Pre Market Analysis 30-08-2021

Bharti Airtel: The company said its board of directors have approved to raise funds up to Rs 21,000 crore by issuing equity shares of face value of Rs 5 each of the company. The telecom operator said the right issue price will be set at Rs 535 per fully paid-up equity share, including a premium of Rs 530 per equity share. Further, the board also constituted a ‘special committee of directors’ to decide the other terms and conditions of the issue including issue period and the record date.

Tata Steel: The company’s CEO and Managing Director T V Narendran said that the steel maker will invest Rs 8,000 crore in capital expenditure on its India operations in the current fiscal year. The amount will be spent towards completion of the expansion of the Kalinganagar plant, and expansion of mining operations and recycling business. It is also increasing the capacity of its plant in Kalinganagar, Odisha, by 5 million tonne per annum (MTPA) to 8 MTPA. 

Future Retail: The company has approached the Supreme Court against an order by the Delhi High Court to maintain status quo in relation to the company’s Rs 24,713-crore deal with Reliance Retail and directing it to enforce the Singapore-based Emergency Arbitrator’s order. Future has argued that if the deal with Reliance doesn’t go through, it would cause “unimaginable” damage to the group, including possible job losses for 35,575 employees, and put at risk about Rs 28,000 crore in bank loans and debentures.

Phillips Carbon Black: The company has planned to invest about Rs 1,300-1,400 crore in the next two years on capacity expansion, its managing director Kaushik Roy said. As part of the expansion, Rs 800 crore will be for a greenfield plant near Chennai and a brownfield expansion in Mundra for specialty carbon that would entail an investment of Rs 300-350 crore. The company will invest Rs 100 crore in research and development facilities in Belgium and India, he said.

IDFC First Bank: The lender has set a target of increasing its retail loan book by 25% on a long-term basis and expects the mortgage lending to account for 40% of its loan book in the future. V Vaidyanathan, MD and CEO, said the bank has strong incremental profitability of retail lending and corporate lending business. In retail, the incremental borrowing cost is less than 5%, the lending rate is over 14%, thus the incremental spreads on retail is over 9%. 

Motherson Sumi Systems: The auto components maker is looking at acquisition due to challenging business environment because of the coronavirus pandemic. Vivek Chaand Sehgal, chairman, said the acquisition must create value for our customers and must allow us to achieve our revenue and return on capital employed targets simultaneously.