Bajaj Finance, Tata Steel, Zydus Lifesciences, Bharti Airtel, Crompton Greaves stocks in focus Indian equity markets are likely to extend losses on Tuesday amid weak global cues. Early trends on SGX Nifty indicated a negative start for benchmark indices, with a loss of 100 points or 0.63%. The Nifty futures were trading around 15,678.50 level on the Singaporean Exchange. Asian shares tumbled in early trade after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high. “Near term market outlook remains weak on the back of twin global headwinds of high inflation and increasing interest rates. Several global central banks including US Fed are scheduled to meet this week to decide on their monetary policy and would keep the markets busy,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.Stocks in focus on 14 June, Tuesday Bajaj Finance: Bajaj Finance, the lending arm of Bajaj Finserv, on Monday said it has raised fixed deposit interest rates on various tenors — 24-60 months — by up to 20 basis points (0.20 per cent). This will not include deposits of 44 months tenor, it added. The revised rates on Bajaj Finance FDs of up to 20 basis points are effective from June 14, 2022, and shall be applicable to fresh deposits and renewals of maturing deposits, the lender said in a release. With this, the depositors will earn 7.20 per cent cumulative return on deposits between 36 months to 60 months. Zydus Lifesciences: Zydus Lifesciences on Monday said its Rs 750 crore-share buyback offer will commence on June 23 and close on July 6. The drug firm, earlier known as Cadila Healthcare, has fixed July 15, 2022 as the last date for the settlement of bids on stock exchanges which may even happen early, as per a regulatory filing. The company’s board has approved the proposal to buyback a little over 1.15 crore shares, representing up to 1.13 per cent of the total paid-up equity share capital of the company, for an aggregate amount of up to Rs 750 crore. Bharti Airtel: Bharti Airtel on Monday said its video streaming service, Airtel Xstream, has achieved a 2-million paid subscriber mark. Adarsh Nair, chief executive officer of Airtel Digital, attributed the platform’s growth in a large part “to our ability to meet the needs of the Indian consumer for great regional content. We will be doubling down on our regional strategy with our existing partners and will continue to onboard new partners with stellar regional content catalogs,” he said. Airtel Xstream offers a bouquet of OTT platforms to consumers across mobile and large screen formats. Crompton Greaves: Crompton Greaves Consumer Electricals on Monday said it plans to raise long-term funds up to Rs 925 crore through the issuance of non-convertible debentures on a private placement basis. The board of directors of the company at its meeting held on Monday also approved the buyback of rated, listed commercial paper aggregating to up to Rs 600 crore, Crompton Greaves Consumer Electricals Ltd (CGCEL) said in a regulatory filing. These are part of a proposal to modify the company’s debt profile which have been considered by the board and approved, it added. Metropolis Healthcare: Metropolis Healthcare on Monday said its promoters have no intention to exit the business. In a regulatory filing, the company said its promoters are focused on strengthening the Metropolis brand, although it continuously keeps exploring various strategic options/investment opportunities. “The company, its promoters and management team are committed to operating Metropolis Healthcare Ltd with the highest standards of medical science, stakeholder trust and customer engagement,” the company said.
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.