Daily Market Highlights SEP 07

4 Daily Market Highlights SEP 07

Previous Day Market Update 

Sensex closed at 58296.91 up  by 166.96 points

Nifty closed at  17377.80 up by 54.20 points

Rating agency, Fitch, has raised doubts over BPCL sale going through on times. Apart from process complexity, valuation disputes may also delay the process, according to Fitch. The agency continues to look at the potential divestment of BPCL by the Indian government as an event risk. Fitch believes that the energy transition to greener sources will also impact the valuation of BPCL. It may be recollected that the government of India is planning to sell its entire 52.98% stake in BPCL and exit the company in totality.

Two more companies have secured SEBI approval to raise funds via the IPO route viz Chemspec Chemicals and Northern Arc Capital. They had filed preliminary IPO papers with SEBI in July. Chemspec is a Rs.700 crore entirely structured as an offer for sale as per the DRHP. Chemspec is a leading manufacturer of additives for FMCG ingredients used in skin and hair care products. It also makes inputs for pharma APIs. Northern Arc IPO is worth Rs.300 crore and will also be an OFS. It is a non-deposit taking registered NBFC.

Reliance Industries is preparing a $5.7 billion bid to acquire a controlling stake in T-Mobile Netherlands BV. T-Mobile is the largest Dutch telecom player and is owned by Deutsche Telecom. It is already in the process of shortlisting lenders to fund the transaction. The acquisition of T-Mobile will give Reliance a foot-hold in Europe and de-risk its India dependence. T-Mobile also has a significant presence in the UK. The other big telecom player in India, Bharti Airtel, already has a very strong global presence in Africa.

Tamilnad Mercantile Bank, the 100-year old south based bank, has filed DRHP with SEBI for its proposed Rs.1,000 crore IPO. It will issue 1.583 crore fresh shares and do an offer for sale of up to 12,505 shares by the promoters. The main objective, like for most banks, is to meet its capital adequacy requirements. TMB had announced strong profit growth of 48% and a 17% rise in NII in FY21. Gross NPAs at 3.44% are fairly comfortable in the current scenario. TMB has around 509 branches with a strong rural and semi-rural tilt.

Realty stocks have been in the news due to improved outlook in the backdrop of record low interest rates and improved outlook of an economic recovery. There are several catalysts like government support and consolidation post-RERA. Above all, experts believe that the unlocking theme of IT hiring and increase in salary levels could act as triggers for demand for realty in India. Most of the south-based realty names are seeing the maximum traction in the IT capital of Bengaluru. This is the first sign of recovery since 2016.

UCO Bank has partnered with Fisdom to offer wealth management products and services via its mobile banking app. Fisdom is the wealth management brand owned by Finwizard Technology. The idea for UCO Bank is to offer an additional value proposition to its customers via digital mode. For a digital wealth brand like Fisdom, this gives a banking partnership as well as access to a wide audience. UCO Bank has over 3069 branches across India. It is seen as a mutually symbiotic relationship for Fisdom as well as for UCO Bank.

NTPC will partner with the National Investment and Infrastructure Fund or NIIF as well as with ONGC for acquiring and developing green energy assets to reduce its carbon footprint. The Ministry of Renewable Energy has set a target of 30 GW of offshore wind energy by 2030. The idea is harness the potential of India’s 7,600 KM long coastline. Meanwhile, NTPC is also preparing two of its renewable energy units for an IPO. NTPC will be investing around Rs.100,000 crore by 2024 to target 130 GW green power by 2032.

Dukaan, the online retail platform, has raised $11 million in pre-Series A round funding. The funding round was led by 640 Oxford Ventures. Other PE funds like Snow Leopard, LightSpeed and Matrix Partners also participated in the funding round. Less than a year back, Dukaan had raised $6 million seed funding. Dukaan is a no-code platform allowing local stores to launch e-commerce website and scale it on the internet. Dukaan merchants can also link their UPI interface with Dukaan and start accepting payments

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