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M&M Financial mega rights issue opens
Shares of both Mahindra & Mahindra Financial Services and its promoter Mahindra & Mahindra will remain in focus as the former's Rs 3,088.82-crore issue opens for subscription on Tuesday. The rights issue will close on August 11.
The company will issue 61.776 crore equity shares of the face value of Rs 2 each for cash at a price of Rs 50 a share on a rights basis to eligible shareholders in the ratio of one equity share for every share held on the record date, July 23.
The funds raised through the issue will be used to repay/ prepay some of the outstanding borrowings of the company, augment long-term capital and resources for meeting funding requirements for the company’s business activities and for general corporate purposes.
Mahindra & Mahindra had earlier informed the exchanges that the loans and investment committee of the company had approved a proposal to subscribe to the equity shares of MMFSL to the full extent of the company’s rights entitlement. Besides, the board had also approved a proposal to subscribe to additional shares as well as to any unsubscribed portion of the rights issue, up to the total issue size.
Given the current market price (around Rs 130), there is likely to be heavy demand for the rights issue.
Results in focus: 5 banks, UltraTech, 8K Miles
Over 100 companies will declare their quarterly results on Tuesday. Among them are 3i Infotech, 8K Miles, Bombay Rayon Fashions, Castrol India, Greenlam, Hexaware Technologies, IndusInd Bank, IDFC First Bank, IDBI Bank, Muthoot Capital, Quess Corp, RBL Bank, Religare Enterprises, Tata Coffee, UltraTech Cement and YES Bank.
The focus will be on the five banks - IndusInd Bank, IDFC First Bank, IDBI Bank, RBL Bank and YES Bank. Among them, the most tracked will likely be YES Bank, which recently completed a successful further public offer to the tune of Rs 15,000 crore.
Among others, UltraTech Cement result will attract the attention of market participants.
Order booster for NBCC (India)
PSU major NBCC (India) has received work orders worth Rs 204.49 crore on PMC (project consultant management) basis. It bagged an order worth Rs 104.19 crore for the construction of the police headquarter in Seychelles ($13.9 million, or about Rs. 104.19 crore) and another one for the construction of the Attorney General's (AG) Office Projects in Seychelles ($13.38 million, or about Rs100.30 crore).
Shareholders will closely monitor the project execution by the firm, which posted a profit of Rs 79.87 crore for FY20 on revenues of Rs 5,210.34 crore.
VA Tech Wabag: Fund raising, results eyed
The board of directors of VA Tech Wabag is meeting on Tuesday to consider the Audited Financial Statements (both Standalone and Consolidated) of the company for the quarter and year ended March 31, as well as fund-raising plans. Analysts and shareholders will closely track the financial performance, given the Covid-19 pandemic; the fund-raising plans will also attract attention. Market players will be keen to know the issue size of the issue, and whether the fund-raising would be through the debt channel or through an equity issue.
If it is an equity issue, the mode of fund raising - QIP, or rights issue or through further public issue - and the price of the issue will hold interest.
The company had reported Rs 19.53-crore profit for the quarter ended December 2019 on revenues of Rs 488.10 crore.