Pre Market Analysis 30-09-2021

IndusInd Bank: The private-sector lender has acquired a 4.8% stake in embattled tea plantation firm McLeod Russel India by invoking 50 lakh pledged shares of the company. The lender added that the bank has invoked the pledge held on these shares for recovery of its dues from MRIL.

Indian Overseas Bank: The public-sector bank has been removed from Prompt Corrective Action (PCA) restrictions by the RBI. This decision will give the bank more leeway for lending, especially to corporations and grow the network, subject to prescribed norms like minimum regulatory capital, net NPA and leverage ratio on an ongoing basis.

State Bank of India: The has signed an agreement with three non-banking finance company-microfinance institutions (NBFC-MFIs) for co-lending to Joint Liability Groups (JLGs). The three NBFCs are Vedika Credit Capital Ltd (VCCL), Save Microfinance Pvt Ltd (SMPL) and Paisalo Digital Ltd (PDL). Under the agreement, loans can be availed by individual members of JLGs to undertake agriculture and allied activities including other income generation activities, a release said.

SpiceJet & EaseMyTrip: The low-cost airline has partnered with EaseMyTrip, an online travel portal, for holiday bookings. EaseMyTrip will develop a holiday booking platform for the carrier, which will allow the airline’s customers to book holiday packages. EaseMyTrip will facilitate the designing, contracting, and booking of these packages, through their existing partnership across hotels, transfers and sightseeing to ensure excellent service delivery.

Coal India: The public-sector enterprise will ramp up supplies to utility companies to address their coal shortage that has left most of the country’s power plants close to running out of fuel as electricity demand is rising. It has increased supply to power plants to 1.4 million tonnes on a daily basis and the company expects this will ensure some sort of normalcy in power plants present across the country.

Blue Dart: The company has announced its annual price increase for 2022 for the India market. The average shipment price increase for Blue Dart will be 9.6% compared to 2021. “The annual increase is more inflation related and enables us to sustain service quality and cost increases,” said Balfour Manuel, managing director at Blue Dart.

Zee Entertainment Enterprises: Invesco Fund has moved NCLT demanding the company to call an extraordinary general meeting of shareholders to induct its nominees on the company’s board. NCLT is expected to hear the petition on Thursday. The company informed the exchanges about the steps taken by Invesco moving the NCLT but said that it would not have any financial implications except the legal costs.

HDFC AMC: UK’s Standard Life Investments sold 5% stake in HDFC Mutual Fund. It sold 1.065 crore shares at Rs 2,873.8 per equity share for a total of Rs 3,061 crore, BSE’s data showed.

Persistent Systems: The IT company said its US subsidiary plans to buy Software Corporation International (SCI) and its affiliate, Fusion360 for $53 million. This deal will bolster its expertise in serving banking, financial services, and insurance (BFSI) clients. Its Chief Executive Officer and Executive Director Sandeep Kalra said that the company expects rapid acceleration of digital transformation with its financial services clients, requiring domain expertise in areas like Payments and regulatory compliance.

Emami: The FMCG company has undertaken various distribution initiatives and rural expansion drive to boost growth in the current fiscal, its Chairman RS Agarwal said. To augment the current distribution strength, Emami outlined a clear strategy to drive growth aggressively in the rural market and digitalisation of rural sales force was completed successfully last fiscal, enabling the rural sales team to capture all market orders digitally and manage sub stockist inventories, he added.