RailTel IPO grey market premium plunges
RailTel Corporation of India’s Rs 820 crore initial public offer (IPO), which has been seeing strong retail participation at bids totaling 11 times the issue size so far, closes for subscription on Thursday. Till the end of Day 2 of the IPO, the issue was subscribed 6.55 times with the retail quota getting bids for 10.55 times the limit. The qualified institutional buyers’ quota was subscribed 2.97 times and the non-institutional investor category 2.63 times the limit. The portion reserved for employees was subscribed 1.85 times. The grey market premium still suggests a 13-15 percent upside over the upper limit of the IPO price band.
SIPs back in limelight even as MF outflow continues
With the equity market scaling record highs, new SIP account registration has risen to a record of 16.4 lakh in January 2021, the data from the Association of the mutual fund of India (AMFI) show. This is the second month in a row when SIP registrations hit a record level. The previous peak was in January 2018 at 12.9 lakh accounts. The two-month rolling average of new SIP registration reached 30.7 lakh accounts compared with an average of 18 lakh in the past four and half years.
What’s in Joe Biden’s sweeping immigration bill being rolled out in Congress?
An eight-year path to citizenship would be provided for millions of people who were living in the United States unlawfully on Jan 1, 2021. They would receive a permanent residency card, commonly referred to as a “green card,” after five years if they pass certain requirements including background checks and could then apply for citizenship after three years. President Joe Biden’s proposed legislative overhaul of the U.S. immigration system, due to be formally introduced in Congress on Thursday, would be the largest in decades, but it faces steep odds.
Vodafone Idea lost 2.7 million users in October
Vodafone Idea Ltd slipped further behind its main rivals in terms of subscriber base as it net lost 2.7 million mobile subscribers in October. Data from the Telecom Regulatory Authority of India showed. In contrast, its rivals Reliance Jio Infocomm Ltd and Bharti Airtel Ltd saw an increase in their subscriber base by 2.2 million and 3.7 million respectively, which helped them further consolidate their position as the largest and second-largest operators in the country. Reliance Jio had 406 million subscribers as of October end, while Bharti Airtel had 330 million. Vodafone Idea, which was once the largest operator in India, slipped further behind its rivals at 293 million.
Should depositors worry about co-operative banks?
It is a financial entity engaged in the business of collecting deposits and lending – like any other commercial bank. But they function on the principle of cooperation and sharing profits with members. They offer services essentially to members who are shareholders of the bank. A co-operative bank also offers many high-tech products and services like any commercial bank. But their business jurisdiction in most cases is localized.
Petrol prices all time high
Petrol and Diesel prices have been on the rise once again. The price of a litre of Petrol breached the Rs.100 mark yesterday in Rajasthan. Elsewhere in the country, it’s the same story, albeit not as drastic and it’s upsetting a lot of people. Including the Prime Minister, who recently lamented about India’s dependency on foreign oil. India is most certainly dependent on foreign oil. Back in 2015, the government had outlined plans to reduce India’s import dependency – from 77% in 2013–2014 to 67% by 2022. Because the central government saw an opportunity to make some money here. After all, tax collections were abysmal. They were already borrowing too much. And they were desperately looking to fund their expenditure through any means necessary. So the central government increased excise by a record ₹10 per litre on petrol and ₹13 per litre on diesel, planning to raise a ₹1.6 lakh crores. States meanwhile got in on the act as well. They bumped up taxes in tandem and together these extra charges alone make up 55–60% of the final retail price today.
Reliance Jio, Bharti Airtel & Vodafone Idea apply to bid in spectrum auctions:
- Telecom Market leaders Reliance Jio, Bharti Airtel and Vodafone Idea have filed applications for participation in the upcoming 4G spectrum auctions which are due to start on March 1, 2021. The auction for over 2300 MHz of airwaves, valued at Rs 3.92 lakh crore at base price, though is likely to see limited bidding intensity for spectrum worth less than Rs 48,000 crore, with Jio and Airtel expected to be the main players.
- The Department of Telecommunications (DoT) is not auctioning the expensive 5G airwaves in this tranche, bulking up the existing 4G spectrum will allow Telcos to launch 5G services immediately in those bands, without waiting for the sale of airwaves in the 3300-3600 MHz bands earmarked for the next-generation technology. It is estimated that the two telcos would spend 15-20% on additional 4G airwaves, and this investment will go in select bands in the metro and category A circles, where 4G spectrum assets can now be deployed for future 5G use quickly. The upcoming spectrum auction could help Jio and Bharti fortify their 5G positioning by acquiring good magnitude of 1800 and 2300 MHz (bands that could be used for 5G), while Vodafone Idea seems to hold a meager chance to hold a position to bid for 5G bands given its weak balance sheet.
Retail investors continue to exit from equity Mutual Funds:
- Retail investors have continued to book profits in equity mutual funds, at every rise in the shares. Investor’s selling spree in the equity market has continued for the seventh consecutive month with the overall tally reaching the value of Rs. 42,256 crores. Even the debt mutual funds have witnessed a high amount of outflows, especially liquid funds. The majority profit booking has been witnessed among large-cap funds, followed by smallcap and midcap funds. This has been a good opportunity for the investors to exit from the funds not performing well.
- The skepticism regarding the corrections in some time, investors are preferring to continue to stay invested through systematic investment route (SIP), to strike a balance between utilizing the growth opportunities, and realization of high profits. Investors have been continuously investing into the equity markets through systematic investment routes especially into midcap funds, thematic funds, index funds, international funds, and balanced advantage funds to take advantage of diversification opportunities. In such markets, it is a better strategy to stay invested in the staggered manner to cash-in on the opportunities in the equity markets as well as maintaining risk mitigation measures.
Government committee recommends banning all cryptocurrencies, except those issued by state:
- With the recent saga over the cryptocurrency, further propelled by Tesla’s big bet on Bitcoin, the Indian investors having exposure in the cryptocurrencies traded overseas are in a fuss, due to the government’s stance on banning such cryptocurrencies, which has led to these investors rushing to seek legal aid over these investment’s fate in the county. The finance minister, Nirmala Sitharaman constituted a high-level Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (Economic Affairs) that has suggested that all the private cryptocurrencies, except any virtual currencies issued by the state, will be prohibited in India.
- The central government will take a decision on the recommendation of IMC and legislative proposal if any would be introduced in the Parliament following the due process. In 2018, the RBI had banned banks from processing transactions relating to cryptocurrency. While, in March 2020, the Supreme Court had overturned the ban.
- The government is exploring the use of blockchain technology proactively for ushering in the digital economy, and a cryptocurrency bill is being finalized and which is expected to be sent to the cabinet soon. The cryptocurrency bill is the pressing need of the hour since the existing regulatory bodies in the country like RBI and SEBI too do not have a legal framework to directly regulate cryptocurrencies as they are neither currencies nor assets or securities or commodities issued by an identifiable user.
LIC Policyholders will have a quota in the IPO:
- The initial public offering of Life Insurance Corporation (LIC) would be launched in the next financial year. The LIC Amendment Act has been made part of the Finance Bill, thereby bringing the required legislative amendment for launching IPO of the country’s largest life insurer.
- In the Finance Bill 2021-22, it has been proposed to have a reservation on a competitive basis, to an extent of up to 10 percent of the issue size, in favour of the life insurance policyholders of LIC, while the government will remain the majority shareholder and will continue to retain management control safeguarding the interest of policyholders. This could provide a good opportunity to the existing LIC policyholders, but the guidelines for allotment are yet to be laid out in public.
IndiGo pays Rs 2.1 crore to settle case with SEBI:
- The co-founder of InterGlobe Aviation, Rakesh Gangwal, alleged several violations of corporate governance norms, RPT norms, disclosure norms, and misrepresentation in the IPO document in October 2015 at the company. Based on its investigation, SEBI issued a show-cause in November 2020 to InterGlobe, seeking an explanation for several violations, while in December 2020, InterGlobe filed a settlement application with Sebi to settle the matter, without admitting or denying the findings of fact. Interglobe Aviation has settled a pending dispute with SEBI by agreeing to settle charges of Rs 2.1 crore, through a consent order.
RBI brings large NBFCs, UCBs under risk based audit system
The Reserve Bank of India (RBI) has brought all deposit-taking non-banking finance companies (NBFCs), non-deposit NBFCs with assets of Rs 5000 crore and more and also urban co-operative banks (UCBs) with assets of Rs 500 crore and above under a risk-based internal audit (RBIA) framework.
The risk assessment framework covers risks at corporate, branch, portfolio and individual transactions levels and associated processes. It should include identification of inherent business risks and drawing-up a risk-matrix for both the factors inherent business risks and control risks, the RBI said.
The central bank’s move is in response to failures in large NBFCs and UCBs in recent times like IL&FS and Punjab and Maharashtra Co-operative Bank (PMC) which did not throw up risks in their internal audits.
Kishore Biyani barred for one year on insider trading charges by SEBI
India’s markets regulator on Wednesday barred Future Group founder Kishore Biyani and several related entities, including his brother Anil, from accessing the securities market in an insider trading case dating back to 2017.
Apart from the ban, the Securities and Exchange Board of India (Sebi) also ordered a penalty and disgorgement of illicit gains from Biyani-family-controlled entities that include Future Corporate Resources Pvt. Ltd (FCRL), FCRL Employee Welfare Trust (FCRLWT) and several individuals found to be acting in connivance with the Biyanis.
SC orders disbursement of Rs 9,122 crore to investors of 6 Franklin MF schemes
In a relief to over 3 lakh unitholders, the Supreme Court on Tuesday allowed the disbursement of Rs 9,122 crore to investors of the six shut Franklin Templeton Mutual Fund (FTMF) schemes in “proportion to their respective interest in the assets of the scheme” within 20 days. The six debt schemes were wound up by FT on April 23, citing difficulties in the bond market conditions due to the pandemic.
The exercise for distribution of money has to be completed expeditiously, preferably within 20 days from Tuesday’s order, the apex court said, while giving liberty to parties to approach it in case of any difficulty arising out of the process.
Maruti Suzuki ties up with ALD Automotive for subscription programme
The country’s largest carmaker Maruti Suzuki on Wednesday announced its partnership with ALD Automotive India, the operational leasing and fleet management business line of the Société Générale Group, for its subscription program.
Maruti Suzuki Subscribe offers cars in eight other cities including Delhi-NCR, Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Kochi and Ahmedabad. The subscription plan is now available with varied mileage options of 10K, 15K, 20K and 25K km annually and 12, 24, 36 and 48-month tenures, which brings wide range of choices for customers. After the completion of subscription tenure, the customer can also opt to extend, upgrade the vehicle, or buy the car at market price.
Bharti Airtel posts net profit after six straight quarters; Arpu at 3-year high of Rs 166
Bharti Airtel returned to the profits, posting a net profit of Rs 854 crore in the October-December period after six straight quarters of losses.
Airtel added 14.2 million users – the most in four quarters – and subscribers moved to higher-paying plans, helping drive up average revenue per user (ARPU) to a three-year high of Rs 166, from Rs 162 in July-September.
IIFL Asset Management appoints Manoj Shenoy as CEO
IIFL Asset Management (IIFL AMC) has appointed Manoj Shenoy as its chief executive officer with effect from February 2, 2021.
Shenoy joined the IIFL Wealth group (IIFLW) in April 2020 as executive director following IIFLW’s acquisition of L&T Capital Markets (LTCM), a wholly-owned subsidiary of L&T Finance Holdings (LTFH).
Brookfield REIT issue subscribed 15% on Day 1
The Brookfield REIT is the third issue to enter the primary market in the REIT segment. It is India’s only institutionally managed public commercial real estate vehicle. The IPO consists of fresh issue of units with a price band of Rs 274-275. The IPO opened on Wednesday and will close on Friday.
The issue received bids for 1,15,12,600 units out of the 7,62,78,200 units on offer.
The REIT includes five properties in Mumbai, Delhi-NCR and Kolkata that yielded Rs 455.14 crore in the first six months of this quarter.
Ahead of the IPO, Brookfield REIT had raised Rs 1,710 crore from anchor investors. Sources said the anchor investment round saw participation from financial institutions such as HDFC AMC, SBI Life, Tata AIG, HDFC Life, Kotak Mahindra AMC and Bajaj Holdings, among others. Foreign portfolio investors such as Schroders and Prusik also invested.
Jeff Bezoz steps down as CEO of Amazon
Jeff Bezos is to step down as chief executive of Amazon. He’ll be succeeded by Andrew Jassy, the head of Amazon Web Services, the division that accounts for most of the group’s profits. The succession symbolizes how the company has moved away somewhat from its original e-commerce roots.
Oil prices on the rise again
The U.S. government will release official inventory data for last week, a day after the American Petroleum Institute reported a surprisingly sharp drop of over 2 million barrels in crude stocks, Chinese crude stocks have also fallen to their lowest in a year, Bloomberg reported.
The OPEC’s Joint Technical Committee said on Tuesday that it expects world stockpiles to fall to their five-year average by the middle of the year. That’s been its quantitative objective in keeping supply off the market since the pandemic exploded.
OPEC’s Joint Ministerial Monitoring Committee is expected to decide against any immediate changes to output when it meets later.
Stimulus hopes in the US
The Democratic-led U.S. Senate and House of Representatives are set to take their first steps toward delivering fresh financial relief to families and businesses affected by the pandemic that has killed more than 433,000 Americans.
The Senate is to begin work on legislation this week, despite misgivings among Republicans and some Democrats about the size of President Biden’s proposed $1.9 trillion package.
The U.S. national debt ballooned 40% under Donald Trump and expectations for more stimulus were among factors that recently pushed Treasury yields to 10-month highs.
Manhattan Office Supply Hits Record High With Skyscrapers Empty
Manhattan’s office supply has surged since March when the pandemic emptied out skyscrapers and companies turned to remote working. Efforts to bring employees back to offices have been hampered by rising Covid-19 cases.
With workers stuck at home, the office availability rate rose to 14.9% in January, the highest in data going back to 2000, according to a report by Colliers International.
- Ceat Tyres – Ceat tied up with Nissan to supply Securarange of tyres for Nissan magnite Model. Ceat is providing the best in class in these segments and the design is made in such a bay that they make less noise on-road and give a comfortable ride experience. These tie-ups help ceat to acquire more business in tyre segments.
- Hero MotoCop – due to lockdown and low availability of public transport there is huge potential growth in 2 wheeler segment as demand is increasing in personnel vehicles. in November Herocop sold 519091 units which are 14 % higher than last year’s November sales.
- Company Holds a better position in the market in terms of Market which means they have a various variety of products for Entry and Executive levels. The biggest strength which is reachability to Rural and Semi-Urban area. Almost 60% of sales come from rural areas.
- Tie up with Harley Davidson also adding advantage to the company and this will help the hero to come in premium segment bike range.
- Bharti Airtel – Nettle Infrastructure Investment ( Subsidiary of Bharti Airtel ) increased 4.94 % Stake in Bharti Infratel for Rs. 2882.32 cr and due to this stock in rose up by 2.78 % at 10 am. P 5 Asia Holding Investments Mauritius sold 6.65 crore scrips of Bharti Infratel at Rs 215.5 per share.
- Now the Nettle and Bharti Airtel holds 18.62 % and 23.04 % stake in Infratel. Indus tower which is India’s largest Standalone Mobile network tower merged with Infratel this will be the reason for increasing the stake in Infratel .vodafone hold around 28.12 % stake in the merged entity. Yesterday Vodafone has raised there tariff rates which will help gain airtel to acquire more customers on board with a better connectivity network.
- Indigo airlines – Indigo is operating 1000 daily flights which are 70 % of pre covid level. India resumed its domestic flight on 25 May in pandemic with 33% of passenger capacity. As unlocking happens in the subsequent month the passenger-carrying capacity increase from 33% to 70 %. Ronojoy Dutta ( CEO ) Indigo Said,” we are operating 70% of our pre covid capacity and will continue to grow in 2021.
- With supportive government policy, the incentive to Airlines industries, Unlocking the economy and development in Veccacine will help to grow Airlines industries in India. As limited players in the Airlines industries now, the outlook is positive for this company.