Daily Market Highlights JUL 06

4 Daily Market Highlights JUL 06

Previous Day Market

Sensex Closed At 52,880 up by 395 points

Nifty Closed At 15,834 up by 112 points

The government plans to sell 7.49% stake in NMDC through an offer for sale on 06 July, in a bid to mop up close to Rs.3,621 crore in divestment receipts. The base sale offer will be for 11.72 crore shares representing 4% of capital at a floor price of Rs.165 per share. However, the government will retain a green-shoe option to sell another 3.49% based on demand. Institutional bids will be solicited on 06 July while any unallocated bids will be carried forward for retail subscription, which will happen on 07 July.

SEBI has issued a detailed framework to penalize market infrastructure institutions like stock exchanges, clearing corporations and depositories for technical glitches. However, this is more likely to be with prospective effect so the NSE low-latency issue is likely to be outside the purview of these regulations. Under the new framework, such players will pay Rs.100,000 per day for delay in submission or incomplete submission of root cause analysis. There will be higher penalties for failure to address technical glitches.

SEBI granted approval for Zomato’s Rs.7,875 crore IPO. The actual IPO is scheduled for this month. Zomato had filed its offer document with Sebi on 28 April. Zomato will make a fresh issue of Rs.7,500 crore while Info Edge will offload shares worth Rs.375 crore. Zomato has the backing of Ant Group of China. Currently, Info Edge holds 18.55% stake in Zomato. Roadshows in the global markets have already commenced. The overall valuation of Zomato is expected to be close to $8.5 billion or Rs.60,000 crore post the IPO listing.

It is now evident that at least 95% of Jet Airways employees will have to consent to the Kalrock-Jalan proposal or lose benefits offered under the revival plan. NCLT has cleared the proposal to revive Jet Airways. Against the admitted claims of Rs.15,000 crore by Jet Airways, the Kalrock Jalan consortium will only pay Rs.475 crore. In addition, the creditors will also get a stake in Jet Airways under the terms of the settlement. The number of employees of Jet Airways has dwindled from 9,000 to 3,600 in last 2 years.

Apex Frozen Foods was locked in 20% upper circuit and has gained nearly 46% since it announced solid results for the Mar-21 quarter. The PAT for Mar-21 quarter had increased almost 3.5 times to Rs.8.40 crore on a sequential basis, although the profits were down on a yoy basis. It also reported a 16.5% growth in net revenues at Rs.182 crore even as the EBITDA margins improved from 7.6% to 11.5% qoq. It had witnessed volume growth of 30% yoy with its ready-to-eat products being well received in the market.

HFCL continued to show robust performance as it touched a 19-year high price of Rs.86 on Monday. The volumes on the stock have also seen a sharp growth. HFCL has gained nearly 86% just in the last one month of trading. In the process, the market cap of HFCL crossed the Rs.10,000 crore mark after a very long time. HFCL is engaged in the manufacture of high-end transmission and access equipment, optical fibre cables as well as in setting up total communication networks for telcos and smart city projects.

Panacea Biotech stock surged 9% to Rs.411 after it announced receipt of manufacturing license to produce Sputnik-V vaccine at its Baddi plant in Himachal Pradesh. The license is a necessary pre-condition to use Sputnik V produced by Panacea Biotech in India. It may be recalled that Sputnik-V was registered in India under the emergency use authorization or EUA procedure in April this year. Sputnik-V is already registered in over 67 countries globally. The stock saw a spurt in price coupled with doubling of trading volumes.

The IPO of India Pesticides got listed on 05 July and made a strong debut listing at a premium of 22%. Against the issue price of Rs.296, India Pesticides listed at Rs.360. However, after touching a high of Rs.358 on the NSE, the stock gave up gains and closed the day at Rs.342, about 15.5% above the IPO price. The week before last, the IPO had been subscribed nearly 29 times with even the retail portion getting a 11.3 times subscription. India Pesticides operates in two business verticals, viz. technicals and formulations.

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