The IPO of Heranba Industries got a good response at the close of the last day of the IPO. Heranba Industries IPO was subscribed 83.29 times with the final numbers yet to be announced. The QIB portion was subscribed 64.45 times, the retail portion 11.84 times and the non-institutional HNI portion was subscribed a whopping 271.25 times. Heranba is a Gujarat-based agrochemicals company and has a strong balance sheet combined with low leverage. The predominant portion of the IPO will be the OFS portion. Post the OFS issue, the shareholding of promoters will stand reduced to 74%, from 98.8% currently.
The progress on hiving off the oil to chemicals business into Reliance O2C limited has resulted in good price performance for Reliance Industries in the recent past. RIL was quoting at Rs.2,150 on Thursday and is currently trading at a 4-month high. With the approval of the stock exchanges and SEBI in place, RIL plans to complete the hiving off by Jun-21. Under the terms of the hiving off, the refining and petchem businesses will go into Reliance O2C to catalyse holistic and quick decision making. RIL still needs to take the approval of equity shareholders and creditors as well as the NCLT. This is seen as the first step to hive off a stake in the oil and chemicals business, something that did not work out initially with Saudi Aramco. Apart from being a monetisation plan, this move will also accelerate RIL’s new energy and material plans.
It seems to be a season of new public issues. The IPO of MTAR Technologies will open for subscription on March 03 and close on March 05. MTAR is a Hyderabad-based precision engineering solutions company. The price band for the IPO has been decided at Rs.574-575 per share. In the GMP market, the stock is already trading at a premium of 43% to its issue price band. The size of the MTAR public issue will be to the tune of Rs.597 crore which will include a fresh issue of Rs.124 crore and an OFS of Rs.473 crore. MTAR has already done a pre-IPO placement of Rs.100 crore with Axis Mutual Fund and SBI Mutual Fund.
The stock of Tata Chemicals rallied by 10% to hit a life-time high of Rs.738 per share on 25 February. The stock has rallied nearly 100% in the last 3 months. One trigger for the stock has come from Tata Sons which raised its stake in Tata Chemicals. In fact, as of December 2020, Tata Sons had increased its stake in Tata Chemicals from 29.39% to 31.90%. After hiving off its salt business to Tata Consumer Products, Tata Chemicals has a product range that caters to leading manufacturers of glass, detergents and other industrial products. Tata Chemicals has a strong presence in soda ash and in the crop protection business.
Cadila Healthcare stock rallied after a long time on Thursday after the company reported that its US-based subsidiary has acquired an experimental drug from Cyprium. This drug is meant for treating Menkes disease, which is a mis-alignment of copper levels in the body leading to nervous problem. The 2-way deal has been struck between Cyprium Therapeutics and Sentynl Therapeutics; the US-based specialty pharma company owned by Zydus Group. The Zydus unit will acquire proprietary rights of to CUTX-101, the Copper Histidinate product candidate of Cyprium meant for the treatment of Menkes disease.
A day after the virtual halt in trading at the NSE, the exchange clarified that the unavailability of an online risk management system had resulted in this prolonged shutdown. NSE is also in the process of preparing a root cause analysis of the event for SEBI and the Ministry of Finance. NSE also explained that it had multiple telecom links with two service providers to ensure redundancy but both the telecom companies faced downtime in their links. This negatively impacted the online risk management system. NSE has clarified that trading was not impacted but merely due to the absence of the online risk management system trading had to be halted. SEBI has also asked NSE to explain why trading did not automatically shift to the disaster recovery site, which is the standard protocol when the principal site faces troubles.