Stocks to Focus: Zomato, IIFL Securities, Alkem Labs, BEML, Zen Tech, Paras Defence

Stocks to Watch on Thursday, August 22, 2024: Benchmarks Sensex and Nifty are expected to open on a positive note on Thursday, reflecting the strong performance of global markets. GIFT Nifty futures indicate an optimistic start, trading 85 points above Nifty50 futures at 24,883 levels. Asia-Pacific markets saw mostly higher openings as investors assessed flash business activity data from Australia, Japan, and India. The Bank of Korea held its benchmark interest rate steady at 3.5 percent as anticipated, with future statements anticipated for possible hints on policy easing. In Asia, Japan's Nikkei 225 gained 0.96 percent, while the broader Topix index rose 0.33 percent. South Korea's Kospi increased by 0.13 percent, although the Kosdaq fell by 0.41 percent. 

Zomato and One 97 Communications: Zomato has made a major foray into the entertainment industry by purchasing Paytm's ticketing business for Rs 2,048.4 crore ($244 million). The acquisition encompasses Paytm’s 'TicketNew' and 'Insider' platforms, which specialize in movie and live event ticketing. This strategic move enables Zomato to expand its services and enhance its position in the "going-out" sector, while Paytm shifts its focus back to its core financial services.

IIFL Securities: IIFL Securities has been fined Rs 11 lakh by the Securities and Exchange Board of India (SEBI) for violating stockbroker regulations. SEBI's inspection, which covered the period from April to July 2022, revealed shortcomings in the settlement of client funds and securities, caused by a technical error on the part of IIFL Securities. The penalty underscores SEBI's continued commitment to ensuring rigorous adherence to compliance standards in the capital markets.

IREDA: The Indian Renewable Energy Development Agency (IREDA) plans to raise up to Rs 4,500 crore through Qualified Institutional Placement (QIP), rights issues, or other methods. These funds will bolster IREDA’s green financing efforts to advance the development of renewable energy in India. The board is expected to finalize the fundraising proposal on August 29, positioning IREDA to enhance its influence in the sustainable energy sector.

Alkem Laboratories: The promoter of Alkem Laboratories plans to sell a 0.7% stake, or 8.5 lakh shares, via block deals. The shares will be offered at a floor price of Rs 5,616, which is a 3% discount compared to the current market price. This action may influence the stock’s short-term performance as the market adjusts to the increased supply.

BEML: BEML has formed a strategic partnership with the Indian Navy to advance marine applications for defense. This collaboration is set to strengthen BEML’s expertise in marine technologies, concentrating on the indigenous design and creation of essential marine equipment and systems. The partnership aims to boost India's defense infrastructure and foster self-reliance in key technology areas.

Paras Defence and Space Technologies: Paras Defence and Space Technologies has received an industrial license from the Department for Promotion of Industry & Internal Trade (DPIIT) to produce a range of defense-related products. This includes infrared and thermal imaging equipment, electro-optics systems, radar systems, and border security surveillance systems, to be manufactured in Navi Mumbai, Maharashtra. This license represents a major advancement in Paras Defence's move into cutting-edge defense manufacturing, which could significantly enhance its revenue and market presence.

Zen Technologies: Zen Technologies has launched its Qualified Institutions Placement (QIP) on August 21, setting a floor price of Rs 1,685.18 per share. The issue is projected to raise approximately Rs 800 crore, with the possibility of reaching up to Rs 1,000 crore. The funds are expected to bolster Zen Technologies' growth plans and fortify its balance sheet, positioning the company for further expansion in the defense technology sector.

Cyient DLM: Cyient Ltd, the promoter of Cyient DLM, has sold a 14.5% stake in its subsidiary through a bulk deal worth Rs 879 crore. The shares were sold at Rs 764.4 each, with Morgan Stanley being a major investor in the deal. This transaction is part of Cyient Ltd’s strategy to streamline its investment portfolio while retaining a substantial stake in Cyient DLM.

Kalyan Jewellers: Trikkur Sitarama Iyer Kalyanaraman, the promoter of Kalyan Jewellers India, has acquired a 2.36 percent equity stake from Highdell Investment for Rs 1,300 crore. This deal involves the purchase of over 2.43 crore shares at Rs 535 each, further consolidating the promoter’s control and signaling strong confidence in the company’s future growth.

Procter & Gamble Health: Procter & Gamble Health reported a significant 43.7% decrease in net profit for the June 2024 quarter, with earnings dropping to Rs 16.78 crore from Rs 29.82 crore in the same period last year. Despite strong operational performance and lower input costs, the profit decline was largely attributed to an exceptional loss of Rs 20.19 crore. Revenue from operations decreased by 5.7%, falling to Rs 283.9 crore from Rs 301.2 crore. The company has announced a final dividend of Rs 60 per share. The financial results highlight the substantial impact of the one-time loss on overall profitability.

Shriram Properties: The company has announced its goal to double its sales to Rs 5,000 crore by FY27, driven by the strong demand for mid-income housing and market consolidation. The Bengaluru-based developer, which achieved Rs 2,300 crore in sales in FY24, plans to deliver 15-16 million square feet of residential projects in the coming years, underscoring its robust growth strategy in the real estate sector.

India Grid Trust: Esoteric II Pte, the sponsor of India Grid Trust, plans to sell a 17.32% stake in the trust through an Offer for Sale (OFS) scheduled for August 22-23, 2024. The OFS includes a base offer of 9.66% and an oversubscription option of 7.66%. The floor price for the offer is set at Rs 132 per share. Non-retail investors will have the opportunity to participate on August 22, with retail investors able to join on August 23. This OFS is expected to impact the stock’s trading volumes and price movements during the offering period.