*Escorts: Kubota to acquire 47mn shares at Rs94bn or Rs2,000/share; Shareholding to increase to 53.5% post open offer and cancellation of Treasury stock*
# Kubota has decided to increase its shareholding in Escorts, through preferential allotment of equity shares of 9mn and also open offer for 37mn shares, at price of Rs2,000/share or Rs94bn
# The number of Escorts’ shares held by the Nanda family, will remain unchanged through the Transaction.
# Escorts plans to reduce the remaining 21mn treasury shares without payment of any consideration after completion of the transaction. Following this, the total shares would be at 111mn.
# New share issue and open offer process is expected over Nov’21 to Mar’22 period.
# Kubota will provide quality and affordable basic tractors, by utilizing Escorts’ know-how and Kubota’s accumulated product development knowledge to improve quality and productivity in the R&D, procurement and manufacturing functions. In the fields of distribution and service, Kubota will effectively utilize both companies’ distribution networks by offering a wide range of product offerings, ranging from high-performance tractors to basic tractors.
# Kubota will consider developing and manufacturing basic combine harvesters and construction machineries targeting India and other emerging markets.
# Nikhil Nanda will continue serving as Escorts’ CMD. After the transaction, he will be newly appointed to the position of Senior Managing Executive Officer and General Manager of Value-Innovative Farm and Industrial Machinery Strategy and Operations of Kubota. Also, Nikhil Nanda will be appointed as a Director of Kubota Holdings Europe B.V., a subsidiary which oversees the European machinery business.
# After completion of the Transaction, Kubota Agricultural Machinery India and Escorts Kubota India are to be merged with Escorts.
_Kubota takeover is positive for Escorts, as it will result in technology/new product support for Agri and Construction Equipment divisions. Exports can also receive a boost as a result of widening product portfolio and utilization of global Kubota distribution network._
_Open offer would be for 37mn shares. Assuming Nanda family does not participate, then minimum acceptance ratio can be 51%._
# Kubota has decided to increase its shareholding in Escorts, through preferential allotment of equity shares of 9mn and also open offer for 37mn shares, at price of Rs2,000/share or Rs94bn
# The number of Escorts’ shares held by the Nanda family, will remain unchanged through the Transaction.
# Escorts plans to reduce the remaining 21mn treasury shares without payment of any consideration after completion of the transaction. Following this, the total shares would be at 111mn.
# New share issue and open offer process is expected over Nov’21 to Mar’22 period.
# Kubota will provide quality and affordable basic tractors, by utilizing Escorts’ know-how and Kubota’s accumulated product development knowledge to improve quality and productivity in the R&D, procurement and manufacturing functions. In the fields of distribution and service, Kubota will effectively utilize both companies’ distribution networks by offering a wide range of product offerings, ranging from high-performance tractors to basic tractors.
# Kubota will consider developing and manufacturing basic combine harvesters and construction machineries targeting India and other emerging markets.
# Nikhil Nanda will continue serving as Escorts’ CMD. After the transaction, he will be newly appointed to the position of Senior Managing Executive Officer and General Manager of Value-Innovative Farm and Industrial Machinery Strategy and Operations of Kubota. Also, Nikhil Nanda will be appointed as a Director of Kubota Holdings Europe B.V., a subsidiary which oversees the European machinery business.
# After completion of the Transaction, Kubota Agricultural Machinery India and Escorts Kubota India are to be merged with Escorts.
_Kubota takeover is positive for Escorts, as it will result in technology/new product support for Agri and Construction Equipment divisions. Exports can also receive a boost as a result of widening product portfolio and utilization of global Kubota distribution network._
_Open offer would be for 37mn shares. Assuming Nanda family does not participate, then minimum acceptance ratio can be 51%._
*IMPACT OF FARM LAWS*
*There is concern about FMCG players positioning themselves to gain from the PLI (production-linked incentive) schemes linked to the Farm Laws, reaping in the benefits of better sourcing. Leading food & beverages players like Nestle India, PepsiCo, Coca-Cola, Hindustan Unilever, ITC, Marico, and Britannia, among others, might have some exposure.*
*Sectors Likely To Be Hit Industries due to repealed of Farm Laws includes logistics, cold chain, agri-related, and farm equipment would be impacted the most because they were supposed to be the direct beneficiaries of these laws*
*Logistics companies/cold chain companies, especially those operating in rural geographies, agri-related companies like Adani Wilmar, and farm equipment companies will see a negative impact.*
*Rural consumption-led companies might also see some impact*
*https://www.moneycontrol.com/news/business/markets/farm-laws-scrapped-how-will-the-market-react-on-monday-and-which-sectors-will-be-impacted-7741451.html*
*There is concern about FMCG players positioning themselves to gain from the PLI (production-linked incentive) schemes linked to the Farm Laws, reaping in the benefits of better sourcing. Leading food & beverages players like Nestle India, PepsiCo, Coca-Cola, Hindustan Unilever, ITC, Marico, and Britannia, among others, might have some exposure.*
*Sectors Likely To Be Hit Industries due to repealed of Farm Laws includes logistics, cold chain, agri-related, and farm equipment would be impacted the most because they were supposed to be the direct beneficiaries of these laws*
*Logistics companies/cold chain companies, especially those operating in rural geographies, agri-related companies like Adani Wilmar, and farm equipment companies will see a negative impact.*
*Rural consumption-led companies might also see some impact*
*https://www.moneycontrol.com/news/business/markets/farm-laws-scrapped-how-will-the-market-react-on-monday-and-which-sectors-will-be-impacted-7741451.html*
Moneycontrol
Business News, Economic News, Market News, Share Market News, Indian Stock Market News
Find Latest Business News on Indian Economy, Earnings News including Quarterly & Half Yearly results. Top News on Monetary & Trade Policies, BSE & NSC Notices, Management Interviews & more .
sensex target: Sensex may rally up to 80,000 next year in bull case, predicts Morgan Stanley - The Economic Times - https://m.economictimes.com/markets/stocks/news/sensex-may-hit-80000-next-year-in-bull-case-morgan-stanley/articleshow/87793706.cms?utm_source=whatsapp_pwa&utm_medium=social&utm_campaign=socialsharebuttons
The Economic Times
Sensex may rally up to 80,000 next year in bull case, predicts Morgan Stanley
In bull case, Morgan Stanley believes Sensex could hit 80,000 in 2022, but for that some things need to come along Indias way - India gets included in the global bond indices resulting in near $20 billion inflows, there is no COVID wave 3 or any associated…
*Reliance Industries (RIL IN) – Re – evaluation Means Delay for Deal; No Major Setback for RIL*
*Key Takeaways from Press Release*: - 1) Reliance and Saudi Aramco have mutually determined to re-evaluate the proposed investment in O2C business; 2) The current application with NCLT for segregating the O2C business from RIL is being withdrawn; and 3) Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate.
*Quick Take*: Negative surprise to investors as current price factoring 1) Proposed deal transaction to be completed by CY21/CY22; and 2) Certain cashflow from deal to aid further strengthening of balance sheet.
*Re-Evaluation Means Delay for Deal*:- On occasion of 42nd AGM, RIL chairman announced that “Saudi Aramco and Reliance agreed to form a long-term partnership in Oil to Chemicals (O2C) division. Saudi Aramco will invest in Reliance for a 20% stake in O2C division at an Enterprise Value of US$75bn”. Today’s announcement has postponed this deal for “unknow period”. Investors were under impression that “the proposed deal transaction will be completed during the CY21/CY22”. Based on the signals from latest AGM (dated 24th June 2021) speech of RIL’s Chairman 1) appointment of Mr. H.E. Yasir Al-Rumayyan, (Chairman of Saudi Aramco) on the Board of RIL as an Independent Director; and 2) To achieve accelerated growth, RIL look forward to welcome Saudi Aramco as a strategic partner in O2C business. Along with this, current crude prices near to 7-year high of US$85/bbl strongly supported to investors assumptions that Saudi Aramco will increase capex plan for CY21/CY22 which will accommodate the acquisition of 20% stake in RIL’s O2C business.
*No Major Setback for RIL*:- We do not see re-evaluation of O2C Biz deal as major setback for RIL investors, mainly due to *1) Heavy Debt to Net Cash, Priority Changed*: At the time of deal announcement in Aug’19, RIL’s total outstanding net debt was US$22.2bn (Sept’19) and the management was very keen to raise the funds to lower the debt burden. In last 2 years, RIL acted as “Deal Machine”, balance sheet position is now net cash. Based upon the 2QFY22 numbers, RIL is net cash company with ~US$0.5bn. Debt reduction is no major priority now; *2) Valuation of O2C Biz based on FY24E are 5% Higher Than US$75bn (Without Any Synergies from Deal)*: Proposed deal of O2C business was valued at EV of US$75bn in Aug’19. In current context, Benchmark Singapore GRM is at US$7.6/bbl (avg. 3QFY22TD) much higher than US$5.1/bbl (avg. 2QFY20), looking ahead, we believe GRM to sustain at elevated levels based on the strong demand of petroleum products and recovery in Gasoline, Gasoil, LPG and Jet fuel cracks. Notably, avg. 3QFY22TD Petchem margins are much better than the 2QFY20. Improvement in outlook of GRM and petrochemical margins has led to re-rating of valuation multiple to 8.5x EV/EBITDA compared to 7.5x (in Aug’19) of RIL’s O2C business. Based on consensus EBITDA estimates for period of FY24E, RIL’s O2C business is valued at US$79bn (~EV=Rs930/share), which is 5% higher than proposed deal valuation of US$75bn. Out of this proposed deal, synergies were expected to aid more to balance sheet.
*Key Takeaways from Press Release*: - 1) Reliance and Saudi Aramco have mutually determined to re-evaluate the proposed investment in O2C business; 2) The current application with NCLT for segregating the O2C business from RIL is being withdrawn; and 3) Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate.
*Quick Take*: Negative surprise to investors as current price factoring 1) Proposed deal transaction to be completed by CY21/CY22; and 2) Certain cashflow from deal to aid further strengthening of balance sheet.
*Re-Evaluation Means Delay for Deal*:- On occasion of 42nd AGM, RIL chairman announced that “Saudi Aramco and Reliance agreed to form a long-term partnership in Oil to Chemicals (O2C) division. Saudi Aramco will invest in Reliance for a 20% stake in O2C division at an Enterprise Value of US$75bn”. Today’s announcement has postponed this deal for “unknow period”. Investors were under impression that “the proposed deal transaction will be completed during the CY21/CY22”. Based on the signals from latest AGM (dated 24th June 2021) speech of RIL’s Chairman 1) appointment of Mr. H.E. Yasir Al-Rumayyan, (Chairman of Saudi Aramco) on the Board of RIL as an Independent Director; and 2) To achieve accelerated growth, RIL look forward to welcome Saudi Aramco as a strategic partner in O2C business. Along with this, current crude prices near to 7-year high of US$85/bbl strongly supported to investors assumptions that Saudi Aramco will increase capex plan for CY21/CY22 which will accommodate the acquisition of 20% stake in RIL’s O2C business.
*No Major Setback for RIL*:- We do not see re-evaluation of O2C Biz deal as major setback for RIL investors, mainly due to *1) Heavy Debt to Net Cash, Priority Changed*: At the time of deal announcement in Aug’19, RIL’s total outstanding net debt was US$22.2bn (Sept’19) and the management was very keen to raise the funds to lower the debt burden. In last 2 years, RIL acted as “Deal Machine”, balance sheet position is now net cash. Based upon the 2QFY22 numbers, RIL is net cash company with ~US$0.5bn. Debt reduction is no major priority now; *2) Valuation of O2C Biz based on FY24E are 5% Higher Than US$75bn (Without Any Synergies from Deal)*: Proposed deal of O2C business was valued at EV of US$75bn in Aug’19. In current context, Benchmark Singapore GRM is at US$7.6/bbl (avg. 3QFY22TD) much higher than US$5.1/bbl (avg. 2QFY20), looking ahead, we believe GRM to sustain at elevated levels based on the strong demand of petroleum products and recovery in Gasoline, Gasoil, LPG and Jet fuel cracks. Notably, avg. 3QFY22TD Petchem margins are much better than the 2QFY20. Improvement in outlook of GRM and petrochemical margins has led to re-rating of valuation multiple to 8.5x EV/EBITDA compared to 7.5x (in Aug’19) of RIL’s O2C business. Based on consensus EBITDA estimates for period of FY24E, RIL’s O2C business is valued at US$79bn (~EV=Rs930/share), which is 5% higher than proposed deal valuation of US$75bn. Out of this proposed deal, synergies were expected to aid more to balance sheet.
Vulnerability in PNB server exposed customer data for about seven months: CyberX9
https://www.moneycontrol.com/news/business/vulnerability-in-pnb-server-exposed-customer-data-for-about-seven-months-cyberx9-7744271.html
Download moneycontrol app: http://m.moneycontrol.com/mom
https://www.moneycontrol.com/news/business/vulnerability-in-pnb-server-exposed-customer-data-for-about-seven-months-cyberx9-7744271.html
Download moneycontrol app: http://m.moneycontrol.com/mom
Moneycontrol
Vulnerability in PNB server exposed customer data for about seven months: CyberX9- Moneycontrol.com
Cyber security firm CyberX9 has claimed that the vulnerability provided access to the entire digital banking system of PNB with administrative control
*Amber Enterprises* and its subsidiary IL JIN have received approval under the Production Linked Incentive Scheme for Air Conditioners (components). Amber would be required to make investment of Rs. 300 Cr & IL JIN Rs. 100 Cr. We estimate cumulative revenue of Rs. 5-5.5k Cr to accrue over the 5 year period under both the PLI schemes combined. Positive in long term. (It was already expected that the co would get selected)
Reliance Industries Ltd (RIL) said that it is withdrawing its application to get necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit due to the evolving nature of its business portfolio.
RIL also said it has mutually determined with Saudi Aramco that it would be beneficial for both parties to re-evaluate the proposed investment in the O2C business in light of the changed context.
Marginal Negative
RIL also said it has mutually determined with Saudi Aramco that it would be beneficial for both parties to re-evaluate the proposed investment in the O2C business in light of the changed context.
Marginal Negative
*Economic recovery is expected to gain further traction during the second half of FY22, said India Ratings and Research (Ind-Ra)*.
Accordingly, the rating agency expects the economic recovery to gain momentum on the back of fading impact of the Covid-19 pandemic along with favourable financing and external demand conditions.
Consequently, it has maintained an "improving outlook" on domestic corporates for the second half of FY22.
it said that most sectors would continue to witness a surge in demand post the second Covid wave as they were better prepared than during the first wave.
"The fiscal and monetary measures have backed economic activities by maintaining adequate liquidity. The entities have learnt to make quick structural changes after the first Covid wave and are now better poised to face challenges if subsequent Covid waves appear."
https://english.lokmat.com/international/economic-recovery-to-gain-further-traction-during-h2fy22-ind-ra/
Accordingly, the rating agency expects the economic recovery to gain momentum on the back of fading impact of the Covid-19 pandemic along with favourable financing and external demand conditions.
Consequently, it has maintained an "improving outlook" on domestic corporates for the second half of FY22.
it said that most sectors would continue to witness a surge in demand post the second Covid wave as they were better prepared than during the first wave.
"The fiscal and monetary measures have backed economic activities by maintaining adequate liquidity. The entities have learnt to make quick structural changes after the first Covid wave and are now better poised to face challenges if subsequent Covid waves appear."
https://english.lokmat.com/international/economic-recovery-to-gain-further-traction-during-h2fy22-ind-ra/
Lokmat English
Economic recovery to gain further traction during H2FY22: Ind-Ra | english.lokmat.com
Economic recovery to gain further traction during H2FY22: Ind-Ra: New Delhi, Nov 20 Economic recovery is expected to gain further traction during the second half of FY22, .... Get all latest entertainment & viral stories on english.lokmat.com
Greetings of the Day to all the dear members and my colleagues
In Markets every day we are witnessing good Upmove in Nifty and in stocks too.
Taking position is becoming risky for Intraday and F&O at higher levels. There are concerns towards which side the market will show its move in future.
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In Markets every day we are witnessing good Upmove in Nifty and in stocks too.
Taking position is becoming risky for Intraday and F&O at higher levels. There are concerns towards which side the market will show its move in future.
It's time now to Join Market Wizard Premium Group and also Renew your Membership to avail super gains.
All the members and colleagues who want to continue to be a part of our Premium Family or want to become a part of our Premium Family can do so , by renewing their membership.We have started accepting payment for the month of June and it will be solely on FIRST COME FIRST SERVE BASIS.
All those who make payment between 14th to 23rd Novemver, will be added on Evening of 23rd Novembet, so that they can get benefit of 1 week extra calls as early bird.
Existing members you'll can renew your membership ASAP.
Monthly - 1,500
Quarterly - 4,000
Yearly - 15,000
New members and existing members who make payment and send screenshots after the month end, shall have to compulsorily opt for quarterly or yearly.Monthly membership option is available only if payment is made before month end along with screenshot sent to any of the admins.
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Brokrage Reports
Brokerages on RIL
Jefferies: Buy, TP cut to Rs 2880 from Rs 3000
JPM: Neutral, TP Rs 2575
Nomura: Neutral, TP Rs 2850
GS: Buy, TP Rs 2855
CS: neutral with Tgt price of 2450
CS on Escorts
Neutral, TP Rs 1710
MS on ONGC
OW, TP Rs 235
GS on Coal India
Downgrade to sell, TP Rs 140
Clsa on phoenix Mills maintain OW with Tgt price of 1300
Brokerages on RIL
Jefferies: Buy, TP cut to Rs 2880 from Rs 3000
JPM: Neutral, TP Rs 2575
Nomura: Neutral, TP Rs 2850
GS: Buy, TP Rs 2855
CS: neutral with Tgt price of 2450
CS on Escorts
Neutral, TP Rs 1710
MS on ONGC
OW, TP Rs 235
GS on Coal India
Downgrade to sell, TP Rs 140
Clsa on phoenix Mills maintain OW with Tgt price of 1300
Just in:
Bharti Airtel Hikes Prepaid Tariffs Effective November 26
Entry level prepaid tariffs up 25% from Rs 79 to Rs 99
Airtel hikes prepaid tariffs by approx 20% (other than entry level)
@Reematendulkar @CNBCTV18News @CNBCTV18Live
Bharti Airtel Hikes Prepaid Tariffs Effective November 26
Entry level prepaid tariffs up 25% from Rs 79 to Rs 99
Airtel hikes prepaid tariffs by approx 20% (other than entry level)
@Reematendulkar @CNBCTV18News @CNBCTV18Live
Money Market Update
The rupee ended at 74.23 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 74.27.
The rupee ended at 74.23 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 74.27.
Market Wizard
🎯MARKET WIZARD🎯 📊 NEWSLETTER ISSUE 12 UPDATE ▶️Nelcast Ltd added at 75.8 ▶️D B Corp Ltd added at 95.5 ▶️Reliance Industries Ltd added at 2102 ▶️ITC Industrial Ltd added at 215 ▶️BCG added at 8.4 ▶️Arvind Fashion Ltd added at 147.1 ▶️ BBTC Ltd - SPECIAL…
BCG 109.9❤️❤️❤️
NEW 52 WEEK HIGH
1695.75% RETURNS FROM OUR ORIGINAL BUY RECOMMENDATION OF 6.12 RS (7.65 PRE BONUS RATE)
NEW 52 WEEK HIGH
1695.75% RETURNS FROM OUR ORIGINAL BUY RECOMMENDATION OF 6.12 RS (7.65 PRE BONUS RATE)