IT stocks are trading strong led by HCL Infosys and Infosys Limited. According to a leading financial daily, Tech Mahindra acquires a 51% stake in Comviva Technologies which is a Bharti group owned mobile Value Added Service (VAS) provider. For acquiring this, Tech Mahindra will be spending Rs 2.6 bn. The new entity formed will be named Mahindra Comviva in which Bharti group would hold 20% equity apart from Tech Mahindra's 51%. Remaining stake will be held by private equity investors and employees. Tech Mahindra will make an upfront payment of Rs 1.25 bn while the balance will be paid over 5 years. With this, Tech Mahindra has entered into the space of mobility products.
Aluminium stocks are trading in the red led by Hindalco and National Aluminium Company Limited (Nalco). According to a leading financial daily, Hindalco Industries has achieved financial closure for Rs 98 bn debt for its greenfield smelter project at Lapanga in Odisha in one of the largest syndication in recent times. The project having total cost of Rs 131 bn has a debt equity ratio of 75:25. The debt is priced at 1.25% higher than State Bank of India's (SBI) base rate and has a tenor of 12.5 years. The rate currently works out to be 11.25% per annum. The Aditya Aluminium smelter has a proposed aluminium production capacity of 359,000 tonnes backed by captive power plant of 900 megawatt (MW). The plant is expected to be among the lowest cost producers globally. The company has in recent months successfully tapped both the domestic bond market as well as the loan market to meet its financing needs.