Daily Market Highlights AUG 03

%name Daily Market Highlights AUG 03

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Sensex Closed At 52,950.63  up by 363.79  points 

Nifty Closed At 15,885.15up  by 122.10  points 

July was another strong month for exports as per data put out by the Ministry of Commerce. Exports were up 48% yoy at $35.17 billion. Cumulatively, exports have grown by 73.86 percent to $130.56 billion in the first 4 months of FY22. The export of processed petroleum saw a 215% jump followed by engineering goods rising 42% while gems & jewellery exports were up 130% yoy. Other segments like electronics, textiles and pharma also saw good traction in exports. However, imports scaled $59 billion in July 2021.

Nykaa, the digital cosmetic retailer floated by former Kotak investment banking honcho Falguni Nayyar, filed DRHP with SEBI for its Rs.4,000 crore IPO. Nyka has funding from global PE majors like TPG and Fidelity. In its last round of funding, Nykaa was valued at around $1.50 billion. The IPO is expected to value Nykaa at closer to $4 billion. Founded in 2012, Nyka is a one-stop destination for beauty products. It houses over 1,500 brands including global luxury labels. Nykaa posted revenues of Rs.1,850 crore in FY20.

For the Jun-21 quarter, RBL Bank reported a net loss of Rs.459 crore, against a profit of Rs.141 crore in the Jun-20 quarter. This was largely on the back of higher provisions for future loan setbacks. Gross slippages were at Rs.1,342 crore with 97% coming from retail. Gross NPAs were higher by 65 bps at 4.99% in the Jun-21 quarter. Overall provisions were up 3-fold at Rs.1,425 crore. Net interest income fell 7% at Rs.970 crore in the quarter while the net interest margins or NIMs narrowed from 4.9% to 4.4% in Jun-21.

Adani Wilmar, set up in 1999 as a JV between Adani Group and Wilmar of Singapore, filed DRHP with SEBI for its Rs.4,500 crore IPO. It is famous for its Fortune cooking oil brand. The entire Rs.4,500 crore will be by way of primary issuance. The funds will be used to fuel its goal to become India’s largest food company by 2027. Apart from cooking oil, Adani Wilmar is also into basmati rice, atta, maida, sooji, rawa, pulses and besan. It has refining capacity of 16,800 tons per day (TPD) and seed crushing capacity of 8,800 TPD.

Punjab National Bank reported 231% jump in net profits at Rs.1,023 crore for the Jun-21 quarter. Even, sequentially, net profits were up 74%. PNB’s NII increased by 6.5% at Rs.7,226 crore while the net interest margin or NIM improved by 23 bps to 2.73%. While overall provisions were constant, provisions for NPAs dropped by 32% in Jun-21 quarter. However, gross NPAs scaled up by 22 bps to 14.33% even as net NPAs also spiked to 5.84%. However, the provision coverage ratio stands tall at 80.26% with CRAR at 15.2%.

Kumar Mangalam Birla has indicated to the government that he is willing to offer his stake in Vodafone to any state owned or domestic financial entity to keep the stressed telecom player afloat. There have been concerns over the Rs.180,000 crore debt in the books of Vodafone as losses have already wiped out the net worth. Vodafone had been planning to raise Rs.25,000 crore but investors have bene hesitant. Both Vodafone UK and the AV Birla group have refused to infuse any further capital into Vodafone Idea.

Private Equity Fund, Tiger Global, will invest an additional $125 million in Infra.Market in a deal valuing the Indian technology start-up at $2.5 billion. Infra.Market will use the funds for expansion in the domestic market. Earlier this year, the start-up was valued at $1 billion during the funding round. The formal announcement is expected within a week or so. Infra.Market was founded in 2017 to help real estate and construction companies procure materials including ready-mix concrete and fly ash at competitive rates.

Sterlite Power Transmission, part of Anil Agarwal’s Vedanta Group, plans to come out with an IPO of $403 million or Rs.3,000 crore in the Indian market. Sterlite Power has already hired marquee investment bankers JM Financial and Axis Capital for the proposed public offering. The issue is unlikely to have OFS component and is likely to be predominantly a fresh issue. The IPO market has been in the midst of a frenzy in last few months with over Rs.27,000 crore collected from IPOs in the first four months of FY22.

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%name Daily Market Highlights AUG 03

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