Companies and stocks to watch: December 1, 2020

Sales figures to keep automobiles in busy junction

Monthly volume sales data for November will be released on Tuesday by auto majors such as Maruti Suzuki, Tata Motors, Ashok Leyland, Eicher Motors, Hero MotoCorp, Mahindra & Mahindra, Bajaj Auto, TVS Motor, and Escorts.

While analysts expect the two-wheeler companies to report only a moderate growth, the performance of passenger vehicle segment may be better due to festive demand; tractor sales are likely to be remain healthy, thanks to strong kharif sowing but commercial vehicle sales are likely to show moderate growth only.

Shares will move according to the figures and outlook given by the company.

Focus on DRL, as it plans to buy Glenmark's brands

Dr Reddy's Laboratories Ltd, along with its subsidiaries, has entered into a definitive agreement with Glenmark Pharmaceuticals to acquire brands Momat Rino (for Russia, Kazakhstan and Uzbekistan), Momat Rino Advance (for Russia), Momat A (for Kazakhstan and Uzbekistan), Glenspray and Glenspray Active (for Ukraine), along-with rights to the trademarks, dossiers and patents for the territories mentioned from the latter. The deal is subject to completion of certain precedent actions and closing activities.

The acquired brands represent two types of products -- mometasone mono product and combination of mometasone with azelastine, and are indicated for the treatment of Seasonal and Perennial Allergic Rhinitis.

However, both the companies have not disclosed the financial details.

Shareholders of both Dr Reddy's Lab and Glenmark Pharma will closely monitor further developments.

India Grid, Reliance Infra deal eyed

Sterlite Investment Managers Ltd (representing India Grid Trust as its Investment Manager) has signed share purchase agreement for acquisition of 74 per cent stake in Parbati Koldam Transmission Company Limited from Reliance Infrastructure. The completion of acquisition would depend upon receipt of relevant approvals and completion of contractual obligations, India Grid informed the stock exchanges.

Though the exact deal size was not revealed, the company said the consideration to be paid for the acquisition is implied Enterprise Value (for 100 per cent equity shares) of about Rs 900 crore inclusive of cash & cash reserves and normalised tariff receivables.

The acquisition of power transmission asset is in line with the IndiGrid investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to unit holders by owning assets with long term contracts, it said in the notice.

HCC may build on order win

Shares of Hindustan Construction Company may witness some buying interest, as its joint venture bagged ₹236 crore orders in two separate contracts from the Northeast Frontier Railway. The orders are for the construction of Single Line BG Tunnels Lot 14A and Lot 15A on a 51.38 km long BairabiSairang New BG Rail line in Manipur. HCC share in the joint venture is 55 per cent (i.e. ₹130 crore). Vensar Constructions Company is the other joint venture partner

Indiabulls HF's fund raising through stake sale

The stock of Indiabulls Housing Finance will remain in focus on fund raising through stake sale. Indiabulls Housing Finance has further sold a portion of its stake in OakNorth Holdings (the wholly owning parent company of OakNorth Bank plc) for ₹93 crore. The sale proceeds will be accretive to the regulatory net worth and the CRAR of the company, it said in a notification to the stock exchanges.

With the latest stake sale, the company has raised a total of ₹2,670 crore as fresh equity in September, October and November (₹683 crores through QIP and ₹1,987 crore through sale of stake in OakNorth) adding to the regulatory equity capital of the company, it further said.

Will ANDA approval lift Unichem Lab?

Unichem Laboratories has received ANDA approval for its Atenolol and Chlorthalidone tablets, USP 50 mg/25 mg and 100 mg/25 mg from the United States Food and Drug Administration to market a generic version of TENORETIC (atenolol and chlorthalidone) tablets of Alvogen Malta Operations Ltd.

The tablets are indicated for the treatment of hypertension, to lower blood pressure. The product will be commercialized from Unichem's Ghaziabad plant, it said in a notice to the stock exchanges.

Shareholders will closely monitor further developments.