Stocks in Focus on December 7: RateGain Travel IPO, Tata Motors, Indo Count, SpiceJet, Diagnostic Stocks and many more

The Sensex and the Nifty on Monday, December 6, 2021, declined more than one and half a per cent. Both stocks fell amid mixed cues from the global equity markets. The BSE Sensex tumbled 949.32 points, or 1.65% to settle at 56,747.14. The NSE Nifty 50 also plunged 284.45 points, or 1.65%, to end at 16,912.25. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, December 7, 2021. List of such five stocks:

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IPO Update: RateGain Travel Technologies IPO + Anand Rathi IPO 

RateGain Travel Technologies IPO: The Noida-based RateGain Travel Technologies Limited, distribution technology and Software-as-a-Service (SaaS) company, will launch its initial public offering (IPO) for subscription today, i.e., Tuesday, December 7, 2021. The three-day issue will conclude on Thursday, December 9, 2021. The company has fixed a price band of Rs 405-425 per equity share. At the upper end of the price band, the initial share sale is expected to fetch Rs 1,336 crore. The IPO comprises a fresh issue of equity shares aggregating up to Rs 375 crore and an offer-for-sale (OFS) of up to 2.26 crore equity shares worth Rs 961 crore by promoters and existing shareholders. The retail investors can place a bid for a lot of 35 Equity Shares and in multiples thereof. Retail investors can invest a minimum of Rs 14,875 for one lot, and their maximum investment would be Rs 1,93,375 for 13 lots. Besides, the company on Monday said it has raised Rs 599 crore from anchor investors ahead of its IPO (initial public offering) rollout on Tuesday. The company has decided to allocate 1,40,90,136 equity shares to 34 anchor investors at Rs 425 apiece. Government of Singapore (11.7%), Nomura (11.2%), ICICI Prudential MF (15%), Goldman Sachs Funds (10%), Nippon Life (10%), PineBridge (6.7%) and Aditya Birla Sun Life Mutual Fund (5%) among others are among the anchor investors.

Anand Rathi IPO: The Rs 660 crore initial public offering (IPO) of Anand Rathi Wealth Limited, the wealth management arm of Anand Rathi Financial Services, was subscribed 9.78 times on Monday, December 6, 2021, the third and last day for bidding. The Qualified Institutional Buyers (QIBs) portion was subscribed 2.5 times while the Non Institutional Investors and Retail Individual Investors (RIIs) portions were subscribed 25.42 times and 7.76 times, respectively. The price band of the issue was fixed at Rs 530-550 per share. Retail investors can place a bid for a lot of 27 equity shares and in multiples thereof.

Tata Motors: India’s largest commercial vehicle manufacturer, has announced an impending price hike of its commercial vehicle range. An increase in price in the range of 2.5%, will be implemented from January 1, 2022, and will be put into effect across segments – M&HCV, I&LCV, SCV and Bus, basis individual model and variant of the vehicle. The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has incited this price hike in commercial vehicles. While the company is absorbing a significant portion of the increased costs at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimal price hike.

Indo Count Industries/GHCL: The Board of Directors of Indo Count on Monday approved the acquisition of Home Textile business (excluding spinning business) of GHCL Limited, which includes manufacturing facilities at Vapi, Gujarat on a going concern basis, by way of slump sale in accordance with the terms of Business Transfer Agreement and acquisition of specified assets (inventory and intellectual property) of the US subsidiary of GHCL Limited in accordance with the terms of Asset Transfer Agreement. The cost of acquisition is Rs. 576 crores. The acquisition will add Rs 1,300-1.5000 crore per annum to the topline of Indo Count. With the addition of almost 50% new capacity, Indo Count will become the largest Home Textile Bedding company, globally, with an annual capacity of approximately 153 million meters. Besides, the Board of Directors of GHCL has approved the modification of the ongoing Scheme of Demerger of the entire textile business. Spinning business accounts for 21.6% of the total income (as of March 31, 2021). There will be no change in the shareholding pattern of the Demerged Company.

SpiceJet: The Madras High Court on Monday allowed the winding-up petition filed by Credit Suisse AG against SpiceJet Ltd for non-payment of over $2.4 crore. The Swiss company maintains, repairs and overhauls aircraft engines, and components. The court has also directed the official liquidator to take over the assets of SpiceJet. The airline can challenge the ruling. However, after pronouncing the judgement, the judge stayed the operation of his verdict for a period of three weeks to enable SpiceJet to go on appeal. The stay was granted on the condition that the company should deposit $40 lakhs to the credit of the SR Technics within a fortnight.

Interglobe Aviation: InterGlobe Aviation Limited, the parent of the country’s largest airline IndiGo, will convene a shareholders’ meeting on December 30, 2021, to amend the company’s Articles of Association (AoA) and remove restrictions on the transfer of promoter shares following a joint request from its promoters. IGE Group (Rahul Bhatia) and RG Group (Rahul Gangwal) were collectively the ‘Requisitionists’. The promoters — Rahul Bhatia and Rakesh Gangwal — together with their related entities and individuals own a 77.4 per cent stake in InterGlobe Aviation.

Diagnostic Stocks in Focus: The Maharashtra government has revised rates for Covid-19 RT-PCR tests conducted at private laboratories. For tests conducted at laboratories will be charged Rs 350 per test instead of Rs 500 while for home collection the rates have been reduced from Rs 800 to Rs 700 per test.  

Ujjivan Small Finance Bank: The Board of Directors of the company has approved the appointment of Mr. Ittira Davis as the Managing Director and Chief Executive Officer (MD & CEO) of the Bank for 3 years from the date of approval of the RBI or such other period as may be approved by RBI.

Block Deals 

Rain Industries:  Pabrai Investment Funds bought 68.98 lakhs equity shares of the company via open market transactions on December 2, 2021, increasing shareholding to 8% from 5.95% earlier.

LG Balakrishnan & Brothers:  Promoter Rajvirdhan V sold 1.65 lakh equity shares in the company at Rs 492.97 per share on the NSE, the bulk deals data showed.