Stocks in Focus on December 27: HP Adhesive, Go Fashion, GE Shipping, RBL Bank, Hotel Stocks and many more

After three days of gains, the Indian stock markets ended the volatile trading session with marginal losses on Friday, December 24, 2021. The BSE Sensex fell 190.97 points, or 0.33%, to trade at 57,124.31. The NSE Nifty also slipped 68.85 points, or 0.40%, to trade at 17,003.75. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, December 27, 2021. List of such five stocks:

HP Adhesive Listing: Shares of Adhesives Limited will debut on the bourses, NSE & BSE, today, i.e., December 27, 2021. The issue price for the shares is Rs 274 per share. Earlier, the initial public offering (IPO) of HP Adhesives Limited, an adhesive and sealants company, was subscribed 20.96 times on the last day of subscription on Friday, December 17, 2021. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.82 times, while the Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 19.04 times and 81.24 times, respectively. The company had fixed a price of Rs 262-274 per equity share to raise up to Rs 125.9 crore from the primary market. The issue comprised of a fresh issue of 41,40,000 equity shares worth Rs 113.44 crore and an offer for sale (OFS) of 4,57,200 equity shares worth Rs 12.5 crore.

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Go Fashion: The mandatory lock-in period of 30 days for anchor investors ends today.

Great Eastern Shipping Co. Ltd.: The Board of Directors of the Company is scheduled to meet today to consider and approve a proposal for buy-back of equity shares of the Company.

RBL Bank: The Board of Directors of the Bank at its meeting held on December 25, 2021, accepted the request of Mr Vishwavir Ahuja to proceed on leave with immediate effect. The Board appointed Mr Rajeev Ahuja (currently the Executive Director) as interim Managing Director & Chief Executive Officer of the Bank with immediate effect. Besides, the Reserve Bank of India on December 24, 2021, appointed Mr. Yogesh K Dayal, Chief General Manager, Reserve Bank of India as an Additional Director on the Board of the Bank for two years w.e.f December 24, 2021, till December 23, 2023, or till further orders, whichever is earlier. The company in a letter said, These developments are not on account of any concern on advances, asset quality and deposits level of the Bank. We want to allay any concerns any of you may have in this regard. The Bank has the full support of the RBI. Bank employee unions' umbrella body AIBEA (All India Bank Employees Association) had written a letter to Finance Minister Nirmala Sitharaman expressing concern that everything was not right at RBL Bank and it was going the Yes Bank and Lakshmi Vilas Bank way. It said, the government must protect the interests of depositors at RBL Bank and consider merging it with a state-owned one, said an industry trade union. 

In addition to this, during a concall, Rajeev Ahuja, MD & CEO, RBL Bank said, "We would like to reiterate that these developments are not in any manner a reflection on the fundamentals of the Bank. As we have been communicating to all of you the business momentum and financial performance trajectory have been improving since the second quarter of this financial year as we recovered from the effects of the pandemic. Lastly, we remain on track to our guidance on earnings for the rest of the year with improved traction FY23 onwards." Talking about the financial position of RBL Bank, Mr Ahuja said, RBL Bank remains robust as its capital adequacy was 16.3% and will be in a similar range this quarter. Its Liquidity Coverage ratios have been well above regulatory requirements – it was 155% for the September quarter. On asset quality, our slippages peaked in Q2 and will be improving this quarter and next as we had guided previously. The NPA position of the Bank will also be on an improving trend. We want to point out here that we have been upfront and transparent on any challenges that we have faced in our various business segments in the past. To reiterate there is no change from what we have been communicating all along. On Growth, traction on advances is picking up while we continue to keep improving granularity on both advances and deposits. 

Reportedly, Ace investors Rakesh Jhunjhunwala and D-Mart’s founder RK Damani have approached the Reserve Bank of India (RBI) to buy a 10 per cent stake in RBL Bank. According to the report, RBI is looking at the request.

Cadila Healthcare: (Sentimental impact) The Drug Controller General of India (DCGI), reportedly, gave Bharat Biotech approval for emergency use authorisation of Covaxin COVID-19 vaccine for children in the 12-18 years age group. The Subject Expert Committee (SEC) had recommended DGCI to grant emergency use to Covaxin for children. Covaxin is now the second vaccine cleared for use for children in India. In August, Zydus Cadila’s three-dose DNA jab was allowed to be used on adults and children over the age of 12. 

Hotels + Malls + Restaurants + Liquor Stocks: Many states have increased restrictions amid an increase in CORONA cases. There is a ban on any kind of New Year Party in Mumbai and Section 144, effective between 9 pm to 6 am, has been imposed on Maharashtra, which means more than 5 people will not be able to gather in a public place. Restaurants, Gym, Cinemas have been allowed to operate at just 50% capacity. Not more than 100 people are allowed together in the marriage ceremony. More than 250 people are not allowed in the open space or only 25% of the people are allowed in the open space. Besides, Karnataka imposes a night curfew from 28 December to 7 January from 10 pm To 5 am. Restaurants, hotels are allowed to operate at 50% capacity between December 30- January 2, 2021. 

Aluminium/Chemical related Stocks: India has imposed anti-dumping duties on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country. The duties have been imposed on:    

1. Certain flat-rolled products of aluminium  

2. Sodium hydrosulphite (used in dye industry)  

3. Silicone sealant (used in the manufacturing of solar photovoltaic modules and thermal power applications)  

4. Hydrofluorocarbon (HFC) component R-32 (used in refrigeration industry)  

5. Hydrofluorocarbon blends (used in refrigeration industry)

Indiabulls Real Estate: The Hon'ble National Company Law Tribunal ('NCLT'), Chandigarh Bench vide its order dated December 23, 2021, has directed the Company to convene a meeting of its shareholder on February 12, 2022, through Video Conference/Other Audio-Visual Means, under the Chairmanship of NCLT appointed Chairperson, to seek approval of shareholders of the Company to the proposed Scheme of Merger of NAM Estates Private Limited and Embassy One Commercial Property Developments Private Limited, both Embassy group entities, with Indiabulls Real Estate Limited. 

FMCG Stocks + Godrej Agrovet + Ruchi Soya/Agro Tech/Jayant Agro: Leading oil producers have slashed the edible oil prices. They have slashed the retail selling price by 8-13%.