Azad Engineering Ltd. raised Rs 220.8 crore via the placement of shares with anchor investors, a day ahead of the IPO opening on December 20, 2023. Some of the prominent FPI investors include Abu Dhabi Investment Authority, Eastspring, Nomura and Natixis as well as domestic investors like Nippon MF, ICICI Pru MF, Kotak MF, Tata Mutual Fund, Bandhan MF, HDFC Life, Bajaj Allianz Life, Max Life, etc. A total of 42,13,731 shares were allotted to anchor investors at price of Rs524 per share with 45.33% allotted to mutual funds.
The Competition Commission of India (CCI) cleared Nirma’s acquisition of majority stake in Glenmark Life Sciences (GLS). After the deal, Nirma will have a majority stake in Glenmark Life Sciences. Recently listed Glenmark Life Sciences is into the development, manufacturing, and sale of APIs (active pharmaceutical ingredients) and CDMO. CCI is the watchdog that ensures that M&A deals do not create monopolies or duopolies to the detriment of a competitive market. Nirma is into detergents, chemicals, and also cement.
LTI Mindtree announced a strategic collaboration with Microsoft to introduce cutting-edge AI-powered employee engagement applications. This will form a part of the LTI Mindtree innovative canvas. AI suite of AI offerings and solutions. These Gen-AI applications will redefine enterprise effectiveness. The AI engine will use Microsoft Azure OpenAI and leverage Azure Cognitive Search to enable a range of AI-led capabilities. Generative AI is next big thing in the world and is likely to add nearly $1 trillion to India’s GDP.
The share of agriculture in India’s GDP fell to just 15% in FY23, from a level of 35% in the year 1991. This is largely due to the frenetic growth in the industrial and services sectors. This is not just specific to India; the share of agriculture in GDP is falling across the world. In the last few years, agriculture in India has been growing at an average rate of 4%. Some of the measures undertaken to improve the productivity of agriculture—offering higher MSPs to farmers, robust infrastructure, and reform schemes—have all helped.
The stock of SpiceJet rallied 29% in two days after market reports that SpiceJet may acquire Go First. SpiceJet had filed with the exchange that it had expressed interest in the RP of Go First. The next step is to undertake due diligence of Go First. At the same time, SpiceJet will also be raising nearly $270 million to consolidate its financial position. Other global players have also shown interest in buying Go First. SpiceJet has been facing a cash crunch for the last several quarters, so the question is funding the buy.
India Glycols surged 11% to Rs781 on heavy volumes. India Glycols won an ethanol supply contract worth Rs 1,164 crore from oil marketing companies (OMCs) and Reliance Industries. India Glycols was allocated a supply target of 165.50 million litres of ethanol under the Ethanol Blended Petrol Programme (EBPP) over the next year until October 2024. India Glycols is one of the leading ethanol manufacturers in India, with a presence in bio-based specialties, performance chemicals, potable spirits, biopharmaceuticals, and biotechnology.
Banks in India have been aggressively raising funds through the CD (certificate of deposit) route as liquidity remained tight in the system, with the RBI infusing Rs2.01 trillion on Monday. The liquidity deficit in the banking system widened to over Rs2 trillion on the back of advance tax outflows. Advance taxes and GST payouts are expected to soak up Rs4 trillion of funds, tightening the money market sharply. The RBI has deliberately maintained liquidity at a deficit to ensure smooth and seamless transmission of rate cuts.
The yen fell sharply on Tuesday after the Bank of Japan (BOJ) maintained its ultra-loose monetary policy. While the loose policy was expected, the BOJ did not even hint that any change was coming. The dollar and euro climbed 1% on the yen. Japan has been one of the few developed countries to still maintain a dovish monetary policy. The weak yen is to the advantage of global investors, as carry trade on the yen will now continue to be profitable. The carry trader borrows in cheaper currency and invests in higher-yield assets.