Stocks Radar: Yes Bank Shares Surge 39% After Getting $1.2 Billion Investment Offer
The silhouettes of towers under construction are reflected in the facade of a commercial building in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: Yes Bank Shares Surge 39% After Getting $1.2 Billion Investment Offer

Indian equity benchmarks on Thursday extended gains for the fifth consecutive trading session, with the benchmark S&P BSE Sensex hitting a fresh all-time high.

At 01:25 pm, the S&P BSE Sensex was trading 0.61 percent higher at 40,294.79 points while the NSE Nifty 50 was 0.64 percent up at 11,919.

A look at the stocks in news moving the markets today.

Yes Bank Gets Binding Offer of $1.2 Billion, Shares Surge 39%

Shares of Yes Bank Ltd. surged as much as 38.6 percent, the most in over 14 years, to Rs 78.70 apiece, after the private lender said it has received a binding offer of $1.2 billion from a global investor.

“Yes Bank has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares, subject to regulatory and shareholder approvals," Yes Bank said in an exchange filing. The lender also continues to be in advanced discussions with other global and domestic investors.

Trading volume for the Yes Bank stock was 30 percent below the 20-day average for this time of the day, Bloomberg data showed.

TVS Motor Plans To Expand In Central America, Shares Fluctuate

Shares of TVS Motor Company Ltd. fluctuated after the maker of Apache motorcycles announced a plan to expand its presence in Central America.

The Chennai-based two-wheeler maker on Wednesday said it is has partnered with Cadisa Group for setting up sales outlets in Guatemala and El Salvador, as part of its plans to strengthen presence in Central America.

As a part of this association, Cadisa—one of the largest business groups in Guatemala and El Salvador—will facilitate the opening of 15 flagship outlets for TVS Motor in a phase-wise manner, the company said in a statement.

TVS Motor shares are up 7.5 percent in the past five days and rose 17 percent in the past 30 days.

Bandhan Bank Rises After HDFC Buys Stake

Shares of Bandhan Bank Ltd. rose as much as 2.06 percent to Rs 626.90 apiece.

Housing Development Corporation Ltd. has acquired 9.89 percent stake in Bandhan Bank as part of a scheme of merger. As many as 15.93 crore shares of the bank was transferred to HDFC, the lender said in a regulatory filing.

Earlier in October, Bandhan Bank merged with Gruh Finance Ltd., which brought down the shareholding of the promoter from 82.26 percent to 60.96 percent.

Bandhan Bank shares are up 8.3 percent in the past five days and rose 26 percent in the past 30 days.

Lakshmi Vilas Bank Surges After Large Trade

After remaining locked at the lower circuit for 21 days, The Lakshmi Vilas Bank Ltd. marked its second consecutive day of gains—rising as much 4.76 percent to Rs 15.40.

This, after 28 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data.

ICICI Lombard Plans To Buy Unbox’s Software, Shares Rise

Shares of ICICI Lombard General Insurance Ltd. rose 1.16 percent intraday to Rs 1,379.35 apiece on the National Stock Exchange.

The company plans to acquire proprietary software from Unbox Technologies, along with ancillary movable assets for housing the software and employees for operation, maintenance and development of the software, for an aggregate cash consideration of Rs 225 crore. The transaction is expected to be completed in the third quarter of the current financial year.

Besides, the company also entered in to a Bancassurance tie-up with Karur Vyasa Bank.

ICICI Lombard trades at 50 times its earnings per shares for the coming year.

HCC Jumps 19% After Three Offers For A Lavasa Buyout

Shares of Hindustan Construction Company Ltd. rose as much as 19.6 percent, the most in more than a year, to Rs 10.05 apiece.

Lenders to Lavasa Corporation, operated by HCC, are set to decide on Thursday on the three offers made for the beleaguered realty company by food major Haldiram Snacks, Pune-based builder Aniruddha Deshpande and UV Asset Reconstruction Company, the Business Standard reported on Thursday.

Trading volume for the HCC stock was 20 times the 20-day average for this time of the day, while its one-month implied volatility stood at 278 percent, Bloomberg data showed.

Central Bank Of India Extends Rally, Shares Jump 18%

Shares of Central Bank of India extended gains for the fifth consecutive trading session, rising as much as 18.23 percent to Rs 24.65 apiece.

The capital-raising committee of the lender’s board has approved issuing preferential capital of 158 crore shares worth Rs 3,353 crore to the Government of India, subject to the approval of shaeholders, according to an exchange filing on Oct. 30.

The stock is up 37 percent in the past five days and rose 29 percent in the past 30 days, Bloomberg data showed.

Stocks Reacting To Q2 Results 2019-20

Container Corporation of India (Q2, YoY)

  • Stock rose as much as 2.7 percent to Rs 608.60.
  • Revenue fell 4.6 percent to Rs 1,738.7 crore.
  • Net loss stood at Rs 322 crore versus net profit of Rs 336.1 crore.
  • Ebitda fell 15.6 percent to Rs 425.5 crore.
  • Margin stood at 24.5 percent versus 27.7 percent.
  • Other operating expenses rose 9 percent to Rs 225.1 crore.

CreditAccess Grameen (Q2, YoY)

  • Stock rose as much as 4.8 percent to Rs 674.80.
  • Net interest income rose 23.3 percent to Rs 259.4 crore.
  • Net profit rose 37.3 percent to Rs 100.9 crore.
  • GNPA at 0.52 percent versus 0.55 percent quarter-on-quarter.
  • NIM at 12.1 percent versus 12.6 percent QoQ.
  • Gross loan portfolio rose 36.4 percent at Rs 7,905 crore.

Tata Global Beverages (Q2, YoY)

  • Stock rose as much as 5.1 percent to Rs 306.50.
  • Revenue rose 4.2 percent to Rs 1834.1 crore.
  • Net profit fell 18.9 percent to Rs 137.7 crore.
  • Ebitda rose 41 percent to Rs 234.7 crore.
  • Margin stood at 12.8 percent versus 9.5 percent.

JK Tyre & Industries (Q2, YoY)

  • Stock rose as much as 14.4 percent to Rs 80.35.
  • Revenue fell 13.6 percent to Rs 2,155 crore.
  • Net profit rose 3.3 times to Rs 170.1 crore.
  • Ebitda rose 12.8 percent to Rs 296.4 crore.
  • Margin stood at 13.8 percent versus 10.5 percent.

Quess Corp (Q2, YoY)

  • Stock rose as much as 9.5 percent to Rs 519.
  • Revenue rose 26.7 percent to Rs 2,650.3 crore.
  • Net profit fell 2 percent to Rs 60.6 crore.
  • Ebitda rose 44.1 percent to Rs 161.4 crore.
  • Margin stood at 6.1 percent versus 5.4 percent.
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