In the week gone by, global markets looked enthusiastic as investors welcomed progress in Congress standoff over extending the federal debt ceiling. On the flip sides, Euro zone bond yields fell as energy prices declined. On the data front, final purchasing managers’ index (PMI) readings from across the euro zone showed business growth dented in September by inflationary pressures and supply chain problems. Another data showed that German industrial output slumped by more than expected in August as supply chain disruptions weighed on Europe’s largest economy. Output fell by 4% month-on-month following an increase of 1.3% in July. While activity in China’s services sector returned to growth in September. The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 53.4 from 46.7 in August, pulling away from the lowest level seen since the height of the pandemic last year.
Back at home, markets moved higher ahead of Reserve Bank of India's Monetary Policy Decision amid positive cues from global markets. As expected the Reserve Bank of India (RBI) has maintained a monetary policy pause, keeping the repo rate unchanged and maintaining the "accomodative" policy stance. This is the eighth consecutive time the MPC maintaining a status quo in rates. Importantly, the RBI sounded optimistic on the growth recovery in Indian economy. Meanwhile, Consumer spending is inching towards the pre-pandemic level according to the second quarter business updates by companies. In another development, output from India’s eight core sectors accelerated for the second successive month in August, rising 11.6%, compared to a 6.9% contraction recorded a year ago, with four sectors registering strong doubledigit growth although crude oil and fertilisers output declined. Fitch Ratings has cut India's economic growth forecast to 8.7 percent for the current fiscal but raised GDP growth projection for FY23 to 10 percent, saying the second COVID-19 wave delayed rather than derail the economic recovery. With the start of the festive season, it is expected that strong buying can be seen in auto, textile and realty stocks. Going forward, market will continue to take direction from both domestic and global factors.
On the commodity market front, CRB crossed the important mark of 250 levels after seven years but couldn’t sustain at higher levels on profit booking in energy and other counters. Dollar index saw a nonstop five week rally on tapering and interest rate hike expectation. It may slow the upside in commodities in days to come. Global oil prices have jumped more than 50% this year, adding to inflationary pressure. Natural gas and coal prices have also climbed. OPEC conveyed that it would stick to its pact for a gradual increase in oil output, sending crude prices to multi-year highs. Crude may trade in a range of 5600-6200 whereas natural gas may see lower levels buying. However, Russia is ready to stabilize energy prices by increasing gas shipments to Europe. Bullion may trade in a range with bullish bias. Employment Change, GDP of UK, Employment Change of euro Area and Germany, Inflation Rate YoY Final of Germany, Core Inflation Rate, FOMC Minutes, Retail Sales, Michigan Consumer Sentiment Prel and Inflation Rate of US, Employment Change and Unemployment Rate of Australia, Inflation Rate and New Yuan Loans of China etc are few triggers which one should watch closely while trading in commodities.
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respectively as on June 30, 2020. For the consolidated entity, CRAR and CET-1 stand at 16.38% and 12.35% respectively.
According to the management, Bank of Baroda is expecting growth its corporate loan book in the next few quarters, as government spending has picked up in roads and energy segments. However, retail loan growth will continue to be ahead of corporate loan growth. It also gets the sizable deposits from the overseas branch and total deposits across the geography have grown. Moreover, Bank of Baroda is one of the largest PSU banks with a strong domestic presence spanning 8,192 branches and 11,637 ATMs and Cash Recyclers supported by self-service channels. Thus, it is expected that the stock will see a price target of Rs.104 in 8 to 10 months’ time frame on an expected P/Bvx 0.60 and FY23 (BVPS) of Rs.173.38.
Moreover the Q2FY22 growth (over Q1FY22) will be driven by growth across the board i.e. PC India, CV India, Industrial India, CV International, PC International and Industrial exports.
The company is doing well and it has strong balance sheet and liquidity position. Looking ahead into Q2 FY22, the management of the company expects the overall growth to continue supported by recovery in the domestic MHCV market and sustained improvement in demand levels in the export market. The industrial business is expected to grow in the medium to long term driven by the revival of the capex cycle in India, potential opportunities arising out of various PLI schemes and Defence manufacturing in India. The company will be looking at expanding capacities ahead. Thus, it is expected that the stock will see a price target of Rs.929 in 8 to 10 months time frame on a target P/BVx of 6x and FY22 BVPS of Rs.154.79.
The stock closed at Rs 85.45 on 08th October, 2021. It made a 52-week low at Rs 49.80 on 30th October, 2020 and a 52- week high of Rs. 92.50 on 04th March, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 79.57.
Short term and medium term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, it is forming an “Inverse Head and Shoulder” pattern on weekly charts which is bullish in nature. Last week, the stock closed on verge of neckline breakout of pattern along with high volumes. So, buying momentum may continue for coming days. Therefore, one can buy in the range of 83-84 levels for the upside target of 97-100 levels with SL below 78 levels.
The stock closed at Rs 139.70 on 08th October, 2021. It made a 52-week low of Rs 56.20 on 15th October, 2020 and a 52- week high of Rs. 157.00 on 18th February, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 121.77.
Short term and medium term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, it is forming an “Inverse Head and Shoulder” pattern on weekly charts which is bullish in nature. Last week, the stock closed on verge of neckline breakout of pattern along with high volumes. So, buying momentum may continue for coming days. Therefore, one can buy in the range of 137-139 levels for the upside target of 160-165 levels with SL below 127 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
Bulls made a strong come back in Indian markets as Nifty indices posted record closing in the week gone by. Recovery was seen post RBI policy as PSU banks led the market gains along with auto and IT space. From the derivative front, call writers were seen unwinding their positions at 17800 & 17900 strike while put writers were seen shifting at higher bands. Implied volatility (IV) of calls closed at 14.19 % while that for put options closed at 14.88. The Nifty VIX for the week closed at 16.16%. PCR OI for the week closed at 1.47. Technically both the indices (Nifty and Banknifty) can be seen trading in a rising channel with formation of higher bottom pattern. For upcoming week, 18000 levels will likely to act as a strong hurdle for Nifty while 38000 would act as a strong barrier for the banking index. We expect that the bias is likely to remain in favour of bulls as far Nifty holds 17600 levels on downside.
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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 (Nov) down 2% last week may trade in a range of 6700-7450 with resistance at 7310 and support at 7230. We see profit booking at higher levels as production in the 2021-22 (Jul-Jun) season is likely to be higher due to favorable weather conditions. Moreover, higher carryover stocks and lack of bulk demand is keeping prices under pressure. Last month, the prices were down by about 8% but prices are still up 30% y/y. In the first 4-months (Apr-Jul) of FY 2021/22, exports down by 26% to 53000 tonnes Vs last year but at par with 5-year average. Jeera futures (Nov) traded flat last week after climbing to one week high and likely to trade sideways in a range 14220-14950 levels with support at 14300 levels and resistance at 14750 levels. Sufficient stocks with traders and farmers are keeping prices under control despite festival demand and export enquiries. Clear weather and comparatively higher prices have increased arrivals in the physical market. Good September rains in Gujarat brighten the prospects for better crop next year. In 2021 (Jan-Jul), country exported 1.75 lakh tonnes (lt) of jeera compared to 1.67 lt last year same time. Dhaniya futures (Nov) traded positive last week due to increased demand for coriander from south India. We expect prices to consolidate in range of 7850- 8200 levels with support at 7930 levels. Clear weather in Rajasthan is helping stockist and farmers to bring their produce to mandis as prices have improved. However, market is looking for export demand for further upward movement in prices. Exports of coriander down 10% during Apr-Jul period to 17830 tonnesVs 19820 tonnes last year but 17.7% higher compared to 5-year average. Sufficient rains in Gujarat and Rajasthan during September expected to help rabi crop in coming season.
Gold prices were stuck in a narrow range, as investors sought more direction from the U.S. non-farm payrolls report, considered key to the U.S. Federal Reserve’s stimulus taper schedule. The dollar index hovered below a one-year high. Stronger dollar has made gold more expensive for other currency holders. Fed Chairman Jerome Powell had signalled last month there was broad agreement among policymakers to begin reducing the central bank’s monthly asset purchases as soon as November, as long as the September jobs report was “decent.” Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest. The Senate approved legislation to temporarily raise the federal government’s $28.4 trillion debt limit and avoid the risk of a historic default this month, but it put off until early December a decision on a longerlasting remedy. China held 62.64 million fine troy ounces of gold at the end of September, unchanged from the previous month, official data showed on Thursday. India's gold imports in September soared 658% from last year's lower base as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season, a government source said. Higher imports by the world's second-biggest bullion consumer could support benchmark gold prices , which have fallen nearly 15% from an all-time high of $2,072 in August 2020. Ahead in the week, gold prices may continue to trade in tight range, if 47500 level is not broken. The range for gold is 46100-47900. Silver may also trade with sideways to positive bias where it may take support near 59900-63500.
Soybean futures (Nov) up more than 3% last week on reports that the arrivals may be late due to unseasonal rains and higher edible prices. It is expected to trade in a range of 5230-5980 levels with support at 5450 levels. Earlier we have witnessed corrections due to new season arrivals and imports of soymeal but higher International edible oil prices keeping domestic oilseed prices supportive. Though the new soybean crop has begun arriving, the arrivals are likely to peak around December due to an erratic monsoon this year. India's soybean production is estimated at 10 mt compared to 8.9 mt last year and weather is still very important as harvesting is at peak. Currently, soybean prices are ruling way higher than the MSP of 3950 rupees per 100 kg. Edible oil prices have trade positively during the last week due to firm international edible oil prices. We have witnessed gradual increase in prices due to festival demand and higher tariff value. Tariff value increased for the month of October by about 100 dollar per tons for both Crude palm oil and Crude soy oil. Malaysian palm oil futures are trading at record high, driven by a rally in crude prices and there is expectation of tighter supplies in coming months. According to Malaysia Palm Oil Association, Crude Palm Oil production in Malaysia during September 1-30 declined to 1.68 million MT, down by -1.44% as compared to same period during August. Despite lower import duty, twice this year, only exporting countries gain from such decisions as prices have increase to all-time highs. Ref Soy oil futures (Nov) is likely to trade in a broad range 1250-1400 with support at 1285 while CPO futures (Oct) likely to trade in a range 1108-1200 with support at 1108.
U.S. crude oil hit its highest since 2014 and Brent futures climbing to a threeyear high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further. Oil prices have already surged more than 50% this year, adding to inflationary pressures that crude-consuming nations such as the United States and India are concerned will derail recovery from the COVID-19 pandemic. Late last month, the OPEC+ Joint Technical Committee (JTC) said it expected a 1.1 million bpd supply deficit this year, which could turn into a 1.4 million bpd surplus next year. Despite pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery. Rocketing global natural gas prices, which may incentivize some power generators to switch from gas to oil, mean crude prices are likely to remain supported even though there could be a short-term pullback. Ahead in the week, crude oil trade with positive bias where it may take support near 5690 and could face resistance near 6100. US natural gas jumped to a 12-year high as global shortages of the fuel fanned fears in the country ahead of the winter. With rising energy feedstock costs, major consumers have expressed fear that inflation could eat away gradually returning growth. Strong demand from Europe keeps the arbitrage open, allowing LNG producers to ship the product and profit. Shipping costs are gradually closing the gap, as are higher natural gas prices in the United States. The momentum is still strong. Ahead in the week price may trade in the range of 400-480 levels.
Cotton futures (Oct) jumped 7% and touched all time high of 30940 last week on reports of production loss due to widespread rains in the cotton growing regions Moreover, pest attack in Punjab also supported prices. We expect the price to trade with positive bias towards 30900 with support at 29400. Cotton prices rose in all markets of Maharashtra / Gujarat and North India as well increased in demand from the mills. Moreover, firm trend in International prices due to China demand and lower than expected production too support domestic prices. Guar seed futures (Nov) prices down more than 1% last week and likely to trade in a range of 5600 – 6400 with support at 5720. Currently prices are supportive above prices are supportive above 5700 due to higher crude oil prices and unseasonal rains as harvesting is going on. Currently, the prices are higher by more than 40% y/y due to lower area and consistent export demand. The area under guar in Rajasthan is down by about 4 lakh hac compared to last year at 21 lakh hac, lowest acreage in a decade. Guar gum exports expected to pick-up in October as crude oil prices have risen. Castor Seed (Nov) traded positively last week and expected to trade higher towards 6500 with support at 6285. Persistent export demand for castor oil and meal kept prices higher this season. SEA release castor oil export data for Jul and Aug 2021 which were lower compared to last year but for Apr-Aug period exports are higher at 3.2 lakh tonnes Vs 2.9 lt last year despite higher export prices. The late monsoon rains in September is beneficial for castor area in Gujarat but excessive rains in some area may affect late sown castor crop in the region.
Base metals may trade in wide range with high volatility on upbeat sentiment in global equities, as the United States moved closer to resolving its debtceiling wrangles. The U.S. Senate approved legislation to temporarily raise the federal government's $28.4 trillion debt limit and avoid the risk of a historic default this month, but it put off until December a decision on a longer-lasting remedy. However a firmer dollar on the prospect of the U.S. Federal Reserve scaling back its pandemic stimulus may put pressure on the metals. Power crunch and soaring energy prices from Europe to China have sent shivers through global markets. Copper may trade in the range 700-745 levels. Chile's copper exports hit $4.157 billion in value in September, up 18.5% from a year earlier, boosted by strong global prices for the metal, the central bank said. Glencore's Antapaccay copper mine in Peru said it did not plan to execute this year or next its Coroccohuayco project that provoked protests from nearby residents. Zinc can move in the range of 255-272 levels. Nyrstar's fully electrified zinc smelter in Budel-Dorplein, the Netherlands, is curtailing production during peak times of day when power prices exceed the break-even cost of production. Lead can move in the range of 177-187 levels. Nickel may trade in the range of 1440-1520 levels. Nickel demand is also expected to see a large increase due to the growing battery sector, as well as from the stainless steel sector. Aluminum may move in the range of 230-245 levels. The aluminium capacity in China that was closed due to power shortage and energy consumption control previously did not resume.
COPPER MCX (OCT) contract closed at Rs. 724.75 on 07th Oct’2021. The contract made its high of Rs. 746.00 on 13th Sep’2021 and a low of Rs. 684.20 on 19th Aug’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 715.00. On the daily chart, the commodity has Relative Strength Index (14-day) value of 54.686.
One can buy near Rs. 715 for a target of Rs. 755 with the stop loss of 700.
CRUDE OIL MCX (OCT) contract closed at Rs. 5860.00 on 07th Oct’2021. The contract made its high of Rs. 5977.00 on 08th Oct’2021 and a low of Rs. 4633.00 on 20th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 5548.98. On the daily chart, the commodity has Relative Strength Index (14-day) value of 74.273.
One can buy near Rs. 5700 for a target of Rs. 6200 with the stop loss of Rs. 5500.
SOYA REFINED NCDEX (OCT) contract was closed at Rs. 1323.30 on 07th Oct’2021. The contract made its high of Rs. 1411.00 on 26th Aug’2021 and a low of Rs. 1232.00 on 02nd Jul’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1319.90. On the daily chart, the commodity has Relative Strength Index (14-day) value of 51.946.
One can sell near Rs. 1345 for a target of Rs. 1275 with the stop loss of Rs 1371.
CRB crossed the important mark of 250 levels after seven years but couldn’t sustain at higher levels on profit booking in energy and other counters. Dollar index saw a nonstop five week rally on tapering and interest rate hike expectation. The dollar climbed across the board, as surging energy prices fuelled concerns about inflation and interest rate hikes, knocking investors' appetite for riskier assets and driving flows to safe-havens. Bullion saw gradual upside from the previous three weeks, despite rise in dollar index. The yield on 10-year U.S. Treasuries eased off a more than three-month high, but remained above 1.5%. Energy counter was very volatile; saw big swings of both sides. Crude oil hit a seven-year high overnight before easing from its recent gains, while natural gas climbed to a record peak in Europe and coal prices from major exporters also hit all-time highs. After touching the high of 5956 levels, crude prices saw some correction. Oil prices came under pressure from an unexpected rise in U.S. crude stocks that raised concerns over demand after prices rallied to multi-year highs. U.S. crude inventories rose by 2.3 million barrels as per EIA, against expectations for a modest dip of 418,000 barrels. Gasoline inventories also rose, while distillate inventories were down slightly. The price of natural gas pulled back sharply on Wednesday after Russian President Vladimir Putin said he was ready to stabilize energy prices by increasing gas shipments to Europe. Natural gas hit the high of 485 and then prices cooled down to 425. Base metals were trying to make a base. Most of them saw some lower levels buying after a sharp fall of previous week, except lead. The upside was capped though as China's factory activity unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world's second-largest economy. The trade volume was limited as the Chinese Market is closed on National Day holiday from October 1 to October 7, 2021.
Spices futures were in pressure on lack of demand. Turmeric futures prices slipped further. The production in the 2021-22 (Jul-Jun) seasons is likely to be higher due to favorable weather conditions. Moreover, huge carryover stocks and lack of bulk demand is keeping prices under pressure. Jeera price were getting support due to on export enquiries, but sufficient stocks with traders and farmers is keeping prices in range. Good September rains in Gujarat brighten the prospects for better crop next year. New demand for coriander from mills in Tamil Nadu and Karnataka kept the downside limited in coriander futures. Soyabean, refined soya oil and mustard got support from the lower side on fresh buying whereas CPO continued to race towards north, made new high in Bursa Malaysia Derivative.
The Multi Commodity Exchange of India has launched the iCOMDEX Energy Index futures, India's first tradable Energy Futures Index on 7th October 2021. The iCOMDEX Energy Index tracks the real-time price movement of near month crude oil and natural gas future contracts, according to exchange. The regulator has allowed the exchange to start trading for futures contracts expiring in November, December and January 2022 on the energy index.
MCX iCOMDEX Eullion Index is one of the sectoral indices in the MCX iCOMDEX family. The Index is an efficient tool for investors looking to manage their investments in energy and, being an excess returns index, it is ideal for benchmarking and trading. Energy and natural gas will have weight of 75% and 25%, respectively, on the energy index.
MCX COMDEX is a significant barometer for the performance of commodities market and would be an ideal investment tool in commodities market over a period of time. This is the maiden flagship real-time Composite Commodity Index in India based on commodity futures prices of an exchange launched in June 2005.
MCX iCOMDEX ENERGY FUTURES CONTRACT SPECIFICATION
Advantage of MCX iCOMDEX bullion
Indian Rupee hit the lowest level in 5 months after oil prices reached three years high. Additionally dollar got strengthened following the higher US yields notably 10 year benchmark hits 1.56%. However later on this week, rupee reversed some of its losses tracking an improved risk appetite after crude oil prices retreated from multi-year highs. Going forward, next week US monthly payroll numbers will impact the dollar move. Any upbeat payroll release will support dollar in the coming days. From the majors, euro fell to the lowest level in 11 months amid stronger dollar mode. With no major economic news this week the euro has not changed from the lowest level. Additionally markets did not react to outgoing German Chancellor Angela Merkel’s comment that Germany should not fully embrace fiscal union in the euro zone without conditionality. We do think the weakness in euro-rupee pair likely to continue and break below 86.00 on spot may trigger more downside as well. While pound continued to outperform after September's losses. However the UK pound moved little as markets showed no reaction to comments from Bank of England member Huw Pill that he is becoming increasingly concerned with the UK’s inflation outlook.
USD/INR (OCT)) contract closed at 74.8700 on 07-Oct-21. The contract made its high of 75.2250 on 06-Oct-21 and a low of 74.2950 on 04-Oct-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.3503.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 62.03.One can buy at 74.75 for the target of 75.75 with the stop loss of 74.25.
GBP/INR (OCT)) contract closed at 101.8775 on 07-Oct-21. The contract made its high of 102.0800 on 06-Oct-21 and a low of 100.5200 on 04-Oct-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 101.5089.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 53.12. One can buy at 101.75 for a target of 102.75 with the stop loss of 101.25.
| 8th OCT | RBI keeps repo rate unchanged at 4% |
| 7th OCT | BoE's Pill says size and duration of inflation spike bigger than expected |
| 6th OCT | Power crunch in China and India stokes global growth anxiety |
| 5th OCT | US and Chinese officials to hold high-level meeting in Switzerland |
| 5th OCT | Embattled IMF chief Georgieva tells world leaders they need to ‘build trust’ |
| 5th OCT | US oil price hits 7-year high |
| 5th OCT | Boris Johnson denies Britain faces economic crisis |
| 4th OCT | Overseas interest in UK truck jobs keenest among those not qualified |
| 4th OCT | US urges China to fully honour trade pact signed with Trump |
EUR/INR (OCT)) contract closed at 86.6350 on 07-Oct-21. The contract made its high of 86.8250 on 06-Oct-21 and a low of 86.1900 on 04-Oct-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 86.6350.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 42.63. One can sell at 87.00 for a target of 86.00 with the stop loss of 87.50.
JPY/INR (OCT)) contract closed at 67.2525 on 07-Oct-21. The contract made its high of 67.5000 on 06-Oct-21 and a low of 66.8800 on 06-Oct-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.1827.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 50.22. One can buy at 67.00 for a target of 68.00 with the stop loss of 66.50.
Markets regulator Sebi proposed a minimum price band of 5 per cent for public issues through book built process and sub-categorisation of non-institutional investors. Sebi has invited comments on its proposals in a consultation paper for review of price band and book building framework for public issues. The recommendations came as Sebi observed that the price band provided by issuer companies on the main board are extremely narrow. Several concerns were deliberated upon by the Primary Market Advisory Committee (PMAC).
The Securities and Exchange Board of India (Sebi) has mulled a new approach for price discovery and share allotment process for so-called high networth individuals (HNIs) in an initial public offering (IPO). In a consultation paper issued, the regulator has proposed a category within category for high-networth individuals (HNI) to safeguard the interest of those that submit relatively low-ticket bids. A minimum five per cent price band---difference between lower and upper end has also been proposed. Sebi has issued concerns over large HNIs crowding out smaller ones during an IPO. It has been proposed to divide the HNI bucket into two. The first one will be for those submitting applications in the range between Rs 2 lakh and Rs 10 lakh. The second for those submitting bids worth Rs 10 lakh or more.
Online payments and lending firm Mobikwik has got the SEBI approval for its maiden public issue. MobiKwik had on July 12 filed its draft documents to raise Rs 1,900 crore via a public offering, the latest among a slew of internet companies wanting to list on stock exchanges. About Rs 1,500 crore will be primary share sales while up to Rs 400 crore will be secondary share sales where existing investors can sell their stake. Founded in 2009 by husband-wife duo Bipin Preet Singh and Upasana Taku, One MobiKwik Systems Limited was last valued at $700 million when it raised $20 million last month from Abu Dhabi Investment Authority (ADIA).
Markets regulator Sebi has given its nod for the initial public offering of Fino Payments Bank, which is looking to raise around Rs 1,300 crore. Besides, Keralabased Popular Vehicles and Services Ltd has received approval from the watchdog for an Initial Public Offering (IPO). Sebi has issued observation letters for the proposed IPOs, according to the latest update by the regulator. An observation letter is mandatory for an initial share sale. In Sebi parlance, the issuance of observations implies its go-ahead for the IPO. Fino Payments Bank's IPO includes a fresh issue of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 15,602,999 equity shares by promoter Fino Paytech. The IPO is estimated to be worth Rs 1,300 crore. Proceeds from the fresh issue would be used towards augmenting the bank's tier-1 capital base to meet its future capital requirements.
Diversified company PKH Ventures Ltd has filed draft papers for an Initial Public Offering (IPO) with markets watchdog Sebi. The offer will be for up to 2,92,73,000 shares, including fresh issue to the tune of 2,42,73,000 shares and 50,00,000 shares to be offloaded through Offer for Sale (OFS) route, the Draft Red Herring Prospectus (DRHP) said. The Mumbai-based company is mainly into three verticals -- construction and development, hospitality, and management services. It is looking to raise around Rs 500 crore through the IPO. Out of the fresh issue proceeds, Rs 135.94 crore will be utilised for an investment in Halaipani Hydro Project Pvt Ltd and Rs 100 crore will be used for investment in Makindian Foods Pvt Ltd towards the development of its project in Amritsar. Besides, Rs 60 crore will be for funding Garuda Construction and for general corporate purposes. The hydro power project is in Arunachal Pradesh. Monarch Networth Capital Ltd is the book running lead manager to the issue. PKH Ventures owns and operates two hotels and manages one resort and spa at Aamby Valley, Lonavala. Among others, it manages and operates restaurants under the brand name Zebra Crossing, Hardy's Burger and Mumbai Salsa.
Adar Poonawalla backed pharmacy chain Wellness Forever Medicare is planning to go for an initial public offering (IPO) to raise between Rs 1,500-1,600 crore. The omni-channel retail pharmacy chain has already filed a draft red herring prospectus with the market regulator. The pharmacy chain’s revenue for the financial year ended March 31, 2021, grew to Rs 924.02 crore, from Rs 863.25 crore in the previous fiscal year. This will be the second pharmacy chain to file for an IPO after Hyderabad-based MedPlus, which filed its DRHP with Sebi in August. The IPO consists of a fresh issue of equity shares aggregating to Rs 400 crore and an offer for sale up to 1.60 crore equity shares, according to DRHP. The company proposes to utilise net proceeds from the fresh issue to the tune of Rs 70.20 crore for funding capital expenditure for setting up new outlets, repayment or prepayment in part or full of certain borrowings amounting to Rs 100 crore, funding its working capital requirements to the extent of Rs 121.90 crore besides general corporate purposes. The Mumbai-based brand Wellness Forever founded by Ashraf Biran, Gulshan Bakhtiani and Mohan Chavan in 2008, has 236 stores across 23 cities in Maharashtra, Goa, Karnataka.
The Gurugram-based travel technology company filed the draft red herring prospectus (DRHP) for its Rs 8,430 crore ($1.2 billion) IPO with the Securities and Exchange Board of India (Sebi). According to the draft papers, investors including Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment (Didi), Greenoaks Capital, AirBnB, HT Media, and Microsoft will not dilute their shareholding. The DRHP names Agarwal, RA Hospitality Holdings (Cayman), and SVF Holdings (Cayman) as the main promoters of Oyo. While Agarwal and RA Hospitality together own 33.15 per cent of the company, SVF Holdings owns 46.62 per cent. The OFS comprises aggregate shares from a small part of SVF India (Softbank Vision Fund), A1 Holdings (Grab), China Lodging, and Global IVY Ventures LLP. According to the DRHP, Oyo plans to use the net proceeds to repay the debt availed by some of its subsidiaries, fund organic and inorganic growth initiatives, and for general corporate purposes. It intends to use Rs 2,441 crore for prepayment or repayment, in part, of some borrowings by its subsidiaries and plans to utilise Rs 2,900 crore for funding organic and inorganic growth. The company and its stakeholders may, in consultation with the lead managers, consider a further issue of equity shares up to Rs 1,400 crore, the documents say.
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HDFC Mutual Fund (MF), the country's third largest fund house in terms of asset size, has filed for nine exchange traded funds (ETFs) with SEBI. These schemes include HDFC Nifty 100 ETF, Nifty Next 50 ETF, Nifty Private Bank ETF, Nifty 100 Low Volatility 30 ETF, Nifty 100 Quality 30 ETF, Nifty 200 Momentum 30 ETF, and a few others. The recent filings show that the fund house wants to offer several products to investors within the passivelymanaged funds. So far, the fund house has had just a few passively-managed funds, which are regular products such as Nifty and Sensex-based funds, one banking sector-linked passive fund and a gold ETF. Most of the investor assets of HDFC MF are held in actively-managed schemes, which is where the fund house had got recognition on the back of its active scheme performances in the past. In September, 2021, HDFC MF launched its first international fund -- Developed World Indexes Fund of Funds - which was also passively-managed fund
Mahindra Manulife Investment Management Private Ltd (MMIMPL) on September 28 launched ‘Mahindra Manulife Asia Pacific REITs FOF’, an openended fund of fund scheme investing in Manulife Global Fund – Asia Pacific REIT Fund. The new fund offer opens on September 28 and closes on October 12, the asset management company said, adding that the scheme will reopen for continuous sale and repurchase from October 22. "The scheme is suitable for investors who are looking to diversify their portfolio and build exposure to real estate markets internationally," it said. Real estate investment trusts (REITs) may be one of the key beneficiaries amid the global search-for-yield, with the potential recovery on the back of rollout of COVID-19 vaccines and reopening of economies, the company added. Mahindra Manulife Asia Pacific REITs FOF will invest in Manulife Global Fund - Asia Pacific REIT fund, which allocate funds predominantly in REITs across Asia Pacific countries, it noted. REITs’ comparatively low correlation with other assets also makes them a portfolio diversifier that can help enhance portfolio returns over a medium to long term period.
Axis Mutual Fund has renamed and repositioned its exiting scheme Axis Dynamic Equity Fund into Axis Balanced Advantage Fund with effect from October 1. Axis Balanced Advantage Fund is an open ended dynamic asset allocation fund which manages exposure actively between equity and fixed income. The fund house will follow in house methodology to determine the asset allocation. The scheme can also invest in units of REITs and InvITs.
The Securities Exchange Board of India (Sebi) has established electronic gold and silver ETFs, two new investment vehicles. Sebi has created a framework wherein gold will be transacted in the form of 'Electronic Gold Receipt' (EGR) at stock exchanges. Silver ETFs have been approved by the market regulator. It will follow the same regulatory framework as existing gold ETFs. As a result, fund companies will be able to sell silver ETFs in the near future.
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