We often hear the news that a company is going to be listed in the stock market and soon the shares of the same are likely to float in the stock market. Nevertheless, the converse is also true. i.e Just like the listing, delisting also happens.
Many times it happens that companies want to stop offering shares in the stock market. The process of removal of securities of a listed company from the stock market is known as delisting as a result of which the securities of that particular company would not be traded in the stock market.
If a company is delisted from the stock exchange, it means that no one can buy or sell its shares.
In future also, the companies will no longer be traded on the stock exchanges - BSE and NSE. The whole process of delisting shares for any company is conducted by SEBI.
Many companies have recently been delisted from the stock exchange. For instance, Dhani Services Ltd, Dewan Housing Finance Corporation Limited, BSEL Infrastructure Realty Limited and more.
There are a variety of reasons a company gets delisted from the stock exchange including lack of market capitalization, M&A, insolvency, inability to comply with exchange regulatory criteria and more.
Have you ever thought about what will happen to your shares if a company gets delisted? Even though you hold a strong position in the company’s stake, you are no longer eligible to sell those shares in the stock market.
However, you can sell the shares on an over-the-counter market. It means that you can find a buyer outside the stock market.
In a financial sense, any type of delisting of shares whether voluntary and involuntary will heavily impact the investors who own these shares.
Here, we will try to figure out what will happen to investors’ shares if the company get delisted. Can the same company come back after delisting, what are the advantages of delisting from the stock exchange and more?
Let’s take a quick tour with the type of delisting:
A company undergoes voluntary delisting if a promoter of a listed company wishes to delist the shares from the stock exchange permanently. In other words, by deciding for the permanent removal of securities, the company decides to go private.
The primary reasons for the delisting of shares are mergers or amalgamation, and non-performance of the company in the share market.
If you purchase the shares of the company that is likely to go for voluntary delisting, the company gives you two options as per guidelines of the Security and Exchange Board of India. Here are the options:
1. Get Rid of Your Shares Through Reverse Book Building
Reverse book building is a process through which the promoters or acquirer will buy back shares.
To bring back their shares, promoters are required to make a public notice of repurchase by sending a letter of offer to eligible shareholders along with the bidding form.
In such cases, eligible shareholders can seek this as an advantage to exit by tendering their shares through respective stockbrokers. Here, the final price is decided based on the maximum number of shares offered.
The promoter will have an option whether to consider or ignore the price. If the promoter accepts the price, all valid offers up to the final price are accepted.
Delisting is considered successful only if the shares tendered by the public reached the limits specified by the regulators. The company will remain listed in case the limit specified is not met.
The remaining investors will have an option to sell their shares to the promoters as they accept the shares at the same final price. The investors can do this up from the date of delisting.
2. Hold Until You Find a Suitable Buyer
If you haven't sold back your shares during the reverse book building process, you can still hold the shares until you find the right buyer. It's difficult to sell the shares as there will be a decline in liquidity without any over the exchange transactions.
Finding the right buyer who will buy the shares at the desired price will take some time. When a company decides to delist its shares for commercial purposes, the company offers its investors a buyback at a higher price that will result in higher profits.
Involuntary delisting involves the forced removal of listed company shares from the top stock exchanges because of several reasons such as late filing of the report, non-compliance with the listing guidelines, low stock price and more.
In the case of involuntary delisting, the promoters can buy back the shares at the share value determined by the independent evaluator. Although delisting does not affect the ownership of your shares, company shares will hold zero value after delisting.
Delisting can turn out to be again for some investors, however, for others, it will be considered as a pain depending on the prevailing situation.
Therefore any stock you hold, if get delisted, it is important to go through the circumstances and analyze the situation carefully. Make your decisions only after analyzing the situation where to sell or hold them in the long run.
The right decision taken with utmost care and a complete analysis can help you achieve your objectives for the long term investment.
Is it Possible for a Company to Come Back After Getting Delisted From the Exchanges?
Can a delisted stock be listed again? The answer is yes.
SEBI comes with different guidelines for relisting shares according to how they were relisted.
In the case of compulsory delisting, you will have to wait five years from their delisting date to get relisted again.
Delisting a company from the stock exchange will never receive any sort of benefits. There are certain regulations that a listed company has to follow such as publishing its financial statements and quarterly reports and conducting AGM.
सोने और चांदी की कीमतों में तेज़ी पिछले सप्ताह भी जारो रही। घरेलु वायदा बाजार में सोना पिछले सप्ताह 400 रुपये तेज़ हो कर 47600 रुपये प्रति दस ग्राम के स्तरों पर कारोबार किया। जबकि चांदी के भाव 2300 रुपये तेज़ हुए जिससे कीमते 65500 रुपये प्रति किलो पर पहुंच गई।
विश्व बैंक ने गुरुवार को अपने नवीनतम कमोडिटी मार्केट आउटलुक में कहा कि ऊर्जा संसाधनों की कीमतें 2021 में 80 प्रतिशत से अधिक बढ़ी जिसके कारण कई विकासशील देशों में निकट अवधि के लिए वैश्विक मुद्रास्फीति का जोखिम बढ़ गया है।
बहुपक्षीय विकास बैंक के अनुमान के मुताबिक साल 2022 की दूसरी छमाही में ऊर्जा की कीमतों में गिरावट शुरू हो सकती है क्योंकि आपूर्ति संकट कम हो जायेगा, साथ ही कृषि और औद्योगिक धातुओं की कीमतों में भी गिरावट होगी जिनकी कीमते 2021 में काफी उचे स्तरों पर पहुंच चुकी है।
उच्च खाद्य कीमतें भी खाद्य-मूल्य मुद्रास्फीति को बढ़ा रही है और कई विकासशील देशों में खाद्य सुरक्षा के बारे में सवाल उठने लगे है। जिससे कीमती धातुए जो मुद्रास्फीति से सुरक्षा का बेहतर विकल्प है, की मांग मजबूत है।
दुनिया की प्रमुख केंद्रीय बैंको द्वारा कोवीड -19 का असर कम होने पर एसेट टेपरिंग पर विचार शुरू कर दिया है लेकिन, आपूर्ति में बाधा रहने से औद्योगिक उत्पादन घटने लगा है जिससे डॉलर जो सोने के विपरीत दिशा में चलता है, में पिछले सप्ताह गिरावट रही है और सोने के भाव में तेज़ी है। खुदरा मांग मजबूत रहने से भी कीमती धातुओं के भाव में तेज़ी है।
घरेलु सराफा बाज़ारो में दिवाली के पहले सोने और चांदी की खुदरा मांग बढ़ने की सम्भावना है जिससे इनके भाव में तेज़ी रह सकती है। घरेलु वायदा सोने में 47200 रुपये पर सपोर्ट है और 48000 रुपये पर प्रतिरोध है। चांदी वायदा में 63700 रुपये पर सपोर्ट और 66000 रुपये पर प्रतिरोध है।
Before getting started, let’s understand liability in terms of accounting and economy. A liability is a financial event that is associated with an obligation towards a company and the company needs to fulfill it as a monetary settlement. In other words, liability is referred to the financial obligation of a company.
While looking at the inner operations of a company, it is important to understand that there are several things that happened at the same time. And during this time, maintaining all the operations smooth and productive is not always easy.
If a day comes when a company may incur a liability which is a company’s obligation for which the officials are required to prepare financial settlements in the future.
These events need to be quantified into monetary terms as it is recorded in a company’s ledger.
Liabilities are generally considered into 3 subtypes: current liabilities, non-current liabilities and contingent liabilities.
A contingent liability is an event that may or may not evolve into an obligation in the future of the company. As per GAAP or General Accepted Accounting Standards, a contingent liability is considered as a future expense that completely depends on the triggering event to convert it into an actual loss.
A lawsuit is a perfect example of contingent liability.
The most common examples of contingent liabilities are Pending lawsuits and product warranties because their outcomes are uncertain. The accounting rules for contingent liability will heavily depend on the amount of liability and the likelihood of the event occurring. Here, the accounting rules clarify that the financial statement readers receive sufficient information.
When dealing with a contingent liability, there are two yardsticks to follow:
Contingent liabilities are based on the scale of their probabilities. Following are the different types of contingent liabilities:
Any financial obligation that has at least a 50% chance of occurring in the future is considered a probable contingency and the loss is considered as a probable contingent liability that is lower than 50%.
Therefore, a possible contingency is usually not recorded in the books, but rather mentioned in the footnotes.
Another reason behind the theory is that a possible contingency is not recorded in the books because it cannot be expressed in monetary terms because of its limited occurrence.
As stated above, any contingency that fails to fulfill the two yardsticks cannot be recorded in the books of a company.
Any contingency that has minimal chances of occurring and which is not possible under normal circumstances is termed as a remote contingency. This is because the chances of such contingencies translating to losses for the company are negligible and hence they are not recorded in the books.
Contingent liability is a broad term and it can act as a challenge for the companies who either rule out or include a contingent liability in their books.
Therefore, it is suggested that companies should consult professionals who are into this for a long time. This way, companies abide by the rules of GAAP and also go through a substantial argument when being audited. For example: If a company faces litigation, it should consult a lawyer and depend on the inclusion or exclusion of liability.
When a company recognizes the losses in time, it will have time to set up the provisions or take a call to action against such losses. This way, the company will try to attenuate the impact of future losses as well. Nevertheless, this is not a motive behind the recording of a contingency as a liability in the books.
Rather, when a contingent liability is recorded in the books of a company, all the information becomes visible to the auditors and shareholders as well. Therefore, we can take this conclusion that by registering a contingent liability, the company can safeguard its shareholders against huge losses.
Despite the fact that cases such as lawsuits can be monitored by the shareholders of a company, certain information such as warranty cannot be accessible by the shareholders as these are the forms of contingent liability. Hence, to protect investors’ interest, probable contingent liabilities of all kinds shall be recorded in the company’s book. It allows individuals to make better investment decisions.
Current Liabilities
Financial obligations of a company that can be paid off in over a year.
Non-Current Liabilities
Financial obligations of a company that need to be written off within a year.
Financial obligations that might or might not arise in the future, depend on the outcome of a particular event.
Record in Books
The liabilities are recorded in the balance sheet. Liabilities are posted in the balance sheet. If a contingent liability carries a 50% or higher risk of being realized, it is posted in the P&L account as well as the balance sheet.
Examples
A company will always record probable contingent liabilities on its books; a possible emergency that will be mentioned in the footnotes and distant events are completely ignored.
Shareholders, on the other hand, must stay informed about contingent liabilities that occur and also observe numerous types of liabilities to be fully informed about the financial liquidity and solvency of an organization.
DSP Investment managers announced the launch of DSP Nifty 50 Equal Weight ETF on the very first Monday of this week. The ETF is India’s first exchange-traded fund which is based on the Nifty 50 Equal Weightage Index.
The new fund offer NFO opens for subscription on October 18th and closes on October 29th, after which it could be bought and sold on the major stock exchanges, the company said.
Before taking a deep dive into the Nifty 50 Equal Weight Index lets take a quick glance at ETF:
An ETF is a basket of securities whose shares are sold on the stock exchanges i.e. NSE and BSE. They offer similar features and potential benefits like mutual funds, stocks and bonds.
ETFs are similar to stocks as they provide investors with a facility to trade throughout the day at prices that change based on supply and demand.
Like stocks, ETFs also possess some features of mutual funds as ETF stocks represent partial ownership of a portfolio built by professional managers.
There are different types of ETFs, each with a different investment focus.
Here are some of the most common ETFs.
The returns of Diversified Passive Equity ETFs are completely dependent on the performance of widely used equity market benchmarks such as the S&P 500, the Dow Jones Industrial Averages and more.
Niche passive equity ETFs, are those whose returns are based on the performance of S&P 500 industry subgroups or Russell 2000 small companies.
These ETFs provide investors with focused exposure to help them fine-tune their portfolio strategies.
As with passive diversified funds, these niche portfolio funds are generally made up of the same stocks that are used to calculate their benchmarks.
Active Equity ETFs allow their managers to use their own judgment when choosing investments rather than being rigidly tied to a benchmark index.
Active ETFs can have the potential to outperform a market benchmark, but they can also carry higher risk and higher costs. 4,444 bond ETFs focus more on bonds than stocks.
Large fixed-income ETFs are those that actively traded on the stock market but provide low returns or steady returns to the investors. In other words, the returns generated from large fixed income are not very high yielding.
In an equal weight index, each stock present in it receives equal weight. For instance, if the method is applied to the index Nifty 50, then the equal weightage index will own the same 50 companies of Nifty 50 and will have 2% weight of each company.
This method is not like the current stock market cap design where some stocks hold a large weight such as 9-10% and many stocks in the lower tail will get only 0.3%.
This provides all the companies with a fair chance to contribute equal returns than completely dependent on the top 10 company stocks.
In Nifty 50, the stock weights are decided on the basis of market capitalization and weightage changes based on the movement of the stock market. Hence, the returns generated from the market are slanting towards the stocks that possess the highest weight.
In the Nifty 50 Equal Weight Index, equal weights are assigned to each company’s stocks and the weight of each stock is reset to equal weight every quarter. Here, they provide equal opportunity for every stock to perform.
The DSP Equal Nifty 50 ETF operates on the two fundamental investment principles that invest in industry leaders who can navigate the cycles of the stock market with better diversification between companies and sectors with equal share weights, offering low specific risks and low industry concentration compared to Nifty.
Aside from a lower-cost diversified portfolio, the Nifty 50 ETF has the same weighting benefits of ease of purchase and real-time stock trading.
The equal index is reweighted quarterly. Because of this quarterly rebalancing, an equally weighted portfolio has a built-in profit mechanism that buys the underperforming at low prices and sells the best performing at high prices.
The new fund offering opens for subscription on October 18 and ends on October 19, after which it can be bought and sold on the stock exchanges.
Kalpen Parekh, Dr MD and CEO of DSP Investment managers has said that when we explore this concept of equally-weighted indices around the world, we find that the same weights tend to produce better returns than market capitalization-weighted indices over long periods of time.
This is done because all companies have the opportunity to participate, not just a few. Such a strategy has its underperforming phase when the benefits of the economy polarize on selected companies, as they have been for the past five years.
However, since good companies in all industries grow and create long-term value, a balancing strategy gives each company significant weight in the index.
The same weighting also ensures that the sector with the most ownership is at risk at all times, ”Parekh said.
Anil Ghelani, CFA, Director of Investments and Passive Products, DSP Investment Managers, emphasized that equally weighted strategies exploit certain market inefficiencies due to behavioral distortions.
Since the strategy is not controlled by an excess of optimism in specific actions, the same weighting takes the benefits of certain stock market inefficiencies caused by behavioral biases.
These inefficiencies have contributed to the balanced index strategy eclipsing traditional index strategies based on market capitalization, ”says Ghelani.
हम एक अनोखा बुल रन देख रहे हैं, जहां महंगाई और बढ़ती बॉन्ड यील्ड की सभी चिंताओं को नजरअंदाज करते हुए बूल्स 18500 के स्तर की ओर बढ़ रहे हैं, वही हमने लंबे समय से कोई बड़ी गिरावट नहीं देखी है।
इस बुल रन का सबसे दिलचस्प हिस्सा यह है कि यह संस्थागत निवेशकों के प्रवाह की परवाह नहीं कर रहा है जहा पिछले सप्ताह नेट संस्थागत निवेश नेगेटिव रहा वही निफ्टी ने पिछले सप्ताह के प्रत्येक कारोबारी सत्र में अपनी नई ऊंचाई को छुआ तथा 2.5% की साप्ताहिक बढ़त के साथ अपने उच्चतम स्तर पर समाप्त हुआ।
FII ने केवल 1037 करोड़ रुपये की बाजार में खरीददारी की जबकि DII ने 3296 करोड़ की बिकवाली की, इसलिए संसस्थागत निवेशकों द्वारा नेट 2259 करोड़ रुपये की बिक्री हुई। बाजारों में परिस्थिति बदल रही है और हम रिटेल निवेशकों की ताकत देख रहे हैं क्योंकि एसआईपी मार्ग के साथ-साथ डायरेक्ट इक्विटी मार्ग के माध्यम से रिकॉर्ड इनफ्लो हो रहा है।
ये इनफ्लो पिछले बुल रनों की तुलना में ज़्यादा मज़बूत दिख रहा हैं क्योंकि इन निवेशकों का दीर्घकालिक दृष्टिकोण है और हर गिरावट पर खरीदारी के रुख के साथ शार्ट टर्म अस्थिरता से निपटने के लिए तैयार हैं, हालांकि इन निवेशकों के स्वभाव की वास्तविक परीक्षा थोड़े बड़े करेक्शन में होगी क्योंकि अभी तक नए निवेशकों ने बाजार में कोई बड़ी मुनाफावसूली नहीं देखी है।
अगर हम डेरिवेटिव डेटा के बारे में बात करे तो इंडेक्स फ्यूचर में FII का लॉन्ग एक्सपोजर 67% है, जबकि पीसीआर 1.53 मार्क पर है, जो बाजार में कम्फर्टेबले लेवल का संकेत देता है, हालांकि 21 अक्टूबर की एक्सपायरी के लिए ओपन इंटरेस्ट पोजीशन बिखरी हुई है, जहां पर कॉल ऑप्शन में OI 18500-19000 की रेंज में है जबकि पुट ऑप्शन के लिए यह 18300-18000 जोन है।
टेक्निकल चार्ट पर 18500 एक तत्काल और मनोवैज्ञानिक रेजिस्टेंस है, जबकि 18700 एक अपस्लोपिंग ट्रेंडलाइन रेजिस्टेंस होगा। वही दूसरी तरफ, 18250 एक तत्काल सपोर्ट स्तर है जबकि 18000 -17950 किसी भी मुनाफावसूली पर महत्वपूर्ण सपोर्ट जोन होगा।
निफ़्टी के मुकाबले बैंकनिफ्टी बेहतर प्रदर्शन कर रहा है और 40000 के महत्वपूर्ण रेजिस्टेंस को टेस्ट कर सकता है और 39000-38800 का क्षेत्र तत्काल और मजबूत सपोर्ट क्षेत्र बन गया है जबकि 38100-37900 महत्वपूर्ण सपोर्ट क्षेत्र होगा।
IT सेक्टर अंडरपरफॉर्म कर सकता है क्योंकि यह लोअर हाई और लोअर लो फॉर्मेशन बना रहा है जबकि मेटल सेक्टर नए हाई के तरफ बढ़ सकता है । पीएसयू बैंक भी आने वाले दिनों में अपनी मजबूती जारी रख सकते हैं।
अगर अगले सप्ताह के संकेतों की बात करें तो सितम्बर के तिमाही नतीजे बाजार पर हावी रहेगी जहां बाजार सोमवार को एचडीएफसी बैंक और एवेन्यू सुपरमार्ट्स (डी-मार्ट) की कमाई पर बाजार रियेक्ट करेंगे , साथ ही अल्ट्राटेक सीमेंट, एसीसी, एचयूएल, नेस्ले, एशियन पेंट्स, जेएसडब्ल्यू स्टील, एचडीएफसी लाइफ, और रिलायंस इंडस्ट्रीज सप्ताह के दौरान अपने तिमाही नतीजे घोषित करेगी ।
तिमाही नतीजे के अलावा अन्य ग्लोबल संकेत महत्वपूर्ण होंगे जहां ग्लोबल बाजारों ने एक करेक्शन के बाद अच्छा प्रदर्शन करना शुरू किया है। कमोडिटी की बढ़ती कीमतें अभी भी चिंता का विषय हैं लेकिन बाजार फिलहाल इस तथ्य पर विचार नहीं कर रहा है। डॉलर इंडेक्स और यूएस बॉन्ड यील्ड थोड़ी ठंडी हुई लेकिन आने वाले दिनों में बाजार की नजर इस पर होगी।
The Indian Railway Catering and Tourism Corporation (IRCTC) is a Miniratna PSU Owned by Govt. of India through Indian Railways.
It is the only authorized entity to provide certain services to the Indian Railways, including online ticketing, catering, and selling drinking water on trains and at railway stations.
IRCTC shares rallied from 2000 to 4900 level in just four-month. It has been climbing sharply on the stock market, scaling new highs in the stock is now a regular phenomenon.
Reopening of economic activities & pickup in demand in tourism sector also reaching to their pre COVID level boost up the stock price.
Technically IRCTC has given breakout after consolidation above 4000 and forming higher high and higher low chart formation which is bullish in nature.
As IRCTC stock has already rallied a lot from its SME-IPO Price (Issue 315-320), Stock may gain further due to its Monopoly Business Model. IRCTC also aggressively expands in the hospitality business will take the stock to a new high in the upcoming years. So, Long Term investors can buy on dip around level 4000-4100 for 6000+ Target.
घरेलु वायदा सोने में पिछले सप्ताह 1000 रुपये की तेज़ी देखि गई और कीमते 48100 रुपये प्रति दस ग्राम के स्तरों को छू गई। दिसंबर वायदा चांदी भी सप्ताह में 1500 रुपये तेज़ होकर 63800 रुपये प्रति किलो के स्तरों को छुआ।
हालांकि शुक्रवार को कीमती धातुओं में मुनाफा वसूली भी रही। डॉलर जो सोने के विपरीत दिशा में चलता है, में 0.2 प्रतिशत की साप्ताहिक गिरावट दर्ज की गई। पिछले सप्ताह कॉमेक्स वायदा सोना 1800 डॉलर प्रति औंस के ऊपरी स्तरों तक गया जो सितम्बर माह के बाद का उच्चतम स्तर है।
तेल की कीमतों में 80 डॉलर प्रति बैरल के सात साल के उच्च स्तर पर पहुंचने के बाद अंततः मुद्रास्फीति से बचाव और सुरक्षित आश्रय के रूप में सोना अपने लेबल पर खरा उतरा है। लेकिन, उम्मीद से बेहतर खुदरा बिक्री रिपोर्ट और कॉर्पोरेट कमाई के मजबूत आकड़ो ने अमेरिकी बांड यील्ड को उच्च स्तरों पर पंहुचा दिया जिससे गैर उपज वाली संपत्ति सोने में ऊपरी स्तरों पर दबाव रहा।
भारत, अमेरिका और यूरोप के प्रमुख त्योहारों के पहले अच्छे खुदरा बिक्री के आंकड़े, कॉर्पोरेट अर्निंग को आगे भी मजबूत बने रहने का संकेत देते है जिससे अमरीकी शेयर मार्किट डाव जोंस में पिछले सप्ताह 1.5 प्रतिशत की तेज़ी रही।
कोल् आपूर्ति में बाधा आने से चीन और यूरोप में पावर शार्टेज की समस्या बनी हुई है जिसके कारण कच्चे तेल और औद्योगिक धातुओं के भाव में फिर से तेज़ी देखि जा रही है। कच्चे तेल के भाव, औद्योगिक धातुओं के बढ़ते भाव और मजबूत होती खुदरा मांग, मुद्रास्फीति को सपोर्ट कर रही है जिससे सोने और चांदी में तेज़ी बनी रहने के आसार है।
कीमती धातुओं में इस सप्ताह तेज़ी रहने की सम्भावना है। घरेलु वायदा सोने में 47000 रुपये पर सपोर्ट है और 47700 रुपये पर प्रतिरोध है। चांदी वायदा में 62000 रुपये पर सपोर्ट और 64000 रुपये पर प्रतिरोध है।
India’s coal power giant NTPC is planning to take its first stride towards green energy as many entities are looking forward to such steps in order to reduce coal usage.
According to its new plan, NTPC is planning to float its shares through SME-IPO in three units and expects to raise approximately $ 150 billion through it. In this way, the company plans to fundraise through an initial public offering in three units including renewable energy, electric power corporation and Vidyut Vyapar Nigam.
Furthermore, NTPC plans to sell shares in NTPC renewable energy within a year. In addition to this, the company is planning to sell its shares in Northern Eastern Electric Power Corp and NTPC Vidyut Vyapar Nigam.
As per the sources, the coal power giant is seeking to sell its stakes in NTPC-SAIL Power Co, a joint venture of Steel Authority of India for supplying electricity to the steel maker’s mills and townships.
NTPC, India’s largest electricity production company is now looking towards green energy usage so as to reduce the use of coal which has a heavy impact on the environment and human health.
Rising climate change is a major concern nowadays and that’s why the NTPC has decided to minimize the use of coal by restricting the funding of fossil fuel projects which play a major role in pollution.
India’s business tycoon Mukesh Ambani, Gautam Adani, Sajjan Jindan have acknowledged these major loopholes and hence they have decided to break the paradigm and announced plans for a huge expansion in green energy.
NTPC has won bids for 2,765 megawatts of renewable projects in the current fiscal year, which is 77% more than the current fiscal year.
As of now, the company generates 90% electricity only through coal, however, with the rising awareness of going green, the company has planned to work in this sector too. The company would help build 60 gigawatts of renewable energy projects by 2032, which is almost double the current plan.
Let’s take a sneak peek into NTPC’s three units which are all set for divestment via public offer.
In October 2020, NTPC had incorporated NTPC Renewable energy by taking numerous steps to make its energy portfolio greener by adding significant capacities of renewable energy sources.
By launching its IPO in the renewable energy sector, NTPC could unlock the market performance of other energy renewable companies which have much lower capacity addition targets.
Now, the company’s main objective is to attain 60,000 MW of green capacity by 2032, which is only 1400 MW in the current fiscal year.
Apart from solar and wind power projects, NTPC’s core yet the future objective is to invest in green hydrogen and green methanol that are manufactured with the help of renewable energy.
NVVN was founded by NTPC in the year 2002 to tap the potential of power trading in the country. Now, NVVN is planning a project that will procure green, agro-based fuel for blending at thermal units.
Recently, NVVN filed a tender to procure 20 m tonnes of bio pellets made from farm stubble.
According to the senior executives of NTPC, NVVN is being redesigned in order to become the energy transition company for NTPC.
It will take up projects that can add to NTPC’s ESG (environmental, social and governance targets). After going public, NVVN would be a sole example of technology for the energy transition in the country.
NEEPCO is under the ownership of National Thermal Power Corporation Limited. It was formed on 2 April 1976, to plan, investigate, design, construct and maintain a power station in the North Eastern Region of India.
As per the sources, NTPC has acquired a 100 per cent equity stake in NEEPCO. It operates seven hydropower stations (1,525), three gas-based (527 MW), and one (5 MW) solar power station, including a 600 MW Kameng hydro project.
Recently, the union power ministry has advised NEEPCO to reduce its manpower strength and diversify its operation into renewable energy and expand it across the country.
Keeping this in mind, NEEPCO has signed an MOU (memorandum of understanding) with all state’s of the Indian Renewable Energy Development Agency for construction and acquiring new renewable projects.
The government’s monetization plan covers various things such as it garner Rs 700 bn through the sale of assets of state-owned companies which includes NTPC, Rural Electrification Corporation and Power Grid.
Government think tank Niti Aayog has identified assets worth Rs 398.3 billion for monetization at the end of 2025.
Here is a stock chart of 1 year of NTPC:
NTPC, also known as National Thermal Power Corporation Limited is an Indian statutory corporation, which is incorporated under the companies act 1956 and is under the jurisdiction of the ministry of power, the government of India.
The company is headquartered in Delhi. NTPC’s main operation is the generation and sale of electricity to state-owned power distribution companies in India.
The company is also involved in consultancy and project contracts including project management, construction management, operation and management of power plants. As of now, the NTPC is considered the largest power generating company in India with a generating capacity of 62,086 megawatts MW.
NTPC i.e. the generator company could sell a part of its shares in NTPC Renewable energy. Also, the company is ready to float its shares in North Eastern Electric Power Corp, the hydropower unit and NTPC Vidyut Vyapam Nigam limited. Furthermore, the company also plans to sell NTPC SAIL Power Co.
This fiscal year, the company has managed to bet upon renewable projects of approx 2,765 megawatts.
It operates 90% of its production capacity on coal. However, it plans for a record expansion for green energy.
Soon NTPC will come up with its new plans regarding development and IPO.
As the Indian stock market experienced a great surge after witnessing a correction in the last week, stock market research company Swastika suggested some of the greatest stock picks that investors should be looking forward to.
According to research analysts, these stocks are likely to give outstanding returns to the investors as they feel the stocks perform well during the festive season due to the high demand for their products this time.
Hindustan Unilever Limited is a well-known consumer goods company that is headquartered in Mumbai. The company is a subsidiary of Unilever. Since it’s a consumer goods company, its products include food, beverages, personal care products, cleaning agents, water purifiers and other consumer goods.
Some of the famous brands of HUL are Lux, Lifebuoy, Pears, Dove, Lakme, Lyril, Comfort, Surf excel, Clinic Plus, Glow and Lovely, Vaseline, Pepsodent and many tea brands such as Taj Mahal, Brooke Bond, Lipton etc.
Analysts believe that the HUL gives better stock trading returns in the festive season due to the high demand for its products. Also, the company gave steady returns during the pandemic which means that the company always remains ahead of the competition.
Hero MotoCorp is a multinational motorcycle and scooter manufacturer company, primarily known for manufacturing two-wheelers around the world. Headquartered in Delhi, Hero MotoCorp holds a market share of 37.1% in the two-wheeler industry.
It has been seen that the stocks of Hero MotoCorp have grown up to nearly 20 per cent from the previous close of Rs 2847.35.
According to the stock market research analysts, the company has managed to maintain its dominance in the 2 Wheeler segment as it holds a strong foot in the entry-level motorcycle segments.
Other factors such as Hero’s partnership with Ather Energy, Harley Davidson and its strong recovery in FY22 from the pandemic makes it a good company to invest in.
SBI Cards and Payment Services is a payment solution provider company in India.
Launched in October 1988, the SBI card was launched by SBI and GE Capital. SBI card offers numerous payment modes such as NEFT, Paynet-pay-online, Visa Credit Card Pay, Pay via UPI, Pay via Mobile App, Pay via Yono etc.
Analysts believe that SBI cards may give a whopping return of 15% up to Rs 1,210 from the previous close of Rs 1,046.20. Stocks of SBI cards have regained their momentum because online shopping and spending continue to resume post-pandemic.
They further noted that the company gave a positive trend on the asset quality front and strong moats that will support long term growth which in turn help market share gains.
Relaxo Footwear Limited is India’s largest multinational footwear company. Headquartered in Delhi, the company is termed as one of the largest footwear manufacturers in India in terms of volume, revenue with a market share of 5%.
Relaxo holds a strong portfolio of footwear products and expansion which makes it achieve a good revenue and earnings CAGR of 19% and 22% over FY21-FY24E.
Other factors such as strong operating cash flows, efficient working capital, good EBITDA margins and healthy asset turns makes Relaxo a profitable stock that should be in everyone’s portfolio.
Aditya Birla Fashion and Retail is an Indian fashion retail company that has a network of 3000+ stores with a presence of 2500+ multi-brand outlets across India.
As per the research analysts, innerwear and other fashion ventures like western and ethnic wear are likely to provide outstanding profits to ABFR company especially during this festive season.
Also, the company noted that several lifestyle brands such as Louis Philippe, Peter England, Allen Solly lead in men's casual and formal wear will yield healthy share market trading returns in the upcoming years.
As the festive season has started, traveling often remains to be the main clause. As a result, Safari Industries stock price is all set to jump over 8% from the last close of Rs 851 apiece.
Although the company’s earnings have been reduced for the past 2 years as traveling and people movement continue to be restricted for indefinite periods, festive trips, marriage season will support growth in H2FY22.
LIC Housing Finance Limited is considered one of the largest housing finance loan companies in India. LIC HFL, which is a subsidiary of LIC, provides home loans at lower interest rates.
As the real estate cycle needs to be improved, shares of LIC will soon take a boom.
Also, the company is all set to launch its SME-IPO at the end of the year, which in turn makes its stock price higher than before.
PI Industries Limited is a fast-growing Agri sciences company with a unique business model from the agChem value chain from R&D.
Innovation and strong execution track records make PI industries, one of the successful companies in the field of agriculture and others.
The company was founded in 1947 as Mewar Oil and General Mills Limited.
In 1993, the company was further renamed as PI Industries to reflect its new diversified businesses such as Agri inputs, Fine Chemicals, (CRAMS) Contract Research and Manufacturing Services, polymers and engineering services.
It has one of the highest R&D spends at 3.5% of sales while focusing keenly on innovations.
PI Industries is diversified into many verticals. Growth momentum is likely to come from other things such as the pharma foray through the acquisition of Ind-Swift laboratories and other opportunities in new verticals.
This festive season, build your wealth by investing in potential stocks. The stocks we mentioned above are not only for short term profit. Instead, they have the potential to generate extraordinary stock market trading returns in the long run also.
सोने के भाव के लिए पिछले सप्ताह राहत भरा रहा और कीमतों मे निचले स्तरों से 1100 रुपये प्रति दस ग्राम तक का सुधार देखा गया। अमेरिकी कांग्रेस के समक्ष हुए भाषण में फ़ेडरल बैंक प्रमुख जेरोम पॉवेल के मुताबिक मुद्रास्फीति साल 2022 तक रहेगी और रोज़गार बाजार में आगे सुधार की आवश्यकता होगी।
अमेरिकी ट्रेज़री सेक्रेटरी जेनेट येलेन ने ऋण सीमा (डेब्ट सीलिंग) पर चेताया की अमेरिकी ट्रेज़री 18 अक्टूबर तक संभवतः नगदी रहित हो जायेगा। जिसके बाद संसाधन सिमित रहेंगे और प्रतिबद्धता को पूरा करने में समस्या रहेंगी। और येलेन के मुताबिक अमेरिका इतिहास में पहली बार कर्ज भुकतान मे डिफ़ॉल्ट कर सकता है।
रिपब्लिकन ने विधेयक पारित करने से इनकार कर दिया है जो सरकार को एक बार फिर ऋण सीमा को निलंबित करने की अनुमति देगा। ऋण सीमा उस राशि की सीमा है जो अमेरिकी सरकार अपने ऋणों का भुगतान करने के लिए उधार ले सकती है। जिससे सोने के भाव में पिछले सप्ताह बढ़ोतरी देखि गई। उधर, चीन में रियल एस्टेट कंपनी एवरग्रांड का भी कर्ज संकट गहरा रहा है।
जिसके कारण वैश्विक बाजार दबाव में है और डिफ़ॉल्ट होने की सम्भावना बढ़ी है। लेकिन अर्थव्यवस्था में कर्ज बढ़ने पर सोने में सेफ हेवन मांग सपोर्ट कर सकती है। नियामक ने भारत में सोने के हाजिर कारोबार और सिल्वर ईटीएफ को भी मंजूरी दी है। गोल्ड एक्सचेंज में इलेक्ट्रॉनिक गोल्ड रिसीप्ट के माध्यम से हाजिर सोने में कारोबार होगा। गोल्ड एक्सचेंज और सिल्वर ईटीएफ कीमती धातुओं के कारोबार को बढ़ाने और कीमतों में समानता और पारदर्शिता रहेगी।
इस सप्ताह, कच्चे तेल के बढ़ते हुए भाव के बीच ओपेक की बैठक, अमेरिकी पैरोल के आंकड़े और चीन में बढ़ते कर्ज संकट के बीच साप्ताहिक अवकाश, कीमती धातुओं के भाव को निचले स्तरों से सपोर्ट कर सकते है। दिसंबर वायदा सोने में 45700 रुपये पर सपोर्ट है और 46800 रुपये पर प्रतिरोध है। चांदी में 58000 रुपये पर सपोर्ट और 61000 रुपये पर प्रतिरोध है।
The craziness of IPOs in India reaching new heights with reports claiming that it will hit the Rs 100 Lakh Crore IPO mark at the end of the year. As many companies had suffered from a big financial loss due to COVID 19 outbreak, this is looking like a positive sign.
The stock market has recovered well as we can see the Sensex is reaching new heights every day.
A positive stock market thing has grown up the confidence in the companies to go public to grab this opportunity.
As a result, numerous IPOs are expected to go live in October 2021.
There are around 42 SME-IPOs registered in the calendar of 2021. And the total amount raised only through IPO in 2021 is around Rs 58,000 Crores.
The numbers are enough to tell you about the craziness of IPOs, but still, there is a lot to come this year.
Top companies such as LIC IPO, Ola, Nykaa, Star Health, Oyo, Policybazaar and many more are ready in the line.
Companies such as Zomato, Barbeque Nation, Paras Defense, Devyani International have closed their share issues with great success. While others are preparing to file their DRHP with stock market regulator SEBI.
Below is the list of companies that are ready to launch their IPOs between October 2021 and March 2022.
Companies Tentative Size LICRs 55000 CrorePolicyBazaarRs 6000 CroresEmcure PharmaceuticalsRs 4,500 CroresPaytmRs 16,600 CroresNykaaRs 4000 CroresPharmEasyRs 3700 CroresBoat ElectronicsRs 3500 CroresLava InternationalRs 2400 CroreStar health insuranceRs 2000 CroreMobiKwikRs 1900 CroresMedplusRs 1600 CroresPenna CementRs 1550 CroreHelthium MedtechRs 1,500 CroreSupriya LifesciencesRs 1200 CroreApeejay Surrendra Park HotelsRs 1000 CroreMedi Assist Healthcare ServicesRs 850 CroreHP AdhesivesTo be announcedDelhiveryTo be announcedOyo Hotels and HomesTo be announcedESDS Software Solutions LtdTo be announcedOlaTo be announcedAnand Rathi Financial Services LtdTo be announced
Here is a complete list of IPOs that are gearing up to go public in October 2021.
Note** - This information is unconfirmed and subject to change as further updates are available.
Company NameIPO Lot SizeExpected DateArohan FinancialsRs 1800 CroreOctober 2021MobiKwikRs 1900 CroreOctober 2021CMS InfosystemsRs 2000 CroreOctober 2021Star Health Allied InsuranceRs 3000 CroreOctober 2021NykaaRs 4000 CroreOctober 2021Emcure PharmaceuticalsRs 4500 CroreOctober 2021
Emcure Pharmaceuticals is an Indian multinational pharmaceutical company. Headquartered in Pune, Emcure Pharmaceuticals works in manufacturing, developing and marketing a wide range of pharmaceutical products worldwide.
The company was founded by Satish Mehta, a pharma distributor’s son. He started Emcure as a contract manufacturer for multinationals in 1981, then started to sell his own branded generics.
Emcure is gearing for an IPO of about Rs 4,500 Crore. The public issue involves a fresh issue of equity shares of Rs 1100 Crores and an offer for sale of nearly 18 million sales by the current stakeholders and promoters.
The company uses these funds to repay its current debt.
Nykaa is an Indian eCommerce company, primarily known for selling beauty, fashion and wellness products across websites.
Nykaa was founded in 2012 by Falguni Nayar, a former managing director at Kotak Mahindra Capital Company. Earlier, it was launched as an eCommerce portal, serving a wide range of beauty and wellness products.
In 2015, the company expanded its business and began selling fashion products online. In 2018, Nykaa launched Mykaa men with an intention to provide multi attire for men’s grooming.
In 2020, Nykaa launched Nykaa Pro. It's a premium membership program that provides special access to professional beauty products.
The total valuation of the total public issue is Rs 4000 Crore. It comprises fresh issue shares of Rs 525 crores and an Offer for Sale of up to 43 million shares.
The user base of Nykaa has been constantly increasing every year. Right now, the company has about 1.5 million shares. The company has more than 1200 brands on its website.
As of November 2020, Nykaa has a valuation of $ 1.8 billion. After this IPO, the company targets a valuation of $5 billion.
Nykaa is only the startup, which is expecting a profit from IPO launching.
Star Health and Allied Insurance Company is a health insurance company which is located in Chennai. The company is known for providing services in health, travel insurance, and personal accident.
On 21 July 2021, Star Health and Allied Insurance filed DRHP with SEBI in regards to IPO launching.
Currently, Star health occupies a market share of 15.8% in the private insurance sector.
The company has filed a DRHP with the regulator SEBI to launch an IPO of Rs 3000 Crore.
The public issue comprises a fresh issue equity share of Rs 2000 Crore and an Offer for sale of about Rs 6 Crore equity shares.
The objective of IPO is to maintain solvency level and expand its capital base.
CMS info systems are India’s one of the leading cash management payment collusion companies. It offers its customers a wide range of cash management and managed service solutions, including ATM network management and managed services. This includes ATM network management, retail management and more.
The company is founded by the Blackstone Group, in partnership with Mr Rajiv Kaul - Ex CEO of Microsoft India.
This year, CMS has filed DRHP with SEBI to launch its IPO of Rs 2000 Crore.
Here, the public issue consists of an OFS or offer for sale only.
Mobikwik is an online recharge and bill payment company in India. It is a fintech company that is one of the largest Buy Now Pay Later players in India.
MobiKwik was founded in 2009, by Bipin Preet Singh and Upasana Taku with an initiative of providing mobile wallets to make digital payment convenient for users.
This year, MobiKwik has filed DRHP to go public with an IPO of Rs 1900 Crore.
The public issue comprises a primary share sale of Rs 1500 Crore and the rest will be an OFS.
The company has reserved 4.5 million or 7% of its equity for its employees.
MobiKwik has plans to touch the $1 billion valuations with the IPO
Arohan Financial Service is a leading NBFC that came with an initiative to provide loans for financially penetrated low-income states of India. Arohan provides income-generating loans and other financial services to customers who have limited or no access to financial services.
Arohan Financial Services has recently filed DRHP with SEBI this year. It is planning to go public with an IPO of around Rs 1800 Crore.
The public issue comprises an OFS of 27,055,893 shares and fresh issue equity shares of Rs 850 Crore.
To Apply for IPO visit https://ipo.swastika.co.in/
You often come across the news that the value of the rupee is appreciating or depreciating against the dollar.
The answer is because of the exchange rate. The exchange rate tells us that the worth of one currency in terms of another currency.
For example: if we buy 1$ = 73.81 Indian rupees, means the exchange rate of the two currencies would be $ 1 =73.81 Indian rupees.
The exchange rates are of two types: Fixed Exchange Rate and Floating Exchange Rate.
The fixed exchange rate is the rate that doesn’t fluctuate due to the government’s interference.
In the case of floating exchange rate, it keeps on changing such as stock market. here, the government intervention is almost null.
Here, the question arises: which type of exchange rate does India have?
In India, there is a managed floating rate exchange system where the Indian government interferes only if the exchange rates go beyond the boundaries set by the country.
This can be done by increasing or decreasing the money supply as the situation demands.
Now, let’s discuss the common terminology used: Rupee Appreciation and Rupee Depreciation.
Rupee Appreciation means the currency i.e. Rupee is gaining strength and its value is growing with respect to the dollar.
When the value of the Rupee is depreciating, that means the value of the currency is going down and its value is decreasing with respect to the dollar.
Let’s understand it with an example:
Suppose, the current exchange rate is $1= Rs 73.81. After few weeks, let’s say after 11 months, you will notice the changes happen in the rupee.
The exchange rate is $1= Rs 70. This clearly indicates the value of the Rupee has gotten stronger and you are required to pay less amount for a dollar.
Suppose the exchange rate is $1 = Rs 75. This shows that the value of the Rupee has gone down and you end up paying more amount for a dollar.
The import-export business; pharma and IT sector are susceptible to changes in the forex rate and have an abundance of stake in the Indian stock market.
Appreciation or depreciation of a rupee heavily depends on the change in the demand and supply for both currencies. If the demand for the Rupee grows up, the Rupee appreciates; if the demand for the Rupee goes down; it depreciates.
Now, the question arises: what are factors affects a currency?
A demand for a currency heavily depends on the interest rate differential between the two countries.
A country like India where the interest rate is around 7-8% shows a great capital inflow as investors get much better returns than what they get in the US (as the inflation rate in the US is 2-3% ).
This gives rise to rupee appreciation.
The demand for a country’s goods and services would be more if the inflation rate is lower in that country compared to other countries. Higher demand for goods and services means higher demand for that currency which results in the appreciation of that currency.
If a country exports more than its imports from other countries, that means the demand for that currency is more and hence the currency gains wide appreciation against other currencies.
Rupee’s appreciation or depreciation also depends on the exchange rate fluctuates every minute due to the speculative currency trading in the market.
Needless to say, the appreciation of the Rupee against other currencies will definitely uplift the economy. However, it can put a downturn in the stock market. Let’s understand it with a suitable example:
When the Rupee Appreciates, the markets that mostly get affected by the appreciation are IT and exports. When the value of the Rupee grows higher against the dollar, IT sectors are mostly affected as most of their revenue is generated by exports.
This is because the appreciation of the Rupee makes exports costlier while the domestic exporters face losses as they end up earning less Rupee when exchanging the dollars.
Hence, the companies who are majorly into exports (IT, pharma, petroleum products and jewellery) will get affected more. This may heavily affect their share prices to a greater extent.
When the Rupee depreciates, companies that imports commodities such as oil and gas, food, beverages suffer the most. This can happen only as the value of the Rupee goes down against the US dollars and imports becomes much expensive.
Hence, when the value of the Rupee is depreciating, it mainly affects the company that imports raw materials, foreign borrowings etc.
Besides, the company that majorly relies on exports will benefit the most from Rupee depreciation. Therefore, stocks of IT and pharma will mark a bullish trend.
It is essential to know that the depreciation can affect the market sentients a lot as it causes a decline in foreign investment. When the value of the Rupee starts to decrease, foreign investors pull out their investments, which may put an adverse effect on the stock market.
Indian IT sector heavily depends on foreign clients. Our 70% revenue comes from the IT sector. Thus, when an IT company receives a project from a foreign client, a contract is signed where the cost of the project is pre-decided. The contracts with the US clients are fully quoted in terms of dollars. Hence, the fluctuation in the exchange rates makes a huge difference in the performance of a company.
Nowadays, people are much aware of their future goals, and plans. To accomplish this, they seek the best investment options which can help them to generate outstanding stock trading returns.
While selecting the investment instruments, investors are mostly looking for options that provide them low risk, tax benefits and liquidity.
Many people often start their investments either with SIP or PPF. However, some experienced investors park their money into equity (i.e. stocks).
PPF and Mutual Funds are the two main investment options that suit ordinary people of India. Let’s understand the investment instruments in detail and try to understand which one provides high liquidity and interest rates.
A systematic Investment Plan or SIP is considered one of the best ways of investing in mutual funds. Newbies or students prefer to choose SIP over other investments because it teaches the financial discipline with wealth building for the future.
In SIP, you are allowed to invest a fixed amount for the investment in the market at regular intervals.
SIP needs a regular investment that helps you average out the purchase price and guards you from inadvertently catching a market peak when you invest.
SIP work on the two principles:
As investors, we don't know which is the right time to enter the market? Even top-notch investors often experience the same difficulty in finding the right moment when to enter and exit the market.
This mostly happens, when we start to rely on our emotions, getting sentimental by the market movements and end up buying when the market is going higher and selling when they are lower.
This is what we should not be doing.
Rupee cost averaging helps us to reduce the guesswork. In Rupee Cost Averaging, you need to invest a fixed amount of money no matter, the market goes up or down. This makes you buy more units when the market faces a downward trend and lesser units when it is at the peak.
This approach brings down your average cost per unit in the long run.
The amount you save for the long term may provide an exponential impact on your investment. This all happens because of the effect of the compounding.
Let’s understand it with a suitable example:
Person A starts investing for his retirement at the age of 40. Considering interest rates of 7% with a monthly investment of Rs 1000, his total investment at the end of 20 years will be Rs 5,28,000.
Person B, on the other hand, starts investing for his retirement at the age of 20. Considering interest rates of 7% with a monthly investment of Rs 1000, his total investment at the end of 40 years would be Rs 26,56,436 - almost 5 times higher than person A.
Needless to say, the regular investment amount brings financial discipline to the inventors. In other words, it encourages discipline and helps you earn wealth without disturbing your lifestyle.
Even if mutual funds are subject to market risks, they are still better than equity. This is because SIP diversifies your investment amount thus minimize the risk to capital that will help you achieve volatility.
SIPs give you the flexibility to increase or decrease the amount of investment at any time which in turn makes it the most hassle-free mode of investment.
Public Provident Fund or PPF is a government-backed scheme where you will get fixed returns but set by the government every quarter. Many people consider PPF is a retirement saving scheme offered by GOI with the motive of providing a secure life post-retirement.
In PPF, the minimum deposit one can make is Rs 500 per financial year whereas the maximum deposit amount is Rs 1.5 Lakh.
As said earlier, the PPF interest rate for Q2 (July-September) has been fixed at 7.1%.
ParametersPPFSIPInvestment AmountMin-Rs 500, Maximum Rs 1.5 LakhMinimum Rs 500, No Max. LimitInvestment Tenure15 Years minimum, Extendable in blocks of 5 yearsCan be low as 6 months and high as 20 years.Lock-in-period15 YearsNo-lock-in-periodInvestment RiskSince it’s a govt.backed scheme. Hence totally safeIt is risky as SIP is linked with market-linkedTax-BenefitsEEE (Exempt-Exempt-Exempt) category of taxDepends on the type of mutual fund. For instance, ELSS is eligible for tax deduction under Section 80CLiquidityLowHighReturns7.1% (Q1of FY 2021-22)**Market Linked
PPF is a government-backed saving investment instrument where the money deposited in PPF is utilized by the government. Also, the interest on the same is also paid by the government. Therefore, it is considered the safest instrument to invest in.
On the other hand, money in the mutual fund is subject to market risk. The value of equity funds also fluctuates every day. Debt funds also grow up and down due to changes in the bond prices.
However, a mutual fund offers higher growth in the long run. Also, investment in mutual funds through SIP will minimize the market risk and volatility by diversifying your money into different sections.
The returns of a PPF account are fixed and guaranteed by the government. However, the interest rate is declared by the government every quarter.
Period Interest Rates January to March 20217.1%October to December 20207.1%July to September 20207.1%April to June 20207.1%January to March 20207.90%October to December 20197.90%April to June 20198.0%
Returns of the mutual fund, on the other hand, are market-linked. The returns of mutual funds vary as per the market conditions and the performance of the fund manager. The returns of a few of India’s largest funds are mentioned below:
Fund SIP Return Aditya Birla Sun Life Frontline Equity9.60%Kotak Standard Multicap Fund13.29%ICICI Balanced Advantage Fund10.22%SBI Small Cap Fund15.83%
Mutual funds are much more liquid than PPF. This is because PPFs have a lock-in period of 15 years. In a mutual fund, you can redeem your investments on any business day. This is the reason mutual funds are more liquid than PPF.
Investment in PPF accounts for a tax deduction up to 1.5 Lakh per annum under section 80C of the income tax act, 1961. The interest that arrives on the PPF is exempt from the tax but must be declared in the annual income tax return.
The PPF maturity amount is also exempt from tax. Hence, PPF provides exempt-exempt-exempt-tax treatment.
Mutual fund returns are taxed according to the type of mutual fund scheme and investment time period.
Investment in a specific category of mutual funds is called ELSS funds tax also gives you a tax deduction of up to 1.5 Lakh per annum under section 80C. This exemption does not apply to other mutual fund categories.
It is difficult to compare one investment instrument with the other i.e. market-linked. PPF is apt for those who want zero risks in their investments. While mutual funds are for those investors, who are willing to take the moderate risk so that they can earn higher returns. The risk can further be reduced by investing through a long-term SIP in mutual funds.
SEBI is currently planning to implement its new strategy about allotment of shares which is currently T+2. Now, the time of settlement of shares has changed, the new time of allotment of shares is T+1.
Suppose, if an investor purchases shares in any company be it BSE or NSE, he will receive his shares in his Demat account in T+2 days i.e. trade +2. After receiving shares in a Demat account, he has a right to sell his share or hold it.
On the other hand, if the investor wants to share his shares, he will get funds transferred to his account within T+48 days.
Now, as per the SEBI rule, the settlement is proposed to be T+1 day. Earlier, the settlement cycle was T+3 days.
The settlement cycle refers to the time between the trade date when the order is executed, and the settlement date when the participants exchanged cash for securities; then only trade is considered final.
SEBI proposed the option to adopt T+1 based on readiness starting from 2022. The SEBI circular said that if the stock exchange wants to opt for the T+2 settlement cycle in between, it needs to give notice one month in advance.
SEBI has come up with this proposal only after some of the market participants have requested it. Here the T+1 refers to the shares that will be transferred in T+24 hours.
SEBI did not take this decision overnight, there are certain things involved such as consultation with market infrastructure institutions such as stock exchange, clearing corporations and depositors.
Very few market players have expressed their concerns on the operation problems in this arrangement such as the T+1 settlement cycle.
Minimizing the settlement cycle will directly impact the efficiencies in the stock market which in turn further protects investor’s interest. The new settlement cycle eliminates liquidity requirements, operational risks, counterparty risks that in turn minimize the margin requirement and collateral requirement for broker-dealers.
The decision to change the settlement cycle leaves a great impact on many investors. For instance, high net worth investors such as FIIs, DIIs will extract a huge benefit from it. Earlier settlement i.e. T+1 can provide them more liquidity and minimize margin requirement.
It shall not impact small or retail investors as well.
With the help of the T+1 settlement cycle, investors now receive an earlier receipt of their funds after trade execution and settlement.
T+1 settlement cycle will require significant planning, execution and testing and it would change the market structure for sure.
If the infrastructure is upgraded with robust technology; the settlement process will be seamless and fast which in turn mitigates the probabilities of technical glitches.
The new settlement of the cycle will increase the volatility in the market. Many developed countries such as the USA, UK, and Japan currently follow the T+2 trade cycle.
Needless today, there are some difficulties in the arrangement but minimizing the settlement cycle will generate greater operational efficiencies with low capital requirements.
Hence, we recommend you to do a test for two days and if everything is alright; it can be extended to one week and on successful testing, these things can be implemented permanently.
Media and entertainment giant Zee entertainment Enterprises Ltd said in an interview that it has given official approval for its merger with Sony Pictures Network India. Post this announcement, the stocks of Zee entertainment limited rose nearly 20% on the 24th of September.
It has marked that Zee, has been experiencing constant pressure from the top investors in regards to management shuffle which also include the exit of the chief executive Punit Goenka from the board.
Zee further said that the company and Sony Pictures signed a non-binding term sheet into which they had to work together in multiple streams such as digital assets, production operations, linear networks, program libraries and more.
As part of the proposed deal, Sony Pictures Network India will hold a 52.93% stake in Zee entertainment while Zee shareholders will hold a 47.07% stake.
The total period of a term sheet is of 90 days during which both the companies will conduct mutual diligence and finalize definitive agreements, the filing said.
As a part of the merged entity, Punit Goenka will continue to be the managing director and CEO of the whole deal.
Let’s understand, what’s the merger means to Zee entertainment and its shareholders:
Zee Entertainment is considered as one of the largest entertainment players in the industry with an outstanding market share including a strong pan-India presence. Apart from the Hindi entertainment segment, the company nailed its presence in regional languages as well.
Currently, the company operates 49 channels in 11 different languages which in turn help the company to generate an extra audience base in the country. Also, Zee has its own OTT app called Zee5, which attracts its young audience as well.
However, during the pandemic, many things have been restricted which also hits the company hard in terms of revenue and fresh content availability. However, the company again took a fresh start and now it has started growing again.
The promoter's stake sale has been addressed and the company has some plans to undertake investment in the upcoming years. At this time, Sony’s merger with the company would aid the growth of Zee entertainment in the upcoming year.
Now, the company is planning to increase its content offering on the OTT platform Zee5 app to receive worldwide attention from the audience. The increased consumption of the content on the OTT platforms will surely benefit Zee entertainment in many ways.
As per the sources, the company continues to increase its viewership base and is likely to see a rise in it due to its lowered annual subscription fee which is Rs. 499 per year.
Recently, Zee released 11 shows and movies on the Zee5 platform. With fresh investments, there are more such shows and movies are likely to be released in the upcoming months. This, in turn, improves its overall subscription revenue.
As per the source, the company is all set to release 30 new shows in September month that is going to be featured in Hindi, Marathi and Tamil languages.
Also, it has started thinking to expand its movie production business which has suffered a lot in this pandemic.
Although the company faced a huge loss during the pandemic; it keeps maintaining its audience through the OTT platform Zee5.
As Zee entertainment is one of the oldest and leading companies in the entertainment and media industry, it has a strong audience base. It leaves no stone unturned in retaining and mesmerizing its new audience base through the television channel. In addition to this, Zee also plans to expand the movie production business that assists the company to monetize from different business segments.
If we look at the revenue model of Zee entertainment, then we will get to know that the company gets 40-45% of its revenue from its subscription and the rest is generated from the advertisements.
In the June quarter FY22, the company achieved revenue growth of nearly 30% than the last year. This was only due to the low base effect of the June quarter last year. The main reason behind the 30 per cent recovery growth is the subscription and the advertising revenue which has helped the company a lot.
If you compare the revenue of the company to the previous quarter i.e. March, id had failed by 17% due to the lockdown restrictions due to the second wave of COVID 19.
As everything looks good with the Zee-Sony merger, it takes a while for it to start generating revenue. This is because the pandemic leaves a heavy impact on all of us. In such cases, going to a theatre would be a huge risk.
However, the company can achieve revenue growth with the help of advertisements and the OTT platform Zee5.
The company’s advertisement revenue will heavily depend on the corporates’ performance also. Hence, in the long run, the Zee-Sony merger will bring something positive for the company and the investors.
Let’s quickly review the highlights of the Zee-Sony Pictures Limited Deal
Sony Pictures will hold a majority stake in the Zee-Sony merger, where Zee holds 47.07% and the remaining stakes 52.93% to be held by Sony Pictures shareholders.
The board of directors will be nominated by Sony Pictures.
This merger is going to be a publicly listed company in India.
As per the non-binding term sheet, the promoters of the Zee-Sony group are free to raise their shareholders from 4% to 20%.
The final transaction would be subject to completion of customary due diligence and execution of definitive agreements and required third party approval, regulatory and corporates, including the votes of Zee’s shareholders.
Zee-Sony merger would take a drastic turn in investors lives. As the deal is closed, the shares of Zee entertainment ltd have increased to a greater extent. This will improve investors’ portfolios. The merger also leaves a heavy impact on retail investors as they can benefit a lot from Zee entertainment shares.
Traders invest most of their time in planning entry strategies but ending up taking bad exits. Do remember, just like entry trading, exit also matters in stock trading.
Many of us lack in planning effective share trading exit strategies which in turn force us to leave the stock market at the worst possible price.
There are bundles of questions that revolve in our minds while online trading. For instance, people don’t know how to deal with the fear of missing out. Do they think what happens if the scrip goes up after I sell?
The question often circulates in the mind of retail investors. If you are the one who has many doubts about exit trading, we have got you covered.
Before getting started, let’s take a quick tour of the holding period i.e. why the holding period is so important and how it plays an important role in the successful exit strategies.
It’s impossible to discuss exit strategies without explaining holding periods. The holding period is the duration at which you can hold the stock and sell it after the relevant time. The time frame in the holding period helps you to identify the time you need to extract money from the stock market.
Here, you need to select the category that aligns most closely with your market because it shows how long you have to book profit or loss. This approach requires strict discipline as some positions perform exceptionally well so that you want to hold them beyond time constraints.
While you can stretch the holding period according to market conditions, don’t forget to take an exit within the time limits. Because such things increase your profitability and stock market trading skills.
Before entering the stock market, it would be ideal to get into the habit of profit and loss and risks associated with it. Try to figure out the next resistance level within the time constraints of your holding period.
Now, try to analyze the point at which you will be proven wrong if the stock prices go against your prediction and hit it. That’s your risk. Now calculate the risk-reward ratio which should be 2:1. If anything less and you should skip the trade, move for a better opportunity.
Let’s understand it with an example:
Imagine a situation where you invested in a company called ABC Limited. The price of the stock went high within a few years to touch a level of Rs 700 but started to make a fall and now it is trading at Rs 27 today.
Now, let’s think you did full stock market research in the company ABC limited and you believe the company may show a heavy growth and hence you have decided to stick with the stock even if the prices drop.
So, where did you go wrong? Aren't, you supposed to buy right, sit tight? The answer is Yes. Yes should do so but this is not the case sometimes.
There are few things you need to ponder that give you an idea: what is the best time to exit from a stock?
Is there any change in the fundamentals of a company that affects a stock’s price?
Check out the quarter performance of the company. If you see any sort of delays in the company’s growth report and the company consistently underperforms, then it’s high time to deeply monitor the company’s fundamentals.
Check the company’s fundamentals for at least 3-4 quarters. Also, check the other parts such as the utilization of a company (if there is any decline) or if the NPA is growing up.
Another important factor to check the company’s performance is Debt. Many stocks now have become multi-baggers only because they have zero or negligible debt. Take a quick tour of the debt to market cap ratio.
The debt to market ratio is a way to measure the debt against the company’s ability to raise capital. If the debt percentage is less, the company’s performance is more stable. If you see the number has increased, it’s high time to exit from the stock.
Corporate governance issues tell you many things such as how well a company manages its stakeholder relations. Here, as an investor checkout for their disclosure policy, dividend policy, conflict resolution between internal and external shareholders. It’s also important how well the upper management handles these setbacks.
Another important thing to note is: if there has been any legal dispute between the senior authorities that haven't been resolved yet or if the company suffers a lot where you can see the exit of the senior business leader. These heavily impact the price of scrip and you see it gets down to a greater extent.
Normally, the share price of a fundamentally strong company goes high with time. There are certain cases, where the price of a stock goes too high compared to a very short period. In such circumstances, it would be ideal if you immediately sell the stock and book profit.
Many times it happens that after selling a stock, you keep questioning your decisions. This is apt for the investors who have worked with the company for years and get emotionally attached to the company.
The bottom line here is that you are in the stock market only to create wealth and hence you should not have stuck with the emotions. Don’t let your emotions overpower your mind.
Planning an exit strategy is effectively important as an entry into the stock market. Proper exit from stock not only prevents you from huge losses but also helps you to take certain actions on time which will help you in the near future. See, the stock market always depends on the strategies and therefore a meaningful strategy will lead you to achieve more returns from the stock market.
पिछले सप्ताह की शुरुवात में सोने के कीमतों में अच्छी बढ़त देखि गई लेकिन अमेरिकी फ़ेडरल रिज़र्व की बैठक में मौद्रिक नीति को नियंत्रित करने के निर्णय पर सोने और चांदी के भाव ऊपरी स्तरों से टूटे गए। 10 वर्ष अमेरिकी बांड उपज में भी लगातार बढ़त दर्ज की गई है। फेड के अतिरिक्त कुछ देशो की अर्थव्यवस्थाओं में मौद्रिक नीति को नियंत्रित करने की बात से कीमती धातुओं में दबाव रहा है।
घरेलु बाज़ारो में श्राध्द के चलते सोने और चांदी की खुदरा मांग में कमी रहने के आसार है जिससे कीमती धातुओं में दबाव बना हुआ है। लेकिन, फेस्टिवल सीजन करीब होने के कारण निचले स्तरों पर सपोर्ट रहने की सम्भावना है। चीन मे चल रहे रियल स्टेट संकट के कारण कीमती धातुओं में निवेश की मांग बढ़ सकती है।
एमसीएक्स वायदा सोने के भाव में 300 रुपये प्रति दस ग्राम की साप्ताहिक बढ़त रही और पिछले सप्ताह के अंत तक कीमते 46100 प्रति दस ग्राम के करीब रही है। अमेरिकी फ़ेडरल रिज़र्व के निर्णय का असर चांदी के भाव में कम रहा और घरेलु वायदा चांदी के भाव में भी 700 रुपये प्रति किलो का साप्ताहिक सुधार देखा गया है। अमेरिकी बेरोज़गारी और सर्विस पीएमआई के कमजोर आकड़ो से भी चांदी के भाव को सपोर्ट रहा है। डॉलर जो सोने की विपरीत दिशा में चलता है, सप्ताह के निचले स्तरों पर है।
इस सप्ताह प्रमुख अर्थव्यवस्थाओं के केंद्रीय बैंक सदस्यों के बयान होने के कारण कीमती धातुओं में उठा पटक रहने के आसार है लेकिन कीमतों में निचले स्तरों से सुधार होने की संभावना तकनीकी चार्ट पर नज़र आ रही है। सोने में 45600 रुपये पर सपोर्ट है और 46500 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 58000 रुपये पर सपोर्ट और 61800 रुपये पर प्रतिरोध है।
Like other months, this week will be a busy one on the IPO front. Here, we will discuss some of the companies that are likely to file or have drafted DRHP with SEBI for the initial public offering to make their company public limited from private limited.
In the IPO process, the company is required to file DRHP (draft red herring prospectus) and then final RHP (red herring prospectus). After the completion of these processes, SEBI approves the initial public offer for the companies and they are ready to get launched in the primary market.
Here is a complete list of IPOs in September 2021:
Now, let’s discuss the IPOs that may hit the primary market in 2021
Sansera Engineering Limited is an engineering-led integrated manufacturing company that develops complex and critical engineered products in various sectors mainly automotive and non-automotive sectors.
If we talk about the automotive sector, the company primarily manufacturers and supply a wide range of machined components and assemblies such as rocker arm, gear shifter fork, crankshaft, stem comp, aluminum forged parts that are essential for engine, transmission, suspension, braking and other systems that are used for a two-wheeler, passenger vehicle and commercial vehicle verticals.
In the non-automotive sector, the company manufactures and supplies critical yet precision components for aerospace, agriculture, off-road and other things including capital goods.
As of December 2020, the company is known as the third largest seaborne logistics company in India by deadweight tonnage. As per the CRISIL Report, In 2020, the company held a significant market share in crude oil imports.
The company is involved in liquid products such as white oil, black oil, lube oils etc. Furthermore, the company is also engaged in crude oil logistics where it transports the crude oil in vessels classified as Suezmax and Very Large Crude Carriers.
Arohan Financial Services Limited is a leading NBFC-MFI mainly operated under low-income states in India. Arohan’s main objective is to provide income-generating loans and financial inclusion related products to the people who are not capable of accessing financial services or who have limited access.
Arohan offers a broad range of financial products to under served customers. The financial products are classified into credit and insurance products that include income-generating loans for numerous household purposes.
Also, the company generates several insurance products that include life cover and health insurance covers that are underwritten by certain insurance companies with whom the company has done tie-ups.
MobiKwik is a fintech company that is one of the largest mobile wallets yet largest buy now pay later players in India.
As we have seen digital payment has been rapidly growing in India but the credit card penetration is still only 3.5%. Keeping in mind, MobiKwik comes with an idea to promote digital payment with a unique concept of buy now pay later.
The company was founded in 2009 by Bipin Preet Singh and Upasana Taku, who came up with an idea to start a mobile wallet to make digital payments convenient for users.
Here, the services provided by MobiKwik includes digital bill payment, food delivery, petrol pump, eCommerce shopping, large retailer chain, grocery shops and more. The platform also enables peer to peer payments through Unified payment interface or UPI or MobiKwik Wallet to bank payments.
Seven Islands Shipping Limited is a Mumbai based liquid seaborne liquid logistics company that has been operating ocean-going for the past 19 years after coming under the Companies Act 1956.
Also, the company is committed to safe transportation with efficient services and cleaner seas. They do all the transportation with a huge responsibility such as safety of life at sea and thus ensuring a cleaner environment which in turn maintains high standards of their fleet.
Seven Island Shipping Limited currently owns a fleet of 21 vessels - 2 crude oil tankers and 18 product carriers.
Aadhar Housing Finance Limited is one of the leading affordable housing finance companies that is known for fulfilling the home financing needs of the low-income sections of society.
With a motive to provide a home to underserved millions, Aadhar offers a wide range of mortgage-related loan products including loans for residential property purchase and construction, home improvement and extension loans, loans for commercial properties and construction and acquisition.
Ruchi Soya Industries is one of the leading FMCG brands in the Indian edible oil sector. If we talk about the soya foods, Ruchi soya comes as the largest manufacturer of soya foods with a presence in almost the entire value chain in upstream and downstream business with secured palm plantation.
ESAF Small Finance Bank is one of the leading small finance banks in India in terms of CAGR, AUM, client base size, the yield on advances, net interest margin in rural and semi-urban areas and the ratio of microloan advances to growth advances.
Paytm covers payments (wallet/UPI), merchant acquiring, credit saving, insurance and broking services to upgrade its e-commerce/e-ticketing platform. As of now, Paytm covers over 350 million installed base, 50 million active user base, and over 20 million merchant base. Paytm has around 100 million users which are KYC compliant.
In India, there are nearly 24 life insurance companies currently in operation. Out of which LIC comes at the top place with a market share of 69% in FY20. LIC comes under the government segment that holds a 95% stake in the overall company.
The IPOs that are stated above are not the only ones for this month. Many of the IPOs are still in the pipeline and may expect to get launched in the primary market by 2021 i.e. may be in the month of November and December.
We have seen a major decline in startup funding in the past few weeks. However, this week saw a significant rise in the total funding and startup raised.
The current week comes with many unexpected things such as Indian Startups that have raised over $130 Mn this week compared to $ 228 Mn in the last week i.e (Before 16 August - 21 August).
With over 27 funding rounds, the biggest round raised was by Skit, earlier known as Vernacular.ai which secured $23 Mn in series B round.
D2C health brand Soothe Healthcare just finished its Series C round and raised $ 13.6 Million to improve its growth plans and domestic manufacturing.
Also, Mumbai based fraud detection startup company IDfy has managed to raise a capital of $ 12 Mn through TransUnion International and Blume Ventures.
Mobile e-commerce company Bikayi raised $ 10.8 Million in series A funding by Sequoia capital India in order to increase product development, talent hiring and acquisition.
Out of all the 27 IPO deals, most investments have come into the following categories: enterprise tech, fintech and eCommerce sectors.
Here, we have mentioned all the funding rounds disclosed this week:
Startup Sector Sub sector Funding InvestorsSkit (Vernacular.ai)Enterprise TechSaaS$ 23 MnWestBridge Capital, Kalakari Capital & moreSoothe HealthcareHealth TechPersonal Hygiene$ 13.6 MnGulf islamic investment, Northern Arc, IncredIDfyEnterprise TechHR Tech$ 12 MnTransunion international, Blume VenturesBikayiEcommerceEcommerce Enablers$ 10.8 MnSequoiaSugar.fitHealth TechFitness & Wellness$ 10 MnCult.fit, Endiya Partners, Tangline Venture PartnersApps For BharatMedia & EntertainmentSpiritual$ 10 MnElevation capital, Saurabh Gupta, Ankur Sachdeva, Farid Ahsan, Kunal Shah and more.SkepsFintechEnterprise Tech$ 9.5 MillionBertelsmann India Investments, AccelDezervFintechInvestment Tech$ 7 MillionElevation Capital, Matrix Partners India, Kunal Shah, Ramakant Sharma, Ashish Mohapatra, Vidit Atreya, Anurag Sinha and more.OTOFintechLeading Tech$ 6 MnMatrix Partners India, Prime Venture Partners, Better Capital, Ramakant Sharma and moreApp JarFintechInvestment Tech$ 4.5 MnTribe Capital, Akram ventures, WEH Ventures and moreREVOSTransport techEV Charging$ 4 MillionUnion Square Ventures, Prime Venture PartnersBumberryE-commerceD2C$ 3.04 MnThe Chennai Angels, Konglo, Kerala AngelsMagicpinEnterprise TechSaaS$ 3 MillionRitesh Agarwal, Lightspeed, The Bunting FamilyRattleEnterprise TechSaas$ 2.8 MillionLightspeed, Sequoia Capital India, Ellen Lavy, Krish and RamanElevarEcommerceD2C$ 2.6 MillionKalaari Capital, Dream Capital1BridgeEcommerceRural Ecommerce$ 2.5 MillionC4D Partners, KAAJ Ventures and moreMy Classroom FoundationEdtechFoundation Courses$ 1.5 MillionPrem PrakashmoneyHOPFintechNeobank$ 1.25 MillionUndisclosedCondigalEdtechSkill Development$ 1.2 MillionY Combinator, Summer Capital, Nate Lipscomb, Peter Weck and moreAltiusFintechInvestment Tech$ 821 KUndisclosedPeppermintEnterprise TechSaaS$ 684 KVenture Catalysts, Indian Angel Network, Vinners Group and moreHabbitEdtechSkill Development$ 320 KAshok Goyal, Sanjeev Goenka, Kunal Ojha and more.Powerhouse 91EcommerceEcommerce EnablersUndisclosedFJ Labs, Ryan Gnesin, Sujay Tyle, Haresh Chawla and more.KraftInnEcommerceD2CUndisclosedNEDFi Venture CapitalSecLogicEnterprise techCyber SecurityUndisclosedIndia AcceleratorSynergyXHealth TechEnterprise ServicesUndisclosedAsha TripathiTealfeedMedia & EntertainmentKnowledge SharingUndisclosedAh! Ventures
Startup Files for DRHP Startups Going for IPO Startups M&A this Week MapmyIndiaSnapdealBillDeskNykaaOlaJustdial – Acquired by RelianceMobiwikOYO RoomsThe Better Home – Acquired by GLobal BeesPaytmFlipkartCoding Elements- Acquired by Scalar Academy-Nykaa
MapmyIndia has recently filed its DRHP i.e. draft red herring prospectus with SEBI. As per news sources, the startup wants to go public by selling 7,547,959 equity shares to raise funds.
In the IPO, MapmyIndia’s executive director Rashmi Verma will be uploading (approve) 3,070,033 shares. MapmyIndia’s early backer Qualcomm is seeking to sell 2,026,055 equity shares.
Soon, Snapdeal files for an SME-IPO which could raise a capital of $ 400 Mn. The Softbank backed eCommerce site is seeking its first listing on the Bombay Stock Exchange with a valuation of $ 2.5 Billion.
Apart from Snapdeal, there are other startups too who are planning to go public next year.
These startups are: Olacabs, OYO rooms, and Walmart owned company Flipkart.
Ridesharing company Ola has selected Citigroup and Kotak Mahindra to manage its IPO, which is going to happen next year. Also, Ola has hired an investment bank, Morgan Stanley, for its speculated $1 Billion IPO.
Soon Ola will file DRHP with SEBI before the end of the year. In August, Ola’s founder Bhavish Agarwal had mentioned ola’s plan to go public for the next year, followed by a public listing.
T Rowe; an investment giant which invested in Paytm in 2019, has decided to raise the share price of the company by 16% or more from the original price it paid during its investment.
In June 2021, at least two mutual funds priced at $ 295 compared to the original $ 254 (complete the sentence) This is an increase of approximately 57% in the company valuation services as compared to the previous year where the shares were marked to $ 188.
This is going to be the biggest fintech deal where Prosus, the parent company of Fintech startup PayU has acquired Indian payment gateway company BillDesk for $4.7 Billion.
This deal allows both payU and Billdesk to own a wide market share in the online payments and billing providers and become one of the biggest online payment industries.
It may be noted that Billdesk will be the fourth major acquisition by PayU post-Wimbay, Paysense and CitrusPay.
Firstcry’s Global Bees has acquired sustainable home care product company The Better Home, which began as a content platform The Better India. Soon, the core team of Better India will join Globalbees and start working as per the prevailing product roadmap.
Reliance Retail has now become the largest shareholder and takes sole control of Just Dial by purchasing a 40.98% stake in the company.
Justdial allotted 2.12 Crore equity shares of INR 10 each at INR 1022.25 per share on September 1.
This represents 25.35% of the post preferential issue paid-up share capital of Justdial to Reliance Retail.
Interviewbit, now known as Scaler academy is an upskilling platform that has acquired edtech platform coding elements in a full cash deal which is worth $1Mn. Both the companies have been in talk post Scaler ventured into data science and machine learning process.
Startups play an important role in making the country self-dependent. They are the primary element of a country’s growth story. Startups not only upgrade a country’s economy but also uplift and benefit society at large.
As the economy, India now becomes the most favorite investment destination for FIIs. The primary thing that has initiated India’s growth in terms of a startup is its digital adoption, improved stock market listings and growing infrastructure. In this blog, we have mentioned all the major startups that have raised over $ 130 Million this week.
Paras Defence is India's sole Infrared Optics producer. It is a leading private sector company in India engaged in designing, manufacturing, developing, and testing defence and space engineering products and solutions.
The company has five major product category offerings - Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies.
The Tier 2 defence engineering firm is one of the most advanced and offers a large number of defence goods and solutions. They have an excellent client base with names such as ISRO, Bharat Dynamics, HAL, TCS, Tata Power and others.
The first public offering (SME IPO) for Paras Defense and Space Technologies will all begin next week from 21 September to 23 September. The IPO's size concerns Rs.170 crore including Rs.140 crore fresh and Offering for Sale (OFS) of Rs.30 crore.
Subscription Dates21 – 23 September 2021Price BandINR165 – 175 per shareFresh issueINR140.6 croreOffer For Sale1,724,490 shares (INR28.45 – INR30.18 crore)Total IPO sizeINR169.05 – 170.78 croreMinimum bid (lot size)85 sharesFace Value INR10 per shareRetail Allocation35%Listing OnNSE, BSE
This SME IPO shows that the QIB part is 50 per cent reserved, while the Retail portion is reserved at 35 per cent. on the other hand, 15% of the NII component is retained.
For the six months ending on 30 September 2020, the firm has recorded overall revenues of Rs. 149.05 crore and Rs.37.94 crore. Consolidated PAT (profit after tax) in FY 2020 was Rs. 19.65 and for the six-month period ending 30 September 2020, it caused a loss in the amount of Rs. 14 lakh.
In 2021 the profit was Rs.15.79 crore compared with Rs.19.66 crore in 2020. In recent years the company has performed stably and will continue to do the same thing that will result in consistent business growth.
According to Swastika Investmart Analyst, eyeing the government's focus on the Space and Defense sector, it is expected that both the segments of the company are likely to be benefited. The "Make in India" campaign by the government to be self-reliant by 2027 will give a boost to the industry.
Since there are no listed players in the industry it is difficult to make an apple to apple comparison. The company is going to be listed in T2T-Segment.
The financials of the company has been mixed. However, in the long company may benefit from the initiatives by the government and is expected to perform well. The company has a strong order book and the IPO is priced at PE of 31x. Thus, we recommend a "Subscribe" rating to the IPO.
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