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GST collections for July 2021 came in at Rs.1,16,393 crore, crossing the Rs.1.1 trillion mark once again giving a clear indication that the recovery post COVID 2.0 was underway. This marks a 3-month high in inflows and sharply higher than Rs.92,489 crore in Jun-21. GST collections had touched a record of Rs.1,41,000 crore in April. The signals were there with e-way bill generation up 50% MOM at 1.8 million. For Jul-21, revenues from imports were 36% higher, revenues from domestic transactions were up 32%.
Foreign portfolio investors pulled out Rs.11,308 crore from Indian equities in the month of Jun-21 as rising COVID cases, high oil prices and a strong dollar weighed on EM sentiments. This is in contrast to a sum of Rs.17,215 crore infused in June. However, this does not include the inflows into IPOs, which have been huge in most IPOs. In terms of cues, the FPIs will be watching the trajectory of the first quarter results as well as indications coming from the monetary policy on 06 August to get a picture of rates and liquidity.
Maruti Suzuki dominated the domestic car market selling 1.36 lakh PVs in Jul-1. IN addition, Maruti also exported 21,224 units in Jun-21. This is nearly 40% higher on MOM basis. Maruti exports were up a little over 3-fold on yoy basis. Among other key players, Hyundai Motors sold 48,042 PVs in Jul-21 with a major boost from the Creta as well as solid response to the newly launched Alcazar. Even Tata Motors recorded 92% growth in domestic PV sales during Jul-21 at 51,981 units compared to 27,024 units sold in July 2020.
Venugopal Dhoot has moved the NCLAT against 08 June order of the National Company Law Tribunal (NCLT), approving the bid of Twinstar, part of Vedanta group, for a sum of Rs.2,962 crore. Dhoot had submitted a zero-haircut plans and wants the NCLAT to direct NCLT to consider that plan as it would mean higher yield for creditors. Dhoot pointed out that the decision to separate oil assets and the consumer assets led to low price realisation. According to Dhoot, the recovery should have been 50% instead of 5%.
In the current fiscal year FY22, a total of 12 companies have raised Rs.27,000 crore through the IPO route in first 4 months of the financial year. There is also a strong pipeline of over Rs.70,000 crore worth of IPOs already lined for this fiscal year. In the coming week, 4 IPOs viz. Devyani International, Windlas Biotech, Krsnna Diagnostics and Exxaro Tiles will open for subscription on 04-Aug. A slew of digital brands like Paytm, MobiKwik, Policybazaar, CarTrade and Nykaa are scheduled for IPOs. Bull rally played a role too.
Devyani International, the franchisee for KFC, Pizza Hut and Costa Coffee in India, is targeting valuations of Rs.11,000 crore in its IPO, scheduled to open on 04 August. The company has set a price band of Rs 86-90 per share for its IPO. The fresh issue proceeds of Rs.440 crore will be used to defray debt, while there is also a huge OFS component to the issue. Currently, Devyani operates 696 stores across 166 cities in India and operates via Yum Brands. As of now the company is making losses, but it is narrowing sharply.
Ashok Leyland rallied 10% on Friday in the midst of heavy volumes after the CV manufacturer lined up its electric vehicle or EV roadmap. Its Switch unit is getting a strategic investment from Dana Corp. Switch Mobility combines the electrical CV operations of Ashok Leyland in India and Optare in UK to secure leadership in net zero-carbon buses and LCVs. Switch Mobility will spearhead future efforts in e-mobility and Ashok Leyland has already invested $130 million so far with further investments of $200m lined up.
Hindalco plans to invest up to Rs.10,000 crore in its Hirakud, Silvassa and Mundra plants. Hindalco will invest in expand flat rolling capacity at Hirakud, set up an extrusions plant at Silvassa and a greenfield site at Mundra. With metals segment presenting huge untapped potential, Hindalco is deploying resources to transform this vertical into an EBITDA growth driver. India has among the lowest per-capital consumption of aluminium in the world and that bodes well for demand. The idea is also to reduce operating costs.
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