Stocks in Focus on August 7: Tata Steel, Jet Airways to DHFL; here are the 5 Newsmakers of the Day
Tata Steel, Avenue Supermarts, Vodafone Idea, Jet Airways and Dewan Housing Finance Corp Ltd (DHFL) are the stocks that are expected to reamin in focus today.
Domestic stock markets on Tuesday, August 6, 2019, rebounded amid gains in banking and auto stocks. However, certain stocks came in news after the markets were closed for the trading purposes and can have an impact on the indices after it opens for trading purposes on Wednesday, August 7, 2019. Here is a list of five such stocks:
Tata Steel: Steel giant Tata Steel on Tuesday said that its arm TS Global Holdings (TSGH) has terminated the definitive agreement with China’s state-run HBIS Group to sell stake in South-East Asia business. Tata Steel said, “We have been informed by HBIS that they have not been able to procure the requisite approvals from the Hebei government (Northern China province), one of the key conditions precedent for the proposed transaction.” It added, therefore, both parties have decided not to extend the definitive agreements. According to the agreement signed in January, HBIS was to acquire 70 per cent stake of the company for $327 (approx. Rs2290 crore) million in cash.
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Avenue Supermarts: Promoter Radhakishan Damani will sell 0.998 per cent stake (6.23 million shares) of the company. The stake sale by the promoter is to comply with the minimum public shareholding norms. The stake will be trimmed between August 8 to September 14, 2019, or the actual date of completion of the sale of all equity shares. After this, the promoter stake to come down from 81.2 per cent to 80.2 per cent.
Vodafone Idea: CRISIL downgraded NCDs worth Rs 3,500 crore to ‘CRISIL A’ from ‘CRISIL A+’. The outlook remains negative.
Jet Airways: The committee of creditors (CoC) of the debt-ridden Jet Airways on August 6, 2019, approved all resolutions including a request for a resolution plan and approval of evaluation matrix, which is a framework for a resolution applicant. All resolutions were passed with the required majority.
Dewan Housing Finance Corp Ltd (DHFL): The debt-laden housing finance company DHFL has defaulted on payment of three non-convertible debentures, which were due on August 6, 2019. The company was supposed to pay Rs 43.3 crore.