Stocks To Watch: Apollo Tyres, Infosys, Cipla, SJVN, Coal India Stocks in focus: GIFT Nifty traded in the red at 19,857.5, down by 48 points or 0.24% during Thursday’s early trading session, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, September 20, the NSE Nifty 50 plunged 231.90 points, or 1.15%, to end the trading session at 19,901.40, while the Sensex tumbled as much as 796 points, or 1.18%, to 66,800.84. “The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices. Bank Nifty underperformed today due to rising cost of funds and reduction in deposits leading to moderation in net yield,” said Vinod Nair, Head of Research at Geojit Financial Services. The Indian IT giant has expanded its strategic partnership with the USA-based NVIDIA. The partnership is aimed at driving productivity gains with generative AI applications and solutions. Infosys will train 50,000 employees on NVIDIA AI technology. The Indian government plans to sell a 2.46% stake in the hydroelectric power generation company by offering up to 966,729,622 equity shares for sale on both September 21 and 22. There is also an option to further sell an additional 966,729,621 equity shares. InvaGen Pharmaceuticals Inc. ‘s manufacturing facility in Central Islip, New York, has received five inspectional observations in Form 483 from the US FDA after they conducted an inspection at the manufacturing facility of unit InvaGen from September 11 to 13. The Indian PSU giant announced that the company has been served a three-day strike notice by central trade unions. The Indian government pension fund bought 20 lakh shares at Rs 1,180 per share.
The Japanese pharma major is also filing a plea before the Delhi HC seeking appointment of forensic auditors to analyse transactions involving IHH, Fortis Healthcare and RHT, Singapore, as directed by the HC on October 18.
The development is likely to create legal hurdles and delay the proposed open offer as IHH had recently told FE that it could only go ahead if Sebi agreed with its legal interpretation that the SC’s September 22 order has lifted all such restraints.
IHH managing director and CEO Kelvin Loh told FE on November 9 that the company would like to go ahead with the open offer “as soon as possible” as there has already been a delay of four years. Ravi Rajagopal, chairman of Fortis Healthcare, had added that their legal counsel has advised that the company can go ahead with the open offer as the SC order has disposed of various appeals, including the suo motu contempt. “We have represented to the Sebi and the matter is with them,” Rajagopal had said.
However, legal observers told FE that the matter is not that straightforward and simple as the Delhi HC has to take the final call on the matter of open offer as well as whether a forensic audit has to be done in the share sale which was executed in 2018.
Also Read: IHH to float open offer for Fortis if Sebi concurs with our legal view: MD & CEO
Loh and Rajagopal had said the possibility that the matter may take a different turn when it comes up in Delhi HC cannot be ruled out.
IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for Rs 4,000 crore through the bidding route. It had also earmarked Rs 3,000 crore to make an open offer for an additional 26% to the public shareholders as required under the law.
Daiichi has written to Sebi that the SC in its September 22 order had asked the HC to consider ordering a forensic audit into the dilution of FHL shareholding, repeated violation of undertakings and assurance by former FHL promoters — Malvinder and Shivinder Singh — and the transaction between FHL, IHH and the clandestine transfer of Rs 4,666 crore to RHT Singapore.
Daiichi is “severely prejudiced” with IHH’s clandestine attempt to subvert the status quo order directed by the SC on December 14, 2018, and September 22 with respect to the conduct of forensic audit and the pending proceedings before the HC by purportedly consulting regulatory authorities, including Sebi, on the proposed FHL-IHH transaction. It has reiterated that the FHL-IHH transaction was currently sub-judice before the HC where FHL is also a party, its solicitors, P&A Law Offices, have said in the letter.
“We further state that any such attempt by FHL and/or IHH to proceed with the FHH-IHH transaction would be in direct contravention of the HC and SC orders,” the letter sent by the law firm has stated. Daiichi Sankyo is pursuing the enforcement of Rs 3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to it for $4.6 billion in 2008. The apex court had in 2018 put on hold the sale of Fortis Healthcare to IHH on a contempt plea filed by the Japanese drugmaker against the Singh brothers.