Tag: Buzzing Stocks

Bajaj Electricals to review corporate structure; stock jumps 11%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bajaj Electricals share price jumped as much as 11 percent on Friday after the company’s board of directors authorised the management to review the corporate structure to unlock growth and value creation for all business segments.

At 9:30 am, the stock was trading 8.1 percent higher at Rs 1,131.7 on BSE. The stock opened with a gain of 10 percent today. It was the best performer on Nifty500.

The stock has gained 85 percent YTD as compared to Nifty500’s 31 percent surge.

Bajaj Electricals is currently engaged in the Consumer Product segment which includes appliances, fans and consumer lighting products, and an Engineering Procurement and Construction segment that includes power transmission and power distribution and illumination projects.

The company also has a strong presence in premium home appliance and cookware segments with brands like Morphy Richards and Nirlep.

Also Read | Star Health to list on BSE, NSE today: How D-Street is reading grey market trend

“Considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing corporate structure,” Bajaj Electricals said in a press release.

“This will encompass an evaluation of full range of options and alternatives (including demerger(s), subsidarisation(s), strategic partnerships etc.),” the company added.

Streamlining of the business structure, tailoring capital structure and capital allocation policies, distinct investment profiles, accelerating sustainability initiatives and expediting ESG practices are some of the strategic objectives outlined by the Board of Directors.

“I am confident that this will help each of the business segments to bootstrap and unleash growth in an unconstrained manner,” said Anuj Poddar, Executive Director of Bajaj Electricals.

Bajaj Electricals reported a growth of nearly 18 in its consolidated net profit at Rs 62.55 crore for the quarter ended September 2021. Its total revenue from operations rose nearly 7 percent to Rs 1,302.02 crore during the September quarter, as against Rs 1,217.71 crore in the corresponding period last year.

Catch all LIVE stock market updates here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea shares surge 15% in trade today; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The share price of Vodafone Idea (Vi) surged as much as 15 percent on Thursday after a report said the company has raised enough money to pay bondholders as the due date approaches.

Vodafone Idea shares rose to a 52-week high of Rs 16.40. At 11:35 am, the stock was trading 12.7 percent higher at Rs 16.11. Its combined volumes rose to 95 crore, higher than yesterday’s 52 crore, but lower than the one-week average of 113 crore.

A Business Standard report on Wednesday said the company has managed to raise funds for the payment of bondholders’ interest on time. Vi is expected to pay Rs 6,000 crore from December 13 to March 2022. The telco has been in talks with lenders and investors to raise funds for the repayment of bonds.

Earlier on Wednesday, Anjali Hans, senior vice president of public policy for the company, batted for a level playing field for OTT and satellite internet players. Speaking at the India Mobile Congress, Hans said, “Same service, same rules would be the need of the hour if the entire digital ecosystem has to flourish together.”

Vodafone shares have risen over 25 percent in the past five sessions. The stock had scaled a fresh 52-week high on Monday amid the reports that the Department of Telecom (DoT) had released Vodafone Idea’s bank guarantees (BGs). The BGs were worth Rs 12,000 crore. However, in an exchange reply, the telecom disputed the reports saying it would keep the exchange informed if the regulator took any such action.

In a relief package to telcos, the government had given a four-year moratorium on the payment of adjusted gross revenue (AGR) dues. Earlier, the telecom companies were required to pay a part of their revenue to the government. While the telcos insisted on paying only the telecom revenue, the government maintained they pay the non-telecom revenue as well. In the relief package, not only did the government provide a moratorium on the existing dues, but it also removed ‘non-telecom revenue’ from the definition.

The government had provided structural reforms on the spectrum usage charges, licence and other fees. Saying that this regime was putting an undue burden on the sector, the government had rationalised it.

Stay tuned with LIVE updates on telecom stocks

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa shares swing as anchor investors’ lock-period ends

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Nykaa shares tumbled today after the one-month lock-in period for shares allotted to anchor investors in the public issues ended Wednesday. The shares of FSN E-Commerce Ventures declined as much as 5 percent to Rs 2,028, but later recouped much of the losses. At 11:45 IST, it was down half a percent to Rs 2,133.

Nykaa had raised around Rs 2,400 crore by selling over 2 crore shares to 174 anchor investors before the issue opened. Following a stellar response from all classes of investors, the shares listed at double the issue price.

The ending of the lock-in period does not mean all the anchor investors will sell out. But technically, all shares allotted to anchor investors can come into the system, increasing the supply of shares available. Some traders short sell just before the lock-in ends, hoping to buy back the shares if it declines due to selling by anchor investors. But if anchor investors do not sell the shares, the stock will rebound quickly. Sustained weakness from the last day onwards of the lock-in could mean some anchor investors have decided to sell.

In December, the lock-in period of 10 stocks will get over. These stocks are One97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa), Sapphire Foods (franchisee of Yum Brands that owns KFC and Pizza Hut), PB Fintech (PolicyBazaar) to name a few.

Who are anchor investors?

Anchor investors are qualified institutional investors, like sovereign wealth funds or mutual funds. They also belong to the QIB category of the IPO. But the price of the shares allotted to them is decided separately.

Companies rope in anchor investors usually a day before the IPO opens to create a demand for the company’s shares. Every anchor investor has to invest a minimum of Rs 10 crore in the issue.

Why do companies rope in anchor investors?

The higher the money company raises via anchor investors, the healthier demand is considered for the shares of those companies. So, these investors boost the prospects of the success of an IPO.

Retail investors look closely to these anchor investor numbers since they attest to the credibility of an IPO.

What is the lock-in period?

While anchor investors buy the shares before the issue opens for other investors, they cannot sell the shares until 30 days after the listing. This period of thirty days is called a lock-in period.

Why are anchor investors supposed to keep the funds locked in?

The lock-in period prevents a major fall in the share price post-listing. So, if institutional investors put in the money for listing gains, they cannot do so within the initial thirty days and hurt the share price.

How does it impact stocks?

Historically, shares come under pressure a month after the listing, because usually some of the anchor investors may choose to sell. This could be for a variety of reasons, and not necessarily a reflection of the company’s fundamentals. For example, Zomato shares had declined 6 percent on the day the lock-in period ended.

Stay tuned for regular stock market updates

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Banking stocks extend gains as RBI keeps key rates unchanged

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Banking stocks extended initial gains on Wednesday after the Reserve Bank of India (RBI) decided to stand pat on the repo rate. RBI kept the repo rate unchanged at 4 percent and the reverse repo rate at 3.35 percent.

The Nifty Bank index was up 1.5 percent at 37,167.60 points.

Banking stocks are seen benefiting from the status quo decision, as it is expected to encourage lending.

Shares of lenders such as ICICI Bank, State Bank of India, RBL Bank, Bandhan Bank, Axis Bank, AU Small Finance Bank, IndusInd Bank, Kotak Mahindra Bank and Punjab National Bank rose in the range of 0.6 percent to 2.2 percent.

Also Read | Explained: What is reverse repo rate, what does it signal?

The Monetary Policy Committee (MPC) voted 5:1 to continue with an ‘accommodative’ stance. RBI Governor Shaktikanta Das said the central bank will keep the stance accommodative as long as necessary to support and sustain economic growth.

Repo rate is the rate at which banks borrow money from the Reserve Bank while reverse repo rate is the rate at which RBI borrows from banks. Commercial banks borrow funds only if they witness a shortfall in their funds. The monetary policy committee of a country uses the reverse repo rate as a tool to control the money supply in the country.

Check LIVE RBI monetary policy updates here.

Check all LIVE stock market updates here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea shares surge 12%, hit 52-week high; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Vodafone Idea stocks surged over 12 percent, hitting a 52-week high in the last hour of trading on the Bombay Stock Exchange on Friday. The stock rallied on account of the telecom department returning bank guarantees to the tune of Rs 12,000 crore to Vodafone Idea.

The Department of Telecommunications (DoT) will return BGs worth Rs 20,000 crore that Vodafone Idea and Bharti Airtel had furnished to cover spectrum payments. Since the spectrum payments have been deferred as per the new relief package, DoT will ask the telcos to furnish the BGs a year before the deferred period is up.

Reduction in BGs will benefit the telecom companies by decreasing banks’ exposure to Vodafone Idea. Currently, they have an exposure worth Rs 14,000 crore in the company. It would further help the company to raise credit and boost its chances of survival. IDFC First Bank and Yes Bank have the highest exposure to the debt-laden telco. The State Bank of India also has an exposure of Rs 11,000 crore.

The stock opened at Rs 12.81 and closed to Rs 14.40, rising 12.5 percent. In the past five sessions, the stock has risen over 20 percent, as a flurry of positive pieces of news brought traders back to the stock of this debt-laden telecom company. Meanwhile, the benchmark Sensex has been underperforming as it rose 0.8 percent.

In the past two weeks since the telco announced hiking the tariff rates, the stock has clocked returns worth 33 percent. The tariff hikes will increase the company’s average revenue per user (ARPU), which in turn, will lighten its financial strain.

On Thursday, the results of the one-time spectrum charge case (OTSC case) had pumped the stock 6 percent higher in the first two hours of trade.

The telcos owe Rs 40,000 crore to the DoT and the hearing of the Supreme Court was to clarify whether the government is withdrawing the demand. If the government withdraws the demand, both Vodafone Idea and Bharti Airtel would benefit.

All of this would add up to the relief package government provided to the telecom industry in September. Under the relief package, Vodafone Idea chose to der the payment of adjusted gross revenue (AGR) and spectrum dues by four years.

Meanwhile, according to the exchange filing, the exchange has sought clarification from Vodafone Idea with reference to news appeared in www.telecom.economictimes.indiatimes.com dated December 3, 2021 quoting “The telecom department has so far released Rs 6,000 crore BGs to both telcos, of which Rs 3,500 crore has been returned to Airtel and Rs 2,500 crore to Vodafone Idea. The reply is awaited.”

Track latest stock market updates here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow