Stocks Radar: Bajaj Finance, Coffee Day, CG Power, DHFL, Sintex Industries
Indian equity benchmarks struggled to remain in the green after a positive start today.
At noon, the S&P BSE Sensex was trading 0.12 percent higher at 36,523.31 points while the NSE Nifty 50 rose 0.12 percent to 10,830.55. Tata Steel Ltd. was the top gainer on the Nifty 50 Index while Britannia Industries Ltd. was the top loser.
The market breadth was tilted in favour of buyers. About 944 stocks advanced and 743 shares declined on the National Stock Exchange. Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 1 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.4 percent.
Here’s a look at the stocks in news moving the markets today:
Bajaj Finance's QIP Plan Boosts Its Share Price
Shares of Bajaj Finance Ltd. gained as much as 2.85 percent, the most since Sept. 6, to Rs 3464.50 apiece after the NBFC announced a plan to raise Rs 8,500 crore via a qualified institutional placement.
The company’s board of directors, at its meeting held on Sept. 17, approved raising of capital through QIP for an aggregate amount not exceeding Rs 8,500 crore by issue of equity shares, Bajaj Finance said in a regulatory filing on Tuesday. The approval, it said, is subject to shareholders' nod to be sought through a postal ballot.
The trading volume for the Bajaj Finance stock was 54 percent above the 20-day average for this time of the day.
Coffee Day Rises As Asset Sale to Blackstone Will Pare Its Debt
Shares of Coffee Day Enterprises Ltd. rose as much as 4.95 percent intraday to Rs 76.35 apiece.
Blackstone Group and Salapuria Sattva Group have agreed to acquire Coffee Day's Global Village Tech Park in Bengaluru as India’s largest cafe chain operator looks to pare debt.
On Tuesday, Coffee Day informed the exchanges the acquisition would take place at an enterprise value of around Rs 2,700 crore in two tranches. The first tranche is expected to be transferred before Oct. 31, according to an exchange filing, while the deal would be subject to conditions, including regulatory approval.
The transaction comes within a month of Coffee Day Enterprises announcing the sale to deleverage its assets and improve liquidity. With this transaction, it expects to reduce debt by nearly 80 percent to around Rs 1,000 crore.
The Coffee Day stock has declined 76 percent in the past 52 weeks while the Sensex lost 2 percent, Bloomberg data shows.
CG Power Falls As SEBI Orders Forensic Audit, Bans Gautam Thapar
Shares of CG Power And Industrial Solutions Ltd. fell up to 4.79 percent, the steepest decline since Sept. 13 to Rs 14.90 apiece.
This after Securities and Exchange Board of India barred from the market CG Power’s ousted Chairman Gautam Thapar and asked BSE Ltd. to conduct a forensic audit of the company’s financials since FY16.
The power equipment maker has seen its troubles spiral since Aug. 20 when it told the stock exchanges that it will restate earnings on becoming aware of some “suspect, unauthorized and undisclosed” transactions. A stake purchase by KKR & Co., clearly, has had little impact on alleviating issues.
The CG Power Stock has declined 71 percent in the past 52 weeks while the Sensex lost 2 percent, Bloomberg data shows.
Sintex Rises As Lenders Mull Retrieving Dues
Shares of Sintex Industries Ltd. fell as much as 3.77 percent to Rs 2.75, marking the stock’s highest intraday decline since Sept. 5.
According to a Sept. 18 Economic Times report, lenders to Sintex Industries are in talks with three companies to sell the firm, in a last ditch effort to recover their dues totalling Rs 6,500 crore after efforts at other recoveries were fruitless.
The Balkrishan Goenka-controlled Welspun India, Rajinder Guptaowned Trident Group and Paul Oswal-controlled Vardhman Group have been approached by the bankers to buy the debt-laden company, the ET report quoted three people as saying.
The Sintex Industries stock has declined 82 percent in the past 52 weeks while the Sensex lost 1.9 percent, Bloomberg data shows.
DHFL Falls After Resolution Plan Lacks Favour Among Bondholders
Shares of Dewan Housing Finance Ltd. fell as much as 5.57 percent to Rs 47.50 apiece after its debt resolution plan didn’t find favour among its bondholders.
Only a segment of the company's bondholders has agreed to be onboard the DHFL debt resolution plan, The Times of India quoted a bondholder as saying in a Sept. 17 report.
The DHFL stock had declined 92 percent in the past 52 weeks year while the Sensex lost 1.9 percent, Bloomberg data shows.