Stocks Radar: DFM Foods, Meghmani Organics, Quess Corp, Reliance Nippon, Yes Bank
Here’s a look at the stocks in news moving the markets today.
Indian equity benchmarks opened higher in today’s trade, mirroring their Asian counterparts.
The S&P BSE Sensex and the NSE Nifty 50 Index rose nearly 0.2 percent to trade at 37,239 and 11,025, respectively, at 10:05 a.m. The broader market represented by the NSE Nifty 500 Index rose 0.27 percent.
The market breadth was tilted in favour of buyers, as 1,241 stocks advanced and 381 declined on the National Stock Exchange. Eight of the 11 sectoral gauges advanced, led by a 1.92 percent gain in the NSE Nifty Metal Index. The Nifty IT Index was the biggest loser, down 1.06 percent.
Here’s a look at the stocks in news moving the markets today:
DFM Foods Falls Most In Four Months
Shares of DFM Foods Ltd. fell as much as 8.9 percent, the most in almost four months, to Rs 250.1 apiece.
AI Global Investments (Cyprus) PCC Ltd., a subsidiary of U.S.-based private equity firm Advent International Corporation, will acquire 3.4 crore shares, or 67.9 percent stake in DFM Foods Ltd. for Rs 852 crore, the maker of ‘Crax’ snack said in an exchange filing on Monday.
The stake is being bought from the company’s promoters, and existing investors—WestBridge Crossover Fund and Jwalamukhi Investment Holdings, the filing said. The deal will reduce the promoters’ stake to zero from 38.27 percent currently, it said.
AI Corp also launched an open offer for another 26 percent stake, or 1.3 crore shares of DFM Foods at Rs 249.5 apiece. The open offer for 1.3 crore shares has a face value of Rs 2 each, DFM Foods said in a separate exchange filing. The acquirer, it said, has appointed lClCl Securities Ltd. as the manager to the open offer.
The DFM Foods’ stock has gained 9 percent in the last year, Bloomberg data showed.
Meghmani Organics Rose To Its Highest In A Month
Shares of Meghmani Organics Ltd. rose as much as 3.72 percent to Rs 52.95 apiece—the highest in more than a month.
Meghmani Finechem Ltd. will foray into a project of Epichlorohydrin—used as a catalyst to make epoxy resins—with an annual capacity of 50,000 tonnes, Meghmani Organics, which has 57 percent of equity shares in Meghmani Finechem, said in an exchange filing.
The project—based on Epicerol technology, which uses glycerine obtained from 100 percent renewable resources as feed stock—will be set up with a capex of Rs 275 crore, and is expected to generate a revenue of Rs 460 crore per annum at an optimum operating rate, the filing said.
Meghmani Finechem will be the first to manufacture Epichlorohydrin in India. Currently, this is imported entirely for domestic consumption, the filing said.
Reliance Nippon Falls On Promoter’s Stake Sale Plan
Shares of Reliance Nippon Life Asset Management Ltd. fell as much as 0.58 percent to Rs 284 apiece.
Reliance Capital Ltd. will sell up to 1.93 crore shares, representing 3.15 percent equity, in Reliance Nippon Life Asset Management for more than Rs 505 crore through offer-for-sale on Wednesday and Thursday, according to an exchange filing. The offer for retail investors will open on Sept. 12.
Reliance Capital, one of the promoters of Reliance Nippon, has an option to sell an additional 1.93 crore shares in case of over-subscription, the filing said.
The stock of Reliance Nippon has gained 26 percent in the last one year, Bloomberg data showed.
Quess Corp Gains On CCI Nod For Amazon Deal
Shares of Quess Corp Ltd. rose as much 2.3 percent to Rs 465.5 apiece, extending the gains for the second straight trading session.
The Competition Commission of India has cleared the acquisition of equity share capital of Quess Corp by Amazon.com NV Investment Holding LLC, according to an exchange filing.
In July, Quess Corp had said its board approved the issuance of more than 7.54 lakh equity shares to Amazon.com NV Investment Holdings for Rs 51 crore.
Yes Bank Gains On Clarifying Stake Sale Reports
Shares of Yes Bank Ltd. rose as much as 7.7 percent to Rs 68 apiece.
The lender on Tuesday clarified that the news reports on stake sales by the private lender and its Co-Founder Rana Kapoor are “speculative in nature”.
Reuters, quoting Yes Bank’s Chief Executive Officer Ravneet Gill, reported that the lender is close to securing a deal to sell a minority stake to a global technology company to help boost its capital.
Also, the Press Trust of India, quoting people aware of the matter, said Kapoor and his family are in preliminary discussions to sell their entire stake in Yes Bank to Paytm.
Yes Bank’s stock has declined 79 percent in the past year, Bloomberg data showed.