Stocks

Companies and stocks to track today: Sept 28, 2020

K.S. Badri Narayanan Chennai | Updated on September 27, 2020 Published on September 28, 2020

Scrips likely to see action: Lakshmi Vilas Bank, CMI, Tata Metaliks, Tata Steel, Narayana Hrudayalaya, Deepak Fertilisers, Shalby

Lakshmi Vilas Bank: Rejection of CEO, others to trigger selling interest

The stock of Lakshmi Vilas Bank, which is facing trouble on the financial front, may come under heavy selling pressure on Monday as the shareholders of the bank rejected the appointment of seven directors, including the chief executive officer, at the annual general meeting held on September 25.

According to a disclosure made by the bank to the stock exchanges, resolutions on the (re)appointment of S Sundar (MD & CEO); N. Saiprasad, Raghuraj Gujjar and K.R. Pradeep (non-executive, non-independent directors); Gorinka Jaganmohan Rao, B.K. Manjunath and Y.V. Lakshminarayana Murthy (non-executive, independent directors) were not passed.

However, the appointment of three directors - Shakti Sinha, Satish Kumar Kalra and Meeta Makhan - was cleared by the shareholders.

Lakshmi Vilas Bank is currently in talks with Clix Capital for a potential merger. Earlier, its proposal to merge with Indiabulls Housing Finance was rejected by RBI.

Mukand to shine on fresh loans

Mukand executed a term loan agreement with a bank for availing of a promoter-backed unsecured term loan at a competitive rate of interest on Saturday. Initially, the loan amount will be for Rs 650 crore and the company will take an additional loan of Rs 350 crore, subject to shareholder approval for enhancing its borrowing powers.

The tenure of the loan is two years and disbursement is subject to fulfillment of certain conditions. The loan amount would be utilised for refinancing the company's existing high cost borrowings, which should result in significant saving of interest costs, Mukand said in a notice to the stock exchanges. Shareholders will closely monitor further developments.

Pressure on CMI shares as CARE downgrades it to 'default'

Shares of CMI Ltd are likely to witness selling pressure on a CARE Ratings downgrade. The rater has downgraded it from CARE BBB stable to CARE D for long-term bank facilities, and from CARE A3 to CARE D for short-term bank facilities. CARE D denotes default grade.

The revision in the rating assigned to the bank facilities of CMI factors in irregularities in the working capital facilities attributable to the weak liquidity position of the company, CARE said and added that the ratings also take into account the company’s weak operational performance during FY20, which was accentuated due to the pandemic during Q1-FY21 and, resultantly, led to the weakening of debt coverage metrics.

The promoters will work towards a turnaround, while shareholders will monitor further developments.

Tata Metaliks may shine on Tata Steel's strength

Tata Steel has acquired 34.92 lakh shares of Tata Metaliks following the conversion of warrants issued at Rs 642 a warrant. Tata Steel has exercised its right to subscribe to one equity share per warrant of face value of Rs 10 each, aggregating to Rs 224.21 crore. (While 25 per cent was paid on application (March 28, 2019), the balance was paid on September 25, it said in a statement to the stock exchanges.

Tata Metaliks is one of India's leading producers of high-quality pig iron (PI) and ductile iron (DI) pipes. TML operates a plant near Kharagpur, West Bengal. Its offerings include a variety of branded products customised to meet specific user needs.

Tata Metaliks’ turnover for FY 2019-20 is Rs 2,050.63 crore.

Will the St Lucia branch turn healthy for Narayana Hrudayalaya?

Narayana Surgical Hospital Pvt Ltd (NHSHPL), a wholly-owned subsidiary of Narayana Hrudayalaya Ltd, has registered a branch office in St. Lucia in the eastern Caribbean Sea as an external company within the meaning of Section 338 of the Companies Act of St. Lucia.

The branch has been set up with the objective to provide technical and project management and consultancy services for setting-up hospitals, services of operating and managing hospitals owned by the Government of St. Lucia and provision of incidental and allied services.

The stock may react positively to the development, though shareholders and investors will closely track further developments on that front.

Deepak Fertilisers' Rs 178-cr rights issue opens today

The Rs 180-crore rights issue of Deepak Fertilisers & Petrochemicals Corporation opens for subscription on Monday (September 29) and closes on October 12.

The issue price has been fixed at Rs 133 a share and eligible shareholders are entitled to apply for three shares for every 20 held by them as on the record date (September 17). The full amount of the issue price will be payable on application. The company plans to issue 1.33 crore shares through the rights issue.

Shareholders will closely monitor the response to the issue.

Eyes on Shalby's promoters options

The board of Shalby will meet on Monday (September 28) to consider options to reduce the promoter’s holding from the current 79.45 per cent to 75 per cent, which is a mandatory requirement, according to SEBI regulations.

The options include but are not limited to preferential issues, private placements, qualified institutional placements or rights issue, or through any other permissible mode or any combination thereof of any of the above, the company said in a notice to the stock exchanges.

Shareholders will watch the outcome of the board meeting.

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Published on September 28, 2020
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