Coffee Day zooms 4% & More on Today’s Market

Ramkrishna Forgings scales 52-week high

On August 22, shares of Ramkrishna Forgings surged to a 52-week high of Rs 690 in morning trade following the company's announcement of receiving 'verbal' approval from the National Company Law Tribunal's principal bench for the acquisition of JMT Auto, which has been undergoing corporate insolvency proceedings since February 2022 due to a debt default of Rs 60.27 crore to Axis Bank. Despite starting the day at Rs 669.90 on the NSE, the stock demonstrated a 3.18 percent increase of Rs 20.65 at 10.30am. Impressively, the stock has exhibited a remarkable year-to-date gain of 153.06 percent. In terms of Q1FY24 performance, Ramkrishna Forgings witnessed a 27.61 percent YoY rise in revenue to Rs 892 crore, while post-tax profits grew by 54.90 percent to Rs 79 crore. The April-June quarter also saw a 100 basis point expansion in operating profit margins, reaching 22 percent.

Union Bank of India gains on board approval

In the early hours of August 22, Union Bank of India's shares experienced a nearly 1.5 percent surge as the board granted approval for a fund-raising initiative of up to Rs 5,000 crore through a qualified institutions placement (QIP) of equity shares. The QIP, which commenced on August 21, has set a floor price of Rs 91.10 per share. Additionally, the board has scheduled another meeting on August 24 to determine and endorse the issue price, potentially with a discount, for the equity shares allocated to qualified institutional buyers as part of the offering.

Coffee Day zooms 4%

During early trading on August 22, Coffee Day Enterprises Limited (CDEL) witnessed a rally of over 4 percent, with its shares reaching Rs 43.5, subsequent to the National Financial Reporting Authority (NFRA) imposing a fine of Rs 1.10 crore on auditors involved in a case concerning the diversion of funds from the company's subsidiary. The NFRA's penalty targets three entities, including two individual auditors, for shortcomings in auditing procedures related to CDEL's subsidiary, Tanglin Developments Ltd (TDL). Notably, the fine encompasses a Rs 1 crore charge on audit firm Sundaresha & Associates, which is also subject to a four-year disqualification from serving as auditors or internal auditors for any company.

Tata Power gains on collaboration

In the early trading hours of August 21, the stock price of Tata Power saw an increase of nearly 1 percent following the announcement that its subsidiary, Tata Power Renewable Energy Limited (TPREL), had entered into a power purchase agreement (PPA) for a 9MWp on-campus solar plant with Tata Motors Limited Pantnagar plant in Uttarakhand. Highlighting its significance, the company stated that this solar facility would stand as the largest of its kind within the state. The project is expected to be operational within six months from the PPA signing date and will encompass a combination of rooftop and ground-mounted units for its installation.

Conclusion

On August 22, 2023, the Indian stock market closed with marginal losses as both benchmark indices, the Sensex and Nifty, experienced slight declines. The Sensex closed down 0.03% at 65,199.23, while the Nifty settled at 19,389.50 after a 0.02% dip. The broader market also saw a downturn, with the BSE Midcap Index falling 0.22% and the BSE Smallcap Index declining 0.16%. Across all sectors, there was a widespread sell-off, notably in IT, tech, and consumer discretionary sectors. Notable market movements included Ramkrishna Forgings reaching a 52-week high on the announcement of 'verbal' approval for the acquisition of JMT Auto, Union Bank of India's nearly 1.5 percent share gain on board approval for a fund-raising initiative, Coffee Day Enterprises Limited (CDEL) surging over 4 percent due to a fine imposed by NFRA, and Tata Power's stock price rising nearly 1 percent on a power purchase agreement for a significant solar project. These developments highlight the dynamic interplay of factors driving stock market fluctuations, from corporate events to regulatory decisions and market sentiment.

Source - Moneycontrol