Previous Day Market Update
Sensex closed at 55944.21 down by 14.77 points
Nifty closed at 16634.70 up by 10.10 points
The NSE has instructed all its members to discontinue sale of digital gold on their platforms by 10-Sep. SEBI had recently informed the exchanges that its members were selling digital gold, which was not in sync with the provisions of the SCRA. All members currently selling digital gold on their platforms, will have to cease the activity within a month. One of the objections SEBI had was that there was no way to physically verify if the digital ownership rights were actually backed by ring-fenced gold deposits or not.
India’s second largest mobile operator, Bharti Airtel, announced that its board would meet shortly to finalize on capital raising options. The company affirmed that they were currently evaluating a number of alternate options to enhance resources and build a war chest to take on competition from Reliance Jio. The funds could be raised either through equity or equity linked or debt instruments. However, Bharti has not divulged the quantum of funds it proposes to raise. The board meeting is scheduled on 29th-August.
Bank of India approved the launch of qualified institutional placement or QIP to raise up to Rs.3,000 crore equity to fund business growth and stock up on capital buffers. It may be recollected that just last week, Canara Bank had raised Rs.2,500 crore via QIP, in which many marquee investors including Jhunjhunwala had participated. The floor price for the QIP placement has been set at Rs.66.19 per share. A total of 26 institutions have evinced interest in the issue during road shows. Bank can give 5% discount at discretion.
It appears to be the season for NFOs. The recently launched SBI Balanced Advantage Fund NFO is all set to record highest ever NFO collection by any fund scheme. While final estimates are expected, early estimates peg total collections at close to Rs.13,000 crore. That is a good 35% higher than the previous NFO record set by ICICI Prudential Flexi-Cap Fund just last month. SBI alone is said to have collected close to 50% of the flows through its vast branch network. SBI MF is already the AUM leader in India by a margin.
SEBI ordered defreezing of bank accounts and stock and MF holdings of ex-Yes Bank MD, Rana Kapoor. He is currently in judicial custody since Mar-20, when RBI had imposed a freeze on Yes Bank deposits before handing over to SBI. SEBI has already imposed a fine of Rs.1 crore on Kapoor for lapses in disclosure regarding transactions of Morgan Credit. This SEBI order came after Supreme Court stayed SAT approved penalty of Rs.1 crore on Kapoor, who had complied with SC direction and deposited 50% of the amount.
Cipla and Kemwell Biopharma, a CDMO specialist, announced a joint venture agreement to develop, manufacture and commercialise biosimilars for global markets. The two entities plan to float a JV to make a foray into the respiratory biosimilars space. The combined entity of Cipla and Kemwell will be able to leverage the combined product, clinical development, regulatory filings and commercialisation of biopharma products. While Cipla has a strength in respiratory segment, Kemwell has strength in biologics.
Delhivery, an Indian start-up specializing in logistics and supply chain, will shortly file its DRHP with SEBI to raise up to $1 billion via IPO. A string of digital companies have already queued up to raise funds in the robust Indian IPO market. Delhivery is backed by big names like SoftBank and Carlyle. The IPO will be a combination of fresh issue and an OFS. Delhivery has a 10 year pedigree and currently handles more than 15 lakh packages a day. It also counts Fosun of China among its investors. Paytm is also in the IPO fray.
Adani Ports announced that the Government of Andhra Pradesh had approved its proposal to acquire 10.4% stake in Gangavaram Port. Adani Ports is expected to pay Rs.645 crore for this stake and the deal will be closed in the next 1 month. Adani Ports has been expanding its East Coast franchise rapidly to bring about parity between both the coasts. This will provide much better access from hinterland markets. The Gangavaram Port is a multi-cargo facility handling 32.81 MMT of cargo in FY21 with capacity of 64 MMT.