Stocks Radar: Bandhan Bank, Vakrangee, IL&FS Transportation
Indian equity benchmarks swung between gains and losses as investors remained concerned about the health of the financial stocks.
The S&P BSE Sensex fell 0.58 percent to 36,052.99 and the NSE Nifty 50 Index fell 0.84 percent to 10,838.90 as of 11.34 a.m. The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges declined, led by a 2.41 percent decline in the NSE Nifty Realty Index. The NSE Nifty IT Index, however, bucked the trend, up 1.85 percent.
Here Are The Stocks Moving The Market This Morning
Bandhan Bank Hits A Record Low On RBI Restrictions
Shares of the private lender fell to its lowest level since listing, slipping 20.2 percent to Rs 451.20 apiece, after the Reserve Bank of India placed restrictions on its operations.
The central bank placed restrictions on Bandhan Bank as it failed to lower promoter holding to meet the cap prescribed by the regulator. The RBI stopped the bank from opening new branches unless it seeks the regulator’s approval each time, the microlender-turned-universal lender informed exchanges. The RBI also froze the remuneration to Managing Director and Chief Executive Officer Chandra Shekhar Ghosh at the current level till further notice.
The bank, however, said its promoters will look at various options, including acquisitions, to bring down shareholding in line with the RBI’s norms.
The stock trades 20 percent below the Bloomberg consensus one-year target price.
IL&FS Transportation Gains After Paying Debenture Interest
Shares of the road developer rose as much as 9.31 percent to Rs 24.65 apiece.
Shareholders approved plans of troubled Infrastructure Leasing & Financial Services Ltd. to raise as much as Rs 15,000 crore ($2.1 billion) through a non-convertible debt issue, hike the firm’s borrowing limit by 40 percent to Rs 35,000 crore and increase its share capital to enable a rights offering, the company said in a filing.
Besides, the road developer met its interest obligation on non-convertible debentures, it said in a separate exchange notification.
The stock fell 71.2 percent so far this year compared to a 7.2 percent advance in the Sensex, according to Bloomberg data.
Also read: Indian Shadow Bank Wins a Lifeline
BPCL Falls After Board’s Nod For Expansion Plans
Shares of the oil marketing company declined 1.6 percent intraday to Rs 368.30 apiece.
The company’s board approved an investment of Rs 11,130 crore for setting up a petrochemical unit at its Kochi refinery, according to an exchange notification.
The scrip trades at 8.1 percent trailing its 12-month earnings per share and 8.3 times its estimates for the coming year, Bloomberg data showed.
Vakrangee Slumps After Ministry Orders Probe Into Books
Shares of the financial services company fell nearly 4.9 percent to Rs 26.95 apiece.
The Ministry of Corporate Affairs ordered probe into accounts and operations of Vakrangee Ltd., a financial services provider that lost nearly all its value this year amid concerns about investments and resignation of its auditor. The ministry has sought an inspection of books of accounts for three financial years under powers granted by the Companies Act, 2013, the company said in its exchange filing.
The probe, it said, will include the resignation of auditors, tax reports for the last five years, its number of branches and deposits.
The stock declined 94 percent so far this year, according to Bloomberg data.
Infibeam Rebounds After Friday’s Sell-Off
Shares of the e-commerce company jumped 21.30 percent intraday to Rs 70.90 apiece.
The company said it had given interest free unsecured loan to its wholly-owned subsidiary NSI Infinium Global, according to an exchange notification. These are short-term loans and are repayable on demand.
Infibeam Avenues Ltd. lost 71 percent of its market value on a single day on Friday after a WhatsApp message circulating among traders raised concerns about the online iPhone and iPad retailer’s accounting practices.
The stock trades at 41.1 times trailing its 12-month earnings per share and 22 times its estimates for the current month, Bloomberg data showed.