Stocks to Watch: SBI, Reliance, Delta Corp, Bajaj Finance, JSW Steel

State Bank of India: The country’s largest lender raised a whopping ₹10,000 crore through an infrastructure bond issue on Friday, with bids exceeding the initial target by over five times. The bonds, which will carry a coupon rate of 7.49%, will be used to fund infrastructure projects and affordable housing. This is the fourth infra bond issue by SBI, underscoring the growing demand for such instruments from investors.

Reliance Industries: Global investment firm KKR has invested ₹2,069.50 crore in Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries, increasing its stake to 1.42% from 1.17%. The investment values RRVL at a pre-money equity value of ₹8.36 trillion. KKR’s investment will be used to fund RRVL’s expansion plans, including the launch of new stores, the rollout of new products and services, and the development of its e-commerce platform.

Delta Corp: Casino operator Delta Corp received a tax notice from the government on Friday, demanding ₹111.4 billion in taxes, interest, and penalties for the period July 2017 to March 2022. The company is already facing heat from the recent imposition of a 28% GST on the money collected by gaming companies from customers. The company has said that it will challenge the tax notice.

Life Insurance Corporation: The state-owned insurer said it would appeal a tax notice of ₹290 crore issued by the Goods and Services Tax authority of Patna, Bihar. The notice, issued on September 21, demands GST, interest, and penalty for the period July 2017 to March 2022. The tax authority has alleged that LIC did not reverse the input tax credit (ITC) availed on the premium received by the corporation from policyholders.

Ambuja Cements: The Adani Group is negotiating with banks to refinance $3.5 billion in debt taken to finance its acquisition of Ambuja Cements, Bloomberg reported quoting sources. The deal is expected to be one of Asia’s largest syndicated loan deals of the year. The refinancing is part of Adani’s efforts to reduce its debt burden and improve its financial health. 

JSW Steel: Caretta Minerals LLC, a US subsidiary of JSW Steel, has entered into an agreement to sell its plant and equipment, property, and mineral rights to West Virginia Properties for $24 million. JSW Steel said the sale was due to the fact that operating the mines was not economically viable in the absence of a coal mining lease and plant lease. The deal is expected to close in the coming weeks.

Bajaj Finance: Bajaj Finance Ltd. will convene a board meeting on October 5 to consider raising funds via a qualified institutional placement (QIP). The company plans to raise funds through various methods, including a preferential issue and the QIP. The proposal is subject to regulatory approvals, including approval from the company’s shareholders.

ICICI Lombard General Insurance: The company has named Sanjeev Mantri as its new managing director (MD) and CEO, effective 1 December 2023, or the date of approval from the Insurance Regulatory and Development Authority of India (IRDAI). Mantri will replace Bhargav Dasgupta, who has been appointed as vice president of the Asian Development Bank.

Blue Star: The consumer durables manufacturer has raised ₹1,000 crore through its qualified institutional placement (QIP) issue, which opened on 18 September. The company allotted 1.29 crore shares at an issue price of ₹770 apiece, which is a 1.84% discount to the QIP floor price of ₹784.55 per share. The price is at the lower end of the discount range of up to 5% which Blue Star had mentioned at the time of the QIP opening. 

IRCON: The state-owned company has executed a contract agreement with Sri Lanka Railways for the procurement, installation, testing, commissioning, and certification of a signaling and telecommunication system on the railway line from Maho Junction to Anuradhapura, under the Indian line of credit. The contract is valued at $14.89 million and will be completed within 24 months from the date of signing.

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Updated: 25 Sep 2023, 07:23 AM IST