The key benchmark indices seem poised for yet another positive start backed by encouraging global cues, as fears of Omicron led economic recovery receded. This morning as of 07:55 AM, the SGX Nifty futures were quoted at 17,212 as against NSE Nifty 50 close of 17,073 on Thursday. Meanwhile, here the top stocks to focus in trade today.
Data Patterns: Shares of the vertically integrated defence and aerospace electronics solutions provided are set to make their debut on the bourses on Friday. The IPO had received a huge response, with subscription up to 119.62 times. The GMP indicates a likely 45-50 per cent listing gain for the stock versus its issue price of Rs 585 per share.
L&T Housing Finance (L&TFH): The company has sold L&T Investment Management (LTIM) to HSBC Asset Management (India) for $425 million. LTIM is the investment manager of the mutual fund business of L&T.
L&T Housing Finance on Thursday announced selling L&T Investment Management (LTIM) to HSBC Asset Management (India) at $425 million. LTIM is the investment manager of the mutual fund business of L&T.
The divestment of the mutual fund business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet, it stated in a press release.
The data from the Association of Mutual Funds in India (Amfi) shows L&T Mutual Fund (MF) has average assets under management (AAUM) worth Rs 78,273.80 crore, while HSBC MF has AAUM of Rs 11,314.32 crore as in the July-September quarter.
If the conversion rate of Rs 75 is taken, the deal will be worth approximately Rs 3,188 crore.
Dinanath Dubhashi, managing director and chief executive officer, L&T Finance Holdings, said: “When seen alongside the recent capital raise, it provides us with enough ammunition to increase the pace of retailisation in our lending portfolio, which is one of our long-term goals.”
L&T Investment Management (LTIM) is the 12th largest asset management company (AMC) in India and offers a basket of equity, fixed-income, and hybrid schemes to retail and institutional investors.
This will be a third merger and acquisition in the Indian asset management space in 2021. Earlier in this year, Sundaram AMC had bought the assets of Principal Asset Management.
According to the industry participants, the deal was at Rs 338 crore.
In May this year, India’s leading investment platform, Groww, had announced it would acquire Indiabulls Mutual Fund at Rs 175 crores (including cash and cash equivalent of Rs 100 crore).
HSBC intends to merge the operations of LTIM with those of its existing asset management business in India. JP Morgan and Citi were the financial advisors to L&T Finance Housing. Cyril Amarchand Mangaldas acted as the legal advisors and PwC acted as due diligence and tax advisors.
Tega Industries: The company’s board has given its in-principle approval for setting-up an additional, larger plan in Chile for an estimated cost of Rs 175 crore to cater to the growing Latin American market demand. The project needs to be implemented in the next 24 months.
Ajanta Pharma: The company has scheduled its board meeting on December 28 to consider a proposal for share buy-back.
Allcargo Logistics: The company’s board has approved demerger of CFS/ ICD business into Allcargo Terminal Limited and demerger of equipment rental, logistics parks and other real estate assets into TransIndia Realty & Logistics Parks.
Surya Roshni: The company has received an order worth Rs 124.35 crore from IHB Limited – a joint venture of Indian Oil, Hindustan Petroleum and Bharat Petroleum for supply of API 3LPE coated pipes for LPG cylinders.
Glenmark Pharma: The company informed BSE, that Crisil Ratings had upgraded I ts long-term credit rating to CRISIL AA-/ Positive from CRISIL AA- / Stable. At the same time, Crisil has reaffirmed the company’s short-term credit rating to CRISIL A1+.
GMR Infrastructure: The company has received approval from the National Company Law Tribunal (NCLT) for the restructuring plan involving the demerger of the non-airport business. The company on August 27, 2020, had unveiled its plan to simplify the corporate holding structure and to attract sector-specific global investors.