Bharat FIH, a subsidiary of Foxconn, filed DRHP with SEBI for its proposed Rs.5,004 crore IPO. It will comprise of a fresh issue of Rs.2,502 crore and an OFS of Rs.2,502 crore. Bharat FIH is India’s largest electronic manufacturing service (EMS) provider with 15% market share. It supplies directly to OEMs. Bharat FIH is largely focused on outsourcing mobile phone manufacture, design and services. It is the largest manufacturing and assembly partner to Xaomi of China. It is also a beneficiary of the PLI scheme.
Amazon.com had decided to go for the jugular by directly taking on the Enforcement Directorate (ED). It has questioned the role of the ED in the ongoing legal between Amazon and Future group over the merger with Reliance Retail. Amazon submitted that top executives of Amazon had been summoned by the ED and had been probed on topics not connected to the Amazon-Future dispute. Amazon had also alleged that ED was asking for wider information. ED is also probing preferential vendor treatment by Amazon.
Adani group plans to raise around $1 billion to refinance debt of Mumbai’s International Airport (MIAL). The list of banks that will arrange the loan include Barclays, JP Morgan and Deutsche bank. It may be recollected that earlier in 2021 Adani Airport Holdings had taken control of MIAL by buying out the 50.5% stake of the GVK group. At MIAL, the Adani group plans to build a complete airport ecosystem of the future which will include business, leisure as well as entertainment. GVK group had been deep in debt.
The minutes of the MPC announced on 22nd December revealed that the RBI had taken a cautious stand on rates and accommodative stance due to fears of the Omicron crisis escalating. The RBI governor had also batted for a dovish approach till the concerns over Omicron variant were fully addressed. The MPC had announced the monetary policy on 08-December. The MPC has also noted that domestic slack was still quite high. MPC voted to keep the rates at 4% and maintain the accommodative stance of the policy.
SEBI imposed a penalty of Rs.1.50 crore on Karvy Computershare, currently called KFin Technologies. This penalty pertains to Karvy redeeming its units in Taurus Mutual Fund based on privileged information on the likely default of Ballarpur Industries. Karvy was the registrar in both the cases giving them access to privileged information. Back in Feb-17, Karvy Computershare had redeemed all its units in Taurus Liquid Fund and the Taurus Ultra Short Term Bond Fund making unlawful gains of Rs.1.20 crore in the process.
SEBI chairman, Ajay Tyagi, called for greater disclosure and transparency in pricing of new age IPOs. He underlined this requirement to protect the interests of retail investors in IPOs. Tyagi called for a better explanation and justification of the pricing formula adopted by the new age digital companies. This risk was highlighted by the sharp fall in the stock of Paytm post listing, which resulted in huge losses to retail and small investors. The average number of retail applications per IPO has gone up to 1.56 million in FY22.
Even as Paytm has been struggling well below its IPO issue price, it got its first buy rating from a global investment bank. Morgan Stanley initiated coverage on Paytm with a target price of Rs.1,875. This implies an upside of 43% from current levels. Morgan Stanley has pointed to the attractive risk-reward ratio of Paytm at this price. It is also confident of Paytm breaking into operating profits by FY25. Earlier, Dolat Capital had given a buy call on Paytm with price target of Rs.2,500. Paytm plunged up to 40% post IPO.
The board of Deepak Nitrite approved raising funds to the tune of Rs.2,000 crore via Qualified Institutional Placement (QIP). These funds would be raised either through equity or any other equity linked instrument. It is not yet clear if the funds will be raised in tranches or in one go. Deepak Nitrite is a specialty chemicals company with focus on basic chemicals, fine & speciality chemicals, performance products and phenolics.
