Sensex Trades Marginally Higher; Dow Futures Up By 86 Points

Anticipating strong demand traction, the company has embarked on a capacity expansion plan which is expected to be completed by FY21 and would start contributing to the topline by FY22.

The company, on December 1, had announced the commencement of construction of Divi's Laboratories Unit-III facility (the project) at Kona Forest, Ontimamidi village, Andhra Pradesh from December 7, 2020.

The company said it will be investing about Rs 15 billion out of its internal accruals in a phased manner for the implementation of its Unit-III facility. The operations are likely to commence within 12 to 18 months for the first phase of the Project.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Divi's Laboratories' share price was trading up by 2.7% on the BSE.

Moving on to news from the banking sector...

IndusInd Bank Promoters Get 1 Month Extension To Infuse Remaining Capital

Private lender IndusInd Bank said the market regulator has granted a one-month extension for its promoters to infuse residual capital in lieu of conversion of warrants, issued to them last year, worth over Rs 26.9 billion into equity.

IndusInd Bank had issued convertible warrants to its promoters - IndusInd International Holdings (IIHL) and its subsidiary IndusInd (IL) on July 6, 2019, under the composite scheme of arrangement for a total amount of Rs 26.9 billion for 15.7 million share warrants.

The promoters had paid Rs 6.7 billion towards the warrant subscription for 25% of the warrant price of Rs 1,709 per share.

An amount of Rs 20.2 billion was to fall due on January 5, 2021, for the conversion of warrants into equity shares. In view of the present uncertain times due to disruption caused by the COVID-19 pandemic, the bank had, at the request of IIHL and IL, approached the market regulator for an extension in time for payment of the balance amount.

The market regulator then granted an extension of one month for the subscription to the warrants, i.e., until February 4, 2021, to complete the said conversion into equity.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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