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.
1. Rise in Petrol and Diesel Prices
The petrol price in Mumbai was Rs. 95 per Litre on Saturday and it has increased by 30 Paisa. Diesel price also increased by 36 paise from the Saturday rates. There is a price difference between Petrol and diesel prices from state to state due to tax and duties.
Central And state tax makes up 61% of retail selling price and 56% of diesel prices. The international market price per barrel is 61 USD.
The demand for Crude oil is rising Due to the unlocking of the economy globally, increase in demand, and global supply. As we see rising demand for crude oil, we can see the shift to renewable energy. It will also impact the demand on the automobile industries as well.
There is a fair chance of increasing the price of crude oil.
2. Franklin India Debt Mutual Fund
Franklin India had declared to shut 6 funds with AUM of Rs.25k cr on 23 April 2020 due to liquidity and redemption Pressure. Franklin AMC had received near 13k from the maturity of bonds till January 2021. This will help to pay back to its investor and still some bonds are in the process of maturity.
The schemes — Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.
3. Govt is planning to infuse Rs. 3000cr into PSU general Health Insurance companies
The targeted health insurance companies are Nation Health Insurance, United Health Insurance, and oriental Health Insurance. The purpose of providing this fund is to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes and enhance the capacity to raise resources and improve risk management.
The cabinet had also decided to increase the authorized share capital of National Insurance Company Ltd. to Rs 7,500 crore and that of United India Insurance Company Ltd. and Oriental Insurance Company Ltd. to Rs 5,000 crore each to give effect to the capital infusion decision.
This Decisions will be taken on March 8 in parliament, after that execution will start.
These steps will help to create confidence among the investor towards PSU sector and help to improve overall health Industries.
4. RailTel IPO
RailTel Corporation a “Mini Ratna (Category-I)” PSU is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track.
Facts about the company
- Largest neutral telecom infrastructure providers
- Wide Range of services
- Optic fiber network covering 59,098 route Kms and 5,929 railway stations in India
- Has an exclusive right of way along 67,415 Kms connecting 7,321 railway stations
- Has 305,746 retail customers and 5,023 Access network providers (ANPs) to deliver the last mile connectivity
RailTel is providing good opportunities for investment and it has high potential to grow as infra grows.