NIFTY started the day flat at 19,457 with a small gap-up of 14 points. There was huge volatility in the first 30 minutes. Later, the index tried moving up but took resistance at the opening levels (19,460) and fell gradually to 19,380 levels. Niftyclosed at 19,395, down by 48 points or 0.25%.
BANK NIFTY (BNF) started the day flat at 43,626. Unlike Nifty, BNF was bullish and moved up more than 300 points to 43,880 levels. Post 12 PM, there was a slow correction till 43,650. BNF closed at 43,683, up by 25 points or 0.06%.
All indices except Nifty Realty (+1.23%) and Nifty Auto (+0.83%) closed flat-to-red. Nifty FMCG (-0.9%) fell the most.
Major Asian markets closed mixed (Japan’s Nikkei closed 1.58% in the green). European markets are currently trading in the green.
Today’s Moves
Mahindra & Mahindra (+4.35%) was NIFTY50’s top gainer. The automaker is expected to report a healthy rise in Q2 earnings, led by robust automobile sales even as weak tractor sales will cap gains.
SPARC (+8.08%) surged on the back of strong volumes.
Adani Ent (-2%) was NIFTY50’s top loser.
Shares of MTAR Tech (-11.4%) fell the most since June 2022 after the company posted weak Q2 results. It has also cut revenue, margin guidance for FY24.
KRBL (-8.9%) fell sharply after the company (a top exporter of branded basmati rice) reported a 28.1% YoY drop in Q2 profit as it was hit by weak demand.
Markets Ahead
Bank Nifty is holding the upper levels, while Nifty is looking a bit weak. Both indices are holding their respective resistance zones, as those were the levels from where the indices gave a breakdown. So if the indices can cross major resistances, we could see a clear change in trend in the coming days.
Nifty: The major support to watch out for is near the closing level of 19,380. A breakdown from there could take the index down to 19,320 levels and 19,280 levels eventually. Meanwhile, the index has an important resistance at 19,460 levels. A breakout from there may take the index up to 19,500 and 19,550 levels.
Bank Nifty: The index is respecting a trend line and has formed a triangular pattern. If BNF breaks down from this trendline or 43,500, we could expect a fall to 43,300 and 43,000 levels. On the other hand, a breakout from the 44,000 resistance level might take the index up to 44,500.
After the volatility we’ve experienced, the indices are now staying within a certain range. If this consolidation continues tomorrow, it might be a sign that the markets are gearing up for some bug movement in the upcoming weeks, especially with Diwali and upcoming state assembly elections.
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The Income Tax Department has conducted raids at multiple premises of Hero Motorcorp Ltd as part of a tax evasion investigation against the company. Offices and residential premises of the promoters (including chairman & CEO of the group Pawan Munjal) in Gurugram, Haryana, Delhi, and other locations were covered under the raid. Hero Motocorp said the visit by the IT department was part of a “routine inquiry”. The company also said it was cooperating with the tax authorities.
Adani Power partners with IHI, Kowa to study ammonia co-firing for power generation
Adani Power Ltd (APL) has partnered with IHI Corporation and Kowa Company to study ammonia co-firing for environmentally sustainable power generation. APL aims to lead India’s initiatives in achieving the targets of greenhouse gas reduction. They will evaluate the possibility and potential of ammonia as a fuel in thermal power generation. It will utilize green hydrogen-derived ammonia in APL’s thermal power plant.
HDFC sanctions over Rs 2 lakh crore retail home loans in FY22
HDFC Ltd has approved retail home loans worth more than Rs 2 lakh crore between April 1, 2021, and March 21, 2022, the highest ever in a financial year. The thrust on digital initiatives and inherent demand for housing loans helped HDFC get back to normalcy faster than expected. HDFC has over 2.7 lakhs home loan customers who have availed benefits under the Credit Linked Subsidy Scheme (CLSS), the highest in the industry.
MTAR Tech secures order worth Rs 135 crore in civil nuclear power sector
MTAR Technologies Ltd was declared the lowest (L-1) bidder for tenders floated by the Nuclear Power Corporation of India Ltd (NPCIL). The order includes a fuel transfer system for GHAVP Nuclear Power Station-1 & 2 reactors. It also consists of establishing a fuel machine bridge and carriage assemblies for GHAVP-3 & 4 nuclear reactors. The total value of the order is ~Rs 135 crore.
CAMS unveils policyholder traceability solution
CAMSRep, a wholly-owned subsidiary of Computer Age Management Solutions Ltd, has unveiled a policyholder traceability solution for the insurance market. It assists insurance companies in addressing their unclaimed amounts. CAMSRep’s PolicyGenie Deep Contact Tracing is a cost-effective solution that leverages emerging digital technologies to track untraceable policyholders and update their contact information.
Kotak Mahindra Bank, Axis Bank acquire nearly 8% stake each in ONDC
Kotak Mahindra Bank and Axis Bank have each acquired a 7.84% stake in Open Network Digital Commerce (ONDC) for Rs 10 crore. ONDC was incorporated on December 30, 2021. It is engaged in the creation of an open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.
ICICI Bank partners with Chennai Super Kings for co-branded credit card
ICICI Bank has launched a co-branded credit card in partnership with Chennai Super Kings (CSK). The ‘CSK ICICI Bank Credit Card’ has been designed with a range of privileges, including a joining and renewal gift of 2,000 reward points. The points can be redeemed against CSK merchandise. It also offers complimentary tickets to CSK matches during the upcoming IPL season. Credit card users will also get an opportunity to attend a practice session.
Adani Wilmar plans acquisition of brands, processing units in mass rice segment
Adani Wilmar Ltd is scouting for the acquisition of regional rice brands and processing units in several states of India. The company will launch branded daily-use rice under the ‘Fortune’ brand beginning with West Bengal from early April. Staple accounts for 11% of Adani Wilmar’s revenues. AWL had recently allocated Rs 450-500 crore for acquisitions.
Officials of Tata Consultancy Services (TCS) said the company is ready to put in place a 5G network for any telecom operator across the globe on any given day. The IT major is working on country-specific gear for the network in India. TCS is a system integrator, and it builds networks of telecom operators based on their requirements. The Indian government is planning to conduct 5G auctions before June so that 5G networks can be launched by August 15.
Bajaj Electricals extends licence pact with Morphy Richards by 15 years
Bajaj Electricals Ltd (BEL) has extended its trademark agreement with UK-based Morphy Richards for using the ‘Morphy Richards’ trademark for an additional 15 years, with effect from July 1, 2022. The extension of the exclusive license will enable BEL to continue using the trademark for producing, marketing, and selling home appliances in India and neighboring nations.
PVR Limited reported a consolidated net loss of Rs 289.12 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 74.49 crore in the corresponding quarter last year (Q4 FY20). The multiplex operator’s total income declined by 60.2% YoY (or 17.76% QoQ) to Rs 263.26 crore in Q4 FY21. PVR has posted a net loss of Rs 747.79 crore for the financial year ended March 31, 2021 (FY21). This is compared to a net profit of Rs 27.30 crore in FY20. With the resurgence of Covid-19 cases since April 2021, PVR has been taking all necessary measures to manage costs and preserve liquidity.
Adani Green’s subsidiary commissions 150-MW wind power project in Gujarat
Adani Wind Energy Kutchh Three has commissioned a 150 megawatt (MW) wind power project in Kutchh, Gujarat. The company is a subsidiary of Adani Green Energy Ltd (AGEL). The project has a Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at 2.82 per kilowatt-hour for 25 years. With the successful commission of this project, AGEL’s total operational renewable capacity has increased to 5,070 MW. This is the company’s 6th project to be commissioned ahead of schedule over the past 12 months.
Motherson Sumi Q4 Results: Net profit jumps 289% YoY to Rs 714 crore
Motherson Sumi Systems Ltd reported a 289% YoY jump in consolidated net profit to Rs 713.6 crore for the quarter ended March (Q4). Net profit has declined by 10.62% when compared to the previous quarter. Its revenue from operations rose 17.6% YoY to Rs 16,971.9 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit declined by 11% YoY to Rs 1,039.13 crore. The company’s board has recommended a final dividend of Rs 1.5 per share.
Phoenix Mills, GIC to set up investment platform in India
Phoenix Mills Ltd (PML) and Singapore’s sovereign wealth fund GIC have entered into a strategic partnership to establish a $733 million (~Rs 5,300 crore) investment platform for retail-led mixed-use assets in India. GIC will acquire a minority stake (26.4%) in the portfolio of PML’s projects that are under development in Mumbai and Pune. The assets comprise 3.4 million sq. ft. of leasable retail and office space.
Muthoot Finance Q4 Results: Net profit rises 22% YoY to Rs 995 crore
Muthoot Finance reported a 22.14% YoY increase in standalone net profit to Rs 995.66 crore for the quarter ended March (Q4). Its net interest income (NII) rose 15.7% YoY to Rs 1,829.5 crore during the same period. The company’s loan assets grew 26% YoY to Rs 52,622.3 crore as of March 31, 2021. Its total assets under management (AUM) rose 26% YoY to Rs 52,622 crore in FY21. Net profit for the financial year 2020-21 (FY21) increased by 23.32% YoY to Rs 3,722.18 crore. Muthoot Finance’s board has declared a dividend of Rs 20 per share.
Tata Power Solar secures order worth Rs 686 crore from NTPC
Tata Power Solar, a wholly-owned subsidiary of Tata Power Ltd, has received a Letter of Award (LoA) from state-owned NTPC Ltd to build 210 megawatt peak (MWp) of solar PV projects. The scope of work includes transmission, engineering, procurement, installation, and commissioning of solar projects at an NTPC project site in Gujarat. The total order value of the projects is Rs 686 crore. The commission deadline has been set as November 2022.
Route Mobile to develop A2P messaging platform for EITC-du
Route Mobile has announced a partnership with Emirates Integrated Telecommunications Company (EITC)- du, by offering a turnkey solution using its Smart Messaging Hub. This platform will enable du to launch a scalable revenue-generating messaging platform for the application-to-person (A2P) wholesale transit business. Route Mobile will oversee the infrastructure, technology, gateway connectivity, and day-to-day operations of the platform for du as a managed service.
Wipro partners with Finastra to help digitalise banks in the Asia-Pacific
Wipro Limited and UK-based software vendor Finastra have announced a partnership to aid digital transformation of corporate banks in the Asia-Pacific region. The companies will create a unique offering that combines Wipro’s services catalogue with Finastra’s front-to-back finance and cash management solutions. The partnership will help banks transition quickly and enable them to meet client needs in a faster and more agile manner.
USFDA accepts Lupin’s application for Pegfilgrastim biosimilar
Lupin Limited announced that the US Food & Drug Administration (USFDA) has accepted the Biologics License Application (BLA) for its proposed biosimilar to Neulasta (Pegfilgrastim). According to IQVIA data, Pegfilgrastim had an estimated annual sales of $3.66 billion (~Rs 26,710 crore) in the US for the 12 months ended December 2020. Pegfilgrastim is used to prevent neutropenia or the lack of certain white blood cells in patients receiving chemotherapy.
MTAR Technologies Q4 Results: Net profit jumps 103% YoY to Rs 18 crore
MTAR Technologies reported a 103.04% YoY increase in consolidated net profit to Rs 18.01 crore for the quarter ended March (Q4). Net profit has jumped 103.39% when compared to the previous quarter. Its revenue from operations rose 12.27% YoY to Rs 69.16 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit increased by 47.09% YoY to Rs 46.07 crore. The company’s board has recommended a dividend of Rs 3 per share.
Rossari Biotech to acquire Unitop Chemicals for Rs 421 crore
Rossari Biotech Ltd has announced plans to acquire a 100% stake in Mumbai-based Unitop Chemicals Pvt Ltd for Rs 421 crore. Unitop Chemicals is a supplier of surfactants, emulsifiers, and specialty chemicals. It has three manufacturing sites in India with a total capacity of 86,000 metric tonnes per annum (MTPA). Rossari Biotech stated that 65% of the equity share capital of Unitop will be acquired upon the closure of the transaction. The remaining 35% will be acquired over the next two years.
MTAR Technologies IPO subscribed 200.8 times on final day of bidding
The Rs 596.41-crore initial public offering (IPO) of MTAR Technologies was subscribed 200.79 times on the second day of bidding. The issue received bids for 145.79 crore equity shares against an offer size of 72.60 lakh shares. The portion reserved for retail investors was subscribed 28.4 times. The portion set aside for non-institutional investors (NIIs) was subscribed 650.7 times and that for qualified institutional buyers (QIBs) 165 times.
Kotak Mahindra Bank divests 10% stake in ECA Trading Services to its subsidiary
Kotak Mahindra Bank has divested 10% stake in ECA Trading Services to its wholly-owned subsidiary, Kotak Securities, for Rs 1.98 crore. A total of 1.09 crore equity shares were sold to the subsidiary at Rs 10 per share. The divestment was done to comply with the prudential limit set by the Reserve Bank of India (RBI) on investment in a non-financial services entity.
On Thursday, Kotak Mahindra Bank signed a Memorandum of Understanding (MoU) with the Indian Army. The private sector lender will now handle the salary accounts of Indian Army personnel.
PNB Housing Finance, Yes Bank enters into co-lending partnership
PNB Housing Finance and Yes Bank have entered into a strategic co-lending agreement to offer customised retail loans for homebuyers at competitive interest rates. The Delhi-based housing finance company will serve customers through the entire loan lifecycle including sourcing, documentation, and collection with an information-sharing arrangement with Yes Bank. Both companies will jointly do due diligence and co-originate the loan at an agreed ratio.
Tejas Network secures order from Mexico-based GigNet
GigNet, a Mexico-based digital infrastructure company, has selected Tejas Networks Limited’s optical networking and broadband access products for their high-capacity fiber-optic network expansion in the Cancun region of Mexico. Tejas Networks will supply its full range of last-mile access products to support the rapid growth of GigNet’s Smart Communities business segment for planned developments across the region.
Lenders agree to JSW Steel’s terms for buying Bhushan Power: Report
As per a report from BloombergQuint, the lenders to Bhushan Power & Steel Ltd (BPSL) have agreed to the terms set by JSW Steel for purchasing the assets of insolvent BPSL. A majority of the financial creditors on Friday voted in favour of accepting JSW Steel’s Rs 19,350-crore offer for the sale. The report further states that the deal will be closed by the end of March.
Dilip Buildcon receives LoA for two HAM projects in Karnataka
Dilip Buildcon Limited has received the Letter of Acceptance (LoA) for two Hybrid Annuity Mode (HAM) projects worth Rs 2,439 crore in Karnataka. The scope of the first project involves four laning of the Bangalore to Malur section of Bangalore-Chennai Expressway. The second project is for four-laning the Malur to Bangarpet section of Bangalore-Chennai Expressway. Both projects are to be completed within 24 months.
Sun Pharma’s subsidiary to acquire Australia-based WRS Bioproducts
Sun Pharmaceutical Industries announced that one of its wholly-owned subsidiaries will acquire 4.28 lakh equity shares (or 12.5% stake) of Australia-based WRS Bioproducts. The consideration to be paid for acquiring the stake will be AUD 2 million (~Rs 11.21 crore). WRS Bioproducts is engaged in developing novel technologies to produce and commercialise supplements and nutraceutical ingredients from diverse algae species in Australia. Sun Pharma expects to complete the acquisition by March 15, 2021.
PVR opens new six-screen property in Mysuru
Multiplex operator PVR Limited announced the launch of a new six-screen property in Mysuru, Karnataka. The latest PVR Cinemas in Mysuru spreads across an area of 32,240 sq feet and can accommodate a total of 1,078 audiences. PVR said the new property features advanced cinematic technological solutions that offer a holistic movie-going experience. With this opening, PVR now operates 844 screens at 177 properties in 71 cities across India and Sri Lanka.
Shilpa Medicare gets USFDA approval for Apremilast Tablets
Shilpa Medicare has received tentative approval from the US Food and Drug Administration (USFDA) for Apremilast Tablets- 10 mg, 20 mg, and 30 mg. The tablets are indicated for the treatment of psoriatic arthritis. According to IQVIA MAT 2020 data, the US market for Apremilast Tablets is approximately $2.4 billion (~Rs 17,541 crore).
Coal India declares second interim dividend of Rs 5 per share
The Board of Directors of Coal India Limited (CIL) has approved the payment of a second interim dividend for the financial year 2020-21 of Rs 5 per share. The record date for the same has been fixed as March 16. The date of payment of the interim dividend is March 24. CIL has also revised its capital expenditure (capex) plans to Rs 13,000 crore from Rs 10,000 crore after the government asked the company to push expenditure to spur demand in the post-lockdown period.
RailTel Corp launches WiFi facilities at 4,000 railways stations; secures order worth Rs 25 crore from BSNL
RailTel Corporation of India has started monetising its WiFi facilities at railway stations by launching high-speed prepaid WiFi at over 4,000 railway stations across India. The scheme is expected to bring additional revenue of Rs 15 crore per annum to the company. RailTel has also selected Margo Networks, a subsidiary of Zee Entertainment Ltd, to provide Content-on-Demand (CoD) services in trains and railway stations.
In other news, RailTel Corp has received an advance purchase order amounting to Rs 25.46 crore per annum from Bharat Sanchar Nigam (BSNL). The scope of work consists of the commissioning of point-to-point links. The advance purchase order issued for the work will be valid for one year and further extendable by two years.
Wipro to acquire UK-based consultancy firm Capco for $1.45 billion
IT major Wipro Limited said it will acquire UK-based management and technology consultancy firm Capco for $1.45 billion (~Rs 10,550 crore). Capco serves financial institutions across the Americas, Europe, and Asia-Pacific regions. This acquisition will make Wipro one of the largest end-to-end global consulting, technology, and transformation service providers to the banking and financial services industry.
Ashoka Buildcon to acquire 49% stake in Ashoka Highways for Rs 36 crore
Ashoka Buildcon Ltd has entered into a share purchase agreement (SPA) with India Infrastructure Fund (IIF) for purchasing a 49% stake held by IIF in Ashoka Highways (Bhandara). The aggregate consideration to be paid for acquiring the stake is Rs 35.98 crore. The completion of the transaction is subject to approvals from the National Highways Authority of India (NHAI). Ashoka Buildcon currently holds 9 shares in Ashoka Highways (Bhandara).
TCS partners with VodafoneZiggo to accelerate its fixed fiber network rollout
Tata Consultancy Sevices (TCS) has expanded its strategic partnership with VodafoneZiggo B.V. Netherlands to accelerate its fixed fiber network rollout. TCS will deploy artificial intelligence (AI), machine learning technology, as well as TCS Twin— its digital twin solution for enterprises— for the rollout of VodafoneZiggo’s business-to-business (B2B) fixed fiber network. This will enable superior connectivity for subscribers and a faster launch of new services.
Dilip Buildcon receives LoA from Mahanadi Coalfield for mining project in Odisha
Dilip Buildcon Ltd has received a Letter of Acceptance (LoA) for a mine developer cum operator (MDO) contract from Mahanadi Coalfield Limited. The scope of work consists of the development and operation of the SIARMAL Open Cast Project in Odisha. The value of the contract is Rs 36,819.07 crore. The contract period is 25 years.
IEX reports 50% YoY volume growth in February
Indian Energy Exchange (IEX) announced that its electricity market registered a volume of 6,769 million units (MU) in February 2021. This is a 50% growth as compared to February 2020. The company said that the robust growth in volume indicates that IEX’s electricity market is clearly positioned as the most preferred option for distribution utilities and industrial consumers to source electricity for addressing the demand-supply balance.
MTAR Technologies IPO subscribed 10.27 times on second day of bidding
The Rs 596.41-crore initial public offering (IPO) of MTAR Technologies was subscribed 10.27 times on the second day of bidding. The issue received bids for 7.45 crore equity shares against an offer size of 72.60 lakh shares. The portion reserved for retail investors was subscribed 16.55 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 8.04 times. Qualified institutional buyers (QIBs) have put in 96% bids against their reserved portion.
Alembic Pharma’s JV Aleor Dermaceuticals gets USFDA approval for Testosterone Gel
Alembic Pharmaceuticals said its joint venture (JV) firm Aleor Dermaceuticals has received final approval from the US Food and Drug Administration (USFDA) for Testosterone Gel. The product is used for replacement therapy in adult males for conditions associated with deficiency of testosterone. According to IQVIA data, Testosterone Gel had sales of approximately $86 million (~Rs 626 crore) for the 12 months ending December 2020.
GE Shipping buys secondhand bulk carrier of about 56,103 dwt
Great Eastern (GE) Shipping Company Ltd has signed a contract to buy a secondhand Supramax Bulk Carrier of about 56,103 deadweight tonnage (dwt). The 2013 Japanese-built vessel is expected to join the company’s fleet in the first quarter of the upcoming financial year (Q1 FY22). Mumbai-based GE Shipping is India’s largest private sector shipping service provider.
NBCC (India) Limited has signed a Memorandum of Understanding (MoU) with Rashtriya Ispat Nigam Ltd (RINL) for the redevelopment and monetisation of 22.19 acres of land parcels at Maddilapalem, Visakhapatnam. The company will be paid Project Management Consultancy (PMC) fee at 7% of the estimated/approved project cost or actual project cost.
Max Healthcare launches QIP to raise around Rs 1,200 crore
Max Healthcare Institute Limited has launched a qualified institutional placement (QIP) to raise around Rs 1,200 crore. The floor price of the QIP has been fixed at Rs 190.40 per share. The company will utilise the funds raised from the QIP for meeting its capital expenditure and working capital requirements. The funds will also be used for repayment of debt and other general purposes.
India’s services activity expanded at the fastest rate in a year in February. This was driven by an extended robust recovery in domestic demand. However, employment had fallen further and overall input costs increased last month. The IHS Markit Purchasing Managers’ Index (PMI) for services stood at 55.3 in February, compared to 52.8 in January. PMI is a month-on-month calculation and a value of more than 50 represents an expansion when compared to the previous month.
Tata Power to develop 15 MW solar project for Tata Steel in Jamshedpur
TP Saurya, a wholly-owned subsidiary of Tata Power Ltd, has signed a Power Purchase Agreement (PPA) with Tata Steel Ltd (TSL) to develop a 15 megawatt (MW) solar power project in Jamshedpur, Jharkhand. The energy will be supplied to TSL under the PPA, which is valid for a period of 25 years from the scheduled commercial operation date. The project will be commissioned within 6 months.
SpiceJet partners with WheelTug for reserving electric taxi system production slots
SpiceJet Limited has partnered with WheelTug Plc for reserving 400 production slots for the electric taxi system. This system allows SpiceJet to move an aircraft forward or backward without powering its engines or using external tugs. It will help the airline in saving fuel, cut costs, and also reduce carbon emissions.
MTAR Tech IPO subscribed 3.68 times on first day of bidding
The Rs 596.41-crore initial public offering (IPO) of MTAR Technologies was subscribed 3.68 times on the first day of bidding. The issue received bids for 2.67 crore equity shares against an offer size of 72.60 lakh shares. The portion reserved for retail investors was subscribed 6.93 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 1.02 times.
Infosys secures $500 million deal from Google: Report
As per a report from Economic Times, Infosys Limited has won a nearly $500 million (~Rs 3,640 crore) deal from Alphabet Inc.’s Google to provide customer experience and engineering support for its products. The report states that this is “one of the largest all-digital deals” in customer experience services.
Mahindra Logistics Ltd (MLL) has signed an agreement with Bajaj Electricals Ltd (BEL) to handle its end-to-end logistics network and solutions. The total contract value will be over Rs 1,000 crore over the next 5 years. MLL has developed a fully redesigned and consolidated logistics network for BEL. The network includes storage optimization, transportation management, and inventory movement services.
Power Mech Projects secures multiple orders worth Rs 734 crore
Power Mech Projects Ltd announced that it has received Letters of Award (LoAs) for orders worth Rs 734 crore. The construction firm has won an order worth Rs 401 crore for the operation and maintenance of boilers & auxiliaries and other miscellaneous works of the 4×660 megawatt (MW) Thermal Power Plant of Vedanta Ltd in Jharsuguda, Odisha. The company has also won an order of Rs 198 crore for engineering, procurement, and construction (EPC) works for Kurmitar Iron Ore Mining Pvt Ltd in Odisha.
Kalpataru Power Transmission secures orders worth Rs 1,554 crore
Kalpataru Power Transmission Ltd has secured orders worth Rs 1,554 crore. The orders include those from India, the Commonwealth of Independent States (countries such as Azerbaijan, Armenia, Georgia, etc), and Latin America in the power transmission business. The company’s international subsidiary has also received new power transmission projects in Europe.
Bank of Baroda has raised Rs 4,500 crore through a qualified institutional placement (QIP). The capital raising committee of the bank’s board has approved the issue and allotment of 55.07 crore equity shares to eligible qualified institutional buyers (QIBs) at Rs 81.70 per share. The issue had opened on February 25 and closed on March 2.
RPP Infra Projects said it has won four work orders worth Rs 1,000 crore. The company has received an order from the Tamil Nadu Water Supply and Drainage Board for Rs 131.14 crore. It has also bagged an order worth Rs 558.66 crore from the Highways Department as part of the Chennai-Kanyakumari Industrial Corridor project. The third order is from the Chennai Municipal Corporation’s Storm Water Drain department, which is worth Rs 187.14 crore. The fourth order is from the Water Resource Department, Tamil Nadu for the renovation, extension, and modernisation of the Lower Bhavani Project main canal in Erode District worth Rs 123.07 crore.
Covid-19 did initially decrease the pace of IPOs in 2020 but 2021 is proving to be completely opposite. Many companies are taking the public route this year and hopefully would have earned a lot in an oversubscribed IPO as well. Do tell us if you are one of those lucky investors who are enjoying profits and are investing in Railtel’s IPO. For now, let’s discuss a very unique company that has launched its IPO today and the market is already discussing it in length, which is MTAR Technologies.
About MTAR Technologies
MTAR Technologies are a leading national player in the precision engineering industry. The company is engaged in the manufacture of mission-critical precision components. Most of the projects in which MTAR Technologies deals are of very high importance to the nation in terms of security. They hold a rich history to contribute to the Indian Civilian Nuclear Power program, Indian Space program, Indian Defence and Global Defence.
Since the inception of the company in 1970, it has grown massively to aid government agencies and add them to its client list. Currently, MTAR Technologies cater to the needs of esteemed clients like ISRO, NPCIL, DRDO, Bloom Energy, HAL, VSSC, Rafael, Elbit and others.
Currently, MTAR Technologies hosts 7 modern state-of-the-art manufacturing facilities. Their key products include the manufacturing or assembling of Liquid propulsion engines to space programmes and defence programmes including GSLV Mark III, Base Shroud Assembly & Airframes for Agni programs, Actuators for LCA, power units for fuel cells and others. In all, they offer 14 kinds of products in the nuclear sector, six kinds of products in the space and defence sectors and three kinds of products in the clean energy sector.
About the IPO
The IPO of MTAR Technologieswill open on 3rd March 2021 and will close on 5th March 2021. The total issue size of the IPO is Rs 596.41crore. The fresh issue aggregates up to Rs 123.52 crore whereas the Offer for sale aggregates up to Rs 472.90 crore. The price band of the IPO is Rs 574 – Rs 575 per equity share. You have to apply for a minimum of 26 Shares which is one lot.
The upper limit to the number of lots you can apply for is 13, which means, 338 shares. The minimum an investor has to pay for this IPO of MTAR Technologies is Rs 14,900. Similarly, the maximum one can invest in is Rs 1,94,350. Currently, the promoters of the company have 62.24% of the total holdings. After the IPO, this will decrease to 50.25%. Just above the 50% mark so that they remain the highest stakeholder. The allotment date and listing date for the IPO are 10th Match 2021 and 16th March 2021 respectively.
MTAR Technologies plans touse the net proceeds from the IPO in three ways. Firstly, the amount will be used to partly or fully repay the company’s borrowings. Secondly, to finance their working capital requirements. Lastly, the remaining sum will be used to meet general corporate purposes.
Financial Overview
.
30 December 2020
31 March 2020
31 March 2019
31 March 2018
Total Assets
381.91
346.27
305.15
281.03
Total Revenue
177.99
218.14
185.91
160.54
Profit after Tax
28.06
31.31
39.19
5.42
(Values in Rs Crore)
The table suggests that the company has consistently increased its revenue and total assets each year. In FY20, MTAR Technologies failed to generate profits as they did in FY19. One of the main reasons behind this is the lockdown initiated due to Covid-19 cases last year. Till December 2020, that is the third quarter of FY21, the company has done well to generate revenue and profits. If they can end FY21 on a high, they will beat their numbers from last year.
MTAR Technologies has a lower return on equity of 13.61% as compared to GMM Pfaudler’s 23%, which can be considered as one of its indirect competitors. Both companies are into precision manufacturing of components but for different industries. But when it comes to Net Profit Margin(NPM) and Operating Profit Margin(OPM), MTAR Technologies beats GMM Pfaudler. The former has an NPM and OPM of 15.77% and 20.3% as compared to the latter’s 12% and 19.48% respectively.
The primary reason for the company to take the public route is to repay its borrowings. But it has a very low debt-to-equity ratio of 0.18. After the IPO, this ratio will fall further. Lesser the debt on the company, the lesser the risk for the investors.
Risk Factors
As said before, MTAR Technologies features in the precision engineering industry which is used by a very limited number of customers. These are specially engineered products that are required by only some specific entities. Thus, the customer range is small.
The company’s brand image and financials highly depend on the orders from the NPCIL, ISRO and DRDO. A decline in orders from these known government institutions or a change in policy from the government can highly impact MTAR Technologies business.
They don’t have long-term contracts with their customers. Thus, if they choose to buy from an alternate seller, the company will face a reduction in total revenue.
As the company is engaged in highly secretive work for some sectors, they have to undergo strict quality standards. If they fail to make accurate and precise products, the company will lose its customers.
IPO Details in a Nutshell
IPO Date
March 3, 2021 – March 5, 2021
Issue Type
Book Built Issue IPO
Face Value
Rs 10 per equity share
IPO Price
Rs 574 to Rs 575 per equity share
Lot Size
26 Shares
Offer for Sale (goes to promoters)
Aggregating up to Rs 472.90 crore
Fresh Issue (goes to the company)
Aggregating up to Rs 123.52 crore
Issue Size
Aggregating up to Rs 596.41 crore
Listing At
BSE, NSE
IPO Listing Date
March 16, 2021
Conclusion
MTAR Technologies revenue from the clean energy sector increased from 49% in 2018 to almost 65% in 2020. This shows that as the demand for clean energy will increase in the future, MTAR Technologies will benefit more. The rest of the revenue share comes from the defence manufacturing and nuclear sector.
As we all are aware that our national government is keen to bring manufacturing of defence within India rather than importing products. Thus, initiatives like this will surely benefit MTAR Technologies in the future. Also, with governments around the world once again pushing for dominance in space, companies like MTAR will
Yes, it has some cons but in my view, this company is expected to have a robust future. So we will be applying for the IPO. My gut feeling says that this IPO will be oversubscribed, but my guess is as good as yours! Do your own analysis about the company and let us know in the comments section if you find any other interesting information. MTAR Technologies 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!
CBI registers cases filed by SBI, Canara Bank over Rs 8,000 crore fraud
The Central Bureau of Investigation (CBI) has registered two separate cases filed by Canara Bank and State Bank of India regarding fraud to the extent of Rs 7,926.01 crore and Rs 313.79 crore, respectively. The first case was registered against a Hyderabad-based private company, its Chairman & Managing Director, additional Directors, and unknown public servants, on a complaint filed by Canara Bank. It was alleged that the private firm had availed credit facilities using multiple banking arrangements.
The second case was registered against a private company in Chennai, along with its Chairman and Directors, on a complaint by the State Bank of India. It was alleged that the borrower company availed credit limits of about Rs 310 crore from SBI. The loan amounts were said to have been diverted to related parties.
PM Modi presents ASSOCHAM Centenary Award to Ratan Tata
Prime Minister Narendra Modi presented the ‘ASSOCHAM Enterprise of the Century Award’ to Ratan Tata, who received the award on behalf of the Tata Group. PM Modi stated that ASSOCHAM and the entire Tata group has worked very hard to strengthen India’s economy and help the common Indian. Ratan Tata has been honoured for his distinguished contributions to the country. PM Modi was delivering the keynote address at ASSOCHAM’s Foundation Week. [ASSOCHAM stands for the Associated Chamber of Commerce of Inda].
Apple puts Wistron on probation, confirms lapses in supplier code of conduct
Apple Inc. has placed Wistron Infocomm Manufacturing Pvt Ltd on probation and has confirmed lapses in Wistron’s supplier code of conduct that led to payment delays for the employees. This comes on the back of the violence last Saturday, when thousands of employees created unrest in Wistron’s facility in Karnataka, over unpaid dues. Apple stated that Wistron will not receive any new business from the company before they complete corrective actions.
Apollo Hospitals plans to raise Rs 1,500 crore in next two months
Apollo Hospitals Enterprises Ltd (AHEL) is planning to raise around Rs 1,500 crore in the next two months to support its inorganic growth and strengthen its balance sheet. The funds will also be utilised to improve the services of Apollo 24/7, the company’s digital health platform. AHEL also stated that it is preparing to acquire specific businesses to strengthen its presence in key markets.
Vodafone Idea launches Rs 399 digital exclusive prepaid and postpaid plans for new users
Vodafone Idea (Vi) has launched a new Rs. 399 digital exclusive plan for customers who place an order for a new SIM via its website. The new plan is listed under both prepaid and postpaid plans. The Rs 399 plan comes with data benefits. It has a validity of 56 days and offers 100 SMS per day to the users. The plan also comes with 1.5 GB mobile data per day. Additional benefits include access to Vi Movies and TV.
IIFL Home partners with ICICI Bank to provide affordable housing and MSME loans
IIFL Finance Ltd announced that its home loan subsidiary, IIFL Home, has partnered with ICIC Bank to provide affordable housing and MSME (Micro, Small, and Medium Enterprise) loans. IIFL Home will originate and service customers through the entire loan life-cycle including sourcing, documentation, collection & loan servicing. ICICI Bank will provide funding to these customers
IndiGrid buys FRV’s solar projects for Rs 660 crore
India Grid Trust (IndiGrid) has entered into an agreement to acquire 100% stakes in FRV Andhra Pradesh Solar Farm-I Pvt Ltd and FRV India Solar Park II Pvt Ltd, from FRV Solar Holdings XI B.V. The two projects comprise 50 MW of solar assets each. The enterprise value of the acquisition is Rs 660 crore. IndiGrid is India’s first listed power sector infrastructure investment trust (InvIT) and is sponsored by KKR and SPGVL.
Indian banks pursue UK bankruptcy order against Vijay Mallya
A consortium of Indian banks led by the State Bank of India (SBI) returned to the High Court in London for a bankruptcy application hearing against liquor tycoon Vijay Mallya. The banks are pursuing the recovery of debt from loans paid out to his now-defunct Kingfisher Airlines. Vijay Mallya owes more than Rs 9,000 crore to the Indian banks.
MTAR Technologies Ltd has filed a draft red herring prospectus with market regulator SEBI for an initial public offering (IPO). The company is likely to raise Rs 600-650 crore through the IPO. It will consist of a fresh issue of up to 40 lakh shares and an offer for sale (OFS) of up to 82 lakh shares of the face value of Rs 10 per share.
MTAR Technologies is engaged in the manufacturing and development of mission-critical precision components for the nuclear, space, defense and clean energy sectors. The Hyderabad-based company operates 7 manufacturing facilities.
Punjab National Bank QIP issue falls short of target by 46%
State-owned Punjab National Bank (PNB) was only able to secure 54% of its planned fundraising target through a qualified institutional placement (QIP). PNB had planned to raise Rs 7,000 crore through the QIP that had opened on December 15 (Tuesday). As the issue closed on Friday, it was reported that PNB was only able to raise Rs 3,788.04 crore.
