Author: Raghuveer

Shares of TVS Supply Chain Solutions Ltd, a subsidiary of the TVS Mobility Group, concluded their debut trade on Wednesday with a 2% premium over the issue price of Rs. 197.

The stock made its debut on the BSE at Rs. 206.30, marking a 4.72% increase from the issue price. Throughout the day, it reached a peak of Rs. 208.50, reflecting a 5.83% surge.

Closing at Rs. 200.95, the company’s shares ended the day with a 2% gain.

On the NSE, the stock commenced trading at Rs. 207.05, securing a 5.10% rise. It reached a high of Rs. 208.60 during the trading day before settling at Rs. 201.10, resulting in a 2% increase.

TVS Supply Chain Solutions boasted a market valuation of Rs. 8,789.75 crore.

In terms of trading volume, the BSE saw 17.59 lakh shares traded, while the NSE recorded over 2.41 crore shares changing hands during the day.

Last week, the Initial Public Offering (IPO) of TVS Supply Chain Solutions garnered 2.78 times the subscription. The IPO, valued at Rs. 880 crore, was priced in the range of Rs. 187-197 per share.

TVS Supply Chain Solutions maintains a presence in more than 25 countries and is promoted by the former TVS Group. It is now a part of the TVS Mobility Group, which encompasses four business verticals: supply chain solutions, manufacturing, auto dealership, and aftermarket sales and service.

The continuous downward spiral of newly listed Jio Financial Services shares shows no signs of respite, as it plunges into the lower circuit for the third consecutive day this Wednesday. Over the span of just three days, the stock has shed over Rs 23,000 crore in market value. Surprisingly, despite this decline, it still holds the position of being the third-largest Non-Banking Financial Company (NBFC) after the formidable Bajaj Finance and Bajaj Finserv. The primary culprit behind this downward trajectory appears to be institutional selling, which is putting pressure on Jio Financial Services.

Now, the question arises: could this be an opportune moment to consider buying? However, potential investors must also familiarize themselves with the peculiar ‘T’ group classification under which Jio Financial stock is currently traded.

The valuation of Jio Financial Services is predicated on the anticipation of its future growth potential and its ownership of a substantial 6.1% stake in RIL (Reliance Industries Limited). In terms of future growth, Jio Financial has promising prospects, given its vast consumer and merchant network, suggesting substantial room for expansion. Nevertheless, the current drag on the share price stems from institutional selling in the short term, which has been accentuated by the stock’s placement in the T group.

The ‘T’ group designation is typically assigned to stocks expected to exhibit high volatility. In the case of Jio Financial, this move was made in anticipation of institutional selling as well as anticipated buying interest. The volatility witnessed in the stock following its listing justifies its placement in the T group. Jio Financial trades within BSE’s ‘T’ group of securities, denoting stocks settled on a trade-to-trade basis for surveillance purposes. These are commonly referred to as trade-to-trade (T2T) securities. Typically, stocks are placed in this group to curb speculative activities and protect retail investors from erratic price fluctuations. Under the T2T segment, only delivery trades are permitted, eliminating intraday trading. Moreover, there is a 5% circuit limit on both the lower and upper sides of the stock price.

Before its listing on August 21, BSE announced that Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) would be placed in the Trade-for-Trade segment for a duration of 10 trading days. Consequently, Jio Financial Services will experience a 5% price movement restriction, both upward and downward, for these ten trading sessions, starting from August 21.

Furthermore, on Tuesday, BSE disclosed that due to the stock hitting the lower circuit limit for two consecutive days on Monday, August 21, 2023, and Tuesday, August 22, 2023, the Index Committee has decided to defer JFSL’s removal from all the S&P BSE Indices by an additional 3 days. Consequently, Jio Financial Services will be excluded from all the S&P BSE Indices before the commencement of trading on Tuesday, August 29, 2023.

In summary, on Wednesday, Jio Financial Services’ shares concluded at Rs. 224.65, marking a 5% decline at NSE.

Jio Financial Services’ shares, which were separated from Reliance Industries (RIL), experienced a consecutive second-day decline of 5 percent, triggering a halt in their removal from benchmark indices. Jio Financial’s current weight in Nifty50 and Sensex is around 1 percent.

Simultaneously, both BSE and NSE have confirmed the removal of Jio Financial from their indices on August 29, following the stock’s consecutive lower circuit triggers. In case the stock’s downward limit persists, the exclusion might be postponed to ensure ETFs have an orderly exit.

On the National Stock Exchange (NSE), it concluded at Rs 236.5, down from the prior day’s Rs 248.9.

Presently, Jio Financial’s valuation is Rs 1.5 trillion, reflecting a market value decrease of nearly Rs 16,000 crore. During a special price discovery event on July 20, the Mukesh Ambani-led company was appraised at Rs 1.66 trillion.

Market analysts suggest that the decrease in Jio Financial shares is due to various causes. One of them is market sentiment. They predict that exchange-traded funds (ETFs) and index funds linked to Nifty and Sensex will offload Jio Financial shares worth $400 million since holding the stock will no longer be obligatory. This is a normal procedural issue.

Additionally, Global Depository Receipt (GDR) holders of RIL are expected to sell shares worth $500 million. These investor groups received Jio Financial shares due to their ownership of RIL.

Even though the stock will be excluded from both the domestic benchmark indices, it nevertheless continues to be a part of global indices like Morgan Stanley Capital International and the Financial Times Stock Exchange, mitigating the downward pressure.

The anticipated mandatory selling might involve approximately 150 million shares, valued at about Rs 3,500 crore during the last closing. It is expected that as the Reliance annual general meeting (AGM) slated for August 28, the unveiling of a business roadmap could potentially ease the price pressure.

Due to Jio Financial’s limited operational commencement, analysts are grappling with establishing a fair stock value and are awaiting further signals from the company.

Some analysts question whether RIL can replicate its disruptive strategy in retail and telecommunications within the financial sector. The execution capabilities of Jio Financial will only become evident over time. They are monitoring the level of aggression in unsecured lending by Jio Financial to assess the impact on non-banking financial companies (NBFCs) and system-level leverage.

Furthermore, if Jio Financial attains the same ‘AAA’ rating as parent RIL, it could enjoy a significant advantage in terms of lower funding costs.

Amidst all these cues, how the stock performs today would be interesting.

On the first day of subscription, the Initial Public Offering (IPO) of Aeroflex Industries, a stainless steel flexible hose manufacturer, saw robust demand, with a subscription rate of 6.69 times.

According to NSE data, the Rs 351 crore IPO attracted bids for 15,52,35,730 shares against the 2,32,17,667 shares on offer. Non-institutional investors showed significant interest, subscribing 14.05 times, while Retail Individual Investors (RIIs) subscribed 6.67 times, and Qualified Institutional Buyers (QIBs) subscribed 1.17 times.

The Grey Market Premium stands at Rs. 65.

This IPO comprises a fresh issue of up to Rs 162 crore and an offer for sale of up to 1.75 crore equity shares. The price range for the offering is Rs 102-108 per share.

Aeroflex Industries had previously announced that it raised approximately Rs 104 crore from anchor investors.

The funds raised through the fresh issue will be allocated for debt repayment, working capital requirements, and general corporate purposes. Additionally, a portion will be reserved for acquisitions to support inorganic growth opportunities.

The company’s equity shares are set to be listed on both BSE and NSE.

Tata Power Ltd’s shares have garnered attention on Tuesday following an agreement made by its renewable energy subsidiary with Tata Motors for a solar power project.

In a filing with the stock exchange on Monday, the company announced that its subsidiary, Tata Power Renewable Energy Ltd (TPREL), has entered into a Power Purchase Agreement (PPA) with Tata Motors Ltd for a 9MWp on-campus solar plant at the Pantnagar plant in Uttarakhand.

This solar facility will be the largest of its kind at a single location in Uttarakhand and is expected to reduce carbon emissions by approximately 25 tonnes of CO2 per kWp in the northern state. The project is scheduled to be commissioned within six months from the date of the power purchase agreement.

With this new project, Tata Motors’ Pantnagar plant will have a combined solar capacity of 16 MWp. Tata Power’s operational capacity is an impressive 4,132 MW, comprising 3,139 MW of solar capacity and 993 MW from other sources.

The management of TPREL, stated, “The 9MWp solar power installation reflects our commitment to promoting the widespread adoption of eco-friendly clean energy solutions across industries.

This collaboration between the two companies is not their first, as TPREL and Tata Motors previously implemented a 7 MWp solar project at the Pantnagar manufacturing facility under an earlier partnership.

On Tuesday, Tata Power’s shares closed at Rs. 243.70, marking a 1.82% increase compared to the previous day’s closing price.

On Tuesday, Glenmark Pharmaceuticals Ltd. revealed that its US subsidiary is reaching a resolution with the United States Department of Justice, Antitrust Division (DOJ), regarding a case involving former employees and drug pricing.

To settle this case, Glenmark Pharmaceuticals Inc., the company’s US arm, has agreed to make six payments totaling $30 million. This settlement encompasses all legal proceedings with the DOJ linked to past pricing practices by former employees concerning the generic drug pravastatin between 2013 and 2015.

Additionally, Glenmark Pharmaceuticals Inc. has entered into a three-year Deferred Prosecution Agreement. Should the company adhere to the agreement’s terms, which include the $30 million payment, the pending Superseding Indictment will be dismissed by the DOJ.

The management of Glenmark Pharmaceuticals Inc. expressed their commitment to bolstering compliance practices, ensuring the highest ethical standards in their operations, and maintaining transparency and integrity in their business dealings.

In April, Glenmark Pharmaceuticals had already announced its intention to pay $87.5 million to settle multiple antitrust and consumer protection cases related to a generic drug in the US. These cases, including a class action lawsuit, had been consolidated in the Eastern District of Virginia and concerned the company and its subsidiary, Glenmark Pharmaceuticals Inc., in connection with the cholesterol treatment drug generic Zetia.

As of Tuesday, August 22, 2023, Glenmark Pharma’s stock closed at Rs. 759.65, marking a 1.99% decrease from the previous day’s closing price.

Crop Life Science Limited’s IPO, which opened on August 18, is set to close on August 22. The company, as described in the Red Herring Prospectus (RHP), specializes in agrochemicals, manufacturing, distributing, and marketing a variety of agrochemical formulations, including pesticides and micro-fertilizers such as insecticides, fungicides, herbicides, and weedicides.

In 2006, Crop Life Science secured a 99-year lease for approximately 5,831.10 square meters of land from the Gujarat Industrial Development Corporation (GIDC) for its manufacturing unit in GIDC Ankleshwar, Gujarat. Manufacturing of pesticides and micro-fertilizers commenced in the fiscal year 2006-07.

The subscription status of the Crop Life Science IPO as of day 2 is 2.18 times, with strong interest from retail investors, subscribing 3.78 times their portion, and non-institutional buyers subscribing at 58%. Bids have been received for 1,06,48,000 shares against the 5,140,000 shares on offer.

In the grey market, the IPO’s grey market premium (GMP) is currently at -4, indicating that shares are trading at a ₹4 discount compared to the issue price. Considering this GMP and the upper end of the price band, the estimated listing price of Crop Life Science Ltd shares is ₹48 each, which is 7.69% lower than the issue price of ₹52.

In recent trading sessions, Crop Life Science Ltd shares have been trading at their issue price with no premium or discount in the grey market. The GMP ranges from ₹-4 to ₹7, suggesting a discount listing is expected.

Crop Life Science IPO details include a price band of ₹52 per equity share with a minimum lot size of 2000 shares. The issue price is 5.2 times the face value of the equity share. The IPO comprises a fresh issue of 51.40 lakh equity shares amounting to ₹26.73 crore, with no offer for sale (OFS) component.

Proceeds from the IPO will be used to repay debt, meet long-term working capital requirements, and for general corporate purposes. Interactive Financial Services Ltd is the lead manager for the IPO, and Purva Sharegistry Pvt Ltd is the registrar.

The basis of allotment will be finalized on August 25, with refunds initiated on August 28. Shares are expected to be credited to the demat accounts of allottees on August 29, and they are likely to be listed on NSE SME on August 30.

Here is a detailed overview of the performance of the top 10 companies in the Indian IT sector during the first quarter of this fiscal year:

Tata Consultancy Services (TCS):

TCS, India’s largest IT services company, reported revenues of Rs. 59,381 crore, a significant increase from Rs. 52,758 crore YoY.

Net profit for this quarter reached Rs. 11,120 crore, compared to Rs. 9,519 crore YoY.

Operating profit stood at Rs. 14,998 crore, up from Rs. 13,416 crore YoY.

The operating margin remained stable at 25% compared to the previous year’s first quarter.

Earnings per share (EPS) for Q1 reached Rs. 30.26, an improvement from Rs. 25.90 YoY.

The attrition rate decreased to 17.8%.

Infosys:

Infosys, India’s second-largest IT company, achieved sales of Rs. 37,933 crore, an increase from Rs. 34,470 crore YoY.

Net profit for the quarter was Rs. 5,945 crore, up from Rs. 5,362 crore YoY.

Operating profit stood at Rs. 9,064 crore, compared to Rs. 7,864 crore YoY.

The operating margin was 24%, a slight increase from 23% YoY.

EPS for Q1 was Rs. 14.32, compared to Rs. 12.74 YoY.

Attrition declined to 17.3%.

HCL Technologies:

HCL Technologies reported Q1 revenues of Rs. 26,296 crore, up from Rs. 23,464 crore YoY.

Net profit for Q1 was Rs. 3,531 crore, compared to Rs. 3,281 crore YoY.

Operating profit reached Rs. 5,365 crore, up from Rs. 4,975 crore YoY.

The operating margin decreased to 20% from 21% YoY.

EPS was Rs. 13.02, an improvement from Rs. 12.10 YoY.

The attrition rate stood at 19.5%.

Wipro:

Wipro reported Q1 revenues of Rs. 22,831 crore, up from Rs. 21,529 crore YoY.

Net profit was Rs. 2,886 crore, compared to Rs. 2,559 crore YoY.

Operating profits were Rs. 4,196 crore, up from Rs. 3,858 crore YoY.

The operating margin remained stable at 18% compared to the previous year’s first quarter.

EPS was Rs. 5.23, compared to Rs. 4.68 YoY.

The attrition rate was high at 23.3%.

LTI (L&T Infotech):

LTI reported Q1 revenues of Rs. 8,702 crore, an increase from Rs. 7,644 crore YoY.

Net profit for this quarter was Rs. 1,152 crore, compared to Rs. 1,106 crore YoY.

Operating profits reached Rs. 1,636 crore, up from Rs. 1,494 crore YoY.

The operating margin was 19%, down from 20% YoY.

EPS was Rs. 38.92, a decrease from Rs. 63.06 YoY.

The attrition rate was 17.8%.

Tech Mahindra:

Tech Mahindra reported Q1 sales of Rs. 13,159 crore, an increase from Rs. 12,708 crore YoY.

Net profit for the quarter was Rs. 704 crore, down from Rs. 1,148 crore YoY.

Operating profits were Rs. 1,338 crore, a decrease from Rs. 1,880 crore YoY.

The operating margin was 10%, down from 15% YoY.

EPS was Rs. 7.10, compared to Rs. 11.64 YoY.

The attrition rate was 13%.

L&T Technology Services:

Q1 sales for L&T Technology Services were Rs. 2,301 crore, an increase from Rs. 2,006 crore YoY.

Net profit was Rs. 312 crore, up from Rs. 276 crore YoY.

Operating profits reached Rs. 453 crore, up from Rs. 408 crore.

The operating margin remained stable at 20%.

EPS was Rs. 29.44, compared to Rs. 26.09 YoY.

Tata Elxsi:

Tata Elxsi reported Rs. 850 crore in topline, up from Rs. 726 crore YoY.

Net profit was Rs. 189 crore, compared to Rs. 185 crore YoY.

Operating profits reached Rs. 251 crore, up from Rs. 238 crore YoY.

The operating margin was 30%, down from 33% YoY.

EPS was Rs. 30.32, compared to Rs. 29.66 YoY.

Persistent Systems:

Persistent Systems achieved a topline of Rs. 2,321 crore, up from Rs. 1,878 crore YoY.

Net profit was Rs. 229 crore, up from Rs. 212 crore YoY.

Operating profits reached Rs. 374 crore, up from Rs. 333 crore YoY.

The operating margin was 16%, down from 18% YoY.

EPS was Rs. 29.93, compared to Rs. 27.69 YoY.

Oracle Financial Services Software:

Sales for Oracle Financial Services Software were Rs. 1,462 crore, up from Rs. 1,402 crore YoY.

Net profit was Rs. 501 crore, compared to Rs. 492 crore YoY.

Operating profits reached Rs. 621 crore, down from Rs. 647 crore YoY.

The operating margin was 42%, down from 46% YoY.

EPS was Rs. 57.92, compared to Rs. 56.95 YoY.

The government’s intention to divest its substantial 60.72% stake in IBDI Bank is unlikely to materialize within this fiscal year. Instead, the government is poised to postpone this divestment to the next fiscal year.

As a consequence of these deferred divestment plans, it is improbable that the government will reach its divestment target for the ongoing fiscal year, which has been set at ₹51,000 crore. Nonetheless, the government is banking on increased non-tax revenues, specifically counting on higher dividends from both the Reserve Bank of India (RBI) and public sector banks, to counterbalance any potential revenue shortfall. This approach aims to help the government maintain its fiscal deficit target at 5.9% of the GDP, even if the divestment target is not met.

In the previous fiscal year, the RBI transferred ₹87,416 crore to the government as dividends for FY23. Additionally, the government received an equity dividend of approximately ₹13,800 crore from publicly listed public-sector banks (PSBs) during FY23.

It’s worth noting that the government’s divestment target for FY24, set at ₹51,000 crore, is lower than the target for the previous financial year. The FY23 estimates were revised downward from an initial target of ₹65,000 crore to ₹50,000 crore.

Previously, the government had aimed to initiate financial bids for IDBI Bank by December 2023 and conclude the transaction in the fourth quarter of the current fiscal year. The anticipated proceeds from the government’s sale of its stake in IDBI Bank were expected to exceed ₹15,000 crore, with the financial due diligence process commencing in July.

The Finance Ministry has not responded to inquiries regarding this matter. In FY24, the government had plans to divest its stakes in IDBI Bank, Shipping Corporation of India, BEML, and Container Corporation of India.

It’s important to note that the government had abandoned the strategic disinvestment of Bharat Petroleum Corp. Ltd last year, a move that was projected to generate ₹50,000-60,000 crore. Subsequent efforts to revive this divestment plan were not reinitiated following reviews, with the decision influenced in part by the cooling of oil prices.

Pyramid Technoplast IPO saw strong demand on its first day, with a subscription rate of 1.61 times. The IPO, which opened on August 18 and closes on August 22, offers shares in the price range of ₹151 to ₹166 per equity share with a face value of ₹10 each. An anchor book process conducted on August 17 raised ₹27.55 crore in capital.

The IPO comprises a fresh issue amounting to ₹91.30 crore and an offer for sale (OFS) of ₹61.75 crore at the upper price band. The public issue reserves 30% of shares for Qualified Institutional Buyers (QIBs), 20% for Non-Institutional Investors (NIIs), and 50% for Retail Investors.

The grey market sentiment for Pyramid IPO is positive, as it was fully subscribed on day 1. The Grey Market Premium (GMP) on Saturday stood at +28, consistent with the previous trading sessions. This implies that Pyramid Technoplast shares were trading at a ₹28 premium in the grey market.

Based on the upper end of the price band and the current grey market premium, the estimated listing price for Pyramid Technoplast shares is ₹194, representing a 16.87% increase over the IPO price of ₹166. On Wednesday, the GMP was ₹24, with the lowest recorded at ₹19 and the highest at ₹28.

Pyramid Technoplast IPO received significant interest across all investor categories on day 1. Retail investors oversubscribed their portion by 1.90 times, NII portion by 1.06 times, and QIBs by 1.27 times. The total bids received amounted to 1,21,45,950 shares against the 75,60,400 shares on offer, according to data from the BSE.

Established in 1993 as Suyog Intermediates Private Limited and later rebranded as Aeroflex Industries Limited, the company specializes in manufacturing and distributing environmentally friendly metallic flexible flow solution products. Their product range encompasses various hoses, hose assemblies, connectors, and related fittings, totaling more than 1,700 different SKUs as of March 31, 2023.

Aeroflex Industries is set to launch an IPO, which is a Book Built Issue with a total issue size of Rs 351.00 Cr. The IPO price per share ranges from ₹102 to ₹108, and it will be listed on both BSE and NSE. The IPO will take place from August 22, 2023, to August 24, 2023, with a lot size of 130 shares.

Key IPO Details:

Face Value: ₹2 per share

Total Issue Size: 32,500,000 shares (aggregating up to ₹351.00 Cr)

Fresh Issue: 15,000,000 shares (aggregating up to ₹162.00 Cr)

Offer for Sale: 17,500,000 shares of ₹2 (aggregating up to ₹189.00 Cr)

IPO Type: Book Built Issue IPO

Ownership Details:

Shareholding Pre-Issue: 114,320,370

Shareholding Post-Issue: 129,320,370

Reservation for IPO:

QIB Shares Offered: Not more than 50.00% of the Net offer

NII (HNI) Shares Offered: Not less than 15.00% of the Offer

Retail Shares Offered: Not less than 35.00% of the Offer

IPO Timetable (Tentative):

IPO Opens: August 22, 2023

IPO Closes: August 24, 2023

Basis of Allotment: August 29, 2023

Refund Initiation: August 30, 2023

Shares Credited to Demat: August 31, 2023

Listing Date: September 1, 2023

Cut-off Time for UPI Mandate Confirmation: 5 PM on August 24, 2023

Lot Size:

Minimum Lot Size: 130 shares, requiring ₹14,040.

Promoters:

Sat Industries Limited and Italica Global FZC are the promoters of the company.

Financial Highlights (Restated Consolidated):

As of March 31, 2023:

Assets: ₹213.98 Crore

Revenue: ₹269.48 Crore

Profit After Tax: ₹30.15 Crore

Net Worth: ₹114.09 Crore

Key Performance Indicators:

Market Cap: ₹1396.66 Crore

P/E (x): 40.91

Return on Equity (ROE): 26.43%

Return on Capital Employed (ROCE): 31.91%

Debt/Equity Ratio: 0.39

Earnings Per Share (EPS): ₹2.64

Return on Net Worth (RoNW): 26.43%

Infrastructure (EPC) projects company Vishnu Prakash R Punglia Ltd is launching its IPO from August 24 to August 28, with an equity share price range of ₹94 to ₹99. The anchor investor auction starts on August 23. Investors can bid for a minimum of 150 equity shares and in multiples of 150 thereafter, with a face value of ₹10 per share.

The IPO allocation includes up to 50% for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for Retail Investors, with 3,00,000 equity shares set aside for employees.

The allotment of shares will be finalized by August 31, refunds will be initiated on September 1, and shares will be credited to allottees’ demat accounts by September 4. Trading of Vishnu Prakash R Punglia Ltd shares on BSE and NSE is expected to begin on September 5.

This IPO consists entirely of a fresh issue of up to 31.20 million shares, with no offer for sale (OFS) component. The company plans to utilize ₹58.64 crore of the proceeds for capital equipment purchases and allocate ₹140 crore for working capital needs and other corporate purposes.

Route Mobile has entered an exclusive partnership with Vodafone Idea, a leading telecom company, to deliver AI-powered A2P SMS monetization solutions. Through an AI/ML-driven analytical firewall solution and an SMS Hub on the VIL network, Route Mobile will provide A2P SMS monetization solutions. This involves generating revenue from automated text messages sent from applications to individuals. The collaboration aims to optimize revenue across Vodafone Idea’s network by utilizing Route Mobile’s firewall technology, which detects and blocks unwanted messages while enhancing revenue from legitimate A2P SMS traffic. The partnership extends from the former Idea Cellular network’s use of Route Mobile’s firewall solutions, now expanding to the entire Vodafone Idea network. As a result of this venture, shares of Vodafone Idea and Route Mobile showed slight fluctuations in trading.

Pyramid Technoplast, an industrial packaging firm, began its public share sale on August 18, with the IPO set to close on August 22. The company garnered Rs 27.55 crore from four anchor investors on August 17. The IPO, priced between Rs 151 and Rs 166 per share, aims to raise Rs 139.22 crore to Rs 153.05 crore. In the grey market, Pyramid Technoplast shares are trading at Rs 28, 17% higher than the issue price, allowing unofficial trading until listing.

Investors can bid for a minimum of 90 shares in one lot, with retail investors able to invest a minimum of Rs 14,940 (90 shares) and up to Rs 1,94,220 (1,170 shares). High net-worth individuals can apply for Rs 2,09,160 (14 lots) to Rs 9,86,040 (66 lots). The IPO reserves 30% for qualified institutional buyers, 20% for non-institutional investors, and 50% for retail investors.

The IPO comprises 55 lakh fresh shares and a 37.2 lakh shares offer for sale (OFS), with promoter Credence Financial Consultancy selling its stake. Proceeds will cover debt repayment, working capital, and general corporate needs. Financially, Pyramid Technoplast saw a 21.5% growth in FY23 profits at Rs 31.76 crore, with a 20% revenue increase to Rs 480 crore. EBITDA grew by 18.06% to Rs 49.8 crore, despite a 10 bps margin dip to 10.4%.

The company specializes in polymer-based molded products, mainly serving chemical, agrochemical, specialty chemical, and pharmaceutical packaging needs. PNB Investment Services and First Overseas Capital are the merchant bankers, while Bigshare Services acts as the registrar. Allotment is expected by August 25, with listing on BSE and NSE tentatively scheduled for August 30.

The Indian pharmaceutical industry has demonstrated remarkable resilience and growth in the first quarter of the fiscal year 2024 (Q1 FY24). Despite global uncertainties and challenges, the sector has showcased its enduring potential and adaptability. Here are some key highlights of the industry’s performance during this period:

Solid Revenue Growth: The industry has reported substantial revenue growth in Q1 FY24, driven by a consistent demand for generic medicines and essential pharmaceutical products. Major pharmaceutical companies such as Sun Pharmaceutical Industries and Dr. Reddy’s Laboratories have reported impressive financial results. Sun Pharma’s revenue grew by 15% YoY, reaching INR 10,409 crore, while Dr. Reddy’s Laboratories recorded a 12% YoY growth in revenue, amounting to INR 5,209 crore.

Export Success: Indian pharmaceutical companies have continued to excel in the international market. Exports of generic medicines, APIs, and formulations remained a key driver of the industry’s performance. For instance, Cipla, a leading pharmaceutical player, reported a substantial increase in its international business. Its Q1 FY24 consolidated revenues reached INR 6,052 crore, with the international business segment contributing significantly.

COVID-19 Response: The Indian pharma industry’s role in addressing the ongoing COVID-19 pandemic remains crucial. Companies like Bharat Biotech and Serum Institute of India continued their production of vaccines to meet global demand. Bharat Biotech’s COVAXIN and Serum Institute’s Covishield have been instrumental in vaccination efforts both in India and abroad.

R&D Investments: In pursuit of innovation, the industry has increased its focus on research and development. Biocon Biologics, a subsidiary of Biocon Ltd., achieved a significant milestone in Q1 FY24 by receiving approval from the Drug Controller General of India (DCGI) for its biosimilar Bevacizumab. This demonstrates the industry’s commitment to exploring new therapeutic avenues.

Supply Chain Management: Despite supply chain disruptions caused by the pandemic, the industry managed to maintain its production and supply capabilities. Divi’s Laboratories, a major player in the API segment, reported strong growth in Q1 FY24, with a revenue increase of 37.5% YoY. This exemplifies the industry’s adeptness in overcoming challenges related to logistics and materials sourcing.

Regulatory Compliance: Indian pharmaceutical companies have continued to adhere to stringent quality and regulatory standards. Pharma major Lupin Limited’s Goa manufacturing site received approval from the United Kingdom’s Medicines and Healthcare Products Regulatory Agency (MHRA) following a successful inspection. This underscores the industry’s commitment to maintaining global quality standards.

In conclusion, the Indian pharma industry’s performance in Q1 FY24 paints a picture of resilience, growth, and adaptability. The sector’s ability to sustain revenue growth, expand its global presence, contribute to pandemic response, invest in R&D, manage supply chains, and uphold regulatory compliance reaffirms its pivotal role in providing essential healthcare solutions. As the industry navigates ongoing challenges, it continues to contribute significantly to India’s economy and the global pharmaceutical landscape.A

Bata India, a renowned footwear manufacturer, is currently engaged in discussions with the sportswear giant Adidas to establish a strategic partnership. This collaboration is expected to facilitate Adidas in leveraging Bata India’s extensive retail network to enhance its market presence within India, as per the provided report.

Bata India, which is the flagship subsidiary of Bata BN based in the Netherlands, boasts well-known brands such as Hush Puppies and Scholl. The company operates a network of over 2,050 stores across the nation, according to its most recent annual report. This development was prompted by a recent statement in the company’s annual report, wherein it highlighted its initiative to introduce more than 500 new sneaker styles across its stores to address the growing demand.

Bata India emphasized that sneakers remain a dominant product category for the company, fueled by the rising popularity of athleisure footwear due to sports and adventure events, as noted in its annual report. Despite the news, neither Adidas nor Bata India has issued an immediate response to a comment request from Reuters.

At the National Stock Exchange (NSE), Bata shares concluded at Rs. 1733.55, reflecting a substantial increase of 5.25%.

Mahindra & Mahindra anticipates reaching a peak annual electric vehicle (EV) production of 2 lakh units at its upcoming Chakan plant in Maharashtra between 2027 and 2029, as revealed by the management. The projection is aligned with their goal of having EVs contribute 30% of total volumes by 2030.

Earlier this year, the company received approval from the Maharashtra government to establish a Rs 10,000-crore EV manufacturing facility in Chakan, near Pune. Over the course of 7-8 years, Mahindra’s subsidiary will invest in setting up this plant, facilitating the development and production of their upcoming Born Electric (BE) models.

The first BE model is expected to debut in the market by the end of the following year, with Chakan plant’s production commencement slated 4-5 months earlier. Presently, Mahindra sells the XUV400 electric model from its Nashik plant in Maharashtra and has a substantial market share in the domestic electric three-wheeler segment.

The company’s EV plans are centered around the INGLO EV Platform, encompassing five electric SUV models categorized under two brands: the existing XUV brand for legacy models and the all-new electric-exclusive BE brand.

Mahindra also aims to extend its EV presence globally, targeting advanced markets such as Europe and the UK. Alongside EVs, new pickup trucks, and existing SUVs, Mahindra envisions significant growth in overseas sales, leveraging its established SUV market presence in countries like Australia, New Zealand, and South Africa.

Recently, Mahindra unveiled an international market-oriented pickup concept and an electric version of the Thar SUV called the “Vision Thar.e.” The company also introduced a new visual identity for its forthcoming BE vehicle lineup. As of Wednesday, Mahindra & Mahindra shares closed at Rs. 1570.60 on the NSE, reflecting a 1.54% increase.

In the domain of two-wheelers, the Indian industry has demonstrated a noteworthy growth of 11%, reaching a total of 4.14 million units, compared to 3.72 million units in Q1 FY2023. Within this landscape, motorcycles have played a significant role, contributing to 2.73 million units and exhibiting a remarkable growth of 14%, constituting a dominant 66% share of the total sales. Meanwhile, the scooter market, accounting for 1.29 million units, registered a more modest growth of 7%, representing 31% of the market. Mopeds, on the other hand, encountered a decline of 6%, summing up to 105,261 units and occupying the remaining 3% share.

The industry leader, Hero MotoCorp, dispatched 13,17,250 motorcycles and scooters, encountering a slight drop of 0.82% compared to the previous year’s sales of 13,28,166 units, while maintaining a substantial 32% market share. Similarly, Honda Motorcycle & Scooter India faced a negative trajectory with 9,52,190 units, reflecting a 4.31% decline compared to Q1 FY2023’s 9,95,156 units.

Intriguingly, the four subsequent original equipment manufacturers (OEMs) have showcased robust growth figures. TVS Motor Co recorded a notable growth of 27%, achieving 7,21,479 units (compared to Q1 FY2023’s 565,105 units). Bajaj Auto’s sales soared to 5,42,615 units, showcasing a substantial 73% growth (compared to Q1 FY2023’s 314,418 units). Royal Enfield marked a significant milestone, surpassing 200,000 units with 2,07,171 units sold and growth of 31%. Suzuki Motorcycle India managed to dispatch 1,97,358 units, translating to an 18% YoY increase in wholesales, while India Yamaha Motor’s performance yielded 1,65,077 units with a commendable growth of 17%.

According to the Society of Indian Automobile Manufacturers (SIAM), while the current numbers remain lower than the pre-Covid levels, positive indications arise from the anticipated growth in the rural economy. Price increases stemming from various regulatory norms have historically impacted the two-wheeler industry. The realignment in the FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidy caused a sudden surge in consumer purchases in May 2023, affecting the demand for electric two-wheelers in June.

The utility vehicle (UV) category continues to drive growth in the passenger vehicle (PV) sector, comprising cars, UVs, and vans. The PV segment achieved its highest-ever Q1 wholesale figures with 995,974 units, a 9% YoY increase. UVs played a significant role in this achievement, accounting for 55% of PV sales in the first three months of FY2024, up from 51% in Q1 FY2023.

In contrast, hatchback and sedan sales saw a marginal 1% increase to 413,723 units. Passenger cars now hold a 41.53% market share, down from 45% a year ago. This 4% difference in market share represents the gains of UVs and the losses of passenger cars.

Several factors have contributed to the increased sales, including higher production for popular models with backlogs, improved semiconductor supplies, new market entrants, and positive customer and economic sentiment.

Maruti Suzuki, the market leader, achieved 12% growth with 414,055 units, driven by SUV demand. Car sales slightly declined by 0.60% YoY, while UVs surged by 56%, saving the company. Hyundai Motor India experienced 9.61% growth, driven by a shift towards SUVs and MPVs. Tata Motors and Mahindra & Mahindra also saw growth, while Kia India’s sales remained flat.

SIAM noted that although demand for entry-level PVs decreased, migration to sub-four-metre UVs is substantial, ensuring overall PV segment growth. The organization expressed confidence in the PV segment’s performance, citing rural demand based on positive factors like a promising monsoon and improved farm income.

On August 14th, Havells India made an announcement detailing its exploratory efforts towards establishing a novel manufacturing facility in Ghiloth, Rajasthan. This facility’s intended purpose is the production of refrigerators. As revealed in an official filing with the exchange, the proposed facility is envisioned to possess the capability of manufacturing up to a staggering one million units by the first quarter of the fiscal year 2025-26.

Presently engaged in the practice of outsourcing refrigerator production, Havells aims to channel an investment of approximately Rs 350 crore into this ambitious project. This funding will be sourced from the revenue generated through its other business operations. The company’s motivation behind this strategic move is to harness the advantages of both backward integration and economies of scale.

In the month of July, Havells India released its financial report, disclosing a consolidated net profit of Rs 287.07 crore for the quarter concluding in June. This marked a significant increase of 18 percent when compared to the Rs 243.16 crore figure from the same period in the previous year. Notably, the company also reported a robust year-on-year rise of 13.8 percent in consolidated revenue from operations, with the latest quarter’s revenue standing at Rs 4,833.80 crore as opposed to the prior year’s Rs 4,244.46 crore.

As trading concluded on Monday, Havells India’s shares were valued at Rs. 1275.70 on the National Stock Exchange (NSE), experiencing a decline of 1.93%

Divi’s Laboratories, an Indian pharmaceutical firm, encountered a 49.2% decline in its quarterly earnings, falling short of analysts’ predictions. This decline was primarily attributed to pricing challenges experienced in key markets, particularly the United States, where the company operates as a generic drug manufacturer.

During the first quarter ending on June 30, the company’s consolidated profit amounted to 356 crore rupees, a notable decrease compared to the 702 crore rupees recorded in the same period the previous year. Based in Hyderabad, Divi’s Laboratories specializes in producing active pharmaceutical ingredients (APIs), which are essential chemical compounds within medications that facilitate the desired therapeutic effects.

Additionally, Divi’s Labs engages in contract manufacturing of APIs and intermediates for global corporations. A substantial portion of its revenue, exceeding 60%, is generated through exports to the United States and Europe.

In the preceding months, the company disclosed that it faced pricing constraints for certain generic APIs. Several companies, dealing with post-pandemic challenges, struggled to deplete large inventories of generic drug dosages before their expiration dates. Consequently, this surplus supply negatively impacted both prices and demand for generic APIs.

During the quarter, the company also observed a 6.41% increase in the expenses related to materials consumed in its operations.

As of Monday, Divis Labs’ shares concluded trading at Rs.3730.55, marking a 1.40% rise on the NSE (National Stock Exchange).

AstraZeneca Pharma India Ltd announced a remarkable surge in its after-tax profit, reaching Rs 53.86 crore for the first quarter ending on June 30, 2023. In comparison, the company had achieved a profit after tax of Rs 20.15 crore during the corresponding period of the previous fiscal year, according to a filing with regulatory authorities. The revenue generated from operations in the reviewed quarter was Rs 295.46 crore, marking a notable increase from Rs 232.33 crore in the same period last year. The company noted that total expenses escalated to Rs 232.17 crore, in contrast to the previous year’s figure of Rs 209.14 crore. On the trading front, AstraZeneca’s shares concluded Monday’s session at Rs. 70.77 on the NSE, showcasing a 0.57% rise.

Hinduja group flagship firm Ashok Leyland on Monday said it will fully acquire OHM Global Mobility Pvt Ltd from OHM International Mobility Ltd and will invest Rs 300 crore into the acquired entity.

OHM Global Mobility Pvt Ltd (OHM India) is a wholly-owned subsidiary of OHM International Mobility Ltd UK (OHM UK) and the promoter, Hinduja Automotive Ltd, directly holds 20 per cent and indirectly through other subsidiaries holds 43.23 per cent in OHM UK, Ashok Leyland said in a regulatory filing.

The acquisition is a part of the company’s EV strategy to engage in the business of eMaaS (e-Mobility as a Service). This would likely result in enhancing the operational efficiency and synergy, it added.

The company also proposes to infuse fresh equity or preference capital of up to Rs 300 crore in one or more tranches into OHM India for its business requirements,” Ashok Leyland said.

OHM India has a paid-up share capital of Rs 1 lakh. The cost of acquisition is Rs 10 per share. The acquisition value is at par based on a valuation done by an independent valuer, the filing said.

At NSE, Ashok Leyland shares on Monday closed at Rs.186.85, down

Voltas Ltd., a prominent consumer durables company, announced an 18.7% year-over-year profit increase for the first quarter of the fiscal year ending in June (Q1FY24), reaching ₹129.29 crore. This is compared to a profit of ₹108.88 crore in the same period last year. However, the net profit decreased by 10.2% sequentially from ₹143.92 crore in the fourth quarter of FY23. The company’s consolidated operational revenue surged by 21.4% year-over-year, totaling ₹3,359.86 crores in the Q1FY24, compared to ₹2,768 crore in Q1FY23. The total income for the first quarter was ₹3,429.83 crore, up from ₹2,794.75 crore in the same period last year.

Challenging weather conditions across the country affected the growth of cooling products, with some recovery seen in June 2023. Despite the weather disruptions, the Unitary Cooling Products business achieved a 15% overall volume growth compared to the corresponding quarter of the previous year. Voltas maintains its market leadership, holding the No.1 position in ACs with an exit market share of 20.6% as of June 2023. The company reported that segment revenue increased by 16% to ₹2514 crores, compared to ₹2162 crores in the same quarter last year. Segment results grew by 25% to ₹207 crores, up from ₹166 crores in the corresponding quarter last year, as per an exchange filing by the company.

According to the company’s filing, the revenue from the Electro-Mechanical Projects and Services business for the quarter was up by 49%, reaching ₹679 crores compared to ₹455 crores in the corresponding quarter last year.

On Friday, Voltas’ shares closed at Rs. 828.55 on the NSE, reflecting a decrease of 0.98%.

Surya Roshni, a manufacturer of lighting products and pipes, announced its financial results for the June quarter, displaying a noteworthy twofold surge in consolidated net profit to Rs 59.13 crore. This increase was primarily attributed to a reduction in finance costs. In the corresponding period of the previous year, the company had achieved a consolidated net profit of Rs 22.24 crore.

During the first quarter of the present fiscal year, revenue from operations exhibited a 2% rise, reaching Rs 1,875.27 crore, in comparison to the previous year’s figure of Rs 1,839.89 crore.

According to the company’s earnings statement, the profit after tax reached Rs 59 crore, reflecting a remarkable growth rate of 166%, largely due to the reduction in finance costs. Surya Roshni’s total expenses during this quarter amounted to Rs 1,795.91 crore, marking an increase of 11.46%. In the same period, its total income experienced a 2% uptick, totalling Rs 1,877 crore.

While revenue from steel pipes and strips slightly decreased from Rs 1,504.44 crore to Rs 1,502.80 crore compared to the corresponding quarter of the previous year, revenue from lighting and consumer durables in the June quarter saw a notable increase of 11.46% reaching Rs 373.91 crore from Rs 335.45 crore.

Furthermore, the company managed to reduce its debt by Rs 171 crore, resulting in a debt-to-equity ratio of 0.12x as of June 30.

On the stock market front, Surya Roshni Ltd.’s shares concluded the trading day on Friday with a decline of 4.46 percent, settling at Rs 788.00 apiece on the NSE.

JK Cement Ltd announced a 29.43% decrease in its consolidated net profit, reporting Rs 113.46 crore for the first quarter ending on June 30, 2023. In the same period a year ago, the company had recorded a net profit of Rs 160.79 crore, as stated in a regulatory filing. During the first quarter of FY 2023-24, JK Cement’s total expenses rose by 27.58% to reach Rs 2,598.63 crore.

In terms of revenue, the company experienced a growth of 21.57%, with revenue from operations reaching Rs 2,762.62 crore in the review quarter compared to Rs 2,272.38 crore in the corresponding period of the previous year. The total income of JK Cement for the June quarter amounted to Rs 2,794.22 crore, showcasing a 22.16% increase over the same period from the previous year.

On the preceding Friday, JK Cement’s share price was Rs. 3250.65, marking a decrease of 2.74% on the BSE.

Aurobindo Pharma, a major pharmaceutical company, reported a 22.5% decrease in consolidated net profit, amounting to Rs 540.40 crore, for the April-June quarter. This compares to a net profit of Rs 697.60 crore during the same period the previous year. The company’s revenue from operations reached Rs 6,850.50 crore, marking a 10% increase from the previous fiscal quarter’s Rs 6,236 crore. EBITDA saw a nearly 23% rise to Rs 1,151.4 crore, up from Rs 936.5 crore in the base quarter. The EBITDA margin expanded to 16.8%.

The company’s research and development (R&D) expenditure was at Rs 387.6 crore, accounting for 5.7% of total revenues, lower than the previous quarter’s 6.3%. In the US formulations segment, a growth of 11.2% was observed, driven by the launch of 15 products in the quarter, constituting 48.2% of consolidated revenues. Aurobindo Pharma filed 12 ANDAs, including one injectable product, with the US Food and Drug Administration during the quarter and received final approvals for 19 ANDAs.

Revenue from European formulations grew by 18.6%, comprising 26.8% of the total mix, while growth markets, accounting for 7.1% of revenue mix, grew by 12.9%. Additionally, the Active Pharmaceutical Ingredients (API) segment grew by 14% year-on-year, contributing to 15% of overall revenues in Q1.

By the end of the week, Aurobindo Pharma’s shares closed at Rs. 863.15 on the NSE, reflecting a 1.21% decrease.