Stocks to Focus: Dr Reddy's, Vodafone Idea, Indian Bank, SpiceJet, Axis Bank

Stocks to Watch, Wednesday, September 11, 2024: Markets are expected to open flat with a slight negative tilt, as indicated by GIFT Nifty futures, amid subdued sentiment from Asian markets. At 6:45 AM, GIFT Nifty futures stood at 25,089, just above the previous close of Nifty futures at 25,083. Japan's Nikkei 225 dropped 0.7%, while the Topix declined by 0.86%. South Korea's Kospi dipped 0.20%, but the small-cap Kosdaq saw a rise of 1.61%.

Dr. Reddy’s Laboratories: In a stock exchange filing on Tuesday, September 10, Dr. Reddy's Laboratories addressed allegations regarding its association with Dhaval Buch, the husband of the Sebi chief, dismissing any conflict of interest. The company clarified that it had engaged Agora Advisory Private Limited, where Mr. Buch offered leadership coaching services between October 2020 and April 2021, for which he was compensated Rs 6,58,000. This statement came in response to claims from Congress that Sebi chief Madhabi Puri Buch had financial ties to listed companies such as Dr. Reddy's, Mahindra & Mahindra, and Pidilite through Agora Advisory. Congress, however, provided no evidence to substantiate these claims.

Vodafone Idea: Kumar Mangalam Birla, Chairman of the Aditya Birla Group, has bolstered his investment in Vodafone Idea (Vi), indicating his confidence in the telecom firm. Vodafone Idea is pursuing Rs 25,000 crore in debt and a Rs 24,000 crore equity raise. On September 6, Birla acquired 1.86 crore shares of Vi, and his investment firm, Pilani Investment and Industries Corporation, bought an additional 30 lakh shares.

Indian Bank: Indian Bank is set to raise Rs 5,000 crore through infrastructure bonds as part of its strategy to meet the rising demand for credit, which has exceeded the growth in deposits. These bonds are designed to finance long-term infrastructure projects and offer the advantage of being exempt from the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), making them an attractive option for capital mobilization.

SpiceJet: On September 10, SpiceJet announced the details of its settlement agreement with Carlyle Aviation, which involves a mix of debt forgiveness and conversion of arrears into equity and debentures. Under the agreement, Carlyle Group's aviation investment arm will forgive $40.17 million of SpiceJet's lease arrears. Additionally, Carlyle Aviation will convert $20 million of these arrears into compulsorily convertible debentures (CCDs) of SpiceXpress, the cargo division of SpiceJet. Furthermore, $30 million of arrears will be converted into equity at Rs 100 per share, thereby significantly increasing Carlyle’s ownership stake in the airline. These actions will help SpiceJet effectively reduce its debt burden.

Axis Bank, HDFC Bank: The Reserve Bank of India (RBI) has imposed a total penalty of Rs 2.91 crore on Axis Bank and HDFC Bank due to shortcomings in regulatory and statutory compliance. Axis Bank was fined Rs 1.91 crores for violations related to the Banking Regulation Act and failure to adhere to directions regarding 'Interest Rate on Deposits', 'Know Your Customer (KYC)', and 'Credit Flow to Agriculture-Collateral Free Agricultural Loans'. HDFC Bank faced a Rs 1 crore penalty for non-compliance with directives related to 'interest rate on deposits', 'recovery agents', and 'customer service'. These penalties stem from a supervisory evaluation of Axis Bank conducted as of March 31, 2023, and a review of HDFC Bank’s operations.

Tata Motors: On September 10, Tata Motors unveiled substantial price reductions across its electric vehicle (EV) lineup as part of its 'Festival of Cars' promotion, which runs until October 31. The price of the Tata Tiago EV has been slashed by Rs 40,000, the Tata Punch EV by up to Rs 1.2 lakh, and the Tata Nexon EV by up to Rs 3 lakh. Post-discount, the Tata Tiago EV is priced from Rs 7.99 lakh, the Tata Punch EV starts at Rs 9.99 lakh, and the Nexon EV is available from Rs 12.49 lakh. Tata Motors aims for this initiative to accelerate the adoption of EVs in India by making them more affordable and accessible.

Maruti Suzuki India: Maruti Suzuki India is gearing up to introduce its inaugural electric vehicle (EV) in January 2025. The company aims to address major consumer concerns, including range anxiety, charging infrastructure availability, and resale value, to facilitate a smoother adoption of EVs in the Indian market.

L&T: L&T Semiconductor Technologies, a subsidiary of L&T, has entered into a strategic alliance with IBM to advance processor design for edge devices and hybrid cloud systems. This collaboration is set to bolster India's semiconductor technology landscape and drive innovation in computing applications.

Reliance Industries: Reliance Retail Ventures, a division of Reliance Industries, has entered into a 50/50 joint venture with Delta Galil Industries. This collaboration aims to broaden its apparel range in India by introducing cutting-edge intimate and activewear products to the Indian market.

Mahindra & Mahindra: Mahindra & Mahindra has firmly rejected the Congress party's allegations regarding preferential treatment from market regulator Sebi and its leadership. The company underscored its dedication to upholding stringent corporate governance standards.

Coal India: Coal India is set to invest around Rs 67,000 crore in developing coal-fired power plants near its mining sites. Over the next six to seven years, the company aims to build 4.7 gigawatts of generation capacity, underscoring the ongoing dependence on coal to fulfill India’s energy requirements.