Stocks in Focus on September 6: Barbeque Nation, ICICI Lombard, Bharat Forge, M&M Finance to Reliance Industries; here are 5 Newsmakers of the Day
The Sensex and the Nifty on Friday, September 3, 2021, climbed to lifetime highs. Both indices climbed around half a per cent even as the cues from the global equity markets were mixed.
The Sensex and the Nifty on Friday, September 3, 2021, climbed to lifetime highs. Both stocks climbed around half a per cent even as the cues from the global equity markets were mixed. The Sensex closed above the 58,000-mark while the Nifty ended above the 17,300 level. The BSE Sensex gained 277.41 points, or 0.48 per cent, to finish at 58,129.95. The NSE Nifty also surged 89.45 points, or 0.52 per cent, to settle at 17,323.60. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, September 6, 2021. List of such five stocks:
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Barbeque Nation: Restaurants chain Barbeque Nation Hospitality Ltd on Saturday said it has raised nearly Rs 100 crore through preferential issue of equity shares to three different investors, including Massachusetts Institute of Technology and Motilal Oswal Equity Opportunities Fund among others. The company has allotted 11.7 lakh shares to three investors at a premium of Rs 844 by preferential allotment. Zee Business on August 17, 2021, reported that the preferential issue would be cleared by the exchange soon. The matter was stuck after the PNB Housing Finance case. The valuation report that was shared with the board on July 16, 2021, is less than the preferential allotment rate.
ICICI Lombard & Bharti AXA: The insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has approved the demerger of Bharti AXA General Insurance. Bharti AXA’s general insurance business will be merged with India’s largest private sector general insurer, ICICI Lombard. The final approval for the merger of the two general insurance businesses comes over a year after ICICI Lombard bought out Bharti AXA in an all-stock deal that reportedly valued the latter at over Rs 2,500 crore. The Appointed Date for the Scheme is April 1, 2020. The demerger and transfer of general insurance business, as envisaged in the Scheme, shall be effective within 3 days from the date of the final approval. Besides, IRDAI has also approved ICICI Bank Limited to bring down its stake in ICICI Lombard General Insurance Company Limited to 30%, subject to compliance with the provision of the Insurance Act, 1938 and applicable IRDAI regulations. Presently, ICICI Bank holds a 51.87% stake in ICICI Lombard.
Bharat Forge: The company has decided to consolidate its EV business initiative under KPL, a wholly-owned subsidiary of the company for a better strategic alignment. The company has approved the transfer of the company’s stake in Tork Motors Private Limited to KPL in consideration of the subscription of equity shares of the KPL by the company. Through this transfer of shares, Tork will become an Associate Company of KPL. It has also decided to infuse up to Rs 35 crore in KPL for subsequent investment by KPL in Kalyani Precision Machining, Inc. renamed for the purpose of EV initiatives as Kalyani Mobility, Inc. ("KMI"), KPL thereby acquiring control in KMI. Kalyani Power Train Limited is a wholly-owned subsidiary of the company.
M&M Finance: The company in its business update for August 2021 said, in August 2021, the business continued its momentum with the disbursement of more than Rs 2,000 Crore for the second month in a row. The total disbursement at ~Rs 2,150 Crore delivered ~57% YoY growth, albeit on a lower base of August 2020, which was impacted by the first wave of COVID-19. The collection efficiency was reported at ~ 97% for August 2021, further improving on 95% reported in July 2021 (collection efficiency in April, May and June was 72%, 67%, 90% respectively). With the opening of the economy and improved mobility, the Company witnessed a meaningful reduction in the NPA contracts during the month as customer cash flows improved. We believe that this is a very encouraging sign. The Company expects this downward trajectory to continue in September and in months to come. The Company enjoyed a comfortable liquidity position on its Balance Sheet as of date.
Reliance Industries: Wholly owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL) has acquired 2,28,42,654 equity shares of Rs.10 each of Strand Life Sciences Private Limited (“Strand”) for a cash consideration of Rs 393 crores. A further investment of up to Rs 160 crore is expected to be completed by March 2023. The total investment will translate into ~80.3% of equity share capital in Strand on a fully diluted basis. Besides, Reliance Industries is reportedly set to make a $ 570 crore non-binding offer to acquire a controlling stake in T-Mobile Netherlands BV, the country’s largest telecom operator. The company aims to expand its telecom business in the European market.
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