Global markets ended the year on a high note, fueled by expectations of rate cuts in 2024. On the economy front, as 2023 comes to a close, the global economy is, in many ways, doing better than expected. The U.S. not only avoided a recession but has grown at a steady clip. Unemployment has been low and, crucially, inflation is falling in most of the world. The US Fed is likely done raising rates, while European markets witnessed upward movements despite persistent UK inflation. Japan's unemployment remained steady. The big development of 2024 will be the performance of the Chinese economy and the economic implications of the Israel-Hamas war. According to the OECD, global output, while highly fragmented, will slow in 2024 as high interest rates snuff out persistent inflation and, by extension, economic activity.
Domestic markets soared to new peaks, propelled by optimism for upcoming rate cuts. India's economy shone bright in 2023, defying global challenges. However, as per RBI minute’s domestic food inflation unpredictability and volatility in crude oil prices and financial markets in an uncertain international environment pose risks to the inflation outlook. Going forward, major central banks of the world, including the US Fed and the RBI, are expected to trim interest rates in the coming year. Central banks worldwide, including the US Fed and RBI, are expected to cut rates in 2024. Both India and the US have elections that may impact markets, but stability post-election is anticipated. India's economy is projected to remain one of the fastest-growing globally, fueling corporate profits and attracting foreign investment. As long as the Chinese slowdown is well contained, India will continue to attract interest of existing and new investors. India's China + 1 strategy of attracting companies seeking to exit China can get a boost. Rate cuts in the US will increase liquidity and potentially higher FDI and FII flows into India in 2024, and Indian equity markets are definitely an attractive proposition. Besides, focus of Investors will eventually shift back to fundamentals and corporate earnings.
On the commodity market front, Commodities saw a mixed bag. The CRB index paused after a two-week rally, while a weaker dollar boosted some commodities. China's stimulus lifted base metals. Copper, crucial for electric vehicles, could reach 745-750 due to anticipated green energy growth. Gold is poised to benefit in 2024 from lower US rates and a struggling global economy. Projections suggest a trading range of 62,000-64,000 for gold and 73,000-78,000 for silver. Oil may register a third consecutive monthly decline due to demand concerns, potentially dropping 20% from its peak. Trading volume is expected to pick up after the holidays. Key data releases include Germany's unemployment and inflation, US ISM manufacturing PMI, and FOMC minutes. Important data from Mexico, Euro Area, Italy, and others are also scheduled.
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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.
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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.
In H1FY24, performance was characterised by positive contributions from all divisions, as well as the achievement of several significant strategic goals: the agreement to acquire the multi-modal biologics facility from Stelis Biopharma Ltd; the purchase of a 17-acre land parcel in Genome Valley, Hyderabad, as an extension to the existing research campus; and the regulatory approval from the US Food and Drug Administration (US FDA) for the commercial manufacturing facility in Mangalore. Thus, it is expected that the stock will see a price target of Rs.844 in 8 to 10 months’ time frame on current P/BV of 7.24x and FY25 BVPS of Rs.116.51.
With consumer-focused ranges being one of the focus pillars, the company has a competitive advantage in engineering, facilities and expertise. According to the management of the company, robust demand from sectors such as real estate, auto, and industrials would give good growth to its wires and cables business. The company continues to focus on areas such as cost control, improved asset utilization, reduce debt levels, and overall improvement in productivity is expected to lead to a stronger balance sheet in the years to come. Finolex Cables Limited is well poised to take advantage of any future growth opportunity. Thus, it is expected that the stock will see a price target of Rs.1248 in 8 to 10 months’ time frame on a target P/BV of 4.05x and FY25 (E) BVPS of Rs.308.20.
The stock closed at Rs.1908.10 on 29th December, 2023. It made a 52-week low of Rs.1643.50 on 14th March, 2023 and a 52-week high of Rs.2064.40 on 31st May, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1809.
Since last two year, the stock has been trading in a broader range of 1700-2000 zone with prices holding well above its 200 days exponential moving average on weekly interval. From the technical front, the stock took support at its 200 DEMA thrice and formed a “Triple Bottom” pattern around 1700 level as once again prices witnessed a sharp move towards 1900 levels. At the current juncture, the stock has given a fresh break above its falling trend line of downward sloping channel along with positive divergences on secondary oscillators. The price action suggests that the stock is likely to witness its next upswing and could breach 2000 levels after a series of prolong consolidation. Therefore, one can buy the stock in the range of 1900-1910 levels for the upside target of 2070 levels with SL below 1800 levels.
The stock closed at Rs.462.10 on 29th December, 2023. It made a 52-week low at Rs.326 on 04th January, 2023 and a 52- week high of Rs.499.70 on 24th July 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.428.
After hitting its 52 week high of 499.70 in the month of July 2023, the stock witnessed a healthy profit booking and once again retraced back towards its 200 days exponential moving average on daily time frame. From last six months, the stock has witnessed a continuous non directional move as prices got stuck in broader range of 430-460. At current juncture, the stock has formed a “Cup & Handle” pattern on daily time with fresh breakout seen above the pattern formation as well. Therefore, one can buy the stock in the range of 460-465 levels for the upside target of 508-510 levels with SL below 430 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.
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In the past week, the Indian stock markets witnessed a robust performance, with both Nifty and Banknifty indices recording gains of more than 1.5%. Last week both indices touched the records high.Auto, metal and FMCG sectors demonstrated relative strength as compared to the overall market, while profit booking was seen in IT and media stocks. Analysing Nifty's derivative data, the highest call writing seen at the 22,000 and 22,500 strikes. Conversely, put writers displayed activity, particularly atthe 21,700 and 21,500 strike points.In Banknifty,the highest call open interest was observed atthe 48,500 and 49,000 strike, while on the put side,it was concentrated atthe 48,000 strike.Implied volatility (IV)for Nifty's call options settled at 14.09%, while put options concluded at 15.23%. The India VIX, a key indicator of market volatility, concluded the week at 15.14%. The Put-Call Ratio Open Interest(PCR OI) stood at 1.72 forthe week. Presently the Nifty's rolloverrate has experienced an increased compared to the previous month. In the prior month,the rolloverrate was at 73%, whereas this month, it has raised to 79%. The rollover rate for the January series is somehow same the average of the past three months. On the flip side, anknifty has seen same rate of rollover to 81%, aligning with the average ofthe lastthree months. Based on this rollover data, we can anticipate sluggish momentum in Banknifty, whileNifty may show some directional movement. Market is currently over stretched and India VIX is at 8 month high. However the rollover rate is higher than the previous month, which indicates that market willremain in the favour of bulls with some volatility on the cards.
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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 traded sideways tracking mixed sentiments of the market. Supplies side fundamentals remained supportive for prices as arrivals shrunk further due to the lower production. Weaker production prospects and tighter carry forward stocks are likely to be crucial factor that will support firmness in prices in coming days. Overall production is likely to remain down as compared to current year (2023-24) year production of 10.45 lakh tonnes due to lower acreages under turmeric. Acreages shrunk in year 2024-25 that will lead to fall in production by at least by 8%-10% Y-o-Y. However, muted demand is still concerns for stockists as spot prices slumped further at major trading centers due to limited offtake by millers in expectation of rise in supplies in Jan as new crop is likely to commence in Telangana during Jan-Feb. Moreover, sluggish exports enquire amid fall in exports in past couple of months till Oct’24 showed by government official release also depicted subdued demand scenario. India exported about 10.13 thousand tonnes of turmeric in Oct’23 as compared to 11.17 thousand tonnes of previous year for corresponding period. Turmeric Apr prices are likely to trade in range of 13300-15500 in coming weeks.
Jeera futures slipped about 16% W-o-W due to surging selling pressure in line with improved crop prospects for upcoming season. Supplies increased the market as stockists offloaded their positions in wake of bumper crop prospects ahead thatled to rise in monthly arrivals. About 5.5 thousand tonnes of arrivals reported so far in Dec’23 as compared to 5.15 thousand tonnes of Nov’23. Overall production is expected to be increased by 30%Y-o-Yin year 2024-25.About 5.44 lakhHa was sown under jeera as on 26th Dec’23 in Gujarat as compared to 2.68 lakh Ha of previous year. Losses are likely to be limited as jeera prices have turned competitive as prevailing rate that led to rise in export pace in Dec’23. Jeera export tumbled to 6.2 thousand tonnes in Oct’23 against the 11.7 thousand tonnes of previous year whereas total export for year 2023-24 reported lower at 34% Y-o-Y so far in Oct’23. India imported about 15.49 thousand tonnes during Apr’23-Oct’23 against the just 1.2 thousand tonnes of previous year. Weakness in jeera is likely to remain continue and prices may slip towards the support of 29400 whereas resistance is seen near 41000levels.
Dhaniya prices traded down on account of increased supplies in the market. Stockists offloaded their positions in wake of improve crop condition in Rajasthan and Madhya Pradesh supported by favourable weather condition. About 13.5 thousand tonnes arrivals reported in 1-25th Dec'23 in APMC mandies against 7.9 thousand tonnes of previous year. Downfall in dhaniya is likely to be capped with weaker production prospects for upcoming season. Sowing activities are slower so farin year 2023 as compared to last year due to delayed kharif harvestin Gujarat as only 1.20 lakh Ha was sown under dhaniya in Gujarat as on 26th Dec Vs 2.20 lakh Ha of previous year. Similarly, about 47.2 thousand Ha was sown in Rajasthan against the 50 thousand Ha of previous year. Robust export demand is likely to support firmness in prices further. India exported about 3.9 thousand tonnes of dhaniya in Oct’23 against the 2.2 thousand tonnes of last year whereas overall export was reported at 70.12 thousand tonnes during Apr’23-Oct’23 higher by 271% Y-o-Y. Dhaniya prices are likely to trade in range of 7100-8050 levels.
Gold had an impressive performance this year, marking its best in three years. This surge was driven by growing expectations of U.S. interest rate cuts early next year, coupled with heightened global uncertainties such as the war in Ukraine and tensions in the Middle East, which bolstered safe-haven demand. As the year concludes, gold prices are poised to end near current levels, with the key determinant for the upcoming year being the timing and extent of Federal Reserve interest rate cuts. Anticipation for rate cuts has solidified following cooler inflation data, with traders now pricing in an 88% likelihood of monetary policy easing by March, according to the CME FedWatch tool. The attractiveness of gold is further amplified as lower interest rates diminish the opportunity cost of holding non-yielding bullion. Additionally, the Dollar Index is on track for its weakest yearly performance in three years, enhancing gold's appeal for holders of other currencies. Looking ahead, there's a looming threat to financial stability in the form of refinancing risk. If this risk prompts disturbances in credit markets, compelling Fed to swiftly increase stimulus measures, gold is likely to experience a rapid ascent. On the Comex, gold prices are currently trading around 2080 levels. Abreak and sustained rise above $2100 could propel prices to $2140 and $2170, with 2020 serving as a crucial support level. Silver, in parallel, might find support near $22.65 and encounter resistance around $24.66. In the upcoming week, gold prices are anticipated to see buying interest from lower levels, finding support around 62200 levels and facing resistance near 64000 levels. Silver, in a similar trajectory, may trade within the range of 72500 levels, with resistance expected near 76700 levels.
Crude oil prices concluded 2023 with a notable 10% decline, marking the first annual drop in two years. This downturn was spurred by a confluence of geopolitical concerns, production cuts, and global measures to combat inflation, leading to erratic fluctuations in prices. Recent stability on Friday followed a 3% dip the day before, triggered by increased caution among shipping firms navigating the Red Sea route, as the Houthi militant group's targeting of vessels in Yemen prompted major companies to suspend Red Sea routes. Despite this stabilization, both benchmarks are poised to close at their lowest year-end levels since 2020, when the pandemic severely impacted demand, causing prices to plummet. OPEC+ production cuts have proven insufficient to bolster prices, with benchmarks experiencing nearly a 20% decline from their peak this year. The oil market's weak year-end performance stands in stark contrast to global equities, with the MSCI index, tracking shares in 47 countries, showing a 20% increase from the year's outset. Investors are banking on anticipated rapid-fire rate cuts from the U.S. Federal Reserve in the coming year. These expected interest rate cuts, potentially reducing consumer borrowing costs in major consuming regions, coupled with a weaker dollar making oil more affordable for foreign buyers, may drive increased demand in 2024, according to industry experts. Looking ahead in the week, oil prices are expected to trade within the range of 5800 - 6180. Meanwhile, natural gas prices have seen a recovery due to stocks falling more than anticipated. Nevertheless, natural gas prices are set to register a more than 40% decline in 2023, the most significant drop since 2006, owing to surplus supply. In the upcoming week, natural gas prices are projected to move within a broader range of 197 to 215 levels.
Base metals may trade sideways with bullish bias on weaker dollar, firm Chinese demand and expectation of tightening supply. The prospect of U.S. interest rate cuts brightened outlook for the metal. China's November industrial profits posted double-digit gains as overall manufacturing improved, further supporting investors' optimism about metals demand. However China’ annual growth will slow down to 2.8% in 2024, as housing sector remains sluggish, according to analysts at brokerage China Futures, which may cap on metals demand. Copper may trade in the range of 720-750. The supply outlook for copper concentrate next year turned tight after Panama ordered the closure of First Quantum's Cobre mine and Anglo American lowered its copper production guidance for 2024. As a result, the global copper ore and concentrate market will be in deficit by around 170,000 tons in 2024, according to research house CRU's latest forecast. Zinc may trade in range of 223-240 levels. The global zinc market deficit eased to 52,500 metric tonnes in October from a deficit of 62,000 tonnes in September, data from the International Lead and Zinc Study Group showed. Lead can move in the range of 179-187 levels. Aluminium can trade in the range of 206-217 levels. U.S. President Joe Biden extended the suspension of tariffs on European Union steel and aluminium for two years to continue negotiations on measures to address overcapacity and low-carbon production. Some Japanese aluminium buyers have agreed to pay global producers a premium of $90 per metric ton over the benchmark price for shipments in January to March, down 7% from the current quarter. Steel long (Jan) is likely to trade in the range of 42600- 44500 levels with positive bias.
Cotton prices are expected to trade sideways to higher due to weaker production prospects for upcoming season. Cotton production may decline by around 8 per centto 294.10 lakh bales in the 2023-24 season due to lower yields in most growing regions, according to the CottonAssociation ofIndia (CAI). Cotton crop was sown in around 12.38 million hectares, which was over 3 per cent less than the previous year. The production this yearis expected to lower by 24.8 lakh bales at 294.10 lakh bales following infestation of pink ball worms in the northern region, while the yield in the southern and the central regions affected due to adverse weather condition. Amidst low demand, infestation of pink bollworm has made cotton less attractive in the Indian market Cotton Corporation of India’s (CCI) has procured close to 9 lakh bales (at an MSP) worth around Rs.3,600 crore this season. Cotton MCX prices are likely to trade in range of 54500-5800 levels0. Similarly, Kapas Apr’24 futures are likely to trade in range of 1500-1600 level. Cocud prices are expected to trade higher in wake of fall in supplies due to lower production estimates of cotton. Cocud prices are likely to trade in range of 2670-2850 levels.
Guar seed futures are likely to trade on firm note with falling arrival pace. Arrival pace has been slower that will prompt millers for buying at prevailing rates as crush margin has improved with rise guar meal prices. Rising seasonal demand for guar meal is likely to keep crushing demand of guar seed higher in coming weeks. Overall production of guar seed has been down by 11%-13% Y-o-Y in year 2023-23 that kept inventory level tighter for millers. Reports of rise in export of guar gum will also support firmness in prices. India exported about 23 thousand tonnes of guar gum against the 21.5 thousand tonnes of previous year. Guar seed prices are likely to find support near 5450 whereas resistance is seen at 5800 levels. Similarly, Guar gum prices are likely to honor support of 10300 whereas resistance is seen at 11000 levels.
Mentha oil prices are likely to trade higher with increased buying in domestic market. Supplies have dropped with fall in production in year 2023 and that will support firmness in prices ahead. However, sluggish export of mentha oil and menthol is still major concerns for exporters that will cap the gains. India exported about 7.3 thousand tonnes of menthol during Apr23-Oct’23 as compared to 8.6 thousand tonnes of previous year down by 15% Y-o-Y. Mentha oil prices are likely to find support near 900 and resistance can be seen at 960 levels.
Castor seed prices are likely to trade sideways to higher with reduced supplies in the market. Arrivals have dropped as farmers are reluctant to release their stocks in anticipation of further rise in prices. However, muted demand for castor oil and meal is still a major concern that will cap the excessive gains in prices. India exported about 213 thousand tonnes of castor meal during Apr’23- Oct’23 as compared to 189 thousand tonnes of previous year for same time period. Castor seed prices are likely to trade in range of 5600-6250 levels.
It closed at Rs. 6048.00 on 28th Dec 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.6122.25. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.0648. Based on both indicators, it is giving a sell signal.
One can sell near Rs.6120 for a target of Rs. 5800 with the stop loss of 6320.
It closed at Rs. 74959.00 on 28th Dec 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.74503.57. On the daily chart, the commodity has Relative Strength Index (14-day) value of 42.8368. Based on both indicators, it is giving a buy signal.
One can buy near Rs.73400 for a target of Rs. 76800 with the stop loss of 72000.
It closed at Rs.14198.00 on 28th Dec 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.13394.17 On the daily chart, the commodity has Relative Strength Index (14-day) value of 67.5305. Based on both indicators, it is giving a buy signal.
One can buy near Rs.14000 for a target of Rs. 14900 with the stop loss of 13500.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB saw a pause after two week of recovery; closed the year near the level of 266. The dollar index experienced a decline, which stimulated buying in some commodities. Due to the stimulus measures implemented by the People's Bank of China, resulting in an upward trend in base metals prices. Despite logging a strong rebound in December, copper prices were still set for only mild gains in 2023- about 3%- as concerns over an economic slowdown in top importer China battered prices. China's steel demand in 2023 will decline by 3.3% from 2022 and contract a further 1.7% in 2024, a state researcher forecast on Friday, weighed down by a significant drop in construction activity. China manufactured 952.14 million tonnes of crude steel in the first 11 months of 2023, up 1.5% year-on-year. Some Japanese aluminium buyers have agreed to pay global producers a premium of $90 per metric ton over the benchmark price for shipments in January to March, down 7% from the current quarter. Gold and silver concluded both the year and the week on a positive note. Gold’s recent rally was triggered by the Fed signaling it was done raising interest rates, and that it will trim lending rates in 2024. Gains in December put gold prices on course to rise between 12% to 14% in 2023. However, the energy market exhibited a weaker performance throughout the week. Oil prices are set to end 2023 about 10% lower, the first annual decline in two years, after geopolitical concerns, production cuts and global measures to rein in inflation triggered wild fluctuations in prices. Oil prices dropped as investors monitored developments in the Red Sea, where shippers are returning despite further attacks. Natural gas futures experienced a significant 5% drop on Tuesday. The decline aligns with unexpectedly bearish weather forecasts predicting light demand through December 30th, followed by colder temperatures favoring gas use in early January. It saw some recovery in later part of the week.
In the spices sector, jeera prices witnessed a significant 12% drop within just two trading sessions, keeping spot traders vigilant. Although some recovery occurred later, the overall outcome for the week remained in negative territory. On the flip side, turmeric prices demonstrated a notable uptrend in wake of shrinking supplies in the market. Supplies have been tighter whereas production outlook for upcoming season is looking bleak that is likely to keep prices elevated. Guar counter traded higher with shrinking supplies in the market. Guar gum export rose in Oct’23 as India exported about 23 thousand tonnes of guar gum against the 21.5 thousand tonnes of previous year.
The USDINR exchange rate, subjectto intervention by the Reserve Bank of India (RBI), experienced the modest increase of 0.5% by year-end, a notable contrast to the previous year's double-digit surge. Over the last three months, USDINR traded within the range of 83 to 83.50, with projections suggesting a continuation of this range- bound movement in the short term. While the overall trend appears bullish, a crucial level to watch is 83.50; a sustained breach might propel the exchange rate higher towards the 84-mark in the long term. For short to medium-term perspectives, any retracementtowards the 83.00 level is viewed as a buying opportunity. On the globalfront,the US dollarindex concluded the year below the 101 mark, reflecting a decline of more than 2% in 2023. This reversal follows a two-year period where the index gained approximately 15%. Anticipation of a shift in the Federal Reserve's monetary policy drove this decline, with market participants betting on potential interest rate cuts as early as March the following year. The Fed's shift to a more dovish stance, signaling multiple rate cuts in 2024 and beyond during its December policy meeting, further solidified these expectations. In contrast, the European Central Bank and the Bank of England signaled no immediate intention to cut rates, contributing to downward pressure on the dollar. The Japanese yen, while stabilizing near 141 per dollar, registered a third consecutive annual decline of nearly 8% in 2023, primarily influenced by the Bank of Japan's reluctance to unwind substantial stimulus measures amid a global environment where other central banks were tightening. The offshore yuan, maintaining a position around 7.1 per dollar, faced downward pressure throughout the year due to China's uneven post-pandemic recovery and a lack of aggressive policy support. The yuan recorded a decline of about 2.5% in 2023, marking its second consecutive annual decrease.
USDINR (JAN) 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 83.27. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 46 on the daily chart. Major support is seen around 82.9 levels, while resistance is expected near 83.6 levels.
One can sell near 83.5 for the target of 82.9 with the stop loss of 83.8
GBPINR (JAN) pair is currently in an Mild Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.32. However, the pair is in Neutral territory with a Relative Strength Index (14- day) value of 60 on the daily chart. Major support is seen around 104.3 levels, while resistance is expected near 106.75 levels.
One can buy near 105.75 for the target of 106.75 with the stop loss of 105.25
EURINR (JAN) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 64.63. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 65 on the daily chart. Major support is seen around 91.2 levels, while resistance is expected near 92.8 levels.
One can buy near 91.4 for the target of 92.4 with the stop loss of 90.9
JPYINR (JAN) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 57.99. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 64 on the daily chart. Major support is seen around 58 levels, while resistance is expected near 59.5 levels.
One can buy near 58.6 for the target of 59.6 with the stop loss of 58.1
Precision machined components manufacturing company Happy Forgings shares recorded 21 percent gains on the debut, i.e. December 27, which were better than Credo Brands Marketing and RBZ Jewellers' performance. The stock opened 17.6 percent higher at Rs 1,000 on the NSE, which was lower than analysts' expectations as well as a grey market premium. The heavy forgings manufacturer launched its Rs 1,009-crore public issue during December 19-21 and was subscribed 82.04 times. The initial public offering was a mix of fresh issue of Rs 400 crore and an offer-for-sale of Rs 608.59 crore. The price band for the offer was Rs 808-850 per share. Financially, the performance in the past years remained strong as the net profit grew by 46.7 percent year-on-year to Rs 208.7 crore for the year ended March FY23 and revenue increased by 39 percent to Rs 1,197 crore in the same period. Further, its EBITDA (earnings before interest, tax, depreciation and amortisation) in FY23 jumped 48 percent to Rs 341 crore and its margin expanded by 170 bps to 28.5 percent compared to the previous year.
Hyderabad-based Azad Engineering shares recorded strong double-digit gains on its debut and made several investors, including sports people Sachin Tendulkar, Pusarla Venkata Sindhu, Saina Nehwal, and Venkatsai Laxman Vangipurapu, Nikhat Zareen, and Velagapudi Pranavi Chandra wealthy. The high-precision forged and machined components maker has raised Rs 740 crore through an initial public offering, which consisted of a fresh issue of Rs 240 crore and an offer-for-sale of Rs 500 crore. The price band for the offer was Rs 499-524 per share. Azad Engineering is one of the preferred manufacturers of complex & highly engineered precision forged & machined components for original equipment manufacturers (OEMs) in energy (which contributed 89 percent to sales as of 1HFY24), aerospace/defence (9 percent), and oil & gas industries. The company derived 90 percent of its 1HFY24 revenue from exports to global OEMs, backed by long-term contracts. Key customers include General Electric, Honeywell International, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace and MAN Energy Solutions.
Automotive components manufacturer Emmforce Autotech has filed draft papers to raise funds through an initial public offering (IPO). The public issue will be entirely a fresh issue of up to 55,00,000 equity shares, each with a face value of Rs 10. Post the completion of the IPO, the company's shares are proposed to be listed on the SME Platform of BSE Ltd, a platform for small and medium enterprises, it added. The company proposes to utilise the proceeds from the fresh issue towards investment in its subsidiary, Emmforce Mobility Solutions Pvt Ltd (EMSPL). Proceeds will also be used to meet the working capital requirements of the company, and general corporate purposes, as per the draft red herring prospectus (DRHP). "We are planning to invest proceeds from the IPO in our subsidiary company EMSPL to expand its manufacturing capabilities and cater to untapped territories, including Europe, South America, Africa, the Middle East, Asia Pacific and India," Ashok Mehta, Chairman and Managing Director of Emmforce Autotech Ltd, said. The firm, promoted by Mehta, recorded a revenue of Rs 48.75 crore and a profit of Rs 4.38 crore in FY23.
Tata Sons Chairman emeritus Ratan Tata, who turned 86 today, will sell 77,900 shares of childcare products startup FirstCry in its upcoming IPO in 2024. The business tycoon had picked up a 0.02% stake for Rs 66 lakh in Brainbees Solution, which operates under the brand name FirstCry, in 2016. The average cost of acquisition of shares by Tata comes to Rs 84.72 per share, shows FirstCry's draft red herring prospectus (DRHP) filed with the market regulator Securities and Exchange Board of India (Sebi). His total investment in the company, therefore, comes to about Rs 66 lakh. The octogenarian industrialist, who led the Tata Group for decades, has been transformed into an angel investor for scores of startups like eyewear retailer Lenskart, digital payments brand Paytm, electric vehicle startup Ola Electric Mobility, and online stock trading platform Upstox. While the size of FirstCry IPO is not yet known, it includes a fresh issue of shares worth up to Rs 1,816 crore. The offer for sale (OFS) part includes offloading up to 54.4 million shares by existing investors like SoftBank, Mahindra & Mahindra (M&M) US private equity fund TPG.
Brainbees Solution, which operates omnichannel businesses of childcare products under the brand name FirstCry, has filed papers for its initial public offering (IPO) with markets regulator Sebi. While the size of the IPO is not yet known, it includes a fresh issue of shares worth up to Rs 1,816 crore. The offer for sale (OFS) part includes offloading of up to 54.4 million shares by existing investors like SoftBank, Mahindra & Mahindra (M&M) and US private equity fund TPG. SoftBank-operated SVG Frog is selling 2.03 crore shares while M&M plans to sell up to 28.06 lakh shares of the company in the IPO. Other selling shareholders include PI Opportunities Fund, TPG, NewQuest Asia, Apricot Investments, Valiant Mauritius Partners, TIMF Holdings, Think India Opportunities Master Fund and Schroders Capital Private Equity Asia. SoftBank is FirstCry's biggest shareholder and holds 25.5% stake in the startup, followed by M&M's 10.98% stake. The list of individuals selling shareholders include Tata Sons Chairman Emeritus Ratan Tata and FirstCry Co-Founder and CEO Supam Maheshwari.
IPO-bound Ola Electric Mobility Ltd plans to utilise Rs 1,226.43 crore out of the proceeds of its Rs 5,500-crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh, according to preliminary papers filed by the company with capital markets regulator Sebi. The company, which had filed the draft red herring prospectus (DRHP) last week is also looking to use Rs Rs 1,600 crore from the public fund raising on research and product development, while another Rs 800 crore will be deployed to repay debt. Ola Electric Mobility (OEM) which had on August 15, 2023 announced a line-up of electric motorcycles -- Cruiser, Adventure, Roadster and Diamondhead -- expects to begin delivery of the motorcycles in the first half of fiscal 2026. In its DRHP, the company said the Phase 1 (a) and Phase 1 (b) of the set up and expansion of the Ola Gigafactory at Krishnagiri district in Tamil Nadu will be funded from internal accruals and long term borrowings availed by its arm Ola Cell Technologies Pvt Ltd (OCT). The Phase 1 (a) is expected to be completed by March 2024 and the gigafactory will have a capacity of 1.4 GWh. In the Phase 1 (b), the capacity will be increased to 5 GWh by October 2024. These will be funded from internal accruals and long term borrowings availed by OCT, it said. The Phase 2 of the expansion envisions scaling up the capacity to 6.4 GWh by April 2025 and take it up to 20 GWh by the second quarter of calendar year 2026. In the details of the objects of the IPO, the company said a portion of the proceeds will be used for capital expenditure to be incurred by OCT for expansion of the capacity of cell manufacturing plant from 5 GWh to 6.4 Gwh
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Aditya Birla Sun Life Mutual Fund has filed a draft document with Sebi for a quant fund. Aditya Birla Sun Life Quant Fund will be an open-ended equity scheme following quant-based investment theme. The investment objective of the scheme will be to generate long term capital appreciation by investing in equity and equity related securities based on quant model theme.
WhiteOak Capital Mutual Fund has filed a draft document for WhiteOak Capital Pharma and Healthcare Fund. The scheme will be an open-ended equity scheme investing in the pharma and healthcare sector. The scheme will be benchmarked against S&P BSE Healthcare TRI. The scheme will be managed by Ramesh Mantri and Dheeresh Pathak ( Equity investments) and Piyush Baranwa (debt investments). According to the scheme information document, the investment objective of the scheme is to provide long term capital appreciation by investing predominantly in equity and equity related instruments of pharma and healthcare companies. The scheme will have direct and regular plans with growth options. The scheme will allocate 80 -100% of its assets in equity & equity related instruments of pharma and healthcare companies, 0-20% of assets in equity & equity related instruments of companies other than pharma and healthcare companies, 0-20% assets in debt and money market instruments and 0-10%, and 0-10% assets in units issued by REITS and InVITs.
Canara Robeco Mutual Fund has reduced the minimum amount for SIP Top-up facility for all schemes to Rs 100. The changes will be effective from January 1, 2024. The fund house informed the change to its investors through an addendum. The existing minimum top-up amount for SIP Top-up facility is Rs 500 and in multiples thereof.
| Particulars | Existing provision | Revised provision |
| Minimum Top Up amount for SIP Top-UP Facility | Minimum Top - up amount for the said facility wil be Rs 500 and in multiples thereof. In case the Top-Up amount is not mentioned but the upper limit is included in the application/mandate form, the default top - up amount will be Rs 500 | Minimum Top - up amount for the said facility wil be Rs 100 and in multiples thereof. In case the Top-Up amount is not mentioned but the upper limit is included in the application/mandate form, the default top - up amount will be Rs 100 |
This addendum shall form an integral part of the scheme information document (“SID”) and key information memorandum (“KIM”) of schemes and statement of additional information (“SAI”) of Canara Robeco Mutual Fund as amended from time to time, the fund house said. The fund house also stated that the revision will be implemented prospectively and shall remain in force till further notice. All other terms and conditions of SID, KIM and SAI will remain unchanged.
ICICI Prudential Mutual Fund said it has changed its ETF product symbols on BSE and NSE, so that investors can identify the ETF Schemes of the fund with ease. The codes will now be a combination of the name of the fund and the suffix ‘IETF’. IETF stands for ICICI Prudential ETF. For example, ICICILIQ will now be LIQUIDIETF, ICICINIFTY will be NIFTYIETF, and so on. Chintan Haria, Principal- Investment Strategy, ICICI Prudential A MC, said, “In line with our constant quest for making things better and smoother for our customers, we have changed the ETF product symbols to further simplify the identification of ETF Schemes for passive investment purposes. Product identification can sometimes be confusing for investors. Starting the ETF Schemes name followed by the suffix ‘IETF’, we believe will make the selection more convenient”.
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