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Zomato IPO Subscribed 38.25 Times on Final Day of Bidding – Top Indian Market News

Zomato IPO subscribed 38.25 times on final day of bidding

The Rs 9,375 crore initial public offering (IPO) of Zomato Limited was subscribed 38.25 times on the final day of bidding. The IPO has received bids for 2,751.25 crore equity shares against the issue size of 71.92 crore shares. Retail investors have subscribed 7.45 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 32.96 times and 51.79 times, respectively, against their reserved portions. 

HDFC AMC Q1 Results: Net profit rises 14% YoY to Rs 345.45 crore

HDFC Asset Management Company (AMC) reported a 14% YoY increase in net profit to Rs 345.45 crore for the quarter ended June (Q1 FY22). Net profit has increased by 9.3% when compared to the previous quarter. Its revenue from operations rose 23% YoY (or 0.8% QoQ) to Rs 507.1 crore during the same period. The company’s Quarterly Assets Under Management (QAAUM) rose 17% YoY to Rs 4,16,900 crore in Q1. HDFC AMC holds a 12.6% market share in QAAUM of the mutual fund industry.

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One97 Communications files DRHP for Rs 16,600 crore IPO

One97 Communications Ltd, the parent company of digital payments platform Paytm, has filed a Draft Red Herring Prospectus (DRHP) for its IPO with market regulator SEBI. The company aims to raise Rs 16,600 crore via the public issue. The fresh issue of shares (of the face value of Rs 1 each) aggregates to Rs 8,300 crore. Existing shareholders of the firm will offload their stake worth Rs 8,300 crore. The company will use the IPO proceeds to strengthen its payment ecosystem and drive new business initiatives and acquisitions.

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JMC Projects secures orders worth Rs 1,624 crore

JMC Projects (India) Ltd has secured new orders worth Rs 1,624 crore. The work includes a road project in Ghana, South Africa, and a few building projects in India. The company’s order inflow has reached Rs 4,659 crore in the current financial year (FY22). JMC Projects (India) is a subsidiary of Kalpataru Power Transmission Ltd. It is one of the leading civil construction and infrastructure EPC companies in India.

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Tata Power partners with HPCL to set up EV charging stations at petrol pumps

Tata Power has signed an agreement with Hindustan Petroleum Corp Ltd (HPCL) to provide electric vehicle (EV) charging stations at HPCL’s petrol pumps across the country. Under the agreement, Tata Power will provide EV charging infrastructure at HPCL’s retail outlets for EV users. People can use the Tata Power EZ Charge mobile application to utilise charging facilities. Tata Power Company owns a network of over 500 public chargers in petrol pumps, metro stations, and shopping malls in 100+ cities in India.

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L&T Finance Q1 Results: Net profit rises 20% YoY to Rs 178 crore

L&T Finance Holdings Ltd reported a 20% YoY increase in net profit to Rs 178 crore for the quarter ended June (Q1 FY22). Net profit has declined by 33% when compared to the previous quarter. Its revenue from operations declined by 7% YoY (or 8% QoQ) to Rs 3,140 crore during the same period. L&T Financial Services is a leading non-banking finance company (NBFC) that offers farm equipment finance, two-wheeler finance, micro-loans, etc. It is a subsidiary of Larsen & Toubro (L&T).

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NIIT partners with Sushant University to offer future-ready programs

NIIT Limited has partnered with Gurugram-based Sushant University to offer their upcoming batches of Bachelors in Computer Application (BCA) and BTech in Computer Science specialization in Banking & Finance and StackRoute – Full Stack Product engineering, respectively. The partnership aims to deliver future-ready programs to improve learning and employability for fresh graduates. The programs would empower them with the necessary skills to become ‘Day-1 job-ready industry professionals’.

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DEN Networks Q1 Results: Net profit falls 29% YoY to Rs 41 crore

DEN Networks Ltd reported a 29% YoY decline in net profit to Rs 41.15 crore for the quarter ended June (Q1 FY22). Net profit has increased by 11% when compared to the previous quarter. Its revenue from operations increased by 0.6% YoY to Rs 302 crore during the same period. DEN Networks distributes and promotes television channels through an extensive digital cable distribution network in India. It also offers over-the-top (OTT) entertainment and broadband services.

Tatva Chintan Pharma Chem IPO subscribed 4.5 times on first day

The Rs 500 crore IPO of Tatva Chintan Pharma Chem was subscribed 4.51 times on the first day of bidding. The IPO has received bids for 1.46 crore equity shares against the issue size of 32.61 lakh shares. Retail investors have subscribed 8.24 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 1.14 times and 50%, respectively, against their reserved portions.

To learn more about the IPO, click here.  

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Editorial

Reliance Industries: The Media Industry Giant

As a stock market participant, you may have often examined products and services that are readily available around all of us, and checked whether it was manufactured or offered by a listed company. It is a great trait that makes our stock market journey more exciting. Most of the products that you use on a daily basis could be made by companies that you have invested in (or may invest in the future). 

Most of us are aware of the rich heritage and massive growth of India’s largest conglomerate— Reliance Industries Limited (RIL). The group has excelled in the fields of oil, petrochemical, textile, organised retail, telecommunication, and digital services. There would not be any household in India that hasn’t used a product or service of Reliance. However, not many are aware that RIL has significant control over the media networks we consume daily. Let us find out how.

RIL’s Entry Into India’s Media & Entertainment Sector

RIL’s Mukesh Ambani has a knack for turning (almost) everything he touches into gold. He has ensured in providing the best products and services to all consumers in India and abroad and earning their trust. The Reliance Group had already established a strong presence in India’s media and entertainment sector through Reliance Entertainment and Reliance MediaWorks. However, these were pet projects of Anil Ambani, who was very unlucky in scaling up his business empire. 

Almost a decade ago, Mukesh Ambani and his conglomerate decided to try their luck in the media industry. They approached the best in this field— Network18 Media & Investments Limited (also known as Network18 Group). In 2012, RIL unveiled a very complex agreement to raise funds to help Network18 reduce its debts and expand. On the other hand, the network would provide content for the company’s 4G telecommunications business. After intense negotiations, Reliance Industries announced the strategic takeover of Network18 in 2014 for around Rs 4,000 crore. This entity has now become the largest media company in our country. RIL currently holds 75% in Network18 & Investments.

Subsidiaries of Network18 

Network18 Media & Investments owns a majority stake in TV18 Broadcast. This company operates news channels in several languages under the News18 brand. It has a franchise agreement with CNN Worldwide for CNN-News18. The main business channels viewed by Indians, such as CNBC-TV18, CNN-IBN, and CNBC Awaaz, are operated by TV18 Broadcast under a franchise agreement with US-based NBC Universal.

Viacom18 Media is another subsidiary of the Network18 group. It is the parent company of around 50 channels, which operate through the brands of Colors, MTV, Nickelodeon, VH1, and Comedy Central. To meet the changing requirements of consumers, Viacom18 has launched an over-the-top (OTT) platform known as Voot. It has also produced many award-winning Bollywood movies over the years.

Web18 Software Services is the digital media and e-commerce arm of the group. The website used by a large number of stock market participants, Moneycontrol.com, is a part of Web18. The e-commerce platform BookMyShow and news website Firstpost are also operated by the company. They also own the license for Forbes India.

Cable and D2H Companies:

DEN Networks Limited is engaged in the distribution and promotion of television channels through digital cable distribution networks in India. The company also offers cable TV, over-the-top (OTT) entertainment, and broadband services. The firm serves approximately 1.3 crore households across 13 states in our country.

Hathway Cable & Datacom Limited (HCDL) provides cable television, internet, and allied services. The company has 2 main segments— Broadband and Cable Television. It offers digital cable TV services, including standard definition (SD) and high definition (HD) cable TV channel services. It also provides home and business broadband services. In addition, HCDL operates several shopping and entertainment channels. The company offers its cable TV services across 350 cities and towns in India. 

These companies were initially acquired by Reliance Industries in 2018 and later merged into Network18 as part of a consolidation process in 2020. Thus, DEN Networks and HCDL are subsidiaries of Network19. Both companies posted a very promising increase in revenues and profits for the quarter ended March (Q4).

Financial Performance of Network18

After posting huge losses in the past four years, Network18 & Investment Ltd reported a net profit of Rs 32.27 crore for the financial year ended March 31, 2021 (FY21). It posted a 9-fold year-on-year (YoY) jump in consolidated net profit to Rs 205.80 crore in Q4 FY21. However, revenue from operations fell slightly by 3.40% YoY to Rs 1,414.70 crore during the same period. There has been a steady growth in subscription and ad-based revenue from their TV channels and digital media platforms.

Over the past 5 years, the company’s revenue has grown at a CAGR of 11.04%, whereas the industry average stood at 6.21%. Network18 has been able to secure a market share of 54.2%. 

RIL’s ‘Control’ Over Indian Media

Around two years ago, Mukesh Ambani announced that Reliance Industries owned a total of 72 television channels, which were viewed by over 80 crore Indians. This represents ~95% of the total TV-viewing universe. Currently, Network18 has emerged as the top digital media player in the country with around 69 crore views per month. Close to 10 crore people use its websites or apps (including Moneycontrol, Firstpost, Voot, and News18.com) every month. Through its other subsidiaries and offerings, it is clear that Network18 has immense reach across the country. Apart from Network18, all apps under Jio Platforms are also widely used by consumers.

According to the Broadcast Audience Research Council (BARC), Network18 is the #1 news network in India in terms of viewership. Other prominent Indian news media companies, such as NDTV, News Nation, India TV, and News24, are indebted to Mukesh Ambani and his associates. As per reports, they have infused hundreds of crores into these media firms through instruments such as Optionally Fully Convertible Debentures (OFCDs). The OFCDs can later be converted into shares as per the discretion of the investor.

While most people oppose the idea of losing independent journalism to large corporations, Reliance Industries seeks to benefit from its strategic investments in media houses. RIL has more or less used this large platform to portray its brand image, which has surely played a pivotal role in its business growth. It has supported the launch of Reliance Jio and other digital services, while driving more customers into their ecosystem. Let us look forward to seeing how Network18 plans to further expand and grow in the media sector. Moreover, let us witness how it would cater to the future objectives of RIL.

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Market News Top 10 News

India’s WPI Inflation Eases to 1.22% in December – Top Indian Market News

India’s WPI inflation eases to 1.22% in December

Wholesale inflation in India fell to the lowest level in four months, mainly due to a decline in the prices of food articles. Inflation based on the Wholesale Price Index (WPI) fell to 1.22% in December from 1.55% in November. The WPI was at 2.76% in December 2019. The WPI Food Inflation fell from 4.27% in November to 0.92% in December, as vegetables and pulses became cheaper.

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Passenger vehicle sales up 13.59% in December: SIAM

According to data released by the Society of Indian Automobile Manufacturers (SIAM), the total sales of domestic passenger cars increased by 13.59% to 2.52 lakh units in December 2020, as compared to 2.22 lakh units in December 2019. Two-wheeler sales rose by 7.42% YoY to 11.27 lakh units in December 2020. However, the latest figures from SIAM show that automobile exports from India declined by 18.87% to 38.65 lakh units in 2020. Overseas shipments of vehicles in the Jan-Dec period in 2019 stood at 47.63 lakh units.

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HFCL Q3 Results: Net Profit rises 86% YoY to Rs 85 crore

HFCL Ltd reported an 86.73% YoY increase in net profit to Rs 85.11 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 45.58 in the corresponding period in FY20. HFCL’s revenue rose by 49.68% YoY to Rs 1,277.48 crore during Q3 FY21. HFCL (or Himachal Futuristic Communications Ltd) is a fiber optic cable manufacturing company.

Adani Enterprises wins Rs 1,838-crore highway project from NHAI in Kerala

Adani Enterprises Ltd (AEL) has won a Rs 1,838-crore highway project from the National Highways Authority of India (NHAI) in Kerala. The project, granted under the Hybrid Annuity Mode (HAM), is part of the Bharatmala Pariyojna of the Central Government. The 40-km road project pertains to six-laning of the Azhiyur-Vengalam section of NH-17 (New NH-66) in Kerala. With this, Adani Group has a total of six NHAI road projects under HAM in Chhattisgarh, Telangana, Andhra Pradesh, Madhya Pradesh, and Kerala.

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Indigo Paints to launch IPO on January 20; price band fixed at Rs 1,488-1490

Indigo Paints will launch its initial public offering (IPO) on January 20. The price band of the IPO has been set at Rs 1,488-1,490 per share. It comprises fresh issuance of equity shares aggregating to Rs 300 crore and an offer for sale (OFS) of up to 58.4 lakh shares by Sequoia Capital India Investments IV,  SCI Investments V, and promoter Hemant Jalan. The three-day IPO will conclude on January 22.

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DEN Networks Q3 Results: Net profit rises 238% YoY to Rs 65 crore

DEN Networks Ltd reported a 238.69% year-on-year (YoY) increase in consolidated net profit to Rs 65.57 crore for the quarter ended December (Q3). It had posted a net profit of Rs 19.36 crore during the corresponding period in FY20. The firm’s revenue increased by 7.58% YoY to Rs 342.18 crore in Q3 FY21. DEN Networks is a cable distribution company in which Reliance Industries (through its subsidiaries) holds a majority shareholding. 

Dixon Technologies’ board to meet on Feb 2 to consider stock split plan

Dixon Technologies Ltd announced that its board will meet on February 2 to consider the sub-division of equity shares of the company. It will also consider and approve financial results for the third quarter ended December 31, 2020. Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. 

As per a report from Economic Times, Padget Electronics (a wholly-owned subsidiary of Dixon Technologies) will begin assembling phones for HMD Global at its factory in Noida. HMD Global is the maker of Nokia and Motorola smartphones. The report also states that LED TVs of brands including Nokia, Intex, Lloyd, and Toshiba will be manufactured at Dixon Tech’s Chittor factory.

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Bharat Dynamics and Thales partner to manufacture STARStreak Air Defence System in India

Bharat Dynamics Ltd (BDL) and Thales have signed a Teaming Agreement to work in partnership on the STARStreak Air Defence system, with the support of the Governments of India and the UK. BDL will become a part of the STARStreak global supply chain. This would provide the opportunity for exporting the system to existing and future STARStreak Air Defence customers. The agreement would also allow BDL to offer the STARStreak missile system to the Indian Armed Forces, with a minimum of 60% indigenous content, under the ‘Make in India’ programme.

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L&T receives multiple orders in domestic market

Larsen & Toubro (L&T) announced that its construction arm has received multiple orders across its business segments in the domestic market. The orders fall under the “significant” category, which ranges between Rs 1,000 crore and Rs 2,500 crore. The firm’s buildings and factories business has won an order from a reputed developer to construct an office space in Mumbai. It has also won an order from the Haryana Government to construct a Medical College at Jind.

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Indian Hume Pipe Company receives LoA for water supply project from Govt of Karnataka

Indian Hume Pipe Company Ltd has received a letter of acceptance (LoA) for an order worth Rs 198.80 crore from Minor Irrigation and Ground Water Development Division- Kalaburgi, Karnataka Government. The order consists of filling tanks in Kalaburgi (South) Taluka by lifting Water from Bennethora Reservoir for ground-water development & drinking water purpose on a turnkey basis. The contract also includes operation and maintenance services for 5 years. The project is to be completed within 24 months.

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Garden Reach Shipbuilders signs $12.7 million deal with Government of Guyana

Garden Reach Shipbuilders & Engineers (GRSE) has signed a contract with the Government of Guyana to build a passenger and cargo ship for $12.7 million (~Rs 92.75 crore). GRSE is one of India’s leading shipyards, located in Kolkata. It builds and repairs commercial and naval vessels.

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