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Corporate India was almost unanimous in welcoming the COVID 4.0 stimulus announced by Nirmala Sitharaman on 28 June. The relief package included an Rs.110,000 crore loan guarantee scheme for affected sectors as well as increasing the scope of ECLGS by Rs.150,000. The big decision to boost tourism demand was to offer free tourist visas to 5 lakh tourists in FY22. There has also been a major allocation to aiding health and also on public health infrastructure. The entire package will entail an additional $84 billion.
IPO listings continued to be robust on Monday after Shyam Metalics and Sona BLW reported stellar listings in the previous week. On Monday, Dodla Dairy listed at a premium of 28% but extended gains and closed with listing gains of nearly 48% on 28 June. KIMS also debuted on 28 June at a 22% premium over its issue price of Rs.825 but gave up 10% from higher levels on profit booking. Most Dalal Street experts have been suggesting to book profits in these IPOs after the stellar listing as short-term upsides would be capped.
SAT did an encore on Monday providing interim relief to Franklin Templeton Mutual Fund by partly staying the SEBI order. SAT stayed SEBI’s order banning Templeton from launching new debt schemes for 2 years. Against the disgorgement of Rs.512 crore, SAT allowed Templeton MF to deposit just Rs.250 crore upfront. However, SAT has reserved its final order. The SAT has termed SEBI’s directive to disgorge Rs.512 crore as being excessive. SAT posted the matter for final disposal on 30-Aug. FT MF has to respond in 4 weeks.
Hyderabad-based Power Mech Projects secured Rs.9,294 crore Mine Development and Operation or MDO project from Central Coalfields Limited. This is part of GOI’s asset monetization drive. Coal India and NLC India will offer 60 projects worth Rs.41,042 crore for private investment; including 17 MDO projects. Central Coalfields is one of 7 subsidiaries of Coal India. The MDO contract will entail mine development, removal of overburden as well as extraction of coking coal. This will diversify Power Mech’s order book.
Finolex Industries rallied 15% on Monday to hit a new high of Rs.198.90 on the back of robust quarterly results. Finolex posted a 5-fold spurt in net profit at Rs.297 crore in the Mar-21 quarter on solid EBITDA margins in the quarter. Finolex is a backward integrated manufacturer of PVC pipes and fittings. For the Mar-21 quarter, Finolex reported 63% higher net sales at Rs.1,249 crore and a boost to EBITDA margins from 13.6% to 33.9% in Q4-2021. The company has announced a stock split, which is normally positive.
Standard Life, one of the original promotes of HDFC Life Insurance, plans to sell its 3.46% stake worth nearly Rs.4,606 crore. Currently, Standard Life Mauritius holds 8.88% in the joint venture. The shares are being offered in the range of Rs.658 to Rs.678, which represents a discount of up to 5.5% to the current market price of Rs.696. Standard Life has been selling down its stake in HDFC Life for quite some time now. In fact, it had sold a total of 3.37% stake in 2 tranches in June 2020 and later in December 2020.
SEBI has decided to keep the proposed IPO of Aditya Birla Sun Life AMC in abeyance for the time being, although no reason has been proffered for the same. It was structured as an offer for sale where Aditya Birla Capital would offer 28.51 lakh shares and Sun Life AMC was to offer 3.6 crore shares in the OFS. At indicative valuations of the sector, the issue would have been worth up to Rs.2,000 crore. It would have been the fourth AMC to list after Nippon Life AMC, HDFC AMC, and UTI Asset Management Company.
Emami has increased its stake in Helios Lifestyle from 33.09% to 45.96%. Helios is a direct-to-consumer start-up that sells male grooming products under the branding of “The Man Company”. The idea was to help leverage the online franchise more effectively. Helios manufactures premium male grooming products including face wash, scrubs, beard oils, shampoos, and after-shave lotions for men. India’s male grooming market is estimated at Rs.14,000 crore and growing at a compound annual growth rate of 15.14% till 2024.
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