Stocks on Focus: Vodafone-Idea, Patanjali Foods, CMS Info Systems, ZEEL, Hindustan Zinc

On February 28, 2024, the Sensex and Nifty benchmark indices are expected to have a slow start on Wednesday, following similar trends in global markets. As of 7:20 AM, Gift Nifty futures were up 34 points at 22,237. Most Asian equities have experienced a slight decline this morning. The Shanghai Composite and ASX200 both fell by 0.07 percent, while the Nikkei and Hang Seng slipped by up to 0.3 percent.

Vodafone-Idea: On Tuesday, the board of Vodafone-Idea, a private telecom operator facing financial difficulties, approved a fundraising initiative worth Rs 45,000 crore. This initiative includes a Rs 20,000 crore equity-based fundraising from existing investors. A shareholder meeting for fundraising is expected to take place on 2nd April, after which the company aims to complete the equity fundraising by the end of the upcoming June quarter. Following the equity fundraising, Vodafone-Idea plans to raise additional debt, bringing the total amount of funding to Rs 45,000 crores. The existing promoters of Vodafone-Idea will also participate in the equity fundraising, as confirmed by the company in a media statement.

Patanjali Foods: The Patanjali Ayurved, which is owned by Ramdev, and its managing director Acharya Balakrishna have been served a contempt notice by the Supreme Court on Tuesday for releasing misleading advertisements regarding health cures that violated an earlier order. The apex court has also prohibited Patanjali from promoting products that claim to cure diseases such as heart ailments and asthma. However, Patanjali Foods said in a regulatory filing, "The observations of the Supreme Court of India do not relate to Patanjali Foods Limited which is an independent listed entity and operates in the space of edible oil and food FMCG products only".

CMS Info Systems: Global private equity firm Baring Private Equity Asia, through its affiliate Sion Investment Holdings, has made a successful exit from India by completely selling its stake in CMS Info Systems, a leading cash management solutions provider. On Tuesday, the company sold its remaining 26.7 percent holding, or 41.77 million shares, through a block deal. The sale, estimated to be worth Rs 1,503.8 crore, was conducted at a floor price of Rs 370 per share, which is a 7 percent discount from Monday's closing price on the National Stock Exchange (NSE).

Zee Entertainment Enterprises: The board of directors at Zee Entertainment Enterprises (ZEEL) has extended the responsibilities of the independent advisory committee that was established last week to conduct a thorough examination of all allegations presented by regulatory agencies against the company, its promoters, and key executives. The committee will take all necessary steps to investigate the accusations with the primary goal of safeguarding the rights of the company's shareholders and other stakeholders. ZEEL released a statement on Tuesday confirming the committee's expanded role and its commitment to ensuring the protection of all stakeholders.

Hindustan Zinc: Vedanta Group's Hindustan Zinc has formed a new subsidiary, Hindmetal Exploration Services Pvt Ltd, to explore strategic minerals and expand its portfolio. "The company has incorporated Hindmetal Exploration Services Private Limited, a wholly-owned subsidiary of Hindustan Zinc Ltd, with an objective to explore, discover, develop and tap mineral resources," Hindustan Zinc said in a regulatory filing.

Texmaco Rail & Engineering: The flagship company of the Adventz Group, Texmaco Rail & Engineering, on Tuesday said its board of directors had approved plans to raise up to Rs 150 crore through a preferential issue of convertible warrants to its promoters and promoter groups. The board has authorized its Capital Issue Committee to finalise the structure, terms, and conditions of the issuance, as well as other related matters.

JSW Energy: JSW Neo Energy, a subsidiary of the company, has recently received a Letter of Award (LoA) from SJVN Ltd for a 700 MW solar capacity project. The project will be connected to the interstate transmission system (ISTS). According to the company's filing to the stock exchanges, this LoA has been granted against a tariff-based competitive bid that SJVN had invited for setting up 1,500 MW ISTS-connected solar power projects. With this order, JSW's total locked-in capacity has increased to 11 GW, including 1.4 GW of solar capacity.

Tata Elxsi: Tata Elxsi and Telefónica have implemented a cloud-native infrastructure management system powered by ETSI Open-Source MANO (ETSI OSM). These advancements mark a new phase in the evolution of telco-cloud technologies and signify a commitment to driving digital transformation across the telecommunications industry.

Torrent Power: The power company has been awarded a letter of intent by PFC Consulting to establish an inter-state transmission scheme, which aims to evacuate renewable energy with a capacity of 1,500 MW from Solapur (1,500 MW) SEZ in Maharashtra. The project involves the setting up of a transmission line of 44 km from the existing Solapur substation of Power Grid Corp. to Solapur substation (which will be established by Torrent Power). Once the project is completed, PFC Consulting will transfer the project SPV to Torrent Power.

Piramal Pharma: The pharma company said a fine of €1,82,001 was imposed on its step-down subsidiary Piramal Critical Care B V (PCC BV) by the Audiencia Nacional, Spain. PCC BV is contemplating filing an appeal against the Audiencia's judgment before the Supreme Court in Spain. The fine levied on PCC BV does not have any material impact on the financials, operations, or other activities of the company.