A day after the Fed decided to keep its language deliberately ambiguous, the Indian indices did a huge bull run. The Sensex was up 958 points at 59,957, just short of the 60,000 mark. The markets interpreted the wordings of the Fed as largely dovish. Even the Nifty gained 276 points at 17,823. The boost came after a sharp rally in the Dow futures and also on optimism built around the prime minister’s visit to the United States. The Sensex has now rallied a full 5,000 points in just the last 28 sessions with A/D of 4:1.
Bharti Airtel’s Rs.21,000-crore rights issue opens for subscription on 05-Oct and closes on 21-Oct. The record date for determining eligibility of rights would be 28th September, and last cum-rights day will be 26th September. Airtel fixed the rights price at Rs.535, a discount of 26% on the closing price of Rs.726. The rights entitlement (RE) will be credited to demat accounts by 04-Oct. Those not wanting to exercise the rights can sell the REs through the special window. REs are expected to trade at a premium of 40-60%.
With real estate index at all-time highs and gaining 22% in just 3 days, real estate developer, Casagrand, laid out plans to raise Rs.800 crore next year via the IPO route. The proposed IPO will lead to 15% stake dilution. Apollo Global and KKR are investors in Casagrand. The IPO is estimated to value Casagrand at around Rs.5,000-6,000 crore. Casagrand is among the top five developers in South India. With the funds, it will acquire land parcels worth Rs.10,000 crore this year. Sales are targeted at Rs.3,750 crore for FY22.
For the month of Jul-21, Jio and Airtel added 65 lakhs and 19 lakh users, respectively, but Vodafone Idea again lost 14 lakh subscribers as per TRAI data. The total wireless subscribers base grew by 0.51% in July. The growth essentially came from Urban India, with rural India growth almost flat. As of end-July, there were a total 121 crore telephone subscribers across India. The telecom relief package announced by the government should hopefully come as a relief for the telecom sector, and to Vodafone Idea in particular.
The rally in JBF Industries continued as it was locked on 5% upper circuit for the second straight day. This was following news reports that Reliance Industries may look to take over the company along with CFM Asset Reconstruction Company. JBF has already gained close to 15% in the last 3 trading sessions. JBF, a chemical manufacturer, has been trading in the T2T segment on the BSE. Reliance has, however, denied reports of any specific bid for JBF, while JBF has only informed exchanges about an offer from CFM ARC.
In the midst of the commodity rally, Coal India hit a 52-week high, touching Rs.170 on 23rd September. In the last 1 month, Coal India rallied 27% after it reported a likely price hike. Despite opening up the coal sector to private commercial mining, the virtual dominance of Coal India continues. Coal India has envisaged 1 billion tonne coal production by FY24, to domestically meet the entire coal demand for the Indian economy. A sharp recovery in power demand has resulted in a 64% spike in its EBITDA in Q1.
Adani Enterprises incorporated Adani Digital Labs Private Limited as a wholly owned subsidiary. The idea is to create an omni-channel under Adani Digital Labs to enable customers to digitally communicate with all the B2B and B2C business lines of the Adani Group. This is likely to create more clear demarcations of value. Adani Enterprises is the holding company of the group and also acts as the initiator of new and high risk businesses for the group. Adani is one of the 4 business groups to have Market Cap above $100 billion.
In the entire Zee saga, Subhash Chandra may have had the last laugh as he avoided losing his crown jewel to a foreign fund. Even as INVESCO and OFI Global of China were lobbying hard for the exit of Punit Goenka, privately held Sony Pictures came to the rescue. The merger of Zee and Sony Pictures will also entail a cash infusion of $1.40 billion into the merged entity by Sony Pictures. Chandra also gets the option to hike his stake from 4% to 20%. For Sony, the Zee combination helps them take on Disney Hotstar.