Companies and stocks to track today: Oct 12, 2020

K.S. Badri Narayanan Chennai | Updated on October 11, 2020 Published on October 12, 2020

Scrips likely to see action: Mazagon Dock Shipbuilders, UTI Asset Management Company, Wipro, Shilpa Medicare, RITES Ltd, Morepen Labs, Ador Multi Products

Mazagon Dock, UTI Asset listing today

Shares of Mazagon Dock Shipbuilders and UTI Asset Management Company will be listed on the stock exchanges on Monday after their recent IPOs.

The Rs 444-crore ínitial public offering (IPO) of the public sector defence shipyard was subscribed over 157 times - the highest so far for any PSU public issue - with all categories of investors pouring money into the issue. The portion reserved for institutional investors was subscribed 90 times, and that reserved for non-institutional investors and retail investors by 679 times and 36 times, respectively.

The IPO was open from September 29 to October 1 in the price band of Rs 135 to Rs 145 a share. Shares of Garden Reach Shipbuilders & Engineers Ltd and Cochin Shipyards are likely to remain in focus.

The public issue of UTI Asset Management Company received bids for 6.31 crore shares as against the 2.73 crore shares on offer. The qualified institutional buyers’ (QIBs) category was subscribed 3.34 times, the retail individual investors (RIIs) category 2.32 times and the non-institutional investors category was subscribed 0.93 times.

The price band for the IPO was set at Rs 552-554 per share. The IPO comprised an offer for sale of 3.89 crore equity shares (including an anchor portion of 1.16 crore equity shares).

Three sponsors, SBI, LIC and BoB, offloaded 8.25 per cent stake each in the company, while another sponsor, PNB, and major shareholder, T Rowe Price Global, sold 3 per cent stake. Proceeds from the offer for sale will not be received by the company.

The listing will keep the shares of other asset management companies shares such as Nippon Life India Asset Management and HDFC Asset Management in focus.

Focus on Wipro result, buyback of shares

The board of directors of Wipro will meet on Monday and Tuesday to consider: a) the audited standalone and consolidated financial results of the company under lndAS for the quarter and half-year ended September 30 , 2020; b) the audited consolidated financial results of the company under IFRS for the quarter and half-year ended September 30 , 2020; and c) buyback of shares.

While the focus will be on the buyback, analysts will also track the performance, guidance and order wins from the Bengaluru-based company. The stock is likely to see heightened activity during these two days.

Besides, Wipro companies such as Shalby, IndBank Merchant Banking, GNA Axles, Balaxi Ventures and Ganges Securities will declare their quarterly results.

USFDA warning may affect Shilpa Medicare

Shilpa Medicare Ltd has received a warning letter from the USFDA for its Jadcherla facility in Telangana.

The company said it would engage with the agency and is fully committed to resolving this issue at the earliest. The company is also committed to maintaining the highest standards of compliance and quality manufacturing across all its facilities. Shilpa Medicare believes that the warning letter will have minimum impact on supplies and revenues from the facility.

The company currently has three manufacturing facilities approved by the USFDA - one formulation facility and two API facilities. "None of these facilities except Jadcherla has any outstanding issues with the USFDA at this point of time," it further said.

The stock may come under pressure even as shareholders will closely monitor further developments on this front.

Rs 101-cr order likely to lift RITES

PSU major RITES Ltd has secured orders worth Rs 101 crore. The company has bagged project management consultancy (PMC) for the complete planning, design, execution/ construction of buildings and other services for various buildings at IIT Delhi. RITES fees will be around Rs. 54 crore, it said.

It has also won orders worth approximately Rs 46 crore for four PMC works and two feasibility study reports/ detailed project reports from South Eastern Coalfields Ltd, based on the MoU entered into between CIL and RITES recently.

Besides, RITES has also bagged a Rs 3.24-crore order for the study of multi-modal integration for the Surat Metro. The work will involve planning and design of a passenger dispersal facility at about 35 Metro stations on two corridors. The timeline for the study is 12 months.

Promoters’ fund infusion may boost Morepen Lab

The board of Morepen Laboratories on Saturday (October 10) approved a preferential allotment of up to 16.85 crore fully convertible warrants to the entities belonging to the promoter group of the company at Rs 25 per warrant, aggregating up to Rs 421.25 crore. Each warrant carries a right to convert one equity share at a price of Rs 25.

The stock may react positively to the fund infusion by promoters.

Warrants would be allotted only upon payment of 25 per cent of the price. The conversion can be exercised at any time within a period of 18 months from the date of allotment, in one or more tranches.

Will Ador Multi Products shine on joint venture with Ravi Shastri?

Ador Multi Products plans to launch a joint venture company along with former cricketer and coach of the Indian cricket team Ravi Shastri. Ador Multi Products will hold 51 per cent in the proposed company, with the balance 49 per cent held by Ravi Shastri directly and/ or indirectly.

The joint venture will launch a new range of personal care, skin care, hygiene and men's grooming products.

The necessary formalities for initial subscription towards the share capital will be duly undertaken, said the the BSE-listed company.

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Published on October 12, 2020
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