Stocks Radar: Delta Corp, Glenmark Pharmaceuticals, Reliance Infrastructure
Here are the stocks moving the market this morning.
Indian stocks continued to consolidate for a second day, after a rally that took benchmarks to fresh record highs left some investors questioning the pace of gains. Glenmark Pharmaceuticals led the healthcare stocks lower after disappointing set of fourth quarter earnings.
Here are the stocks moving the market this morning:
Delta Corp: Launches QIP
Shares rose 1.7 percent to Rs 176 after the company launched its qualified institutional placement on Thursday.
The company is looking to raise Rs 550 crore through the QIP including a Rs 50 crore greenshoe option, bankers managing the offer told BloombergQuint on the condition of anonymity.
The board approved the fund raising at a floor price of Rs 162.78 per share, according to a stock exchange filing. The shares will be offered at a discount of up to 5 percent on the floor price, the filing added.
Kotak Mahindra Bank: To Raise Rs 5,662 Crore Through QIP
Shares of the private sector lender rose 1.1 percent to Rs 947 on its plan to raise Rs 5,662 crore through a qualified institutional placement. The bank will raise these funds by selling 6.2 crore shares, it said in a BSE filing.
This share sale is part of stake reduction exercise by its promoter Uday Kotak, the vice-chairman of the bank, as per the RBI advice. The floor price has been fixed at Rs 913.24 per share of Rs 5 each, the company added.
Reliance Infrastructure: Wins Arbitral Award
The company rose 6.3 percent to Rs 630 after it won a Rs 2,950 crore arbitral award in a dispute against the Delhi metro Rail Corporation. This award will help the Anil Ambani- promoted company pare some of its debt. The stock rose to its highest since September 2016 when it touched the Rs 635 mark.
The arbitral tribunal held the company’s decision to terminate its concession agreement for the Delhi Airport Metro project four years ago as valid, it said in a media statement. A three-member tribunal bench, chosen from a DMRC-nominated panel, unanimously ruled in favour of Reliance Infrastructure, the statement added.
Torrent Pharmaceutical: Receives Observations From U.S. FDA
The drugmaker fell 1.9 percent to Rs 1,294 after the U.S. Food and Drug Administration issued a form 483 with four observations after an inspection of its Gujarat facility. The stock gained the most since last week.
The observations were in regard to issues with quality of procedures, discrepancies and incorrectly calibrated lab equipment test procedures, according to Bloomberg.
A form 483 is issued when the regulator finds questionable condition while the inspection of a facility.
Max India: To Buy Stake In Max Healthcare
The stock rose 1.9 percent to Rs 158 after it announced that it will raise Rs 300 crore from Max Group's Founder and Chairman Analjit Singh.
The funds will help the company acquire a 3.75 percent stake in Max healthcare from International Finance Corporation. " Max India’s stake increase in Max Healthcare reflects our confidence in the company’s potential," said Rahul Khosla, president of Max Group, in a press release.
The move will result in Analjit Singh's holding in Max Healthcare to rise to 45.12 percent.
Shilpi Cable Technologies: CFO Resigns
Shares of the company fell 5 percent to Rs 67 after its Chief Finance officer Ajay Mahajan resigned, for an unspecified reason. Shailendra Kumar has been proposed as the next CFO of the company, it said in a filing. The stock’s value has dropped nearly 70 percent in the last four weeks.
Chitra Sarkar, a non executive independent director of the company also resigned citing personal reasons.
Earnings Reaction
Glenmark Pharmaceuticals dropped 16.3 percent to Rs 758 after its bottomline for the January to March quarter missed the street estimates by a large margin. Net profit rose to Rs 183.76 crore compared to the estimated Rs 580 crore. Net sales increased 6.5 percent to 2,457.20 crore on a year-on-year basis. Operating income also grew 46.2 percent in the same period.
This was the stock’s largest fall since August 2009 when it fell 17.8 percent.
Asian Paints rose 1.1 percent to Rs 1,179 after its profit rose 10.1 percent in the January to March quarter on a year-on-year basis. Sales rose 9 percent to Rs 4,416 crore. The company also announced a final dividend of Rs 10.3 per share for financial year 2016-17.
GlacoSmithKline Consumer Healthcare rose 2.8 percent to Rs 5,389 after its net profit rose 8.4 percent to Rs 176 crore while revue rose 1.4 percent. Profitability margins remained flat at 17.9 percent, as per the company's exchange filing.
Earnings Radar
- Dr. Reddy’s Laboratory (-1 percent to Rs 2,566)
- Titan (-1.2 percent to Rs 495)
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