Stocks in Focus on March 31: ONGC, Axis Bank, Max Healthcare, Tata Motors, telecom Stocks and more

In Indian stock markets, the Sensex climbed more than one per cent on Wednesday, March 30, 2022, while the Nifty gained one per cent. Both stock indices rose amid positive cues from global share markets. The barometer index, the S&P BSE Sensex rose 740.34 points or 1.28% at 58,683.99. The Nifty 50 index gained 172.95 points or 1% at 17,498.25. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Thursday, March 31, 2022. List of such Stocks:

IPO Update: Hariom Pipe IPO + Veranda Learning IPO + Uma Exports IPO

Hariom Pipe IPO: The Rs 130.05-crore initial public offering of Hariom Pipe Industries was subscribed 0.67 times on Wednesday, March 30, 2022, the first day of bidding. The portion reserved for retail individual investors (RIIs) was subscribed 1.88 times. The Non-Institutional Investors (NIIs) portion was subscribed 0.03 times. The qualified Institutional Buyers (QIBs) portion was not subscribed. Hyderabad-based Hariom Pipe Industries has been fixed the price band at Rs 144-153 per share. Investors can bid for a minimum of 98 shares and in multiples of 98 shares thereafter. The offer will close on April 5, 2022.

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Veranda Learning IPO: The Rs 200-crore initial public issue (IPO) of Veranda Learning Solutions was subscribed 1.31 times on Wednesday, the second day for the subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed only 0.28 times and the Non-Institutional Investors (NIIs) portion was subscribed 1.06 times. The portion reserved for Retail Individual Investors (RIIs) was subscribed 7 times. The hybrid educational technology firm has fixed the price band at Rs 130-137 per share. The retail investors can bid for a lot of 100 equity shares and in multiples of 100 shares thereof. The IPO of Veranda Learning Solutions will remain open till March 31, 2022.

Uma Exports IPO: The Rs 60-crore initial public offering (IPO) of Uma Exports has witnessed a strong response from retail investors and closed with 7.67 times subscriptions on the last day for subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 2.81 times and Non-Institutional Investors (NIIs) was subscribed 2.22 times. The portion reserved for retail individual investors (RIIs) was subscribed 10.11 times. The company had fixed a price band for its public issue at Rs 65-68 per share and retail investors were allowed to bid for the issue in a lot of 220 Equity Shares and multiples thereof.

ONGC: The government's Offer-For-Sale (OFS) in India's top oil and gas producer was subscribed 3.57 times by non-retail investors. The government will exercise the Green Shoe option. The OFS sale will open for retail investors today. The government is selling 1.5% stakes in ONGC at a floor price of Rs 159 apiece.

Axis Bank:  Private lender Axis Bank will acquire Citibank's India consumer business for Rs 12,325 crore in an all-cash deal. The transaction comprises the sale of the consumer businesses of Citibank India, which include credit cards, retail banking, wealth management and consumer loans. The acquisition is likely to be completed in the next 9-12 months. Post the acquisition, Axis Bank will have 2.85 crore Savings Accounts, 2.3 lakh+ Burgundy customers and 1.06 crore Cards. With this acquisition, 30 lakh customers of Citi will also be transferred to Axis Bank. The private lender Axis Bank has said that with the deal, its card balance sheet would increase by 57% while the credit card customer base will go up by 31%. Moreover, the wealth and private banking portfolio will add great value to the Axis Burgundy business, further accelerating its growth ambitions in that segment. On an overall basis, the proposed transaction will add 7% to the Bank’s deposit base (with a 12% increase in CASA) and a 4% increase in advances.

Max Healthcare: Private equity fund Kayak Investments, a KKR-affiliated entity, will sell a stake worth $50 crore (Rs 3,750 crore) in Max Healthcare via a block deal today. (The base size of the deal stands at $37.5 crore or Rs 2,800 crore). The price band has been fixed at Rs 340-361 per share. A discount of 0-5% can be available on the deal. 

Tata Motors: The automotive manufacturing arm of conglomerate Tata Group on Wednesday said that climate-focused private equity fund TPG Rise has invested Rs 3,750 crore in its wholly-owned subsidiary of the Company, viz., Tata Passenger Electric Mobility Limited. This is the first tranche of the deal that was signed between TPG and Tata Motors on October 12, 2021, where TPG pledged an investment of Rs 7,500 crore in the latter's electric vehicle subsidiary - Tata Motors Electric Mobility Ltd.

Tata Steel: The steel major on Wednesday said it will have executed an asset transfer agreement for the acquisition of ferroalloys producing assets of Odisha-based Stork Ferro and Mineral Industries for Rs 155 crore in an all-cash deal. Tata Steel transferred its entire stake in Tata Steel Special Economic Zone Limited to Tata Steel Utilities and Infrastructure Services for consideration of Rs 11.85 crore. Besides, the company invested Rs 11700 crore in Tata Steel Long Products Limited through Non-Convertible Redeemable Preference Shares.

IIFL Wealth: Bain Capital will buy 24.98% stakes in the company at Rs 1,661 per share. It will buy the stakes from General Atlantic Singapore Fund and FIH Mauritius Investments Ltd. 

HAL: The Cabinet Committee on Security (CCS) has approved the procurement of 15 Light Combat Helicopter Limited Series Production at the cost of Rs 3,887 crore from HAL. Rs 377 crore has been sanctioned for the creation of basic infrastructure.  

MSTC: Government has invited global bids for the strategic sale of Ferro Scrap Nigam Ltd (FSNL) and has released a Preliminary Information Memorandum (PIM). The last date for sending bids is May 5, 2022. FSNL is a 100% subsidiary of MSTC. The Union Cabinet gave in-principle approval for disinvestment on October 27, 2016.

Telecom Update: Telecom Regulatory Authority of India (TRAI) has released its monthly subscriber report and said Bharti Airtel has added 7.14 lakh, new subscribers, in January 2022. Reliance Jio lost 93.2 lakh customers, said the monthly subscriber report of the Telecom Regulatory Authority of India (TRAI). Vodafone Idea has lost 38 lakh subscribers. 

Kirloskar Electric: The company has executed a Sale Deed affecting the sale of the Company’s non-core asset situated at Hubli for a consideration of Rs 100 crore.

Sundram Fasteners: Automotive components manufacturer Sundram Fasteners Ltd has said that the Ministry of Heavy Industries (MHA) has approved its application under the Component Champion Incentive Scheme of the PLI Scheme. With this, the company will invest Rs 350 crore to make Advanced Automotive Tech (ATT) components for EVs and Internal Combustion Engine vehicles.

Cosmo Films: The company has announced expansion by setting up a CPP film production line at Aurangabad with an annual rated capacity of 25,000 MT. The CPP line will require an investment of about Rs 140 crore to be funded through internal accruals and debts and is expected to commence commercial production in 2 years.

BULK DEALS  

Stylam Industries: Abakkus Growth Fund-2 bought 3.13 lakh shares at Rs 900/share. Lighthouse Emerging India Investors sold 4.25 lakh shares at Rs 900.18/share. 
RBL Bank: Integrated Core Strategies (Asia) Pte bought 40.36 lakh shares at Rs 129.37/share. Nippon India MF sold 51.02 lakh shares at Rs 129.03/share.