for the next decade. These plans will likely generate business opportunities worth $20 billion (~Rs 1.47 lakh crore) per year. He further said that India’s renewable energy capacity is currently the 4th largest in the world. PM Modi has also invited investors and developers to join India’s renewable energy journey.
India restricts international flights till December 31
The Government of India has extended the ban on scheduled international flights till December 31, amidst the ongoing Covid-19 pandemic. The Directorate General of Civil Aviation (DGCA) has stated that only selected flights will be allowed on a case-to-case basis. The restriction will not apply to international cargo flights. Special international flights under the Vande Bharat Mission will be allowed to operate under ‘air bubble’ agreements with selected countries.
Bombay High Court refuses to stay merger of Lakshmi Vilas Bank and DBS
A group of promoters of Lakshmi Vilas Bank (LVB) had filed a petition in the Bombay High Court, challenging the merger of LVB with DBS Bank India Ltd. The promoters have initiated legal action against the RBI, the Indian Government, and DBS Bank. The High Court, on Thursday, refused to provide interim relief sought by the promoters to stay the merger. The merger will be effective from November 27. The petition has been placed for hearing on December 14.
TVS Automobile Solutions acquires service business of Mahindra First Choice
TVS Automobile Solutions Pvt Ltd (TVS ASPL) has acquired the service business of Mahindra First Choice Services Ltd (MFCSL). MFCSL is a chain of multi-brand car and two-wheeler service workshops and is owned by the Mahindra Group. As part of the transaction, Mahindra & Mahindra Ltd. will secure a minority stake in TVS ASPL.
Ajanta Pharma announces details of proposed buyback
Ajanta Pharma Ltd. has announced details of activities regarding its share buyback plan. The company will buyback 7.35 lakh equity shares at Rs 1,850 per share. The date of opening of the buyback offer is on December 3. The buyback offer will be closed on December 16. The last date of settlement of bids on the stock exchange will be December 24.
Glenmark Pharma gets listed in Dow Jones Sustainability Index for 3rd straight year
Glenmark Pharmaceuticals Ltd. has been listed in the Dow Jones Sustainability Index (DJSI), under the category of emerging markets, for the third consecutive year in a row. DJSI is one of the world’s most widely accepted sustainability benchmarks. It consists of the top-ranked companies in terms of Corporate Sustainability. Glenmark is ranked 13th among global pharmaceutical companies in the DJSI Emerging Markets 2020.
Tube Investments to raise Rs 350 crore from Azim Premji Trust, SBI Mutual Fund
The Board of Directors of Tube Investment of India Ltd (TIIL) has approved raising Rs 350 crore from the Azim Premji Trust and SBI Mutual Fund. The company will allot shares to both entities on a preferential allotment or private placement basis. Azim Premji Trust will get 27.33 lakh shares worth Rs 200 crore. SBI Mutual Fund’s two schemes- SBI Focused Equity Fund and SBI Magnum Midcap Fund will get 15.03 lakhs share and 5.46 lakh shares worth Rs 110 crore and Rs 40 crore, respectively.
Laurus Labs acquires 72.55% stake in Richcore Lifesciences
Laurus Labs Ltd. has acquired a 72.55% stake in biotech company Richcore Lifesciences from Eight Roads Ventures and VenturEast. The cost of the acquisition has been estimated at Rs 246.67 crore. Laurus Labs has stated that Richcore Lifesciences will be renamed Laurus Bio Private Ltd, after the successful closure of the transaction.
IL&FS receives binding offer for its energy advisory business
IL&FS, on Thursday, said that it has received a binding offer for the acquisition of its energy advisory subsidiary- IL&FS Energy Development Company Ltd (IEDCL). The company currently holds a 95.54% stake in IEDCL. The winning bidder would acquire both the assets and liabilities of IEDCL. The bids are open till December 7.
Meghmani Organics to set up multipurpose plant in Dahej
Meghmani Organics Ltd. has announced that it is planning to set up a multipurpose plant in Dahej at a cost of Rs 310 crore. The plant is expected to be commissioned by the fourth quarter of the financial year 2021-2022. The company also stated that it has commenced commercial production at two of its plants situated in Bharuch, Gujarat.
Angel Broking enables API integration for algo trading
Angel Broking has announced that it has enabled API integration for algorithmic trading, through the launch of SmartAPI. This feature allows its users to execute real-time trades via Angel Broking, while also empowering algorithmic traders to deploy their programs in 5 programming languages. Algorithmic trading (also called automated trading) uses a computer program that follows a defined set of instructions to place a trade.
