Stocks To Watch: Dr. Reddy’s, EIH, TVS Motor, Vedanta

Indian equity markets ended the weekly options expiry session on a weak note, ending near the lowest point of the day, led lower by banks and metal stocks. The S&P BSE Sensex ended 0.82% lower at 38,979 while the NSE Nifty 50 index managed to hold on to the 11,500 mark, ending 0.76% lower at 11,516.

Here are the stocks to watch in trade today:

• Dr. Reddy’s Laboratories has announced settlement of their litigation with Celgene relating to Revlimid capsules.Celgene has agreed to provide the company with license to sell volume-limited amounts of Revlimid capsules in US beginning after March 2022 and the company is also licensed to sell Revlimid capsules without volume limitation beginning on January 31, 2026.
• TVS Motor announced their new distribution partnership with Autotecnica Colombiana SAS a motorcycle assembler in Colombia. This entity will operate 50 dealerships exclusive to TVS Motor and create dedicated space for the brand in over 600 retail outlets.
• EIH sets rights issue price at Rs 65 per share. Rights entitlement ratio at 8 shares for every 85 shares held. Issue record date set as Sept. 23 and the issue price at discount of 24.8% to the closing prices as of Sept.17.On Sept.7, Board approved raising Rs 350 crore via rights issue. 5.38 crore rights equity shares proposed to be issued (face value at Rs 2 per share).
• Vedanta has approached SEBI for necessary approvals to start the reverse book building process for delisting. Company’s founder Anil Agrawal is working with Centricus Asset Management to approach potential investors for the proposed turnaround fun which will buy stakes in government companies being sold of as India’s divestment program. The fund will also target companies restructuring under the bankruptcy laws. (Bloomberg News)
• Essel Propack’s promoter Blackstone Group’s entity Epsilon Bico is planning to sell up to 7.26 crore shares at a floor price of Rs 255 per share aggregating to Rs 1,850.8 crore. Floor price represents a discount of 6.5% to the closing price as on Sept.17. Base offering of 6.07 crore shares can be extended to 7.26 crore shares, or 23% of total outstanding capital. Promoter Epsilon Bidcon stake to fall from 74.99% to 51.99%. (Bloomberg News)
• Sterling and Wilson Solar signed a 106.71 MW solar power project worth Rs 462 crore in Chile. The order has been received from a global independent power producer and the work is expected to begin the fourth quarter of fiscal 2021.
• Kilpest India: Board has approved amalgamation of company’s arm 3B Blackbio Tech with self. The target company develops molecular diagnostic products. The management’s prime focus is to run and grow the diagnostic business. Kilpest will continue to run as an Independent division for some time till the company finds a suitable buyer for its agrochemical division to sell its brands and other intangible assets. Pursuant to the scheme of amalgamation 10,74,570 new fully paid up equity shares of Kilpest will be issued to the remaining shareholders of 3B BlackBio, holding 1,29,000 (12.56%) shares at a swap ratio of 8.33 shares of Kilpest for 1 share in 3B BlackBio.
• IRCTC: Government to levy user fee in some railways stations. (Bloomberg News)
• Hindalco and Hindustan Copper signed a memorandum of understanding for the long-term purchase and sale of copper concentrate produced by Hindustan Copper.
• Elantas Beck has signed a memorandum of understanding with Talegaon Industrial Parks for acquisition of land situated at Pune for setting up a new green field manufacturing facility. The said facility will provide additional capacity to cater to the market demand.
• Majesco: Ashish Kacholia reduced stake from 5.13% to 4.59% on from Feb.2019 to Sept.17.

Pledged Share Details

• JSPL promoter OPJ Trading released pledge of 24.4 lakh shares on Sept.14
• Apollo Hospitals promoter PCR Investments revoked pledge of 10 lakh shares on Sept.11
• Asian Paints promoter Sattiva Holding and Trading created pledge of 18.71 lakh shares on Sept.15
• Future Consumer Care promoter Future Capital Investment invoked pledge of 36.6 lakh shares on Sept.15

(As Reported On Sept.17)

Who’s Meeting Whom

• Endurance Technologies to meet Wellington Management Singapore on Sept.18
• Dr Lal Pathlabs to meet Mirae Asset Management on Sept.18
• Mahindra and Mahindra to meet Fidelity Investments on Sept.18
• Ramco Cements to meet Axis MF and HDFC MF on Sept.18

Bulk Deals

• Happiest Minds Tech: Plutus Wealth Management acquired 10 lakh shares at Rs 350 per share.

Trading Tweaks

• AGM Date: Dalmia Sugar, Fine Organic, Emami, Heidelberg Cement, Gulf Oil Lubricants, Linde India, Dilip Buildcon, Kajaria Ceramics, Indoco Remedies, Edelweiss Financial Services, BPCL, BHEL, Bharat Dyanamics.
• Price Band Revision From 10% To 5%: GTL, McDowell Holdings, Skipper, SMS Lifesciences, NGL Fine Chem.
• Move Into ASM Framework: Archit Organosys.
• Move Into Short Term ASM Framework: Indoco Remedies, Aegis Logistics, Gyscoal Alloys.
• Move Out Of Short Term ASM Framework: Gujarat Apollo Industries, Music Broadcast, NIIT, Allied Digital Services.

Insider Trades

• Mindtree promoter Subroto Bagchi sold 2.65 lakh shares from Sept.14-15
• Trident promoter Trident Capital acquired 11 lakh shares on Sept.16
• Aarti Industries promoters sold 48,000 shares from Sept.14-15
• Somany Home Innovation promoter Somany Impressa acquired 2.41 lakh shares from Sept.15-16

(As Reported On Sept.17)

F&O Cues

• Nifty September futures closed at 11,527; premium of 11 points vs premium of 7 points
• Nifty September futures Open Interest down 1.45%, lost 1.7 lakh shares in Open Interest
• Nifty Bank September futures closed at 22391; premium of 71 points vs premium of 72 points
• Nifty Bank September futures Open Interest up 1.55%, adds 26,100 shares in Open Interest

Options

• Nifty PCR at 1.08

Nifty Monthly Expiry: Sept 24

• Max Open Interest on call side at 12,000 (34.1 lakh shares)
• Max Open Interest on put side at 11,500 (31.9 lakh shares)
• Active options: 10800 put (5.54 lakh); 11,500 call ( 9.74 lakh shares)