Stocks in Focus on March 9: LIC IPO, IndusInd Bank, Zydus Lifesciences, Aviation Stocks, Railway Stocks and many more

The benchmark indices ended with sharp gains on Tuesday, March 8, 2022, snapping a four-day losing streak. The barometer index, the S&P BSE Sensex jumped 581.34 points or 1.10% at 53,424.09. The Nifty 50 index advanced 150.30 points or 0.95% at 16,013.45. Both these indices dropped about 6 per cent in the last four sessions. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, March 9, 2022. List of such Stocks:

LIC IPO: Capital markets regulator SEBI on Tuesday approved the DRHP of the State-owned insurance behemoth Life Insurance Corporation of India (LIC). It has released the final observation letter for LIC's DRHP. 

IndusInd Bank: Private sector IndusInd Bank on Tuesday said the microfinance loan disbursals by its subsidiary Bharat Financial Inclusion Ltd (BFIL) between March 1, 2020, and October 31, 2021, was a result of a “technical glitch”, according to the findings of the audit firm Deloitte and the bank has set up a panel to assess its staff’s accountability, if any. The matter relates to allegations of disbursal of microfinance loans by BFIL during the abovementioned period without seeking the consent of the customers. Following receipt of the complaints, the bank took immediate corrective steps, including conducting an internal audit, IT audit and discontinuation of OTP-based authentication for loan disbursal in November 2021.

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Subsequently, it appointed Deloitte Touche Tohmatsu India LLP (Deloitte) to conduct an independent review. The portfolio, net of provisions, where consent recording was an issue amounted to Rs 8.87 crore as of December 31, 2021 (0.03% of the microfinance portfolio). Bank’s microfinance products require the full collection of arrears or repayment of overdue loans outstanding prior to fresh disbursement to a customer. Certain operational issues were highlighted in product rollout. Deloitte suggests improvements in IT and controls. The potential implications of the review findings, including the lapses in product execution and the client consent recording, in terms of inc recognition & provisioning requirement, is Rs 13.5 crore. 

Aviation Stocks: International Flights to and from India to be resumed from March 27, 2022. The Civil Aviation Ministry has suspended the regular international flights in March 2020 in view of the Covid-19 pandemic. The Civil Aviation Ministry said the international operations shall be subject to strict adherence to the Ministry of Health & Family Welfare guidelines for international travel.

Shalimar Paints: The Board of Directors of the company on Tuesday approved the raising of funds of upto Rs 150 crore by creating, issuing, offering and allotting the following securities by way of a preferential issue on a private placement basis. The company will issue upto 30,65,134 warrants to Virtuous Tradecorp Private Limited, an entity belonging to the promoter group of the Company, at Rs 130.5 crore per share to raise upto Rs 40 crore. It will also issue upto 26,81,992 warrants to JSL Limited, an entity belonging to the promoter group of the Company, at Rs 130.5 per share to raise upto Rs 35 crore. It will issue upto 57,47,126 warrants to Hella Infra Market Private Limited, an existing shareholder of the Company which is disclosed as a public shareholder, at Rs 130.5 crore to raise upto Rs 75 crore. 

Zydus Lifesciences: Sentynl Therapeutics Inc., a wholly-owned subsidiary of Zydus Lifesciences Ltd. (formerly known as Cadila Healthcare Ltd.) and BridgeBio Pharma have announced the execution of an asset purchase agreement for the sale of BridgeBio’s NULIBRY (Fosdenopterin) for Injection. Under the terms of the Agreement, Sentynl will acquire global rights to NULIBRY and will be responsible for the ongoing development and commercialisation of NULIBRY in the United States and developing, manufacturing and commercialising Fosdenopterin globally. Sentynl will provide cash payments upon the achievement of certain regulatory milestones. BridgeBio will be eligible to receive commercial milestone payments as well as tiered royalties on adjusted net sales of NULIBRY. NULIBRY is approved by the U.S. Food and Drug Administration (USFDA) to reduce the risk of mortality in patients with molybdenum cofactor deficiency (MoCD) Type-A, an ultra-rare, life-threatening paediatric genetic disorder. 

ISGEC Heavy Engineering Ltd: It has bagged a large order for Cement Waste Heat Recovery Boilers from Shree Cement for their 3.8 MTPA clinker capacity, integrated Cement Plant at Nawalgarh, District Jhunjhunu, Rajasthan.

Petronet LNG: Petronet LNG Limited (PLL) has incorporated a wholly-owned subsidiary company in Singapore under the name ''Petronet LNG Singapore Pte. Ltd.'' on March 7, 2022. The newly incorporated wholly-owned subsidiary Petronet LNG Singapore Pte. Ltd. has been incorporated to carry out business/activities, including but not limited to purchase of LNG on the long, spot and short-term basis and sale of LNG, trading of LNG to Indian and foreign companies, optimization and diversion of LNG under its portfolio, carry out hedging, purchase of LNG under LNG SPAs, sale of LNG to customers, investments in overseas ventures etc. The registered office of the wholly-owned subsidiary company is in Singapore.

Sundaram-Clayton: The board of directors of the Company will meet on Tuesday, March 22, 2022, to consider and declare an interim dividend, if any, to the shareholders of the Company for the year ending March 31 2022. The record date for the purpose of the interim dividend will be March 30, 2022.

TVS Motors: The Board of Directors of the Company is scheduled to meet on March 18, 2022, to consider and approve an interim dividend, if any, to the shareholders of the Company for the year ending March 31 2022. The record date for the purpose of the interim dividend will be March 28, 2022.

Titan: The company, reportedly, is in advanced talks to buy a majority stake in home-grown wearables maker Noise. The transaction is likely to value Noise at around Rs 700-800 crore.

Railway Stocks: Indian Railways, reportedly, will soon float a mega tender to procure 30,000 freight wagons every year over the next three years at an estimated cost of over Rs 35,000 crore. The tender is expected to be issued in Q1FY23.   

Tata Motors + Olectra Green + JBM Auto: Delhi Transport Infrastructure Development Corporation (DTIDC) has started the process of setting up a dedicated electric vehicle (EV) cell by inviting applications for the appointment of a chief executive officer and professionals to handle its day-to-day work. The primary objective of the EV Cell is to support and accelerate the implementation of the electric vehicle policy through facilitating the disbursement of demand incentives and charging stations.