TCS results, buyback in focus

Wednesday will be a big day, as Tata Consultancy Services is set to open the result season. Besides, the result, the board will also declare the details of its buyback plan.

Analysts are expecting a strong set of numbers from TCS. They expect the company to report a 10-15 per cent profit growth sequentially for the July-September quarter and a 2-3 per cent growth in revenues in constant currency (CC) terms.

The focus will be on the buyback plan. If approved, this would be the third buyback from the IT major. Earlier, in 2018 and 2017, the company had repurchased shares worth ₹16,000 crore each with 100 per cent acceptance ratio.

The company had fixed the buyback price at ₹2,100 in 2018 and at ₹2,850 a share in 2017. Both the offers were through tender route on a proportionate basis.

This time analysts expect the buyback could be much higher around ₹20,000 crore

Besides, shareholders and the market will also closely monitor the management commentary on the growth outlook, deal pipeline, and IT spends.

ADIA investments in Reliance Retail

The stock of Reliance Industries will remain in focus at the bourses, as the company announced an investment of ₹5,512.50 crore in its retail arm Reliance Retail Ventures. This investment values RRVL at a pre-money equity value of ₹4.285 lakh crore.

ADIA's investment will translate into a 1.20 per cent equity stake in RRVL on a fully diluted basis. With this investment, RRVL has raised ₹37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.

Analysts are watching from where the next round of investments will come from.

Fund infusion may boost Indiabulls Ventures

The Board of Dhani Services Ltd (formerly Indiabulls Ventures Limited), on Tuesday, allotted 84 lakh shares at ₹175 a share to a foreign investor NWI Emerging Market Fixed Income Master Fund, Ltd. (NWIEM). Through this, the company has raised ₹147 crore.

NWIEM is one of the group entities of NWI Management, an investment fund based out of New York.

Consequent to the allotment, the paid-up equity share capital of the company stands increased to ₹114.54 crore.

The stock may react positively to the development.

Currently, promoters hold 29.06 per cent stake in the company. Among the public, FPIs hold 25.43 per cent stake who include Jasmine Capital, Steadview Capital, Morgan Stanley and Kora Master Fund. Retail investors have 6.77 per cent stake in the company.

IEX invests more in IGX arm

The Board of Directors of Indian Energy Exchange has considered and approved a further investment of ₹6.25 crore in Indian Gas Exchange Ltd (IGX), a wholly-owned subsidiary of the company, by way of subscription to equity shares through the rights issue.

IGX is providing an automated trading platform for transacting, clearing, and settling trades in various types of gas-based contracts.

The stock may see buying interest even as Investors will closely track further developments on this front.