Axis MF added most folios in FY21; followed by ICICI, whereas HDFC loses client base
The Axis Mutual Fund beat the top three mutual funds in the industry to record its largest addition to new folios in FY-21. It added 20,42,150 new folios in FY-21 whereas ICICI added 20,42,016 new folios. In this, ICICI remained the winner in the top three which include HDFC Mutual fund & SBI Mutual fund. Mirae AMC also managed to add another 8.26 lacs new folios in this similar period, whereas ABSL AMC lost 1.20 lacs folios.
The increasing investor awareness along with the right asset allocation since years helped Axis Mutual fund to come up as a leader for the said period, whereas, for ICICI AMC, sectoral funds where it has dominance in the IT & Pharma sector funds might have played a pivotal role in the performance of the AMC, whereas acc. to the ICICI AMC’s MD & CEO, Mr. Nimesh Shah, delivering good returns throughout all market cycles with zero default rate for nearly two decades helped them throughout.
The story of IPOs to look out for
The Ed-Tech Startup Byju’s is planning to go public before April 2023. On April 5, the startup acquired Aakash Educational Services Ltd. cracking a deal worth $1 Billion (7300 Cr.) marking its biggest acquisition to date. Byju’s, the most valued ed-tech startup in the country, is backed by marquee investors like Mary Meeker, Yuri Milner, Chan-Zuckerberg Initiative, Tencent, Sequoia Capital, Tiger Global and others. It is estimated to have raised over USD 2 billion in funding to date.
As the Pandemic situation has enticed the educational systems all over the world to restructure the way they work, Byju’s should be an interesting IPO to watch out for. While the current valuation of Byju’s is $16.5 Billion which is amongst the highest globally whereas that of Unacademy stands at $2 Billion.
Vedanta gets a nod to acquire Videocon
The Bankruptcy court of India gave a nod to Anil Agarwal’s Twin Star Technologies (a part of the Vedanta Group) to acquire Videocon Industries Ltd. The company will put up 5 billion rupees within 90 days and the rest as non-convertible debentures over a period of time.
Videocon’s debt stood at over 635 billion rupees in 2019, out of which, 574 billion rupees was owed to over three dozen banks and other financial creditors.
Paytm IPO moves an inch ahead
Recently Paytm came up with a draft red herring prospectus that gives the employees of the company the option to sell their shares ahead of the IPO. The company, whose investors include Berkshire Hathaway Inc., SoftBank Group Corp., and Ant Group Co., is seeking to raise about 218 billion rupees ($3 billion) at a valuation of around $25 billion to $30 billion.
Paytm’s public market debut will include a mix of new and existing shares to meet regulatory obligations in India. The country’s regulations require that 10% of shares are floated within two years and 25% within five years. Paytm Is Said to Target $3 Billion IPO, Largest Yet in India.
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HDFC to raise up to ₹7,000 crore by issuing bonds
HDFC is looking to raise up to ₹7,000 crores by issuing secured redeemable non-convertible debentures (NCDs) with a base size of ₹5,000 crores and an option to retain oversubscription of up to ₹2,000 crores. The issue of the bonds opens on May 28, 2021, and will close on the same day. The mortgage lender will offer a coupon rate of 6% p.a and is offering a tenor of almost 5 years with its redemption date set as May 29, 2026.
The objective of this issue arranged by Axis Bank is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirements of the Corporation.
PharmEasy eyes IPO, acquires Medlife to become India’s largest e-pharma company
API Holdings, the parent entity of the online pharmacy chain Pharmeasy, has begun talks for a potential public market listing, aiming to raise around ₹3,000-₹3,700 crores. The initial public offering to be held at the end of this year is likely to value the company at around ₹21,800 crores.
Medlife was acquired with the shareholders receiving a 19.59% stake and its customers absorbed, making Pharmeasy the largest healthcare delivery platform across the country. Online pharmacies are among the few verticals in e-commerce to have grown during the second Covid-19 wave and the Indian e-health sector is expected to grow at a CAGR of 68% by FY 2025.
WhatsApp files case in Delhi High Court, seeking to block new IT rules
The new IT rules require the appointment of a resident grievance officer, chief compliance officer and nodal contact person, to publish details of executives on their website, along with a physical contact address. The case was filed on 25 May 2021, after new rules required significant social media intermediaries to trace the origin of particular messages breaking the end-to-end encryption messages, which WhatsApp believes is an end to privacy, among other rules. Social media platforms run the risk of losing their status as intermediaries and may become liable for criminal action if they do not comply with the revised regulations.
Strong Q4 performance boosts the consolidated net profit of KNR Constructions to 23.5%
The company reported strong Q4 performance with revenue growth of 39% you and an EBITDA growth of 24% you with net profit rising 15% YoY with a little lower margin amid the significant rise in operating expenses and increasing commodity prices.
However, it is believed that the margin challenges will diminish by FY22 end and spillover of existing order book execution will add to FY23 growth and is also working and improving on debt reductions.
The company said it completed widening to 4/6 lanes and strengthened the existing two-lane carriageway of NH-5 with a total contract value of ₹231 crores and with its current order book receiving two new NHAI projects and an EPC project taking the total order book to ₹11,400 crores.
These results have boosted the confidence of the street and are bullish about long-term prospects. The stock is up more than 7% in two trading sessions post results.
India’s market cap hits $3 trillion
The Indian stock market has avoided the economic setbacks due to the pandemic and surged to a market capitalization that crossed $3 trillion for the first time and ranked eighth on the table of most-valued equity markets. India joined UK, France, and Canada in the $3-trillion m-cap club on Monday, ahead of Germany even with the performance of the largest companies listed on the Frankfurt stock exchange being up 13% this year outperforming the Sensex which is up 6%.
This marks a stellar run for India from the bottom of the crash last year. Looking ahead with listing of LIC among others could add another $200 billion and the bull case scenario sees Sensex at 61,000 by the end of this year, taking the market capitalization ahead of even Canada and France.
Term Life Insurance Cover seeking higher premiums
Many Indian businesses are finding it difficult to renew or buy fresh term-life covers for their employees due to a significant increase in premiums. There is also an unwillingness to extend mortality benefits by several private-sector life insurers who have set stricter norms for the underwriting process and increasing the scrutiny. This could be due to high mortality risks caused by the pandemic and thus these insurers prefer businesses to buy individual term plans instead of group insurance for the staff as it can be priced differently based on individual risks.
Union Budget 2021-22 to be presented on February 1
The Union Budget for 2021-2022 will be presented on February 1. According to PTI, the Cabinet Committee on Parliamentary Affairs (CCPA) has said the Budget will be presented on February 1 and President Ram Nath Kovind will address a joint sitting of both the Houses of Parliament on January 29.
Telecom dept likely to issue a notice for spectrum auction this week
The Department of Telecom is expected to issue the notice for an upcoming spectrum auction this week that will have timelines and rules to bid for airwaves. The Union Cabinet approved a proposal for the auction of 2,251.25 Megahertz (MHz) of spectrum worth Rs 3.92 lakh crore at the base price on December 17, 2020.
The DoT was expected to issue the Notice Inviting Application (NIA) for the auction in December but due to an emergency engagement of a top authority, it got delayed.
RBI imposes a penalty on Bajaj Finance for rule violations on recovery practices
The Reserve Bank of India (RBI) on January 5 imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance Limited for violation of rules pertaining to recovery and collection methods.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Reserve Bank of India Act, 1934, taking into account the failure of the company to ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI.
HDFC’s individual loan disbursements rise 26 pc in the December quarter
Mortgage firm HDFC Ltd on Monday said its disbursements in the individual loan category have grown by 26% during the third quarter ended December 2020. The individual loan business continued to see improvements during the December quarter, HDFC Ltd said in a regulatory filing. Disbursement growth over the corresponding quarter of the previous year was 26 percent. For the nine months ended December 31, 2020, individual loan disbursements stood at 86 percent of the levels in the corresponding period of the previous year.
IndusInd Bank posts 3.2% quarterly growth in net advances
Private lender IndusInd Bank has registered a 3.2% quarter-on-quarter (q-o-q) growth in the net advances in the December quarter, according to provisional data released by the bank on Tuesday. However, the loan growth remained flat during the quarter on a year-on-year (y-o-y) basis. The lender has also managed a 5% quarterly growth in deposits during the December quarter of the current fiscal. On a y-o-y basis, the deposits saw double-digit growth of 10.56% in the December quarter.
Brent oil rises to highest since February after Saudi Arabia output cut
Brent oil prices rose on Wednesday to the highest since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers, while industry data showed U.S. crude stockpiles fell last week.
Brent crude rose as much as 0.6% to $53.94 a barrel, the highest since Feb. 26, 2020. It was at $53.79 a barrel at 0147 GMT and gained 4.9% on Tuesday. The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.
With coronavirus infections spreading rapidly in many parts of the world producers are trying to support prices as demand takes a hit from new lockdowns being put in place.
Indian steelmakers have raised product prices effective 1 April to factor in rising raw material costs
State-run Steel Authority of India, world’s No. 8 Tata Steel, India’s No. 3 producer JSW Steel, Ispat Industries, and secondary steel maker Uttam Galva have all announced price increases for April.
The price hike is driven by cost on account of coke, iron ore and ferrous alloys.
Iron ore prices have surged more than two-fold in the last 12 months on strong demand from China and a recovery in Europe and the United States to near $160 a tonne.
Tata Steel to develop GreenPro Ecolabel to help steel sector reduce carbon emission
Tata Steel has embarked on developing a GreenPro framework, GreenPro Ecolabel, to manufacture steel rebars, a first of a kind initiative in India, that would help the steel sector reduce the carbon footprint while manufacturing steel products.
The company has joined hands with the CII green business center to develop the framework that offers the Ecolabel program, enabling end-users to buy steel having the lowest environmental impact.
The use of green or low carbon materials has the potential to reduce emissions due to the construction and dismantling of buildings by up to 50%- 70% by 2050.
From performance cars to SUVs and sedans, Audi lines up new cars for India comeback
Audi is looking to make a comeback and is lining up a series of cars – right from small SUVs and sedans, to sports cars and electrics as the company plans fresh investments and new models to gain back the luxury market share which it once dominated.
It is planning to localize certain models, such as the Q2 mini SUV. Also on cards is the much-anticipated eTron electric SUV (and other electric derivatives) which will be priced upwards of Rs 1 crore. Inline are also the Q3, Q5, and Q7 SUVs, the RS5 and S5 performance cars, and the A3 entry sedan.
Rising demand for an owned mode of transport, coupled with decadal low auto loan rates, has resulted in the return of a waitlist for car buyers for up to 10 months.
Dealers said the inventory pipeline has been wiped clean with December being a good month. Hence, because of a gap in the demand and supply, the current situation will take several weeks more to ease out.
Passenger vehicles original equipment manufacturers dispatched 18% more vehicles year-on-year in December. At 2,76,500 units, which was the highest December sales in the last decade.
Bharat Earth Movers Limited bagged an order for the supply of High Mobility Vehicles from the ministry of Defence with an approximate value of Rs 758 Cr. These High Mobility vehicles would play a key role in the logistics management of the Indian Army.
Indian Bond Market:
Indian firms raised a record Rs 7.67 lakh cr in local bond sales
Record low-interest rates prompted many large companies to prefer the local market to that overseas. Excess liquidity in the system paved the way for the record high local bond sales in a single calendar year.
|Year||Funds Raised (Rs. in Crs)|
Covid-19: Boris Johnson announces new national lockdown in UK for 6 weeks
UK Prime Minister Boris Johnson on Monday announced a six-week lockdown for England’s 56 million people, including the closure of schools, after a surge in coronavirus cases brought warnings that hospitals could soon face collapse.
Britain, one of the worst-affected countries by the global health crisis, with over 75,000 deaths has been pinning its hopes on the mass vaccination drive. But more than 50,000 positive cases were recorded across Britain every day for the last week.
With the new lockdown, all non-essential shops will be shut across England, along with bars, restaurants, and other hospitality and entertainment venues.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 986.3 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 490.03 crore in the Indian equity market on January 5, as per provisional data available on the NSE.