The key benchmark indices seem poised for yet another positive start backed by encouraging global cues, as fears of Omicron led economic recovery receded. This morning as of 07:55 AM, the SGX Nifty futures were quoted at 17,212 as against NSE Nifty 50 close of 17,073 on Thursday. Meanwhile, here the top stocks to focus in trade today.
Data Patterns: Shares of the vertically integrated defence and aerospace electronics solutions provided are set to make their debut on the bourses on Friday. The IPO had received a huge response, with subscription up to 119.62 times. The GMP indicates a likely 45-50 per cent listing gain for the stock versus its issue price of Rs 585 per share.
L&T Housing Finance (L&TFH): The company has sold L&T Investment Management (LTIM) to HSBC Asset Management (India) for $425 million. LTIM is the investment manager of the mutual fund business of L&T.
L&T Housing Finance on Thursday announced selling L&T Investment Management (LTIM) to HSBC Asset Management (India) at $425 million. LTIM is the investment manager of the mutual fund business of L&T.
The divestment of the mutual fund business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet, it stated in a press release.
The data from the Association of Mutual Funds in India (Amfi) shows L&T Mutual Fund (MF) has average assets under management (AAUM) worth Rs 78,273.80 crore, while HSBC MF has AAUM of Rs 11,314.32 crore as in the July-September quarter.
If the conversion rate of Rs 75 is taken, the deal will be worth approximately Rs 3,188 crore.
Dinanath Dubhashi, managing director and chief executive officer, L&T Finance Holdings, said: “When seen alongside the recent capital raise, it provides us with enough ammunition to increase the pace of retailisation in our lending portfolio, which is one of our long-term goals.”
L&T Investment Management (LTIM) is the 12th largest asset management company (AMC) in India and offers a basket of equity, fixed-income, and hybrid schemes to retail and institutional investors.
This will be a third merger and acquisition in the Indian asset management space in 2021. Earlier in this year, Sundaram AMC had bought the assets of Principal Asset Management.
According to the industry participants, the deal was at Rs 338 crore.
In May this year, India’s leading investment platform, Groww, had announced it would acquire Indiabulls Mutual Fund at Rs 175 crores (including cash and cash equivalent of Rs 100 crore).
HSBC intends to merge the operations of LTIM with those of its existing asset management business in India. JP Morgan and Citi were the financial advisors to L&T Finance Housing. Cyril Amarchand Mangaldas acted as the legal advisors and PwC acted as due diligence and tax advisors.
Tega Industries: The company’s board has given its in-principle approval for setting-up an additional, larger plan in Chile for an estimated cost of Rs 175 crore to cater to the growing Latin American market demand. The project needs to be implemented in the next 24 months.
Ajanta Pharma: The company has scheduled its board meeting on December 28 to consider a proposal for share buy-back.
Allcargo Logistics: The company’s board has approved demerger of CFS/ ICD business into Allcargo Terminal Limited and demerger of equipment rental, logistics parks and other real estate assets into TransIndia Realty & Logistics Parks.
Surya Roshni: The company has received an order worth Rs 124.35 crore from IHB Limited – a joint venture of Indian Oil, Hindustan Petroleum and Bharat Petroleum for supply of API 3LPE coated pipes for LPG cylinders.
Glenmark Pharma: The company informed BSE, that Crisil Ratings had upgraded I ts long-term credit rating to CRISIL AA-/ Positive from CRISIL AA- / Stable. At the same time, Crisil has reaffirmed the company’s short-term credit rating to CRISIL A1+.
GMR Infrastructure: The company has received approval from the National Company Law Tribunal (NCLT) for the restructuring plan involving the demerger of the non-airport business. The company on August 27, 2020, had unveiled its plan to simplify the corporate holding structure and to attract sector-specific global investors.
GMR Infrastructure on Thursday said it has received approval from the National Company Law Tribunal for the restructuring plan involving the demerger of the non-airport business.
GMR Infrastructure had unveiled the rejig plan on August 27 last year, to simplify the corporate holding structure and to attract sector-specific global investors.
“The Hon’ble National Company Law Tribunal, Mumbai Bench, has sanctioned the composite scheme of arrangement amongst GMR Power Infra Limited (GPIL), GMR Infrastructure Limited (GIL) and GMR Power and Urban Infra Limited (GPUIL) and their respective shareholders under Sections 230 to 232 of the Companies Act, 2013,” it said in a statement.
The sanction was pronounced by the tribunal on December 22, 2021.
On August 27 last year, the board of GMR Infrastructure together with other group companies — GPIL and GPUIL — had decided on a composite scheme of arrangement including the demerger of the non-airport business of GMR Infrastructure.
“Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure. The vertical split demerger will go a long way in facilitating deeper understanding of the airport business independently as compared to other business verticals within the group,” GMR Infrastructure had said.
Currently, the GMR Group operates the Indira Gandhi International Airport in New Delhi, and Hyderabad’s Rajiv Gandhi International Airport. It also operates the Cebu airport in the Philippines.
Its energy business has a diversified portfolio of around 4,995 MW generation capacity.
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Indian Oil Corporation (IOC): The state-run refinery is setting up a new crude oil pipeline system with a nameplate capacity of 17.5 million tonnes per annum (mmtpa) from Mundra (Gujarat) to Panipat (Haryana). IOC will also build 9 crude oil tanks of 60,000 kilo litres each at Mundra, which, apart from meeting operational requirements, will also help in enhancing crude oil storage capacity in the country. The total estimated cost of the project is Rs 9,028 crore.
Hero MotoCorp: The two-wheeler major has announced an upward revision in the ex-showroom prices of its motorcycles and scooters, that will come into effect from January 4, 2022. According to a release issued by the company to the BSE, the price revision has been necessitated to partially offset the impact of steadily increasing commodity prices. The price revision will be up to Rs 2,000 and the exact quantum of increase will depend on the model and the market.
Two-wheeler maker Hero MotoCorp on Thursday said it will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from January 4, 2022.
The price revision has been necessitated to partially offset the impact of steadily increasing commodity prices.
The price revision will be up to Rs 2,000 and the exact quantum of increase will depend on the model and the market, the company said in a stock exchange filing.
Following the news, the company’s scrip on BSE closed nearly 2% higher at Rs 2,394.
Similarly, Volkswagen Passenger Cars India announced that it will hike the prices of Polo, Vento and Taigun from January 1, 2022 owing to the rising input and operational costs.
The price revision will be ranging from 2-5 per cent depending on the carline and the variant., it said.
Price hike will not be applicable to the new Tiguan, which was launched in India recently, it added.
“Our effort over the years has been to make our brand, products and services more accessible and establish Volkswagen as the brand of choice amongst our customers. Due to the substantial increase in the input and operational costs, we have decided to hike the prices of our product offering ranging from 2-5 per cent and keeping the impact on customers at a minimal level,” Volkswagen Passenger Cars India Brand Director Ashish Gupta noted.
There has been a steady increase in prices of raw materials like steel, aluminum, copper, and precious metals over the last year prompting automobile manufacturers to raise model prices.
Already, various carmakers like Maruti Suzuki India, Tata Motors, Toyota Kirloskar Motor, Honda Cars and Skoda have indicated to increase vehicle prices from next month.
InterGlobe Aviation (IndiGo): Air France-KLM and IndiGo have entered into an extensive codeshare agreement. With this new partnership, Air France and KLM will offer their customers access to 25 new Indian destinations.
Radhe Developers: The company’s board has approved a proposal to increase its authorised share capital from Rs 45 crore to Rs 100 crore.
Blue Cloud Softech Solutions: The company’s board is scheduled to meet on December 29 to consider and approve conversion of 192.69 lakh convertible warrants into equity shares.
Stocks in F&O ban: Escorts, Indiabulls Housing Finance, Vodafone Idea and Zee Entertainment are the stocks in the F&O ban period today.