Stocks In News: Aptech, Cipla, DHFL, Gati, Godfrey Phillips, ITI, Wockhardt, United Spirits
Here’s a look at the stocks in news moving the markets today.
India stocks rose as investors weighed the prospects of asset sales and a lower tax rate triggering a recovery in economic growth. Finance MInister Nirmala Sitharaman will present the Union Budget 2020-21 on Saturday, Feb. 1.
At 11:10 am, the S&P BSE Sensex was 0.02 higher at 41,164.87 points while the NSE Nifty was down 0.03 percent at 12,115.20. Housing Development Finance Corp. Ltd. was the top gainer on the Nifty 50 index while Vedanta was the top loser.
Here’s a look at the stocks in news moving the markets today.
DHFL Falls The Most In More Than Six Weeks
Shares of Dewan Housing Finance Corporation Ltd. declined the most since Dec. 13, 2019, falling as much as 4.76 percent to Rs 15.00 apiece.
On Monday, the Enforcement Directorate arrested DHFL’s Chairman and Managing Director Kapil Wadhawan in connection with its money laundering probe against late gangster Iqbal Mirchi and others.
On the same day, two Indiabulls Group entities moved the National Company Law Tribunal to recover dues against loans assigned to them by DHFL. The company had entered into an arrangement for assignment of loans with Indiabulls Commercial Credit Ltd. and Indiabulls Housing Finance Ltd. for a consideration.
The bankrupt NBFC has also withdrawn its draft resolution plan, formulated by the company’s old management, as it is no longer valid.
DHFL shares are down 5 percent in the past five days and fell 8.2 percent in the past 30 days, Bloomberg data shows. The stock has declined 92 percent in the past 52 weeks, according to the data.
ITI Falls To Lowest In More Than Six Weeks Amid Ongoing FPO
Shares of ITI Ltd. fell as much as 3.27 percent to Rs 85.80 apiece—the lowest since Dec. 12, 2019.
On Monday, the company’s follow-on public offer was subscribed 9 percent on the second day of the share sale, with the retail book witnessing 50 percent subscription.
Trading volume in the ITI stock was 21 percent above the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 44 percent were at the ask price and 18 percent were at the bid, according to the data.
Karnataka Bank Surges Most In Two Months After QIP Plan
Shares of Karnataka Bank Ltd. gained the most since Nov. 28, 2019, rising as much as 3.96 percent to Rs 77.50 apiece.
The board of the public sector bank has recommended a bonus issue of one share for every 10 held by a shareholder. It has also approved raising of funds by issuing 15 crore equity shares in a qualified institutional placement.
Trading volume in the Karnataka Bank stock was almost triple the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 27 percent were at the ask price and 63 percent were at the bid, according to the data.
Godfrey Phillips India Shares Slump Most In A Week
Shares of Godfrey Phillips India Ltd. declined the most since Jan. 20, 2019, falling as much as 3.57 percent to Rs 1,390.00 apiece.
The KK Modi Family Trust is said to have put its stake in Godfrey Phillips India, which sells the Red & White and Four Square brands of cigarettes, and other family controlled assets on sale as members of the trust have failed to reach a consensus on running the businesses after the demise of the family patriarch, the Economic Times reported on Jan. 27, 2020.
In response, the company in an exchange filing said it is neither engaged nor privy to any such discussions on rumoured potential transaction by its promoters. "The company has also received a clarification from its significant promoter that there has been no decision to put its assets on sale," according to the filing.
Trading volume in the stock was more than eight times the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 32 percent were at the ask price and 52 percent were at the bid, according to the data.
Aptech Slumps Most In Three Weeks
Shares of Aptech Ltd. declined the most since Jan. 6, 2020, falling as much as 4.70 percent to Rs 165.30 apiece.
Billionaire investor Rakesh Jhunjhunwala is being probed by Securities and Exchange Board of India for alleged insider trading in the shares of Aptech, an education firm owned by him and family, the Economic Times reported Tuesday, citing two people familiar with the development.
SEBI is also investigating the role of other family members who are shareholders, as well as some board members, including investor Ramesh S Damani and director Madhu Jayakumar, the persons added.
Aptech shares are down 4.9 percent in the past five days and fell 2.2 percent in past 30 days, Bloomberg data shows. The stock has declined 1.3 percent in the past 52 weeks, according to the data.
United Spirits Surges Most In Nearly 14 Months After Q3 Results
Shares of United Spirits Ltd. gained the most since Nov. 1, 2018, rising as much as 8.95 percent to Rs 627.20 apiece. The company reported its December quarter results on Monday.
Net profit of the Diageo Plc-controlled firm rose 15.1 percent year-on-year to Rs 235.3 crore in the third quarter of 2019-20 on the the back of revenue that increased 3 percent to Rs 2,587.6 crore.
United Spirits Q3 Results: Key Highlights (YoY)
- Revenue rose 3 percent to Rs 2,587.6 crore
- Net profit rose 15.1 percent to Rs 235.3 crore
- Ebitda rose 19.2 percent to Rs 425.7 crore
- Margin stood at 16.5 percent versus 14.2 percent
Trading volume in the stock was almost 30 times the 20-day average for this time of the day, Bloomberg data shows.
Wockhardt Extends Winning Streak To Four Days, At Highest Since July 2019
Shares of Wockhardt Ltd. rose as much as 6.28 percent to Rs 373.35—the highest since July 5, 2019.
Cipla Ltd. and Asian buyout fund PAG are vying with each other to acquire a big chunk of Wockhardt’s domestic formulations business for Rs 2,100-2,800 crore as the indebted pharmaceutical company looks to deleverage its balance sheet, the Economic Times reported Tuesday, citing people aware of the matter.
The news comes a day after Wockhardt in the December quarter reported its first profit in three years due to “marked improvement in operational performance and cost rationalisation”.
Wockhardt Q3 Results 2019-20: Key Highlights (YoY)
- Net profit at Rs 9.63 crore vs loss of Rs 82.17 crore a year ago
- Revenue fell 17 percent to Rs 87 crore
- Other income at Rs 17.2 crore
- Total costs at Rs 87 crore
- Ebitda as Rs 110 crore vs Rs 19 crore a year ago
- Net tax gain at Rs 2.79 crore in Q3
Trading volume in the stock was 13 times the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 47 percent were at the ask price and 34 percent were at the bid, according to the data.
Gati Shares Surge To Highest In More Than Six Months
Shares of Gati Ltd. rose 4.58 percent intraday to Rs 71.90 apiece—the highest since Jul. 15, 2019.
This, after 8.6 million shares—equivalent to 7.9 percent equity—of the logistics firm changed hands in two bunched trades. The identity of buyers and sellers of the stock was not immediately known.
Allcargo Logistics Ltd. is in the process of acquiring Gati. On Jan. 21, Allcargo said it has bought about 13 percent stake in courier firm, adding that it is on track to complete the process to acquire as much as 44.5 percent stake in the company.
Trading volume in the Gati stock was quadruple the 20-day average for this time of the day, Bloomberg data shows.