Stocks to Monitor: Reliance Industries, Shriram Finance, UPL, Vodafone Idea, PB Fintech

On February 29, 2024, the equity benchmark indices Sensex and Nifty are expected to start higher as investors await the release of Q4 GDP data and the PCE inflation index in the US later today. As of 7:30 am, the Gift Nifty futures were up by 45 points at 21,967.

Reliance Industries: Reliance Industries Ltd (RIL) and Walt Disney have decided to merge their media operations in India, creating a media powerhouse worth Rs 70,352 crore. The agreement involves integrating Viacom18's media business into Star India through a court-approved arrangement. Once the deal is completed, Reliance will own a 16.34 percent stake in the joint venture, Viacom will own 46.82 percent, and Disney will own 36.84 percent. Nita Mukesh Ambani will be the chairperson of the joint venture, with Uday Shankar serving as vice-chairperson.

Shriram Finance, UPL, Jio Financial Services: The National Stock Exchange has recently announced its decision to replace UPL with Shriram Finance in the Nifty 50, effective from March 28, 2024. Jio Financial Services will also be added to the Nifty Next 50. This move is expected to bring in an inflow of $217 million to Shriram while UPL is likely to experience an outflow of $114 million due to the reshuffling in Nifty 50. Additionally, Adani Power, Indian Railway Finance Corporation, Power Finance Corporation, and REC will also be included in the Nifty Next 50 along with Jio Financial Services.

Vodafone Idea: The telecom company Vodafone Idea is reportedly considering raising a sum of Rs 20,000 crores through a public sale of new equity shares. The Aditya Birla Group, the company's promoter, may contribute the remaining funds in exchange for preference shares, as per insiders familiar with the fundraising efforts. Following the company board's approval of the fundraising proposal, Vodafone Idea's shares dropped over 11 percent on February 28.

PB Fintech: Policybazaar Insurance Brokers, a fully owned subsidiary of PB Fintech, has received a Certificate of Registration from the Insurance Regulatory and Development Authority of India (IRDAI), authorizing it to operate as a composite insurance broker as of February 28. Consequently, Policybazaar's classification has been updated from Direct Insurance Broker (Life & General) to Composite Insurance Broker.

ICICI Securities: ICICI Securities, a brokerage firm, announced on Wednesday, February 28, that the Securities and Exchange Board of India (SEBI) has issued an administrative warning to the company regarding its merchant banking operations. This warning, as stated in an exchange filing, does not have an immediate impact on the company's financial or operational activities. ICICI Securities has reiterated its commitment to conduct its operations in compliance with all relevant laws and regulations.

Yes Bank, Paytm: Prashant Kumar, the Managing Director and CEO of Yes Bank, has shown interest in acquiring the merchants that have been secured by Paytm Payments Bank (PPBL). However, he emphasized that this would only be possible after a thorough KYC (Know Your Customer) compliance check and due diligence, as it aligns with the bank's business strategy. Kumar also highlighted the fact that Paytm has a significant customer base within the merchant sector, which presents a lucrative opportunity for Yes Bank.

Vedanta: The mining conglomerate Vedanta Limited has set a target of achieving pre-tax profits of $6 billion in the upcoming fiscal year and plans to increase it to $7-7.5 billion in the following year. The company expects this growth to be fueled by operational efficiencies across all its businesses. At a recent meeting with analysts, Ajay Goel, the CFO of Vedanta Limited, stated that the foundations for EBITDA growth are already established and largely within their control. The surge in profits will be propelled by continuous cost reduction, price hikes, and volume escalation. The company projects an EBITDA of nearly $5 billion in FY24. However, after accounting for one-time gains from the Cairn arbitration, the operational EBITDA for FY24 is projected to be $4.4 billion.

Coal India: A government-owned coal mining company has joined forces with BHEL to venture into the coal-to-chemicals industry. Their first joint project involved setting up a plant that could convert coal to 2,000 TPD (tons per day) of ammonium nitrate using BHEL's proprietary PFBG (pressurized fluidized bed gasification) technology. Coal India will hold a 51 percent stake in this partnership, while BHEL will own the remaining 49 percent stake.

Brightcom Group: The Securities and Exchange Board of India (SEBI), the market regulator, has confirmed its directives for 20 entities out of the 25 implicated in the Brightcom Group case. SEBI conducted an investigation into the allotment of shares and warrants through preferential issues and found that some allottees had only made partial payments. This investigation led to an interim order issued on August 22, 2023 and a confirmatory order on February 28. Ashwani Bhatia, a whole-time member of SEBI, has recommended that it be sent to the Enforcement Directorate (ED) for further scrutiny.

Punjab & Sind Bank: The board of a government-owned bank has granted its approval to raise a maximum of Rs 2,000 crore. This fund-raising can be achieved in one or more installments over the next 12 months through various methods, such as a Follow-on Public Offer, Rights Issue, Qualified Institutional Placement (QIP), Preferential Issue, or any other combination. Additionally, the board has authorized the raising of funds through Basel-III-compliant Additional Tier-I and Tier-II bonds.