Tag: Equitas

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DMart’s Net Profit Rises 24% YoY in Q3 – Top Indian Market News

Avenue Supermarts Q3 Results: Net profit rises 24% YoY to Rs 553 crore

Avenue Supermarts Ltd (DMart) reported a 23.71% YoY increase in consolidated net profit to Rs 553 crore for the quarter ended December (Q3 FY22). Net profit rose 32% compared to the previous quarter. Its revenue from operations rose 22.2% YoY (or 18% QoQ) to Rs 9,218 crore during the same period. The company added 17 stores in Q3 FY22, taking the tally to 263 stores.

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Oberoi Realty’s sales bookings jump 2-fold to Rs 1,965 crore in Q3

Oberoi Realty Ltd reported an over two-fold jump in sales bookings to Rs 1,965 crore for the quarter ended December (Q3 FY22). The realty company sold 371 units in Q3, compared to 234 units in the corresponding quarter last year. During the first nine months of FY 2021-22, Oberoi Realty’s sales bookings more than doubled to Rs 2,964 crore.

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Mahanagar Gas hikes CNG-PNG prices for second time in 3 weeks

Mahanagar Gas Ltd (MGL) has decided to hike prices of compressed natural gas (CNG) and piped natural gas (PNG) with effect from Saturday midnight. The basic price of CNG has been increased by Rs 2.50 per kg and domestic PNG by Rs 1.50 per standard cubic meter (SCM) for the Mumbai Metropolitan Region (MMR).

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Maruti Suzuki lines up its biggest annual product launch

Maruti Suzuki India Ltd (MSIL) has lined up more product launches in 2022 than it has done ever during a year in the past. The automaker plans to launch more than half a dozen products in 2022. Half of these products will be in the fast-growing SUV space, and the rest in its core area of small cars. In the first nine months of FY22, MSIL has produced 1.164 million vehicles, compared to 939,000 units in the same period last year. 

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Equitas Holdings to divest its stake in subsidiary ETPL ahead of merger with Equitas SFB

Equitas Holdings Ltd will divest its entire stake in subsidiary Equitas Technologies Pvt Ltd (ETPL) as part of the requirement for the merger with Equitas Small Finance Bank (ESFB). As part of the Reserve Bank of India’s licensing conditions, the boards of Equitas Holdings and ESFB had in July 2021 approved the scheme of amalgamation between them. According to the scheme, all assets held by Equitas Holdings (including its investments in ETPL) have to be transferred to ESFB.

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CSB Bank MD & CEO takes early retirement; lender to set up panel to find successor

C V R Rajendran, the Managing Director & Chief Executive Officer of CSB Bank, has decided to take early retirement on health grounds. He will continue as MD & CEO till March 2022. His current three-year term was supposed to end on December 8, 2022. The Board of Directors of CSB Bank has decided to constitute a search committee to identify and evaluate candidates, either internally or externally, for the position of MD & CEO.

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Wonderla Holidays temporarily shuts Bangalore Park for two weekends

Wonderla Holidays Ltd has announced that the Bangalore park operations will be temporarily shut for the two weekends i.e., January 8 & 9 and 15 & 16. The move comes after the Government of Karnataka announced strict restrictions to contain the Covid-19 pandemic.

USFDA rejects Biocon, Vitaris’ application for Insulin Aspart

Biocon Biologics, a subsidiary of Biocon Ltd, said the US Food & Drug Administration (USFDA) has not approved an application for Insulin Aspart filed by its partner Viatris Inc. The USFDA has issued a complete response letter (CRL) for the biologics license application (BLA) for Insulin Aspart. Biocon Biologics said it will respond to the CRL to satisfy the FDA’s requests.

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DLF launches luxury residential project in New Delhi

DLF Home Developers Ltd. (DHDL) and GIC, Singapore’s sovereign wealth fund, will develop over 900 luxury apartments at Delhi’s Moti Nagar. The revenue potential of the project is Rs 4,000 crore. DLF’s ONE Midtown luxury residential project will have luxury condominiums with two, three, and four-bedroom residences. DHDL is a wholly-owned subsidiary of DLF Ltd.

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Market News Top 10 News

TVS Motors to Invest Rs 1,200 crore in Future Tech and EV – Top Indian Market News

TVS Motors to invest Rs 1,200 crore in future technologies and EV

TVS Motor Company Ltd has signed a Memorandum of Understanding (MoU) with the Govt of Tamil Nadu to invest Rs 1,200 crore in future technologies and electric vehicles (EVs) over the next four years. The investment would be for the design, development, and manufacturing of new products and capacity expansion in the EV space. TVS Motor said the signing of the MoU was in line with its firm belief in the potential of the state in terms of human resources, infrastructure, and overall business environment. 

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NCLAT stays Rs 200 crore penalty imposed by CCI on Maruti Suzuki

The National Company Law Appellate Tribunal (NCLAT) has stayed the Rs 200 crore penalty imposed by the Competition Commission of India (CCI) on Maruti Suzuki India Ltd. However, NCLAT directed the automaker to deposit 10% of the total penalty amount with the NCLAT’s Registrar within three weeks. It will take up the appeal filed by Maruti Suzuki for admission on December 15.

On August 23, 2021, CCI had imposed a penalty of Rs 200 crore on MSIL for allegedly restraining competition with its policy of controlling the discounts that dealers could offer customers. 

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NPCI Bharat BillPay onboards Tata Power to facilitate electricity bill payments

NPCI Bharat BillPay has onboarded Tata Power on its platform ClickPay— making it the first power company to go live on the newly launched platform. Tata Power will generate the ClickPay link and share it with customers, which will redirect them to the payment page. This initiative will enable more than seven lakh customers of Tata Power to pay their electricity bills in a hassle-free and seamless manner. 

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KIOCL signs pact with Truman Engineering to set up heat recovery coke oven plant

KIOCL Ltd has entered into an agreement with Tauman Engineering Ltd for setting up a heat recovery coke oven plant at a contract price of Rs 185 crore. The plant will have a production capacity of 1,80,000 tonnes per annum (TPA). The company has signed a tripartite agreement with Tauman Engineering and CSIR-Central Institute of Mining and Fuel Research for providing the technology and know-how. 

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Alembic Pharma gets USFDA approval for formoterol fumarate inhalation solution

Alembic Pharmaceuticals Ltd has received final approval from the US Food & Drug Administration (USFDA) for its generic version of formoterol fumarate inhalation solution. The drug is indicated for the treatment of constriction of airways in patients with chronic obstructive pulmonary disease. According to IQVIA data, the inhalation solution had a market size of $310 million (~Rs 2,308 crore) for twelve months ended September 2021.

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TCS expands partnership with Swiss Re to build cloud-based digital workplace

Tata Consultancy Services (TCS) has expanded its strategic partnership with Swiss Re to help them build a more social and open digital workspace. As part of this initiative, TCS will support the reinsurance company to develop its future-ready, cloud-based digital workplace using Microsoft technologies. It will enable Swiss Re to accelerate the innovation pipeline within the organisation.

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Future Retail employees urge Supreme Court to clear asset sale in Amazon dispute

The Future Retail Employee Welfare Association has filed a special leave petition in the Supreme Court (SC), seeking to intervene in the current proceedings of the company’s dispute with Amazon over its 2019 deal with Reliance. The association has stated that the interests of nearly 27,000 employees of Future Retail have been affected by the orders passed in arbitral proceedings. Amazon is trying to block the sale of Future Group’s retail, wholesale, and logistics business to Reliance Industries Ltd (RIL) for Rs 24,713 crore for allegedly breaking contracts.

In other news, the SC has deferred the hearing in the legal tussle between Amazon and Future Group to December 8. This is on account of the inconvenience caused by the bulky documents placed on record by the parties.  

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Nxtra by Airtel launches new hyperscale data centre park in Chennai

Bharti Airtel Ltd’s subsidiary Nxtra launched its new 38 megawatts (MW) hyperscale data centre park in Chennai on Tuesday. The centre is fully integrated with Airtel’s global submarine cable network, providing an end-to-end secure connectivity solution to hyperscalers. Nxtra claims to operate the largest network of data centres in India. It aims to invest Rs 5,000 crore by 2025 to increase its data centre capacity three times to over 400 MW. 

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Greaves Electric Mobility inaugurates its largest EV production facility in Tamil Nadu

Greaves Cotton Ltd’s e-mobility arm, Greaves Electric Mobility, announced the opening of its largest EV production facility at Ranipet in Tamil Nadu. Spread across 35 acres, the plant is located in the industrial centre of Tamil Nadu. It will serve as an e-mobility hub for both domestic and export markets. The manufacturing facility with additional assembly lines will produce up to 10 lakh vehicles a year. 

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Equitas SFB partners with HDFC Bank to offer co-branded credit cards

Equitas Small Finance Bank (SFB) has partnered with HDFC Bank to launch its new co-branded credit cards. This strategic partnership draws on HDFC Bank’s strengths as India’s leading issuer of credit cards and superior customer engagement to extend best-in-class services to Equitas SFB’s customer base. The credit card is available in two categories— Excite Credit Card (offers a credit limit of Rs 25,000-2 lakh) and Elegance Credit Card (provides a credit of over Rs 2 lakh).

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SpiceJet brings back Boeing 737 Max; customers to enjoy free onflight WiFi

SpiceJet Ltd has brought back Boeing 737 MAX aircraft into operation after a gap of around two-and-a-half years. Earlier this month, the airline had entered into an agreement with Boeing to settle outstanding claims related to the grounding of 737 Max aircraft and its return to service. SpiceJet has started flying two Boeing 737 Max planes in India, and 11 more such aircraft will start flying in India in the next 15-20 days. The domestic carrier will also offer free onboard WiFi on the Boeing 737 Max.

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Market News Top 10 News

India’s WPI Inflation Jumps to 1.48% in October – Top Indian Market News

India’s WPI inflation at 8-month high of 1.48% in October

The inflation based on India’s Wholesale Price Index (WPI) rose to an eight-month high of 1.48% in October. The WPI inflation was at 1.32% in September and zero percent in October of last year. According to data released by the Ministry of Commerce and Industry, the prices of manufactured products have increased sharply. The prices of food items rose 6.37%, after growing 8.17% in September.

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Finance Ministry invites bids from actuarial firms for valuing LIC ahead of IPO

The Finance Ministry invited bids from actuarial firms for arriving at the embedded value of Life Insurance Corporation (LIC), ahead of its stake sale. The embedded value is the sum of the net asset value and the present value of future profits of a life insurance company. Actuarial firms provide statistical and risk-management services to insurance companies. The government plans to sell a minority stake in LIC and list it on the stock exchanges. It has already appointed Deloitte and SBI Caps as pre-IPO transaction advisors.

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Initial bids for BPCL privatisation closes today

The process of receiving initial bids for the privatisation of state-run Bharat Petroleum Corporation Ltd. (BPCL) will end today. The government has been trying to offload its entire 52.98% stake in BPCL, which is the country’s second-largest oil refining and marketing company. BPCL’s privatisation is essential for the government to meet its record Rs 2.1 lakh crore goal for disinvestment in 2020-21.

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Equitas SFB launches unique savings account for women

Equitas Small Finance Bank, on Monday, announced that it has launched a new product that is aimed at women. The product, termed as ‘Eva’, will provide a 7% interest on the savings account of women. The bank’s program also offers free health check-ups and unlimited teleconsultation with doctors and mental health experts. Equitas SFB has also announced that Indian woman cricketer, Smriti Mandhana, will be its new Brand Ambassador.

Indian economy may be recovering faster than anticipated: Oxford Economics

The global forecasting firm Oxford Economics has stated that the Indian economy is seen to be recovering faster than expected. It also stated that the Reserve Bank of India may soon arrive at an end-of-the-rate easing cycle. The firm has said that inflation is expected to average significantly above 6% in the fourth quarter of the current financial year. 

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Wipro enters into partnership with SNP SE

Wipro Limited said it has partnered with Schneider-Neureither & Partner (SNP) SE to help customers accelerate their enterprise transformation journey. Both companies will also build a ”Transformation Competence Center’, that will train and certify Wipro consultants to use SNP’s CrystalBridge data transformation platform. The SNP Group has around 1,500 employees worldwide and is headquartered in Heidelberg, Germany.

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Maruti Suzuki sells over 2 lakh cars through online channel

India’s largest carmaker, Maruti Suzuki India, said that it has sold over 2 lakh cars through its online channel since April 2019. The company had initiated its online sales platform in 2018, and covers nearly 1,000 dealerships across the country. The company has also stated that its dealership websites are seeing a much larger traffic flow amidst the prevailing Covid-19 scenario.

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Ruchi Soya to launch FPO next year: Baba Ramdev

Baba Ramdev has announced that Ruchi Soya, which is owned by Patanjali Ayurved, will launch a follow-on public offer (FPO) next year. He has stated that the FPO has been planned to bring down the promoters’ shareholding in the company. A Follow-on Public Offer is a process by which a company, which is already listed on an exchange, issues new shares to investors or the existing shareholders. Ruchi Soya Industries Ltd. is one of the largest manufacturers of edible oil in India. 

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Vodafone Idea may raise tariffs by 15-20% towards the end of 2020: Report

As per a report from ET, Vodafone Idea (Vi) is considering to increase tariffs by 15-20% by the end of the year or early 2021. The telecom company is currently trying to make a financial recovery and reduce losses in its customer base. The report also states that Bharti Airtel may also keep a close watch on Reliance Jio’s moves, and change its rates accordingly.

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GAIL completes Kochi-Mangalore natural gas pipeline

Gail India Limited has completed the natural gas pipeline stretch between Kochi and Mangalore. The 444-km long pipeline was launched in 2009 at an estimated cost of Rs 2,915 crore. The testing of the pipeline will be completed within the next few days. With the commissioning of the pipeline, gas demand in Kerala will touch 80-90 million cubic metres per annum.

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Market News Top 10 News

Pfizer’s Covid-19 Vaccine 90% Effective in Phase 3 – Top Indian Market News

Covid-19 vaccine 90% effective in Phase-3 trial: Pfizer

Pfizer, the US-based pharmaceutical firm, has stated that its vaccine was 90% effective in preventing Covid-19 infections in ongoing Phase-3 trials. The vaccine candidate is jointly developed by Pfizer and BioNTech. Pfizer has also stated that it expects to supply up to 50 million vaccine doses globally in 2020.

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RBI lifts restrictions on Equitas Small Finance Bank after listing of shares

Equitas Holdings Ltd. has stated that the Reserve Bank of India has lifted the restrictions that were imposed on Equitas Small Finance Bank (ESFB) in September 2019. RBI had restricted ESFB from opening new branches and froze the remuneration of its MD & CEO. The restrictions were removed after ESFB got listed on the stock exchanges earlier this month.

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Balkrishna Industries Q2 Results: Net Profit rises 16% YoY to Rs 339 crore

Balkrishna Industries Ltd. reported a 16.7% year-on-year (YoY) increase in net profit to Rs 339.5 crore, for the quarter ended September (Q2). The company posted a 36% YoY increase in sales volume to 61,224 million tonnes, during the same period. The board has declared an interim dividend of Rs 4 per share.

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Happiest Minds partners with AutonomIQ to create connected ecosystem

Happiest Minds Technologies has partnered with AutonomIQ, a cloud platform that uses AI and machine learning for testing solutions. The partnership will be aimed at accelerating the enterprise digital transformation journey using autonomous testing capabilities. The companies will also help to create pre-built solutions to help customers generate value in really short periods. 

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L&T Finance Holdings gets approval to raise Rs 3,000 crore via rights issue

The Board of Directors of L&T Finance Holdings has approved a plan to raise Rs 3,000 crore through a rights issue. A rights issue is a method used by a company to raise additional capital, by offering more of its shares to the current shareholders. The company has stated that the details of the rights issue, including price and entitlement ratio, will be determined in due course.

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Blue Star receives Rs 128 crore order from Wistron Infocomm

Blue Star, on Monday, announced that it has bagged a Rs 128 crore order from Wistron Infocomm. The order is to create a mechanical electrical and plumbing (MEP) structure for Wistron’s factory expansion project. Wistron Infocomm is a Taiwan-based contract manufacturer of electronic goods for companies such as Apple.

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Board of Granules India approves incorporation of subsidiary in Hyderabad

The Board of Directors of Granules India has approved to incorporate a wholly-owned subsidiary of the company in Hyderabad. The company has plans to build a green field facility for its formulations business. The share price of Granules India Ltd. saw a rise of 4.24%, and closed at Rs 387 on the NSE today.

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Jindal Saw Q2 Results: Net Profit falls 74% YoY to Rs 78 crore

Jindal Saw Ltd. reported a 74% year-on-year (YoY) decline in net profit to Rs 78.2 crore, for the quarter ended September (Q2). The company’s revenue declined by 11.5% YoY to Rs 2,374.32 crore, during the same period. Jindal Saw has stated that its sales have seen a sharp rebound, after the steel business was negatively impacted due to Covid-19.

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Parag Milk Foods Q2 Results: Profit declines 44% YoY to Rs 16 crore

Parag Milk Foods Ltd. reported a 44.19% year-on-year (YoY) decline in profit after tax to Rs 15.9 crore, for the quarter ended September (Q2). Its revenue declined by 22.16% YoY to Rs 498.23 crore, during the same period. The company has stated that revenues had fallen due to a slowdown in its Hotel, Restaurants, and Catering segment.

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Lumax Industries Q2 Results: Net Profit falls 63% YoY to Rs 7 crore

Lumax Industries Ltd. reported a 63.99% year-on-year (YoY) decline in net profit to Rs 7.23 crore, for the quarter ended September (Q2). The company’s revenue declined by 7.39% YoY to Rs 397.35 crore, during the same period. Lumax is a leading manufacturer and supplier of automotive components and systems in India.

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NLC India Q2 Results: Net Profit jumps 400% YoY to Rs 43 crore

NLC India Limited reported a 400% year-on-year (YoY) increase in net profit to Rs 43 crore, for the quarter ended September (Q2). The company’s revenue increased by 78% YoY to Rs 396 crore, during the same period. The board has declared an interim dividend of Rs 1.5 per share. NLC India is a Government-owned company in the fossil fuel mining sector.

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Editorial

Equitas SFB IPO. All You Need To Know

Equitas Small Finance Bank has launched its IPO The period for subscription began on 20th October and shall end on 22nd October 2020. The scrip will be listed on 2nd November 2020. The current offer for sale is of 7.2 crore equity shares amounting to Rs 237.60 crores and a fresh issue of equity shares aggregating to Rs 237 crores. Offer for sale amount goes to the promoters, as it is their exit. Fresh equity goes into funding for the company. The company aims to raise close to Rs 517 crores through the IPO. Let’s find out more about this IPO.

About the IPO

Issue OpenOct 20, 2020
Issue CloseOct 22, 2020
IPO PriceRs 32 – Rs 33
Lot Size450 Shares
Minimum Order Quantity450 Shares or 1 lot 
Face ValueRs.10
IPO SizeRs 517.60 crore
Fresh IssueEquity Shares of Rs 10 amounting to Rs 280 crores
Listed onBoth NSE & BSE

On Day 1, the IPO was subscribed by 39%. It received bids for 4,54,01,850 shares against a total issue size of 11,58,50,001 shares according to NSE data.

On Day 2, the IPO was subscribed by 50%. Receiving bids for 5,80,78,800 shares according to NSE data. 

Overall, the IPO has been subscribed 0.67 times as of Day 2.

CategorySubscription Status
Qualified Institutional Buyers(QIB)0.05 Times
Non-Institutional Investors(NII)0.05 Times
Retail(RIIs) 1.42 Times
Employee0.97 Times
Others0.24 Times
Total0.67 Times
QIB subscription looks low

Investors who have shares of Equitas Holdings (EHL) which is the parent company of Equitas Small Finance Bank are eligible to apply under the shareholder’s category of Equitas Small Finance Bank IPO. The company has reserved 10% of the offer for Shareholders of EHL amounting close to Rs 51 crores.

About the Company

  • The Equitas Small Finance Bank is an institution founded in 2007 that provides retail baking services and other financial services. The aim of a small finance bank is financial inclusion of areas like small businesses, marginal farmers, micro-industries, and unorganized sector entities. Small Finance Banks with net worth above Rs 500 crore are supposed to mandatorily get listed on the stock exchanges within 3 years, and this is why Equitas SFB is doing its IPO.
  • Equitas SFB is the largest small finance bank in terms of outlets and the second-largest in terms of assets under management and deposits according to CRISIL.  
  • The company possesses the following strengths:
    • Largest Small Finance Bank in terms of outlets(856 banking outlets and 322 ATMs), therefore better market distribution network in terms of micro-financing services.
    • Customized Credit Assessment before giving out loans, this ensures low NPAs. The Gross NPA for the company was 2.68% of total advances or total money lent out. 
    • The bank has a well-diversified asset portfolio which includes Vehicle Finance, Agriculture Finance, Micro Finance, Housing Finance, MSE Finance, and Corporates. The Secured-Loan product segment has grown at a CAGR of 48.35% over the last two years.
    • The company is technology-driven and has invested close to ~65 Crores in Q1FY21, on technology initiatives.
    • Experienced leadership and trained employee base.
  • There are certain risk factors involved with the company such as :
    • COVID-19 pandemic. May lead to reduced collections, reduced disbursements and deposits, and increased provisioning for loans. There may be a significant increase in our NPA levels.
    • The bank is subject to stringent regulatory requirements of RBI and other regulatory authorities. Failing to comply with them might make an impact on the business. SFBs or Micro Financing is a relatively new concept in India as compared to traditional banking. The company provides small business loans, microfinance, and vehicle finance loans are under-served segments in India. The health of the business depends on the ability of first-time borrowers to pay back in time.
    • The majority of the bank’s advances are in Tamil Nadu, any adverse changes that might affect the region can give an impact on the business.
    • Subject to Interest Rate Risk. Any volatility in interest rates or inability to manage interest rate risk could highly affect the bank.
    • Equitas SFB was earlier an NBFC and used to fund itself using term loans from big banks and financial institutions. Now the company depends on deposits and refinancing to fund itself. SFBs are restricted by RBI guidelines to perform certain functions related to funding. The inability to fund itself might be a problem for the bank. 

The company’s vital financials are as follows:

30 June ’2031 March ’2031 March ’1931 March ’18
Total Assets20,892.1419,314.5515,762.6913,301.15
Total Income750.972927.802394.831772.90
Total Expenses693.302684.162184.271741.07
Profit After Tax57.67243.64210.5731.83
Amount in Rs. Crores

The concept of Micro Finance is still relatively new in India. RBI guidelines on SFB creates certain bottlenecks in their operations. However, these banks to reduce risk have created a stringent credit assessment procedure to avoid a high number of NPAs. It is advised that an investor thoroughly goes through the company’s strategy regarding funding, credit facilities, expansion of business, and other important vital ratios. Such vital information can be found in the company’s RHP or Red Herring Prospectus. You can check out the Red Herring Prospectus of the company over here.