Stocks in Focus on July 3: Vedanta, HDFC Life, JB Chemicals to Defence Stocks; here are expected newsmakers of the day

Stocks in Focus on July 3: Mirroring positive global markets the domestic stocks markets rallied on Thursday, July 2, 2020. The barometer S&P BSE Sensex rallied 429.25 points or 1.21% at 35,843.70. The Nifty 50 index jumped 121.65 points or 1.17% at 10,551.70. The increasing optimism for a safe and effective COVID-19 vaccine eased the concerns about the second wave of infections. US-based Pfizer Inc said a COVID-19 vaccine being developed with German biotech firm BioNTech showed promise and was found to be well-tolerated in early-stage human trials. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, July 3, 2020. List of such five stocks:

Nifty 50 Changes - Vedanta / HDFC Life: The Index Maintenance Sub-Committee (IMSC) of the National Stock Exchange (NSE) has released the list of changes to be incorporated in various indices. According to the release, HDFC Life Insurance Company Ltd will replace Vedanta Ltd in the Nifty 50. Consequently, Vedanta will be also removed from various indices due to its proposed voluntary delisting. The changes shall become effective from July 31, 2020.

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Motherson Sumi Systems Ltd (MSSL): India’s largest automotive component manufacturer on Thursday said that its board has approved the reorganization plan. Under the plan, the domestic wiring harness business will be demerged into a separate entity, which will be subsequently listed. For every one share held in MSSL, one share would be allotted in the new firm. As part of the new structure, Samvardhana Motherson International Limited (SAMIL), the holding company, will be merged with the existing organization, which will include the rest of the automotive component businesses. For every 10 shares held in SAMIL, 51 shares of MSSL would be allotted. MSSL will be renamed as Samvardhana Motherson International Limited. The completed process is likely to be completed by Q2FY22.

JB Chemicals & Pharmaceuticals: KKR & Co. Inc. will acquire about 54% stake in the drug manufacturer JB Chemicals and Pharma. KKR has agreed to buy 41.7 million equity shares of the Mumbai-based pharma company. It will KKR will acquire the stake at Rs 745 per share, at a premium of 4% to the closing price of Rs.715 on BSE. Post-transaction, an open offer will be launched to acquire 26% stake. The Open Offer is being made at Rs 745 per equity share. The total deal size is likely to go up to Rs 4600 crore. 

PI Industries: PI Industries has opened its qualified institutional placement (QIP) issue July 2, 2020. The floor price is fixed at Rs 1534.24 per share. The company may offer a discount of not more than 5% on the floor price so calculated for the Issue. The company wants to raise around Rs 2,000 crores through the QIP.

Defence Stocks (HAL in focus): Defence Acquisition Council (DAC) in its meeting accorded approval for Capital acquisitions of various platforms and equipment required by the Indian Armed Forces. Proposals for an approximate cost of Rs 38,900 Crore were approved. The meet focused on indigenous design and development. The DAC also approved the proposal for procurement of 21 MIG-29. It also approved upgradation of existing 59 Mig-29 aircraft and procurement of 12 Su-30 MKI aircraft.