The domestic equity market tumbled on Friday, October 29, 2021, extending losses for the third trading session.
The domestic equity market tumbled on Friday, October 29, 2021, extending losses for the third trading session. The S&P BSE Sensex slumped 677.77 points or 1.13% to 59,306.93. The Nifty 50 index fell 185.60 points or 1.04% to 17,671.65. Both the indices have corrected about 3.3% in three sessions. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, November 1, 2021. List of such five stocks:
IPO Update: Fino Payments Bank IPO + Nykaa IPO + Policy Bazaar IPO + SJS Enterprises IPO + SJS Enterprises IPO
Fino Payments Bank IPO: Fino Payments Bank Limited’s initial public offering (IPO) that opened on Friday, October 29, 2021, was subscribed 51% on the first day of the issue. The public issue will close on Tuesday, November 2, 2021. The Non-Institutional Investors (NIIs) portion was subscribed 5% while the and Retail Individual Investors (RIIs) and employee portions were subscribed 2.73 times and 25%, respectively. The fintech company has fixed a price band of Rs 560-577 per share as the company seeks to raise up to Rs 1,200 crore from the public offering. The public issue will include a fresh issue of Rs 300 crore and an offer for sale of up to 1,56,02,999 shares (worth Rs 900 crore at the upper band) by the promoter Fino Paytech. Bids can be made for a minimum of 25 Equity Shares and in multiples of 25 shares thereafter.
Nykaa IPO: The Initial Public Offering (IPO) of FSN E-Commerce Ventures Ltd, the parent company of the online beauty e-commerce platform Nykaa, was subscribed 4.82 times on Friday, the second day of bidding. The Qualified Institutional Buyers(QIBs) portion was subscribed 4.72 times, while the Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 4.17 times and 6.32 times. Today is the last day for a subscription. The company has fixed a price band of Rs 1,085-1,125 per share as the company seeks to raise more than Rs 5,352 crore through the public offering. The IPO comprises a fresh issue of equity shares aggregating up to Rs 630 crore and an offer for sale (OFS) of up to 41,972,660 equity shares being offered by the selling shareholders. Bids can be made for a minimum of 12 equity shares and in multiples of 12 equity shares thereafter, a maximum of up to Rs 2 lakhs. The company is offering a discount of Rs 100 per Equity Share to Eligible Employee Category.
PB Fintech Limited (Policy Bazaar) IPO: Initial Public Offering (IPO) of PB Fintech Limited, the owner of the online insurance aggregator and fintech Policy Bazaar and Paisa Bazaar, will open for subscription today, i.e. Monday, November 1, 2021. The issue will close on Wednesday, November 3, 2021. The company has fixed the price band for the offer at Rs 940-980 per share as it seeks to raise around Rs 5,652 crore from the issue. The issue comprises a fresh issue of equity forth Rs 3,750 crore and an offer for sale of Rs 1,875 crore by the existing promoter and shareholders of the company. The retail investors can buy a minimum of one lot of 15 shares for an amount of Rs 14,700, at the upper price band. Besides, the company has raised around Rs 2,569 crore from 155 anchor investors on October 29, a day ahead of IPO opening. The company finalised allocation of 2,62,18,079 equity shares to anchor investors at a price of Rs 980 per share, PB Fintech said in its BSE filing. The marquee investors who participated in the anchor book were New World Fund (5.7%), HDFC Fund (2.9%), Fidelity Fund (6.1%), ICICI Pru (2.9%), SBI Fund, Axis Fund, Canada Pension Plan, Government Pension plan among others.
SJS Enterprises Limited IPO: Initial Public Offering (IPO) of the decorative aesthetics product company, SJS Enterprises, will open for subscription today, i.e. Monday, November 1, 2021. The issue will close on Wednesday, November 3, 2021. The company has fixed the price band for the offer at Rs 531-542 per share as it seeks to raise around Rs 800 crore from the issue. The retail investors can buy a minimum of one lot of 27 equity shares for an amount of Rs 14,634, at an upper price band. The IPO is entirely an offer for the sale of shares worth Rs 710 crore by Evergraph Holdings Pte Ltd and shares to the tune of Rs 90 crore by KA Joseph. At present, Evergraph Holdings and KA Joseph owns 77.86 per cent and 20.74 per cent stake in the company, respectively. Besides, the company has raised Rs 240 crore from anchor investors ahead of its initial share sale. The company has decided to allocate a total of 44,28,043 equity shares to 18 anchor investors at Rs 542 apiece, aggregating the transaction size to Rs 240 crore, according to a circular uploaded on the BSE website. The marquee investors who participated in the anchor book were Axis Fund (18.8%), Franklin Fund (18.8%), Goldman (18.8%), Aditya Birla (20.8%), Macquarie(4.2%) and Societe General among others.
Sigachi Industries Limited IPO: Initial Public Offering (IPO) of the Hyderabad-based manufacturer of cellulose-based excipients, Sigachi Industries, will open for subscription today, i.e. Monday, November 1, 2021. The issue will close on Wednesday, November 3, 2021. The company has fixed the price band for the offer at Rs 161-163 per share as it seeks to raise around Rs 125 crore from the issue. The IPO of Sigachi Industries IPO consists of a fresh issue of 76,95,000 shares of the face value of Rs 10. The retail investors can buy a minimum of one lot of 90 equity shares for an amount of Rs 14,670, at an upper price band. Besides, Microcrystalline cellulose manufacturer Sigachi Industries has garnered Rs 37.62 crore from 2 anchor investors on October 29, 2021, ahead of its initial share sale. The company has decided to allocate a total of 23,08,500 equity shares to anchor investors, at a price of Rs 163 per equity share. Two anchor investors that invested in the company are the 3 Sigma Global Fund and Nexus Global Opportunities Fund.
IOC + BPCL
IOC: Indian Oil Corporation (IOC), the nation’s largest oil firm, has reported 7% QoQ rise in the standalone profits at Rs 6,360 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 5,941.4 crore in the previous quarter ended June 30, 2021. Its revenues from operations grew 14.1% QoQ to Rs 1,35,417.8 crore in the reported quarter against Rs 1,18,670 crore posted in the previous quarter. EBITDA grew by 1% to Rs 11,096.1 crore as against Rs 10,986.1 crore posted in June 2021 quarter. Margins contracted to 8.2% in Q2FY22 as against 9.26% posted in Q1FY22. The gross refining margin (GRM) for the quarter stood at $3.11 per barrel. IOC further said its board approved an interim dividend of Rs 5 per equity share and fixed November 12, 2021, as the record date.
BPCL: The state-run oil refiner reported a 79% QoQ rise in the standalone profits at Rs 2,694 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 1,501.65 crore in the previous quarter ended June 30, 2021. Its revenues from operations grew 15% QoQ to Rs 81,536.7 crore as against Rs 70,921.3 crore posted in the previous quarter. EBITDA grew by 37.7% to Rs 4,477.7 crore against Rs 3,252.7 crore posted in June 2021 quarter. Margins corrected to 5.5% in Q2FY22 as against 4.6% posted in Q1FY22. The board of the company has declared an interim dividend of Rs 5 per share.
VEDL + SAIL + Shree Cement + UPL + Apollo Tyres + Exide Industries
VEDL: The mining company Vedanta has reported a 451% YoY rise in the consolidated profit at Rs 4,615 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 838 crore in the year-ago quarter. Its revenue grew 44% YoY to Rs 30,401 crore as against Rs 21,107 crore posted last year. Its EBITDA grew 59% YoY to Rs 10,363 crore as against Rs 6,531 crore posted last year. Margin improved to 34% in Q2FY22 as against 31% posted in Q2FY21, while margins have been stable YoY. The company has not reported a significant change in borrowings.
SEGMENT REVENUE GROWTH YoY
– ZINC INTL +45%
– OIL & GAS +74%
– ALUMINIUM +90%
– COPPER +23%
– IRON ORE +70%
– POWER -30%
Besides, SEBI has given a stern warning to Vedanta over the related party transactions worth Rs 1,407 crore that was done without prior approval of the audit committee. SEBI in its letter to the company has said the aforesaid non-compliances are viewed seriously and you are hereby warned and advised to ensure compliance with all applicable provisions of SEBI Regulations. Any such aberration in future would be viewed seriously and appropriate action would be initiated. Besides, the board has advised the Company to ensure adherence to all applicable provisions. For Hindustan Zinc, the issue of not disclosing the reason for the deferment of the board meetings was also highlighted.
SAIL: The steel production company SAIL has reported a 995% YoY rise in the consolidated profit at Rs 4,304 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 393 crore in the year-ago quarter. Its revenue grew 59% YoY to Rs 26,827 crore as against Rs 16,924 crore posted last year. Its EBITDA grew 269% YoY to Rs 7,017 crore as against Rs 1,901 crore posted last year. Margin improved to 26% in Q2FY22 as against 11% posted in Q2FY21. The company has reported a massive debt reduction of Rs 8,952 crore YoY. It is the cheapest steel stock in terms of valuation.
Shree Cement: The cement manufacturer has reported a 5.6% YoY rise in the standalone profit at Rs 578 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 547 crore in the year-ago quarter. Standalone sales grew by 5% to Rs 3,206 crore in the reported quarter against Rs 3,053 crore posted last year. EBITDA dropped 10.8% YoY to Rs 899 crore as against Rs 1,008 crore posted last year. The Margin contracted to 28% in Q2FY22 as against 33% posted in Q2FY21. Volumes down 7.5% to 6.3 million tonnes, against the estimated 6.6 MT. Realisation remained unchanged at Rs 5,015, against the Rs 4,912 forecast. Power and fuel expenses as a percentage of net sales rose to 19.6% from 18.9% in the previous three months. Shares of other expenses increased to 17.5% from 15.9%. These, however, were partly offset by a decline in the share of freight costs from 24% to 22% of net sales.
UPL: The chemical company has reported a 37% YoY rise in the consolidated profit at Rs 634 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 463 crore in the year-ago quarter. Its revenue grew 18% YoY to Rs 10,567 crore as against Rs 8,939 crore posted last year. Its adjusted EBITDA grew 13% YoY to Rs 1,045 crore as against Rs 1,808 crore. Margin declined marginally to 19.35% in Q2FY22 as against 20% posted in Q2FY21, while margins have been stable YoY. The company has not reported a significant change in borrowings.
Apollo Tyres: The tyre company has reported a consolidated profit at Rs 174 crore for the quarter ended September 30, 2021. It had posted a net loss of Rs 266 crore in the year-ago quarter. Its revenue from operations in the second quarter grew 18.2% YoY to Rs 5,077 crore as against Rs 4,295crore posted last year. Its EBITDA dropped 9.8% YoY to Rs 638 crore as against Rs 707 crore posted last year. Margin contracted to 12.6% in Q2FY22 as against 16.5% posted in Q2FY21. The tyre manufacturer had reported an exceptional loss of Rs 600 crore last year.
Exide Industries: Storage battery manufacturer has reported a 2.2% YoY rise in the standalone profit at Rs 234 crore for the quarter ended September 30, 2021. It had posted a net loss of Rs 229 crore in the year-ago quarter. Its revenue from operations in the second quarter grew 19.5% YoY to Rs 3,290 crore as against Rs 2,753 crore posted last year. Its EBITDA grew 5.6% YoY to Rs 414 crore as against Rs 392 crore posted last year. Margin contracted to 12.6% in Q2FY22 as against 14.2% posted in Q2FY21.
Equitas Small Finance Bank: The small finance bank has reported a 60% decline in its profits at Rs 41 crore for the quarter ended September 30, 2021. It had posted a net loss of Rs 103 crore in the year-ago quarter. Net Interest Income for Q2FY22 grew 5% YoY at Rs. 484 crore as against Rs 461 crore in Q2FY21. NIM at 8.14%. It made provisions of Rs 138 crore, against Rs 75 crore of the last year. GNPA was at 4.64% in Q2FY22 as compared to 4.58% in Q1FY22 and 2.39% in Q2FY21. NNPA at 2.37% in Q2FY22 as compared to 2.29% in Q1FY22 and 1.09% in Q2FY21. Loan growth stood at 13% and disbursement stands at 565%. Collection Efficiency for September 2021 stands at 99.71% and restructuring at 7%.
Ujjivan Financial Services/ Ujjivan Small Finance Bank + Maruti Suzuki
Ujjivan Financial Services/Ujjivan Small Finance Bank: Ujjivan Financial Services Ltd (Ujjivan) has said that its board has approved the amalgamation of the company with its subsidiary Ujjivan Small Finance Bank in order to comply with SEBI’s minimum public shareholding norms. Once the scheme comes to effect, Ujjivan SFB would issue and allot to the shareholders of Ujjivan Financial Services 115 equity shares of the bank for every 10 equity shares of Ujjivan. The amalgamation is subject to approval from the Reserve Bank of India (RBI), capital markets regulator Sebi, public shareholders of the companies involved, as well as the NCLT.
Maruti Suzuki: Maruti Suzuki India (MSI) on Saturday said it expects an adverse impact on production at its two plants in Haryana and parent Suzuki’s Gujarat plant in November on account of supply constraint of electronic components due to semiconductor shortage. Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 85% of normal production.
Fund Action
NCL Industries: Ved Prakash Agarwal bought 2.35 lakh equity shares in the company at Rs 246.41/share.
