Stocks on Focus: Religare, Mahindra Lifespace, Eicher, Mankind Pharma, Adani Ports, Lupin

Equity benchmark indices Sensex and Nifty are expected to start the day flat on March 26, 2024, as global cues are mixed. As of 7:10 am, Gift Nifty futures were down 41 points at 22,124 compared to the Nifty futures’ last closing price.

Religare Enterprises: The company recently held a vote among its shareholders to determine whether or not to invest in its subsidiary, MIC Insurance Web Aggregator, and to amend its Articles of Association. Unfortunately, the resolutions did not meet the necessary approval threshold, with a majority of voters opposing the proposed investment in MIC. Out of the 62 percent of shareholders who participated, 74 percent voted against the investment. While the amendment to the Articles of Association was supported by 68 percent of participating shareholders, the scrutinizer's report revealed that 14 members, who held 6.98 crore shares, abstained from voting, and one member cast 2.07 lakh fewer votes than their shareholding, leading to their votes being considered invalid.

Mahindra Lifespace Developers: The company has recently announced its plans to invest approximately Rs 6,000 crore in its residential business over the next four years. The investment is aimed at boosting its business growth, with the goal of increasing its residential business from Rs 2,268 crore to Rs 8,000 crore by the fiscal year 2028, which is a five-fold increase. To achieve this target, the company plans to launch projects with a total gross development value (GDV) of Rs 45,000 crore during this period.

Eicher Motors: The manufacturer of Royal Enfield motorcycles has established a subsidiary in the Netherlands, as a response to the difficulties posed by Brexit in transporting parts to mainland Europe. The company is currently discussing the establishment of a warehouse, possibly in Germany or France, to facilitate the delivery of non-motorcycle items such as spare parts and branded merchandise. Arun Gopal, the international head of Royal Enfield, stated in an interview that Brexit has complicated the transportation of materials between the UK and Europe. He also pointed out that the UK's geographical distance from certain parts of Europe necessitated a warehouse that could more efficiently serve those regions.

Mankind Pharma: An affiliate of private equity firm ChrysCapital, Beige Ltd, plans to sell up to 2.90 percent of its stake in Mankind Pharma Ltd through block transactions. The sale price is expected to range between Rs 2,103 and Rs 2,214, which is lower than the current market price (CMP) by 0-5 percent. The transaction is estimated to be around Rs 2,460 crore, according to insiders familiar with the matter. Beige Ltd currently holds a 2.99 percent stake in Mankind Pharma Ltd.

Adani Ports and Special Economic Zone: Adani Ports has announced their plans to acquire a 95 percent stake in Gopalpur Port, located in Odisha. The equity value of the deal is Rs 13.49 billion ($161.74 million). The acquisition will involve Adani Ports acquiring a 56 percent stake from the real estate giant Shapoorji Pallonji Group and a 39 percent stake from Orissa Stevedores. The total enterprise value of the transaction is estimated to be Rs 30.80 billion.

IIFL Finance, JM Financial Products: The Reserve Bank of India (RBI) has started the process of appointing auditors to conduct a special audit of IIFL Finance and JM Financial Products due to regulatory violations. The RBI has released two separate tenders for the appointment of auditors for these two non-banking finance companies (NBFCs). The tender document states that audit firms that are on the Securities and Exchange Board of India (SEBI)'s panel for forensic audits are eligible to participate in the tender process. The deadline for bid submission is April 8, and the selected firms will begin their work on April 12, 2024.

Tech Mahindra: An IT services and consulting firm recently announced its plan to consolidate its wholly-owned subsidiary, Born Group, with its parent company, Tech Mahindra (Americas) Inc. On Friday, March 22, 2024, both companies approved the merger. The Pune-based company disclosed, via a regulatory filing, that the merger plan for Born Group, Inc. (a wholly-owned subsidiary) with its parent company, Tech Mahindra (Americas) Inc. (a wholly-owned material subsidiary), was approved by both entities. The aim of the consolidation is to streamline business operations, reduce operational costs, and mitigate compliance risks.

Vedanta: The mining conglomerate has recently announced ambitious plans to invest $6 billion (Rs 50,000 crore) across various sectors, which include aluminium, zinc, iron ore, steel, and oil and gas. The primary objective of this investment is to increase the company's annual EBITDA by at least $2.5 billion (Rs 20,750 crore). The executives of the company stated this goal during an investors meeting. The company has also revealed a pipeline of more than 50 active projects and expansions that are designed to drive growth. These initiatives are expected to generate additional revenue of more than $6 billion. Furthermore, Vedanta expects an increase in EBITDA from the projected $5 billion for the current fiscal year ending March 31, to $6 billion in the next fiscal year, and potentially reaching $7.5 billion by FY27.

Hinduja Global Solutions: On March 22, a business process management company announced that it has agreed to sell its optical fibre assets to its subsidiary, Indusind Media and Communications Ltd (IMCL), for a sum of Rs 208.04 crore. The company has entered into an agreement for this transaction, as stated in a stock exchange filing. IMCL is a subsidiary of Hinduja Global Solutions Ltd, with a 77.55 percent share capital held by the latter, making it a related party. However, the transaction is being carried out at arm's length, and to ensure its fairness, an independent valuation report was procured by the company.

ICICI Securities: On March 22, ICICI Securities said that it had received an administrative warning from the Securities and Exchange Board of India (SEBI) concerning its Merchant Banking operations. The warning was delivered via an email dated March 22, 2024. The warning is linked to SEBI's inspection of ICICI Securities' Merchant Banking activities' books and records, which took place in December 2023. Despite the warning, ICICI Securities has assured that it will not affect its financial, operational, or other activities in any way.

Lupin: Lupin, a pharmaceutical company, has announced its plans to separate its trade generics business in India and move it to a fully owned subsidiary called Lupin Life Sciences Ltd (LLSL). This transfer is expected to cost between Rs 100-120 crore. The Board of Directors of Lupin Limited approved the plan in a meeting held on March 22, 2024. Lupin plans to carve out its trade generics business in India and transfer it to LLSL on a slump sale basis, as per a stock exchange filing.