Companies and stocks to watch: October 21, 2020

K.S. Badri Narayanan | Updated on October 21, 2020

Prabhat Dairy to turn sour on SEBI order

Securities and Exchange Board of India (SEBI) on Tuesday had directed Prabhat Dairy to pay Rs 1,292 crore to escrow account in Lactalis deal.

Besides, SEBI has also taken to task Prabhat Dairy for not cooperating with the regulator appointed forensic auditor Grant Thornton. SEBI has ordered the company to submit all the demanded documents without any delay. The regulator has also said that it would allow delisting of the company only after the forensic audit is completed.

In a letter to the company SEBI said, "The deliberate attempt on your part by not providing information/documents in relation to forensic audit citing vague and weak grounds was not in the interest of investors and shareholders and thus delaying the process.”

As per SEBI's order, the company provided only three of the 27 documents sought by the forensic auditor. Also, SEBI had directed the company to share its letter with the stock exchanges but that too was not done.

In April 2019, Prabhat Dairy sold its flagship fresh milk business to Lactalis for Rs 1,700 crore. In September 2019, it announced its delisting plans and applied for the same in December 2019. All this at a time when investors were expecting a huge dividend.


Key results: UltraTech Cement, Bajaj Finserv, Bajaj Finance, Colgate

About 30 companies will declare their quarterly/half-year results for the period ended September 2020 on Wednesday. Among them are Arihant Superinfrastructures, Agro Tech Foods, Bajaj Finserv, Bajaj Finance, Chennai Petroleum Corporation, Colgate Palmolive, DB Corp, GMM Pfaudler, Harita Seat Sharing, Indo Thai Securities, Indo Count Industries, JK Tyre,  KPIT Technologies, Newgen Software Tech, Rane (Madras), Rajratan Global Wire, Sagar Cements, Sasken Technologies, Shanthi Gears, SE Power, Syngene International, Tejas Network, UltraTech Cement and VST Industries.


Aavas Fin: May shine on fund raising

SEBI recently ordered a forensic probe after investor complaints piled up against the company promoters accusing them of ‘financial bungling.’ Grant Thornton has been appointed for the audit.

Prabhat Dairy had sold its fresh milk business in April 2019 to French firm Lactalis for ₹1,700 crore. In December 2019, it made a proposal to the stock exchanges to de-list. However, it has also claimed major expenses in its deal, which some shareholders say is an excuse to keep the delisting offer price low.

Aavas Financiers on Tuesday said its board has approved plans to raise up to Rs 100 crore by issuing bonds on private placement basis.

The executive committee of the board at their meeting held on October 20, 2020, approved the issuance of rated, secured, redeemable, listed, non-convertible debentures having a face value of Rs 10 lakh, aggregating up to Rs 100 crore, Aavas said in a regulatory filing.

Promoted by Kedaara Capital and Partners Group, Aavas is primarily engaged in the business of providing housing loan to customers belonging to low and middle-income segment in semi-urban and rural areas.


Shiva Cement may build on expansion plans

The board of directors of Shiva Cement on Tuesday approved the plan for expansion of setting up of 4000 TPD clinker unit along with a one TPA grinding unit. The company will fund the project cost of Rs 1,530 crore with a mix of long-term debt and equity.

The ground-breaking ceremony is scheduled to be held on October 22, it said in a notice to the stock exchanges.

However, as the company continue to post a loss in September quarter too, the stock may see pulls and pressures.

Published on October 21, 2020

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