Stocks to Focus: Vedanta, SpiceJet, Piramal Pharma, SBI, Shriram Finance

Stocks to Watch: Thursday, September 26, 2024: Markets in India are expected to open higher on Thursday, influenced by positive trends in global markets, particularly in the Asia-Pacific region. GIFT Nifty futures were trading above 26,000, indicating an increase of about 50 points from the last close of Nifty futures at 25,998. Additionally, Asian markets showed strong rebounds on Thursday morning, with Chinese markets anticipated to maintain their upward trend. Futures for Hong Kong's Hang Seng index were at 19,336, up from the previous close of 19,129.1. In Japan, the Nikkei 225 saw an early increase of 1.7%, while the broader Topix rose by 1.2%. South Korea's Kospi outperformed the region with a 1.77% gain, and Australia’s S&P/ASX 200 climbed 0.68%.

Vedanta: Vedanta Ltd, a metals conglomerate, has announced that it will evaluate the option of declaring a fourth interim dividend for FY25 during a Board meeting scheduled for October 8, 2024. The company shared this information on Wednesday, noting that if approved, the interim dividend will be distributed to equity shareholders. The record date for eligibility to receive the interim dividend is set for October 16, 2024. Additionally, the company specified that the Board will consider and may approve the dividend for the current fiscal year during this meeting.

SpiceJet: On Wednesday, Societe Generale executed block deals concerning SpiceJet shares, selling a total valued at ₹47 crore. The French financial services company divested over 83.56 lakh shares for ₹52.5 crore, while acquiring 9.4 lakh shares for ₹5.87 crore. In total, Societe Generale was a net seller, offloading 74.15 lakh shares. The selling price was ₹62.90 per share, compared to a slightly lower buying price of ₹62.43 per share.

Piramal Pharma: Piramal Pharma aims to achieve a bold goal of doubling its revenue to $2 billion by FY30, alongside tripling its EBITDA, as stated by Chairperson Nandini Piramal. The company intends to uphold a net debt to EBITDA ratio of 1x during this timeframe. The growth of the Contract Development and Manufacturing Organization (CDMO) segment is anticipated to be a significant contributor, driven by increasing demand and the potential effects of the US Biosecure Act.

State Bank of India: State Bank of India (SBI) aims to become the first Indian financial institution to reach a net profit of ₹1 trillion within the next 3 to 5 years, as stated by Chairman C. S. Setty. The bank reported a standalone net profit of ₹61,077 crore in FY24, marking a year-on-year growth of 21.59%. SBI is striving to achieve robust profit growth while maintaining a customer-centric approach. Additionally, the bank is targeting a credit pipeline of ₹4 trillion from corporate clients, particularly in the infrastructure sector.

Shriram Finance: Shriram Finance has successfully secured $500 million by issuing fixed-rate senior secured social USD notes with a coupon rate of 6.15%. This marks the company’s inaugural USD bond issuance for FY25, attracting significant interest from investors and achieving a subscription rate of 2.4 times. The capital raised will mainly be directed towards sustainable, income-generating sectors, with a particular focus on vehicle financing and lending to micro, small, and medium enterprises (MSMEs).

Bank of India: Bank of India has successfully raised ₹2,500 crore by issuing tier-II bonds at a coupon rate of 7.49 percent, driven by strong demand that saw bids surpassing ₹6,000 crore. This initiative is part of the bank's larger strategy to bolster its capital adequacy ratio, projected to reach 16 percent. In the upcoming months, the bank intends to secure further capital through tier-I and infrastructure bonds to further strengthen its financial standing.

Biocon: Biocon Biologics, a subsidiary of Biocon, reported encouraging findings from Phase III clinical trials for its biosimilars of adalimumab and ustekinumab at the EADV Congress 2024. The results indicate that patients can safely transition between the biosimilars and the reference medications, highlighting the possibility of interchangeability. These results could improve patient access to treatments and help lower healthcare costs.

KEC International: KEC International has initiated a qualified institutional placement (QIP) to raise ₹4,500 crore through equity shares. The floor price for the QIP is set at ₹976.64 per share. This fundraising plan was first approved by the company's board on July 26, 2024, and received a special resolution during the annual general meeting on August 22, 2024. According to an exchange filing, KEC International may provide a discount of up to 5 percent on the floor price.

Delta Corp: Delta Corp's board has recently approved a draft composite scheme of arrangement with Delta Penland. This scheme involves the demerger of Delta Corp's hospitality and real estate segments. As part of the plan, Delta Penland will issue one share of the newly formed entity for every share held by Delta Corp shareholders.

ASK Automotive: Kuldip Singh Rathee, the promoter of ASK Automotive, plans to sell a 6.05 percent stake in the company through an offer for sale (OFS) on September 26-27. This OFS consists of a base offering of 5.5 percent and an additional greenshoe option of 0.55 percent. The sale will commence for non-retail investors on September 26, followed by retail investors on September 27. The floor price has been established at ₹433 per share.

Five Star Business Finance: According to sources from CNBC-TV18, Peak XV Partners and other private equity investors are likely to divest up to 20 per cent of their stake in Five Star Business Finance through a block deal. The block deal is expected to be worth approximately $500 million.

Coromandel International: Coromandel International has raised its stake in Senegal-based Baobab Mining and Chemicals Corporation (BMCC) by acquiring an additional 8.82%, increasing its total ownership to 53.8%. The company plans to invest $3.84 million (₹32 crore) in BMCC, alongside an additional loan of $6.5 million (₹54 crore) to facilitate expansion projects and meet working capital requirements.