Daily Market Highlights AUG 31

%name Daily Market Highlights AUG 31

Previous Day Market Update 

Sensex closed at 56889.76 up  by 765.04 points

Nifty closed at  16931 up by 225.80 points

Residential home sales across major cities in India was up 56% at 75 million SFT for the Jun-21 quarter. However, sales were sharply lower on sequential basis compared to 179 million SFT in Mar-21 quarter. This was largely on account of the COVID 2.0 impact. This is based on a study by Kotak Research. Sales were robust in Mumbai, Bengaluru, Hyderabad, Pune and Chennai, while NCR saw weak growth. Total outstanding inventory across India was 12% lower at 1.2 billion SFT; equivalent to 2.3 years of total sales.

The latest in the IPO fray is MapmyIndia, which powers Apple maps in India. The company plans to raise up to Rs.1,200 crore and is expected to file DRHP in the next few days. MapmyIndia also powers the navigation system in MG Motor and BMW cars. The company is targeting a valuation of about Rs.6,000 crore in the IPO. The entire IPO will be an OFS to give exit to early investors like Qualcomm, Wal-Mart, Phone Pe etc. The Indian geo-spatial solutions market is estimated to touch $13.6 billion by the year 2030.

PE giant, Carlyle, emerged as preferred bidder for Baring Private Equity’s stake in Hexaware Technologies. The deal is expected to be worth $3 billion. Apart from Carlyle, KKR and Bain Capital are also in the fray for the Hexaware stake. Back in 2013, Baring Private Equity had bought a controlling stake in Hexaware for $420 million. Hexaware, formerly promoted by Atul Nishar, provides automation, cloud and customer services-related solutions. It services sectors like BFSI and hospitality and is spread across 30 countries.

Granules India received marketing approval from Health Canada for Acetaminophen tablets OTC, 650mg used extensively for the treatment of Arthritis pain. This medicine is a biological equivalent of Tylenol 650. The approval was received within eight months of filing. The product will be launched in Canada shortly. Granules will manufacture the drug at its manufacturing facility located in Gagillapur, Hyderabad. Granules India now has two ANDS (abbreviated new drug submissions) approvals from Health Canada.

A day after Bharti board approved the Rs.21,000 crore rights issue, it has emerged that the existing shareholders of Bharti Airtel could get a chance to sell rights entitlement (RE) at around Rs.70 per RE. The price of the RE is also dependent on how the price of Bharti Airtel moves. This is the biggest rights issue in India after the Rs.53,125 crore rights of Reliance Industries last year. The rights price has been set at a discount of 15% to the closing price at Rs.532. The ex-date for the rights issue is yet to be announced.

India’s own cab hailing service, Ola, selected Citigroup and Kotak Mahindra to manage its $1 billion IPO. Ola is backed by marquee PE investors like Softbank of Japan and Tiger Global Management. While the filing of DRHP is likely to happen in October, Ola could be targeting an overall valuation of $8 billion. This is one more in the sequence of digital IPOs. Zomato and CarTrade have already listed their IPOs with other big digital names like Paytm, PolicyBazaar, Nykaa, MobiKwik and many more queueing up in the IPO race.

Maruti Suzuki will increase the prices of its vehicles from September to offset the increase in input costs. Maruti has confirmed that in the last one year, a shortage of inputs and chinks in the global supply chain had resulted in a sharp fall spike in the input cost of Maruti. Beyond a point, auto companies cannot absorb the price hike and they have to pass it on to the end user. The price hike would be across models and implemented in September. Maruti has already raised prices of all its models twice in this year.

Phillips Carbon Black, part of the Sanjiv Goenka group, will infuse Rs.1,400 crore for capacity expansion in the next couple of years. While the greenfield plant near Chennai will entail an investment of Rs.800 crore, the brownfield expansion in Mundra will cost around Rs.350 crore. In addition, Phillips Carbon Black will also pump in Rs.100 crore at its R&D facilities in India and Belgium. Phillips produces 6 lakh tonnes of carbon black annually and the greenfield project at Chennai adds another 1.50 lakh tonnes to its capacity.


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