SGX points to 115-point opening gains for Nifty

After a steep slide in the last two days, the domestic market is expected to open on positive note, if one goes by the indication from SGX Nifty and Asian stocks. The SGX Nifty is ruling at 14,535, as against Friday’s close of 14,419. Asian markets such as Japan, Singapore, Australia and others are ruling in the green with a gain of at least 0.3 per cent.

The S&P BSE Sensex declined 746.22 points to 48,878.54, while the Nifty50 index plunged 218.50 points to 14,371.90 and formed a bearish candle on the daily chart for the second consecutive session. It corrected fourth of a percent for the week and witnessed a Shooting Star kind of formation on the weekly scale.

Stocks to watch

NCL Ind-United Spirits: NCL Industries has executed a share purchase agreement with United Spirits Ltd for complete acquisition of Tern Distilleries Private Limited (TDPL) for a total consideration of ₹30 crore. Upon acquisition of the above shares, Tern Distilleries Private Limited has become a wholly owned subsidiary of NCL Industries. NCL Industries also informed the exchanges that it intends to set up a 2000 TPD cement grinding unit in the land currently owned by TDPL. However, the company has clarified that it currently has no plans of entering into distilleries or related business, and the immediate plans are only for setting up a cement grinding unit.

Hinduja Global Solutions: Hinduja Global Solutions UK, a subsidiary of the company that holds 91.77 per cent interest in HGS Digital LLC (formerly known as Element Solutions LLC, USA) has on acquired the balance 8.23 per cent equity interest. The acquisition is in accordance with the purchase agreement entered on March 29, 2018 and as amended from time to time. The consideration to be paid for acquisition is $1,827,026, on or before June 30, 2021. An additional amount, based on performance of agreed business and financial performance of FY21, no later than October 31, 2021, it said in a notice to the stock exchanges.

Steel Exchange India, which had earlier announced the debt resolution scheme by way OTS (One Time Settlement Scheme) with lenders of the company and had received sanctions from 93 per cent of the lenders, has received sanction from the remaining lenders. The consortium of banks was led by SBI (State Bank of India) taking it to 100 per cent approval of existing lenders.

Adani Green Energy Limited (AGEL) has signed a securities purchase agreement for acquisition of 20 MW operating solar project of Hindustan Powerprojects Pvt Ltd. The project, located in Mahoba, Uttar Pradesh, was commissioned in October 2017 and has a long term Power Purchase Agreement (PPA) with UP state discom. The closing of the transaction is subject to customary approvals and conditions. The acquisition is being done at an enterprise valuation of ₹133 crore. With this acquisition, AGEL will have operating renewable capacity of 3,145 MW and total renewable portfolio of 14,815 MW.

Zydus Cadila has received final approval from the USFDA to market Liothyronine Sodium Tablets USP, 5 meg, 25 meg, and 50 meg. Liothyronine is a man-made form of thyroid hormone which is used to treat an underactive thyroid (hypothyroidism). It replaces or provides more thyroid hormone, which is normally made by the thyroid gland. The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad.

Tata Power Solar Systems Limited (Tata Power Solar) and a wholly owned subsidiary of Tata Power, has received a Letter of Award (LoA) to build 320-MW of ground mounted Solar PV project for NTPC. The order value of the project is approx. Rs 1,200 crores ($162 Million). The Commercial operation date for this project is set for May 2022. With this addition, the order pipeline of Tata Power Solar stands at approximately 4GWp with approximately value of ₹12,000 crore.

Grasim Industries: The board of the company has approved a foray into the paints business. Grasim’s board has approved an investment of up to ₹5,000 Crore over the next 3 years, primarily towards capital expenditure. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said: “The foray into paints is a strategic portfolio choice for Grasim as it looks to identify new growth engines. Grasim’s strong balance sheet will facilitate this entry, which will add size, scale and diversity to its existing portfolio of established standalone businesses.

Atul: The board of directors will meet on January 29 to consider a proposal for buy-back of equity shares of the company.

Results calendar: Aarti Drugs, APL Apollo Tubes, Astec Lifesciences, Balu Forge, Benaras Hotels, Bombay Wire Ropes, Can Fin Homes, CG Vak Software, Chennai Petroleum, Genus Paper, ICICI Securities, Kotak Mahindra Bank, Lakshmi Electrical, Larsen & Toubro, Mahindra Holidays, Navin Fluorine, RPG Life, Sharada Crop, Triveni Engineering and UCO Bank.

IPO watch:

Home First Finance: Today is the last day for the subscription of Home First Finance. The IPO the company received bids for 3.46 crore shares as against 1.56 crore shares on offer on Friday (22 January 2021), subscribing 2.22 times. The issue opened for subscription on Thursday January 21. The price band for the IPO is set at ₹517-518 per share. An investor can bid for minimum of 28 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to ₹265 crore and an offer of sale of equity shares aggregating up to ₹888.71 crore (including anchor portion of 66.81 lakh equity shares).

Stove Kraft: The issue opens for public today. Ahead of the IPO, manufacturer of kitchen appliances, has raised a little over ₹185 crore from anchor investors. A total of 48,22,290 shares have been allotted to 32 anchor investors at ₹385 apiece, which is the upper end of the price band. The initial public offering comprises of a fresh issue aggregating ₹95 crore and offer for sale of up to 82,50,000 equity shares by selling shareholders.