Fabindia will raise up to Rs.4,000 crore via IPO, which will include gifting of 7.75 lakh shares by promoters to farmers and artisans. As per the DRHP, the fresh issue size will be Rs.500 crore while the OFS will be worth Rs.3,500 crore. A total of 250.51 lakh shares will be offered as part of the OFS. The 7.75 lakh shares will be gifted by the two promoters Bimla Nanda and Madhukar Khera. Company will use the fresh issue proceeds to redeem the NCDs and prepay other loans taken. This will be India’s largest ethnic brand IPO.
The 10 most valuable companies on the Nifty by market cap saw value erosion of Rs.2.53 trillion as Nifty fell by 4% last week. Reliance lost Rs.40,974 crore while TCS and Infosys lost a combined Rs.109,498 crore. Among the other losers, HDFC Bank lost Rs.13,563 crore, SBI Rs.4,864 crore, ICICI Bank Rs.10,812 crore Hindustan Unilever Rs.9,939 crore. In addition, Bajaj Finance fell Rs.27,654 crore, HDFC Rs.22,004 crore and Bharti Airtel Rs.14,087 crore. It was a combination of higher inflation and pre-budget uncertainty.
HDFC Capital, a 100% subsidiary of HDFC, raised $1.22 billion towards HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3). This fund is purely focussed on affordable housing. HDFC Capital is the real estate PE arm of HDFC group. Combined with H-CARE-1&2, the total corpus for affordable housing now stands at $3 billion. This fund will provide flexible funding across the lifecycle of affordable and middle-income housing projects including early-stage funding. It is also talking to leading global investors to infuse capital.
In an interesting move, Amazon has written to the independent directors of Future Retail that Samara Capital was interested and committed to invest Rs.7,000 crore for buying all retail assets. The directors had sent an SOS to Amazon to infuse Rs.3,500 crore immediately to bail out Future Retail. FRL needs to pay Rs.3,500 crore to lenders by 29-January. The Future group and Amazon have been locked in a bitter legal tussle after Amazon dragged FRL to SIAC over the Rs.24,713 crore merger deal with Reliance Retail.
MobiKwik may have put off its IPO after the disappointing listing of Paytm but MobiKwik still expects to close FY22 with 100% growth in top line revenues. However, MobiKwik continues to be evasive about the timing of its IPO. In FY21, its loss had narrowed to almost one-third at Rs.111 crore. Incidentally, MobiKwik has been doubling revenues each year since the last 4 years. However, its GMV had fallen sharply last year which is not a good signal. The BNPL business has grown 22X and payments business has grown 3X yoy.
ICICI Bank reported 25% higher net profits in Q3 at Rs.6,194 crore, much higher than analyst estimates. Net interest income rose 23% at Rs.12,236 crore while the non-interest income grew 25% at Rs.4,899 crore. NIMs at 3.96% compared favourably with 3.67% in the year ago quarter. Standalone provisions were sharply lower by 27% at Rs.2,007 crore. Asset quality improved by 69 bps at 4.13% but still remains fairly high in absolute terms. Domestic loan portfolio grew 18%, retail loans 19% and SME loans grew 34%.
Zerodha plans to focus on mutual funds as the channel to target the next 100 million customers in India into the capital markets fold. However, mutual funds need to be reimagined according to Zerodha. What is more interesting is their recruitment pitch where they have shown an allergy to candidates who use the word “Synergy” too often. Clearly, Zerodha wants to look at candidates who can de-jargon mutual funds as a product to the Indian investors rather than a Smart Alec who takes umbrage in picturesque jargon.
Vodafone Idea reported net loss of Rs.7,230 crore for the Dec-21 quarter. On a yoy basis, the loss has widened from Rs.4,532 crore. Top line revenues fell 11% at Rs.9,717 crore. The ARPU increased marginally from Rs.109 to Rs.115 but way below the Rs.151 recorded by Jio Platforms. Vodafone Idea had got some temporary relief from the new telecom package that provided moratorium on payment of AGR dues and interest component. However, the gross total debt at Rs.198,980 crore remains a sore thumb for VI.
