Finvezto Daily Market Bytes, 18 Dec 2024
ITC Hotels Demerger; Ola “Dash”es into Q-Comm; Ambuja Cements Merger Masterplan & Key Stock Updates
In today’s edition, we cover:
ITC Hotels Demerger
Ola “Dash”es into Q-Comm
Ambuja Cements Merger Masterplan
Key Stock Updates
Here’s a quick market snapshot before we start. GIFT Nifty indicates a lower opening for the Indian Markets.
ITC Hotels Demerger
ITC sets January 1, 2025, as official date for hotel business demerger after securing all regulatory approvals including NCLT clearance.
Parent ITC retains 40% stake in the demerged entity, with remaining 60% distributed to existing shareholders.
ITC Hotels is ~5% of the overall business of ITC.
Despite its small share of overall revenue, the hotels business has been doing well.
In Q2 FY25, the hospitality segment registered revenue of Rs. 789.16 crore, up 16.9% year-on-year
The demerger positions ITC Hotels for focused growth trajectory with optimized capital structure potentially unlocking shareholder value.
Ola “Dash”es into Q-Comm
Ola jumps into the 10-minute delivery arena.
It is bringing back the “Dash”, this time for lightning-quick food delivery.
That too with zero delivery fees and deals from popular joints like Eatfit and Freshmenu.
I think we have had at least 4 companies announcing foray into the Q-Comm space in the last 7 days.
MagicNow is joining too, promising deliveries within 2km across 6 major cities.
Now, the question isn't whether quick commerce will work. It is about who will win this game.
Ambuja Cements Merger Masterplan
Ambuja Cements integrates Sanghi Industries and Penna Cement into its fold solidifying Adani Group's Cement Expansion strategy.
The deal structure - Sanghi shareholders get 12 Ambuja shares for every 100 they hold, while Penna stakeholders receive ₹321.50 cash per share.
All this wraps up in about 9-12 months, once the approvals come through.
This merger is part of Adani's larger cement story that began with that ₹51,000 crore Holcim deal.
With the ₹8,100 crore Orient Cement acquisition & recent merger announcement they are gunning for ~140 MT yearly capacity by FY28.
That puts them in striking distance of market leader UltraTech's 156 MTPA.
Currently, Adani Cement is the second-largest cement producer in India with an annual capacity of 89 MTPA.
Adani has built a cement empire out of nowhere.
Key Stock Updates
New Orders
Asian Energy Services secured ₹200 crore BOOT contract from Assam Gas
Genesys won ₹56 crore project for West Bengal land records digitization
Reliance Power won 930MW solar project with 465MW storage from SECI
Va Tech Wabag lost $317 million Saudi desalination plant contract due to cancellation
Partnerships, Investments & Acquisitions
Minda Corp forms new joint venture with Taiwan's HSIN Chong Machinery to locally produce sunroofs & closure technologies for passenger vehicles in India.
Mahindra Krish-e partners with Coromandel for nationwide drone spraying services
IMFA partners with JSW Green Energy for 70MW hybrid power
Cellecor Gadgets partners with Epack Durable for AC manufacturing
Ambuja Cements approves merger with Sanghi Industries and Penna Cement
Core Business Updates
Aurobindo Pharma's API unit receives two procedural observations from US FDA
Birla Estates acquires 70.92 acres in Boisar for ₹104.3 crore
RBI lifts business restrictions on ECL Finance and Edelweiss ARC
Corporate Actions
Glenmark Life Sciences changes name to Alivus Life Sciences
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.