NIFTY started the day at 19,822 with a small gap-up of 11 points. Right from opening, the index moved in a 75-point range between 19,770 and 19,845. Nifty closed at 19,794, down by 17 points or 0.09%.
BANK NIFTY (BNF) started the day at 44,571 with a gap-up of 55 points. Throughout the day, the index consolidated in just a 110-point range between 44,550 and 44,660. BNF closed at 44,599, up by 82 points or 0.18%.
All indices except Nifty IT (-1.67%) and Nifty Realty (-0.18%) closed flat-to-green. Nifty Media (+3.02%) moved up the most.
Major Asian markets closed up to 1.8% in the green. European markets are currently trading in the green.
Today’s Moves
Coal India (+1.7%) was NIFTY50’s top gainer. The company said a three-day strike called by five central trade unions has been deferred.
Aster DM Healthcare (4.9%) surged over 9% following reports that private equity firms BPEA EQT and Ontario Teachers’ Pension Plan Board have shown interest in acquiring the company’s assets, including its India business.
MMTC (+19.95%) rose sharply following the Central Govt’s nod to royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements (REEs).
Tech Mahindra (-2.72%) was NIFTY50’s top loser.
All stocks in Nifty IT fell after the Q2 results reported by TCS yesterday were weaker than analysts’ estimates.
Laxmi Organics (-5.7%) fell sharply after rallying over 11% yesterday.
Markets Ahead
Major indices held the upper levels and consolidated in a small range today. A breakout or a breakdown from these zones can give us good directional moves.
Nifty: The immediate support in the index is near 19,780. Meanwhile, the immediate resistance to watch out for is the 19,880 level. A breakout from there could take Nifty up to 19,945 and 20,000 levels eventually.
Bank Nifty: The immediate support is near 44,400. A breakdown from this level might take the index down to 44,180 and 44,080. On the other hand, 44,750 is the immediate resistance to watch out. A breakout from there may give us targets of 45,000 and 45,100.
How was Nifty expiry day? Are you in net profit or loss? Let us know in the comments section below!
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NIFTY started the day at 19,767 with a gap-up of 77 points. After moving up to 19,840 levels, the index consolidated in a 50-point range throughout the day. Nifty closed at 19,811, up by 121 points or 0.62%.
BANK NIFTY (BNF) started the day at 44,554 with a gap-up of 194 points. After moving up to 44,700 levels, the index consolidated with a negative bias till yesterday’s closing levels of 44,400. BNF closed at 44,516, up by 156 points or 0.35%.
All indices except Nifty PSU Bank (-0.73%) closed flat-to-green. Nifty Auto (+0.92%) moved up the most.
Major Asian markets closed up to 1.5% in the green. France’s CAC40 is currently trading in the red, while Germany’s DAX and the UK’s FTSE100 are trading in the green.
Today’s Moves
Hero MotoCorp (+4.17%) was NIFTY50’s top gainer. Brokerage firm CLSA has upgraded its rating on the stock to ‘Buy’ and raised the target price to ₹3,701 per share (from ₹3,142 earlier).
Laxmi Organics (+11.43%) surged after the company raised ₹259 crore through a qualified institutional placement (QIP).
Vodafone Idea (+7.2%) rose after the telco moved the Supreme Court regarding its Adjusted Gross Revenue (AGR) dues plea, with the apex court agreeing to consider the matter.
HCL Tech (-1.28%) was NIFTY50’s top loser. The IT major is expected to report growth in the constant currency revenue in Q2 FY24 after a consecutive decline in the previous two quarters.
Bank of Baroda (-3.31%) fell sharply after RBI suspended the bank from onboarding new customers on its ‘bob World’ app.
Markets Ahead
Nifty has hit our target of 19,800 levels and faced resistance from the gap-filling levels of 19,840 and stayed there. Bank Nifty is also holding the upper levels and might continue the up-move if today’s lows are not breached.
Nifty: The immediate support for the index is near 19,780. Meanwhile, the immediate resistance to watch out for is the 19,880 level. A breakout from there could take Nifty up to 19,946 and 20,000 levels eventually.
Bank Nifty: The immediate support is near 44,400. A breakdown from this level might take the index down to 44,180 and 44,080. On the other hand, 44,750 is the immediate resistance to watch out. A breakout from there may give us targets of 45,000 and 45,100.
Being Bank Nifty expiry today, the market was more or less calm and consolidating. Tomorrow’s Nifty expiry can be trending based on the breakdown or breakout levels. So watch out for the key levels.
Tata Consultancy Services (TCS) has kick-started the results season! The IT major reported a 9% year-on-year (YoY) growth in consolidated net profit for the quarter ended September 2023 (Q2 FY24) to ₹11,342 crore. Consolidated revenue grew nearly 8% YoY to ₹59,692 crore in Q2.
What levels are you watching out for Nifty tomorrow? Let us know in the comments section below!
Please tune in to The Stock Market Show at 7 PM on our YouTube channel.
India is considered the fastest-growing market for speciality chemicals in the world. The agrochemical, pharmaceutical, and textile industries depend on a steady supply of speciality chemicals for their day-to-day production activities. There are a large number of companies in our country that manufacture such chemicals in bulk. In this article, learn more about Laxmi Organic Industries, a leading company in this highly promising industry.
Laxmi Organic Industries – Company Profile
Laxmi Organic Industries Limited is a speciality chemicals manufacturing company based in Mumbai. It primarily operates through two segments: Acetyl Intermediates (AI) and Specialty Intermediates (SI). Its acetyl intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol, and other proprietary solvents. The company’s specialty intermediates include ketene, acetic anhydride, amides, and arylides. All these are chemical products that have multiple applications across the pharmaceutical and agrochemical industries. These are also essential inputs for manufacturing dyes, pigments, coatings, paints, fragrances, and adhesives.
(Approximate figures)
The company has secured a nearly one-third market share in the Indian ethyl acetate market. It also has a market share of ~55% in the Indian diketene derivatives market. Dr Reddy’s Laboratories, Laurus Labs, Granules India, UPL Limited, Suven Pharma, and Colourtex Industries are some of its prominent clients. Laxmi Organic exports its products to nearly 30 countries, including China, the Netherlands, Russia, the United Arab Emirates, the United Kingdom, and the United States. It currently has two state-of-the-art manufacturing facilities and two distilleries in Maharashtra.
Laxmi Organic launched its initial public offering (IPO) in March 2021 for raising Rs 600 crore. The listing price of its shares on the NSE was Rs 155.50, a gain of 19.6% over the issue price of Rs 130. The total promoter holding by the Goenka Group and US-based Yellowstone Trust currently stands at 72.92%.
Financial Performance
It seems that the negative impacts triggered by the Covid-19 pandemic have not caused any serious damage to the company’s financial growth. This could mainly be due to increased demand for the products they offer. The agrochemical and pharma sectors require a regular supply of these speciality chemicals for their production activities. Laxmi Organic reported a 261.95% year-on-year (YoY) jump in consolidated net profit to Rs 36.44 crore for the quarter ended March 2021 (Q4 FY21). However, net profit has declined by 19.62% when compared to the previous quarter (Q3 FY21). Its total income in Q4 stood at Rs 521.27 crore, up 34.38% YoY and 19.17% on a quarterly basis.
Laxmi Organic’s net profit for the entire financial year 2020-21 (FY21) increased by 81.21% YoY to Rs 127.03 crore. The company’s total income for FY21 rose 15.2% YoY to Rs 1,773.06 crore. Thus, both revenues and profits have rebounded strongly in FY21. Over the past five years, its revenue has grown at a CAGR of 7.79%, whereas the industry average stood at 3.62%. Laxmi Organic has secured a market share of 3.3% in the highly competitive speciality chemicals industry.
The Return on Capital Employed (ROCE) stands at 20.34%. Compared to major competitors in the speciality chemicals sector, this figure is quite low. It means that for every Rs 100 worth of capital employed, Laxmi Organic earns Rs 20.34 on it. Return on Equity (ROE) is also comparatively low at 17.38%. Laxmi Organic is almost a debt-free firm. The company reported an Earnings Per Share (EPS) of Rs 5.58 in FY21, a 95% jump over FY20.
Future Plans
Over the years, allocating significant funds to its Research & Development (R&D) segment has helped Laxmi Organic expand in terms of production volume and product portfolio. Thus, the company will continue to focus on improving its product line and manufacturing capabilities through extensive R&D activities. Launching innovative products will help them grow further in a highly competitive market. Last month, they announced plans of setting up a wholly-owned subsidiary in Delaware, United States. This firm will trade the chemical products manufactured by the parent company. Laxmi Organic will invest $1 million (~Rs 7.29 crore) to set up the subsidiary.
The company aims to establish a SI manufacturing facility using a portion of the net proceeds from its IPO. Meeting capital expenditure (CAPEX) requirements and reduction of debts are also of top priority.
Conclusion
Last year, Laxmi Organic had to close down its manufacturing units due to strict lockdowns. A major concern was that all its operations are centered around Maharashtra, the state worst hit by the Covid-19 pandemic in India. However, the company was able to recover well and have posted strong financial growth in FY21. They have maintained high product quality standards over the years, which is evident from the long list of prominent clients.
According to a report from India Brand Equity Foundation (IBEF), the speciality chemicals industry in India is expected to grow at a CAGR of 11-12% over the next five years. It is expected to become a $40 billion (~Rs 3 lakh crore) market by 2025. The leading companies in this industry will continue to benefit from higher demand from multiple end-user industries. Also, there are certain government schemes that support the production activities of domestic chemical manufacturers. Laxmi Organic could greatly benefit from all of this, provided that they launch new and improved products. We will have to wait and see how the management implements its strategic plans.
Since its listing on March 21, the stock price of Laxmi Organic has increased steadily by ~44%. It hit a 52-week high of Rs 244.70 at the time of Q4 results being announced. In our opinion, there is a lot more move coming for the stock in the next 5 years.
What are your views on Laxmi Organic Industries? Do you believe it has the scope to become a market leader in the speciality chemicals industry in India? Let us know in the comments section of the marketfeed app.
Cabinet approves proposal to set up Development Finance Institution
The Union Cabinet, on Tuesday, approved the creation of a Development Finance Institution (DFI) for funding infrastructure and development activities in the country. The government will initially infuse Rs 20,000 crore into this institution. Finance Minister Nirmala Sitharaman said that the DFI is expected to raise up to Rs 3 lakh crore in the next few years. The DFI will start with 100% ownership of the Government of India. This figure will gradually be brought down to 26%.
L&T secures multiple orders across business segments in domestic market
Larsen & Toubro (L&T) Limited has received multiple orders across its business segments in the domestic market. The company’s water and effluent treatment business has secured EPC (engineering, procurement, and construction) orders from the Rural Water Supply and Sanitation Department, Odisha. L&T’s buildings and factories business has secured an order from a leading cement manufacturer to construct a 10,000 TPD (tonnes per day) Integrated Cement Plant in Pali, Rajasthan. The value of the orders ranges between Rs 1,000 crore and Rs 2,500 crore.
Godrej Properties Ltd has raised Rs 3,750 crore through a qualified institutional placement (QIP). The company’s board has issued 2.59 crore equity shares (of the face value of Rs 5 each) to eligible qualified institutional buyers (QIBs) at Rs 1,513.39 per share. Godrej Properties will utilise the funds to buy land and expand its business.
GMM Pfaudler announced that it has participated in the e-auction process for the sale of assets owned by HDO Technologies, which is currently under liquidation. The company has been declared as the successful bidder for assets including factory land, building, plant & machinery, office equipment, etc. A consideration of Rs 58.46 crore will be paid for the proposed assets. The tentative date for the completion of the transaction is April 30, 2021.
TCS launches SaaS-based platform to secure enterprises from cyber risks
Tata Consultancy Services (TCS) has launched a software-as-a-service (SaaS)-based automated vulnerability remediation platform to protect enterprises from cyber attacks. The platform will identify and prioritise vulnerabilities in the software libraries of enterprises and proactively fix them. It provides risk-based analytics that helps security and IT operations teams to mitigate known risks.
BEML receives orders worth $23 million from Bangladesh, Cameroon
State-owned BEML Limited has received export orders from Cameroon and Bangladesh under the Government of India- Lines of Credit. The company will supply 71 units of construction equipment consisting of bulldozers, excavators, motor graders, etc to the Ministry of Economy-Planning & Regional Development, Cameroon. It will also supply equipment for road construction and infrastructure projects to the Ministry of Roads & Highways Department, Bangladesh. The total value of the orders is estimated at $23 million (~Rs 167 crore)
HG Infra Engineering Ltd has received an order worth Rs 122.38 crore from state-owned NTPC Limited. The order is for the transportation of 26.41 lakh cubic metres of pond ash from NTPC Ramagundam to the NHAI-PIU-Mancherial road construction project. The project has to be completed within 15 months.
Gland Pharma to supply 252 million doses of Sputnik V vaccine
Gland Pharma Limited has entered into an agreement with the Russian Direct Investment Fund (RDIF) to supply up to 252 million doses of Sputnik V Covid-19 vaccine. The company will utilise its Drug Substance and Drug Product facilities at its sites in Hyderabad. The production is expected to commence from the third quarter of 2021.
The Rs 1,175-crore initial public offering (IPO) of Kalyan Jewellers was subscribed 60% on the first day of bidding. The portion reserved for retail investors was subscribed 1.10 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 20% and that of employees 1.15%. To know more about the IPO, click here.
Laxmi Organic Industries
The Rs 600-crore initial public offering (IPO) of Laxmi Organic Industries was subscribed 6.05 times on the second day of bidding. The portion reserved for retail investors was subscribed 10.38 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 2.48 times and that of qualified institutional buyers (QIBs) 1.15 times. You can learn more about the IPO here.
Craftsman Automation
The Rs 823.70-crore initial public offering (IPO) of Craftsman Automation was subscribed 1.26 times on the second day of bidding. The portion reserved for retail investors was subscribed 2.11 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 19% and that of QIBs 56%. To know more about the IPO, click here.
Anupam Rasayan India
The Rs 760-crore initial public offering (IPO) of Anupam Rasayan India was subscribed 44.06 times on the final day of bidding. The portion reserved for retail investors was subscribed 10.77 times and that of employees 1.71 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 97.42 times and that of QIBs 65.74 times. To know more about the IPO, click here.
This week you are witnessing many IPOs floating through. One of them is Laxmi Organic Industries whose IPO will hit the market on 15th March. Let’s discuss what it is all about and if you invest or not.
About the Company
Laxmi Organic Industries Limited is a speciality chemical manufacturing company. It operates in two segments which are Acetyl Intermediates (AI) and Specialty Intermediates (SI). It is the only manufacturer of diketene derivatives present in India. Also, they have almost one-third market share in the Indian ethyl acetate market. Laurus Labs, Granules India, UPL Limited, Suven Pharmaceuticals Limited, Colourtex Industries are some of its clients.
Yellow Stone Trust and Ravi Goenka are the promoters of the company. In total, they have customers from 30 different nations which means the presence of a diversified customer base. They already have 2 manufacturing facilities in Maharashtra for the manufacturing of AI and SI products. And, the company is also planning to add another manufacturing unit to its portfolio. They have a market share of more than 50% in the Indian diketene derivatives market in terms of revenue in FY 2020. The global Acetyl market is projected to expand at a growth rate of 6.4% over the next five years. Thus, a huge area for the company to expand in the future.
About the IPO
The IPO of Laxmi Organic will open on 15th March 2021 and will close on 17th March 2021. The total issue size of the IPO is Rs 600 crore.The fresh issue and the Offer for sale aggregate up to Rs 300 crore each. The price band of the IPO is Rs 129 – Rs 130 per equity share.You have to apply for a minimum of 117 Shares which is one lot.
The upper limit to the number of lots you can apply for is 13, which means, 1495 shares. The minimum an investor has to pay for this IPO of Laxmi Organic is Rs 14,950. Similarly, the maximum one can invest in is Rs 1,94,350. Currently, the promoters of the company have 89.51% of the total holdings. After the IPO, this will decrease to 72.92%. That is a significant percentage of holding which tells us that promoters still believe in the future of the company. The allotment date and listing date for the IPO are 22nd March 2021 and 25th March 2021 respectively.
Laxmi Organicplans to use the net proceeds from the IPO in multiple ways. Yellowstone Fine Chemicals Private Limited (YFCPL) is one of their subsidiaries. A part of the proceeds will go for funding CAPEX and other working requirements for these subsidiaries. The sum will also be used for the expansion of the Speciality Intermediates (SI) manufacturing facility.
The company will also focus to purchase machinery for infrastructure development at the SI facility. Some part of the proceeds will also be used to repay or prepay the borrowing of the company and its subsidiary Viva Lifesciences Private Limited (VLPL). There are a lot of objectives and it will be seen how efficiently the company can manage to allocate the proceeds generated from the IPO.
Financial Overview
*
30 September 2020
31 March 2020
31 March 2019
31 March 2018
Total Assets
1,037.13
1,070.63
1,014.48
894.73
Total Revenue
814.35
1,538.62
1,574.32
1,396.07
Profit after Tax
45.48
70.21
72.39
75.69
(Values in Rs Crore)
Laxmi organic failed to match the revenue number last year but that can be attributed to Covid-19 effects as well. But one worrying sign is the decreasing profits for the last three years. In FY 18, the company generated profits worth Rs 75.6 crore. In FY 20, this number dropped to Rs 70.2 crore. But on the sunny side, Laxmi Organic has performed well this year. Till September, the first half of FY21, the company has generated a good amount of revenue and profits. If they can continue the trend, they will surely have a better year when compared to FY 20.
Earnings per Share is another important metric for investors like you and me. This metric has decreased from 3.03 to 2.86. This is not a major fall but surely a dip which we cannot ignore. Decreasing EPS is considered a negative sign for the company. They have a return on the net worth of 16.45% which is less than their competitors. Aarti Industries and SRF Limited have a RONW% of 18% and 21% (approximately) respectively.
IPO Details in Nutshell
IPO Date
March 15, 2021 – March 17, 2021
Issue Type
Book Built Issue IPO
Face Value
Rs 2 per equity share
IPO Price
Rs 129 to Rs 130 per equity share
Lot Size
115 Shares
Offer for Sale (goes to promoters)
Aggregating up to Rs 300 crore
Fresh Issue (goes to the company)
Aggregating up to Rs 300 crore
Issue Size
Aggregating up to Rs 600 crore
Listing At
NSE, BSE
IPO Listing Date
March 25, 2021
Risk Factors
Covid-19 had a huge negative impact on Laxmi Organics. The capacity utilization was scaled down to 40%-60% capacity due to labour shortages by many leading chemical manufacturers. Laxmi Organics were forced to shut down its SI Manufacturing Facility for 15 days.
As conveyed before, a major part of their manufacturing facility is based in Maharashtra. Any social unrest, breakdown of services or any other natural disaster can force the company to shut down its operations.
The company is wishing to establish a manufacturing site for fluoro specialty chemicals. If customers are not attracted by this new product line, profitability will be affected massively. Thus, stalling their growth and affecting their operations in other industries as well.
Laxmi Organics depend a lot on their Research & Development (R&D). Any failure to manufacture sound products will adversely impact their business.
Their profitability depends a lot on the global prices of their products. A fall in the prices can severely hit its revenue collection.
Conclusion
Laxmi Organics are the leading manufacturer of ethyl acetate and has one of the largest portfolios of diketene products. They have a diversified customer base with a solid product mix. This gives varieties and helps to attract customers from different sectors. Thus, giving more business opportunities to the company. Currently, the financials are not that strong but this performance from March 21 to September 21 gives us huge confidence.
Can the current IPO spree attract investors to bet high on Laxmi Organics as well? I will wait till the end of 15th March and see how much the IPO is subscribed to. Do your own analysis about the company and let us know in the comments section if you find any other interesting information. Laxmi Organic filed its draft papers last December. You can find it here. Will you be applying for this IPO? Tell us in the comments section below!
Wholesale inflation in India jumped to a 27-month high in February 2021, as prices of food, fuel, and power surged. Inflation based on the Wholesale Price Index (WPI) increased to 4.17% in February, compared to 2.03% in January. The WPI Food Index rose to 3.31% in the same period, compared with -0.26% in January. It is estimated that core-WPI inflation will climb to 7-7.5% by May 2021. This indicates that there is increased pressure on India’s economy. The data was released by the Ministry of Commerce and Industry.
Adani Ports receives LoI to build West Container Terminal at Colombo Port
A consortium led by Adani Ports and Special Economic Zone Ltd (APSEZ) has received a Letter of Intent (LoI) from the Sri Lankan government to build and run the West Container Terminal (WCT) at Colombo Port. APSEZ will own a majority stake of 51% in the terminal, while local partner John Keels Holding PLC will hold 34%. The remaining 15% will be held by Sri Lanka Ports Authority (SLPA). WCT will have an annual capacity of 2.6 million twenty-foot equivalent units (TEUs). [TEU is used to measure cargo capacity for container ships and container terminals]
Laxmi Organic Industries IPO subscribed 2.28 times on first day of bidding
The Rs 600-crore initial public offering (IPO) of Laxmi Organic Industries was subscribed 2.28 times on the first day of bidding. The issue received bids for 7.42 crore equity shares against an offer size of 3.25 crore shares. The portion reserved for retail investors was subscribed 4.34 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 49% and that of qualified institutional buyers (QIBs) 1%.
Finance Minister introduces Bill in Rajya Sabha to allow 74% FDI in insurance
Finance Minister Nirmala Sitharaman, on Monday, introduced a Bill in Rajya Sabha that seeks to amend the Insurance Act in order to increase foreign direct investment (FDI) in the insurance sector from 49% to 74%. On Wednesday (March 10), the Union Cabinet gave its approval for amendments to the Insurance Bill 2021. The increase in FDI limit will help improve life insurance penetration and create more value-based affordable healthcare for all Indians.
Adani Welspun discovers gas in Mumbai Offshore’s Tapti-Daman sector
Adani Welspun Exploration Ltd (AWEL) announced its first-ever gas discovery in Nelp-VII block in the Tapti-Daman sector of the Mumbai Offshore basin. AWEL is a joint venture (JV) between Adani Group and Welspun Enterprises. The block is spread across 714.6 sq km and AWEL owns 100% interest in it. “This discovery will help take India closer to its target of becoming a gas-based economy,” said Gautam Adani, Chairman of the Adani Group.
ITC to expand food portfolio by launching milkshakes, cakes: Report
As per a report from BloombergQuint, ITC Limited plans to expand its offerings in categories such as chocolates and staples, as it looks to boost its food portfolio. The report states that the company has also launched three varieties of cakes under the Sunfeast brand at Rs 10 per pack. It has also launched Sunfeast Wonderz Milk (milkshakes) in the range of Rs 25-35. The launches are part of ITC’s efforts to generate Rs 1 lakh crore revenue from its fast-moving consumer goods business.
Tech Mahindra to acquire majority stake in Perigord Asset Holdings
Tech Mahindra Ltd has announced plans to acquire a 70% stake in Perigord Asset Holdings Ltd, an Ireland-based business process outsourcing (BPO) services company. The majority stake will be acquired directly and indirectly through its wholly-owned subsidiary— Mahindra Engineering Services (Europe) Ltd. The total cost of the acquisition is €21 million (~Rs 181.65 crore). The remaining 30% stake will be acquired over the next 4 years.
Anupam Rasayan IPO subscribed 3.64 times on second day of bidding
The Rs 760-crore initial public offering (IPO) of Anupam Rasayan India was subscribed 3.64 times on the second day of bidding. The issue received bids for 3.53 crore equity shares against an offer size of 97.01 lakh shares. The portion reserved for retail investors was subscribed 6.6 times and that of employees 93%. The portion set aside for non-institutional investors (NIIs) saw a subscription of 1.39 times and that of qualified institutional buyers (QIBs) 37%.
Shree Cement starts commercial production at Odisha unit
Shree Cement Limited has commenced commercial production at its new cement grinding unit at Athagarh Tehsil in Cuttack District, Odisha. The unit has a grinding capacity of 3 million tonnes per annum (MTPA). Shree Cement is a leading cement manufacturer based in Kolkata. It also produces and sells power under Shree Power and Shree Mega Power.
Craftsman Automation IPO subscribed 55% on first day of bidding
The Rs 823.70-crore initial public offering (IPO) of Craftsman Automation was subscribed 55% on the first day of bidding. The issue received bids for 21.31 lakh equity shares against an offer size of 38.70 lakh shares. The portion reserved for retail investors was subscribed 1.06 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 9%. QIBs are yet to put in bids for the IPO.
Natco Pharma to launch pheromone-based product to control pests in cotton crop
Natco Pharma Limited will launch its first Green Label Pheromone product for the effective management of Pink Bollworm (PBW) in cotton crop during the Kharif season. The product will be launched under the brand ‘Natmate PBW’. This is the first pheromone-based product made in India that has received approval from the Central Insecticide Board (CIB). The damage to the quality and yield of cotton due to PBW is significant and severely affects the livelihood of small farmers in India.
Union Minister Prakash Javadekar announced that the Cabinet Committee on Economic Affairs (CCEA) has approved a Rs 3,500 crore subsidy for sugar farmers. The subsidy will be given on 60 lakh tonnes of sugar exports at the rate of Rs 6,000 per tonne. He stated that 5 crore sugarcane farmers will benefit from this Cabinet decision. The subsidy will be directly transferred to the farmers’ accounts.
In other news, the Cabinet has also approved a project for establishing 2,100 km of additional transmission lines and 36 new Sub Stations in 6 North-Eastern states.
Laxmi Organics files draft papers for Rs 800-crore IPO
Laxmi Organics has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 800 crore as its initial public offering (IPO). The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 300 crore by its promoter, Yellow Stone Trust. Laxmi Organic is a Mumbai-based specialty chemicals manufacturer. The company will utilise the proceeds from the issue for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, and purchase of plant and machinery.
SEBI eases profitability criteria for mutual fund sponsors
The Securities and Exchange Board of India (SEBI) has decided to relax profitability criteria for becoming a mutual fund sponsor. This is to facilitate innovation and expansion in the mutual fund sector. The SEBI board also approved proposals which include dispensing with the requirement to issue physical unit certificates, reducing maximum permissible exit load, and reducing the timeline for payment of dividend.
Jio fastest network in 4G download in November: TRAI
According to the latest data update from telecom regulator TRAI, Reliance Jio has topped the 4G speed chart with a data download rate of 20.8 megabits per second (Mbps) in November. This was followed by Vodafone at 9.8 Mbps and Bharti Airtel at 8 Mbps. Vodafone was ahead of others in upload speed at 6.5 Mbps, during the same month. Jio’s upload speed was recorded at 3.7 Mbps.
Future Enterprises Q2 Results: Net Loss at Rs 320 crore
Future Enterprises Ltd reported a consolidated net loss of Rs 320 crore, for the quarter ended September (Q2). The company had posted a net profit of Rs 21.78 crore in Q2 of the previous financial year. Its revenue from operations declined to Rs 237.88 crore in Q2 FY21, as compared to Rs 1,699.84 crore in the corresponding quarter in FY20. Future Enterprises develops, owns, and leases retail infrastructure for the Future Group.
Ratnamani Metals & Tubes secures order worth Rs 105 crore
Ratnamani Metals & Tubes Ltd (RMTL) has received a domestic order of Rs 105 crore for coated carbon steel pipes from the Oil and Gas sector. The company stated that the order will be executed between May 2021 and September 2021. Gujarat-based RMTL is a leading producer of stainless steel and titanium welded tubes. It also provides total piping solutions to a diverse range of industries.
Cipla launches Covid-19 diagnostic test kit ‘CIPTest’
Cipla Limited has partnered with Premier Medical Corporation Pvt Ltd to launch ‘CIPTest’- a rapid antigen Covid-19 testing kit. While Premier Medical Corp will manufacture the kits, Cipla will be responsible for marketing and distribution. The pharma company stated that the testing kit will be able to generate results in 15-20 minutes.
Jubilant Foodworks announced the expansion of its portfolio with a new biryani brand- Ekdum! The company stated that Ekdum! will offer 20 different varieties of biryanis curated from different parts of India. In addition to biryanis, customers will also be able to choose from an extensive range of kebabs, curries, desserts, and beverages. Currently, Ekdum! has opened three restaurants in Gurgaon, and has plans to launch more in NCR over the next few months.
Indian Bank declares IL&FS Financial Services account as fraud
State-owned Indian Bank has declared the account of IL&FS Financial Services Ltd (IFIN), as fraud. The bank has fully provided for the non-performing account of IFIN with outstanding dues of Rs 408 crore. The lender has reported the account to the Reserve Bank of India (RBI), as per regulatory requirements. In October, Punjab and Sind Bank had also reported the account of IFIN as fraud, with outstanding dues of over Rs 561 crore.
According to a report from Livemint, Vedanta Group plans to raise as much as $8 billion (~Rs 58,913 crore) to secure funds for the acquisition of state-run Bharat Petroleum Corp. Ltd (BPCL). It has been reported that Vedanta Resources Plc has already started talks with banks, and discussions with JP Morgan are at an advanced stage. The report states that funds will be raised through a mix of debt and equity instruments, to acquire a 52.98% stake in BPCL.
RBL Bank migrates to Infosys Finacle’s digital banking solution
RBL Bank announced that it will migrate its systems to Infosys Finacle, a digital banking solutions platform developed by EdgeVerve Systems. Finacle’s extensive open API (application programming interface) repository will provide the agility required to seamlessly integrate and co-innovate with ecosystem partners, which is one of the key focus areas for the bank. EdgeVerve Systems is a wholly-owned subsidiary of Infosys Ltd.
