Author: Legal Parivar

Following Tata Motors’ decision to split its passenger and commercial vehicle businesses, its shares rose by 4 percent, reaching a 52-week high of Rs 1,027 on March 5th. This move was warmly received by both brokerages and investors. JP Morgan, among others, assigned an “overweight” rating to the stock with a price target of Rs 1,000, indicating a 1.2 percent upside from the previous close. Similarly, Morgan Stanley expressed confidence in the decision, stating that it reflects Tata Motors’ belief in the sustainability of the personal vehicle segment, potentially leading to enhanced value creation. Morgan Stanley also highlighted potential synergies…

Purv Flexipac made an extraordinary market debut on March 5th, opening at Rs 260, marking an astounding 266 percent premium over the issue price of Rs 71 on the NSE Emerge platform. Prior to its listing, Purv Flexipac was trading at an impressive 83 percent premium in the grey market, an unofficial platform where shares are traded before IPO allotment and until the listing day. The grey market premium (GMP) is often tracked by investors to gauge the potential listing price. The IPO, which opened for bidding on February 27th and closed on February 29th, witnessed an overwhelming subscription of…

Exicom Tele-Systems made a remarkable debut on the stock exchanges on March 5th, opening at Rs 265, marking an impressive premium of 87 percent over the issue price of Rs 142 per share. The Gurugram-based EV charger manufacturer aimed to raise Rs 429 crore through its initial public offering (IPO), comprising a fresh issue of Rs 329 crore worth of shares by the company and an offer-for-sale (OFS) of 70.42 lakh shares worth Rs 100 crore at the upper price band. Promoter NextWave Communication will be divesting shares in the OFS. The IPO garnered substantial interest, with a robust subscription…

Platinum Industries witnessed its stock debut on March 5th, listing at a 35 percent premium over the IPO price, slightly below the earlier Grey Market Premium (GMP) estimates of 50 percent. The stock commenced trading at Rs 225 on the NSE, surpassing the issue price of Rs 171. Prior to its listing, the company’s shares were trading at a 50 percent premium in the grey market. During the IPO subscription period from February 27th to 29th, the Rs 235.32 crore IPO issue garnered immense interest, being oversubscribed 99.03 times. Qualified institutional buyers subscribed 151 times the allotted quota, while non-institutional…

Kalpataru Projects International Ltd (KPIL) saw its shares rise by 3 percent in early trading, continuing a four-session upward trend following the company’s announcement on March 5th regarding a significant order from Saudi Arabia’s Aramco. This order pertains to the engineering, procurement, and construction (EPC) work for three segments of the third expansion phase of the Master Gas System Network (MGS‐3) in Saudi Arabia. As of 9:36 am, KPIL’s stock was up nearly 2 percent at Rs 1,019 on the NSE. Over the past six months, Kalpataru Projects shares have surged by 50 percent, with a nearly 20 percent increase…

JG Chemicals, a manufacturer of zinc oxide, secured Rs 75.36 crore from anchor investors on March 4, a day before its IPO opened for subscription. This marks the second public issue to debut on Dalal Street this month, following R K Swamy, which began its subscription today and will close on March 7. The Kolkata-based company disclosed that it allocated 34,09,818 equity shares to anchor investors at a price of Rs 221 per share. Massachusetts Institute of Technology emerged as the largest anchor investor, acquiring over 18.1 lakh equity shares valued at Rs 40 crore. Other notable participants in the…

Tata Motors’ recent announcement on March 4 regarding its intention to demerge its passenger vehicles and commercial vehicles businesses into two separately listed entities is aimed at unlocking value for both segments, particularly the passenger vehicle (PV) business, which is anticipated to require larger investments as it expands its electric vehicles (EV) portfolio, analysts noted. The company has been outlining the roadmap for this demerger for some time now. The PV unit was separated into a distinct subsidiary effective from January 2022, and within that, the passenger electric mobility business was further segregated into another subsidiary – Tata Passenger Electric…

Blue Star, a prominent player in India’s air conditioner market, is anticipating a 25% surge in sales as the upcoming summer is forecasted to be hotter than usual, leading to robust demand for cooling appliances. Managing Director of Blue Star, B. Thiagarajan, expressed optimism regarding the summer season, stating that early signs indicate favorable conditions for the AC segment. He attributed this positive outlook not only to the expected weather conditions but also to a brighter economic outlook, which is anticipated to drive consumer spending. This optimism follows a period of disappointment for Blue Star, as its AC sales fell…

The State Bank of India has approached the Supreme Court, requesting an extension of time until June 30, 2024, to disclose information regarding electoral bonds encashed by political parties. This information includes details such as the date of encashment and the denomination of the electoral bonds. Currently, the deadline for disclosure is set for March 6. In its submission to the Supreme Court, SBI stated that the process of retrieving information from each data repository and the subsequent matching of information across different databases would require a considerable amount of time. Hence, the bank seeks an extended deadline to ensure…

Swan Energy announced on Monday that its subsidiary, Swan LNG Pvt Ltd, has prepaid a significant portion of its loan, amounting to Rs 2,206 crore, to a consortium of lenders. Following this prepayment, Swan LNG’s outstanding debt has been reduced to Rs 1,611 crore, resulting in an estimated annual interest cost saving of around Rs 250 crore. The company, however, did not disclose the names of the lenders involved in this transaction. Prior to the repayment, Swan Energy Group’s total debt stood at Rs 3,817 crore as of December 2023. To facilitate the prepayment, Swan Energy itself provided financial assistance…