In Q3FY24, India witnessed a decline in its current account deficit (CAD) to $10.5 billion, constituting 1.2% of GDP. This figure marks a decrease from the previous year’s corresponding period, where the CAD was $16.8 billion. The repercussions of the substantial trade deficit recorded in October, amounting to $31.5 billion, were evident in the Q3 figures. However, the situation is expected to ameliorate in the fourth quarter, with the overall deficit nearing neutrality in January and February. The cumulative current account deficit for the initial nine months totaled $31 billion, instilling optimism for a CAD below 1% for FY24 in the stock market.
Olympus Capital Asia plans to sell 9.8% stake in Aster DM Healthcare. The deal is likely to be to the tune of Rs1,953 crore. Currently, Olympus owns nearly 19% stake in Aster DM Healthcare and the sale is likely to take place in the price range of Rs400 to Rs437 per share. In this case, the lower end of the price range represents a discount of 8.5% on the last closing price while the upper range is exactly around the last close for the stock. In another major block deal, Stanchart plans to sell a big block of shares in CDSL Ltd.
Bharti Hexacom Ltd, a subsidiary of Bharti Airtel, announced an offer for sale through the IPO route. The central PSU (Telecommunications Consultants India Ltd) will offer half its 30% stake in Bharti Hexacom at Rs4,275 crore. Bharti Hexacom currently provides telecom services in Rajasthan and North East. The price band for the IPO is set in the range of Rs542 to Rs570 and a total of 7.50 crore shares are being offered in the range. The IPO will open on April 03, 2024 and close on April 05, 2024 with minimum lot of 26 shares.
The one story that appears to be going strong in India is that the sales of luxury homes is picking up rapidly in India. Here, sales of luxury homes are priced at Rs50 crore and above. The value of such homes sales grew by 51% yoy in 2023 to Rs4,319 crore. According to data put out by JLL, a total of 45 such deals were reported, predominantly across Mumbai and Delhi as compared to 29 homes sold in 2022 worth Rs2,859 crore. The sales of such luxury homes were also driven by the special waiver offer on registration charges.
On Wednesday, March 27, 2204, the RBI proposes to conduct 6-day variable repo rate (VRR) auctions to the tune of Rs75,000 crore. The variable reverse repo rate or VRR auction is normally conducted by the RBI when there is a liquidity deficit in the financial markets. In March, the liquidity deficit stood at Rs1.23 trillion, largely due to the pressure of the advance tax payouts ahead of the deadline of March 15, 2024. The RBI accepted only about 65% of the overall bids put in by banks at a cut-off yield to maturity of 6.69%.
Avanse Financial Services, the NBFC specializing in education loans, announced that it had raised primary capital of Rs1,000 crore to bankroll business growth. This funding round was led by the Abu Dhabi based Mubadala Investments with participation from Avendus PE Investment Advisors. This will enable Avanse to consolidate its position in the education financing segment by creating unique customer experiences and achieving sustained profitable growth. Avanse had an AUM of Rs12,147 crore as of December 2023.
One of India’s leading low-cost retail brokers, Angel One, launched a qualified institutional placement (QIP) issue at a floor price of Rs2,555 per share. That represents a 7% discount to the market price. Angel was recently in the news as sponsor for the IPL 2024. The fund raising will augment financial flexibility to grow the business and harness emerging opportunities. Angel had seen its average daily orders grow from 5 lakhs in FY20 to 54 lakhs in FY24. Angel has also gained from the customer base moving beyond metros.
Adani Ports SEZ acquired Gopalpur Port Ltd (GPL) from Shapoorji Pallonji group, at an EV of Rs3,080 crore. It will buy 56% stake from SP group and 39% stake from Orissa Stevedores Ltd (OSL). Gopalpur is located on the Odisha coast with capacity to handle 20 MMTPA. It is a deep draft, multi-cargo port, that can handle a diverse mix of dry bulk cargo, like iron ore, coal, limestone, ilmenite, and alumina. Gopalpur Ports has over 500 acres of land on lease for development, with more land on lease for future capacity expansions.