Stocks to Focus: Adani Power, Ambuja Cements, Nykaa, Zomato, Hindalco

Stocks to monitor on Friday, August 23, 2024: Indian markets are expected to have a tepid opening today, reflecting the weak performance of global peers. The GIFT Nifty futures indicate a flat start, showing a slight decline of 6 points compared to the Nifty50 futures, at 24,834 levels. Asia-Pacific markets were lower on Friday as investors await comments from US Federal Reserve Chairman Jerome Powell for clues on future policy directions. In Asia, Japan's inflation data showed no change, with headline inflation holding steady at 2.8% in July, the same as the previous month. Core inflation, excluding fresh food prices, was 2.7%, in line with economists' expectations and up from 2.6% in June. Japan's Nikkei 225 fell by 0.17%, while the broader Topix index was nearly flat, rising by 0.04%. South Korea's Kospi dropped 0.13%, and the Kosdaq fell 0.79%.

Adani Power: Adani Power has revealed that the Hyderabad bench of the National Company Law Tribunal (NCLT) has given its approval for the company's acquisition of Lanco Amarkantak Power Ltd (LAPL). The deal entails an initial payment of Rs 4,101 crore. LAPL, which is currently in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, will be fully owned by Adani Power following the cash transaction, pending certain conditions specified in the resolution plan, according to a filing with the BSE.

Ambuja Cements: The Adani Group plans to sell a 2.84 percent stake in Ambuja Cements on Friday through a block deal, aiming to raise around Rs 4,200 crore. Holderind Investments, an entity of the Adani Group, will offer 69.96 million shares at a floor price of Rs 600 per share, which is a 5 percent discount compared to Thursday’s closing price of Rs 633. The promoter group currently owns a 70.33 percent stake in Ambuja Cements, with Holderind Investments holding a 50.90 percent stake.

FSN E-Commerce Ventures (Nykaa): Harindarpal Singh Banga, a pre-IPO investor in FSN E-Commerce Ventures (Nykaa), is set to sell up to 1.4% of his stake in the beauty and personal care platform at a minimum price of Rs 198 per share. As of the end of the June quarter, Singh owned a 6.4% stake in Nykaa, making this sale a notable divestment.

Zomato: Zomato has announced the immediate shutdown of its Intercity Legends service, which was designed to deliver iconic dishes from 10 cities across India. This move signals a shift in the company's strategy as it continues to streamline its operations and focus on core services.

Hindalco: Hindalco Industries, the flagship company of the Aditya Birla Group, is set to undertake a major expansion with an investment plan of $10 billion. Chairman Kumar Mangalam Birla outlined the company's strategic plans during the annual general meeting on August 22. The expansion includes upgrades to aluminum and copper smelters, the Aditya FRP plant, a new alumina refinery in Rayagada, and the Bay Minnette expansion at Novelis. Hindalco is also exploring a brownfield expansion of approximately 200,000 tonnes at its Aditya Aluminium smelter in Odisha, with a significant portion of the power supply anticipated to come from renewable sources.

Bharti Airtel: Bharti Airtel has achieved a significant reduction in its Goods and Services Tax (GST) liability. Originally assessed at Rs 604.66 crore by the Additional Commissioner of Central GST in Delhi, the liability has been lowered to Rs 194 crore following an appeal to the Central Goods and Services Tax Appellate Authority. This decision offers substantial relief to the telecom company regarding the reverse charge mechanism on Licence Fees and Spectrum Usage Charges.

GAIL (India) Ltd: GAIL (India) Ltd has signed a memorandum of understanding (MoU) with US-based Petron Scientech Inc. to explore the establishment of a 500 kilo ton per annum bio-ethylene plant and downstream units in India. The proposed venture aims to boost India's capabilities in bio-based chemical production, aligning with the country's sustainability goals.

PNB Housing Finance: On Thursday, Asia Opportunities V (Mauritius) sold a 3 percent stake in PNB Housing Finance for over Rs 676 crore through an open market transaction. The firm divested 78 lakh shares at Rs 866.70 each, totaling Rs 676.02 crore. As a result, Asia Opportunities V (Mauritius) reduced its shareholding in PNB Housing Finance from 5.19 percent to 2.19 percent. Additionally, the Government of Singapore acquired 16,59,784 shares, representing a 0.64 percent stake in PNB Housing Finance, for Rs 143.74 crore, purchasing them at an average price of Rs 866.05 per share on the BSE.

Wipro: Wipro announced the voluntary liquidation of its step-down subsidiary, Rizing Management LLC, effective August 21. In other news, Wipro has been chosen by the John Lewis Partnership to upgrade its IT infrastructure, further solidifying Wipro's position as a prominent global IT services provider.