Stock Market News 11-October-2021

1. Aditya Birla SunLife AMC shares listed at par.

a. The shares of Aditya Birla Sunlife AMC opened for trading at Rs.715 on the NSE, marking a premium of 0.42% from its issue price of Rs.712 per share. On the BSE, the stock opened unchanged at Rs.712. The company had offered shares in the price band of ₹ 695-712 per share.

b. The stock touched an intraday high of Rs.721.05 and closed at Rs.699.65.

c. The IPO was subscribed 10.36 times by the Qualified Institutional Buyers (QIBs) and 3.24 times by the Retail Individual Investors (RIIs) leading to an overall subscription of 5.25 times.

2. Reliance’s Investments in New Energy.

a.  Mukesh Ambani controlled Reliance New Energy Solar, a wholly-owned subsidiary of Reliance Industries Limited has acquired REC Solar Holdings from China National Bluestar Co. for an enterprise valuation of $771 Million.

b. This is the first major renewable energy deal, where an equipment manufacturing facility has been acquired. In other deals, only renewable energy projects were involved.

c. Within hours of announcing the acquisition of REC Solar Holdings, Reliance also announced the acquisition of a 40% stake in Sterling & Wilson Solar Ltd for around Rs.2,850 crores. Sterling and Wilson Solar Ltd is an international EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) service provider with five decades of engineering experience.

d. “This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers’, Mukesh Ambani said in a statement.

3. Nifty50 @ 18,000.

a. “Records are made to be broken” and the current rally in NIFTY50 justifies the proverb.

b. The benchmark index Nifty50 has reached an all-time high of 18,000 breakings its all previous records. The journey from 17,000 to 18,000 was relatively quicker than the journey from 16,000 to 17,000. The index took 28 sessions to rally from 17,000 to 18,000. Sensex is also trading at the 60,300 mark.

c. The support from retail investors and domestic institutions helped the Indian Stock market to have a spectacular year with the Nifty50 gaining more than 27% so far in 2021.

4. Rakesh Jhunjhunwala’s stake in Nazara Technologies is worth Rs.1,000 Crore!

a. Ace Investor Rakesh Jhunjhunwala’s stake in Nazara Technologies crossed the Rs.1,000-crore mark as the share reached an intraday high at Rs.3,223.80 on Friday.

b. The company’s market capitalization stood at Rs9,800 crores while the Big Bull’s stake of 10.82% was valued at Rs.1,060 crore.

a. In continuation of the news on Coal Shortage discussed in the Livestream on Thursday 7th October, a contradictory opinion from Government officials has put the people in a dilemma, “Coal or No Coal?”

b. Power Minister R K Singh and Coal and Mines Minister Prahlad Joshi have clearly stated that there is no shortage of coal and there is ample supply of coal sufficient enough to meet energy demand.

c. Further, shortages claimed by Tata Power and GAIL have been dismissed and their officials have been summoned by the Power Ministry.

d. However, the situation in some states portray a different picture. Punjab Government is appealing people to save electricity in light of coal shortage, Tamil Nadu government has started to resort to power cuts. Delhi CM Arvind Kejriwal also wrote to PM Narendra Modi to supply extra coal to meet the rising energy demand. In Maharashtra 13 thermal power generation plants supplying power to State discom MahaVitran have been shut down due to coal shortage.

e. Amidst this confusion shares of Coal India surged 4.5% on the stock exchange.

a. Tata Firms can also cross-sell its products with TCS being in the lead to bag the Air-India’s technology contracts. Tata Group is also planning to launch TataNeu App to sell the airline’s tickets. Tata Capital is being roped in to provide various schemes to customers via the app. The 12,000 employees retained by Tata can be potential buyers of Tata products ranging from cars to real estate. The hotels run by Tata can be able to sell their products on the flights after this deal.