In the week gone by, global market remained cautious following Fed tapering Isignals. Fed Chairman Jerome Powell said that the economy is both healthy enough and in need of tighter monetary policy, which likely will entail rate hikes, tapering of asset purchases and a smaller balance sheet. The U.S. consumer price index rose 7% in December from 12 months ago, meaning annual inflation hit its fastest incline for nearly 40 years. Even it could be seen that the dollar headed for its largest weekly fall in eight months as investors trimmed long positions. It is expected that the long-term earnings potential of the relatively expensive technology companies could become less appealing amid elevated inflation. Goldman Sachs cut its 2022 forecast for China economic growth to 4.3%, down from 4.8% previously. Meanwhile, the country’s trade surplus in December swelled 20.8% over a year earlier to a monthly record of $94.4 billion.
Back home, domestic market too witnessed volatile trade amid weak cues from global markets. However, market participants expressed optimism around the Union Budget, which they expect to further support the economic recovery. A strong domestic economy is considered positive for small and mid-sized companies. On the data front, the retail inflation, measured by the Consumer Price Index (CPI), rose to a five-month high of 5.59 per cent in December. December wholesale price index (WPI) inflation for December 2021 was at 13.56% against 14.23% MoM. Separately, the factory output, measured in terms of Index of Industrial Production (IIP), grew by 1.4 per cent in November. As per the market buzz, Life Insurance Corporation, India's largest insurer, is likely to file a draft prospectus as early as end of this month and begin issuing public shares by mid-March. FIIs again now are in selling mode and this may act as temporary headwind for some large private companied as they have large holding.
On the commodity market front, CRB remained firm on weakness in dollar index amid supply crunch issues. Dollar Index fell to a two-month low, making commodities more attractive for overseas investors. The focus in China is moving away from worries about the property sector slowdown to increased signs that it is going to provide stimulus and support to the economy, some of which will benefit industrial metals. Bullion counter may take support from fall in dollar index and US treasury Yield. Gold and silver can trade in the range of 47200-48800 and 60500- 63000 levels respectively. Crude will see value buying from lower levels. Natural gas can trade in a range of 305- 365 levels. Natural gas and Guarseed options are going to be launched on 17th of Jan on MCX and NCDEX respectively. BoJ Interest Rate Decision and BoJ Quarterly Outlook Report of Japan, Employment Change and Unemployment Rate of UK, ZEW Economic Sentiment Index of Germany and Euro Area, Westpac Consumer Confidence Index, Employment Change and Unemployment Rate of Australia, Inflation Rate of Germany, Core Inflation Rate and ECB Monetary Policy Meeting Accounts of Euro Area, Inflation Rate of Japan, Core Inflation Rate and Inflation Rate of Canada etc. are many triggers scheduled this week, which will give further direction.
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.
Strong balance sheet with optimize operating capacity and management focus to increase market share would give strong base for the growth of the company. Ongoing capacity expansion plan is expected to provide it the next leg of growth to the company. The company has been constantly focusing on various cost reduction initiatives and improving productivity without compromising on quality. Thus, it is expected that the stock will see a price target of Rs.1187 in 8 to 10 months time frame on a current P/bv of 3.70x and FY23 BVPS of Rs.320.83.
The company is doing well in EPC segment with good order book, healthy return ratios and clean balance sheet. The company is one of the key beneficiaries of the government’s continuous thrust on road sector. The company has been strengthening its balance sheet with rising cash balances and improving working capital levels. The management of the company has guided for sustaining current margins and key focus would be on road (EPC, HAM, both) with some inflows expected from other infrastructure verticals. Thus, it is expected that the stock will see a price target of Rs.365 in 8 to 10 months’ time frame on a current P/BVx of 2.36x and FY23 BVPS (Book Value per Share) of Rs.154.51.
The stock closed at Rs 220.10 on 14th January, 2022. It made a 52-week low at Rs 115.85 on 25th March, 2021 and a 52- week high of Rs. 228.00 on 12th November, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 183.29.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, stock has formed a “Continuation Triangle” pattern on weekly charts which is bullish in nature. Last week, stock has given the pattern breakout along with high volumes and also has managed to close above the breakout levels which indicate buying is aggressive for the stock. Therefore, one can buy in the range of 215-218 levels for the upside target of 240-246 levels with SL below 203 levels.
The stock closed at Rs 141.30 on 14th January, 2022. It made a 52-week low of Rs 73.10 on 28th January, 2021 and a 52- week high of Rs. 153.00 on 23rd June, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 115.89.
As we can see on chart that stock was formed an “Inverse Head and Shoulder” pattern on weekly charts, which is considered to be bullish. Last week, the stock rallied approx. 7% and conclusively has given the pattern breakout with volumes and also has managed to close above the same so further buying is expected from the stock from current levels. On the technical indicators’ front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 137-139 levels for the upside target of 158-163 levels with SL below 126 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
Nifty indices ended in green territory for the fourth consecutive week as Banking, IT & Reality counter supported the up move in the week gone by. From derivative front, Call & put writers remained active at 18200 strike while 18000 strike had maximum open interest concentration of nearly 46 lakh shares in puts. Implied volatility (IV) of calls closed at 16.61 % while that for put options closed at 17.85%. The Nifty VIX for the week closed at 16.71%. PCR OI for the week closed at 1.67. From technical front, Nifty can be seen trading in a rising channel with formation of higher high pattern and is expected to continue its momentum towards 18500 levels in upcoming sessions. On downside, 18100 & 18000 levels would act as an immediate support for the index. We keep our bullish stance intact for Indian markets and advice traders to use any dip to create fresh long positions.
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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 futures (Apr) seen corrections last week after it touched 7-year high prices in the previous week. We expect the prices to trade sideways in the range of 9970- 10700. Currently, prices are up by over 72% y/y on expectation of lower production due to excess rains in growing areas. Prices are higher due to steady demand from the overseas market as new season turmeric is arriving in the physical market. In view of heavy rains in the growing areas, particularly Maharashtra, crop’s yield could be lower and delayed by two to three weeks. The production could be lower in Karnataka by about 20-25% due to disease. In the first 7-months (Apr-Oct) of FY 2021/22, exports down 23% to 89,850 tons Vs last year but higher by 6.5%, if compared with 5-year average. Jeera futures (Mar) closed higher for the third successive week and jumped to 4-years higher last week. There is surging demand from the physical markets on reports of lower production in coming season. It is likely to trade higher towards 19500 with support at 17250. Currently prices are higher by 35% y/y on reports of drop in area and improving domestic demand. As per respective Agriculture Dept data, area under jeera in Gujarat as on 10-Jan was only 3.07 lakh ha Vs 4.69 lakh hac last year while in Rajasthan jeera is sown in 5.30 lakh hac. As per the state farm department's second advance estimate Jeera output in Gujarat, the top producer, was pegged at 236,980 tn in 2021-22, sharply lower from 399,390 tn a year ago. As per Govt. data, exports of jeera for Apr-Oct down by 17% Y/Y at 1.50 lakh tonnes compared to 1.82 lt last year. Dhaniya futures (Apr) closed higher for third consecutive week and touched 7-year high prices on reports of crop loss due to frequent rains and cold climates which is expected to affect production in coming year. It is likely to trade higher towards 10600 with support at 9800. Currently prices are higher by 66% y/y due to lower acreage compare to normal. Output is seen lower because of a drop in acreage in key growing states as farmers shift to other crops. Area under coriander in Gujarat as on 10-Jan is pegged at 1,25,444 hac which is 145% area compared to normal area but less than last year 1,40,400 hac. As per govt. data, exports have been down 12.7% during Apr-Oct period to 28,800 tonnes Vs 33,000 tonnes last year but 8.6% higher compared to 5-year average.
Gold prices were poised for their best weekly gain since last November, as investors await economic data that could provide clarity about U.S. Federal Reserve's tapering policy, while a weaker dollar and Treasury yields supported bullion. The overall gold market reaction to the data was rather muted since it did not change the narrative of what the Fed is likely to do in March. Higher interest rates tend to dim appeal of gold, which pays no interest. Equity traders are nervous about the Fed tightening its monetary policy. The PPI data being mostly below expectations and a bump in jobless claims supported the idea that it could possibly make the Fed pump the brakes on its "hawkish rhetoric". Fed Governor Lael Brainard became the latest and most senior U.S. central banker to signal that the Fed is getting ready to start raising interest rates in March. Gold is considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion. Gold is considered as an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion. On the technical front, Comex gold is trading well above the psychological level of $1820, on shorter frame , it looks positive and may extend the rally till $1840/$1845 whereas take support near $1780 levels. Comex silver may also trade with positive and follow the footsteps of gold where it may target $24.30 with the support of $22.60. On MCX Gold may trade with positive bias where it may take support near 46600 and could face resistance near 49100. Silver may trade in the range of 60600-64500.
Oil prices that rallied 50% in 2021 will power further ahead this year, saying a lack of production capacity and limited investment in the sector could lift crude to $90 or even above $100 a barrel. Though the Omicron coronavirus variant has pushed COVID-19 cases far above peaks hit last year, analysts say oil prices will be supported by the reluctance of many governments to restore the strict restrictions that hammered the global economy when the pandemic took hold in 2020. U.S. crude oil output is expected to rise 610,000 barrels per day to 12.41 million bpd in 2023, the government said in its first forecast for next year. OPEC+, are gradually relaxing the output cuts implemented when demand collapsed in 2020. Omani Oil Minister Mohammed Al Rumhi also said that the group doesn't want to see $100 barrels of oil. Ahead in the week prices may continue the bull trend after taking correction and range would be 5700- 6380. Natural gas prices rallied as a bitter cold swept across the United States, fuelling heightened heating demand. Models continue to advertise a very strong cold pattern in the eastern two thirds of the nation as we move through the final third of the month, with no sign yet of any re-warming” at the end of the 15-day outlook period. A strong ridge over the eastern Pacific and Alaska is the primary influence on the pattern, directing air masses from the polar region toward the Midwest, South and East. On technical front, prices may continue to witness both side movements with higher volatility and range would be 290-370. Buying near support and selling near resistance would be strategy.
Base metals may trade with high volatility. The industrial metals may come under pressure due to rising infection of covid-19 variant Omicron globally and by prospects of an interest rate hike by the U.S. Federal Reserve as soon as March. An early rate hike could trim liquidity in financial markets and slow down recovery in the world's biggest economy. However tight supply and the focus in China is moving away from worries about the property sector slowdown to increased signs that China is going to provide stimulus and support to the economy, which will benefit some of industrial metals. The central bank of top metals consumer China is set to unveil more steps to support economic growth, which is expected to fall to 5.2% this year, a Reuters poll found. Copper may trade in the range 740-765 levels. Imports of unwrought copper and copper products in 2021 totalled 5.53 million tonnes, Customs data showed, down 17.2% from 2020's record volume of 6.68 million tonnes. Zinc can move towards 300 with support of 282 levels. Aluminum may move towards 242 with support of 225 on persisting supply concern. Soaring electricity prices in Europe have triggered cuts in energy-intensive production of aluminium. Out of Europe's total aluminium capacity of 4.5 million tonnes, Bank of America reckons about 650,000 tonnes have been cut so far while CRU estimates 729,000 tonnes. Lead can move in the range of 185-195. Nickel may trade in the range of 1590-1670. Low inventories on both the LME and the SHFE warehouses and expectations that policy easing in China and strong demand from nickel smelters supplying the electric vehicle battery industry will underpin nickel prices.
Cotton futures (Jan) corrected last week after five consecutive weekly gains due to profit booking. Slow pace of cotton exports and improving arrivals due to higher prices have helped some corrections. It is likely to trade higher towards 37500 with support at 34460. Currently, domestic cotton prices are high y/y 67% due to concerns over production, slow arrivals and better demand for exports. Spinning mills are buying cotton aggressively on robust yarn demand. As per market sources, daily arrivals of cotton dropping to 1.75 lakh bales compared to 2.50 lakh bales last year. USDA in its monthly report cut production in India to 27.5 million bales from 28 million bales last month while in the US - largest exporter, production was cut by 3.61% to 17.6 million bales. Guar seed futures (Feb) closed higher for the second successive week on improving demand. It is expected to trade higher towards 6600 levels with support at 6170. Currently, prices are up around 64% y/y on lower physical arrivals this season, multi-year lower stocks and good export demand. Since Dec, the prices have gradually in uptrend due to increasing in the export demand. In Oct, Guar gum exports are higher by 60% y/y at 27,150 tonnes while exports in 2021/22 (Apr-Oct) are up by 46% y/y at 1.85 lakh tonnes but still not reached the pre-covid levels. Castor Seed (Feb) jumped close to 6% last week after six consecutive weekly losses as physical demand return on lower prices and there is expectation that the production in 2021/22 in Gujarat will be lower this season than it was expected earlier. Thus, likely to trade in a range 6100-6520. The prices are higher by 41% y/y, as production of castor expected to be lowest in last three years due to lower acreage at 15.98 lakh tonnes, according to advance estimates from Farm ministry. Gujarat agriculture department’s second advance estimate cut castor seed production by 1 lakh tonnes to 13.02 lakh tonnes compared 14 lt in the first estimate. Last year production was 13.45 lakh tonnes. The exports of castor oil are lower during the last three months due to higher prices. Exports during Sep-Nov down by 16% at 1.39 lakh tonnes compared to 1.65 lt last year. Similarly, castor meal exports fall by 32% during (Aug-Nov) y/y.
SILVER MCX (MAR) contract closed at Rs. 61920 on 13th Jan’2022. The contract made its high of Rs. 63239.00 on 28th Dec’2021 and a low of Rs.60012.00 on 07th Jan’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 61840.22. On the daily chart, the commodity has Relative Strength Index (14-day) value of 53.91.
One can buy near Rs. 61200 for a target of Rs. 63500 with the stop loss of 60000.
CRUDE OIL MCX (FEB) contract closed at Rs. 6056 on 13th Jan’2021. The contract made its high of Rs. 6122.00 on 13th Jan’2022 and a low of Rs. 4710.00 on 02nd Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 5765.11. On the daily chart, the commodity has Relative Strength Index (14-day) value of 73.891.
One can buy near Rs. 6000 for a target of Rs. 6450 with the stop loss of Rs. 5800.
JEERA NCDEX (MAR)contract was closed at Rs. 18235 on 13th Jan’2022. The contract made its high of Rs. 18635.00 on 13th Jan’2022 and a low of Rs. 15430.00 on 03rd Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 16920.81. On the daily chart, the commodity has Relative Strength Index (14-day) value of 77.773.
One can buy near Rs. 17900 for a target of Rs. 18700 with the stop loss of Rs 17500.
CRB remained traded firm on weakness in dollar index amid supply crunch issues. Dollar Index fell to a two-month low, making commodities more attractive for overseas investors. U.S. benchmark 10-year yields also slipped, moving away from two-year highs; made recently. Gold prices surged high, as the U.S. dollar and Treasury yields retreated after inflation data came in line with expectations and reiterated the need for a quicker interest rate hike. Back home, gold prices upside was limited as INR appreciated from above 76 to near 74. Silver too gave a slow move but crossed 62000 levels. Base metals mostly trended higher after the US dollar index fell, though the US inflation rate hit a 40-year high, which was in line with market estimate. Nickel prices surged to their highest in a decade on Wednesday and copper broke back through $10,000 a tonne in LME on renewed supply fears as inventories dwindle. Industrial metals were also buoyed by easing concerns over economic growth in top metals consumer China. The focus in China is moving away from worries about the property sector slowdown to increased signs that they are going to provide stimulus and support to the economy, some of which will benefit industrial metals. Energy counter heat up again on cold blast amid supply crunch. Cold temperatures that have increased the demand for heat have catapulted U.S. natural gas futures to their strongest start to a year yet. The catalyst behind the increase in natural gas futures is a batch of freakishly cold weather hitting the East Coast, along with a winter storm that is now barrelling toward the south. The United States Natural Gas Fund surged 13.7%, breaking back above both its short- and long-term resistances at the 50- and 200-day simple moving averages, respectively. However, it saw some profit booking later on. Oil prices hit two-month highs on Wednesday on tight supply as crude inventories in the United States, the world's top consumer, fell to their lowest since 2018, and as the dollar weakened and worries eased about the Omicron coronavirus variant. The falling dollar was another main driver of higher oil prices, overtaking even the EIA draw. A weaker greenback makes dollar-denominated oil contracts cheaper for holders of other currencies.
In agri, cotton prices moved up, kapas was in a range whereas cotton oil seeds cake was marginally down. Projected world production is reduced as lower U.S. production and a 500,000-bale decline in India’s crop more than offsets increase for China, Australia, and Pakistan. Currently, Guar prices are up 64% y/y on expectation of lowest production in last 5 years, multi-year lower stocks and improving export demand. In Oct, Guar gum exports are higher by 60% y/y at 27,150 tonnes while exports in 2021/22 (Apr-Oct) are up by 46% y/y at 1.85 lakh tonnes. Castor appreciated for continuous 6th week, prices are recovering in 2022 and higher by 37.8% y/y, as production of castor expected to be lowest in last three years.
Natural gas is a vital component of the world's energy supply. It is one of the cleanest, safest, and the most useful of all energy sources. Given its growing resource base and relatively low carbon emissions compared with other fossil fuels, natural gas is playing a greater role in the world energy mix. It is increasingly being used as a source of energy for generating electricity through gas turbines and steam turbines. CNG is commonly being used as a fuel for public transport vehicles. In addition, natural gas is used as a base ingredient in the manufacturing of ammonia, anti-freeze, fabrics, glass, steel, plastics, and paint.
To provide a better investment and hedging tool, MCX has started the option trading in natural gas. MCX, the country’s largest commodity exchange, has received Sebi approval for launching options trading on Natural Gas (1,250 MMBTU) futures with two contracts expiring next February 21 and March 24 will be available for trading from January 17.
On expiry, the first contract will devolve in futures on February 22, said the exchange. The option type is European Call & Put Options styled which can be exercised only on the expiration date. It is a fairly easy to use product and gives a lot of flexibility. The trading unit is 1250 mmBtu same as futures contract. Base price shall be theoretical price on Black 76 option pricing model on the first day of the contract. On all other days, it shall be previous day’s Daily Settlement Price of the contract.
Contract Specification for Natural Gas
Global natural gas demand
Natural gas demand is expected to reach close to 4300 bcm by 2024, adding 350 bcm or 9% compared to its 2020 low point. The global gas consumption growth rate stands at 3.6% in 2021. China, India and emerging Asia account for almost half of the demand growth globally in 2020-2024.
Winter 2021/22 opens with record high seasonal gas prices, as the combination of a strong recovery in demand, extreme weather events and unplanned supply outages have led to higher prices. A growing and more flexible liquefied natural gas (LNG) market has enabled global competition for gas supply, a situation that wasn’t possible when gas was supplied by pipeline or LNG under long-term contracts. Europe and Asia are competing for the same LNG supply, pushing prices up in both markets and extending today’s tight market to the United States.
Inevitably Rupee closed the week at nearly three month high amid dollar got hammered after US December inflation print. Accordingly US December inflation print came at 7% exactly what consensus was. Apart from headline CPI, real average hourly earnings decreased 2.4% from December 2020 to December 2021 which prompted markets to rethink to cast doubt about Fed’s aggressive plans for raising fed fund rates this year. The Dollar Index fell to the lowest level of 94.90 since early November 2021. However, possibly strong RBI intervention to prevent further appreciation in rupee along with Importers dollar demand pushed rupee to fell briefly from its three month high. We think in near term, USDINR likely to hold the range of 73.75 - 74.00 and may head higher towards 74.60-74.75 in coming days. Meanwhile pound continues to trade stronger than the US dollar on broad market backdrop. GBPUSD traded to a high just below the 200-DMA of 1.3750 failing to break through. While EURUSD reversed its bearish trend after breaking through the 55-DMA. The currency pair gained traction after breaking through intraday resistance level of 1.1453 (Jan 12 high). EURUSD continues to trade above the 1.1453 level. Next week we can expect the upside in euro-rupee and pound-rupee will continue as well.
USD/INR (JAN) contract closed at 74.0300 on 14-Jan-21. The contract made its high of 74.4075 on 10-Jan-21 and a low of 73.8775 on 12-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.6550.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 37.20.One can buy at 74.00 for the target of 75.00 with the stop loss of 73.50.
GBP/INR (JAN) contract closed at 101.7050 on 14-Jan-21. The contract made its high of 101.7400 on 13-Jan-21 and a low of 100.6050 on 11-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.9150.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 54.90. One can sell at 102.25 for a target of 101.25 with the stop loss of 102.75.
| 13th JAN | Fed official open to more than three US rate rises this year |
| 13th JAN | US jobs recovery is sending a hawkish signal |
| 12th JAN | US inflation soars to 7% for first time since 1982 |
| 11th JAN | High inflation is ‘severe threat’ to US jobs recovery, Powell warns |
| 11th JAN | Inflation in rich economies surges to a 25-year high |
| 11th JAN | Fed’s second-in-command resigns over trading scandal |
| 10th JAN | Fed prepares to shrink $9tn balance sheet after pandemic largesse |
| 10th JAN | Russia warns west to back down over Ukraine |
| 10th JAN | UK urged to impose windfall tax on offshore oil and gas operators |
EUR/INR (JAN) contract closed at 84.8750 on 14-Jan-21. The contract made its high of 84.9575 on 13-Jan-21 and a low of 83.9600 on 11-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 84.7575.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 54.34. One can buy at 84.80 for a target of 85.80 with the stop loss of 84.30.
JPY/INR (JAN) contract closed at 64.6825 on 14-Jan-21. The contract made its high of 64.7350 on 13-Jan-21 and a low of 64.0950 on 12-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.0550.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 50.86. One can buy at 65.00 for a target of 66.00 with the stop loss of 64.50.
Payments solutions provider AGS Transact Technologies has cut its initial public offering (IPO) size to Rs 680 crore from Rs 800 crore planned earlier. The first IPO issue of the year will open on January 19 and close on January 21. The issue will entirely be an offer for sale wherein promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore. Earlier, he was planning to sell around Rs 800 crore. AGS Transact Technologies provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets. The IPO is expected to list on February 1.
Organic food products company Sresta Natural Bioproducts, backed by private equity firm Peepul Capital and venture capital firm VenturEast, has filed draft papers with the capital markets regulator Sebi to raise funds through a public issue. The maiden public issue will comprise fresh issuance of shares worth Rs 50 crore, and an offer-for-sale of 70.3 lakh equity shares by investors, including Peepul Capital Fund III LLC and Bio Fund. Peepul Capital Fund III LLC will offload 22.50 lakh equity shares, while Ventureast Life Fund III LLC, Ventureast Trustee Company Private Limited (acting on behalf of the biotechnology venture fund), and Ventureast Trustee Company Private Limited together will sell 47.8 lakh shares through the OFS route. Incorporated in 2004, Sresta Natural Bioproducts owns 24 Mantra. It is the largest brand in the packaged organic food segment (excluding organic packaged food market beverage and packaged tea and coffee) by market share with approximately 29 percent of the pie as of FY20 figures. It offers all types of grocery staples, spices and condiments, edible oils, packaged food, beverages, and meal accompaniments. It is engaged in procuring, processing, manufacturing, marketing and research and development of organic food products. It is also one of the leading Indian organic food brands in the US with presence in 39 states across Indian ethnic stores and mainstream stores and has presence in 34 countries as of September 30, 2021.
Data analytics company Course5 Intelligence has filed draft red herring prospectus with the capital markets regulator SEBI, to raise funds through initial public offering (IPO). The company is planning to mop up Rs 600 crore via public offer that comprises a fresh issuance of shares worth Rs 300 crore and an offer for sale of Rs 300 crore by promoters. Course5 Intelligence may also raise Rs 60 crore in a pre-IPO placement, before filing the red herring prospectus with the Registrar of Companies. If the said pre-IPO placement is completed, then accordingly the fresh issue size will get reduced to the extent of such pre-IPO placement. The company intends to utilise fresh issue proceeds for inorganic growth initiatives, working capital requirements, product and IP initiatives, and expansion of geographical footprint, besides general corporate purposes. Course5 is an asset-light organization and is not required to make substantial investments into fixed assets.
Sanathan Textiles has filed draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise funds via initial public offering (IPO). The IPO comprises a fresh issue of Rs 500 crore by the company, and an offer for sale of 1.14 crore equity shares by promoters. It is a 100 percent promoters' owned entity. The offer for sale (OFS) consists of 23,51,100 equity shares by Pareshkumar Dattani, 26,59,500 equity shares by Ajaykumar Dattani, 25,57,500 equity shares by Anilkumar Dattani, and 28,27,500 equity shares by Dineshkumar Dattani. Promoter group shareholders will also offload their equity shares via offer for sale including 18,000 shares each by Vajubhai Investments, Vallabhdas Dattani HUF, and Dineshkumar Dattani HUF. Among other promoters, Sonali Dattani, Beena Dattani, Anilkumar Dattani HUF, Pareshkumar V Dattani HUF, and Mikesh Dattani together will also sell 9.5 lakh shares via OFS. Sanathan Textiles may also consider a pre-IPO placement of up to Rs 100 crore before filing red herring prospectus (RHP) with the IPO registrar. If the said pre-IPO placement is executed, then accordingly the fresh issue amount in the IPO will get reduced. The company is expected to raise Rs 1,200-1,300 crore through its IPO, as per market sources.
Federal Bank subsidiary Fedbank Financial Services Ltd (FedFina) has initiated the process of an initial public offering (IPO), the bank said on Tuesday. The board of directors of the bank FedFina in a meeting on January 11, 2022, has approved initiating the process of an initial public offering (IPO) by way of fresh issue and offer for sale, Federal Bank said in a regulatory filing. The board approval is subject to market conditions and receipt of applicable approvals, including that of Sebi and other considerations, it said. The size of the IPO, portion of an offer for sale (if any), price and other details with respect to the proposed IPO by FedFina will be determined in due course.
Waaree Energies, which claims to be India’s largest solar module manufacturer, said it has received approval from markets regulator Sebi to launch its initial public offering (IPO). The issue size will be Rs 1,500 crore. In September, the company had filed draft papers with Sebi. The IPO comprises fresh issue of shares worth Rs 1,350 crore, and an offer for sale up to 4,007,500 equity shares by the company's promoters and existing shareholders. The company may consider a further issue of equity shares including a preferential issue aggregating up to Rs 270 crore. If such placement is completed, the fresh issue size will be reduced. Proceeds of the issue will be used to the extent of Rs 910.31 crore for the solar cell manufacturing unit and Rs 141.24 crore will be used for solar module facility. The remaining proceeds will be used for general corporate purposes. Waaree Energies is a major player in the solar energy industry in India focused on photovoltaic (PV) module manufacturing, with an aggregate installed capacity of 2 GW as of March 2021. It currently operates three manufacturing facilities comprising four factories in India at Surat, Tumb and Nandigram.
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The share of assets under management (AUM) of the funds linked to the systematic investment plans (SIPs) reached a record 15% of the AUM of the mutual fund (MF) industry in December 2021, the data from the Association of Mutual Funds in India (AMFI) shows. The SIP AUM grew by 34.6% annually in the past five years compared with the 18% growth in the total MF AUM. At Rs 5.6 lakh crore, the SIP AUM was nearly a quarter of the AUM of equity MFs and 2% of the total market capitalisation of Indian equities. According to industry estimates, nearly 90% of SIP inflows are deployed in the equity funds. In 2021, the SIP linked funds saw an inflow of Rs 1.1 lakh crore. The SIP monthly book size expanded in each of the eight months to December. In the past five years, the cumulative SIP inflow was Rs 4.9 lakh crore, 1.6 times higher than the flow of foreign portfolio investors (FPIs). Average ticket size of a SIP investor was Rs 2,303 per account and its portfolio value was about Rs 1.2 lakh at the end of December 2021.
Aditya Birla Sun Life Mutual Fund on Wednesday announced the launch of Silver ETF and Silver ETF Fund of Fund (FoF). The new fund offer (NFO) of both the schemes will open on 13 January and close on 27 January. The minimum investment required during the NFO of Silver ETF is Rs 500; for Silver ETF Fund of Fund, the minimum investment amount required during NFO is Rs 100. The fund house said its purpose of launching the FoF along with the ETF is that those who don't have a demat account can also participate in this asset class through the FoF. The ETF would track physical silver and the performance of the scheme will be benchmarked against the price of silver in rupee.
Asset management company ICICI Prudential Mutual Fund has announced the launch of the country's first silver ETF that will invest in physical silver and silver-related instruments. The new fund offer (NFO) is now open for subscription and will conclude on January 19, documents showed. The ICICI Prudential Silver ETF is an open ended scheme that will track the domestic prices of silver. The scheme will invest its proceeds in physical silver and silver-related instruments. The investment objective of the scheme is to generate returns that are in line with the performance of physical silver in domestic prices as derived from the LBMA (London Bullion Market Association) AM fixing prices.
SBI Mutual Fund on Monday launched a CPSE Bond Plus SDL index fund, an open-ended targeted maturity index fund investing in the constituents of the Nifty CPSE Bond Plus SDL Sep 2026 index. The new fund, which tracks the state development loans (SDL) September 2026 50:50, will close its subscription on January 17, the AMC said in a statement. The scheme seeks to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The scheme will invest 95-100 per cent in securities covered by Nifty CPSE Bond Plus SDL September 2026 50:50 index. The remaining five per cent in G-secs maturing on or before September 2026, money market instruments including triparty repo and units of liquid mutual funds, it said.
Kotak Mutual Fund on Thursday launched an Exchange Traded Fund (ETF) named Kotak Midcap 50 ETF, an open-ended scheme that will track the Nifty Midcap 50 Index. The new fund is benchmarked against the Nifty Midcap 50 Index TRI. The new fund offer (NFO) of the scheme is now open for subscription and will close on January 20. Investors can invest a minimum amount of Rs 5,000 during the NFO period. The Kotak Midcap 50 ETF will replicate the Nifty Midcap 50 Index, which includes the top 50 companies based on full market capitalisation from Nifty Midcap 150 Index with preference given to those stocks on which derivative contracts are available on the National Stock Exchange.
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