Market Walk

Most analysts expect a discount on listing due to the lukewarm response to the LIC’s IPO

Most analysts expect a discount on listing due to the lukewarm response to the LIC's IPO

LIC listing on 17th May, the markets are worried about the impact of bear hammering on the stock price

Ahead of the LIC listing on 17th May, the markets are worried about the impact of bear hammering on the stock price. The price of the IPO was discovered at the upper band of Rs949. Of course, the retail will pay a discounted price of Rs904 while policyholders will pay a discounted price of Rs889 per share. The GMP was indicating a 10-15% discount on LIC IPO, but that is not an official price. Most analysts expect a discount on listing due to the lukewarm response to the IPO. In the past, large IPOs have had bad listings.

Bandhan Bank stock surged 8% on Monday to touch a price of Rs342.70

Bandhan Bank stock surged 8% on Monday to touch a price of Rs342.70 after it had reported improvement in asset quality in the March 2022 quarter. Gross NPAs fell 435 bps to 6.46%. For the Q4FY22, the NII was up 44.6% yoy at Rs2,540 crore. Net profit was up 19-fold at Rs1,902 crore in Q4FY22. NIM increased to a healthy level of 8.7%, while provisions fell sharply in the quarter. Bandhan Bank has also raised guidance for earnings growth in FY23 and FY24 to 23% and 17% respectively, on the strength of lower credit costs.

Paytm has decided to terminate its agreement with Prism Johnson to purchase a 51% stake

Paytm has decided to terminate its agreement with Prism Johnson to purchase 51% stake in Raheja QBE General Insurance. This was after the deal not being consummated within the stipulated time. However, Paytm has underlined that it remained bullish on non-life insurance and plans to seek a new license for general insurance. The deal was to acquire 51% in Raheja QBE for Rs290 crore. Paytm had planned to acquire the 51% owned by the Rahejas and the 49% owned by QBE of Australia, but deal did not work out.

Tata Power received an order for a 300-MW solar power project worth Rs1,731 crore from NHPC

Tata Power Solar, the renewable solar energy subsidiary of Tata Power, received an order for 300-MW solar power project worth Rs1,731 crore from NHPC. The project will be completed in 18 months under the IREDA CPSU scheme. It will produce approximately 750 million units yearly using Indian-made cells and modules. Tata Power Solar has been driving the valuations of Tata Power in the recent past. It has a pending order book of Rs13,500 crore, and its utility-scale solar project portfolio has now grown to 9.7GW.

RBI is likely to follow up on its surprise rate hike in May 2022 with more rate hikes in June and August

RBI is likely to follow up on its surprise rate hike in May 2022 with more rate hikes in June and August. Most analysts polled by Reuters expect a total of 75 bps rate hike between June and August, although they are not too sure about the quantum of rate hike in June 2022. That would complete the reversal of the COVID rate cuts undertaken by the RBI. The expectations varied from 35 bps to 75 bps rate hike in June. A lot will also depend on whether the RBI amplifies rate hikes with inflation upgrades and CRR hikes.

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