Stocks on Focus: BHEL, IDFC First Bank, Dr. Reddy's, REC, Chalet Hotels, Alkem

By siliconindia  |  Thursday, 28 March 2024, 09:45:22 AM IST

Stocks on Focus: BHEL, IDFC First Bank, Dr. Reddy's, REC, Chalet Hotels, Alkem
The Indian benchmark indices are expected to experience a volatile start on March 28, which is Thursday, due to uneven global trends. At 7:30 AM, the Gift Nifty futures were up by 5 points in comparison to the Nifty 50 futures at 22,172. As of Thursday morning, markets in Asia are showing mixed signals, with Japan's Nikkei 225 experiencing a 1% loss and trading below 40,400 levels, while the broad-based Topix has slipped by 1.16%.
Bharat Heavy Electricals, Adani Power: A state-owned company has received a contract from Adani Power to establish the Raigarh Phase-II Thermal Power Plant in Raigarh, Chhattisgarh. As per the exchange filing, BHEL will provide equipment such as a Boiler, Turbine, and Generator, and oversee the erection and commissioning of the 2x800 MW power project, which will be based on supercritical technology. The total cost of the project, excluding GST, is estimated to be Rs 4,000 crore. The first unit is expected to be delivered within 31 months of the contract execution, while the second unit is scheduled for delivery within 35 months.
IDFC First Bank: Cloverdell Investment, which is an affiliate of Warburg Pincus, is contemplating the sale of its stake in IDFC First Bank, which is a private lender. According to a report by CNBC-TV18, the company is expected to sell its entire 2.25 percent stake through block deals on March 28. The estimated value of the offer is around Rs 1,191.40 crore, and the company is planning to sell roughly 15.9 crore shares. The base price has been set at Rs 75 per share, which is a 4 percent discount to the current market price.
Dr. Reddy’s: A pharmaceutical company based in Hyderabad has recently announced a new partnership with Sanofi Healthcare India to enhance the marketing and distribution of Sanofi's vaccine brands across India. The two companies will collaborate to promote both pediatric and adult vaccine brands, including Hexaxim, Pentaxim, Tetraxim, Menactra, FluQuadri, Adacel, and Avaxim 80U. These brands have collectively generated sales of approximately Rs 426 crore ($51 million) as of IQVIA MAT February 2024. Sanofi has confirmed that they will remain the owner of these vaccines, and will continue to manufacture and import them to India.
REC: On March 27, the Board of REC Ltd approved the comprehensive market borrowing programme of the PSU firm, valued at Rs 1.6 lakh crore for FY25. The Board also sanctioned a market borrowing programme of Rs 1.45 lakh crore for FY25, which will be implemented through the issuance of domestic bonds and debentures. In addition, the Board authorized securing a short-term loan of Rs 15,000 crore from various sources such as banks, financial institutions, NBFCs, and commercial papers.
Chalet Hotels: The board of directors of Chalet Hotels has approved a Qualified Institutional Placement (QIP) to raise funds of up to Rs 1,200 crore. According to the filing submitted to the stock exchange, the floor price for the QIP is Rs 780.76 per equity share. However, the company is authorized to offer a discount of up to 5 percent on this price. The final issue price has been set at Rs 755 per share.
Alkem Laboratories: On March 27, the pharmaceutical company announced that the US Food and Drug Administration (USFDA) conducted an inspection of its manufacturing facility in Baddi from March 19 to March 27, 2024. The company also disclosed that it was issued a Form 483, which listed ten observations, as per a filing with the stock exchange. The company stated, "USFDA conducted an inspection at our Baddi manufacturing facility from March 19 to March 27, 2024. We received a Form 483 with ten observations at the end of the inspection".
Zydus Lifesciences: On March 27, the company made an announcement that the US Food and Drug Administration (US FDA) has issued four observations regarding the injectable facility of the company in Ahmedabad. As per the exchange filing by Zydus Life, the US FDA conducted an inspection of the SEZ Onco Injectable manufacturing plant from March 18th to March 27th. The company clarified that no observations were made related to data integrity as a result of the inspection. In the press statement, it was added that "The Company will work closely with the USFDA to address the observations".
Bajaj Finance: Bajaj Housing Finance, which is a subsidiary of Bajaj Finance Ltd, has initiated initial discussions with several investment banks regarding a potential initial public offering (IPO). Three sources familiar with the matter have stated that the IPO is expected to value the company between $9 billion and $10 billion, in accordance with regulatory standards. According to the existing regulatory timeline set by the RBI, Bajaj Housing Finance is required to be listed by September 2025.
Paytm: According to a report from Moneycontrol, One97 Communications Ltd, the parent company of Paytm, is close to adding HDFC Bank as its third partner for merchant migration. Paytm has already partnered with Axis Bank and Yes Bank as merchant acquisition partners, both of which went live on the Paytm UPI platform on March 15. The report suggests that HDFC Bank and SBI are expected to start operating as payment service provider (PSP) banks for Paytm's third-party application provider (TPAP) business this week.
Life Insurance Corporation of India: LIC, on Tuesday, announced that they have received a demand notice from tax authorities for an approximate amount of Rs 178 crore. This is due to the underpayment of Goods and Services Tax (GST) that spans over two fiscal years. As per the regulatory filing by LIC, the Additional Commissioner of Central GST & Central Excise in Jamshedpur has issued a communication/demand order to LIC for interest and penalty. The demand notice is regarding the premature utilization of Input Tax Credit under the reverse charge mechanism.

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