In what is another feather in India’s macro cap, the unemployment rate for individuals aged 15 and above has fallen to 3.1% in 2023. This is the lowest level in the last 3 years, as per a report put out by the National Sample Survey Organisation (NSSO). It was 3.6% in year 2022 and 4.2% in 2021. Even the Labour Force Participation Rate (LFPR) in for these people has moved up in 2023 to 56.2% from 52.8% in 2022 and 51.8% in 2021. This comes on the heels of the GDP growth for Q3FY24 coming in at a robust level of 8.4%.
If you consider the period from the COVID bottom of March 2020, nearly 70% of the small caps are now multi-baggers. These are the stock whose prices are a multiple of where they started off. Nearly 30% of these small caps have outperformed the Nifty 50 index with only 10% of the small caps giving negative returns to investors in this period. The top-20 performers delivered average CAGR of 76% since the lows of March 2020. Interestingly, the last time equity risk premium was so low was just before the 2008 crash.
Matrix Gas and Renewables raised Rs350 crore in a pre-IPO round. There were several marquee investors participating in the pre-IPO round. Matrix Gas is a Gensol Group company and is the fastest-growing green hydrogen infrastructure developer and natural gas aggregator. The company will be commissioning green hydrogen production plants on EPC and build-own-operate (BOO) basis, plus hydrogen electrolyser plants. Matrix is yet to decide on the IPO timing, but this amount will be reduced from the final IPO figure.
Adani Group EBITDA for FY24 is likely to cross $9.5 billion; driven largely by infrastructure segments like cement, green energy, power, and airports. The group had already reported $9.5 billion for calendar 2023, so the FY24 data would be still better. As of the close of FY24, the net debt of Adani group is likely to rise to $26 billion, up from $21 billion last year. However, that would still mean a net debt to EBITDA ratio of less than 3X, which is relatively comfortable. The group has recovered rapidly from the Hindenburg fiasco.
Big Basket, the online grocery owned by the Tata group, plans an IPO in the year 2025. Prior to that its primary focus is to turn profitable. Big Basket is part of Tata Digital. The IPO is likely to be a combination of a fresh issue and an offer for sale (OFS). The company plans to close FY24 with revenues of Rs12,000 crore, 35% higher yoy. For now, Big Basket does not have plans of entering the broader e-commerce space. It will remain a grocer and hawk food products only. It is also focusing on omnichannel approach.
According to a report by Spark PWM, Tata Sons could fetch a valuation of nearly Rs8 trillion ($96 billion) in an IPO, that is likely in the next 18 months. Tata Sons is the group holding company that has a significant stake in companies like TCS, Tata Motors, Tata Steel, Tata Power, etc. Some of the big levers of value could arise from the new age businesses incubated by Tata Sons like its foray into EV batteries, semiconductors etc. The listing of Tata Sons could be value accretive for several Tata stocks having holdings in Tata Sons.
Kedaara Capital and Partners Group divested 12.6% stake in Aavas Financiers for Rs1,369 crore via open market transactions. Kedaara and Partners are the promoters of Aavas Financiers. The trades happened on the NSE. While Kedaara divested 58.39 lakh shares Partners group sold 41.57 lakh shares in Aavas. The sale happened around Rs1,370 per share. Among the major buyers to absorb the liquidity, SBI Mutual and Amansa acquired a total of 86.59 lakh shares, representing 11% stake in Aavas. The stock fell by over 5%.
According to the AMFI, mutual fund distributors will be allowed to receive trail commission from AMCs on assets switched by an investor from one distributor to another. AMFI will allow such transfers after a cooling period of 6 months. The payment of commission to the transferee distributor will be based on the lower of the commission rate of the transferor and the transferee distributor. However, AMFI has made it clear that, other than trail commission, no other payments of any kind (like incentives) will be allowed.
