Market Walk

The open offers by Adani group to the shareholders of Ambuja Cements

India’s leading omnichannel furniture and home needs marketplace, is planning to file DRHP

Pepperfry, India’s leading omnichannel furniture and home needs marketplace, is planning to file DRHP for its IPO by June 2022. It has already appointed ICICI Securities, Axis Capital and JPMorgan as the book running lead managers to the issue. The issue size is expected to be $250 billion or close to Rs2,000 crore. Early investors like Norwest, Broadstreet, Bertelsmann and GE Pensions will take an exit via the OFS route. Pidilite has also invested in Pepperfry. It has 1.2 lakh products on offer and over 60 lakh registered users.

The combination of lower input costs and higher export duties on steel

The combination of lower input costs and higher export duties on steel is expected to bring down the price of steel by 10-15%. This is as per the estimates of EEPC. Steel companies have been unhappy with the export duties as it could lead to cancellation of orders from the EU region. Indian steel companies are already reeling under the onslaught of higher coking coal prices. In addition, the reduction in excise on petrol and diesel will also bring down freight costs for steel companies. TMT bars were trading 10% lower.

The open offers by Adani group to the shareholders of Ambuja Cements

The open offers by Adani group to the shareholders of Ambuja Cements and ACC opens on 06th July. The open offer will entail an outlay of $4 billion and at Rs31,139 crore it will be the largest open offer ever in the Indian market. Adani family has already acquired Holcim’s stake in Ambuja Cements and ACC as the latter wanted to exit the India business. The Adani total open offer goes above the Rs29,220 crore open offer by Unilever for HUVR in 2013. Adani family will make open offer for 26% in Ambuja Cement and ACC.

SEBI announced changes to guidelines for passive funds to boost ETF culture in India

SEBI announced changes to guidelines for passive funds to boost ETF culture in India. Other than for PSU entities, there will be a cap of 25% exposure to any group for ETFs and index funds also. In case ratings go below investment grade, funds have to rebalance the portfolio within 30 days. There should also be at least 2 market makers for ETFs. SEBI has allowed mutual fund AMCs to launch passive equity linked savings schemes (ELSS) for tax saving purposes (offering Section 80-C benefits), though funds cannot launch both.

Auto stocks had a field day gaining over 5%

Auto stocks had a field day gaining over 5% on Monday after the government slashed excise duty on petrol by Rs8/litre and diesel by Rs6/litre. Auto stocks also gained from the expected fall in steel prices due to a combination of higher export duties and abolition of import duties on key inputs. This is likely to be demand accretive for auto stocks and will also reduce the cost of ownership of cars and two-wheelers for the consumers. The excise cut on petrol will boost affordability in the price sensitive 2-wheeler segment.

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