IPO ANALYSIS : VIJAYA DIAGNOSTIC CENTRE LIMITED: EXPENSIVE PRESCRIPTION - AVOID

Issue Details :

Issue opens / closes on	01/09 - 03/09/21
Issue size	Rs
Face value	Rs 1
Price Band	Rs 522-531
Business	Integrated diagnostic chain
Promoters	DR. S. SURENDRANATH REDDY
Listing	Bse, Nse
BRLM	Kotak, Icici Sec and Edelweiss
Registrar	K Fin Technologies

IPO ANALYSIS : ZOMATO LIMITED - INVEST

Issue Details :

Issue opens / closes on	14-07-21 / 16-07-21
Issue size	Rs 9375 Cr
Face value	Rs 1
Price Band	Rs 72-76
Business	Tech based Food / grocery delivery aggregator
Promoters	Professionally managed
Listing	Bse, Nse
BRLM	Kotak Mahindra, Morgan Stanley and others
Registrar	Link India

AWS on Air 2020: AWS What’s Next ft. Amazon SageMaker Debugger

RBI to probe HDFC Bank Auto loan rigging

RBI has asked HDFC Bank to provide details of an internal investigation into allegations of improper lending practices in its vehicle-financing operation, according to people familiar with the matter.

The Reserve Bank of India is also seeking information on steps taken by HDFC Bank to remedy any issues identified during the investigation.

IPO ANALYSIS : ROSSARI BIOTECH LIMITED

Issue Details :

Issue opens / closes on	13-07/15-07-2020
Issue size	Fresh issue Rs 50 Cr plus  OFS of 1.05 cr shares
Face value	Rs 2
Price Band	Rs 423-425
Business	Speciality chemical manufacturers
Promoters	Edward Walter Menezes, Sunil Srinivasan Chari
Listing	Bse, Nse
BRLM	Axis Capital and ICICI Securities
Registrar	Link Intime

Await detailed analysis.

Vodafone's loss widens

Vodafone Idea's pre-tax loss rose 73 per cent to Rs 11,742 crore in the March quarter of 2019-20 owing to exceptional expenses.

The telecom firm had posted a pre-tax loss of Rs 6,758 crore in the same quarter last year.

While the firm’s revenue remained flat on a year-on-year basis, the loss widened due to Rs 6,140 crore worth of exceptional items, which included costs related to merger and integration, additional provisioning for depreciation and impairment, and one-time spectrum charges.

China’s manufacturing activity expands

• China’s manufacturing activity expanded in June with the official Purchasing Manager’s Index coming in at 50.9.

ICICI Bank reports excellent numbers

 ICICI Bank has reported 26 per cent jump in net profit in the fourth quarter of the fiscal 2019-20 at Rs1,221 crore as against Rs 969 crore a year ago.

The bank’s total income grew by 12 per cent to Rs 23,443 crore in the quarter ended March 30, 2020 from Rs 20,914 crore a year ago. The net interest income grew by 17 per cent to Rs 8,927 crore in the fourth quarter, from Rs 7,620 crore a year ago.

The net interest margin is the highest ever at 3.87 per cent in the fourth quarter.

Forthcoming IPO : Stove Kraft Limited

Stove Kraft Ltd, manufacturer of kitchen appliances is planning to lists its shares on the exchanges. The company has received markets Sebi's clearance in this regard.

The company is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under Pigeon and Gilma brands.

The IPO is being lead managed by Edelweiss Financial Services and JM Financial.

The public offer comprises a fresh issue of equity shares aggregating up to Rs 145 crore and an offer for sale of up to 71,63,721 equity shares, according to the draft red herring prospectus.

HUL posts muted numbers

FMCG major Hindustan Unilever has posted a 3.56 per cent year-on-year  decline in its consolidated net profit at Rs 1,515 crore for the quarter ended March 2020. 

The company had posted profit of Rs 1,571 crore in the year-ago period. On a standalone basis, profit came in at Rs 1,519 crore, down 1.23 per cent against Rs 1,538 crore in the corresponding quarter of the previous fiscal.

Revenue from operations  stood at Rs 9,055 crore, down nearly 10 per cent against Rs 10,018 crore in the year-ago quarter. 

The company has recommended a final dividend of Rs 14 for the financial year ended March 31, 2020 on equity shares of Re 1 each.

HUL closed at Rs 2205, down one percent in Thursday's trade. 

RIL announces rights offer.

RIL  has announced the much-awaited details of its rights issue, which is the India’s largest. The company is planning to raise Rs 53,125 crore by issuing one equity share for every 15 shares held by eligible shareholders as on the record date, which will be announced later.

This would mean an equity dilution of 6.7 per cent at the proposed issue price of Rs 1,257 per share (including a premium of Rs 1,247 per share). 

The rights offer price is at a 14 per cent discount to RI L's closing price of Rs 1,467, on Thursday.

RIL posts unimpressive numbers

Reliance Industries has reported a 33.5 per cent decline in its consolidated profit before tax at Rs 9,223 crore for the quarter ended March 2020 due to pressure in its petrochemicals business, higher expenses and exceptional items.

Net profit, after exceptional items was 38.7 per cent lower at Rs 6,348 crore from Rs 10,362 crore in the quarter ending March 2019. The company incurred a one-time loss of Rs 4,245 due to the Covid-19 pandemic induced lock down and inventory losses because of fluctuations in the global oil prices.

RIL's refining and petrochemical businesses, which was hurt by the corona-virus, declined 18.2 percent sequentially  to Rs 84,854 crore and fell 12.7 percent QoQ to Rs 32,206 crore, respectively.

The stock closed at Rs 1464, up 2.64 percent in Thursday's trade.

Banks lend helping hands to NBFCs

Amid liquidity crisis, Banks in India have started lending to Non-Banking Finance Companies, the highest since 2008, as the shadow lending industry bulked up before the financial year closure, which probably is also making banks lend more to them or provide moratorium on payments.

Total loans grew 4 percent in the same period at Rs. 3.57 lakh crores, data from RBI shows. While NBFC accounted 32 percent of the total, industry loans also grew, including MSMEs at 37 percent. 

Moody's slash India's growth rate

Moody’s Investors Service has slashed India growth forecast for calendar year 2020 to 0.2 per cent, from 2.5 per cent projected in March. For 2021, the rating agency expects India’s growth to rebound to 6.2 per cent.

The rating agency had cut its projections from 5.2 per cent to 2.5 per cent after Prime Minister Narendra Modi announced a nationwide lock down on March 24.

ICICI Bank's exposure to Ocean Tankers is likely to turn bad

ICICI Bank has issued notices to impound two vessels operated by Ocean Tankers, a unit of the troubled Singapore oil-trading company Hin Leong Trading.

ICICI Bank, which has about $100 million exposure to HLT, has issued writs against the vessels Wu Yi San and Chang Bai San.

According to S&P Global Platts, a provider of energy and commodities information, Hin Leong Trading's founder Lim Oon Kuin has been blamed for financial mismanagement and reselling of inventory that was used as banking collateral, causing losses running into billions of dollars, in a court filing by his son Lim Chee Meng. Hin Leong has suffered $800 million in unaccounted derivatives losses .

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Brickwork : Moratorium provisions to hurt banks profitability

Brickwork Rating estimates that 10 per cent provisioning on loans granted moratorium could hit profitability by up to Rs 72,000 cr.

The Reserve Bank of India stipulation that banks maintain higher provision of 10 per cent over the two quarters of March and June 2020 on loans that have been granted a three-month moratorium could drill a huge hole, ranging from Rs 36,000 crore to Rs 72,000 crore, in their profitability, Brickwork Ratings has cautioned.

Neighboring nations FDI : govt tightens norms

In a major change in its foreign direct investment (FDI) policy, India has brought in stricter measures to curb the 'opportunistic takeover' of Indian companies due to the current Covid-19 pandemic by firms in neighbouring countries, including China.

According to the Press Note 3 issued by the Department for Promotion of Industry and Internal Trade, the government has said that an entity of a country which shares a land border with India can invest only after receiving government approval.

Recently China's Central Bank has purchased one percent stake in housing major HDFC through open market operations.

NBFCs seek additional liquidity

Non-bank lenders have sought additional liquidity support of Rs 2 lakh crore through a special central bank mechanism after April cash-flows were choked.

The support has been sought either through the TLTRO mechanism, the proceeds of which banks must use to buy bonds of corporate or non-bank lenders or some kind of refinancing window. 

HDFC Bank posts 18% increase in net, provisions doubles

HDFC Bank has reported 18 per cent year-on-year rise in net profit at Rs 6,928 crore, for the March quarter. 

Net interest income for the quarter climbed to Rs 15,204 crore from Rs 13,089 crore, driven by 21 per cent growth in advances and a 24 per cent growth in deposits.

 The bank's provisions and contingencies stood at Rs 3,785 crore in March quarter compared with Rs 1,899 crore in the same quarter last year.