Daily Market Analysis – 30th Sept 2020
1. Reliance Industries Limited and Reliance Retail Ventures Limited announced on Wednesday that General Atlantic will invest 3,675 crores for 0.84% into RRVL
a. It is the second investment by General Atlantic in a subsidiary of Reliance Industries, following ₹ 6,598.38 crore investment in Jio Platforms announced earlier this year.
b. It is a step towards transformational digitalization of small and unorganised merchants in the retail sector.
c. General Atlantic believes the fundamental ability of Digital enablement to drive progress in the retail sector
d. General Atlantic expertise at the intersection of technology and consumer business along with two decades of experience investing in India will help the company to redefine the retail sector.
2. Walmart may invest $25 billion in Tata Group’s “Super app”.
a. Super App is set to be launched in India in December or January. It will provide services like Healthcare, food and groceries, insurance and financial services, fashion and lifestyle, electronics, education and bill payments.
b. Application valuation is estimated at around $50-60 Billion.
c. If the deal goes through, It would be India’s largest deal in retail space, overtaking Walmart’s May 2018 purchase of 66% stake in Flipkart for $16 billion
3. Rosneft and Saudi Aramco unlikely to bid in BPCL Privatisation
a. Rosneft would only be interested in BPCL’s marketing business comprising fuel depots and more than 16,800 fuel stations.
b. Sources say that Aramco has halted most of its India investment plans because of the oil price crash and is unlikely to bid for BPCL.
c. It is difficult for India to get deserved price for BPCL stake sale in the current environment
d. There is a high possibility that India has to sell BPCL in parts
4. 25% Stake Sale in LIC
a. India is seeking cabinets approval to sell 25% stake in nations largest life insurer.
b. The government has picked Deloitte Touche Tohmatsu India Ltd. and SBI Capital Markets Ltd. to help Life Insurance Corp. of India prepare for an initial share sale.
c. The administration has raised about 57 billion rupees through asset sales in the fiscal year from April 1, as against a target of 2.1 trillion rupees.
d. If this sale goes through, it will help the government support its finance in this crucial pandemic situation
5. RBI gives more times to states to avail additional market borrowing, OD facility
a. The Reserve Bank in April provided flexibility to states and Union Territories (UTs) to raise funds through market borrowing and overdraft to deal with the COVID-19 crisis. The flexibility was available until September 30, 2020.
b. With an aim to help the state governments tide over the financial problems triggered by the COVID-19 pandemic, the RBI on September 29 extended by six months.
c. “Ways and Means Advance” is the temporary advances given by RBI to the government to tide over any mismatch in receipts and payments.
6. Brookfield REIT plans $600 mn IPO
a. Global asset management major Brookfield will file for a USD 600 million (around Rs 4,440 crore) initial public offering for its real estate investment trust NSE 3.58 % (REIT)
b. The Brookfield REIT is likely to list by mid-December or early January
c. This is the 3rd REITS IPO coming up
d. In past, we have seen Investors have demonstrated a strong interest for Mind space and Embassy REIT and this has resulted in huge over-subscription of the issue.
e. The success of this REIT is strong developer credentials combined with a positive outlook for commercial real estate, established portfolio which ensures the stability of returns via rental income.
IPO UPDATE:
1. Mazagon Dock Shipbuilders: The Rs 444-crore public offer received bids for 6,39,74,227 shares against 3,05,99,017 shares on offer, translating into 2.09 times subscription, according to data available with the NSE.
2. The Rs 2,150-crore public offer received bids for 73,02,609 shares against 2,73,50,957 shares on offer, translating into 0.27 times subscription, according to data available with the NSE.
3. The initial public offering of the oil and gas pipeline infrastructure service provider was subscribed 1.01 times on the first day of bidding. The IPO consists of a fresh issue of up to 51,00,000 equity shares representing 25.86% of the post-issue shareholding.