Recently in the Stock Market, listed Mankind Pharma is in fray to acquire the stake of Advent International in Bharat Serums. Advent is reportedly seeking a valuation of $2 billion for its 100% stake in Bharat Serums. Advent is one of the leading private equity firms globally, especially in the healthcare space. Bharat Serums is expected to report EBITDA of Rs500 crore for FY24 and higher EBITDA of Rs650 crore for FY25. The healthcare space has seen some very big private equity deals in the last few months, including in generics and in hospitals.
A day ahead of the IPO opening, Go Digit General Insurance has raised Rs1,177 crore from anchor investors. It allocated close to 4.33 crore shares to anchor investors at the upper band price of Rs272 per share. Nearly one-third of this anchor allocation was made to domestic mutual funds, while the balance was made to FPIs, P-Notes, insurance companies and to AIFs. The IPO of GO Digit General Insurance will open for subscription on May 15, 2024 and close on May 17, 2024. The IPO is a mix of fresh issue and OFS.
Apollo Tyres saw Q4 net profits fall by 13% to Rs354 crore on the back of higher tax expenses. Apollo Tyres is one of the largest tyre manufacturers in India and a leading suppliers of OEM products to some of the leading auto companies in India and abroad. The one-time expense came from a deferred tax liability and a higher tax outflow in the quarter. The company also took a hit on account of higher prices of natural rubber, a key input for tyres. Q4 Revenues were flat at Rs6,258 crore; both were below street estimates.
It is almost after a gap of 10 years that Tata Motors has overtaken TCS as the most profitable company in the Tata group. For the quarter of FY24 (Q4FY24), Tata Motors reported net profits of Rs17,483 crore as against net profits of TCS for the quarter at Rs12,434 crore. However, on an annual basis, TCS still is the bigger profit generator for the Tata group. While other companies have occasionally got the better of TCS in terms of quarterly profits; it is TCS that still ranks as the most consistent profit generator for Tata group.
The board of Siemens India has approved the demerger of its energy arm into a separate entity, which will also be listed on the stock exchanges. As per the scheme of arrangement, the shareholders of Siemens Ltd will get shares of Siemens Energy India Ltd in the ratio of 1:1. The demerged entity will be listed on the NSE and on the BSE. According to Siemens, the demerger will help to better address the specific needs of both the business verticals and also lead to better allocation of capital. Merger will be done by 2025.
Jerome Powell of the US Fed, in a recent speech at a banking event in Amsterdam, opined that while the US Fed was confident of inflation coming down, the trajectory was not too certain. However, Powell also expressed the confidence that the Fed may not have to hike rates again to tackle inflation; although the current levels of interest rates (5.25%-5.50%) could continue for a longer period. The latest April data on consumer inflation saw slightly higher headline inflation. However, oil prices will remain the swing factor.
Bharti Airtel reported 31% lower net profits at Rs2,072 crore for Q4FY24. At the same time, the Q4FY24 net revenues came in 4.4% higher at Rs37,599 crore. Bharti Airtel reported that its profits in the quarter were impacted by the devaluation of the Nigerian Naira, since the company has a fairly large franchise in Africa. EBITDA for the quarter was up 4.2% at Rs19,590 crore with EBITDA margins improving by about 50 bps to 53.6% in Q4FY24. Bharti Airtel reported ARPUs of Rs209 in Q4 and declared Rs8 dividend per share.
A major block trade is expected today on Cipla counter with the promoters selling 2.53% stake in the company for a consideration of Rs2,637 crore. The deal is expected to happen in the price range of Rs1,289 and Rs1,358. Interestingly, Cipla stock has yielded nearly 45% returns in the last one year. As of date, the promoter shareholding in Cipla stands at 33.47%. The promoters have been planning to pare down their stake for some time and several deals in the past had fallen through as they could not agree on valuations.
