LIC must ensure that the aggregate holding in HDFC Bank does not exceed 9.99% of the paid-up share capital or voting rights of the bank at all times.
HDFC Bank on Thursday said in a regulatory filing that the Reserve Bank of India (RBI) has granted approval to Life Insurance Corporation (LIC) to acquire a 9.99% stake in the private sector lender.
“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India (RBI) vide its letter dated January 25, 2024 addressed to Life Insurance Corporation of India (LIC), has accorded its approval to LIC for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank said in its regulatory filing.
The approval has been granted with reference to the application made by LIC to the central bank. The approval is subject to the conditions including compliance with the provisions of the Banking Regulation Act, 1949, the RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023, provisions of the Foreign Exchange Management Act, 1999, and provisions of the regulations issued by Securities and Exchange Board of India.
LIC has been advised by the RBI to acquire the aforesaid major shareholding in the bank within a period of one year, i.e. by January 24, 2025. Further, LIC must ensure that the aggregate holding in the bank does not exceed 9.99% of the paid-up share capital or voting rights of the bank at all times.
Shares of HDFC Bank closed 1.4% lower on Thursday, while the broader NSE Nifty was down 0.5%.
For the October-December period, HDFC Bank reported a 2.65 per cent rise in consolidated net profit of ₹17,258 crore against ₹16,811 crore in the preceding September quarter.
The largest private sector lender, which merged mortgage lender parent HDFC into itself in July, reported a net profit of ₹16,372 crore against ₹15,976 crore in the quarter-ago period on a standalone basis.
“HDFC Bank reported a mixed quarter,” according to a report by Motilal Oswal Research.
Its core net interest income grew to ₹28,470 crore during the quarter, while the other income stood at ₹11,140 crore, according to exchange filings.
On the asset quality front, the bank registered an improvement in the gross non-performing assets ratio at 1.26 per cent against 1.34 per cent in the quarter-ago period.
Life Insurance Corporation of India stock Analysis
| 1 Week | 2.22% |
| 3 Months | 48.47% |
| 6 Month | 44.47% |
| YTD | 8.97% |
| 1 Year | 29.21% |
- 30%Balanced risk
- Strong Sell
- Sell
- Hold
- Buy
- Strong Buy
| Ratings | Current | 1 W Ago | 1 M Ago | 3 M Ago |
|---|---|---|---|---|
| Strong Buy | 10 | 10 | 10 | 8 |
| Buy | 2 | 2 | 3 | 3 |
| Hold | 4 | 4 | 3 | 4 |
| Sell | 1 | 1 | 1 | 1 |
| Strong Sell | 0 | 0 | 0 | 0 |
| Total | 17 | 17 | 17 | 16 |
Cipla plans to launch diabetes and obesity drugs
The Hyderabad-based pharma giant doesn’t see any major hindrance from the Red Sea conflict other than some rise in costs, which the company said it also witnessed in the current quarter.
Cipla Ltd is preparing to launch drugs for diabetes and obesity in India, other emerging markets, and the US, as it sees a huge opportunity for these formulations, a top official of the pharmaceutical company said.
“GLP-1 (Glucagon-like peptide 1) for diabetes and obesity is a very big transformation, equivalent to statins for cholesterol control. And I’d like to believe there are 100 million diabetics (patients) in this country (India) and there are several that are not diagnosed. And I think if we were to even cover 20 or 25% of that population by using GLP-1, it’s going to be a very significant opportunity,” said Umang Vohra, company’s MD and global CEO in a press briefing.
“We will be looking for India, emerging markets, and the US [for Semaglutide]. We may not be the first wave launcher in the US, but we have plans.”
He said the company sees a very huge potential in India for its new drugs as the obesity will continue to be a concern due to the lifestyle issues like stress and less exercise. “In addition, we as a population are predisposed to certain metabolic disorders where you know I think the GLP ones play a very significant role,” he added.
According to the National Family Health Survey (NFHS), the proportion of men who are obese/overweight has increased from 9.3% in 2006 to 22.9% in 2021. For women, the increase has been from 12.6% to 24% during the same period.
As per a report from IMARC Group, a market research company, India’s weight management market size reached ₹1,514.4 crore in 2022, and it is projected to reach ₹2,762.7 crore by 2028, demonstrating a noteworthy compound annual growth rate, or CAGR, of 10.6% during the period from 2023 to 2028. While India’s diabetes care drugs market size is estimated at $1.7 billion in 2024, and is expected to reach $2.01 billion by 2029, growing at a CAGR of 3.5% during 2024-2029, according to Mordor Intelligence, a market intelligence and advisory firm.
The company is also reported to be in dialogue with multinational corporation Eli Lilly for its GLP-1 class of drugs. Vohra said that Ei Lilly remains a very strong partner for the company. “The decision for them to partner any asset is purely theirs. And when they make that decision, obviously, Cipla would like to present its credentials as a strong partner but as of now, we don’t have anything to report or talk about,” he added.
The Hyderabad-based pharma giant doesn’t see any major hindrance from the Red Sea conflict other than some rise in costs, which the company said it also witnessed in the current quarter.
The YK Hamied-backed company reported a consolidated net profit of ₹1,055.90 crore for the December quarter, a 31.82% rise over the corresponding quarter of last year, as per regulatory filings. Revenue during the quarter was up 13.66% year-on-year to ₹6,603.81 crore.
The result was in line with Bloomberg’s poll of analysts tracking the company. Analysts expected the company to post revenue of ₹6,522 crore and profit of ₹1,058 crore.
