Morning Market Pulse

Global Indices

(As of 7:30 AM on 16/09/2024)

Market Updates:

1. NSE Clearing Holidays: NSE has declared September 16 and September 18 as clearing holidays. Consequently:

Trades on September 13 and September 16 will be settled on September 17.

Trades on September 17 and September 18 will be settled on September 19.

2. Cash Market Turnover: NSE's cash market turnover has hit ?200 lakh crore from January to August 2024, surpassing the ?163 lakh crore recorded for the entire year of 2023, representing a 104% increase.

Unlisted shares news:

1. Tata Motors Finance and Tata Capital Merger: The Competition Commission of India (CCI) has approved the merger of Tata Motors Finance Ltd (TMFL) into Tata Capital Ltd (TCL). Tata Motors will acquire a 4.7% stake in the merged entity, aligning with its goal to focus on emerging technologies and products.

2. UPI operator NPCI net profit tops Rs 1000 crore in FY-24: NPCI reported a 42% increase in its total revenue to Rs 3279 and a 37% increase in its net profit to Rs 1134 crore in FY-24.

3. Gensol and Matrix Green Hydrogen Valley: Matrix Gas & Renewables Ltd in collaboration with Gensol Engineering Ltd., has secured the project to establish India’s first Green Hydrogen Valley in Pune. The project will include a green hydrogen production plant operating on a Build Own and Operate (BOO) basis and is supported by the Department of Science & Technology (DST) and facilitated by National Chemicals Laboratories (NCL). A 20-year firm offtake agreement is in place for supplying green hydrogen to the specialty chemical sector.

4. Peak XV and Others Divest ?1,600 Crore Stake in MamaEarth’s Parent: Peak XV (formerly Sequoia Capital), Stellaris Ventures, Sofina Ventures, and Fireside Ventures have sold shares worth ?1,600 crore in Honasa Consumer Limited, the parent company of MamaEarth. The bulk deal involved the sale of 3.24 crore shares at an average price of ?495.48 per share. ICICI Prudential Life and Morgan Stanley purchased shares worth ?262 crore. MamaEarth's market cap stood at ?16,046 crore, with shares reaching an all-time high of ?547.

5. Whatfix Secures $100 Million in New Funding Round: SaaS-based digital adoption platform Whatfix has raised nearly $100 million in a funding round led by Sweet Nectar Investments (Warburg Pincus) and SoftBank. The Bengaluru-based company issued Series E compulsory convertible preference shares to raise Rs 296.74 crore in primary capital and secured an additional Rs 530 crore in secondary funding. The round increased Sweet Nectar’s stake to 8.94% and SoftBank’s to 15.51%. Whatfix, valued at approximately Rs 6,871 crore ($820-830 million), plans to use the funds for business expansion.

6. Onsurity Closes $45 Million Series B Round Led by Creaegis: Employee healthcare platform Onsurity has raised $45 million in a Series B round led by Creaegis, with additional investments from existing backers International Finance Corporation, Quona Capital, and Nexus Venture Partners. The funds will support the launch of new digital offerings and tech enhancements, aiming to expand its coverage to 5 million lives by 2026. Onsurity has onboarded over 8,000 companies, impacting 1.5 million lives across India. The company’s valuation post-funding is around Rs 1,032 crore ($124 million).

7. ProcMart's GMV Soars 3X to Rs 621 Cr in FY24; Profit Drops 56%: ProcMart, a B2B procurement marketplace, saw its gross merchandise value (GMV) triple to Rs 621.5 crore in FY24, reflecting a substantial 200% revenue increase. Despite this growth, the company's profit plummeted by 56.5% to Rs 73 lakh, largely due to a 216.3% rise in material costs. Operating cash flows turned positive at Rs 15.81 crore. The company's EBITDA margin decreased to 1.33%, and its return on capital employed (ROCE) fell to 5.45%.

Corporate Updates:

1. Tata Motors has partnered with Tata Power Renewable Energy to install 200 fast-charging stations across India, focusing on electric commercial vehicles (CVs) as the demand for EVs grows rapidly.
2. Affle has strengthened its intellectual property portfolio by securing its 36th patent in the US. This patent, titled “Computer-implemented method for partner pixelling for user identification”, will enhance Affle’s capabilities in digital advertising and user identification.
3. L&T Semiconductors Technology is exploring 3-4 more acquisitions after its successful purchase of SiliConch. L&T has also partnered with IBM to develop advanced processors, signaling its aggressive expansion in the semiconductor space.
4. Bharti Airtel has joined hands with Italy’s Sparkle to gain access to the Blue-Raman Submarine Cable Systems, which will connect India to Italy. This move strengthens Airtel’s global network infrastructure and connectivity capabilities.
5. Tega Industries is projecting a 15% compound annual growth rate (CAGR) over the next 3-5 years, with plans to introduce new products and leverage its operating capacity to sustain growth.
6. Ford Motors has also announced its return to India, focusing on manufacturing electric vehicles for export at its Chennai facility. This move, part of its global “Ford+ Growth Plan,” will benefit from Tamil Nadu’s booming EV ecosystem and strategic location, allowing Ford to tap into Southeast Asian markets.

IPO Corner:

3 Main Board IPOs to debut today in the market with Bajaj Housing Finance to list at a premium of 100% according to the Dalal street.

GMP as per 7:00 AM (16/09/2024)

An interesting data check at how Banks are minting Money in Bajaj Housing Finance IPO

Expected Listing Price: 140

Current IPO (Open for subscription)

Arkade developers raises 122.4 crores from 9 anchor investors ahead of its IPO, a total of 95.6 lakh shares allocated at a price of 118 per equity share. The highest share was cornered by BNP Paribas Financial Markets ODI at 20.43% of the anchor book, followed by Intuitive Alpha Investment Fund PCC- Cell 1, Saint Capital Fund and 6 others.

Northern Arc Capital bags 229 crores from 15 anchor investors ahead of its IPO, a total of 87 lakh shares allocated at a price of 263 per equity share. Quant Mutual Fund, SBI Life Insurance, Singularity Equity Fund, Goldman Sachs were some of the marquee investors in the anchor book.

LG eyes D-Street debut for India unit at $1.5 billion valuation, picks banks:The consortium includes: Citi, Bank of America, JP Morgan, and Morgan Stanley. LG Electronics India plans to raise between $1-1.5 billion (?8,400-12,600 crore) through the IPO.

Swiggy Eyes IPO Filing This Week: Swiggy, the Indian food delivery giant backed by SoftBank, is reportedly preparing to file for its initial public offering (IPO) this week. The company is aiming to raise over $1 billion through the offering. The IPO's size and timing are still being finalized, pending approval from India's Securities and Exchange Board of India (Sebi). Swiggy, based in Bengaluru, partners with over 150,000 restaurants across India.