Shares of engineering major Larsen and Toubro (L&T) today rose 2 per cent as its subsidiary L&T Infotech has filed a fresh draft red herring prospectus (DRHP) with market regulator SEBI to launch its IPO.
The stock went up by 2 per cent to Rs. 1,248 on the BSE. On the NSE, it climbed 2 per cent to Rs. 1,248.
The stock ended the session higher by 1.06 per cent at Rs. 1,235.55 on the BSE.
The offer would comprise an offer for sale of up to 1,75,00,000 equity shares of the subsidiary by L&T Ltd, the company had said in a regulatory filing yesterday.
L&T had said on Monday that it had withdrawn an earlier DRHP filed with the regulator for the proposed IPO.
The earlier prospectus was withdrawn “due to change in the offer structure and other considerations’’.
The firm had filed the earlier DRHP with SEBI in September 2015, seeking permission for an IPO, and had obtained a go-ahead from the capital markets regulator on December 31, 2015.
L&T Infotech, the IT services unit of L&T, figures among the India’s top 10 IT service providers.
Bajaj Corp shares plunge
Shares of FMCG firm Bajaj Corp today fell 5 per cent after the company reported a marginal decline in its standalone net profit as well as sales for the fourth quarter ended March 31, 2015-16.
The stock plunged 5 per cent to Rs. 393 on the BSE. On the NSE, it declined by 4.95 per cent to Rs. 393.
Bajaj Corp shares ended lower by 4.22 per cent at Rs. 396.35 on the BSE.
Bajaj Corp had yesterday reported a marginal decline in standalone net profit at Rs. 54.02 crore for the January-March period of the last fiscal ended March 31, 2016.
It had reported a net profit of Rs. 54.42 crore in the same quarter of 2014-15 fiscal.
The company’s net sales stood at Rs. 227.79 crore in the quarter under review, down 3.24 per cent, againstRs. 235.42 crore in the year-ago period, the firm had said in a BSE filing.
Bajaj Corp’s products include Bajaj Almond Drops, Bajaj Kailash Parbat and Bajaj Brahmi Amla and Nomarks brand.
Bank stocks gain
Stocks of lenders rose as benign inflation has raised rate-cut hopes.
Retail inflation had eased in March to a six-month low, raising hopes the central bank would ease interest rates further.
The Reserve Bank of India had cut policy rates by 25 bps last week to a more than five-year low, leaving open the prospect of more cuts if inflation trends stay benign.
The S&P BSE Bankex index jumps 1.66 per cent. It has the highest weightage on the benchmark BSE index, which is up 1.5 per cent.
State Bank of India rose 2.2 per cent, Punjab National Bank gained 1.6 per cent, and ICICI Bank surged 4.6 per cent.
At the closing trade, SBI stock was up 2.16 per cent at Rs. 191.75, PNB up 1.32 per cent at Rs. 84.55 and ICICI Bank up 5.4 per cent at Rs. 241.
Wipro jumps to 6-month high
Wipro jumped to a six-month high on share buyback plan.
Software services exporter stock gained as much as 4 per cent to a six-month high of Rs. 591.90.
The company said that it will consider a buyback of shares at its board meeting on April 20. On the same day, it will announce its March-quarter results.
Wipro promoters own about 73 per cent stake in of the company, according to Thomson Reuters data.
Tender offer route will be more appropriate form of buyback; open market route can lead to promoters’ stake going beyond SEBI mandated 75 per cent limit, Kotak Institutional Equities says.
Wipro trades at a discount to most of its peers on one-year forward earnings, according to Thomson Reuters data.
StarMine Intrinsic Valuation model pegs the fair value at Rs. 666.24 rupees, above the current levels of Rs.586.
The company shares ended higher by 2.89 per cent at Rs. 584.60.
Kaveri Seeds up 7%
Shares of Kaveri Seeds today jumped by around 7 per cent after the company announced that it has opened a new plant in Telangana.
The stock was trading at Rs. 407.50 on BSE, a gain of 6.91 per cent over its previous close.
On the NSE, it was trading at Rs. 407.90, a rise of 7.18 per cent.
The stock surged 5.23 per cent to Rs. 401.10 at the closing session on the BSE.
Kaveri Seed Company Ltd had yesterday announced that it has opened a new plant at Karimnagar district in Telangana with an investment of over Rs. 21 crore.
The plant is scheduled to commence operations in the first week of May. Spread across 14 acres, it has an installed capacity of 10 to 20 tonnes (Paddy/Maize) of production per hour based on the crop, the firm said in a BSE filing.
The plant will enhance the existing capacity of seed process to meet the growing demand from the markets, the company Managing Director, G V Bhaskar Rao, said.
[“source-Business2community”]
