Stocks and companies to track today: October 5, 2020

Vedanta delisting opens today

Shareholders and analysts will focus on the response to Vedanta Ltd’s delisting offer that will open for subscription on Monday (October 5) and end on October 9.

The company plans to acquire up to 169.74 crore shares (excluding 3.91 crore ADS representing about 15.65 crore shares as on September 25, 2020) at a floor price Rs 87.25 a share.

The holders of the ADS (American Depositary Share) will be able to participate in the delisting offer in the event they choose to convert the ADS into equity shares. In that case, the size of the delisting offer will be increased accordingly to the extent of the conversion of the ADS into equity shares, the offer letter further said.

Currently, almost 50 per cent is held by the public. While 467 foreign portfolio investors hold 15 per cent stake, LIC through LIC of India Health Protection Plus Non-Unit Fund holds 6.37 per cent in Vedanta. About 6.8 lakh small retail investors hold 6.95 per cent.

After the successful delisting of Hexaware Technologies, which had accepted the higher discovered price of Rs 475 for delisitng as against Rs 264.97 offered by its promoters, expectation is running high on Vedanta, too, for a similar move.

Will Vedanta accept the price in case the reverse book-building exercise throws up a much higher discovered price?

Angel Broking listing to keep other broking stocks in focus

Monday will see the listing of Angel Broking shares on the NSE and BSE. The Rs 600-crore IPO, which ended on September 24, was subscribed nearly four times. Angel Broking, the first broking company to come out with an IPO in the last 10 years, has fixed the issue price at Rs 306 a share, at the top end of the price band of Rs 305-306.

The Angel Broking issue consists of a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by the promoters and investors.

Ahead of the IPO, the company had raised Rs 180 crore from anchor investors by allotting shares at Rs 306 a share. Among them are Goldman Sachs India, Macquarie Fund Solutions, Invesco Trustee, Max Life Insurance Company, ICICI Prudential, HDFC Mutual Fund, and Sundaram MF.

As some analysts and marketmen feel that the company has come out with a stiff valuation vis-a-vis other listed companies, the listing will be in focus. If the stock lists with strong gains, then the positivity will percolate to other brokerages such as Motilal Oswal, ICICI Securities, Geojit, IIFL, Edelweiss Finance and 5Paisa Capital.

Will TeleDNA acquisition benefit Route Mobile?

Route Mobile has acquired key technologies and its related contracts on a slump sale basis for Rs 12 crore from TeleDNA Communications Pvt Ltd, which specialises in the development of telecom related solutions such as MMSC (Multimedia Messaging Service Center), SMSC (Short Message Service Center platforms, SMS HUB and SMS firewa11 headquartered in Bengaluru.

Route Mobile, among the leading cloud communication platform service providers to enterprises, over-the-top players and mobile network operators, recently listed its shares after a successful IPO that saw a huge response from all category of investors.

Rajdipkumar Gupta, Managing Director and Group Chief Executive Officer, Route Mobile, said, "Post the success of our IPO, we plan to be in line with our vision of inorganic growth... It will enable us to offer a deeper and comprehensive portfolio of products to telecom operators, which will enable us to fortify our relationship with MNOs (Mobile Network Operators) and drive a strong momentum."

The 15-day-old Route Mobile stock has already doubled from the IPO price of Rs 350 and is currently ruling at around Rs 785. The stock has touched a high of Rs 988 on the NSE, since its listing on September 21.

Order win may boost PNC Infratech

PNC Infratech, in a joint venture with SPML Infra, has bagged a letter of award (LoA) for Rs 289.93 crore. The project is for the construction of the Haraulipur group of villages water supply scheme (surface water) and electric/solar based piped ground water supply scheme in Hamirpur, Uttar Pradesh, including commissioning, operation and maintenance for 10 years. The order is from the State Water & Sanitization Mission, Namami Gange and Rural Water Supply Department, Uttar Pradesh.

PNC has a 95 per cent share in the joint venture project, which has to be completed in 24 months.

The stock may see buying interest on order wins, even as shareholders will closely monitor the project execution.

Open offer to Aarti Surfactants shareholders

Jaya Chandrakant Gogri and Nikhil Holdings Private Ltd have announced an open offer to the public shareholders of Aarti Surfactants to acquire up to 19.72 lakh shares at Rs 284 a share, aggregating up to Rs 56 crore.

The acquirers had entered into a share purchase agreement with the promoters to acquire 6. 91 lakh shares, representing 9.12 per cent of the fully paid-up equity share capital and voting capital of the company at Rs 284 a share. The acquirers have also placed a purchase order with their respective brokers to acquire 7.25 lakh shares, representing 9.56 per cent of the company at a price not exceeding Rs 284 a share from the promoters through a block deal.

Besides, they have also placed a purchase order with their respective brokers to acquire five lakh shares, representing 6.59 per cent of the company at a price not exceeding Rs 284 a share from the open market.

Accelya Solutions: Open offer opens today

Aurora UK Bidco, along with Vista Equity Partners Perennial LP and Vista Equity Partners Perennial A LP, has made an open offer to acquire up to 37.83 lakh shares of Accelya Solutions India (ASI) from all public shareholders of the company, at Rs 1,042.99 a share. JM Financial is the manager for the offer.

The open offer represents 25.34 per cent of the voting share of ASI.

Currently, about 18,000 small investors hold a 11.38 per cent stake in the company. SBI Magnum and VLS Finance hold 2.07 per cent and 1.75 per cent respectively.

The acquirers, in fact, had made an open offer in November 2019 at Rs 944.19 a share after a global deal.

The acquirer had bought shares from dnata, Warburg Pincus PE XI LP, Warburg Pincus PE XI-B LP, Estera Trust (Jersey) and other shareholders of Accelya TopCo on November 15, 2019, to buy them out. Accelya TopCo indirectly controls Accelya Solutions.

However, the offer did not sail through.

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