Stocks to Focus: RIL, Adani Enterprises, Canara Bank, Axis Bank, Vedanta
Stocks to Watch, Thursday, September 5, 2024: Indian markets are expected to open with a slight positive bias, as GIFT Nifty futures were trading around 25,364 levels at 6:35 AM. However, global market sentiment may dampen investor enthusiasm domestically. While most Asia-Pacific markets rebounded from Wednesday's sell-off, Japan's indices declined. The Nikkei 225 and Topix fell by 0.92% and 0.49%, respectively, while South Korea’s Kospi gained 1.15%, and the Kosdaq increased by 0.75%.
Reliance Industries: Reliance Industries Ltd has achieved a major milestone by securing a contract to develop a 10 GWh battery storage project under the government's Production-Linked Incentive (PLI) scheme. This project marks a significant advancement in India's efforts to become self-sufficient in battery manufacturing. On September 4, the Ministry of Heavy Industries revealed that the 10 GWh Advanced Chemistry Cell (ACC) manufacturing scheme, with a budget of Rs 3,620 crore, received bids from seven companies. These bidders included ACME Cleantech Solutions Pvt Ltd, Amara Raja Advanced Cell Technologies Pvt Ltd, Anvi Power Industries Pvt Ltd, JSW Neo Energy Ltd, Lucas TVS Ltd, Reliance Industries, and Waaree Energies Ltd.
Adani Enterprises: Adani Enterprises Ltd. made a notable debut with its first bond issuance targeted at individual investors, signaling a resurgence in investor confidence after last year's difficulties. The issuance, spearheaded by billionaire Gautam Adani's conglomerate, garnered subscriptions amounting to nearly Rs 720 crore on its first day, surpassing the initial target of Rs 800 crore, according to lead manager Nuvama Wealth Management. Significantly, the retail portion of the issuance was fully subscribed on the opening day, with applications totaling Rs 250 crore compared to the Rs 240 crore allocated for retail investors.
Canara Bank: Canara Bank recently secured $300 million through its first five-year bond issuance in over five years. The bonds, issued via the bank's GIFT International Financial Services Centre, experienced robust demand, with the offer being oversubscribed by over 2.5 times. Priced at 125 basis points above the five-year US Treasury, the bonds attracted significant interest from investors in Asia and feature a semi-annual coupon rate of 4.89%.
Sona BLW Precision Forgings: Sona BLW Precision Forgings, also known as Sona Comstar, has set the floor price for its qualified institutional placement (QIP) at Rs 699.01 per share, marking a 3% discount from the previous day's closing price of Rs 721.50. The QIP was launched on Wednesday, according to an exchange filing. The company also mentioned that it might offer an additional discount of up to 5% on the floor price at its discretion.
Axis Bank: Axis Bank successfully raised Rs 3,925 crore by issuing 10-year infrastructure bonds, securing long-term capital to meet strong loan demand despite slower deposit growth in the banking sector. The private lender offered the bonds at a coupon rate of 7.45%, with an initial base size of Rs 2,000 crore and an additional greenshoe option of Rs 2,000 crore, reflecting significant investor interest.
Vedanta: Vedanta, a prominent metal company, has received an upgrade in its long-term credit rating from ICRA Ratings, reflecting improved expectations for its credit metrics. This upgrade follows Vedanta's successful $1 billion fundraising through a qualified institutional placement (QIP) in July 2024 and an additional $400 million raised from an offer for sale (OFS) of Hindustan Zinc Limited (HZL) in August 2024. The rating for its 'Long-term/S term – Unallocated limits' instrument has been raised to [ICRA]AA from [ICRA]AA-/[ICRA]A1+, and the 'Long-term – Fund based – Term loan' instrument has also been upgraded to [ICRA]AA. Both ratings remain on watch with developing implications.
General Insurance Corporation of India (GIC Re): On the first day of General Insurance Corporation of India’s (GIC Re) offer for sale (OFS), bids reached nearly Rs 2,300 crore. The OFS is designed to reduce the government's stake in the company by up to 6.78 percent. With 58 million shares bid on, the final divestment could be under 3.4 percent. Additional divestments will be required to fulfill the regulatory mandate of 25 percent public shareholding.
Prestige Estates Projects: Prestige Estates raised Rs 5,000 crore through a Qualified Institutional Placement (QIP). The company issued 29,868,578 equity shares at Rs 1,674 per share, representing a discount of 4.62 percent to the floor price.
Allied Blenders and Distillers (ABDL): Allied Blenders and Distillers (ABDL) has secured board approval to acquire an 80 percent share in a new venture alongside actor Ranveer Singh. This collaboration will center on luxury and premium spirits, with an investment of up to Rs 70 crore in the new entity.
Mastek: Capital Group has divested a 5.6 percent stake in Mastek, raising over Rs 475 crore. Meanwhile, ICICI Prudential Mutual Fund has purchased shares in the IT services company, indicating its strong interest in Mastek's growth prospects.
