Stocks Radar: Coffee Day, Equitas Holdings, NBCC, Somany Ceramics, Varun Beverages

The Indian stock markets rose as much as 400 points from the day’s low, led by gains in ICICI Bank Ltd. and Housing Development Finance Corporation Ltd.

At 11:17 am, the S&P BSE Sensex was up 0.43 percent to 37,142.24 points and the NSE Nifty 50 was trading 0.53 percent higher at 11,003.80. UPL Ltd. was the top gainer on the Nifty 50 Index while HCL Technologies Ltd. was the top loser.

The market breadth was tilted in favour of buyers. As many as 1,079 stocks advanced and 568 shares declined on the National Stock Exchange. Nine out of 11 sectoral gauges compiled by NSE traded higher, led by NSE Nifty FMCG Index’s 1.07 percent gain. NSE Nifty IT Index was the top sectoral loser, down 0.44 percent.

Here’s a look at the stocks in news moving the markets today:

Equitas Falls As RBI Declines Request To Extend Deadline For Listing SFB

Shares of Equitas Holdings Ltd. slumped 11.98 percent intraday to Rs 102.15 apiece, the most since Aug. 5, as the Reserve Bank of India declined its request to extend the deadline for listing Equitas Small Finance Bank.

RBi in a letter said that listing of small finance banks within three years of reaching net worth of Rs 500 crore is mandatory. As per the central bank’s licensing requirements, the deadline for listing the bank was Sept. 4.

As a punitive measure, the banking regulator imposed the following restrictions on Equitas Small Finance Bank with immediate effect:

• Bank is not permitted to open new branches till further notice.
• Remuneration of MD and CEO of the bank stands frozen till further notice.

Further restrictions may be imposed if Equitas Small Finance Bank fails to make “satisfactory progress” towards listing of its shares, the RBI letter said.

The Equitas Holdings stock has declined 29 percent over the past 52 weeks, as compared to a 3.3 percent fall in Sensex, Bloomberg data shows.

NBCC Rises On New Plan To Revive Stalled Jaypee Group Projects

Shares of state-owned NBCC (India) Ltd. as much as 3.50 percent to Rs 37.00 apiece, extending gains for the third trading session.

On Thursday, NBCC told the Supreme Court that it was willing to give a revised plan to complete the stalled projects of debt-laden Jaypee Infratech Ltd. The top court directed all stakeholders, including homebuyers, to make representation to NBCC within one week so that their concerns are taken note of in the revised plan.

The NBCC stock is up 3.7 percent in the last five days and 5.8 percent in the past 30 days, Bloomberg data shows.

Varun Beverages Falls After Rs 900 Crore QIP

Shares of Varun Beverages Ltd. fell as much as 3.07 percent intraday to Rs 607.05 apiece, after it raised Rs 900 crore in a qualified institutional placement.

On Sept. 7, PepsiCo Inc.'s India bottler said it sold 1.47 crore shares at an average price of Rs 612 apiece in the Sept. 3-6 QIP. Varun Beverages plans to use the proceeds for investments in units, repaying debts and for acquisitions, if any, according to the terms of the deal, reported by Bloomberg.

The trading volume for the Varun Beverages stock was 31 percent above the 20-day average for this time of the day, Bloomberg dats shows.

Coffee Day Rises After Report Says It Has Put Sical Logistics On Sale

Snapping a seven-day losing streak, shares of Coffee Day Enterprises Ltd. hit the upper circuit of Rs 64.10 apiece after a report said it has put subsidiary Sical Logistics on the block to pare debt.

Coffee Day Enterprises has hired ICICI Securities Ltd. as adviser for the potential transaction, which could see the group holding company raise Rs 1,000-1,500 crore, the Mint newspaper cited three people as saying.

On Sept. 7, the CCD operator told the stock exchanges that it has appointed IDFC Securities to identify “strategic options”, including divestment of its holding in Coffee Day Global Ltd. and any other group company other than Sical Logistics.

The Coffee Day stock has declined 78 percent in the last one year, compared to a 3.3 percent fall in the benchmark Sensex, Bloomberg data shows.

Somany Ceramics Falls After Its Stockbroker Defaults

Investors dumped shares in Somany Ceramics Ltd. after a stockbroker of one of India’s largest listed tilemakers defaulted in repayment of outstanding loans.

Sonamy Ceramics told the bourses that a cheque of more than Rs 26 crore issued in its favour by Mentor Financial Services Pvt. Ltd. has bounced owing to insufficient funds.

“The company issued demand notices for repayment to Mentor Financial Services, its directors and its authorised signatory as per requirements of the applicable law,” the exchange filing said.

The Somay Ceramics stock has declined 49 percent in the past one year, as compared to a 3.3 percent fall in the Sensex, Bloomberg data shows.