In the week gone by, global stock markets witnessed a volatile trade with the S&P 500 (on Thursday) seeing the biggest daily percentage drop since February 13, after US Federal Reserve officials took a cautious approach in comments on the outlook for interest rate cuts. Besides, the rising geopolitical tensions also dented the sentiments. Recently, Israeli Prime Minister Benjamin Netanyahu vowed to operate against Iran and its proxies in the face of imminent threat expected from Iran. The remarks come just days after Iran vowed to seek revenge for an alleged Israeli attack on its consulate in Syria. Investors right now are sort of taking a wait-and-see attitude. In another development, the US trade deficit widened for a second straight month in February. The trade deficit increased 1.9% to $68.9 billion. Data for January was revised slightly to show the trade gap rising to $67.6 billion instead of $67.4 billion as previously reported. Meanwhile, the number of Americans filing new claims for unemployment benefits increased to a two-month high last week. On the European Union front, the European stock markets made a downbeat start to the second quarter, pressured by healthcare shares, while investors parsed inflation data from the continent's largest economy Germany for clues on the timing of European Central Bank interest rate cuts. Now investors are assessing softening euro zone inflation data that cemented the case for European Central Bank interest rate cuts. While the ECB is expected to leave rates unchanged at its policy meeting next week, markets see a 71% chance of a 25-basis-points rate cut in June. Meanwhile, China set its growth target at 5% for 2024, but analysts have been skeptical of the world's second-largest economy meeting the mark. S&P Global Ratings expects China's GDP to grow 4.6% in 2024, slower than the 5.2% rate for 2023.
Back at home, domestic markets surged to record highs on Thursday, driven by buying in IT, consumer durables, and financials on expectations of strong corporate earnings. However, Friday saw some volatility ahead of the RBI's monetary policy announcement. The RBI's MPC maintained the key repo rate at 6.5%, continuing its "withdrawal of accommodation" stance due to inflation exceeding the 4% target. While RBI projects 7% growth for India in FY25, Governor Das cautioned of "evenly balanced" risks. The RBI's approach reflects a careful balancing act, aiming to ensure both economic stability and growth while navigating the turbulent global environment. This measured approach, striving for a balance between inflation control and economic stimulation, is expected to create a favorable environment for continued bullishness in Indian equities. However, markets will continue to take direction from both domestic and global developments.
On the commodity market front, this week saw a remarkable surge in commodity markets, leaving a lasting impression. The CRB index, representing the entire commodity spectrum, closed above 340, signifying a substantial rally. Gold continued its relentless ascent into uncharted territory, fueled by heightened safe-haven demand. Following suit, silver also surged and approached the 80,000 mark. Oil prices rose to five-month highs extended a rash of recent gains as the prospect of worsening geopolitical conditions in the Middle East presented more potential supply disruptions. OPEC+ also voted to maintain its current band of production cuts during a Wednesday meeting, presenting a tight outlook for crude in the nearterm. Gold and silver have already witnessed whopping rise but the trend is still of upside. They can trade in a range of 67500-72000 and 76000-83000 respectively; buying at dip should be the strategy. Crude oil may trade in upper band, however the upside should be capped near 7400-7600. Value buying can emerge in natural gas and the upside target should be of 170-180. FOMC minutes and Inflation data of US, BoC Interest Rate Decision, ECB Interest Rate Decision, etc are few important data scheduled this week.
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.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
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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.
The company has been generating healthy profit over the years and has UBL's strong financial profile on account of robust debt protection metrics, moderate working capital intensity and strong liquidity position. The management of the company continues to remain optimistic on the longterm growth potential of the industry, driven by increasing disposable income, favorable demographics and premiumisation. Thus, it is expected that the stock will see a price target of Rs.2107 in 8 to 10 months' time frame on current P/BV of 11.93x and FY25 BVPS of Rs.176.62.
The Company is seeing positive demand in both automotive and industrial divisions, and has achieved healthy growth in its key end-customer markets. According to the management, input cost inflationary pressures have started easing, which coupled with its cost optimization initiatives is expected to support margins. Thus, it is expected that the stock will see a price target of Rs.401 in 8 to 10 months' time frame on target P/BV of 2.6x and FY25 BVPS of Rs.154.40.
The stock closed at Rs.439.30 on 05th April, 2024. It made a 52-week low of Rs.278.85 on 28th April, 2023 and a 52-week high of Rs.453.40 on 04st April 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 394.
The stock managed to take support at its 200-days exponential moving average on daily time frame and exhibited a V-shape recovery with hitting its 52-week high of 453.40 last week. Technically, the stock has experienced a fresh breakout above the symmetrical triangle pattern accompanied by a sudden increase in trading volumes. The movement of prices indicates that there could be a continued rise in a momentum on the back of follow up buying. The positive divergences on secondary oscillators also points towards next up leg into the stock. Therefore, one can buy the stock in the range of 435- 440 levels for the upside target of 510-515 levels with SL below 390 levels.
The stock closed at Rs.644.30 on 05th April, 2024. It made a 52-week low at Rs.324.15 on 13th April, 2023 and a 52-week high of Rs.671.95 on 05th March 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 525.
In the previous month, the stock reached to its 52 week high of 671.95 but then saw a decline in prices back to around 560 levels due to profit booking. The stocks technically formed a double bottom pattern and quickly rebounded with a V-shaped recovery back to previous price levels. The stock is likely to continue moving upwards with renewed momentum as it is on the brink of a new breakout above the Inverted Head and Shoulder pattern on short-term charts. Therefore, one can buy the stock in the range of 640-645 levels for the upside target of 710-715 levels with SL below 600 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.
Charts by Reliable software
The recent market activity indicates a mixed but overall positive sentiment, with the Nifty trading near its record high and closing the week with more than 0.8% gain. Notably, Banknifty surged by 2.9% on a weekly basis, showcasing strength particularly after a robust rollover in the April series and RBI decision to keep the repo rate unchanged for the seventh time at 6.5%. Among sectors, small-cap, media, and metal indices emerged as major gainers, suggesting a broad-based positive sentiment in the market. Conversely, the FMCG sector lagged behind. From the derivative front, in Nifty options, the hefty call open interest was observed at the 22,800 and 22,500 strike, while the highest put open interest was at the 22,500 strike. For Banknifty, the highest call open interest was at the 48,500 strike, followed by 48,000 strike, with the highest put open interest at the 48,000 and 48,500 strike. Implied volatility (IV) for Nifty's call options settled at 10.80% and put options concluded at 11.27%. The India VIX, a crucial market volatility indicator, ended the week at 11.22%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.20 for the week. This week, Nifty is expected to oscillate within the range of 22200 to 22700 levels with some volatility on the cards. Traders are advised to use dips for creating fresh longs
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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 prices witnessed sharp recovery during the week tracking increased buying by stockists. Arrival pace was noted slower as compared to last year due to lower production in year 2024. Production is likely to be dropped by about 14% Y-o-Y due to lower area under turmeric amid tumbling yield and may stay in between 9.2-9.5 lakh tonnes. Major focus will be on ongoing harvesting activities which are likely to pick up in wake of drier weather condition ahead. Supplies have been below normal in recent week that boosted the market sentiments and buyers remained busy in active buying. Prevailing supply tightness is likely to lure stockists to buy turmeric at every dips in prices. However, reports of bleak exports in recent months is likely to cap the excessive gains as Turmeric export from India dropped 15% Y-o-y to 10.49 thousand tonnes in Jan'24 wherein total export during Apr'23-Jan'24 reported at 131.6 thousand tonnes down by 3.5% from previous year. Turmeric prices are expected to trade in range of 15300- 18500 levels.
Dhaniya prices traded higher with rise in domestic buying. Physical demand improved in wake of weaker production outlook. Robust export demand also helped prices to trade on positive bias.. India exported about 83.6 thousand tonnes of coriander during Apr'23-Jan'24 compared to 24.8 tonnes of previous year up by 215% Y-o-Y. Firmness in dhaniya is likely to remain intact due to bleak supply outlook as production is likely to be down about 10-15% Y-o-Y due to fall in area and yield. Arrivals are expected to pick up with advancement of harvesting activities. Dhaniya prices are likely to trade in range of 7500-8400.
Jeera futures traded down with increased supply outlook. Bumper production prospects and commencement of new crop weighed on market sentiments. Harvesting activities are expected to pick up due to drier weather condition in Gujarat and Rajasthan that will lead to rise in supplies. Losses are likely limited due to improved export prospects amid active buying by stockists. Global supplies have been tighter due to lower production in Syria and Turkey that boosted the Indian jeera exports in recent months. India exported 12.4 thousand tonnes of jeera in Jan'24 as compared to 8.04 thousand tonnes previous year higher by 54% Y-o-Y. Jeera production in India is expected to increase by 30% Y-oY in year 2024. Jeera prices are likely to trade in range of 21500-30000.
Gold prices have surged, recording three consecutive green candles and reaching record highs, driven by expectations of interest rate cuts by the Federal Reserve and sustained demand from central banks. Since mid-February, gold has been on an upward trend, setting records each day as investors anticipate benefits from the Fed's impending policy shift. Additionally, heightened geopolitical risks in the Middle East and Ukraine, coupled with continued central bank purchases, have provided further support to bullion. Central banks continued to increase their gold holdings in February, marking the ninth consecutive month of accumulation, with notable purchases from China, India, and Kazakhstan. Fed Chair Powell indicated the likelihood of lower policy interest rates later this year, aligning with market expectations, with a 62% probability of rate cuts starting in June. Lower interest rates diminish the opportunity cost of holding gold. Despite expectations for a strong U.S. dollar in the coming months, Russia's finance ministry plans to significantly increase its purchases of foreign currency and gold. Hedge funds concluded the first quarter with gains across various strategies, benefiting from rallies in stocks, commodities, and the dollar. African development banks are anticipated to be the primary funders of Caledonia Mining Corporation's proposed $250 million gold mine in Zimbabwe. On the COMEX, gold prices face resistance near $2310, with potential to push towards $2380 upon breaking above, while near-term support is observed near $2240. Silver prices on COMEX encounter hurdles near $27.50, with potential for a larger move towards $28.50 upon breaching this level, while support holds near $24.00. In the upcoming week, gold prices on MCX are expected to trade in the range of 67800-71300, while silver may trade within 76800-82000.
Crude oil marked its fourth consecutive weekly gain, buoyed by escalating geopolitical tensions in Europe and the Middle East, tightening supply concerns, and optimism surrounding global fuel demand growth amidst economic recoveries. Both benchmarks settled at their highest levels since October. While Israel has not claimed responsibility for the attack on Iran's embassy compound in Syria, on-going Ukrainian drone strikes on Russian refineries reportedly disrupted over 15% of Russia's fuel capacity, as per a NATO official. OPEC+ maintained its oil supply policy unchanged and urged certain countries to enhance compliance with output cuts. Furthermore, heavy oil supply tightened globally following reductions in exports by Mexico and the United Arab Emirates. Iran pledged retaliation against Israel for the embassy compound attack in Syria. On the demand side, robust US economic data boosted prospects for the world's leading oil consumer. Investors are eagerly awaiting a crucial US monthly jobs report. Looking ahead, volatility in oil prices is expected to persist, with the potential trading range forecasted at 6850-7380, recommending buying on dips. In the natural gas market, prices exhibited sideways movement as traders’ awaited direction from a federal report, projected to reveal a larger-than-usual storage withdrawal last week due to increased heating demand amid coolerthan-normal weather. Despite bearish forecasts for milder weather and ample gas in storage, prices remained relatively unchanged. Forecasts indicate increased demand for LNG export plants, potentially impacting prices. Meteorologists projected weather across the Lower 48 would remain cooler than normal through April 7 before turning warmer than normal from April 8-19. Anticipated movements for the week suggest a narrower range of 142-158.
Base metal prices climbed on multi month high due to rising supply risks, hopes for a global recovery in demand and weak dollar. Tentative signs of a return to growth in the global manufacturing sector are raising hopes that tightening market conditions could help base metals. However, profit booking at higher level cannot be denied as the weakness in the property sector, a major consumer of base metals, is still a matter of concern with sales by floor area sliding 20.5% in the January-February period from a year earlier, only slightly better than the 23.0% fall recorded for December. On the supply side, there are on-going doubts about whether Chinese smelters will make meaningful cuts to output, but production risks are continuing to stack up at mines around the world. So buy on dip will be the best strategy. Copper may trade in the range of 770-815 levels. Refined copper output is expected to lower from March to April because of higher-than-usual maintenance amid raw material supply tightness. That, coupled with a seasonal pickup in copper demand, will support prices. Zinc can trade in range of 220-245 levels. Lead can move in the range of 180-191 levels. Nexa Resources' recent announcements that it would suspend production at its Morro Agudo lead mine in Brazil from May 1 have increased the supply concerns. Aluminium can trade in the range of 215-228 levels. Montefusco cited market concerns about the pace of aluminum smelters in draught-hit Yunnan province restoring 500,000 metric tons of annual production, as dry weather continues to restrict hydropower supply. Steel long (Apr) is likely to trade in the range of 42800-44200 levels with negative bias.
It closed at Rs.233.65 on 04th Apr 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.221.76. On the daily chart, the commodity has Relative Strength Index (14-day) value of 70.331. Based on both indicators, it is giving a buy signal.
One can buy above Rs.235 for a target of Rs.255 with the stop loss of 225.
It closed at Rs.149.50 on 04th Apr 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.153.78. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.022. Based on both indicators, it is giving a sell signal.
One can sell near Rs.153 for a target of Rs.140 with the stop loss of 159.
It closed at Rs.5355.00 on 04th Apr 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.5303.70. On the daily chart, the commodity has Relative Strength Index (14-day) value of 59.951. Based on both indicators, it is giving a buy signal.
One can buy near Rs.5400 for a target of Rs.5700 with the stop loss of 5250.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, overall rally in commodities left a significant mark across various segments, with both precious metals and industrial commodities experiencing notable surges. CRB index, representing the entire commodity spectrum, closed above 340 Gold continued its relentless ascent into uncharted territory, fuelled by heightened safe-haven demand. Following suit, silver also surged and approached the 80,000 mark. Gold's rally, from 65,500 to 70,000 over three weeks, marked significant milestones, with both COMEX and MCX gold hitting record highs at $2312 and 69,918 respectively. Silver similarly exceeded $27.5 and 79,500 levels on COMEX and MCX. Base metals and energy commodities experienced notable gains as well. Copper prices rose to 14-month highs, buoyed by increasing optimism over top importer China, while potential production cuts by the country's biggest refiners presented a tighter outlook for supplies. China PMIs show improving factory activity, support copper prices. Crude oil prices surged from 6,350 to 7,200 within a month, while aluminium witnessed a substantial increase from 198 to 220 over six weeks. Despite marginal fluctuations, natural gas prices also saw an uptick. Oil prices rose to five-month highs extended a rash of recent gains as the prospect of worsening geopolitical conditions in the Middle East presented more potential supply disruptions. OPEC+ also voted to maintain its current band of production cuts during a Wednesday meeting, presenting a tight outlook for crude in the near-term.
Turning to agricultural commodities, castor seed prices corrected for the second consecutive week Crushing demand have been slowed down with recent gains in prices. Sun oil prices rebounded from a two-week low. Kapas experienced a temporary halt in its downward trend after four weeks, while cotton prices remained relatively stable with slight upward movement. Cotton Advisory board has projected total cotton production for year 2023-24 at 323.11 lakh bales against the 336.60 lakh bales of previous year. About 64 thousand bales arrived on 27nd March wherein cumulative arrivals in year 2023-24 reported at 246 lakh bales so far. Fresh buying was observed in the guar market due to improved export enquires. Demand for gum has increased at prevailing rate that will lead to rise in exports. In the spices segment, both jeera and dhaniya prices rebounded after a three-week decline, whereas turmeric prices continued their downward trajectory for the fourth consecutive week. Turmeric export from India dropped 15% Y-o-y to 10.49 thousand tonnes in Jan'24 wherein total export during Apr'23-Jan'24 reported at 131.6 thousand tonnes down by 3.5% from previous year. Fall in exports can be attributed to limited availability of quality produce and higher prices. Mentha prices saw marginal gains with shrinking supplies and weaker production outlook for upcoming season.
OPEC+ members led by Saudi Arabia and Russia agreed on April 03, 2024, to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, giving extra support to the market amid concerns over global growth and rising output outside the group. OPEC+ has implemented a series of output cuts since late 2022 to support the market amid rising output from the United States and other non-member producers and worries over demand as major economies grapple with high interest rates.
The amount of additional voluntary cuts
OPEC+ in November had agreed to the voluntary cuts totalling about 2.2 million bpd for the first quarter, led by Saudi Arabia rolling over a cut it had first made in July.
Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said it would extend its voluntary cut of 1 million barrels per day (bpd) through the end of June, leaving its output at around 9 million bpd.
Russia, which leads OPEC allies collectively known as OPEC+, will cut oil production and exports by an extra 471,000 bpd in the second quarter which will be follows in different ratio. In April 350 thousand barrels per day from production and 121 thousand barrels per day from exports. In May 400 thousand barrels per day from production and 71 thousand barrels per day from exports. In June 471 thousand barrels per day totally from production. Russia's voluntary production cut is in addition to the voluntary cut of 500 thousand barrels per day previously announced in April 2023, which extends until the end of December 2024.
For the second quarter, Iraq will extend its 220,000 bpd output cut, UAE will keep in place its 163,000 bpd output cut and Kuwait will maintain its 135,000 bpd output cut, the three OPEC producers said in separate statements. Algeria also said it would cut by 51,000 bpd and Oman by 42,000 bpd. Kazakhstan said it will extend its voluntary cuts of 82,000 bpd through the second quarter. Afterwards, in order to support market stability, these voluntary cuts will be returned gradually subject to market conditions. The total OPEC+ pledged cuts since 2022 stand at about 5.86 million bpd, equal to about 5.7% of daily world demand, according to Reuters calculations
Compliance with OPEC+ quota levels is still an issue, however. Iraq, OPEC's second-biggest producer pumped 4.17 MMbpd last month, 30,000 bpd less than in February, according to a Bloomberg survey. It's still about 170,000 bbl more than pledged, although it has pledged to rein in flows to compensate. Russian exports have also risen recently.
Oil demand outlook
The oil demand outlook is uncertain for this year. OPEC expects another year of relatively strong demand growth of 2.25 million bpd, led by Asia, while the International Energy Agency expects much slower growth of 1.22 million bpd.
The IEA also expects oil supply to grow to a record high of about 103.8 million bpd this year, almost entirely driven by producers outside OPEC+, including the United States, Brazil and Guyana.
The rupee hit a record low, weakening past 83.45 this week. Regulatory challenges led traders to unwind positions in the currency derivatives segment. As a result, USD/INR futures volumes on NSE dropped by 78% because clients now need to show proof of their underlying exposure before trading. Meanwhile the Reserve Bank of India (RBI) delayed the implementation of its new rules for exchange-traded currency derivatives by a month till 03 May 2024 to implement the changes from its earlier deadline of 05 April 2024. This decision aims to calm the market after a recent panic. The Indian rupee's options in the exchange market were chaotic as the majority of the clients were asked to prove their underlying exposure or close their derivative positions. It allows users to take positions up to $100 million without providing underlying exposure for ease of business. However, the requirement for having the exposure remains, with no exemptions provided. The recent confusion stemmed from existing restrictions requiring currency derivatives trades to have underlying contracted exposure. This rule was not new, but the financial markets participants seemed unaware. On an optimistic note we can conclude as the bond market gains more attention this fiscal year, there may be some opportunities for retail and proprietary traders to return to currency exchange derivatives in the coming time. Till then it's time to bid goodbye to the currency derivatives segment.
USDINR (MAR) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.21. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 54 on the daily chart. Major support is seen around 83 levels, while resistance is expected near 83.4 levels.
GBPINR (MAR) pair is currently in an Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.3. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 49 on the daily chart. Major support is seen around 104.25 levels, while resistance is expected near 105.75 levels.
EURINR (MAR) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90.18. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 51 on the daily chart. Major support is seen around 89.5 levels, while resistance is expected near 90.5 levels.
JPYINR (MAR) pair is currently in an Sideways trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 55.18. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 42 on the daily chart. Major support is seen around 54.5 levels, while resistance is expected near 55.5 levels.
SEBI clears Kross, Saraswati Saree Depot IPO papers; returns Polymatech Electronics, Garuda Construction DRHPs
Kross, and Saraswati Saree Depot have received approval from the capital markets regulator SEBI to go ahead with fundraising plans by launching initial public offerings. Trailer axle and suspension assembly manufacturer Kross filed draft papers on November 30, 2023, for Rs 500-crore IPO, which is a mix of fresh issuance of equity shares worth Rs 250 crore and an offer-for-sale (OFS) of shares worth Rs 250 crore by promoters Sudhir Rai and Anita Rai. Saraswati Saree Depot, which had filed draft papers on September 29 last year, has been allotted an observation letter by the regulator on March 27 this year. The Maharashtra-based saree wholesaler IPO comprises a fresh issue of 72.45 lakh equity shares and an OFS of 35.55 lakh equity shares by promoters. Unistone Capital has been acting as the book-running lead manager to the public issue. Tamil Nadu-based opto-semiconductor chips manufacturer Polymatech Electronics, which had filed draft papers on September 29 last year, was proposed to raise Rs 750 crore via an initial public offering. The Garuda Construction IPO papers were filed on February 19 this year. It was planning to raise funds via a fresh issue of 1.83 crore equity shares and an OFS of 95 lakh shares. PKH Ventures was the selling shareholder in the OFS.
SRM Contractors closes at upper circuit, jumps 12.5% on debut
SRM Contractors shares closed at the upper circuit on listing day, April 3, indicating a strong buying interest from the participants despite volatility in the equity markets though the opening price was far lower than analysts' expectations. The stock opened 7.1 percent higher at Rs 225 on the BSE, against the issue price of Rs 210, and immediately jumped to the upper circuit level of Rs 236.20, up 5 percent over the opening price. The Jammu & Kashmir-based EPC contractor has raised Rs 130.2 crore through its initial public offering which comprised only a fresh issue. The price band for the issue was fixed at Rs 200-210 per share. The construction and development company that is involved in the construction of roads, bridges, tunnels, and slope stabilisation works in the Union Territories of Jammu and Kashmir and Ladakh is going to spend fresh issue money for the purchase of equipment/machinery; repaying debts; working capital requirements; investment in project-specific joint venture projects; and general corporate purpose.
Supermarket chain Patel Retail files IPO papers with SEBI
Maharashtra-based supermarket chain Patel Retail has filed preliminary papers with the capital markets regulator SEBI for fundraising through a maiden public issue. The IPO is a mix of a fresh issue of 90.18 lakh equity shares by the company and an offer-for-sale (OFS) of 10.02 lakh shares by promoters Dhanji Raghavji Patel and Bechar Raghavji Patel. Dhanji Patel will offload 7.68 lakh equity shares and Bechar Patel 2.34 lakh shares via OFS. The issue includes a reservation of up to 51,000 equity shares for company employees. Prior to filing the red herring prospectus with the RoC, Patel Retail said it may consider fundraising through a private placement, preferential allotment, or rights issue of up to 5 lakh equity shares. Incorporated in FY08, Patel Retail operates a retail supermarket chain in tier-III cities and nearby suburban areas, plans to spend Rs 60 crore out of the net fresh issue proceeds for repaying debts, Rs 115 crore for working capital requirements, and the remaining funds for general corporate purposes. As of December 2023, the Patel family-owned company operates and manages 31 stores. On the financials front, Patel Retail has reported a net profit of Rs 16.4 crore for the year ended March FY23, growing 44 percent over the previous year. Revenue from operations during the same period grew by 33 percent to Rs 1,018.5 crore.
Vasuki Global Industries plans to raise funds via IPO, files draft papers with SEBI
Procurement and processing agent Vasuki Global Industries is planning to raise funds via initial share sale going ahead as it has filed draft papers with the capital markets regulator SEBI. As per the preliminary papers filed on March 28, the IPO comprises only a fresh issue of 1.4 crore equity shares by the company, with no offer-for-sale component. The Mehta family, the promoters of the company, owns 86.67 percent shareholding in the company, and the remaining 13.33 percent shares are held by public. The Gujarat-based company that offers procurement of imported as well as domestic coal, and logistics services intends to spend Rs 18.8 crore out of fresh issue proceeds for purchase of goods transportation vehicles, and Rs 66.3 crore for setting up cement manufacturing facility by subsidiary Vasuki Cement. And the remaining funds will be used for general corporate purposes.
Ecos India Mobility & Hospitality files IPO papers with only OFS component
New Delhi-based Ecos (India) Mobility & Hospitality has filed preliminary papers with the markets regulator SEBI for fundraising through an initial public offering. The IPO consists of only an offer-for-sale (OFS) component comprising 1.8 crore equity shares with no fresh issue component. The OFS is 30 percent of the total paid-up equity capital. Promoters Rajesh Loomba will be selling 99 lakh equity shares and Aditya Loomba 81 lakh equity shares in the OFS. This means the entire issue proceeds, barring IPO expenses, will go to selling shareholders i.e. promoters, and the company will not receive any funds from the issue. The chauffeured car rentals (CCR) and employee transportation services (ETS) provider has a pan-India presence in 109 cities in India with more than 9,000 economy to luxury cars, minivans and luxury coaches. New Delhi-based Ecos (India) Mobility & Hospitality has filed preliminary papers with the markets regulator SEBI for fundraising through an initial public offering. The IPO consists of only an offer-for-sale (OFS) component comprising 1.8 crore equity shares with no fresh issue component. The OFS is 30 percent of the total paid-up equity capital. Promoters Rajesh Loomba will be selling 99 lakh equity shares and Aditya Loomba 81 lakh equity shares in the OFS. This means the entire issue proceeds, barring IPO expenses, will go to selling shareholders i.e. promoters, and the company will not receive any funds from the issue.
Shapoorji Pallonji Group firm Afcons Infra files draft papers to raise Rs 7,000 crore via IPO
Diversified conglomerate Shapoorji Pallonji Group-backed construction and engineering player Afcons Infrastructure Ltd has filed draft red herring prospectus (DRHP) with Securities Exchange Board of India (Sebi) to raise Rs 7,000 crore through an initial public offer (IPO). The firm will raise Rs 1,250 crore through a fresh issue and Rs 5,750 crore through offer for sale. Goswami Infratech Pvt Ltd will sell around Rs 5,750 crore worth of stake in the OFS, according to the DRHP. As of December 2023, Goswami Infratech Pvt Ltd has 72.35 percent stake while Shapoorji Pallonji and Company 16.64 percent stake in the firm. Proceeds worth Rs 150 crore from the issue will be used for capital expenditure, Rs 350 crore will be used to fund long term working capital requirement and Rs 500 crore will be used for repayment of portion of certain outstanding borrowings and acceptance availed by the company. As of December 2023, its outstanding borrowings stood at Rs 2887.59 crore.
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Bandhan Mutual Fund has announced the launch of the Bandhan Innovation Fund, an open-ended thematic fund dedicated to investing in companies at the forefront of innovative breakthroughs. The new fund offer or the NFO of the scheme will open for subscription on April 10 and will close on April 24. The scheme will be benchmarked against Nifty 500 TRI. The scheme will be managed by Manish Gunwani (equity investments), Brijesh Shah (debt investments), and Ritika Behera (overseas investments). The fund targets companies with substantial R&D investment, high skilled-employee costs, potentially higher margins or growth, unique products or services, non-linear business models, and a notable brand presence, according to a press release by the fund house. The Bandhan Innovation Fund will allocate its investments across a spectrum of innovators: 35-45% to leading innovators with substantial industry R&D investments; 35-45% to rising innovators utilizing innovation for a competitive edge; and 10-15% to emerging innovators, those filling market gaps with disruptive products or services and showing a strong growth trajectory. The fund is ideal for investors with a long-term investment horizon and higher risk appetite, diversification in their satellite portfolio and generating potential alpha. An exit load of 0.50% of the applicable NAV will be there if redeemed/switched out within 30 days from the date of allotment. No exit load will be applicable if redeemed/switched out after 30 days from the date of allotment.
PGIM India Mutual Fund has launched PGIM India Retirement Fund, an open-ended retirement solution-oriented scheme having a lock-in of five years or till retirement age, whichever is earlier. The new fund offer or NFO of the scheme is open for subscription and will close on April 9. The lock-in period is also applicable when an investor moves out of the PGIM India Retirement Fund to any other scheme within the fund house, before the mandatory lock-in period of five years or retirement age, whichever is earlier. The transfer-out of the scheme shall be allowed subject to five-years lock-in period from the date of allotment of units or attainment of retirement age of 60 years, whichever is earlier, subject to exit load, if any. The investment objective of the scheme is to provide capital appreciation and income to investors in line with their retirement goals by investing in a mix of securities comprising equity, equity-related instruments, REITs and InvITs, and fixed-income securities.
Trust Mutual Fund on Thursday announced the launch of TrustMF Flexi Cap Fund, an open-ended dynamic equity scheme investing across large cap, midcap, and smallcap stocks. The new fund offer or the NFO of the scheme will open for subscription on April 5 and close on April 19. The objective of the scheme is to provide long-term growth in capital and income to investors by actively managing investments in a diversified portfolio of equity and equity-related securities across the entire market capitalization spectrum. The scheme will be managed by Mihir Vora and Aakash Manghani. And the fund will be benchmarked to the Nifty 500 TRI Index. At TRUST Mutual Fund we understand the importance of catering to the unique needs of different customers. We are growth investors, and we believe that our Terminal Value Investing framework and Growth at Reasonable Valuations (GARV)* approach offers a differentiated alternative for equity fund investors. GARV, an acronym for Growth at Reasonable Valuations, is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations. TRUSTMF Flexi cap Fund encompasses this philosophy, and the mandate enables the fund to adapt and navigate through various market conditions for sustainable investment success,” said Mihir Vora, Chief Investment Officer, TRUST Mutual Fund. The fund will invest 65% -100% of its corpus into Indian equity and equity-related instruments across various market capitalizations. The exit load of 1% will be applicable if redeemed/switched out within 180 days from the date of allotment. Nil exit load if redeemed/switched out after 180 days from the date of allotment. The minimum application amount is Rs 1,000 and in multiples of any amount thereafter. The minimum amount for monthly SIP is Rs 1,000 (plus in multiple of any amount) with a minimum of six installments.
TBajaj Finserv Mutual Fund files draft document for multi-asset allocation fund
Bajaj Finserv Mutual Fund has filed draft document with Sebi for a multi-asset allocation fund. Bajaj Finserv Multi Asset Allocation Fund will be an openended scheme, investing in equity, debt and money market instruments, gold ETFs, silver ETFs, exchange-traded commodity derivatives and in units of REITs and InvITs. The investment objective of the scheme will be to generate income from fixed-income instruments and generate capital appreciation for investors. The scheme will be benchmarked against 65% Nifty 50 TRI + 20% NIFTY Short Duration Debt Index + 10% Domestic Prices of Gold + 5% Domestic Prices of Silver. It will be managed by Nimesh Chandan and Sorbh Gupta (for equity investments), and Nimesh Chandan and Siddharth Chaudhary (for debt investments). The scheme will offer regular and direct plans with both growth and IDCW options. The minimum application amount for lumpsum investment will be Rs 500 and in multiples of Re 1. The minimum application amount for SIP will be Rs 500 and above with a minimum of six instalments.
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