Stocks to Watch: BHEL, IDFC First Bank, Dr. Reddy’s, REC, Chalet Hotels, Alkem

Bharat Heavy Electricals, Adani Power: The state-owned company has secured a contract from Adani Power to establish the 2×800 MW Raigarh Phase-II Thermal Power Plant in Raigarh, Chhattisgarh, according to an exchange filing. BHEL stated that the total cost of the project, excluding GST, is estimated to be ₹4,000 crore. Under the terms of the contract, BHEL will provide equipment such as a Boiler, Turbine, and Generator, and oversee the erection and commissioning of the 2×800 MW power project, which is based on supercritical technology. The first unit is expected to be delivered within 31 months of the contract execution, while the second unit is scheduled for delivery within 35 months.

IDFC First Bank: Cloverdell Investment, a Warburg Pincus affiliate, is considering divesting its stake in the private lender, IDFC First Bank. As per a report by CNBC-TV18, the company might offload its entire 2.25 percent stake through block deals on March 28. The expected offer size is around ₹1,191.40 crore, with the company planning to sell approximately 15.9 crore shares. The base price is set at ₹75 per share, which represents a 4 percent discount to the current market price.

Dr. Reddy’s: The Hyderabad-based pharmaceutical giant has unveiled an exclusive alliance with Sanofi Healthcare India to boost the promotion and distribution of Sanofi’s vaccine brands throughout India. The alliance will encompass paediatric and adult vaccine brands such as Hexaxim, Pentaxim, Tetraxim, Menactra, FluQuadri, Adacel, and Avaxim 80U, which collectively recorded sales of approximately ₹426 crore ($51 million) according to IQVIA MAT February 2024. Sanofi has confirmed that it will retain ownership, continue manufacturing, and import these vaccines to India.

Chalet Hotels: On March 27, the board of directors of Chalet Hotels approved a Qualified Institutional Placement (QIP) to raise funds up to ₹1,200 crore. In a filing to the stock exchange, Chalet Hotels stated that the floor price for the QIP is set at ₹780.76 per equity share. However, the company has the discretion to offer a discount of up to 5 percent on this price. The issue price will be ₹755 per share.

REC: On March 27, the Board of REC Ltd gave its approval for the PSU firm’s comprehensive market borrowing programme, which is valued at ₹1.6 lakh crore for FY25. The Board sanctioned a market borrowing programme of ₹1.45 lakh crore for FY25, which will be executed through domestic bonds and debentures. Additionally, the Board gave the green light for securing a short-term loan of ₹15,000 crore from various sources such as banks, financial institutions, NBFCs, and commercial papers.

Alkem Laboratories: The pharmaceutical company said on March 27 that its manufacturing facility in Baddi was inspected by the US Food and Drug Administration (USFDA) from March 19 to March 27, 2024. Further, the company said it received a Form 483 with ten observations, as per a filing to the stock exchange. The company stated, “USFDA conducted an inspection at our Baddi manufacturing facility from March 19 to March 27, 2024. We received a Form 483 with ten observations at the end of the inspection.”

Zydus Lifesciences: The company announced on March 27 that the United States Food and Drug Administration (US FDA) has issued four observations regarding the company’s injectable facility in Ahmedabad. Zydus Life disclosed in an exchange filing that the US FDA conducted an inspection of the injectable facility from March 18th to March 27th. The inspection took place at the SEZ Onco Injectable manufacturing plant, as per the statement. The company further clarified that there were no observations related to data integrity as a result of the inspection. In the press statement, it was added that “The Company will work closely with the USFDA to address the observations.”

Bajaj Finance: Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, has begun initial discussions with multiple investment banks regarding a potential initial public offering (IPO). The IPO is expected to value the company between $9 billion and $10 billion, in accordance with regulatory standards, as stated by three individuals privy to the matter. As per the existing regulatory timeline set by the RBI, Bajaj Housing Finance is required to list by September 2025.

Paytm: One97 Communications Ltd, the parent company of Paytm, is reportedly on the verge of bringing HDFC Bank on board as the third partner for merchant migration, according to a Moneycontrol report. Paytm has already enlisted Axis Bank and Yes Bank as merchant acquisition partners, both of which became operational on the Paytm UPI platform on March 15. The report suggests that HDFC Bank and SBI are expected to commence operations this week as payment service provider (PSP) banks for Paytm’s third party application provider (TPAP) business.

Life Insurance Corporation of India: LIC announced on Tuesday that it has received a demand notice from tax authorities for an approximate amount of ₹178 crore due to the underpayment of Goods and Services Tax (GST) spanning two fiscal years. The Additional Commissioner of Central GST & Central Excise in Jamshedpur has issued a communication/demand order to LIC for interest and penalty, as per the regulatory filing by LIC. The demand notice pertains to the premature utilization of Input Tax Credit under the reverse charge mechanism.