Stocks in Focus on November 9: Paytm IPO, Sapphire Foods IPO, Britannia, Route Mobile to Cadila and many more
At the stock markets, the S&P BSE Sensex climbed 478 points, or 0.80%, to end at 60,546, on Monday, November 8, 2021. The Nifty 50 index advanced 152 points, or 0.85%, to 18,069.
At the stock markets, the S&P BSE Sensex climbed 478 points, or 0.80%, to end at 60,546, on Monday, November 8, 2021. The Nifty 50 index advanced 152 points, or 0.85%, to 18,069. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, November 9, 2021. List of such five stocks:
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IPO Update: Paytm IPO + Sapphire Foods IPO
Paytm IPO: The initial public offering (IPO) of One 97 Communications Limited, the parent company of India's leading digital financial services company, Paytm, was subscribed 0.18 times on Monday, the first day of subscription. The Qualified Institutional Buyers (QIBs) portion of the public issue was subscribed 0.06 times, while the Non Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 0.02 times and 0.78 times, respectively. The issue will come to a close on Wednesday, November 11, 2021. The company has fixed the price band at Rs 2,080-2,150 per share for the offer as it seeks to raise around Rs 18,300 crore from the issue. The bid lot size is 6 Equity Shares and in multiples thereof. The issue comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale of Rs 10,000 crore (including Anchor portion of 3,83,02,326 Equity shares). Paytm's fundraising plan from the IPO is the biggest ever to date in India.
Sapphire Foods IPO: Sapphire Foods India Limited, a franchise operator of KFC and Pizza Hut restaurants, will open its initial public offering (IPO) for subscription today, i.e., on Tuesday, November 9, 2021. Sapphire Foods has fixed the price band of the issue at Rs 1,120-1,180 per share. It seeks to raise up to Rs 2,073.25 crore through the issue. The offer will close on Thursday, November 11, 2021. The IPO will be entirely an offer for sale (OFS) of 1,75,69,941 equity shares by promoters and existing shareholders. Investors can bid for a minimum of 12 equity shares and in multiples of 12 shares thereafter. Besides, the KFC and Pizza Hut operator has mopped up Rs 933 crore from 53 anchor investors, ahead of its IPO opening. The company in consultation with merchant bankers has finalised allocation of 79,06,473 equity shares to anchor investors, at Rs 1,180 per equity share, as per the BSE filing. Marquee investors who participated in the anchor book were the Government of Singapore (10.8%), Fidelity Fund(16.1%), Abu Dhabi Investment (7.5%), Ashoka India (7.5%), Morgan Stanley (5.4%) and ICICI Prudential (5.4%) among others.
Post Market Earnings
Britannia: The biscuit maker has reported a 22.8% YoY decline in its consolidated profit at Rs 382 crore for the quarter ended September 30, 2021, which was below Zee Business analysts’ expectations of Rs 420 crore. It had posted a profit of Rs 495 crore in the year-ago quarter. Its revenue from operations grew 5.5% YoY to Rs 3,607 crore as against Rs 3,419 crore posted last year. EBITDA declined by 17.3% YoY to Rs 558 crore as against Rs 675 crore posted last year. The food and beverage company's margins also declined to 15.5% in Q2FY22 as against 19.75% posted in Q2FY21.
Aurobindo Pharma: The pharmaceutical company's reported a 13.63% YoY decline in the consolidated profit at Rs 697 crore for the quarter ended September 30, 2021, as against a profit of Rs 807 crore posted in the year-ago quarter. Its revenue from operations declined 8% YoY to Rs 5,942 crore as against Rs 6,483 crore posted last year. Revenue after excluding Natrol, dropped by 2% YoY from Rs 6,069 crore. EBITDA dropped by 17% YoY to Rs 1,186 crore as against Rs 1,433 crore posted last year. After excluding Natrol, the EBITDA dropped by 8.4% YoY from Rs 1,295 crore. Its margin declined to 20% in Q2FY22 as against 22% posted in Q2FY21. Besides, the company has filed 27 ANDAs including 5 injectables with USFDA in Q2FY22, which is the highest ever ANDA filings in a quarter by the Company. It received final approval for 7 ANDAs including 2 injectables and 1 505(b)(2) NDA in Q2FY22. The company has launched 6 products including 3 injectables during the quarter. Besides, the board has approved a second interim dividend of Rs 1.50 per equity share for the Financial Year 2021-22. The Company has fixed November 18, 2021, as the Record Date for payment of the second interim dividend, which will be paid on or before November 30, 2021.
Andhra Paper: The integrated paper and pulp manufacturer Andhra Paper has reported a profit of Rs 18.87 crore in the quarter ended September 30, 2021, as against a net loss of Rs 15.93 crore posted in the year-ago quarter. Revenue rose 126% to Rs 349 crore in the reported quarter as against Rs 154.56 crore posted during the previous quarter ended September 2020. It posted a positive EBITDA of Rs 35.03 crore as against a negative EBITDA of Rs 1.68 crore posted last year. It also posted a positive margin of 10% in Q2FY22 as against a negative margin of 1.08% posted last year.
Pitti Engineering: The company has reported a 29% YoY rise in the consolidated profit at Rs 12.9 crore for the quarter ended September 30, 2021, as against a profit of Rs 10 crore posted in the year-ago quarter. Its revenue from operations grew 79% YoY to Rs 242.22 crore in the period under consideration from Rs 135.37 crore posted last year. Its EBITDA grew by 43% in the reported quarter to Rs 35.03 crore as against Rs 24.45 crore posted during the previous quarter ended September 2020. However, the margin contracted to 14.4% in Q2FY22 from 18% posted in Q2FY21.
HG Infra: Construction engineering company has reported a 97% YoY rise in the consolidated profit at Rs 74.5 crore for the quarter ended September 30, 2021, as against a profit of Rs 37.9 crore posted in the year-ago quarter. Its revenue from operations grew 62% YoY to Rs 781 crore in the period under consideration from Rs 483 crore posted last year. Its EBITDA grew by 66% in the reported quarter to Rs 151 crore as against Rs 90.7 crore posted during the previous quarter ended September 2020. The margin rose to 19.30% in Q2FY22 from 18.70% posted in Q2FY21.
Tamil Nadu Petroproducts: Chemical manufacturer has reported an 80% YoY rise in the consolidated profit at Rs 46.4 crore for the quarter ended September 30, 2021, as against a profit of Rs 25.8 crore posted in the year-ago quarter. Its revenue from operations grew 62% YoY to Rs 459 crore in the period under consideration from Rs 284 crore posted last year. Its EBITDA grew by 76% in the reported quarter to Rs 64.3 crore as against Rs 36.6 crore posted during the previous quarter ended September 2020. The margin rose to 14.02% in Q2FY22 from 12.85% posted in Q2FY21.
Action construction: The material handling and construction equipment manufacturer has reported a 57% YoY rise in the consolidated profit at Rs 22.9 crore for the quarter ended September 30, 2021, as against a profit of Rs 14.6 crore posted in the year-ago quarter. Its revenue from operations grew 34% YoY to Rs 360 crore in the period under consideration from Rs 268 crore posted last year. Its EBITDA grew by 43% in the reported quarter to Rs 34.6 crore as against Rs 24.2 crore posted during the previous quarter ended September 2020. The margin rose marginally to 9.59% in Q2FY22 from 9.04% posted in Q2FY21.
Ujjivan Small Finance Bank: The small finance bank has reported a consolidated loss of Rs 273.8 crore for the quarter ended September 30, 2021, as against a profit of Rs 96 crore posted in the year-ago quarter. Its net interest income (NII) fell 17% YoY to Rs 391 crore from Rs 470 crore posted last year. During the quarter, Ujjivan SFB’s gross non-performing asset (GNPA) rose sharply to 11.8% from 9.8% in Q1FY22 and 1.2% in Q2FY21. Net non-performing assets (NNPA) rose to 3.3% as of September-end from 2.7% in Q1FY22 and 0.3% in the corresponding quarter of the previous year.
EID Parry: The company engaged in the business of Sugar and Nutraceuticals has reported a 23.3% YoY drop in the consolidated profit at Rs 243.8 crore for the quarter ended September 30, 2021, as against a profit of Rs 317.8 crore posted in the year-ago quarter. Its revenue from operations grew 19.6% to Rs 6,978.4 crore as against Rs 5,836.2 crore posted last year. EBITDA dropped by 14.8% YoY to Rs 746.1 crore in the reported quarter from Rs 876 crore posted last year. Its margin has contracted to 10.7% in Q2FY22 from 15% posted in Q2FY21. The company has declared an interim dividend of Rs 5.5 per share.
Route Mobile: The Cloud Communication Platform provider Route Mobile has launched its qualified institutional placement (QIP) on Monday, November 8, 2021, to raise up to Rs 750-1,124 crore. The floor price has been fixed at 1,949.24 per share (a discount of 2% on CMP of 1987.70 at BSE). The Company may, at its discretion, offer a discount of not more than 5% on the floor price so calculated for the QIP. Besides, the Fund Raising Committee of the Company will meet on Friday, November 12, 2021, to consider and determine the issue price of Equity Shares to be issued pursuant to the QIP, including any discount on the floor price.
Cadila: Zydus Cadila has received an order to supply one crore doses of ZyCoV-D, the world’s first Plasmid DNA Vaccine, to the Government of India at Rs 265 per dose and the needle-free applicator being offered at Rs 93 per dose, excluding GST. The pricing has been decided in consultation with the Government of India. Three doses of ZyCoV-D will cost Rs 1,074.
JBM Auto: The Company has received an order for the supply of 200 Air Conditioned Fully Built Low Floor Electric Buses of 12 Meter Length for Delhi Transport Corporation under Govt. of India Flagship Fame II (Faster Adoption and Manufacturing of Electric Vehicle) Policy.'
Reliance Industries: Reliance Eagleford Upstream Holding, LP (“REUHLP”), a wholly-owned step-down subsidiary of Reliance Industries Limited (“RIL”), announced the signing of agreements with Ensign Operating III, LLC (“Ensign”), a Delaware limited liability company to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA. With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America. The sale is considerably higher than the current carrying value of the assets.
Vedanta: Mining major Vedanta has announced the delisting of its American depository shares (ADSs), representing equity shares of the Company, from the New York Stock Exchange (NYSE), which become effective at the close of trading on NYSE on November 08, 2021. As a consequence of the delisting becoming effective, termination of the deposit agreement under which the ADRs were issued will also become effective close of trading on NYSE on November 8, 2021, the company said in its filing at the BSE.
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