Stocks to Watch: Reliance Industries, Adani Enterprises, Coal India, Vodafone Idea, Indian Hotels, Syngene and more
Reliance Industries | Reliance Consumer Products, a wholly-owned subsidiary of Reliance Retail announced a strategic partnership with Sri Lanka-based Maliban Biscuit Manufactories Pvt. Ltd. The company is known to be a pioneer in biscuit manufacturing in Sri Lanka and has expanded its range to crackers, cookies, and wafers as well. Maliban’s products are exported to over 35 countries across five continents.Adani Enterprises | The company’s Rs 20,000 crore follow-on public offer was fully subscribed on the final day of bidding. Overall subscription figures stood at 1.12x. QIB portion subscribed 1.26x while that for non-institutional investors was subscribed 3.32x. Retail subscription was only 12 percent. Sources also said that family offices of some leading Indian conglomerates are said to have participated in the FPO. CNBC-TV18 is awaiting confirmation on the same.Vodafone Idea | The board has once again approved the allotment of Optionally convertible, unsecured, unrated and unlisted debentures worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt. Ltd. Funds raised from this OCD issue will be used to pay amounts owed to ATC under the master lease agreement and some part will also be used for general corporate purposes. Another EGM will be convened on February 25 to seek shareholder approval.Coal India | December quarter sales at Rs 35,169 crore, better than estimates of Rs 34,300 crore. Topline beat translates into better EBITDA performance. Realisations mostly in line with Kotak Estimates, up 23 percent year-on-year at Rs 1,843 per tonne. FSA realisations at Rs 1,482 per tonne is up 9 percent from last year. However, other operating income up 12.2 percent from last year and 19 percent sequentially. Higher employee costs offset by lower power expenses. Also declared a second interim dividend of Rs 5.25.Indian Hotels | Reports best-ever quarter in the company’s history. Revenue up 52 percent from last year while net profit of Rs 403.5 crore aided by lower finance cost, higher other income and profit on sale of land (Rs 33.4 crore). On a sequential basis, revenue was up 37 percent while operating profit doubled. RevPAR at Rs 7,588 compared to Pre-Covid levels of Rs 5,917. Compared to pre-covid levels, revenue is up 23 percent while net profit is up 90 percent.Syngene | Sources tell CNBC-TV18 that Biocon will sell another 10 percent stake or 4 crore shares of the company in a large deal. The offer price for the range has been set at Rs 560 – Rs 562.30 per share for the stake sale, implying an offer size of Rs 2,240 crore at the lower end of the price range. This is the second time Biocon will be selling stake in its research arm to fund the Viatris deal after September 2022. Biocon currently holds 64.8 percent stake in Syngene. Shares of Biocon are near a 52-week low while those of Syngene are down 17 percent from their peak.Mahanagar Gas | The company has cut prices of CNG by Rs 2.5 per kg in anticipation of increased allocation. The price cuts will be effective from today. The revised MRP in and around Mumbai will now be at Rs 87 per kg. The revised MRP is now at a 44 percent discount to petrol.JSPL | Revenue and profit miss estimates for the December quarter while EBITDA was a beat purely due to lower costs. Net profit missed expectations due to an exceptional item of Rs 378 crore. EBITDA per tonne at Rs 11,384, higher than expectations of Rs 10,585 per tonne.Sterlite Tech | STL signed an agreement to sell its telecom products software business on a slump sale basis to Skyvera through its Indian subsidiary. Total consideration for the deal will be $15 million, subject to customary closing conditions. The telecom business comprised of 3 percent of the overall revenue in financial year 2022. The deal is part of the company’s strategy to sell sub-scale businesses and focus on the core opportunity.Vedanta | Vedanta Aluminium on Tuesday said it has raised $250 million (around Rs 2,045 crore) through sustainability-linked loans from international banks to finance its capital expenditure and reduce carbon footprint. Sustainability-linked loans are debt where a portion of the interest rate is linked the borrower’s ability to meet sustainability targets. The loans were granted on the basis of specific performance parameters for decarbonisation and safety, which the company aims to meet by deploying these funds towards capital expenditure.Shriram Finance | Lower cost of funds and operating expenses aid financial performance. AUM mix shows strong sequential growth in two-wheelers and personal loans. Net Interest Income and Net profit were ahead of expectations. Asset quality remains stable sequentially.Tata Motors | The company on Tuesday said it has raised the second and final tranche of Rs 3,750 crore from TPG Rise Climate as per an agreement inked in 2021. In October 2021, Tata Motors announced that it will raise $1 billion in its passenger Electric Vehicle (EV) business from TPG Rise Climate in exchange for compulsorily convertible preference shares to create a portfolio of EVs and dedicated Battery Electric Vehicle (BEV) platforms.
