Stocks Radar: DLF, Lakshmi Vilas Bank, Mindtree, NIIT Technologies
Here are the stocks moving the market in today’s trade
Indian equity benchmarks rose, paced by gains in Infosys and metal stocks. The Sensex and Nifty traded flat at 38,851.10 and 11,652.15, respectively, as of 9:45 am.
The market breadth was tilted in favour of buyers. Seven of the 11 sectoral gauges compiled by the National Stock Exchange rose, led by a 0.52 percent advance in the NSE Nifty Media Index. The NSE Nifty IT Index was the top sectoral loser, down 0.28 percent.
Here Are The Stocks Moving The Market This Morning
Lakshmi Vilas Bank Hits Upper Circuit For Third Straight Session
Shares of the private lender rose as much as locked in the upper circuit for the third day in a row after it rose nearly 5 percent intraday to Rs 97.40 per share.
The board of The Lakshmi Vilas Bank Ltd. approved a scheme of amalgamation with Indiabulls Housing Finance Ltd., the two entities said in separate notifications to stock exchanges on Friday. For every one share of Rs 10 each, shareholders of Lakshmi Vilas Bank will receive 0.14 equity share of Rs 2 each of Indiabulls Housing Finance, the bank said in its filing. Indiabulls Housing Finance board appointed former RBI Deputy Governor SS Mundra as head of re-organisation committee to complete merger with Lakshmi Vilas Bank.
The shares of Indiabulls Housing Finance fluctuated between gains and losses to trade at Rs 904.40 apiece.
Here’s what brokerages had to say on the deal:
CLSA
- Share swap ratio implies 35 percent premium to LVB’s market price.
- Promoters open to cutting shareholding to 15 percent after merger.
Investec
- Merger may face regulatory hurdles; not much upside for Indiabulls.
- Merged bank is likely to be weak.
- Non-housing book of Indiabulls is key for return ratios.
Macquarie on Indiabulls Housing Finance
- Maintained ‘Outperform’ with a price target of Rs 836.
- Odds are stacked against RBI approval. In the past RBI wielded considerable subjectivity allowed to it under the ‘fit & proper’ clause.
- Despite having persons with good credentials on its board, Indiabulls failed to get license earlier.
HDFC Bank Gains After Q4 Update
Shares of the private bank rose close to a percent to Rs 2,322.95 apiece.
The bank’s advances were up 24 percent to Rs 8.19 lakh crore on a yearly basis, according to its notification to the bourses. Deposits rose 17 percent to Rs 9.23 lakh crore. CASA ratio was at 42 percent versus 43.5 percent year-on-year. The bank also said it purchased loans aggregating to Rs 1,924 crore through direct assignment route under the home loan arrangement with HDFC.
The stock traded at 29 times its estimated earnings per share for the coming year, Bloomberg data showed.
DLF Slumps After A Block Deal
Shares of the real estate company declined as much as 5.3 percent, the most since Feb. 5, to Rs 191 apiece.
About 6.81 crore shares, or 3.5 percent equity, changed hands in a single block deal on NSE, according to Bloomberg data. Buyers and sellers weren't known immediately.
Trading volume was more than 70 times its 20-day average for this time of the day, according to Bloomberg data.
NIIT Technologies Falls After Baring To Buy Promoter’s Stake
Shares of the IT solutions provider declined 2.2 percent intraday, the biggest slide since Feb.15, to Rs 1,332.10 apiece.
Private equity firm Baring Private Equity Asia to acquire 30 percent stake in NIIT Technologies from NIIT Ltd. and other promoter entities at Rs 1,394 per share, according to an exchange notification. Baring to make an open offer to acquire 26 percent stake from public shareholders of NIIT Tech at Rs 1,394.
The stock gained 49 percent in the past 12 months compared with a 16 percent gain in the Nifty.
Mindtree Swings After CCI Approves L&T Takeover
Shares of the Bengaluru-based IT company fluctuated between gains and losses to trade at 952.20 per share as of 9:30 am.
The Competition Commission of India said it approved diversified group Larsen & Toubro Ltd.'s proposed acquisition of up to a 66.15 percent stake in IT firm Mindtree Ltd.
Shares of Larsen & Toubro gained nearly 1 percent to 1,386.80 apiece. Eighteen out of 35 analysts rated a ‘Buy’ on the stock and 11 analysts had recommended a ‘Hold’, while six analysts had a ‘Sell’ recommendation.