Paytm makes its IPO plan official, invites staff to sell shares
Minority shareholders red-flag PNB Housing-Carlyle deal
NCLT clears Piramal bid to take over DHFL
Sebi bars Templeton from launching new debt funds
Now lemme give you a quick glance on the state of the markets.
Dalal Street was signalling a mild positive bias this morning as Nifty futures traded some 15 points higher on Singapore Exchange at 7am (IST). Stocks in other Asian markets opened steady as investors awaited clues on the outlook for inflation and central bank stimulus. Wall Street indices ended mixed amid lingering inflation fears, and lack of market-moving economic news.
Elsewhere, crude oil held a decline, losing some momentum after hitting $70 a barrel in New York for the first time in over two years. The dollar held a decline and gold traded at $1,899.41 an ounce in international markets,
That said, here’s what is making news?
Paytm has made its IPO plan official. In its first official communication of its plans to list, the company has written to employees stating that its parent company One97 Communications has received an in-principle approval from its board to float an IPO. The mail said the IPO would comprise a fresh issue and/or an offer for sale of shares. It has offered employees an option to sell their holdings in the issue. They have been told to transfer the shares to an escrow account by June 22 if they propose to offload them.
NCLT has approved Piramal Group’s bid to acquire DHFL. In their order, HP Chaturvedi and Ravikumar Duraisamy of the tribunal’s Mumbai bench said the approval was subject to the final judgment from the National Company Law Appellate Tribunal and the Supreme Court’s decision. On May 19, the NCLT had asked lenders to consider an offer made by jailed promoter Kapil Wadhawan, which lenders found ineligible to be voted on.
Sugar stocks are rallying on Dalal Street after the government last week advanced the deadline for 20% ethanol blending in petrol by two years to 2023 from 2025. Rising ethanol demand and aggressive ethanol capacity addition would drive a compounded earnings growth of 15-20% over FY21-24, said analysts who are bullish on Uttar Pradesh-based sugar stocks such as Balrampur Chini, Triveni Engineering, Dhampur Sugar, Dalmia Bharat, DCM Shriram Industries and Dwarikesh Sugar.
Minority shareholders and proxy investors have red-flagged the PNB Housing deal. With PNB and minority shareholders losing Rs 2,400 crore in just six days, the Rs 4,000 crore transfer of control deal in PNB Housing Finance to a private equity consortium led by Carlyle is facing opposition from sections of the minority shareholders and a proxy advisory firm, who claim the transaction was non-transparent. However, a senior finance ministry official said there have been no “regulatory issues” with the transaction.
LASTLY,
Sebi has barred Franklin Templeton Mutual Fund from launching new debt schemes for two years for mismanaging some of its fixed income funds. The markets regulator has also slapped a Rs 5 crore fine on Templeton for not adhering to rules relating to categorisation of MF schemes. In addition, it has asked the fund management to refund Rs 512 crore in fees to investors in the six debt schemes which the fund house had decided to close down on April 23, 2020.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
State Bank of India has invested an undisclosed amount in digital payments startup Cashfree, the company announced on Monday
JK Tyre & Industries is working on debottlenecking operations to enhance capacity amid an expected surge in demand post the second wave of the pandemic
Leading private sector life insurer ICICI Prudential’s participating policy bonus for FY21 increased 10% year-on-year to Rs 867 crore — the highest bonus ever declared, the company said on Monday.
The Suraksha Group has offered to deposit Rs 300 crore immediately if Jaypee Infratech’s creditors approved its bid, so that construction work in the stuck projects can resume immediately.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing
