Paytm has finally announced details of its proposed Rs.18,300 crore IPO. The IPO will open for subscription on 08-November and close on 10-November. The price band for the IPO has been set at Rs.2,080-2,150 a share. This will be the largest IPO in Indian primary market history. This IPO is expected to take the valuation of Paytm close to $20 billion. The original IPO plan of Rs.16,600 crore was enhanced after the OFS component rose from Rs.8,300 core to Rs.10,000 crore. Paytm made FY21 losses of Rs.1,701 crore.
FSN E-Commerce Ventures (Nykaa) mopped up Rs.2,396 crore from 174 anchor investors a day ahead of its IPO opening on 28-October. A total of 2,12,96,397 shares were allocated to the anchor investors at a price of Rs.1,125 per share, which is the upper end of the IPO price band. Major global anchors included Blackrock, Fidelity, Government of Singapore, T Rowe Price, JPM, Aberdeen, CLSA and Goldman Sachs. Key domestic anchors included SBI MF, HDF MF, ICICI Pru MF, Axis MF, UTI MF, Birla MF, Tata MF etc.
While the government may have averted a power crisis in the short term, CRISIL has noted that still about 10% of coal-fired thermal power plants were at risk of shutdowns and outages due to erratic coal supplies. In addition, high international prices for imported coal remain a concern. Due to steep global prices, the imports of non-coking coal has fallen by more than 20% in recent months. Out of the total power capacity of 209 GW, CRISIL noted that about 20 GW of power capacity was vulnerable to coal supply volatility.
There was hardly a surprise that Maruti Suzuki reported a 66% slump in Q2 net profits at Rs.487 crore due to an unprecedented increase in commodity prices. In addition, the semiconductor shortage was also responsible for this fall in profits. On a yoy basis, the material costs soared 80%. Maruti noted that it had more than 2 lakh pending customer orders for CNG vehicles in the light of the spurt in the price of petrol and diesel. However, Maruti managed to hold its exports at a healthy 59,408 units, the best in a quarter.
ITC reported 10.09% increase in net profits at Rs.3,764 crore in the Sep-21 quarter. This was led by an all-round recovery across segments. Total revenues from operations were up 12.9% at Rs.14,844 crore for the Sep-21 quarter. The good news was that the revenues and the profits showed growth traction even on a sequential basis. Cigarette revenues grew 10.5% at Rs.6,220 crore while non-cigarette revenues were up 2.9% at Rs4,044 crore. Pre-tax profits on cigarettes stood at Rs.3,762 crore and continues to dominate.
US based Salesforce has leased 7 lakh SFT of space in Hyderabad for a period of 6 years. The leased area is spread across 682,768 SFT and comes with 911 parking slots. Salesforce specializes in CRM. The floors have been leased at the rate of Rs.71 per SFT which works out to a monthly rental of Rs.4.80 crore. There is also a rental escalation clause of 15% after every 3 years. Demand for new leases improved significantly due to robust hiring plans of IT-BPM and BFSI and Hyderabad has been at the forefront of this realty boom.
Future Retail asked a Delhi court to quash the decision by the Singapore International Arbitration Centre (SIAC), keeping the $3.4 billion sale of Future’s retail assets to Reliance Retail in limbo. As of now the SIAC is hearing objections from Amazon on this subject. Amazon has accused Future group of breach of contract, something Future group has denied. Future Retail has now requested the Court to intervene and quash the decision of the SIAC. The Rs.28,300 crore merger of RRVL and FEL is held up due to this case.
Larsen & Toubro reported a 67% fall in net profit at Rs.1,820 crore for the Sep-21 quarter. However, that was more because the profits last year were boosted by other income. Revenues were up by 12% at Rs.34,773 crore with significant contributions from the infrastructure, IT and the hydrocarbons business segment. In the previous Sep-20 quarter, L&T had reported exceptional gains of Rs.10,650 crore from the sale of its electrical goods division to Schneider Electric. Total EBITDA was up 20% yoy at Rs.3,995 crore.
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