Finvezto Daily Market Bytes, 24 Dec 2024
BGDL Share Price Fraud; Adani's Aviation Ambition; BSNL on the charge, JIO losing
In today’s edition, we cover:
BGDL Share Price Fraud
Adani's Aviation Ambition
BSNL on the charge; JIO losing
Key Stock Updates
Here’s a quick market snapshot before we start. GIFT Nifty indicates a flat start for the Indian Markets.
BGDL Share Price Fraud
SEBI freezes ₹271.6 crore illegal gains and suspends trading in Bharat Global Developers after uncovering financial fraud.
Just imagine turning ₹49 lakh into ₹70 crore in a year. One preferential shareholder did exactly that with BGDL shares. This raised eyebrows and led to SEBI investigation.
BGDL’s management changed hands in Dec 2023, followed by a suspicious move - 41 individuals suddenly owned 99.5% of the company through preferential allotments.
BGDL started claiming partnerships with industry giants.
A ₹300 crore deal with Reliance Industries? Never happened.
A deal with Tata Agro? That company doesn't even exist.
Yet the share price kept climbing.
The financials looked even more suspicious. Negligible revenue for years, then suddenly ₹271 crore in sales by 2024. Cash flows remained negative.
A textbook case of stock price manipulation.
A bonus issue and stock split were planned for December 26, but SEBI stepped in just in time.
Remember, when returns seem too good to be true, they probably are.
Be cautious while investing in micro-caps and nano-caps.
Adani's Aviation Ambition
Adani Defence targets aviation sector growth by acquiring Air Works, India's largest MRO (Maintenance, Repair & Overhaul) provider, for ₹400 crore.
Think of Air Works as your neighborhood bike repair shop, but for aircraft.
Air Works takes care of routine aircraft maintenance to complete aircraft overhauls. It is approved by Aviation Authorities in 20+ countries.
Why this acquisition now?
India's Aviation sector is the world's 3rd largest aviation market. We are about to witness 1500 new aircraft joining our skies in the coming years. All these planes will need somewhere to get their regular check-ups and repairs.
Air Works has 1300 skilled personnel and 3 major facilities in Hosur, Mumbai, and Kochi. They work on everything from commercial jets to military aircraft, making them a perfect fit for Adani's aviation ambitions.
From Airports to MROs, Adani is building India's aviation backbone.
BSNL on the charge; JIO losing
BSNL & Airtel added more mobile users in October while Jio and Vi lost users.
After adding ~9 lakh mobile customers in September, now BSNL adds ~5 lakh customers in October.
Who would have thought? In a month where industry leader Jio lost 37 lakh subscribers, BSNL quietly added ~5 lakh customers.
Among Private players, only Airtel gained 19 lakh subscribers in October.
Despite the previous 2 month's setbacks, Jio remains the undisputed market leader with 460 million subscribers. Airtel follows at 278 million, while Vi serves 125 million.
BSNL, though much smaller at 32 million, shows it can still attract customers.
The broadband segment tells a different tale though. Jio leads with 6.85 lakh new landline connections, followed by Airtel's 2.2 lakh. BSNL and Vi both lost ground in broadband, shedding 35,953 and 16,675 subscribers respectively.
Key Stock Updates
New Orders
Sterling and Wilson Renewable Energy secures ₹1,200 Cr domestic solar project order for 500 MW.
Partnerships/Investments/Acquisitions
PG Electroplast signs agreement with Whirlpool to manufacture select branded semi-automatic washing machines.
NHPC signs MoU with Bihar for ₹5,500 Cr investment in 1,000 MW solar power project.
HG Infra's arm signs battery storage agreement with NTPC for 185 MW procurement.
TVS Emerald acquires 12-acre Chennai plot with ₹2,800 Cr revenue potential.
Terminal Investment to invest ₹20,000 Cr for developing Vadhvan Port ecosystem.
Ashoka Buildcon plans ₹9,000 Cr investment in Bihar for green hydrogen plant.
Core Business Updates
Vraj Iron and Steel begins commercial operations of new sponge iron plant in Bilaspur.
Bansal Wire Industries launches new Hose Wire product in industrial category.
Indian Oil approves ₹4,382 Cr investment for Odisha yarn manufacturing project.
Waaree Energies to invest ₹3,500 Cr in electrolyser and battery business.
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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.