Daily Market Highlights Jul 29

%name Daily Market Highlights Jul 29

Previous Day Market

Sensex Closed At 52,443.71 down  by 135.05  points 

Nifty Closed At 15,709.40 down by 37.05  points 

Maruti Suzuki reported net profits of Rs.441 crore for the Jun-21 quarter as against net loss of Rs.249 crore in the Jun-20 quarter. The sales of cars remained disrupted in the Jun-21 quarter due to localised lockdowns for COVID 2.0. Maruti sold a total of 353,614 units during the Jun-21 quarter of which 308,095 units were sold in India and 45,519 units were exported. Its revenues for the Jun-21 quarter were up four-fold in the Jun-21 quarter at Rs.17,771 crore. Sequentially, EBITDA margin contracted 370 bps at 8.3%.

SEBI is seriously considering restructuring IPO and preferential issue norms. Recently, SEBI had simplified the framework for minimum public shareholding to enable large companies to launch IPOs with ease. Tyagi also added that SEBI may also look at directed listing like in the US SPAC model in the Indian context. Tyagi also added that the debt market in India also needed to develop like equity markets and they were keen to provide an enabling environment, especially since bond issues are now 36% above bank credit.

Nestle India reported 10.7% growth in net profits at Rs.539 crore for Jun-21 quarter. Net sales were up 13.8% at Rs.3,463 crore. Operating performance got impacted by the 24% jump in raw material costs in Q1. EBITDA was up 10% in the Jun-21 quarter at Rs.840 crore while EBITDA margins contracted 88 bps. Nestle raised prices on a many marquee products including the popular Maggi noodles. Out of its Rs.2,600 crore investment plan, Nestle has already invested Rs.1,000 crore to expand its manufacturing capacity.

Windlas Biotech, a leading CDMO player in India, is all set to launch its IPO on 04-Aug. The IPO will consist of a fresh issue of Rs.165 crore plus an OFS of another 51.42 lakh shares by existing shareholders. Apart from the promoter, Tano India PE Fund will divest its entire 22% holding through the OFS. The price band for the IPO is yet to be announced. Windlas Biotech will use the proceeds to purchase equipment required for capacity expansion at Dehradun Plant and for repaying certain high-cost borrowings of the company.

Rakesh Jhunjhunwala plans to procure 70 aircraft in next 4 years for a new ultra-low-cost airline. Rakesh plans to invest $35 million to own 40% of the airline. The approval from the Aviation Ministry is awaited. The airline will be called Akasa Air and typical planes will carry 180 passengers. Jhunjhunwala made his billions investing in the Indian equity story and some of his major holdings like Titan and Lupin are the stuff that legends are made of. However, the challenge of high costs and post-pandemic paradigm remain.

India’s private sector weather forecaster, Skymet, raised Rs.12 crore in debt funding from Northern Arc and Caspian Impact Investments. Skymet will use the funds to boost ground observation plus accurate prediction of floods and cyclones in East India. This additional data investment will mitigate the risks and provide accurate data to farmers, especially in the East. The global weather forecasting market is expected to double to $2.70 billion by 2023. Indian weather forecasting market is pegged at nearly $100 million.

JSW Cement will raise Rs.1,500 crore from two global PE funds; Apollo Global and Synergy Metals. Under the terms of the deal, CCPS will be issued to investors, convertible to equity linked to future performance of JSW Cement. JSW Cement will be able to accelerate its capacity expansion from the current level of 14MTPA to 25 MTPA by 2024. JSW Cement is planning IPO in next 18 months. JSW has a strong focus on green building materials, which appeals to global funds. JSW Cement is part of the $13 billion JSW group.

Gupshup, a messaging platform to manage customer interactions, raised $240 million in follow-on funding from investors including Fidelity Management and Tiger Global. The earlier infusion of $100 million into Gupshup by Tiger Global in Apr-21 had valued Gupshup at $1.4 billion. Gupshup use AI-powered journey of conversations to manage customer requirements. Gupshup is exploring M&A opportunities to expand its business inorganically. While the platform may have evolved, Gupshup remains controversial in India.

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