Stocks in Focus on September 30: IRCTC, DHFL to RNAM; here are the 5 Newsmakers of the Day
IRCTC, Lakshmi Vilas bank/Indiabulls Housing Finance, DHFL, Cipla and Reliance Nippon Life AMC/Reliance Capital are the stocks that are expected to remain in focus on September 30.
Tracking weakness in other Asian indices, the Indian equity market, Sensex and Nifty, on Friday, September 27, 2019, ended with modest losses of around half a per cent. However, certain stocks came in news after the market was closed for trading and can have an impact on the indices when it reopens on Monday, September 30, 2019. Here is a list of five such stocks:
IRCTC: The initial public offer (IPO) of state-owned Indian Railway Catering and Tourism Corporation (IRCTC) will open for subscription on Monday, September 30, in a price band of Rs315-320. The issue will close on October 3.
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Lakshmi Vilas bank/Indiabulls Housing Finance: The Reserve Bank of India (RBI) had initiated a so-called “prompt corrective action” against the Bank. The bank said, "the action was initiated due to the high level of bad loans on Lakshmi Vilas' books, the lack of sufficient capital to manage risks and a negative return on assets for two consecutive years". The restrictions come at a time when the capital-starved bank is awaiting the regulator’s approval for a merger with Indiabulls Housing Finance.
DHFL: Debt-ridden mortgage lender Dewan Housing Finance Corporation (DHFL) on Saturday floated a resolution plan proposing to convert debt into equity. A price of Rs54 per share was assumed for the conversion of debt into equity by lenders to acquire 51% in the company. Besides, the board of directors of DHFL on Saturday approved the appointment of Vaijinath M. Gavarshetty as the Chief Executive Officer and key managerial personnel of the company with effect from October 1, 2019.
Cipla: The pharmaceutical major announced that the United States Food and Drug Administration (USFDA) conducted a cGMP inspection at its Goa manufacturing facility from September 16-27, 2019. The inspection ended with 12 observations, none of which are related to data integrity.
Reliance Nippon Life AMC/Reliance Capital: Japan's Nippon Life Insurance has said that it has completed the acquisition of 75 per cent stake in Reliance Nippon Life Asset Management (RNAM) from the Anil Ambani-controlled financial services company Reliance Capital. Reliance Capital has completed the sale of its 21.54% stake in RNAM to Nippon Life for Rs3,030 crore (approximately $430 million).