In the week gone by, by, global stock markets witnessed volatile movements as investors are still worried about the US debt-ceiling and stability of the banking industry. Also macroeconomic data from the United States and China triggered global growth concerns. Data showed US initial jobless claims reached the highest since October 2021 while producer prices rose 0.2% in April. The reports signal the Federal Reserve’s policy-tightening campaign may finally be having an effect on inflation as the central bank walks a tightrope between reining in rising prices and tipping the economy into a downturn. Recent, U.S. inflation data suggest that the U.S. Federal Reserve will not raise rates at its next meeting. Consumer price index inflation in the United States came it at 4.9% year-on-year in April. That was the 10th straight monthly fall and was marginally below the 5% figure economists expected. However, Fed will continue to keep close eye on jobs report and inflation print before the June meeting. Meanwhile, the Bank of England raised its benchmark lending rate to the highest level since 2008 and said further increases may be needed if inflationary pressures persist. The central bank no longer predicts recession after it revised up its growth forecasts from gloomy numbers released in February, the biggest such improvement since it first published forecasts in 1997. On the Chinese front, New Chinese bank loans tumbled far more sharply than expected in April, data showed on Thursday, adding to worries that the economy's post-pandemic recovery is losing steam.
Back at home, despite strong FIIs buying, markets continue to witness volatile trade. Domestic market sentiments also took a hit after data suggested a possible slowdown in the US economy. FPIs have invested over Rs. 21,000 crore in the Indian financial market in May so far. The return of FPIs can be attributed to India's economic resilience. Indian economy is expected to remain one of the fastest-growing large economies in the world in 2024 which will likely keep foreign investors glued to the country. At this juncture, market indicators suggest that both Fed and the RBI are close to the peak in the present rate hiking cycle. Yes, the anticipation of the end of aggressive rate hikes is adding confidence to FPIs for emerging markets. On the flip side, Fitch Ratings has lowered its 2023-24 GDP growth forecast for India to 6% from 6.2%, citing headwinds from elevated inflation and interest rates along with subdued global demand, with the economy expected to rebound to 6.7% in 2024-25 as opposed to 6.9% projected earlier. Besides, Q4 earnings, the momentum will depend on a host of macroeconomic factors and global economy going forward.
On the commodity market front, continuous fall was witnessed in commodities and this sent CRB below 290 levels. Dollar Index saw a pause in fall and closed the week marginally high. In bullion, gold continued to move up on third straight week whereas silver saw a massive correction from the top. Gold and silver may trade in a range of 59000- 62000 and 71000- 76000 levels respectively. In the energy counter, crude oil prices rebounded after a three week fall whereas natural gas was in a range with upside bias. Crude oil can see further downside; upto 5700-5650 levels. Base metals prices corrected on weaker data and rebound in dollar index. More fall is expected in base metals from higher side. BoE Monetary Policy Report Hearings, Reserve Bank of Australia Meeting Minutes, Retail Sales of China, Claimant Count Change and ILO Unemployment Rate of UK, GDP of Euro Area, Retail Sales of US, BoC Consumer Price Index Core and retail sales of Canada, Unemployment Rate of Australia etc are many important data scheduled this week, which one should watch while trading in commodity.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
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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.
According to the management of the company, it has strengthened its capabilities by expanding civil business in the international markets, adding large size orders in T&D in India and international markets, and ventured into newer areas like airports, solar EPC, data centers etc. The growing need for infrastructure development and higher adoption of renewables has resulted in a strong business momentum. The company has strong balance sheet and are continuously working on improving its working capital, return ratios and project closures along with divesting its non-core assets, which provides good visibility for growth in coming quarters. Thus, it is expected that the stock will see a price target of Rs. 660 in 8 to 10 months’ time frame on current P/BVx of 1.83x and FY24 BVPS of Rs.360.76.
The company has strong balance sheet with zero debt. It enjoy strong market share across its brand. Recent capacity addition and new launches across various categories indicated steady business growth of the company. Thus, it is expected that the stock will see a price target of Rs.265 in 8 to 10 months’ time frame on target P/BV of 5.7x and FY24 BVPS of Rs.46.42.
The stock closed at Rs 1305.95 on 12th May, 2023. It made a 52- week low of Rs 1024.50 on 23rd December, 2022 and a 52-week high of Rs.1405.55 on 02nd September, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1214.
Stock has been consolidating in a broader range of 1130-1270 since last four months as prices can be seen flirting around its 200 days exponential moving average on daily interval. At current juncture, a fresh breakout has been observed after a prolong consolidation phase with rise in average volumes. Alongside, positive divergences on secondary oscillators suggest for next upswing into prices as bullish momentum is expected to carry in upcoming sessions as well. Therefore, one can buy the stock in the range of 1300-1305 levels for the upside target of 1460-1465 levels with SL below 1200 levels.
The stock closed at Rs 2623.40 on 12th May, 2023. It made a 52- week low at Rs 2100 on 17th June, 2022 and a 52-week high of Rs.2741.60 on 09th December, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2517.
Since the beginning of year 2023, stock has been trading under pressure, with the formation of lower bottom pattern, visible on daily and weekly charts. On technical grounds, stock has formed triple bottom pattern around 2420 levels and risen sharply thereon to once again reclaim the momentum above its 200 days exponential moving average on daily charts. A fresh breakout has been observed above the falling trend line of downward sloping channel. Therefore, one can buy the stock in the range of 2600-2625 levels for the upside target of 2850-2875 levels with SL below 2475 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 rebounded last week, as Nifty ended with gains of more than 1% while Banking index outperformed to end the week with gains of more than 2.50%. A slew of weak economic data points, from the US and China hinting towards a slower pace of economic growth disturbed the mood of the Indian markets over the week, but lower levels buying once again emerged in later part of the week as Nifty ended above key level of 18300. From the derivative front, hefty OI addition has been observed at 18200 put strike which will act as a strong support level for Nifty moving forward. The Implied volatility (IV) of calls closed at 11.86% while that for put options closed at 12.57%. The Nifty VIX for the week closed at 13.22%. PCR OI for the week closed at 1.28. Technically, both the indices are likely to remain bullish in upcoming session as well with volatility likely to grip the markets. Traders are advised to create fresh longs in case of any correction seen on the back of profit booking. On the higher side, now 18400-18500 zone would act as a strong hurdle for the index going forward.
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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 June futures witnessed sharp recovery in prices during last week due to report of crop damage in Maharashtra. Arrivals dropped sharply due to unseasonal rainfall that lent support to prices. Turmeric prices are likely to trade on positive note due to weaker production for upcoming season. Gains in turmeric is likely to remain continue due to supply concerns as farmers are reluctant to release arrivals in better price realization. Growing worries over rising possibilities of El Nino during July- Aug’23 is also likely to support firmness in prices. Turmeric production is already down by 7%-10% in year 2022-23 and likely to down further in upcoming season due to weather concerns. Acreages under turmeric may shift to other kharif crops that will lead to fall in production. However, heavy stocks will cap the excessive gains. Turmeric June contract is expected to trade in range of 7400-8000.
Jeera NCDEX June futures are likely to remain volatile as some kind of profit booking is likely to be seen as marginal traders are avoiding bulk buying in anticipation of rise in seasonal supply of jeera in Gujarat and Rajasthan. Export demand has also slowed down at this level that may lead to correction in prices. Major trend is still bullish due to tighter carryover stocks and below normal arrivals in the market. Quality of the new crop is also questionable after recent rainfall in Rajasthan and Gujarat. Jeera June futures are expected to trade in range of 42000-51000.
Dhaniya NCDEX June prices are likely to trade on weaker note due to increased supplies at major trading centers. Overall dhnaiya production is estimated to increase by 8%-10% across India that will keep supplies adequate in coming weeks. However, losses are likely to be limited as prices are ruling at multiyear low and stockiest are looking interested by buy at dip. Dhaniya NCDEX June futures are likely to trade in range of 6500-7300 levels.
Gold prices remained relatively stable, posted flat returns, while the silver prices experienced a significant decline, falling from the high of 78120 to 73045 in one day move. The selling of precious metals was mainly due to the strength of the U.S. dollar index. The decline in silver prices was also attributed to concerns over a weak economic recovery in China, which is a major consumer of industrial metals. Furthermore, persistent economic fears and the U.S. debt ceiling standoff also cushioned bullion’s further decline. Investors are closely monitoring the on-going debt talks and expecting a pause in rate hikes by the Federal Reserve. While markets have priced in the idea that the Fed is probably done hiking at this point, traders are still looking for clear indications on the rate trajectory. Additionally, a debt limit meeting between U.S. President Joe Biden and top lawmakers has been postponed to early next week, adding to the uncertainty in the markets. This has led to some profit taking in precious metals, pushing prices down. Markets are currently pricing in an 87.1% chance of the U.S. central bank holding rates at its current level in June. On the technical front, COMEX gold is facing strong resistance near $2050 and taking support near $2000 levels. Break below the $2000 mark may push the prices to $1980. On the other hand, Silver may continue to trade in the range of 22.650-25.300 levels. Ahead in the week gold prices may continue to witness selling pressure where it may take support near 59500 and could face resistance near 62000. Silver on MCX will also follow the footsteps of gold and base metals and witness sharp selling pressure and trade in the range of 70000-77000 levels.
Crude oil prices posted their fourth weekly decline, as renewed economic concerns in the U.S. and China revived anxieties about fuel demand growth in the world’s two largest oil consumers. Both benchmarks fell by about 1.1% for the week, longest streak of weekly decline since November 2021. With talks over the U.S. government’s debt ceiling stalled and renewed fears that another regional bank is in crisis, there is mounting concern that the U.S. will enter a recession. A decline in new loans to businesses in China and weaker economic data there earlier in the week refocused doubts about its recovery from COVID restrictions driving oil demand growth. Additionally, cooler inflation data from both countries suggested consumer demand was weak. Oil is a growth-sensitive commodity, which was impacted by these bearish factors. Price rose, after falling, on some demand expectations following comments from the U.S. energy secretary that the U.S. could repurchase oil for the Strategic Petroleum Reserve (SPR) once some sales finish in June. The U.S. government has said it will buy oil when prices are consistently at or below $67 to $72 per barrel. Ahead in the week, prices continue to witness selling pressure but sell on rise advised and the possible trading range would be 5600-6200 levels. Natural gas posted flat returns due to low demand, which is likely to continue in the coming week. The weather forecast for the U.S. from May 11-17 suggests an active pattern with numerous weather systems tracking across the country, bringing heavy showers and thunderstorms. However, the temperature is expected to remain comfortable with highs in the 60s to 80s, resulting in light national demand for natural gas. Ahead in the week, prices will continue to witness sideways movement and the trading range would be 160-200 levels.
Base metals may trade with bearish bias as the growing fear of global recession, tepid demand in top consumer China and improving supply may pressure the market. However, prices may get support as short covering cannot be denied due to softer dollar after the U.S. Federal Reserve opened the door to a pause in its aggressive tightening cycle. China's industrial metals consumption has remained subdued in the second quarter, which is traditionally a peak demand season, due to a slow economic recovery and sluggish export market. A slew of downbeat data last week suggested a sluggish economic recovery in the world's second largest economy, exacerbating concerns over metal demand outlook, amid rising supplies of the metal. Copper may trade in the range of 710-740 levels. Production at 22 smelters surveyed by Antaike, with a total capacity of 11.12 million tonnes, totalled 886,700 tonnes last month, up 18.5% from a year ago. Copper inventories in LME warehouses climbed to a near two-month high recently. Zinc can trade in range of 218-235. Lead can move in the range of 176- 186 levels. Global demand for refined lead metal will exceed supply by 20,000 tonnes in 2023, the ILZSG said. Aluminum may trade in the range of 195-210 levels. The share of Russian aluminium stocks in warehouses registered with the London Metal Exchange fell slightly-to 52% of the total in April, or 256,125 tonnes, from 53% in March, data on the exchange's website showed. Overall aluminium stocks in LME warehouses are up 27% so far this year to 570,150 tonnes. Steel long (June) is likely to trade in the range of 44500-47000 levels with bearish bias on NCDEX due to softened global cues.
Cotton prices are likely to trade sideways to higher on reduced supplies in physical market. Cotton Association of India (CAI) further lowered its cotton crop estimate by 465,000 bales for the 2022-23 season to 29.8 million bales as production is expected to decline in Maharashtra, Telangana, Tamil Nadu and Odisha. The latest estimate of cotton crop is the lowest since 2008-09 season which was 29.0 million bales. Growing worries over upcoming crop numbers due to rising possibilities of El Nio weather phenomenon in year 2023 is another factor that will cap the downfall in cotton prices. Cotton is likely to trade in range of 61000 -63000. Similarly, Kapas Apr’24 futures are likely to trade in range of 1580-1670.
Cotton seed oil cake NCDEX June futures are likely to trade on positive bias during the week due to reduced supplies in the market. Bleak production of cotton and lower arrivals has affected the overall production of cotton seed oil cake adversely. Cotton seed oil cake prices are likely to trade in range of 2650- 2930.
Guar seed June futures are likely to trade sideways to higher on rising possibilities of drier spell of monsoon in year 2023. The chance of an El Niño weather phenomenon developing in the coming months that will keep market sentiments up for guar. Drier monsoon is likely to directly affect the sowing progress and yield of guar seed in year 2023. However, market is running with huge stocks of guar seed and bleak demand prospects of gum in wake of weakness in crude oil prices is likely to cap the excessive gains. Guar seed prices will trade in range of 5400-6000/6200 in near term wherein Guar gum prices are likely to trade in range of 10500-12500 levels.
Mentha oil May contract is likely to trade down due to reports of tumbling export of menthol from India India exported about 11887 tonens of menthol during time period of Apr’22-Feb’23 as compared to 18386 tonnes of previous year for corresponding period. Moreover, improved sowing number will also weigh on prices. Recent spell of rainfall in Uttar Pradesh and Bihar has proved helpful for sowing activities. Forecast of above normal rainfall in May will be helpful for sowing activities of Mentha. Mentha oil prices are likely to trade in range of 945- 1000.
Castor seed prices are expected to trade sideways to higher as some recovery is likely to be seen in prices due to growing worries over weather in July-Aug, the peak sowing period of castor. However, gains are likely to be limited as higher production and limited export demand of castor oil will cap the major upside movement. Overall Production is estimated at 18.82 lakh tonnes in year 2023 higher by 16% Y-o-Y. Castor seed June prices are likely to hold the support of 5800 will face 6400 as resistance in near term.
It closed at Rs. 60886.00 on 11th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 60602.68. On the daily chart, the commodity has Relative Strength Index (14-day) value of 48.410. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 61000 for a target of Rs. 59000 with the stop loss of 61900.
It closed at Rs. 179.80 on 11th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 187.23. On the daily chart, the commodity has Relative Strength Index (14-day) value of 38.421. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 189 for a target of Rs. 165 with the stop loss of 200.
It closed at Rs. 5707.00 on 11th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 5706.01. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.355. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 5600 for a target of Rs. 6000 with the stop loss of 5400.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
Continuous fall was witnessed in commodities; and this had sent CRB below 290 levels. Dollar Index saw a pause in fall and closed the week marginally high. The dollar rose to its highest since May 1 as against a basket of major currencies, after recent U.S. jobless claims data strengthened the case for the Federal Reserve to halt interest rate hikes but did not prompt expectations of year-end rate cuts. In bullion, gold continued to move up on third straight week whereas silver saw massive correction from the top. Concerns over slowing U.S. economic growth also supported safe haven demand for gold in recent weeks, as the country grapples with high inflation and interest rates. The Fed recently warned that the U.S. faces a mild recession this year. Silver saw a weekly fall from 77248 to 72861 levels. In the energy counter, crude oil prices rebounded after a three week fall whereas natural gas was in a range with upside bias. Upside was limited on build up inventory in US. U.S. natural gas inventories rose by 78 billion cubic feet, or bcf, the Energy Information Administration, or EIA, announcing a higher-thanexpected build in an oversupplied market that needs to see less stockpile increases and more demand in order to rally. The stockpile build comes after another round of barely supportive weather. Base metals prices corrected on weaker data and rebound in dollar index. Copper prices nosedived amid signs of weakening demand in major importer China. Chinese imports missed expectations in April, with copper shipments to the country falling nearly 13% from the prior year amid continued weakness in the real estate and manufacturing sectors. Oil prices fell about 2% to a one-week low on Thursday as a political standoff over the U.S. debt ceiling stoked recession jitters in the world's biggest oil consumer, while rising U.S. jobless claims and weak Chinese economic data weighed.
In Agri, castor witnessed pause in the fall. Cotton and cotton oil seed cake prices slipped further on weakness in global cotton prices and bleak export demand. Guar gum prices were slightly up and Guarseed prices closed marginally lower. Growing worries over drier spell of monsoon in year 2023 due to strengthening possibilities of El Niño weather phenomenon has triggered fresh buying in guar complex. In spices, jeera continued its massive bull runs; turmeric too closed up whereas dhaniya was in a range with some weak bias. Turmeric added more colors in portfolio on reports of crop damage in Maharashtra due to recent rainfall. Below normal arrivals along with increased export demand stimulated buying. Turmeric production is already down by 7%-10% in year 2022-23 and likely to down further in upcoming season due to growing worries over weather phenomenon. Jeera prices have jumped more than 90% in year 2023 due to crop concerns. Market is lacking with quality produce as the recent rainfall in Rajasthan and Gujarat damaged larger part of jeera crop.
Yellow metal is always the prominent choice among the investors to park their money and diversifying their portfolio in troubled times of geopolitical uncertainty, pandemic related environment and global economic slowdown concerns. In times of current global crisis and uncertainty, gold has become the most reliable reserve for global central banks as well. Geopolitical crises, supply chain difficulties and surging inflation weighed heavily on the global economy and reinvigorated investor interest, pushing the gold price briefly to USD 2,080 an ounce in April. Investment demand was already picking up in March as bank failures spread fear through markets and analysts anticipated the end of U.S. interest rate increases.
Gold demand in India
Considering the current market conditions, investment demand is expected to remain strong as the combination of high inflation and heightened geopolitical tensions will likely to push demand for gold amongst investors.
The US dollar index recorded a notable uptick this week, registering its first weekly gain in three weeks despite concerns about a slowing US economy. The latest economic data reveals that consumer inflation unexpectedly slowed to 4.9% in April, falling below 5% for the first time in two years, while producer inflation rose less than anticipated. Furthermore, weekly jobless claims reached a 1.5-year high, indicating a weakening labor market due to sluggish demand. Presently, the market projects a 98% chance of the Federal Reserve keeping interest rates unchanged in June, with rate cuts anticipated by the end of this year. Investors remained vigilant about potential risks related to the banking sector and the impasse over the US debt ceiling. The dollar index has been range-bound between 100.50 and 102.00, and a breakout above 102 levels could potentially trigger a renewed upward trend. On the domestic front, the USD/INR pair witnessed a bounce back from its three-month low of 81.7 levels, closing the week above the 82.00 mark, as the greenback gained some momentary strength and there were dovish expectations for the Reserve Bank of India. The pair has given a breakout from the falling wedge chart pattern near 82.20 levels, which acted as a robust resistance in the last few sessions, indicating positive momentum for the coming sessions. Additionally, the USD/INR has also given a positive crossover from the 5 and 21 Exponential Moving Averages (EMA), confirming a bullish bias. For now, 81.70 will act as a strong support zone while the next resistance, after breaking 82.20, is seen around 82.58-82.60. Given the breakout, EMA positive crossover, and the strength of the dollar index, the current trend for the USD/INR currency pair is bullish as long as it remains above the critical breakout level of 82.20.
USDINR (MAY)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The Pair has major support placed around 81.60 levels while on higher side resistance is seen around 83.00 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.08 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 54.74.
One can buy near 82.00 for the target of 83.00 with the stop loss of 81.50.
GBPINR (MAY)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 102.10 levels while on higher side resistance is seen around 103.70 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 102.48. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 59.49.
One can buy near 103.10 for the target of 102.10 with the stop loss of 103.60.
EURINR (MAY) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 89.00 levels while on higher side resistance is seen around 90.58 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 89.97. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 50.47.
One can sell near 90.00 for the target of 89.00 with the stop loss of 90.50.
JPYINR (MAY) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 60.51 levels while on higher side resistance is seen around 61.90 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 61.24. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 48.83.
One can buy near 61.00 for the target of 62.00 with the stop loss of 60.50.
Mankind Pharma staged a stellar performance on its listing day despite volatility in the overall equity markets. The stock opened with more than 20 percent gains at Rs 1,300 on the NSE, which was way above analysts' expectations as well as the grey market premium. The price band for the offer was Rs 1,026-1080 per share. The public issue received a robust response from qualified institutional investors including the anchor book.
Two companies - Tata Play, formerly known as Tata Sky, and drone maker ideaForge Technology - have received capital markets regulator Securities and Exchange Board of India's (Sebi) approval to raise funds through IPOs. Tata Play, the first company in India to use the confidential pre-filing of draft papers option for an initial share sale in December 2022, obtained the regulator's observation letter on April 26. IdeaForge Technology, which filed its preliminary papers with the regulator in February this year, got its observation letter on April 13, an update with Sebi showed on Tuesday. In Sebi parlance, its observation implies its go-ahead to launch the IPO. Under the pre-filing route, there is no pressure on the company to go for an IPO, experts said. Moreover, unlike the traditional route where companies have to launch the IPO within 12 months from the Sebi approval, or final observation; in the pre-filing route, an IPO can be floated within 18 months from the date of Sebi's final comments.
JSW Infrastructure Ltd has filed a draft red herring prospectus with the Sebi to raise around Rs 2,800 crore through an initial public offering. The entire IPO will be a pure fresh issue. Out of the total proceeds Rs 880-crore public issue will be used to invest in its arm JSW Dharamtar Port Pvt Ltd and JSW Jaigarh Port Ltd for repayment of their debt. The company will use part of the proceeds for investment in its arm JSW Jaigarh Port Ltd for financing its capital expenditure requirement for proposed expansion and upgrade. It will use Rs 868.03 crore for LPG Terminal project, Rs 59.40 crore will be used to set up an electric sub station, Rs 102.58 crore will be used to purchase and installation of dredger. The firm will also use Rs 151.63 crore for investment in its arm JSW Mangalore Container Terminal Pvt Ltd for financing its capital expenditure requirement. JM Financial, Axis Capital, Credit Suisse, Dam Capital Advisors, HSBC, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets are the lead managers to the issue. JSW Infrastructure offers a range of maritime services such as cargo handling, storage solutions, logistics services, and other value-added services to its clients. The company is expanding to become a comprehensive logistics solutions provider. In line with this goal, it develops and manages ports and port terminals under Port Concession agreements. These concessions have extended periods, usually lasting between 30 to 50 years, which provide the company with a long-term outlook on revenue streams. As of December 2022, JSW Infrastructure handles nine port concessions in India with cargo handling capacity at 153.43 MTA, while the cargo volume it handled was 61.96 MMT.
TVS Supply Chain Solutions, part of TVS Mobility Group, has re-filed draft IPO papers with capital markets regulator Sebi and cut the fresh issuance size to Rs 750 crore from Rs 2,000 crore planned earlier. The company, which got approval from Sebi in May 2022 to float the IPO, did not launch the issue amid weak market conditions. It had earlier filed its draft papers in February 2022. As per rules, a firm gets one year to hit the primary market after receiving an approval from Sebi. In case a firm fails to launch an IPO during this period, it has to refile the prospectus with the regulator to seek fresh clearance. According to the DRHP uploaded on Sebi's website on Wednesday, TVS Supply Chain Solutions' initial share-sale consists of a fresh issue of equity shares aggregating up to Rs 750 crore and an OFS of over 2 crore equity shares by promoters and existing shareholders. Those offering shares in the OFS include Omega TC Holdings Pte. Ltd, Tata Capital Financial Services Ltd, Mahogany Singapore Company Pte. Ltd, TVS Motor Company Limited, Kotak Special Situations Fund, Andrew Jones, Ramalingam Shankar, Ethirajan Balaji, Dinesh Narayan and Sargunaraj Ravichandran.
Fincare Small Finance Bank has filed a DRHP with the capital markets regulator Sebi again on May 1, to raise funds via an IPO. The public issue comprises a fresh issuance of shares worth Rs 625 crore and OFS of 1.7 crore equity shares by promoter and investors. The small finance bank is going to utilise fresh issue proceeds for augmenting its Tier-1 capital base to meet future capital requirements. ICICI Securities, Axis Capital, IIFL Securities, SBI Capital Markets, and Ambit are acting as book-running lead managers to the issue.
TPG-backed RR Kabel, India’s fifth largest branded wires and cables manufacturer, has filed its DRHP papers with capital markets regulator SEBI to raise funds through an IPO. According to the draft papers, the fresh issue aggregates up to Rs 225 crore and an offer for sale of up to 17,236,808 equity shares of the face value of Rs 5 each. RR Kabel proposes to utilise the net proceeds towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the Company from banks and financial institutions estimated to be Rs 170 crores. TPG Asia VII SF Pte Ltd, a US-based private equity firm, which holds a 20.99% stake in RR Kabel, will be selling some of its stake in the company through the IPO. R R Kabel is a part of R R Global Group with revenues of Rs 4,386 crore in FY22. The company’s revenue for the nine months ending December 2022 stood at Rs 4,083 crore. Net profit came in at Rs 214 crore and Rs 125 crore for FY22 and nine months ending December 2022, respectively. The firm is a leading company in the Indian consumer electrical industry comprising wires and cables and fast-moving electrical goods (FMEG), with an operating history of over 20 years in India. RR Kabel is also the fastest-growing consumer electrical company among our peers in India, growing at a CAGR of 33% between FY20 and FY22, as per the Technopak report.
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Silver exchange-traded funds (ETFs) are becoming popular among investors as the newly-created investment class has attained an asset base of nearly Rs 1,800 crore till March 2023 within one and half years of the introduction of the product by markets regulator Sebi. Silver ETFs are following the trajectory of Gold ETFs as the ETF route offers the assurance of metal purity, no storage hassles of the physical metal, and ease of buying, Hemen Bhatia, Head - ETF, Nippon Life India Asset Management Ltd, said. According to data from the Association of Mutual Funds in India (Amfi), the industry has seven silver ETFs-- Nippon India Silver ETF, ICICI Prudential Silver ETF, Aditya Birla Sun Life Silver ETF, HDFC Silver ETF, Axis Silver ETF, Kotak Silver ETF, and DSP Silver ETF-- with an asset under management of Rs 1,792 crore as of March 2023. All these funds were launched in 2022. In addition to these, UTI Silver Exchange Traded Fund was launched in April this year. Of these Rs 1,792 crore asset bases, Nippon India Silver ETF and ICICI Prudential Silver ETF contributed 80 per cent of the total AUM.
HSBC Mutual Fund has appointed Kailash Kulkarni as the new CEO of the fund house. Prior to this, he was Co-CEO of the company. Before HSBC MF, Kailash was the CEO of L&T Mutual Fund which merged with HSBC Mutual Fund last year. Kailash has extensive sales and distribution experience in mutual fund and insurance. In the past, he has worked with Kotak Mutual Fund and MetLife India Insurance.
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