Stock Market Update: Reliance Infra, VST Industries, IDFC First Bank, NTPC, Vodafone Idea, Key Stock Movements on September 20, 2024
Several stocks captured the attention of investors in the Indian market, particularly Reliance Infrastructure, VST Industries, IDFC First Bank, NTPC, and Vodafone Idea. Each of these companies has made significant announcements that could impact their stock performance in the coming days.
Main Points
Reliance Infra: Major Fundraising Plans
Reliance Infrastructure, led by Anil Ambani, is making headlines with its ambitious plans to raise a total of ₹6,014 crore. This will be achieved through a two-step process: an initial preferential issue of ₹3,014 crore followed by a Qualified Institutional Placement (QIP) to raise an additional ₹3,000 crore. The company plans to issue up to 12.56 crore shares at a price of ₹240 each.
The funds raised will be directed towards expanding business operations and meeting long-term working capital needs. This move is expected to increase Reliance Infra’s net worth from ₹9,000 crore to over ₹12,000 crore. The company operates across various sectors including power distribution in Delhi and defense equipment manufacturing.
Notably, the preferential issue will see participation from prominent investors such as Mathew Cyriac and Nimish Shah. Together, they will invest approximately ₹1,200 crore for a minority stake in the company. Ambani’s Risee Infinity will also contribute ₹1,814 crore to this initiative.
NTPC: Significant Investment in Power Projects
NTPC has also made waves in the market by approving a substantial investment of ₹9,701 crore for the Sipat Super Thermal Power Project (Stage-III), which includes one unit of 800 MW capacity. This decision aligns with NTPC’s ongoing efforts to enhance its power generation capabilities and support India’s growing energy needs.
IDFC First Bank: Leadership Continuity
In banking news, IDFC First Bank announced that the Reserve Bank of India has approved the re-appointment of V Vaidyanathan as Managing Director and CEO for another three years starting December 2024. This continuity in leadership is expected to bolster investor confidence as Vaidyanathan has been instrumental in steering the bank towards profitability and growth since its inception.
VST Industries is witnessing notable trading activity as Radhakishan Damani sold an additional 1 lakh shares at an average price of ₹439.05 per share. Meanwhile, Reliance Mutual Fund acquired 85,000 shares at a slightly higher average price of ₹439.96 per share. The fluctuating ownership stakes in VST Industries indicate ongoing interest from major investors.
Vodafone Idea: Legal Setbacks Impact Stock
Vodafone Idea faced a challenging day on September 19 when its stock plummeted by 19% following the Supreme Court’s rejection of petitions aimed at correcting alleged errors in the adjusted gross revenue calculations. This legal setback has raised concerns about the company’s financial stability and future operations.
Market Overview
The Indian stock market remains sensitive to these developments as investors react to news and announcements from major companies. Reliance Infra’s fundraising efforts are particularly noteworthy as they signal confidence in future growth despite previous challenges faced by the company.
As these stocks continue to evolve with new information and market dynamics, investors will be closely monitoring their performance over the coming weeks.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
