Morning Market Pulse

Unlisted Share News:

• B2B ecommerce unicorn Udaan is in talks with M&G Prudential to raise $80-100 Mn, potentially increasing M&G's stake beyond its current 15%. Founded in 2016, Udaan previously raised $340 Mn in December 2023, led by M&G Prudential with participation from Lightspeed Venture Partners and DST Global.
• Vivriti Capital raised $25 million from the Asian Development Bank through a senior secured debt facility to support its green finance initiatives, including funding the EV ecosystem and renewable energy projects.
• Shiprocket's operating revenue rose 20.8% to INR 1,316 Cr in FY24, while net losses widened by 74.4% to INR 595 Cr due to a one-time restructuring impact of INR 244 Cr from acquired entities.
• Swiggy has raised its platform fee to INR 10, a 43% increase from the previous INR 7, following similar moves by rival Zomato. Since its introduction in April 2023, the fee has surged by 400%.
• The Central Consumer Protection Authority (CCPA) has sent notices to 11 companies, including Blinkit, Zepto, and Meesho, for violating metrology norms under the Legal Metrology Act. Swiggy Instamart, MyGlamm, and Snapdeal are also among the recipients.

Market Overview:

• Sensex fell 139 points to 80,082, while Nifty declined by 37 points to 24,436 after a volatile session.
• Midcap Index gained 302 points to 56,476, outperforming the broader market, while Nifty Bank rose by 18 points to 51,239.
• Market Breadth: Advancers outpaced decliners with an advance-decline ratio of 3:2.

Sectoral Highlights:

• Nifty Pharma: Declined for the 3rd consecutive session, with Alkem Labs and Lupin leading losses.
• Nifty Energy: Down for the 3rd session, dragged by NTPC and Power Grid.
• Nifty Metal: Lost ground for the 3rd session, with Steel Authority and APL Apollo Tubes seeing significant declines.
• Nifty Auto: Fell for the 2nd session, mainly weighed down by Mahindra & Mahindra (M&M).
• Nifty Bank: Closed flat, with minimal movement.
• Nifty IT: Snapped its 3-session losing streak, becoming the top sectoral gainer, led by Coforge and Persistent Systems.
• Nifty PSU Bank: Reversed a 2-session losing streak, with Indian Overseas Bank and Bank of Maharashtra performing strongly.
• Nifty FMCG: Ended a 5-session losing streak, with Varun Beverages and United Breweries leading gains.

Top Gainers:

• Bajaj Finance: Rose nearly 5% after strong Q2 results.
• Coforge: Surged 11% following strong Q2 results.
• Persistent Systems: Jumped 11% due to solid earnings.
• Manappuram Finance: Gained 5% on high trading volumes.

Top Losers:

• TVS Motor: Dropped 7% following weaker-than-expected Q2 results.
• BHEL: Fell over 4% after a block deal saw 0.5% of equity changing hands.
• Syngene: Ended with minor cuts after posting in-line Q2 earnings.

Stock Highlights:

• Firstsource Solutions: Hit a 52-week high, surging over 10%.
• Paytm: Rose over 9% after NPCI approved onboarding new UPI users.
• Can Fin Homes, GMDC, and Amber Enterprises reacted positively to Q2 earnings reports.
• SRF: Gained nearly 3% on positive management commentary after its Q2 results.

IPO Corner:

Waaree Energies IPO subscribed 79.44 times on Final Day

QIB-215.03x

NII-65.25x

Retail-11.27x

Employee-5.45x

Total-79.44x

GMP?95%

Deepak Builders and Engineers IPO subscribed 41.54 times on Final Day

QIB-13.91x

NII-82.47x

Retail-39.79x

Total?41.54x

GMP?22%

IPO Market Roars Past ?1 Trillion Mark in 2024

The IPO market in India has hit a major milestone in 2024, with total mobilisation crossing ?1 trillion, a feat achieved only once before in 2021 (?1.19 trillion). Afcons Infrastructure's ?5,430 crore IPO has played a crucial role in pushing the market past this threshold. The year is far from over, and several high-profile IPOs are lined up, including Swiggy (?11,700 crore), NTPC Green Energy (?10,000 crore), and Vishal Mega Mart (?18,000 crore), setting the stage to break the 2021 record.

The small and medium enterprise (SME) sector has also contributed significantly, with 215 companies raising a whopping ?17,700 crore—65% higher than last year’s record. This surge is being driven by robust domestic liquidity and impressive post-listing performances.

Among the 64 mainboard IPOs so far, only 12 stocks dipped below their issue price on listing day, and currently, only 15, including Hyundai, are trading below their IPO price. With strong demand and a promising pipeline of new offerings, the Indian IPO market is on a roll, and the momentum shows no signs of slowing down.

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