- PSU banks: Moody's Investors Service has downgraded ratings of four state-run banks citing deteriorating quality of loans following the coronavirus pandemic. The four government banks include Bank of Baroda (BoB), Bank of India (BoI), Canara Bank, and Union Bank of India (UBI). The creditworthiness of the four lenders was reduced to B1 from Ba3 earlier. The outlook of these four banks is negative. However, the global ratings agency affirmed long-term local and foreign currency deposit ratings of Punjab National Bank (PNB) at Ba1 and its BCA at b1. Moody's changed PNB's ratings outlook to negative from stable.
- Vodafone-Idea Ltd: The company’s board has approved raising up to Rs15,000cr via NCDs and up to Rs15,000cr through issue of equity shares or securities convertible to equity shares. Total raising of funds shall not exceed Rs25,000cr. Proposals to be taken for approval at the company's AGM on September 30. Additionally, the company said it would make a strategic announcement on September 7 at 11:45am through a virtual platform.
- Reliance Industries Ltd: The company released a detailed plan on demerging its oil-to-chemicals business, six months after the company announced the proposal. Per the scheme of arrangement, the entire oil-to-chemicals assets will be spun into a separate unit, by transferring some of RIL's refining, petrochemicals, fuel retail & aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities. In a statement to the stock exchanges on Sunday, the company said that the assets will be held by a unit of Reliance with no change in their ownership.
- Endurance Technologies: Based on an eligibility certificate from the Maharashtra government, the company has stated that it is eligible for extension in export incentives and is entitled to receive Rs466.4cr under the scheme. Of the eligible incentives, it has already accounted for Rs128.8cr until Q1FY21.
- Allcargo Logistics Ltd: The company’s board has approved its delisting proposal. The floor price for the delisting has been set at Rs92.58 per share, which is a 22% discount to Friday's closing price.
- Jubilant Industries Ltd: The company has approved sale of land and building of manufacturing unit at Nimbut, Pune for Rs12.35cr, and plant and machinery for Rs0.95cr to Jubilant Life Sciences.
- ADF Foods Ltd: The company’s board has approved allotment of 17.5 lakh convertible warrants to promoters and two lakh convertible warrants to non-promoters at Rs362 per warrant. The total issue amounts to Rs70.59cr.
- South Indian Bank: The lender’s board has approved raising Rs750cr through issue of securities and Rs500cr via debt. The board has also approved increasing the foreign investment limit under NRI / Person of Indian Origin category to 24% of the bank's paid-up share capital.
- IDFC First bank: Rajiv Lal resigns as part-time non-executive chairman of the bank citing prolonged health issues.
- Happiest Minds IPO: The company’s initial public offer will open for subscription on 7th September, 2020. The issue will be open for three trading days, from 7th September to 9th September, and trading will be available from 10:00 am to 5:00 pm. The price band of the issue has been fixed at Rs165-166 per share. At the upper end of the price band, the IPO will fetch Rs702cr. The Rs702cr initial public offer consists of fresh issue of 0.67cr shares and offer-for-sale of 3.56cr shares by the promoters. A retail investor can bid for a minimum one lot, amounting to 90 shares and in multiples of 90 shares thereafter to a maximum 13 lots. The shares will have a face value of Rs2 per share, and be listed on the BSE and the NSE.
Let us look at the developments which took place on the global front
U.S. stocks ended in losses on Friday after a volatile session as tech companies witnessed some profit-taking. The Dow Jones Industrial Average closed 159.42 points lower, down 0.6%, at 28133.31, after falling 628 points at its session low. The S&P 500 index dropped 28.10 points, or 0.8%, to finish at 3,426.96, while the Nasdaq Composite Index declined 144.97 points, or 1.3%, to end at 11,313.13.
Data from the Labor Department showed that the US economy regained 1.4 mn jobs in August and the unemployment rate fell to 8.4% from 10.2%. Private-sector payrolls rose by a smaller 1 mn. Hours worked rose 0.1 hour to 34.6 hours. The increase in hiring in July was revised down slightly to 1.73 mn.