Stocks in Focus on February 21: IndiGo, Hatsun Agro, Hinduja Global Solutions, Kalpataru Power, Equitas Small Finance Bank and many more

The benchmark indices closed with small cuts on Friday, February 18, 2022, declining for the third straight session. After hovering near the flat line for most of the session, the Nifty closed below the 17,300 level. The barometer index, the S&P BSE Sensex fell 59.04 points or 0.10% at 57,832.97. The Nifty 50 index slipped 28.30 points or 0.16% at 17,276.30. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, February 21, 2022. List of such Stocks:

InterGlobe Aviation: Mr. Rakesh Gangwal, Non-Executive, Non-Independent Director has tendered his resignation from the Board of Directors of the Company vide his letter dated February 18, 2022, with immediate effect. He will reduce his equity stakes in the company over the next five-plus years. Rakesh Gangwal currently holds 14.65% stakes in the company. However, any plan, future events of the company may impact Mr Gangwal's decision.

Hatsun Agro Products Ltd: The Board of Directors of the company have approved investing in the paid-up Equity Share Capital of FP Cygnus Private Limited and Huoban Energy 7 Private Limited not exceeding 26% of the paid-up Equity Share Capital of the above said Companies to consume the Solar Energy captively for the Company’s Plants situate in the States of Karnataka and Maharashtra respectively. Also, the Milk Products Plant in Uthiyur, Kangeyam Taluk, Dharapuram, Tamil Nadu with a capacity of 1 Lakh kg per day is expected to commence commercial production in March 2022. Besides, in the Cattle Feed Plant at Sangola, Maharashtra, trial production for an additional capacity of 3000 MT per month has started and the commercial production is expected to commence by the end of February 2022. The existing capacity of production stands at 2500 MT per month. Also, the company has completed the purchase of lands at Devarapalli Village and Mandal, West Godavari District, Andhra Pradesh for the proposed setting up of a Milk and Milk products Plant with a capacity of 3 LLPD at an estimated Capital outlay of Rs 100 crores. In addition, the company has decided to discontinue the Ready to Eat (“RTE”) business of the company with immediate effect. The business consisted of Pizza. Pasta etc., which were manufactured and sold under the brand name “Oyalo”. The business was affected mainly due to the COVID-19 pandemic for the last 2 years.

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Hinduja Global Solutions (HGS): The company has announced that its subsidiary HGS UK Limited has been selected by the UK Health Security Agency (UKHSA) to provide critical customer support to UK citizens for an initial period of two years, with an option to extend further. The partnership is already underway having launched earlier last week, and the contract could be worth up to £211 million (Rs 2,100 crores) across the term of the contract, employing over 2,000 Work@Home positions across the UK.

Kalpataru Power / JMC Projects: The Board of Directors of Kalpataru Power Transmission Ltd. (KPTL) and JMC Projects (India) Ltd. (JMC) in their respective meetings held on Saturday have approved the scheme of amalgamation which inter alia provides for the merger of JMC with KPTL (Scheme). The merger will accelerate growth and enhance value creation for all stakeholders. Pursuant to the Scheme, JMC’s shareholders (other than KPTL) will be allotted one share of KPTL against every four shares held by them in JMC.

Equitas Small Finance Bank: The Merger Committee of the Board of Directors of the Bank ('Committee') has approved the allotment of 10,26,31,087 Equity Shares of face value Rs 10 each to eligible Qualified Institutional Buyers at the issue price of Rs 53.59 per Equity Share (including a premium of Rs. 43.59 per Equity Share) and reflects a discount of Rs. 2.81 (i.e. 4.98%) on the Floor Price of Rs. 56.40 per Equity Share, aggregating to Rs. 5,499,999,952.33 only, pursuant to the Issue.

GMDC: Gujarat Mineral Development Corporation (GMDC) has received an amendment to its environment clearance from the Union Ministry of Environment and Forest to mining up to a depth of 135 meters from its earlier approved depth of 94 meters at the Tadkeshwar, Lignite Mines.

Federal Bank: Fedbank Financial Services Limited (FedFina) has filed its Draft Red Herring Prospectus (DRHP) with SEBI for the proposed Initial Public Offering (IPO) of its equity shares on February 19, 2022. FedFina is proposing to undertake an initial public offering of equity shares of the face value of Rs 10 each of FedFina ("Equity Shares" and such offering, the Offer), comprising a fresh issue of Equity Shares by FedFina aggregating up to Rs 900 crore (the Fresh Issue) and an offer for sale of up to 1,64,97,973 Equity Shares by the Bank and up to 2,92,16,313 Equity Shares by True North Fund VI LLP. Federal Bank holds approx a 73% stake in the company. 

SBI / Union Bank / Canara Bank / Bank of Maharashtra: Public sector banks namely SBI, Union Bank, Canara Bank and Bank of Maharashtra have subscribed to stakes in asset reconstruction company India Debt Resolution Company Limited (IDRCL). SBI has subscribed 12.3% shares in the asset reconstruction company. Bank of Maharashtra has subscribed for 6.2% stakes in the company while Union Bank and Canara Bank have subscribed for 12.3% and 14.9% stakes in the asset reconstruction company, respectively.

Escorts: Board of Directors have approved allotment of 93,63,726 Equity Shares, of the face value of Rs 10 each, at Rs 2,000 aggregating to Rs 1,872.74 crore, on a preferential basis to Kubota Corporation (Acquirer). Upon such acquisition, the Acquirer holds 16.39% (prior to below reduction) shareholding in the Company. The board also approved the scheme of Capital Reduction of 2,14,42,343 equity shares of the Company held by Escorts Benefit and Welfare Trust subject to the approval of shareholders, NCLT and all applicable statutory authority. The board on November 18, 2021, said that it would consider this proposal.  

Kubota will be classified as a promoter, now. Shareholding post preferential issue and the capital reduction will stand at:

- Promoter 33.72% 

- Public 63.86% 

- Others 2.42% 

Vedanta (Semiconductor PLI): The government has received proposals from five companies in the first phase of Semiconductor PLI. The companies will invest up to Rs 1.53 lakh crore for semiconductor and display fab. Vedanta in Joint Venture with Foxconn, IGSS Ventures Pte, Singapore and ISMC have submitted applications for Semiconductor Fabs. Vedanta and Elest have submitted applications for Display Fabs. However, the proposed proposal will not have a big impact on Vedanta. 

Promoter Action 

Tech Mahindra: Promoter offloaded 0.36% stakes of the company on February 18, 2022.  
MOIL:  Promoter offloaded 1.9 crore shares (0.1% stakes) of the company on February 18, 2022

Fund Action  

Gokaldas Exports: SBI Mutual Fund bought 0.18% stakes of the company on February 17, 2022. With this, the SBI Mutual Fund's stakes have increased from 9.36% to 9.54% in the company. 

SEBI On New Age IPOs: Market regulator Securities and Exchange Board of India (Sebi) has proposed tightening disclosure standards for new-age companies that plan to float initial public offerings (IPOs). According to a discussion paper floated by Sebi on Friday, such companies will have to disclose more details pertaining to how they arrived upon the offer price for their IPOs. The 'Key Performance Indicators' will also have to be mentioned for the issue price. Information will have to be given in the DRHP of IPO of loss-making companies. Key performance indicators to be given 3 years before IPO application. They will also have to provide disclosures about their valuations based on the issuance of new shares and acquisition of shares in the past 18 months before filing draft offer documents. SEBI issued a draft of proposals in its discussion paper on Friday and has set a March 5, 2022, deadline for the public to give their comments.