Stocks to Focus: IRCTC, Hindalco, Yes Bank, Adani Group, HAL, Honasa Consumer
Stocks To Watch, Friday, September 13, 2024: Indian markets are expected to open on a slightly positive to muted note, as suggested by GIFT Nifty futures, following the release of slightly higher inflation and manufacturing activity figures late Thursday. At 6:55 AM, GIFT Nifty futures stood at 25,387, about 30 points above the previous close of Nifty futures, signaling a modest gain for the benchmark indices at the open. In contrast, Asia-Pacific markets experienced declines on Friday, reversing the gains from Thursday, even as Wall Street's tech sector rally continued. Hong Kong's Hang Seng index futures were at 17,294, up from the HSI’s last close of 17,240.
IRCTC: The Life Insurance Corporation of India (LIC) has increased its stake in Indian Railway Catering and Tourism Corporation (IRCTC) to approximately 9.3 percent, according to a regulatory filing released on Thursday. Between December 16, 2022, and September 11, 2024, LIC raised its shareholding in the railway sector 'miniratna' public sector undertaking by 2.02 percent through open market transactions. LIC now owns 7,43,79,924 shares, up from 5,82,22,948 shares, resulting in an increase from 7.28 percent to 9.30 percent of IRCTC's paid-up capital.
Hindalco: Birla Estates, the real estate division of Aditya Birla Group's Century Textiles, through its subsidiary Ekamaya Property, has finalized the purchase of a 24.5-acre land parcel in Kalwa, Thane, for Rs 537.42 crore. The land, previously owned by Hindalco Industries, another Aditya Birla Group company, was sold following a board approval announced in July last year.
Yes Bank: The proposed sale of a majority stake in Yes Bank has encountered delays due to the Reserve Bank of India (RBI) hesitating to approve majority control for a foreign financial institution. Sumitomo Mitsui Banking Corporation (SMBC) from Japan has been negotiating directly with the RBI, but the regulator is reluctant to cede control. Although SMBC is interested in acquiring a 51 percent stake, the negotiations have stalled, postponing the anticipated completion of the sale, which was initially expected in the fourth quarter of the financial year.
Adani Group: U.S.-based short seller Hindenburg Research has claimed that Swiss authorities have frozen over $310 million in funds across multiple Swiss bank accounts linked to an ongoing money laundering and securities investigation involving the Adani Group. The investigation reportedly dates back to 2021. Hindenburg made the allegations public via a post on social media platform X on September 12.
Indus Towers & Data Infrastructure Trust: Data Infrastructure Trust (DIT), supported by Brookfield Asset Management and other investors, has acquired American Tower Corporation's operations in India for approximately $2.2 billion. This acquisition, which includes around 76,000 telecom sites, propels DIT to become the largest mobile tower company in India, surpassing Indus Towers. With this addition, DIT's portfolio now encompasses a total of 257,000 telecom sites, rebranded as Altius.
Hindustan Aeronautics (HAL): Hindustan Aeronautics Ltd (HAL) is poised to transition from Navratna to Maharatna status by the end of 2024, which will provide it with enhanced operational and financial autonomy. This upgrade will enable HAL to invest up to Rs 5,000 crore in projects without needing government approval. The company has seen remarkable growth, achieving a record profit of Rs 4,000 crore in Q4 FY24.
HDFC Bank: In a bid to optimize its credit-to-deposit ratio, HDFC Bank is in talks with global banks to offload up to Rs 8,400 crore in loans. This move is part of its broader strategy to align its credit portfolio more closely with its deposit levels.
SpiceJet: SpiceJet has approached the Supreme Court to challenge a Delhi High Court order grounding three of its leased engines. The airline is requesting additional time to settle outstanding dues and is planning to raise funds to address its ongoing financial difficulties.
Honasa Consumer: Peak XV Partners, Sofina Ventures, and Stellaris Venture Partners have collectively sold a 7.94% stake in Honasa Consumer, the parent company of Mamaearth, for Rs 1,276 crore. The shares were sold at Rs 495 each, with multiple new investors acquiring parts of the stake.
Engineers India: Engineers India Ltd, a state-owned engineering consultancy and EPC firm, has achieved Rs 4,681 crore in new business in FY24, raising its total order book to Rs 11,350 crore as of August 31. Chairman and Managing Director Vartika Shukla attributed this growth primarily to a surge in orders from the upstream and infrastructure sectors.
Tata Power: Tata Power Renewable Energy, a subsidiary of Tata Power, has entered into a Memorandum of Understanding (MoU) with Tata Motors to set up 200 fast-charging stations for electric commercial vehicles in major metropolitan areas.
