Burger King: Ready for IPO

Burger King: Ready for IPO

Burger King India is all set to launch its maiden public offer for subscription next week to raise Rs 810 crore, comprising a fresh issue of shares amounting to Rs 450 crore, while the promoter entity QSR Asia Pte Ltd will sell up to 6 crore shares worth Rs 360 crore at
The fast food provider, has set the price band at Rs 59-60 per share, after consultation with merchant bankers, which is 5.9-6 times of its face value of equity shares, for its initial public offer (IPO) which is slated for launch on 2 December.
The Indian subsidiary of US-based Burger King had undertaken a pre-IPO placement, by way of rights issue, of Rs 58.08 crore at a price of Rs 44 per share to promoter and preferential allotment of Rs 91.92 crore at a price of Rs 58.50 per share.

Hence, as a result, the fresh issue size has been reduced to Rs 450 crore from Rs 600 crore earlier.
The funds will be for rolling out of new company-owned Burger King Restaurants and general corporate purposes.
Under the Master Franchise and Development Agreement, the company is required to develop and open at least 700 restaurants (including company-owned Burger King Restaurants and Sub-Franchised Burger King Restaurants) by December 31, 2026, which has recently been extended by one year from December 31, 2025 due to the COVID-19 crisis.
Bids can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. It means retail investors can apply for maximum up to 3,250 equity shares at higher price band.

The company has reserved up to 10 percent portion of IPO for retail investors, upto 15 percent for non-institutional investors and up to 75 percent for qualified institutional investors.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial are the book running lead managers to the issue. Equity shares are expected to debut on bourses around December 14, 2020.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

PNGRB alters gas pipeline tariff structure; boost infra-investment

PNGRB alters gas pipeline tariff structure; boost infra-investment

Shares of gas transmission companies such as Gujarat Gas, Indraprastha Gas, Mahangar Gas, Adani Gas, Gujarat State Petronet (GSPL), and Gail rallied up to 19% on the BSE in the early morning trade on Friday after oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure to make the fuel more affordable for distant users and to attract investment for building gas infrastructure.

Among individual stocks, Gujarat Gas soared 19% to Rs 411 on the BSE on the back of heavy volumes. Indraprastha Gas, on the other hand, was locked in the 10% upper circuit at Rs 492. Meanwhile, Mahangar Gas surged 10% to Rs 1,023, Adani Gas gained 9% to Rs 345, Gujarat State Petronet (GSPL) added 18% to Rs 243, and Gail was up 4% to Rs 107 in the intra-day trade today. In comparison, the S&P BSE Sensex was trading flat at 44,259.
Unified tariffs will encourage gas transmission companies to set up new pipelines and will result in long term volume growth.

The tariffs will be applicable based on two zone structure related to distance from source of gas.
The PNGRB has notified regulations for a ‘unified’ tariff structure for over a dozen pipelines that form the National Gas Grid which will lead to a 20-30% rise in transportation charges paid by users near the source but a reduction for consumers in the hinterland. Oil & gas regulator has sweetened City Gas Distribution (CGD) open access by not considering the incumbent’s existing OMC/dealer CNG stations as shipper for allowing access.
PNGRB has also removed draft provisions challenging infra exclusivity such as allowing shipper to set up compressor facilities, cascade supplies and even pipelines in the event incumbent is not able to do so.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Laurus Lab: Richcore acquisition marks entry into biotech

Laurus Lab: Richcore acquisition marks entry into biotech

Laurus Labs share rose 5% in early trade on Thursday after the pharma firm inked a definitive agreement to acquire 72.55% of Richcore’s stake from Eight Roads Ventures and VenturEast for Rs 246.67 crore.
Share of Laurus Labs gained 4.82% to Rs 298.80 against the previous close of Rs 285.05 on BSE.
The acquisition of Richcore marks Laurus Labs’ entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India.
Through this acquisition, Laurus Lab has not only cut short the gestation period but will provide a quantum jump in revenue.

Richcore is a biotech company based in Bengaluru and develops products critical for biological drugs; it also helps global customers contract research and scale-up their bioprocesses by providing contract research, development, and manufacturing services.
Richcore has large scale fermentation capabilities and manufactures animal origin free (AOF) recombinant products.
These products help vaccine, insulin, stem-cell based regenerative medicine and other biopharma companies eliminate dependency on animal and human blood derived products and in turn produce safer medicines.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

LVB shareholders pin hope on legal recourse

LVB shareholders pin hope on legal recourse

Shares of Lakshmi Vilas Bank (LVB) looked up on Thursday, after staying locked in lower circuit limits for six consecutive days, as the NSE and the BSE decided to suspend trading in the stock.
The move will help prevent further erosion in LVB’s share price, which has slumped more than 53%, thanks to the Reserve Bank of India’s (RBI) move of merging the embattled lender with DBS Bank.
Meanwhile, on Wednesday, the Union Cabinet approved DBS Bank’s plan to take over capital-starved LVB with effect from November 27, paving the way for the first such rescue by a foreign lender.
The deal offers nothing for LVB shareholders.
In 2004, Global Trust Bank (GTB), which went bust, was merged with Oriental Bank of Commerce (OBC), and the GTB shareholders received nothing.

At the end of September, some 12 foreign institutional investors (FIIs) held 8.55% stake in the lender. They have consistently reduced their holdings in it in last five quarters from 16.45% at the end of June quarter. Mutual funds, on the other hand, hiked their stake in the lender to 6.40% in the September quarter, from 4.78% in the quarter before.
Retail investors own nearly 23.98%cent stake at the end of September, compared with 21.14% they had held at the end of December 2019.

All of the bank’s equity, including the shareholding of Indiabulls Housing Finance (4.99%), Srei Infrastructure Finance (3.34%), LIC (1.62%) and promoter ownership of 6.8%, as well as stakes held by retail investors, are set to be extinguished as the draft scheme of amalgamation says that the entire paid-up capital of the bank will be written off.
The scheme suggested by RBI leads to a very raw deal to LVB shareholders. It’s an ‘amalgamation’ of assets and liabilities, and not a conventional merger (involving exchange of stocks), which could have given LVB shareholders equity stake in the new entity. The deal structure is unfair for shareholders of the bank.
There is always a legal recourse available, it is very unlikely that there will be any outcome out of it in the case of LVB, even as there seems to be lack of transparency on the valuation.

Earlier this month, LVB said its net loss widened to Rs 397 crore in the quarter ended September, compared with a net loss of Rs 357 crore in the year-ago period. Its net interest income dropped 28% to Rs 79.5 crore.
Gross NPA stood at 24.45% as at end September, compared with 21.25% a year ago.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

IRB Infra: On a fast track

IRB Infra: On a fast track

Shares of IRB Infrastructure Developers (IRB) climbed 4% in Wednesday’s trade after the company said that the Agra-Etawah build-operate-transfer project has been issued a completion certificate.
The roads and highways builder had a impressive run on the bourses. It has rallied 154% from March lows.
Etawah BOT Project implemented by AE Tollway Ltd (SPV) which is now part of IRB Infrastructure Trust – Private InvIT, has been issued a completion certificate by the competent authority.
Consequently, toll rates for the SPV would be increased by 70% and the SPV will collect toll at revised rates on this project.

IRB reported a consolidated net loss of Rs 20 crore for the fiscal year to September 30, 2020. It had clocked a consolidated profit of Rs 200 crore in the corresponding quarter of the previous fiscal.
Total consolidated income during the quarter under review declined to Rs 1,169 crore as against Rs 1,801 crore in the year-ago period. However, the results are not comparable due to transfer of 9 Assets to Pvt InvIT and impact of global Pandemic.
IRB is in the process to raise Rs 510 crore by way of rights issue in Private InvIT.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

UBI: On a fundraising spree

UBI: On a fundraising spree

Shares of Union Bank of India (UBI) jumped 5% in Wedesday’s trade after the state-owned bank said it will raise up to Rs 1,000 crore from bonds to fund business growth.
The state owned lender is issuing Basel III compliant Tier II bonds in the nature of debentures aggregate issue size not exceeding Rs 1,000 crore, with a base issue size of up to Rs 500 crore and a Green Shoe option to retain oversubscription up to Rs 500 crore.

The bonds of face value of Rs 10 lakh each, bearing a coupon of 7.18% per annum, will have maturity of 15 years. The bonds have fixed allotment date of 26 November, 2020.
The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.
UBI reported a net profit at Rs 517 crore for the quarter ended September, against a net loss of Rs 1,194 crore in the year-ago period.

The lender witnessed improvement in asset quality with the net non-performing assets ratio improving by 227 basis points to 4.13% from 6.40% in the year-ago period. Gross NPA ratio improved to 14.71% in the quarter under review from 15.75% in September 2019, leading to lower provisions towards credit losses. The lender made only Rs 3,721 crore in total provisions as against Rs 5,055 crore in the year-ago period.

Net interest income in the latest September quarter rose 6.1% to Rs 6,293 crore. Other income stood at Rs 2,308 crore, which included Rs 1,065 crore of treasury income, Rs 932 crore from sale of assets/ investments and Rs 232 crore recovery from written off assets.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Dewan Housing: Gaining traction

Dewan Housing: Gaining traction

Shares of Dewan Housing Finance Corporation (DHFL) were locked in 5% upper price band at Rs 24.60 apiece ahead of the committee of creditors (CoC) meeting on Wednesday to seek fresh bids and vote to decide on it.
Earlier, suitors raised their offer price in the revised bids submitted for the mortgage lender.
Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy submitted 10-70% higher price for either a stake in the company or buying out some of its assets.

CoC has informed all four bidders that their revised bids will be considered only in respect of the asset for which they had initially submitted the resolution plan. No bidder will be allowed to submit a revised or new bid for different group of assets owned by DHFL.

This could mean that the “unsolicited” bid submitted by the Adani Group for acquiring the entire DHFL may not be considered because Adani had initially submitted a bid for only DHFL’s wholesale and slum rehabilitation book.
The Reserve Bank of India (RBI) had in November 2019 referred DHFL to the National Company Law Tribunal (NCLT) for insolvency proceedings. It was the first non-banking finance company (NBFC) to be taken to the bankruptcy court.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Ingersoll-Rand promoter proposes to offload stake via OFS

Ingersoll-Rand promoter proposes to offload stake via OFS

Shares of Ingersoll-Rand (India) slumped 7% in early trade on November 24 following the promoters decision to sell their stake in the company.
Ingersoll-Rand INC, a promoter of the company, proposes to sell up to 14,25,798 equity shares (representing up to 4.52% of the total issued and paid-up equity share capital of the company) on November 24, 2020 (for non retail investors only) and on November 25, 2020 (for Retail Investors and for non-Retail Investors).
The floor price for the sale shall be Rs 578.60 per equity share and 12% discount on the cut-off price is being offered to retail investors.

The OFS opened on Tuesday (24 November 2020) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (25 November 2020).
A total of 10% of the offer size, aggregating to over 1.42 lakh shares, has been reserved for retail investors. The company will offer 12% discount on the cut-off price to retail investors.
Post stake sale, the promoter stake will come down to 75%, in-line with SEBI guidelines on minimum public shareholding pattern. The stake sale will fetch the promoters Rs 82.5 crore.

Ingersoll-Rand is primarily engaged in the business of manufacturing and sale of industrial air compressors of various capacities and related services, and its complete machines and spare parts.
The company’s net profit declined by 19.5% to Rs 18.30 crore on a 13.5% fall in net sales to Rs 148.19 crore in Q2 FY21 over Q2 FY20.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

RIL set to raise $1.5 bn in overseas loans

RIL set to raise $1.5 bn in overseas loans

Billionaire Mukesh Ambani owned oil to retail conglomerate Reliance Industries (RIL) is planning to raise up to $1.5 billion in overseas loans to refinance some of its existing debt facilities. The move is expected to cut cost up to 70 basis points, helping save on interest payments.
RIL is in talks with Standard Chartered Bank, Citigroup, State Bank of India, MUFG, HSBC, and DBS Bank. The loan syndication will be launched the next two-four weeks.

Interestingly, the decision to search for refinancing negotiations are coming at a time when the Mukesh Ambani-owned firm has raised nearly $22.48 billion through strategic investments by global firms in its units.
The loan will be used to repay the debt of Reliance Holding USA (RUSHA), a subsidiary that was earlier this year amalgamated with another unit, Reliance Energy Generation and Distribution Ltd., to simplify its corporate structure. The National Company Law Tribunal approved the amalgamation of the two subsidiaries in August.
The loan is expected to be priced at LIBOR (London Interbank Offered Rate), a global rate gauge, plus 95 basis points. The spread or differential was about 165 basis points in earlier loans. A basis point is 0.01%.
About a month ago, the company raised about $1 billion, with the State Bank of India and MUFG contributing about $600 million together. The loans were availed to repay the first series of high cost debt, which were bond maturities.

RIL has chosen loan syndication that takes less time to be arranged than a conventional offshore bond sale.
Also for loans, principal and interest must be repaid every year, unlike in bonds, where only interest is paid annually.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Oxford-AstraZeneca Covid-19 vaccine can be 90% effective

Oxford-AstraZeneca Covid-19 vaccine can be 90% effective

British-Swedish drugmaker AstraZeneca said on Monday its covid vaccine for the novel coronavirus, developed along with the University of Oxford, could be around 90% effective under one dosing regimen.
The British-Swedish drugmaker’s preliminary trial results mark a fresh breakthrough in the fight against a pandemic that has killed nearly 1.4 million people and roiled the global economy.
AstraZeneca’s covid vaccine efficacy and safety confirm that it will be highly effective against COVID-19 and will have an immediate impact on this public health emergency.

Furthermore, the vaccine’s simple supply chain and the drug makers no-profit pledge and commitment to broad, equitable and timely access means it will be affordable and globally available, supplying hundreds of millions of doses on approval.

Oxford and AstraZeneca are waiting for the results of phase III trials of their coronavirus vaccine candidate ‘AZD1222’ on thousands of people around the world to show whether their vaccine is safe and effective.
AstraZeneca is “making rapid progress in manufacturing with a capacity of up to 3 billion doses of the vaccine in 2021 on a rolling basis, pending regulatory approval. The vaccine can be stored, transported and handled at normal refrigerated conditions (2-8 degrees Celsius/ 36-46 degrees Fahrenheit) for at least six months and administered within existing healthcare settings.

Last week, Pfizer and Moderna had reported promising results from vaccine trials. The coronavirus vaccine developed by Pfizer has shown 95% efficacy in the late-stage trial

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.