Stocks on Focus: Paytm, Godrej Properties, RattanIndia, Protean eGov, Finolex

On Tuesday, April 9th, 2024, the Indian stock markets reached record highs. The BSE S&P Sensex rose above 75,000 points, hitting a high of 75,124, while the NSE Nifty achieved a summit of 22,768. However, due to profit-taking at higher levels, the benchmark indices ended marginally in the red. At 07:20 AM, Gift Nifty futures showed that the Nifty may open on a positive note, quoting around 22,830 compared to the previous day's close of 22,643 on the NSE Nifty.

Paytm: One97 Communications, the parent company of Paytm, has seen a decline in its UPI market share, dropping to 9 percent in March according to NPCI data. This is the lowest it has been in the last four years. This decline is linked to regulatory restrictions placed on its associate, Paytm Payments Bank Limited (PPBL), by the Reserve Bank of India (RBI). In February, before the payments bank issue arose, Paytm's UPI market share had already fallen to 11 percent from 11.8 percent in January. In other news, the shareholding pattern for the quarter ending March 2024 indicates that domestic retail investors have increased their stakes in Paytm by 1.68 percent. Retail investors now hold a 14.53 percent stake in Paytm, up from 12.85 percent previously, while mutual funds held a 6.15 percent stake in Paytm for the quarter ending on March 31, up from 4.99 percent in the previous quarter, according to the filings.

Godrej Properties: The Real Estate Regulatory Authority in Gurugram has refused to grant an extension for the Godrej Air Phase 4 project, which is a group housing project being developed by Godrej Properties in Sector 85 of Gurugram. The reason for the rejection was the persistent non-compliance with the Real Estate (Regulations & Development) Act 2016. Despite several reminders, the promoter of the project failed to rectify the deficiencies in the application, including discrepancies between the bank balance details provided in the Quarterly Progress Report (QPR) and the CA certificate, as well as license renewal.

RattanIndia Power: Ankur Mitra has resigned from his position as the Chief Financial Officer (CFO) and key managerial personnel of the company, effective from April 9. On the same date, Manish Ratnakar Chitnis has been appointed as the new CFO by the board. Furthermore, Gaurav Toshkhani has been named as the Company Secretary (CS) and key managerial personnel, effective immediately, succeeding Lalit Narayan Mathpati.

Protean eGov Technologies: According to reliable sources, an IT solutions company is getting ready to launch a Qualified Institutional Placement (QIP) offering. The QIP is expected to have a base issue size of Rs 170 crore, with a green shoe option of Rs 75 crore, as reported by CNBC-TV18. Equirus has been selected as the banker for the transaction.

Finolex Industries, Adani Enterprises: Finolex Industries, a PVC pipe manufacturer, has sold its leasehold rights for a 25-acre land parcel in Pimpri, near Pune, to Terravista Developers, a company of the Adani Group for Rs 470 crore. The deal has been confirmed by documents obtained by CRE Matrix, a firm that specializes in real estate data analytics. The Maharashtra Industrial Development Corporation (MIDC) had initially leased the land to Finolex Industries. AdaniConneX, a joint venture between Adani Enterprises and US-based EdgeConneX, plans to develop the land into a large data center.

Aditya Birla Fashion and Retail: The company has established a new entity, Aditya Birla Lifestyle Brands to facilitate the proposed separation of the Madura Fashion and lifestyle businesses from the parent company, as announced earlier.

IndusInd Bank: IndusInd International Holdings (IIHL), which is the promoter of IndusInd Bank has signed a definitive agreement with Invesco India Asset Management to form a joint venture. According to the agreement, IIHL will acquire a 60 percent stake in Invesco India Asset Management, while Invesco Limited will retain a 40 percent stake in the newly created joint venture. Both IIHL and Invesco will be classified as sponsors of the joint venture.

ICICI Lombard General Insurance, PB Fintech: On April 9, a leading general insurance company, ICICI Lombard, announced its strategic alliance with Policybazaar, a digital insurance platform. The goal of this partnership is to combine ICICI Lombard's diverse product portfolio with Policybazaar's extensive reach to offer accessible insurance solutions to approximately 1 crore customers. The collaboration will provide customers with access to a broad spectrum of insurance products, such as motor insurance, health insurance, travel insurance, home insurance, and business insurance, as stated in a joint statement released by the companies.

Lupin: A pharmaceutical company has recently launched its first generic version of Oracea (Doxycycline capsules, 40 mg) in the United States. The United States Food and Drug Administration (US FDA) has approved Doxycycline capsules for the treatment of inflammatory lesions (papules and pustules) of rosacea in adults. According to IQVIA MAT data as of February 2024, these capsules, which are used exclusively for this purpose, have recorded an estimated annual sales figure of $128 million in the US.

Shyam Metalics and Energy: A metals manufacturing company has announced its plans to establish a new facility for producing stainless steel hot rolled coils (HRC) at its existing plant in Sambalpur, Odisha. The company disclosed in an exchange filing on April 9 that it will invest between Rs 650 to Rs 750 crore in the project. The board approved the company's expansion strategy on July 27, 2023, and the new facility will have an annual production capacity of 0.3 million metric tons. The plant will focus on producing 200 and 400-series stainless steel HRCs.

Exide Industries: On Tuesday, the battery manufacturer Exide announced its acquisition of a 26 percent stake in Clean Max Arcadia Private Ltd for Rs 5.34 crore. Clean Max Arcadia is a Special Purpose Vehicle (SPV) established and promoted by Clean Max Enviro Energy Solutions Pvt Ltd for the production and supply of solar power. With this acquisition, Exide aims to become a captive consumer of solar power and reduce its power expenses while boosting operational efficiency at its factory in Bawal, Haryana. The acquisition has been disclosed in a regulatory filing.

Paisalo Digital: The company reported that its Assets Under Management (AUM) experienced a 32 percent growth, reaching Rs 4,622 crore by the end of the March FY24 quarter. During the same period, disbursements increased by 38 percent to Rs 3,588 crore, and co-lending loan disbursements doubled to Rs 1,128 crore. The customer base also expanded significantly, from 1.50 million at the end of the March FY23 quarter to 4.29 million at the end of the March FY24 quarter.

Patel Engineering: According to a report by Moneycontrol, the Mumbai-based EPC firm is expecting a significant increase in its order book from Rs 19,134 crore in December 2023 to approximately Rs 25,000 crore in FY25. The company's CFO, Kavita Shirvaikar, stated that the order book stood at Rs 20,806 crore in March 2023. She anticipates that the growth in the sectors they serve will result in the order book surging to around Rs 25,000 crore in FY25.

PB Fintech: PB Fintech, the parent company of Policybazaar, a digital insurance platform, announced on April 9th the establishment of its fully-owned subsidiary, PB Pay. The promoter of PB Fintech approved the incorporation of PB Pay last month, with a paid-up capital of Rs 27 crore. PB Pay will operate as a payment aggregator.