Talk of merger to keep Kotak Bank, IndusInd Bank in focus

A Bloomberg report said that Kotak Mahnidra Bank is in ‘initial’ talks to acquire IndusInd Bank to expand its footprint in the retail segment of the Indian banking sector.

"Uday Kotak, founder and Chief Executive Officer of Kotak Mahindra, is looking at the possibility of an all-stock acquisition," the Bloomberg report said quoting ‘one of the people’.

However, IndusInd Bank denied this as rumour. “The promoter of IndusInd Bank, IndusInd International Holdings Ltd, completely denies the said rumour and considers it malicious, untrue and baseless. IIHL is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always,” the promoters of the bank said. “The promoter reaffirms its unstinted support to IndusInd Bank.”

Despite the denial, the shares will remain in focus.

As Amazon gets stay, RIL-Future Group stocks may come under pressure

Shares of Reliance Industries and Future Group stocks such as Future Retail and Future Enterprises are likely to see some selling pressure, as American e-commerce major Amazon Inc got a favourable ruling in a Singapore artbitration case with regard to the Future-RIL deal.

In August, Future had reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance. The deal is awaiting regulatory approvals.

Kishore Biyani’s Future Group has been told by the Singapore arbitration panel to not proceed with the deal with Mukesh Ambani’s Reliance Retail for now.

Amazon last year bought a 49 per cent stake in one of Future's unlisted firms, Future Coupons Ltd, with the right to buy into the flagship Future Retail after a period of 3-10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.

The Biyani-led group looking to settle the issue amicably, either through mediation or arbitration.

Key results: SBI Life Insurance, Kotak Bank, Angel Broking, LMW

Over two dozen companies’ boards will meet on Monday to consider quarterly and half-yearly results. Among them are Alicon Castalloy, Angel Broking, AYM Syntex, Ester Industris, Finolex Industries, GHCL, Genus Paper & Boards, Hinduja Media Ventures, InfoBeans Technologies, Infomedia Press, Kotak Mahindra Bank, LG Balakrishnan & Bros, Lasa Supergenerics, Lakshmi Machine Works, M&M Financial Servces, Max Ventures and Industreis, Mohit Industries, Poly Medicure, Swaraj Engines, Torrent Pharmaceuticals and Umang Dairies.

Cosmo FIlms: Eye on buyback meet

The board of Cosmo FIlms is meeting on Monday (October 26) to consider a proposal for a buyback of equity shares of the company and other matters necessary/incidental thereto.

Shareholders of the container and packaging company will closely monitor the size, price and the number of shares to be bought back, if approved. Besides, the mode of buyback — whether through open market purchases or on a proportionate basis via tender route. If the latter is approved, shareholders will also watch for the record date.

Also, the intention of the promoters in the buyback — whether to participate or not — will closely be tracked by shareholders.

Promoters currently hold a 44.15 per cent stake in Cosmo Films while retail shareholders 39.66 per cent. Foreign portfolio investors hold a 3.06 per cent stake in the company, while bodies corporate 4.23 per cent stake, according to the September-quarter shareholding pattern available with the stock exchanges.

Vedanta to pay ₹9.50/share

The board of Vedanta on Saturday approved first interim dividend of ₹9.50 a share for FY21, amounting to ₹3,500 crore. The record date for the purpose of payment of dividend has been fixed as October 31. The interim dividend will be paid within stipulated timelines as prescribed under law, Vedanta said in a notice to the stock exchanges.

Marketmen were expecting a high dividend form Vedanta after Hindustan Zinc, in which the company holds an about 65 per cent stake, announced a hefty dividend of ₹21.30 a share last week. It may be recalled that Vedanta’s recent attempt to delist its shares had failed.

MT Educare: Offer for sale by promoter

MT Educare promoter Mahesh Shetty proposes to sell up to 42,680 shares of face value of ₹10 each, representing 0.06 per cent of the total paid-up equity share capital of the company on October 26 (institutional investors) and on October 27 (retail investors).

The floor price of the offer has been fixed as ₹9.60 a share. As currently promoters hold a 75.06 per cent stake, the stake sale is to meet the minimum public shareholding norm as mandated by SEBI.