Stocks in Focus on March 6: At the stock markets, the Sensex at the Bombay Stock Exchange rose 61.13 points, or 0.16 per cent, to end at 38,470.61, on Thursday, March 5, 2020. The Nifty at the National Stock exchange gained 18 points, or 0.16 per cent, to 11,269. But certain stocks came in news after the market was closed and can impact the indices when it reopens on Friday, March 6, 2020. Here is the list of five stocks:
SBI Card IPO Update: The public offer of the country’s second-largest credit card issuer SBI Cards and Payment Services was oversubscribed 26.54 times so far on March 5, 2020, the final day of bidding. The portion set aside for non-institutional investors is subscribed 45.22 times, and that of retail is subscribed 2.50 times. The reserved portion of employees saw a 4.73 times subscription, while that of State Bank of India’s shareholders’ portion is oversubscribed 25.35 times. The price range for the IPO was fixed at Rs750-755 per share. SBI Cards had a target to raise Rs 10,350 crore through this initial public offering.
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YES Bank: The Reserve Bank of India has superseded the board of Yes Bank and limited cash withdrawal to Rs 50,000. It also imposed a month-long moratorium till April 3, 2020, as the central bank will implement a bailout plan for the private-lender that was once India’s fifth-largest private lender by assets. However, RBI has asked the depositors of the bank to not panic as they are working on a plan, which will be disclosed in the next few days. Besides, Prashant Kumar, a former chief financial officer of the State Bank of India (SBI) was appointed as the administrator of the private lender. The board of SBI has granted in-principle approval to explore an investment opportunity in the bank.
Public Sector Banks in Focus: Public sector banks will be in focus today as eight banks on Thursday announced the share exchange ratio in accordance with the scheme of amalgamation. Punjab National Bank (PNB) board has approved the amalgamation with Oriental Bank of Commerce (OBC) and United Bank of India (UBI). According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI. Similarly, Andhra Bank and Corporation Bank are to be amalgamated into Union Bank of India. According to the swap ratio, 325 equity shares of Union Bank of India will be swapped for every 1,000 equity shares in Andhra Bank, while 330 shares of Union Bank will be swapped for 325 equity shares in Union Bank of India for every 1,000 equity shares in Andhra Bank. Also, Syndicate Bank will merge into Canara Bank and as per the share swap ratio, 158 equity shares of Canara Bank will be swapped for every 1,000 equity shares of Syndicate Bank. Likewise, Indian Bank will be merged with Allahabad Bank and according to the swap ratio, 115 equity shares of Indian Bank will be swapped for every 1,000 equity shares of Allahabad bank.
Telecom Stocks in Focus: The government is working on provisions to provide relief to the telecom sector. The statement comes days before Vodafone Group CEO Nick Read’s visit to India. The relief will be announced for the entire sector not just for selected companies like Vodafone Idea.
Cipla, Jubilant Food and Navbharat Ventures: Fund action were seen in these companies. Details of fund action:
Cipla: LIC has increased its stake in Cipla from 2.5 per cent to 4.52 per cent from April 17, 2018, to March 3, 2020, via open market purchase.
Jubilant Food: East Bridge Capital Master Fund acquired 24.05 lakh shares (1.51 per cent) of Jubilant Food at Rs 497.6 each; while Morgan Stanley Asia (Singapore) sold 16.26 lakh shares (1.02 per cent) at Rs 495.75 each.
Navbharat Ventures: East Bridge Capital Master Fund acquired 42.3 lakh shares (2.40 per cent) of Navbharat Ventures at Rs 65.15 each; Morgan Stanley Asia (Singapore) has sold 42.2 lakh shares (2.40 per cent) at Rs 65.15 each.