Stocks to Watch: Religare, Mahindra Lifespace, Eicher, Mankind Pharma, Adani Ports, Lupin

Religare Enterprises: The company's shareholders have rejected its plans to invest in its subsidiary, MIC Insurance Web Aggregator, and to amend the Articles of Association. Religare Enterprises had initiated an e-voting process for these special resolutions. However, the scrutiniser's report revealed that the votes in favor did not meet the necessary threshold for approval, leading to the defeat of the resolutions. In the voting process, out of the 62% of the total shareholders who participated, 74% opposed the proposed investment in MIC. Although 68% of the participating shareholders supported the amendment to the Articles of Association, the scrutiniser reported that 14 members, who held 6.98 crore shares, abstained from voting. Additionally, one member cast 2.07 lakh fewer votes than his shareholding. These votes were not considered valid, as per the scrutiniser's report.

Mahindra Lifespace Developers: The company has announced plans to invest approximately ₹6,000 crore in its residential business over the next four years. This investment is part of a strategy to boost its business growth, aiming to quintuple its residential business from ₹2,268 crore to ₹8,000 crore by the fiscal year 2028. During this period, the company plans to launch projects with a total gross development value (GDV) of ₹45,000 crore.

Eicher Motors: The maker of Royal Enfield motorcycles has established a subsidiary in the Netherlands. This move comes in response to the challenges posed by Brexit in transporting parts to mainland Europe. The company is currently in discussions to set up a warehouse, possibly in Germany or France, to expedite the delivery of non-motorcycle items such as spare parts and branded merchandise. Arun Gopal, the international head of Royal Enfield, stated in an interview that Brexit has complicated the transportation of materials between the UK and Europe. He also pointed out that the UK's geographical distance from certain parts of Europe necessitated a warehouse that could more efficiently serve those regions.

Mankind Pharma: Beige Ltd, an affiliate of private equity firm ChrysCapital, is expected to divest up to 2.90% of its holdings in Mankind Pharma Ltd via block transactions. The shares are likely to be offered at a price range of ₹2,103- ₹2,214, as per insiders. The transaction is pegged at ₹2,460 crore, based on information from several individuals who are aware of the matter. Beige Ltd currently possesses a 2.99% stake in Mankind Pharma Ltd. Notably, the offer price for these block transactions is slightly lower than the current market price (CMP), with a discount ranging from 0-5%, according to knowledgeable sources.

Adani Ports and Special Economic Zone: The company announced on Tuesday its plans to acquire a 95% stake in Gopalpur Port in Odisha in a deal with an equity value of ₹13.49 billion ($161.74 million). The acquisition will involve Adani Ports buying a 56% stake from the real estate giant Shapoorji Pallonji Group, and a 39% stake from Orissa Stevedores. The total enterprise value of the transaction is estimated to be ₹30.80 billion.

IIFL Finance, JM Financial Products: The Reserve Bank of India (RBI) has initiated the process of appointing auditors for a special audit of IIFL Finance and JM Financial Products due to regulatory violations. The central bank has released two separate tenders for the appointment of auditors to conduct special audits of these two non-banking finance companies (NBFCs). As per the tender document, audit firms that are on the Securities and Exchange Board of India (Sebi)'s panel for forensic audits are eligible to participate in the tender process. The deadline for bid submission is April 8, and the selected firms will commence work on April 12, 2024.

Tech Mahindra: The IT services and consulting firm has announced plans to consolidate its wholly-owned subsidiary, Born Group, with its parent company, Tech Mahindra (Americas) Inc. This merger was approved by both entities on Friday, March 22, 2024. The Pune-based company disclosed in a regulatory filing that the merger plan for Born Group, Inc., a wholly-owned subsidiary, with its parent company, Tech Mahindra (Americas) Inc., a wholly-owned material subsidiary, was approved by the respective companies. The objective of this consolidation is to streamline business operations, minimize operational costs, and mitigate compliance risks.

Vedanta: The mining conglomerate has announced plans to invest $6 billion ( ₹50,000 crore) across various sectors, including aluminium, zinc, iron ore, steel, and oil and gas. The company's goal is to increase its annual EBITDA by at least $2.5 billion ( ₹20,750 crore), as stated by executives during an investors meeting. The company has disclosed a pipeline of over 50 active projects and expansions designed to drive growth. These initiatives are expected to generate additional revenue of more than $6 billion. Furthermore, Vedanta anticipates an increase in EBITDA from the projected $5 billion for the current fiscal year ending March 31, to $6 billion in the next fiscal year, and potentially reaching $7.5 billion by FY27.

Hinduja Global Solutions: The business process management company announced on March 22 that it has agreed to sell its optical fibre assets to its subsidiary, Indusind Media and Communications Ltd (IMCL), for a sum of ₹208.04 crore. The company stated in a stock exchange filing that it has entered into an agreement for this transaction. IMCL, which is a subsidiary of Hinduja Global Solutions Ltd, has a 77.55% share capital held by the latter, making it a related party. Despite this, the transaction is being carried out at arm's length. To ensure the fairness of the transaction, an independent valuation report was procured, the company further added.

ICICI Securities: On March 22, ICICI Securities said that it has received an administrative warning from the Securities and Exchange Board of India (SEBI) concerning its Merchant Banking operations. The warning was delivered via an email dated March 22, 2024. The warning is linked to SEBI's inspection of ICICI Securities' Merchant Banking activities' books and records, which took place in December 2023. Despite the warning, ICICI Securities has assured that it will not affect its financial, operational, or other activities in any way.

Lupin: On March 22, Lupin announced its plans to segregate its trade generics business in India and shift it to Lupin Life Sciences Ltd (LLSL), a fully owned subsidiary of the company. The estimated cost of this transfer is between ₹100-120 crore. The Board of Directors of Lupin Limited approved this plan in a meeting held on March 22, 2024. The company intends to carve out its trade generics business in India and transfer it to LLSL on a slump sale basis, as per a stock exchange filing by Lupin.