SEBI announced the introduction of optional T+1 rolling settlement, effective from 01st Jan 2022. This was after SEBI received requests from various stakeholders to shorten the settlement cycle. To begin with, flexibility will be offered to either opt for T+1 or T+2 cycle. However, there would be no netting between T+1 and T+2 settlements. India had shifted from the T+3 settlement to the T+2 settlement cycle in 2003 and there has been no change after that. Companies shifting in or out of T+1 will need 1 month notice.
Nuvoco Vistas, the cement manufacturing unit of Nirma group, reported consolidated net profits of Rs.114.28 crore for the Jun-21 quarter. Revenues stood at Rs.2,203 crore. The company reported healthy EBITDA margins of 24%. Nuvoco Vistas had just listed last month and had a disappointing listing on the bourses. Even the subscription of 1.71 times was below expectations. The company operates cement units predominantly in East India and is the 5th largest cement manufacturer in terms of installed capacity.
It was not a great day for the Indian rupee, which plunged by 32 paisa to close at Rs.73.42/$. There was heavy dollar demand from corporates as well as the dollar strengthening in the overseas market. Not just the rupee, but most Asian currencies were weak against the US dollar. However, the risks are expected to be capped due to exporters selling dollars at Rs.73.70/$. Foreign portfolio investors or FPIs were also net sellers on Monday to the tune of Rs.589 crore and that also added to pressure on the rupee dollar rate.
The Cairn Energy controversy may finally end with the Cairn UK favourably disposed towards the $1 billion settlement offered by Indian government. Cairn CEO committed that Cairn UK would withdraw all legal cases in various US and French courts as per the terms of the scrapping of retrospective tax legislation. Indian government offered to return the money seized which has been accepted by institutional owners of Cairn UK. Cairn is likely to distribute $700 million out of this money as special dividend to shareholders.
VST Tillers Tractors rallied 9% on Tuesday to touch levels of Rs.2,876. This was after VST Tillers launched the VST range of tractors and power tillers in Southern Africa. This sharp rally was despite the indices being lower on Tuesday. The Export Trading Group or ETG will distribute VST tractors, tillers and power reapers across South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia. This will introduce the complete range of VST tractors and power tillers in the Southern African market in an aggressive way.
IRCTC continued its rally on Tuesday and closed the day at Rs.3,295. The stock has gained nearly 42% in the last month and half. It is now worth Rs.50,000 crore in market cap and ranks among the top-100 stocks in terms of market value. IRCTC is already ranked ahead of PI Industries and SAIL. IRCTC provides catering and ticketing services for the Indian Railways. It had recently approved a 1:5 stock split to enhance liquidity and public participation in the stock. It is also likely to benefit from the private participation in railways.
BYJU’s announced its 8th major acquisition of the year as it acquired online test preparation platform, Gradeup. Byju’s already has a presence in the JEE and NEET exam preparation but this acquisition allows them to go deeper in the field covering 150 exams across 25 categories. During the year, Byju’s shelled out $2.2 billion for these acquisitions. In recent deals, Byju’s paid $950 million to buy Aakash Education Services and followed up with big acquisitions like Great Learning as well as digital reading platform, Epic.
India Post Payments Bank or IPPB announced a strategic partnership with LIC Housing Finance to provide home loan products to the 4.50 crore customers of IPPB. The IPPB currently operates through 650 branches and 136,000 banking access points. While IPPB will be responsible for sourcing the loans, LIC Housing will be responsible for credit underwriting, processing and disbursal of home loans. The IPPB has an unmatched last mile network and can be a great way to reach out to the rural and semi-urban Indians.