Stocks in Focus on August 30: Bharti Airtel, Vedanta, Tata Steel, Tech Mahindra to IGL; here are the 5 Newsmakers of the Day

Domestic stocks markets ended at record closing highs on Friday, August 27, 2021. The S&P BSE Sensex closed 175.62 points or 0.31 per cent higher at 56,124.72. The Nifty 50 rose 68.30 points or 0.41 per cent to 16,705.20. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, August 30, 2021. List of such five stocks:

Bharti Airtel: The telecom’s board has approved raising Rs 21,000 crore via a rights issue priced at Rs 535 a share (9% discount on Friday’s closing price of Rs 588.45). Rights Entitlement Ratio stands at 1 equity share for every 14 equity shares held by eligible shareholders as on the record date. The promoter and promoter group of the Company will collectively subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to any unsubscribed shares in the Issue. Besides, reportedly, Google may invest in telecom which could run into several thousands of crores. Both the companies are already in an advanced stage of discussions and negotiations since last year, media reports said. Google bought a 7.7% stake in Jio Platforms in July 2020 for Rs 34,000 crore. 

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Vedanta + Tata Steel

Vedanta: Vedanta Ltd on Saturday said its board will meet next week to consider and approve the first interim dividend for 2021-22. The record date to determine the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Thursday, September 9, 2021.

Tata Steel: Domestic steel giant Tata Steel will invest Rs 8,000 crore in capital expenditure on its India operations during the current financial year. The amount will be spent mainly towards the completion of the expansion of the Kalinganagar plant, and the expansion of the mining operations and recycling business. 

Nazara Technologies: Gaming and sports media platform Nazara Technologies has acquired Hyderabad-based skill-based gaming company OpenPlay for about Rs 186.41 crore. In the first tranche of the Strategic Investment, the Company shall acquire 23.30% of the issued and paid-up share capital of OpenPlay for a consideration of INR 43.43 crores, by end of Q2 of FY 2021-22

M&M + Tech Mahindra 

M&M: The Ministry of Defence (MoD) has awarded a major contract to Mahindra Defence Systems Limited (MDS) worth Rs 1349.95 crore for the manufacturing of Integrated Anti-Submarine Warfare Defence Suite (IADS) for modern warships of the Indian Navy. Mahindra Defence would be supplying 14 IADS Systems for the Indian Navy warships. Competitive bids from Indian companies were invited by MoD through open tender wherein the systems fielded were put through detailed trials at sea to prove their capability. IADS is high-end underwater equipment that uses the latest technology. It is designed to detect and protect warships from underwater threats.

Tech Mahindra: Tech Mahindra (Americas) Inc., a wholly-owned subsidiary of Tech Mahindra, will acquire a 13.8% stake of AustinGiS, an IT services provider, for a total cash consideration of $1.25 million. AustinGiS is a 5G services and IoT IaaS provider incorporated in 2021, with projected revenue of $28 million in CY2021. The investment will help Tech Mahindra develop new offerings in its IoT/5G capabilities by opening up a strong ecosystem of partners with specialization in 5G/IoT technology. The transaction is expected to close by September 15, 2021.

IGL + Burger King 

Indraprastha Gas Limited: Indraprastha Gas Limited (IGL) on Saturday increased the compressed natural gas (CNG) and piped natural gas (PNG) prices in Delhi and NCR. The CNG price has been increased by 0.9/kg while the PNG price has been increased by 1.25 per SCM (standard cubic meter) Notably, the natural gas supplier has hiked CNG prices by Rs 45.20/kg in Delhi while PNG prices were raised by Rs 30.91/SCM. This revision came into effect from 6 am on Sunday, August 29, 2021.

Burger King: The Company has recently entered into discussions regarding the acquisition of a controlling stake in PT Sari Burger Indonesia (“BK Indonesia”), which manages and operates the Burger King brand in Indonesia. The company has entered into a non-binding understanding with F&B Asia Venture (Singapore) Pte Ltd. F&B Asia, to acquire 85% stakes in BK Indonesia. The pre-money enterprise value of BK Indonesia stands at $183 million on a cash-free and debt-free basis. The proposal, on a non-binding basis, accordingly, the parties are subject to an exclusivity period of 90 days to explore and negotiate the proposed transaction.