Key Stocks to Monitor: Paytm, Eris Life, Biocon, Ashok Leyland, Vedanta, IIFL Finance

On Friday, March 15, the global market mood remains somber due to the recent red-hot wholesale inflation in the US that reduced early rate cut bets. In February, producer prices in the US grew at 0.6 percent which is higher than the street estimate of 0.3 percent growth. As of 7:35 AM, Gift Nifty was quoting over 100 points lower at 22,148 levels.

Paytm: Paytm Payments Bank faced a deadline of March 15 to cease operations. However, on Thursday, the National Payments Corporation of India granted Paytm a third-party application provider license. This license will allow Paytm to offer an alternative payment method to its customers via its app following the shutdown of its banking division due to regulatory non-compliance. Additionally, there are reports of potential downsizing at Paytm, with a potential 20 percent reduction in team sizes. Nevertheless, the company has described this as a routine employee assessment.

Eris Lifesciences, Biocon: Eris Lifesciences, a company specializing in branded formulations, has announced its plan to acquire the domestic branded formulation business of Biocon Biologics, Biocon's biosimilar division, for Rs 1,242 crore. The deal was officially announced by both companies on Thursday. This acquisition will be funded through debt and will enable Eris to enter the Indian injectables market, which is worth over Rs 30,000 crore. Additionally, the deal will bring two prominent insulin brands, Basalog and Insugen, under Eris's umbrella, as confirmed by the company's exchange filing.

Ashok Leyland: Creador, a private equity firm that focuses on business investments in South and Southeast Asia, plans to buy a 19.6 percent stake in Hinduja Tech Ltd, a global mobility engineering R&D services company and a subsidiary of Ashok Leyland, for $50 million. This investment will value Hinduja Tech at $255 million after the infusion of capital. According to the company, this funding will help Hinduja Tech expand its research and development capabilities, increase its global presence, and upgrade its advanced laboratories.

Vedanta: According to a report from Credit Sights, a company under FitchSolutions, the proposed business demerger by the company could face significant obstacles from minority shareholders and creditors. The report suggests that the planned demerger of Vedanta Ltd's other businesses may encounter substantial challenges from minority shareholders and/or creditors, which could potentially result in delays or even the deal being derailed. Furthermore, the report highlights that there have been minimal updates on the progress of the demerger since its announcement in September 2023.

Novartis India: The company, which is a subsidiary of the Swiss pharmaceutical giant Novartis AG, is presently in negotiations to finalize a distribution partner for the upcoming launch of Asciminib. This novel treatment targets the ABL myristoyl pocket (STAMP) and is a first-of-its-kind for chronic myeloid leukemia (CML), according to Amitabh Dube, the Country President and Managing Director of the company. Dube, in an email conversation with Mint, stated that the company plans to introduce the treatment in India by the end of the month but did not disclose any specific details about potential partnerships for the brand. He added, "We are gearing up for the Asciminib launch in India this month. However, it's too early to discuss any brand partnerships in India".

IIFL Finance: On March 14, Fitch, a ratings agency, placed IIFL Finance on a 'Rating Watch Negative' (RWN). This happened after the Reserve Bank of India (RBI) issued a directive on March 4, instructing IIFL Finance to stop new gold-backed lending and associated off-balance-sheet funding transactions. The 'Rating Watch Negative' means that the rating could stay the same or be downgraded once the Watch is resolved. According to Fitch, the implications of these restrictions would depend on how long they last and whether they affect other areas of IIFL Finance's operations.

Religare Enterprises: Religare Enterprises, a financial services company, plans to infuse Rs 15 crore of new capital into its subsidiary, MIC Insurance Web Aggregator. However, the proxy advisory firm, InGovern, has expressed concerns over this proposal. According to InGovern's research report, the Religare board has not provided any financial or valuation details about MIC, nor have they justified the need for the fund infusion. Religare is currently seeking shareholder approval for this capital infusion through share subscription, with the postal ballot results due on March 23.

J Kumar Infraprojects: The Mumbai-based company is expecting a revenue growth of 16-17 percent in the upcoming fiscal year, which is an increase from the earlier projected 15 percent. The Managing Director of the company, Nalin Gupta, mentioned that these growth estimates are supported by a strong order book. The company is expected to have orders worth approximately Rs 19,000 crore by the end of the current fiscal year, and they anticipate an inflow of around Rs 7,000-8,000 crore in orders the following year. Gupta expressed confidence in the company's progress towards its goal of achieving a billion-dollar revenue by the 2027 fiscal year. He also stated that the company's EBITDA margins are projected to stay within the range of 14-15 percent.

IRB Infrastructure Developers: IRB Infrastructure Developers Ltd announced on Thursday, March 14th that Ferrovial's subsidiary, Cintra, had agreed to acquire a 24 percent stake in IRB Infrastructure Trust from GIC Affiliates for $810 million (approximately Rs 6,720 crore). The deal is expected to be completed by the end of April 2024, according to Ferrovial.

Navin Fluorine International: Navin Fluorine International Ltd, a manufacturer of fluorochemicals, announced on Thursday, March 14, that its board of directors has approved an investment of approximately Rs 250 crore in its fully-owned subsidiary, Navin Fluorine Advanced Sciences Ltd (NFASL). This investment, endorsed by the Audit Committee, will be made through the subscription of non-cumulative, non-convertible, non-participating, redeemable preference shares. The investment will be mainly used to settle existing inter-corporate deposits and to address the further business financing needs of NFASL.