Stocks to Watch: Hindalco, ZEE, Devyani International, Union Bank of India, Power Finance Corp.
- Here are a few stocks likely to be in focus on Wednesday, February 21:
Hindalco Industries: The company has decided to take its US subsidiary Novelis Inc. public, 17 years after the Aditya Birla group flagship snapped up the top aluminium maker that now fetches over half of its revenue. In a surprise announcement on Tuesday, Novelis said it has submitted a confidential filing for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC). The IPO will be a secondary sale of shares by Hindalco, meaning Novelis will not receive any capital as part of the offer. Hindalco owns 100% of Novelis.
Zee Entertainment Enterprises: The company on February 20 issued a clarification denying reports of restarting discussions with the Sony group to revive their $10-billion merger deal that was scrapped on January 22. In a regulatory filing to the stock exchanges, Zee Entertainment stated that the company is not involved in any negotiations on the Sony merger deal and that reports suggesting a revival of talks are ‘factually incorrect’.
Devyani International: Yum Restaurants India is likely to sell its entire 4.4% stake in quick service restaurant firm Devyani International through a block deal to raise ₹814.8 crore, CNBC-TV18 reported on February 20 quoting sources. The floor price of the deal is likely fixed at ₹153.5 per share, a 7.6% discount to Devyani International's closing price on Tuesday. As of December 30, Yum Restaurants India held 5 crore shares in Devyani International. Devyani International is the largest franchisee for Yum Brands which operates KFC, Pizza Hut, and Taco Bell in India and the sole franchisee for Costa Coffee.
Union Bank of India: The public sector lender on Tuesday said the Committee of Directors for Raising Capital Funds has approved the raising of funds up to ₹3,000 crore via qualified institutions placement (QIP), it announced in an exchange filing. Union Bank of India said it approved the floor price of ₹142.78 per equity share for the issue and approved the opening of the issue today, i.e. February 20, 2024.
Reliance Industries, Tata Power, Adani Power, Vedanta: The government will invite private firms to invest about $26 billion in the nuclear energy sector to increase the amount of electricity from sources that don't produce carbon dioxide emissions, a report by news agency Reuters said. The government is in talks with at least five private firms including Reliance Industries, Tata Power, Adani Power and Vedanta to invest around ₹44,000 crore each, the report said. The Department of Atomic Energy and state-run Nuclear Power Corp of India Ltd (NPCIL) have held multiple rounds of discussions with the private companies in the past year on the investment plan.
JSW Steel, Tata Steel, ACC, JK Cement: These are among the 27 companies that have submitted bids for coal mines under the latest round of coal mine auctions which included the ninth round and the second attempt for seventh round. A total of 27 mines were on offer in the ninth round, while bids were received only for 13 mines, according to a statement from the union ministry of coal. Among the companies, Rungta Sons submitted the highest number of bids, with bids for five mines, followed by JSW Steel and JK Cement which have submitted bids for four mines each. Tata Steel has bid for two mines, while ACC has placed bids for one mine.
Power Finance Corp.: The state-run company on Tuesday signed a memorandum of understanding (MoU) with the Goa government to fund the state’s green energy ambitions through a blended finance facility. Under the MoU, PFC will provide financial support for Goa’s pivotal climate-related projects. These include initiatives in renewable energy, green hydrogen, electric vehicles, converting waste to wealth, and nature-based solutions, all contributing to an energy transition.
HDFC Bank: India’s largest private sector lender does not plan to grow “just for the sake of market share", chief executive Sashidhar Jagdishan said on Monday, a month after the lender faced investor ire over lower-than-expected margins in the December quarter. “We are not in the quantity game at all; we do not want to grow just for the sake of market share. This is not a new philosophy," said Jagdishan. He highlighted the bank's consistent performance in net interest margins, which have remained in the range of 4-4.4% over the years, excluding the integration effects of the Housing Development Finance Corp Ltd (HDFC) merger.
EIH: The Supreme Court on Tuesday upheld a Himachal Pradesh High Court’s order asking East India Hotels (EIH) to vacate and hand over the 5-star Wildflower Hall hotel in Mashobra, Shimla, to the state government by March 2025. Wildflower Hall is run by Mashobra Resort (MRL), in which EIH holds a 78.79% stake, according to the latter’s most recent annual report. Mashobra Resort reported a revenue of ₹80.23 crore in FY23, rising from ₹73.85 crore a year earlier. It reported a loss of ₹30.55 crore in FY23, from a net profit of ₹28.46 crore in FY22.
JSW Group: Keen to swiftly enter the world’s third-largest automotive market, Sajjan Jindal-led JSW Group may be eyeing alliances with more than one automotive original equipment maker (OEM) in India. The $23-billion conglomerate is considering dual alliances with leading global automotive OEMs Volkswagen Group of Germany and state-owned SAIC of China, two people aware of the matter said. While JSW has already inked a share purchase agreement with SAIC, the parent company of MG Motor India, to form a joint venture (JV) with a 35% equity stake, it is also in talks with Volkswagen, the world’s second-largest automotive manufacturer, to explore another JV.
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