Both HDFC and HDFC Bank surged after they announced the merger of HDFC into HDFC Bank in the ratio of 42:25 share swap. The combined entity will have a market cap of more than TCS, but still be less than Reliance Industries. Post the merger, shareholders of HDFC Ltd will hold 41% stake in HDFC Bank. The combined market cap of HDFC and HDFC Bank, without counting valuation of synergy benefits, will be Rs.14.04 trillion. It will give HDFC Bank access to HDFC branches as well as its overall mortgage portfolio.
PVR and Inox Leisure, which had announced their merger last month, have a joint pipeline of 2,000 screens and aim to touch 4,000 screens over the next 7 years. This will entail an investment of Rs.4,000 crore. The approximate investment entailed would be Rs.2.50 crore per screen. The joint entity currently has over 1,500 screens across India. All the new screens set up post-merger will carry the tag of PVR Inox, while existing screens will retain their individual identity. It will help in faster recovery post the COVID pandemic.
For fiscal year FY22, India reported merchandise trade deficit of $192.41 billion. While the merchandise exports came in at $417.81 billion, the total imports came in for FY22 at $610.22 billion. This ensured FY22 overall merchandise trade in excess of $1 trillion for the first time ever. In Mar-22, the trade deficit was reported at $18.69 billion. The merchandise exports crossed the $40 billion mark for the first time in Mar-22. However, it must be remembered that both imports and exports are higher largely on the price effect.
Amazon and Future Retail confirmed to Supreme Court that they will appear before the Singapore International Arbitration Centre (SIAC) regarding arbitration proceedings. Currently, Delhi High Court is hearing the Amazon/FRL dispute and that will also have a bearing on the final decision. FRL counsel, Harish Salve, underlined that FRL may go into NCLT insolvency any time and hence most people were sceptical about doing business with FRL. Salve was explaining the reason for handing over outlets to Reliance Retail.
It looks like Green Energy is the big news now. In the latest announcement, IOCL, L&T and ReNew Power plan to form a joint venture (JV) to develop green hydrogen sector in India. This is an area where RIL and Adani group are taking immense interest. L&T will bring strong EPC credentials to the JV while IOC brings its deep insights into chemical processes and refining. ReNew Power has already established itself as a leading renewable energy supplier in a short span of time. The will also manufacture and sell electrolysers.
Hindustan Aeronautics (HAL) hit record high of Rs.1,593 on 04th April. The stock is already up 7% in just 2 trading sessions after HAL reported record revenues of Rs.24,000 crores for FY22. This is 6% higher on a yoy basis. The revenue boost came from the production of 44 new helicopters, 84 new engines and also overhauling 203 aircraft and 478 engines. HAL has also recently bagged a contract for 15 light combat helicopters (LCH) worth Rs.3,887 crore. CARE and ICRA raised credit rating from AA+/Stable to AAA/Stable.
For the month of March 2022, Bajaj Auto reported 20% lower vehicle sales at 297,188 units compared to
369,448 vehicles sold in Mar-21. However, the full year vehicle sales were up 8% for FY22 at 43,08,433 units. Two wheeler sales in Mar-22 fell by 22% to 256,324 units. In terms of mix of total sales, domestic sales for Mar-22 fell 36% to 126,752 units. However, the export sales were almost flat at 170,436 vehicles in Mar-22. Even in two-wheeler sales, domestic sales fell by 41% while exports remained flat on yoy basis.
Vodafone PLC of UK raised its stake in Vodafone Idea via its subsidiary, Prime Metals. A total of 570.96 million shares were allotted to Prime Metals via preferential issue. Post the preferential issue, the stake of Vodafone PLC in Vodafone Idea increased from 44.39% to 47.6%. This is part of the Rs.14,500 crore fund raising plan of Vodafone Idea, out of which promoters have infused Rs.4,500 crore. This infusion will hopefully enable the cash-strapped VI to take on the competitive might of Reliance Jio and Bharti Airtel.