Market Walk

India spent close to $13.7 billion when crude prices were at a 14-year high

LIC plans to sell only 3.5% of its stake for a consideration of Rs.21,000 crore

There is clarity emerging on LIC IPO. The government filed a revised DRHP with SEBI and the nod is expected on Monday. LIC plans to sell only 3.5% of its stake in LIC for consideration of Rs.21,000 crore. That values LIC at around Rs.600,000 crore, nearly half of the original valuation planned. LIC will sell 22 crore shares and the insurer has been now valued at just about 1.1X actuarial valuation done by Milliman Advisors. The IPO will be about 14.7% bigger than the Paytm IPO with issue details to be announced on 27th April

India’s crude oil import bill doubled to $119 billion in FY22

There is hardly any surprise that India’s crude oil import bill doubled to $119 billion in FY22 as against $62.2 billion in FY21. The main reason was the sharp surge in crude prices amidst supply crunch and later the Russia Ukraine war. In the month of Mar-22 alone, India spent close to $13.7 billion when crude prices were at a 14-year high. Import volumes in FY22 stood at 212.20 million tonnes compared to 196.5 million tonnes in FY21. Volume growth has been just 8%, so most of the import bill accretion is from price hikes

ICICI Bank reported 58% growth in net profits for the Q4 at Rs.7,719 crore

ICICI Bank reported 58% growth in net profits for the fourth quarter at Rs.7,719 crore on the back of improved NIMs and lower provisioning. Net interest income (NII) grew 21% in Mar-22 Q4 at Rs.12,605 crore. Deposit growth was 14% while loan growth was 17% and CASA deposits accounted for 45%. NIMs for the quarter improved to 4% for the quarter. Provisions for doubtful assets fell by 63% in the fourth quarter to Rs.1,069 crore. Gross NPAs dipped below 4% while the capital adequacy ratio is at 19.16% in Q4.

UBS is the latest to downgrade the FY23 GDP forecast for India by 70 bps from 7.7% to 7%

UBS is the latest to downgrade the FY23 GDP forecast for India by 70 bps from 7.7% to 7%. UBS has specifically cautioned that India’s rural economy will remain a big drag. Some of the headwinds highlighted by UBS include high energy prices, weak global growth, and the war in Ukraine. UBS has pointed to India’s high vulnerability to commodity prices as a major risk factor. They expect high global commodity prices to be passed on to the real economy, impact company margins, and household consumption power in a big way.

Two major IPOs will raise close to Rs.2,996 crore in the coming week

Two major IPOs will raise close to Rs.2,996 crore in the coming week. Campus Activewear, opening on the 26th of April, will be a total offer for the sale of shares by promoters and early investors to the tune of Rs.1,400 crore. The campus is one of the leading athletic and leisure footwear companies in India. The other IPO of Rainbow Children Medicare is an Rs.1,596 crore IPO comprising of a fresh issue component and an offer for sale component too. The IPO of Hyderabad-based Rainbow Children Medicare opens on 27th of April.

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