Stocks Watch List: Canara Bank, Paytm, Wipro, Zee, Yes Bank, Crompton Greaves, Titan
Investors should keep an eye on the stock market on February 27, 2024. After experiencing two consecutive days of losses, the market sentiment remains weak, with both the Sensex and Nifty indices anticipating another slow start on Tuesday. At 7:25 AM, Gift Nifty futures were flat at 22,143. In the United States, the S&P 500 index fell 0.38 percent, the Nasdaq Composite declined 0.13 percent, and the Dow Jones lost 0.16 percent overnight.
Canara Bank: Canara Bank, a public sector lender, has announced that it will be splitting each share into five shares. The move is aimed at making the bank's share more affordable for retail investors and to broaden the retail investor's base. This initiative is expected to improve the liquidity of the Bank's shares as well. The expected completion time for the stock split is around 2-3 months. Currently, the Centre owns almost 63 percent stake in Canara Bank, while public shareholders own the remaining shares.
Paytm: The company's founder Vijay Shekhar Sharma has stepped down as non-executive chairman of Paytm Payments Bank as the lender overhauls its board in the face of regulatory strictures. Sharma stepped down to aid the payments bank in the transition, parent company One97 Communications Ltd said in a regulatory filing on Monday. The payments bank has also appointed Central Bank of India’s former chairman Srinivasan Sridhar, retired civil servants Debendranath Sarangi and Rajni Sekhri Sibal, and former executive director of Bank of Baroda Ashok Kumar Garg as independent directors on its board.
Wipro: Wipro and Nokia Corporation have collaborated to introduce a private 5G wireless solution targeted towards enterprises looking to transform their businesses digitally. The solution will first be offered to companies operating in the manufacturing, energy, utilities, transportation, and sports entertainment sectors. According to Wipro, the new technology's speed and security, combined with AI-driven automation, will enhance the operational efficiency of companies.
Zee Entertainment Enterprises: The Securities and Exchange Board of India (SEBI) has informed the Securities Appellate Tribunal (SAT) that Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises, is not cooperating in an investigation into the alleged diversion of funds from the media company. Chandra's legal counsel has contested these allegations. Representing SEBI, senior counsel Darius Khambata said that Chandra's claims of cooperation were baseless and pointed out that the regulator's efforts to engage with him have only been met with promises of delayed responses.
Yes Bank: According to reports, the CEO of a private lender, Prashant Kumar, has stated that the bank plans to increase lending to small and medium-sized businesses in order to improve its return on assets (RoA). In an interview, Kumar emphasized that the bank's primary goal is to focus on profitability without resorting to aggressive measures. The bank's initial objective is to achieve a RoA of 1 percent within the next two years, followed by 1.5 percent within 3-5 years. As of the October-December quarter, Yes Bank's RoA was at 0.2 percent.
Crompton Greaves Consumer Electricals: HDFC Mutual Fund acquired 13.71 million shares or a 2.14 percent stake in Crompton Greaves Consumer Electricals through open market transactions on Friday, according to an exchange filing on February 26. Post-acquisition, HDFC Mutual Fund's stake in Crompton Greaves has increased to 7.11 percent from 4.97 percent.
Titan: The company's ethnic wear chain Taneira, which was originally launched as a saree brand in 2017, is broadening its product range to include casual lehengas and low-priced kurtas. The plan is to draw more shoppers and enter smaller markets, said Ambuj Narayan, CEO, Taneira. The retailer is piloting various new collections in stores, such as cotton occasion wear and more kurtas, priced lower than what it already sells, he added.
CMS Info Systems: The promoter of cash management company CMS Info Systems, Sion Investment Holdings, is likely to sell up to 26.7 percent stake via block deals for Rs 1,500 crore, reported CNBC-TV18. The floor price of the deal is said to be worth Rs 360 per share at a 9 percent discount to Monday's closing price, sources said. IIFL Securities is the sole broker of the deal.
Pricol: The manufacturer of instrument clusters has received a show-cause notice from the Directorate General of GST Intelligence, Gurugram Zonal Unit. This notice may result in a tax demand of Rs 380 crore, along with interest and penalty. According to an exchange filing, the notice was received as a part of an industry-wide Goods and Services Tax (GST) investigation. The investigation concerns the classification of instrument clusters. While the company's method of classification would lead to a tax rate of 18 percent, the department's method would lead to a tax rate of 28 percent. The exchange filing also added that the company is not the only one facing such a demand from the department.
Bandhan Bank: Bandhan Financial Holdings, which is the promoter of Bandhan Bank, has successfully acquired a digital life insurance company from Aegon India Holding B.V. and Bennett, Coleman & Company. This strategic move has enabled BFHL to enter the insurance market. Aegon Life Insurance confirmed the acquisition on February 26 and stated that "The transition to BFHL ensures the continuation of Aegon Life's legacy of innovation and customer-centric approaches." The deal was announced in July last year, marking BFHL's entry into the life insurance sector in India, in addition to their existing presence in the banking and mutual fund sectors.
