In the week gone by, global stock market witnessed a volatile trade as investors chart the course for monetary policy and continued to digest corporate earnings reports. Meanwhile, there is a bigger-than-expected drop in US home construction, while production at US factories increased in July for the first time in three months. July meeting minutes showed that Fed plans to continue raising interest rates into so-called restrictive territory to cool inflation and anchor consumers’ inflation expectations. As such, they anticipate having to raise the target range for the short-term interest rates beyond the “neutral” rate and toward a restrictive policy stance. Most market participants expect a 50 basis point increase in September to follow. Euro zone inflation reached a new record high of 8.9% year-onyear in July pushed by the worsening disruption in global energy markets fuelled by Russia's invasion of Ukraine. In the last meeting, the ECB has indicated it will continue hiking rates even if the economic situation deteriorates, ditching the traditional forward guidance and embracing instead a meeting-by-meeting approach to decide its next steps. On the flip side, China's central bank has leveraged its policy toolkit, cutting the interest rates of its medium-term lending facility (MLF) loans and reverse repos by 10 basis points for the second time this year, to further consolidate economic growth.
Back at home, domestic markets continued to revive from renewed foreign institutional inflows, sustained and continued domestic flows. Actually expectation of moderating inflation boosted the confidence of the investors. In the upcoming meeting, RBI is expected to go for a 25 basis points rate hike. In its third fortnightly review of windfall gains tax, the Government of India on August 18 cut the cess on crude oil and reduced it to Rs 13,000/tonne from Rs 17,750 per tonne. On the earning front, June quarter earnings have been a mixed bag. Banks and NBFCs have been the frontrunners from the profitability and growth point of view. Commodity stocks are seeing high inflationary pressure and the FMCG sector has seen good volume growth. Going forward, BFSI will witness an upward trajectory in the coming years in terms of earning growth and returns. Institutional investors have increased allocation to the automobile sector as improving demand and softening commodity prices are expected to benefit margins. Going forward, we may see stock-specific movements in the market. Hence, investors are advised to have a stock-centric approach and stay abreast with global as well as domestic developments.
On the commodity market front, Commodities mostly traded in a range with some bearish bias; CRB closed near 310 levels. Dollar index took a support near 105.5 and closed near 108 levels; exerted pressure on commodities. Bullion counter lost some of its strength after the minutes of the Federal Reserve’s July meeting showed that most members supported more rate hikes to bring down inflation. Sell at high strategy should be good for bullion counter as dollar index is likely to trade up in coming days. Base metals can see further correction on weak economic health of China. In Energy pack, natural gas will continue to move from the low and it can trade in a wide range of 680-780 levels. S&P Global Manufacturing PMI Flash, GDP Growth Rate, GfK Consumer Confidence and Ifo Business Climate of Germany, Durable Goods Orders, GDP Growth Rate, Core PCE Price Index, Michigan Consumer Sentiment Final and PCE Price Index of US, GDP Growth Rate of Mexico etc are some important triggers for commodities this week.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
Improving supply chain conditions, better mix, realizations, new-age products and leveraging on emerging opportunities auger well for the company. Going forwards the management expects a conducive environment would ensure the momentum continues. Thus, it is expected that the stock will see a price target of Rs.3667 in 8 to 10 months’ time frame on two years average P/BVx of 7.28x and FY23 BVPS of Rs.503.71.
The company continues to drive strength from a robust balance sheet with zero net debt, strong operating cash flow generation, diversified product portfolio and continuous focus on the right capital allocation strategy. It is believed that the entry into new JVs, organic and inorganic expansions, or tie-ups that improve the company’s presence in emerging technologies and technologically advanced products, would help the company further enhance its business profile diversification. Moreover, Indian automotive demand is expected to remain high due to increased penetration, rising income, a significant jump in urban population and continued government support. Thus, it is expected that the stock will see a price target of Rs.263 in 8 to 10 months time frame on a current P/Bv of 4.05x and FY23 BVPS of Rs.64.84.
The stock closed at Rs 735.15 on 19th August, 2022. It made a 52-week low at Rs 507.11 on 23rd August, 2021 and a 52- week high of Rs. 1279.26 on 19th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 677.79.
Prices have given a break above the rounding bottom formation, the neckline of the rounding bottom happens to be around 708 levels. Prices have given breakout with high volume contribution. On monthly charts, prices have given a break above the bullish harami pattern and also have closed at 3 months high. An initial rally near 775 levels is expected a break above same level we can expect prices to rally further near 850-880 levels in near term. Therefore, one can buy in the range of 725-730 levels for the upside target of 820-850 levels with SL below 685 levels.
The stock closed at Rs 201.95 on 19th August, 2022. It made a 52-week low of Rs 162.10 on 16th June 2022 and a 52-week high of Rs 339.70 on 06th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 224.94.
After registering yearly low, the stock has recovered sharply and formed a rounding bottom formation while giving a break above 200 resistance zone. Prices have also formed three white soldiers pattern on daily chart adding further bullishness. A break above 210 would give further positive confirmation for prices to rally further. Immediate support lies near 198 levels. Therefore, one can buy in the range of 198-200 levels for the upside target of 230-240 levels with SL below 184 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian markets remained volatile in the week gone by and ended on a flat note after witnessing four consecutive gains. Nifty ended the week above 17700 mark while Bank nifty closed below 39000 mark on the back of profit booking. Derivative data suggest limited upside as of now in index as call writers added hefty open interest at 17900 & 18000 strike. Put writers however were seen shifting at 17500 strike, which should act a strong support level for Nifty. Implied volatility (IV) of calls closed at 15.33% while that for put options closed at 16.49%. The Nifty VIX for the week closed at 17.35%. PCR OI for the week closed at 1.21. From the technical point of view, the bias would remain in favour of bulls and any dip into prices should be used to create fresh longs. The stock specific action is likely to remain on radar as Nifty is approaching towards August series expiry. Hence, volatility would continue to grip Indian markets in upcoming sessions as well.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric (Sept) is likely to trade in the range of 6800-7650 with bearish bias. Last week prices plunged to 10-month lows due to selling pressure and on report of better sowing. As per Andhra Pradesh agricultural department, as on 27th July Turmeric sowing activity completed around 7,958 hectares as compared to last year same period 7,764 hectares. Sufficient stocks and good sowing reports kept turmeric prices under pressure. As per the trade analysts, local demand for turmeric is subdued and it is reported that south India has good sowing coverage of turmeric this season following which pressure is seen on its prices. Buyers from major consumption centres are staying away. They are buying turmeric as per their short-term demand. Fresh demand will appear after September.
Jeera future (Sept) prices climbed last week as lower mandi arrivals and less supply of Jeera as farmers and stockists were holding stocks, are supporting the prices. The support is seen at 23500 levels while resistance is at 25700 levels. Mandi arrivals of Jeera, at the all-India level decreased by 10% as compared with the previous month. As per the trade analysts, the buyers were seen reluctant to carry out their buying at higher level. However, prices are unlikely to see any big fall from the current level as cumin seed has attracted good demand from export front. Currently, prices were higher by 78% y/y on lower availability due to lesser jeera production in 2021/22 compared to previous year. As per Fourth advance estimates released by Govt of Gujarat, Jeera production is likely to fall by 45% to 2.22 lakh tonnes over the previous year due to lower sowings.
Dhaniya future (Sept) prices may trade in the range of 10800-12200 levels on mixed fundamental. The prices may move lower amid subdued overseas as well as local demand at spot markets, while lower production reports of crop followed by limited supply may provide support to the counter. The buyers from South India as well as the local processors have reduced their buying currently, that’s why coriander prices are steady. Buyers stayed away in anticipation of more fall in its prices. As per the market sources, the stocks of imported coriander are now a low; the demand and prices of domestic coriander have picked up. Currently, the prices are higher by almost 56% y/y due to lower crop estimates. India has imported about 11.5 thousand tons of dhaniya till May’22 in year 2022 compared to 2.4 thousand tons of previous year.
Gold prices slipped to three-week low and were set for their first weekly drop in five, as stronger dollar and prospects of more rate hikes by the U.S. Federal Reserve dented Bullion’s appeal. Gold prices slipped over 2.5% week on week, falling to its lowest since July 29. Markets are expecting interest rates to go further up and of course the strong dollar is definitely weighing on gold prices at the moment. The dollar surged to a one-month high against its rivals, making gold more expensive for buyers holding other currencies. The Fed needs to keep raising borrowing costs to bring high inflation under control, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them. St. Louis Fed President James Bullard said he was currently leaning toward supporting a third straight 75-basis-point rate hike in September. Gold is highly sensitive to rising U.S. interest rates, as these increases the opportunity cost of holding non-yielding bullion. In the July meeting minutes, Fed officials said the pace of future rate hikes would depend on incoming economic data. Investors continued to digest minutes from the U.S. Federal Reserve’s July meeting. The minutes showed more rate hikes were in the pipeline, but also signalled Fed officials had begun to more explicitly acknowledge the risk they might go too far and curb economic activity. Ahead in the week, prices of Gold most likely to witness selling pressure and the possible range would be 50200-52500. In Silver, prices may continue to trade with bearish bias where it may take support near 54200- 57500.
Crude Oil prices slipped after gain, as market participants weighed worries about global economic slowdown - that could dampen fuel demand - against expectations of tighter supplies toward year-end. Brent at one point fell to its lowest since February, as signs of a slowdown mounted in some places. Oil prices rallied after another round of impressive U.S. economic data boosted optimism for an improving crude demand outlook. The number of Americans filing new claims for unemployment benefits fell last week and the prior period's data was revised sharply lower, suggesting labor market conditions remain tight despite slower momentum due to higher interest rates. The new secretary general of the OPEC, Haitham Al Ghais, told that policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not the cartel. At its next meeting in September, Al Ghais said OPEC+, which includes other oil suppliers like Russia, "could cut production if necessary, we could add production if necessary. Bans by the European Union on Russian oil exports could dramatically tighten supply and drive up prices in coming months. Ahead in the week, crude oil prices continue to witness both side movements where it may take support near 6950 and could face resistance near 7450 levels. Higher volatility is expected in the counter. The natural gas markets initially tried to rally but gave back some of the gains as it looks like we are finally starting to see the effects of gravity. The market is very likely to continue struggling in the $9.50 region, and very likely to see a bit of a pullback. Ahead in the week, Natural gas prices may continue to trade in the range of 700-750 levels.
Base metal prices headed for a weekly decline, with supply risks outweighed by demand concerns as macroeconomic pressure persisted. U.S. and European central bank officials said inflation pressures were not easing, suggesting interest rates will continue to increase. But in China, the biggest metals consumer, the central bank is easing monetary policy, copper stockpiles are low and import premiums suggest demand is rising. Low inventories and hopes for Chinese demand should put a floor under prices. Yangshan copper import premiums have risen to $102.50 a tonne, the highest since December and up from just $6.50 earlier this year. Ahead in the week, copper price may move in the range of 640-690 levels with higher volatility. Increased Chinese infrastructure spending and support for the property sector should help metals but the upside looks limited. Closures were announced in the previous week at a zinc smelter and an aluminium smelter in Europe due to sky-high energy prices. The forecast deficits of Zinc is the roughly 14 million tonne a year market of 197,000 tonnes this year and 190,000 tonnes in 2023 and said prices should reach $3,800 within three months. Ahead in the week zinc prices may continue to trade with sideways to bullish bias where it may take support near 305 and could face resistance near 328. Lead may continue to trade in the sideways territory of 178-186. Chinese aluminium production has risen to record levels, helping China's aluminium imports to fall 38% year-on-year in July. Ahead in the week Aluminium prices may witness selling from higher levels and the possible trading range would be 220-200.
Cotton prices rose further on speculative buying supported by prevailing concerns over limited supply. Moreover, reports of crop damage due to pest attack and excessive rainfall in major cotton growing region also kept prices elevated. Worries over crop damage and emerging possibilities of re-sowing and yield losses due to incessant rainfall in Maharashtra will support firmness in prices. However, gains are likely to be limited in wake of favourable weather forecast that will facilitate the ongoing sowing progress and crop health. About 123 lakh Ha was sown under cotton till 19th Aug compared to 116 lakh Ha of previous year, higher by 6% Y-o-Y. Sluggish demand at higher level will cap the excessive gains. MCX Cotton Sep futures prices is likely to face resistance near 43700 and witness some consolidation unless clear picture about crop is not come out.
NCDEX cotton seed oil cake Sep futures extended its losses on subdued demand. Demand from feed industry and stockists is limited as they are preferring hand to mouth buying due to lower availability of fair quality of cotton seed oil cake in the market. Better crop outlook of cotton also keeping buyers away from active buying. Prices are likely to honor resistance of INR 2800 trade lower towards 2550 in coming weeks.
Mentha oil prices slipped further on surging selling pressure. Heavy stocks and bleak limited industrial demand will keep the prices down in coming weeks. Prices are likely to drop further and may find support near 930-950.
NCDEX Guar seed futures remained down due to better production outlook for upcoming season wherein Guar gum prices dropped on sluggish export enquires. Improving crop condition and reports of higher Area under guar seed in Rajasthan is likely to put pressure on Guar seed prices. Total area under Guar has been reported at 30.6 lakh Ha as on 18th Aug’22 compared to 20.1 lakh Ha of previous year higher by 52% Y-o-Y. Guar seed prices may find support near 4500 wherein Guar gum futures will be supported at 8200 level.
Castor seed futures extended its gains on prevailing concerns over supply shortage in domestic market. Fear of crop damage due to excessive rainfall in Gujarat and Rajasthan also supported firmness in prices. Prices may face resistance near 7700 as limited export demand of oil and increased area under castor in Gujarat and Rajasthan will curb the excessive gains. Castor area in Gujarat has increased by 28% Y-o-Y reached up to 4.17 lakh Ha as on 15th Aug’22.
GOLD MCX (OCT)contract closed at Rs. 51603.00 on 18th Aug 2022. The contract made its high of Rs. 52650.00 on 05th Jul’2022 and a low of Rs. 49795.00 on 21st Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 51699.57. On the daily chart, the commodity has Relative Strength Index (14-day) value of 49.031.
One can sell near Rs. 51700 for a target of Rs. 50900 with the stop loss of 52100.
COPPER MCX (AUG)contract was closed at Rs. 670.75 on 18th Aug’2022. The contract made its high of Rs. 730.50 on 22nd Jun’2022 and a low of Rs. 602.15 on 15th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 661.28. On the daily chart, the commodity has Relative Strength Index (14-day) value of 53.399.
One can buy near Rs. 660 for a target of Rs. 685 with the stop loss of Rs 650.
GUARGUM NCDEX (SEP)contract closed at Rs. 8685.00 on 18th Aug’2022. The contract made its high of Rs. 10375.00 on 13th Jul’2022 and a low of Rs. 8280.00 on 11th Aug’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 8914.98. On the daily chart, the commodity has Relative Strength Index (14-day) value of 39.653.
One can buy near Rs. 8700 for a target of Rs. 9200 with the stop loss of Rs. 8450.
Commodities mostly traded in a range with some bearish bias; CRB closed near 310 levels. Dollar index took a support near 105.5 and closed near 108; exerted pressure on commodities. In energy counter, crude prices cooled off whereas natural gas prices ignited again. Crude traded marginally down as investors grappled with falling stockpiles in the United States, rising output from Russia and worries about a potential global recession. China's refining output remained lacklustre in July as strict COVID-19 lockdowns and fuel export controls curbed production. Market ignored the news of dropdown in crude inventory. U.S. crude stocks fell by 7.1 million barrels in the week to Aug. 12, EIA data showed, against expectations for a 275,000-barrel drop, as exports hit 5 million barrels a day, the highest on record. Natural gas prices flirted with levels not seen in the US in almost 15 years amid mounting concerns that robust domestic and overseas demand for the fuel will siphon off supplies that otherwise would be stowed for winter. With European buyers willing to pay almost seven times the US price, competition for spare supplies will be fierce. Bullion counter lost some of its strength after the minutes of the Federal Reserve’s July meeting showed that most members supported more rate hikes to bring down inflation. Strength in the dollar weighed on most metal prices. Base metals prices nosedived as Chinese property developer drove more concerns over demand. An extended slowdown in China’s real estate market is likely to impact broader economic activity in the country, which in turn could impact demand for commodities. Zinc prices soared up as Nyrstar will put its zinc smelting operations at Budel in the Netherlands on care and maintenance from Sept. 1. However, it gave up its weekly gain in the later part of the week.
Cotton oil seeds cake saw a resistance near 2850 levels and saw profit booking from there whereas cotton saw big spikes. Firmness in ICE cotton futures amid prevailing weather concerns in major cotton growing region in US also added strength in domestic prices. Mentha breached the support of 980 levels on poor spot demand. Castor performed well on strong domestic demand. However, limited export demand of oil and increased area under castor in Gujarat and Rajasthan capped the excessive gains. In gaur counter, guarseed prices saw further fall whereas guargum saw a pause in the fall. Area under guar seed in Rajasthan has been reported at 30 lakh Ha as on 10th Aug’22 compared to 17.9 lakh Ha of previous year higher by 76% Y-o-Y. In spices, jeera made historic high of 25480 whereas turmeric saw strong lower level buying. Dhaniya continued to move up.
The world is facing an uncertain time of food crisis due to global shocks such as conflicts in Ukraine and elsewhere, the pandemic’s disruption of livelihoods, market volatility from rising food and energy prices and extreme weather caused by climate change. Our farmers are proving most resilient with their hard work and have given us enough protection from the food crisis and have enabled us to supply food stocks to feed the world.
As per fourth Advance Estimates for 2021-22, the total food grain production in the country is estimated at record 315.72 million tonnes which is higher by 4.98 million tonnes than the production of foodgrain during 2020-21. The production during 2021-22 is higher by 25 million tonnes than the previous five years’ (2016- 17 to 2020-21) average production of foodgrains. Record production is estimated of rice, maize, gram, pulses, rapeseed and mustard, oilseeds and sugarcane during the 2021-22, agriculture ministry said in a statement.
The record production clearly outlines the tireless hard work & courage of farmers who went out for higher sowing in the kharif and Rabi season as well as, research by agricultural scientists, and farmer-friendly policies of the Central Government.
As per 4th Advance Estimates, the estimated production of major crops during 2021-22 is as under:
With record production continuously in the last 7 years, India has comfortable stocks of foodgrain that are not only providing confidence against the current global food crisis but the world is also looking towards India to fight the crisis. But, India’s kharif foodgrain production in the 2022-23 crop year is likely to witness a significant fall due to deficiency in monsoon rainfall in key growing states of West Bengal, Bihar, Jharkhand and Uttar Pradesh.
Rupee ended the week on a negative note despite substantial dropped recorded in oil prices along with improvement in capital flows into the domestic equities. The broader theme for dollar remains stronger as monetary policy divergence continues to favor dollar over basket of currencies. Accordingly Dollar Index hit 1- month high driven by sharp rise in US treasuries yield notably 2-Y hit one month high and now at decade high at 3.23%. Faster rate hike expectations lifted the short end over the long end which eventually prompts to bid dollar. Now the Chinese yuan trading at a pivotal area of 6.80 to a dollar which is a three month low. Inevitably higher dollar index, lower yuan and softening oil prices will keep the USDINR higher in coming days. Technical resistance may surface around 80.25 on a weekly basis. Meanwhile the latest Fed officials comments for Sep hike starting from St Louis Fed President James Bullard said he is leaning toward supporting a third straight 75-basis-point interest rate hike in September while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be reasonable. On top of that Kansas City Fed President Esther George said she and her colleagues will not stop tightening policy until they are completely convinced" that overheated inflation is coming down. Euro and Pound both fell sharply after back-to-back hawkish comments from the above Fed officials. Next week Jackson-Hole Symposium will be key to watch where Fed’s Chair will share his views on growth outlook and possible hint for rate trajectory.
USD/INR (AUG)contract closed at 79.6750 on 18-AUG-22. The contract made its high of 79.7700 on 18-AUG-22 and a low of 79.3325 on 17-AUG-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 79.5940.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 56.08.One can buy at 79.50 for the target of 80.50 with the stop loss of 79.00.
GBP/INR (AUG)contract closed at 96.1150 on 18-AUG-22. The contract made its high of 96.9300 on 17-AUG-22 and a low of 95.7225 on 18-AUG-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 96.2280.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 41.18. One can sell at 95.40 for a target of 94.40 with the stop loss of 95.90.
| 19th AUG | Japan July headline inflation has risen to 2.6% Y/Y amid surging fuel and food cost |
| 19th AUG | Middle East states set for $1.3tn oil windfall, IMF says |
| 19th AUG | UK consumer confidence hits record low as household mood darkens |
| 18th AUG | UK energy groups call for ‘immediate’ increase in £400 bills rebate scheme |
| 18th AUG | Turkey surprises with interest rate cut as inflation soars |
| 18th AUG | US and Taiwan to hold trade talks amid China tensions |
| 17th AUG | Britain's inflation rate rose to a new 40-year high of 10.1% in July |
| 16th AUG | Britain's unemployment rate held at 3.8% in the three months to June. |
| 15th AUG | The Japanese economy grew by 2.2 % on an annualized basis in Q2 of 2022 |
EUR/INR (AUG) contract closed at 81.1200 on 18-AUG-22. The contract made its high of 81.7250 on 17-AUG-22 and a low of 80.7475 on 17-AUG-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 81.3641.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 41.65. One can sell at 80.75 for a target of 79.75 with the stop loss of 81.25.
JPY/INR (JUL) contract closed at 59.0450 on 18-AUG-22. The contract made its high of 59.5000 on 17- AUG-22 and a low of 58.9200 on 17-AUG-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 59.0932.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 45.36. One can sell at 58.80 for a target of 57.80 with the stop loss of 59.30.
The initial share-sale of airport service aggregator platform DreamFolks Services Ltd will open for public subscription on August 24. The three-day public issue would conclude on August 26 and the bidding for anchor investors would open on August 23. The IPO is entirely an offer for sale of up to 1.72 crore equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav. The public issue will constitute 33 per cent of the post offer paid-up equity share capital of the company. DreamFolks facilitates an enhanced airport experience for passengers, leveraging its technology-driven platform. The company's asset-light business model integrates global card networks operating in India, credit card and debit card issuers and other corporate clients, including airline companies, with various airport lounge operators and other airport-related service providers on a unified technology platform.
Vikram Solar has received capital markets regulator Sebi's go ahead to raise funds through an IPO. The IPO consists of a fresh issue of up to Rs 1,500 crore and an OFS of up to 50 lakh equity shares by the selling shareholders. Vikram Solar, which filed preliminary IPO papers with the markets regulator in March, obtained its observation letter on August 10, an update with the SEBI showed. In Sebi's parlance, its observations imply its go ahead to float the IPO. Vikram Solar is a leading domestic module manufacturer. It produces solar photo-voltaic (PV) modules and is an integrated solar energy solutions provider offering engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) services. Going by the draft papers, proceeds from the fresh issue will be utilised for setting up an integrated solar cell and solar module manufacturing facility with an annual production capacity of 2,000 MW. The company has a global footprint through a sales office in the US and a procurement office in China and has supplied solar PV modules to customers in 32 countries, as of December 31, 2021. In India, the company's customers include NTPC, Rays Power Infra, Amp Energy India, Azure Power India, West Bengal State Electricity Distribution Company Ltd, Solar Energy Corporation of India, Hindustan Petroleum Corporation Ltd and Keventer Agro. The company's international customers include Amp Solar Development Inc, Safari Energy LLC, Standard Solar Inc and Southern Current. In India, the company's customers include NTPC, Rays Power Infra, Amp Energy India, Azure Power India, West Bengal State Electricity Distribution Company Ltd, Solar Energy Corporation of India, Hindustan Petroleum Corporation Ltd and Keventer Agro.
Concord Biotech, the Ahmedabad-based fermentation-based active pharmaceutical ingredient (API) maker backed by Rare Enterprises and Quadria Capital, filed its DRHP with market regulator SEBI for an initial public offering (IPO). The issue with a face value of ₹1 per equity share is a complete OFS aggregating to 20,925,652 equity shares by Helix Investment Holdings Pte. Limited. The offer also includes a reservation for a subscription by eligible employees. The offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation to qualified institutional buyers, up to 15% will be available for allocation to non-institutional bidders and the remainder for retail investors. As per DRHP, Concord has a market share of over 20% by volume in 2021 across identified fermentation-based API products including dactinomycin, sirolimus, tacrolimus, and mycophenolate sodium, and cyclosporine. It supplies to over 70 countries including regulated markets such as the US, Europe, Japan, and India.
Balaji Speciality Chemicals has filed preliminary with capital markets regulator Sebi to raise funds through an IPO. The IPO consists of a fresh issue of equity shares worth up to Rs 250 crore and an OFS of up to 2,60,00,000 equity shares by promoters and promoter group entities, according to the DRHP. Proceeds worth Rs 68 crore from the fresh issue will be used to repay debt, and Rs 119.5 crore will be spent on working capital requirements, besides general corporate purposes. The company may consider a pre-IPO placement aggregating to Rs 50 crore. If such placement is undertaken, the size of the fresh issue will be reduced. Incorporated in 2010, Solapur-based Balaji Speciality Chemicals manufactures niche chemicals, which are used in various end-use industries, such as speciality chemicals, agrochemicals and pharmaceuticals. Its key customers include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr Reddy's Laboratories Limited and Aarti Drugs Limited. From FY20 to FY22, its customer base grew from 45 to 182 customers.
Balaji Amines' subsidiary Balaji Speciality Chemicals has filed a draft red herring prospectus with capital markets regulator SEBI for fund raising via an initial public offering. The offer consists of a fresh issue of equity shares worth Rs 250 crore and an offer for sale of 2.6 crore shares by certain existing and eligible shareholders of Balaji Speciality Chemicals. Balaji Amines will not be participating in the proposed offer. The company said it has filed draft papers on August 10. In June, the board of directors of Balaji Speciality Chemicals gave approval for fund raising through initial public offer of equity shares. Balaji Speciality Chemicals manufactures niche chemicals such as ethylene diamine (EDA), piperazine anhydrous (PIP), diethylenetriamine (DETA), aminoethyl ethanolamine (AEEA) and aminoethyl piperazine (AEP), using the monoethanol amine (MEA) process. These chemicals are used in various end-use industries such as speciality chemicals, agrochemicals, and pharmaceuticals.
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IDFC Mutual Fund has launched IDFC Nifty200 Momentum 30 Index Fund, an open-ended index scheme that will consist of 30 high momentum large and mid-cap stocks replicating the Nifty200 Momentum 30 Index. The New Fund Offer opens on Friday, August 19 and closes on August 26. Investment can be made through licensed mutual fund distributors, advisors, and online platforms as well as directly on the IDFC MF website. Vishal Kapoor, CEO, IDFC AMC, said, “Momentum investing has proven to be a highly rewarding factor strategy over the last several years. It has also outperformed the broader indices, for instance, the Nifty200 Momentum 30 Index has outperformed the Nifty 100, and Nifty 200 indices in 8 out of the last 10 calendar years. It follows a structured, quantitative-led process of buying securities when their price is rising, and importantly, selling them when prices appear to have peaked. Historically, returns per unit of risk for the momentum index have been higher than broader indices. The diversification offered through this differentiated investment style, through a cost-efficient Index Fund, makes our fund an attractive opportunity for smart, long-term equity investors.”
WhiteOak Capital Mutual Fund has launched two schemes - WhiteOak Capital Mid Cap Fund and WhiteOak Capital Tax Saver Fund. While the New Fund Offer of the mid cap fund closes on August 30, the tax saver fund NFO will be open for subscription till September 23. These are open-ended equity schemes. Both regular and direct plans will be available for investors in both the funds. The WhiteOak Capital Mid Cap Fund will allow lumpsum investments only during the NFO period. The scheme will take investments only via SIP after the NFO period. According to a press release, WhiteOak Capital Mid Cap Fund will invest nearly 65% of the portfolio in Mid-cap stocks. The remaining allocation will be towards both large caps (for liquidity purposes) and small caps (to capture some compelling opportunities). The fund is benchmarked against S&P BSE Midcap 150 TRI. The fund house said that the mid cap segment can be a good investment option for investors seeking to invest for the long term via the SIP route. With additional options which include WhiteOak Capital Goal SIP, WhiteOak Capital Flexi SIP, and WhiteOak Capital Top Up SIP , investors have the flexibility to choose from a wide range of SIP variants.
Sundaram Mutual has launched Sundaram Flexi Cap Fund, which will invest across sectors, in large, mid and small cap stocks, without any restrictions on allocation across market cap curves. The new fund offer is currently open and it will close on August 30. Flexi Cap funds have the potential to outperform over market cycles. They allow investors to stay invested in the best cap curves, sectors and stocks across all market scenarios. Investors tend to chase the markets and may or may not make the right call for their portfolio. By investing in a Flexi Cap, they leave the decision to the experts, allow for greater diversification and can relax while the fund manager Optimizes Opportunities for them,” said Sunil Subramaniam, Managing Director, Sundaram Mutual.
Mirae Asset Mutual Fund has launched two new fund offers on Electric & Autonomous Vehicles and Artificial Intelligence themes. The new fund offers of Mirae Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund and Mirae Asset Global X Artificial Intelligence and Technology ETF Fund of Fund are open for subscription from today and will close on August 30. Mirae Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund (EV FoF) will invest in overseas ETFs which are based on companies from different geographies catering to the development of Electric and Autonomous Vehicles and related technology, components and materials. Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund (AI FoF) will invest in units of Global X Artificial Intelligence & Technology ETF. GlobalX is a leading ETF provider headquartered in New York, presently manages more than US$40bn AUM in thematic ETFs. Global X ETFs is a member of Mirae Asset Financial Group.
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