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Kotak Bank to sell 20 cr shares of Airtel Payments Bank to Bharti Enterprises for Rs 294 cr

Kotak Mahindra Bank on Tuesday said it will sell 20 crore shares held in Airtel Payments Bank (APBL) for a cash consideration of Rs 294 crore or more to Bharti Enterprises Ltd.

A share purchase agreement has been executed by the bank for divestment of 20,00,00,000 equity shares (8.57 per cent stake) held by Kotak Mahindra Bank Ltd in APBL. These shares were acquired for Rs 200 crore invested in tranches during calendar years 2016 and 2017, the bank said in a regulatory filing.

The sale is expected to be completed by September 15 or before, for “cash consideration equal to or higher than Rs 294.8 crore; to be determined in accordance with the terms of the share purchase agreement,” it added. APBL was incorporated on April 1, 2010, under the RBI license for payments banks.

It commenced its operations as a payments bank, with effect from November 23, 2016. The company’s turnover was Rs 627.19 crore in FY 20. The bank said it does not require any governmental or regulatory approvals for the proposed transaction.

Bharti Enterprises has received no objection from the RBI to enable execution of the proposed transaction, it said. Stock of Kotak Mahindra Bank traded at Rs 1747.40 apiece on BSE, up 0.66 per cent from the previous close.

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Sensex zooms 765 pts, Nifty ends at 16,931 as bulls dominate D-St; Nifty to soon hit 17,000

BSE Sensex and Nifty scaled fresh record closing highs on Monday, making the investors richer by Rs 4 lakh crore. The total market capitalisation of BSE-listed companies rose to Rs 247 lakh crore from Rs 243 lakh crore on Friday. The 30-share Sensex surged 765 points or 1.36 per cent to 56,889.76, and Nifty 50 closed the day at 16,931, rising 1.35 per cent or 226 points. Index heavyweights such as Reliance Industries Ltd (RIL), ICICI Bank, Axis Bank, HDFC Bank, Housing Development Finance Corporation (HDFC), contributed the most to the indices’ gain. The broader market outperformed the equity benchmarks. S&P BSE MidCap index gained 1.72 per cent or 401 points to 23,656, and BSE SmallCap index added 1.55 per cent or 406 points to finish at 26,690 levels.

Vinod Nair, Head of Research, Geojit Financial Services

Indices and stocks surged through the day on positive global cues buoyed by the US Fed commentary. The rally today was pretty much broad-based as expectations on the first quarter GDP numbers slated to be released tomorrow aided investor sentiment. Afternoon trade witnessed the rally gathering momentum as indices rose 1.5 per cent with several stocks across sectors in the broader markets participating including exchanges.

Rohit Singre, Senior Technical Analyst, LKP Securities

Following a strong gap-up opening, equity benchmark indices maintained the trend throughout the day in line with the strength in global markets. Global markets strengthened as the anxiety over the Jackson Hole symposium subsided following the dovish tone of the Fed Chair. Jerome Powell stated to stick with the wait-and-see approach giving reassurance that the easy money policy will continue this year with a smaller rate of tapering.

Sachin Gupta, AVP Research, Choice Broking

On the daily chart, the nifty50 index has breached the prior resistance of 16700 and moved towards the new milestone of 17000 marks. Moreover, the index has also closed above the upper band of the Bollinger formation, which suggests a bullish presence in the counter. The index has been trading above all the important key indicators, which adds positive strength further. At present, the nifty index has immediate support at 16700 levels while resistance may come around 17000 levels.

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Ami Organics Rs 570-crore IPO opens Sep 1; check grey market premium, price band, lot size, bid details

Ami Organics Rs 569.63-crore IPO will open for subscription on 1 September 2021, at a price of Rs 603-610 per equity share of face value of Rs 10 each. So far this year, Ami Organics IPO is the 40th issue. Despite filing the preliminary papers with SEBI, the company could not float the IPO in 2018. This is the company’s second attempt at a public issue. In the primary market, Ami Organics shares were seen quoting at a premium of Rs 67 over the IPO price. In the grey market on Friday, Ami Organics shares were trading at Rs 677, a premium of 11 per cent over the issue price, according to the people who deal in unlisted shares of the companies.

Ami Organics will join the likes of Aarti Industries, Hikal Ltd, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd, once it completes its IPO. Investors can make bids for a minimum of 24 equity shares and in multiples thereafter. This will translate to a minimum investment amount of Rs 14,640 per lot at the upper end of the price band. Up to half of the net offer will be reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors (NIIs). The price/earnings ratio based on diluted EPS on a restated consolidated basis for FY 21 for the issuer at the upper end of the price band is as high as 35.59 as compared to the average industry peer group PE ratio of 48.91. The weighted average return on net worth for last year fiscals is 29.09 per cent.

Organics is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. Along with the domestic market, Ami Organics supplies Pharma Intermediates used for manufacturing APIs and NCEs to various multi-national pharmaceutical companies which cater to the large and fast-growing markets of Europe, China, Japan, Israel, UK, Latin America and the USA. “Ami Organics has continually invested in R&D activities to stay ahead and create a differentiating factor and sustainability vis-àvis their competitors,” Axis Capital said in an IPO note.

Recently, Ami Organics has completed the acquisition of two additional manufacturing plants operated by Gujarat Organics Ltd (GOL) in line with its inorganic growth strategy of foraying further into the specialty chemicals sector. Specifically, subsequent to the acquisition, it has acquired the preservatives (parabens and parabens formulations which have end usage in cosmetics, animal food and personal care industries) and specialty chemicals business of GOL (with end usage in inter alia the cosmetics, dyes, and agrochemicals industries).

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Oil & Gas Stocks to buy: Shares may rally 40%; OMCs cut petrol, diesel prices as global crude rates fall

Oil marketing companies (OMCs) have started cutting petrol and diesel prices as global crude oil rates softened. So far this month, petrol prices have been cut twice while diesel rates have been slashed on five instances. Last month, petrol prices were increased on nine occasions, while diesel rates were hiked 5 times. In June and May, fuel prices were raised 16 times each month. In the past month, the cumulative cut in petrol and diesel prices stood at Rs 0.4 and Rs1.0 per litre, respectively, with crude prices hovering around USD70/bbl.

Domestic research and brokerage firm Emkay Global Financial Services has given ‘buy’ rating to seven oil and gas stocks — BPCL, GAIL, Gulf Oil Lubricants, IGL, IOCL, ONGC, Petronet LNG and see up to 38 per cent rally from current levels. In a recent sector update report, the research firm noted that demand for oil products in the first half of August 2021 has slightly recovered from the second Covid-19 wave period, though petrol and diesel sales were down 4.9 per cent and 15 per cent, respectively, (due to monsoon seasonality impact as well) and LPG was down 2.7 per cent, while ATF prices was up 25 per cent, sequentially.

Sabri Hazarika, analyst at Emkay Global Financial Services, in a report, highlighted that petrol, diesel, ATF, and LPG sales volumes rose 9.4 per cent, 18.5 per cent, 48 per cent, and 6.6 per cent, respectively, on-year. As compared to the same period in calender year 2019, petrol managed to sustain at pre-Covid levels (up 3.7 per cent), pushed up by personal mobility demand (despite all-time-high prices), though diesel, ATF and LPG demand continued to lag (down 7.9 per cent, 45 per cent, 2.5 per cent).

Oil & Gas stocks to buy
BPCL: Emkay Global Financial Services see 16 per cent upside in the BPCL stock and pegged the target price at Rs 535 per share. The brokerage firm is overweight on thil oil & gas stock.

GAIL: It will take GAIL stock to rally 38 per cent from the current level of Rs 145 apiece, to hit the target price of Rs 200 per share set by the brokerage firm. Emkay Global is overweight on GAIL stock.

Gulf Oil Lubricants: Analysts at the brokerage firm see at leat 35 per cent rally in the Gulf Oil Lubricants stock price. It has pegged a target price of Rs 800, as against the current level of Rs 591 per share. The brokerage firm has ‘buy’ rating to the stock.

IGL: Indraprastha Gas Ltd may see a rise of 21 per cent from the current level of Rs 524.60 apiece. The brokerage firm has pagged a target price at Rs 635 per share, and is overweight on the stock.

IOCL: Indian Oil Corporation Ltd stock may rally 27 per cent to Rs 135 per share share, as suggested by the brokerage firm. Emkay Global Financial Services has given ‘buy’ rating to the stock.

ONGC: Emkay Global Financial Services is overwight on the ONGC stock. The stock has a target price pegged at Rs 140, a 21 per cent rally from the current levels.

Petronet LNG: Domestic research and brokerage firm has a ‘buy’ rating to the stock. It will take Petronet LNG stock to jump as much as 18 per cent from the current levels to hit the target price of Rs 270 per share, seen by the research firm.

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