Stocks in Focus on January 22: Indigo Paints IPO, Biocon, Indian Energy Exchange, InfoEdge to Asian Paints; here are the 5 Newsmakers of the Day
Sensex hit the 50,000-mark in intra-day trade; while the Nifty posted another intra-day record high. The Sensex at the Bombay Stock Exchange ended with a loss of 167 points, or 0.3 per cent, at 49,625. The Nifty dropped 54 points, to trade at 14,590. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday
Domestic stock markets corrected sharply on Thursday, January 21, 2021, after the Sensex hit the 50,000-mark in intra-day trade; while the Nifty posted another intra-day record high. The Sensex at the Bombay Stock Exchange ended with a loss of 167 points, or 0.3 per cent, at 49,625. The Nifty dropped 54 points, to trade at 14,590. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Friday, January 22, 2021. List of such five stocks:
IPO updates: Indigo Paints + Home First Finance
Indigo Paints IPO: The Rs 1,170 crore initial public offering (IPO) of Indigo Paints was subscribed 7.38 times on the second of subscription, i.e. on January 21, 2021. The retail quota was subscribed 10.38 times, the NII and employee quota were subscribed 5.38 times and 1.81 times, respectively. The Qualified Institutional Buyers (QIB) portion saw 3.86 times subscription.
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Today is the last day for subscription. Indigo Paints has fixed the price band of the share sale at Rs 1,488-1,490 a share. Investors can bid for a minimum one lot of 10 shares and in multiples, extending up to 13 lots. The IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares worth Rs 870 crore. Post-IPO, the shareholding of the promoter will come down to 54 per cent, from 60.05 per cent.
Home First Finance IPO: The Rs 1,154 crore initial public offering (IPO) of Home First Finance was subscribed 1.04 times on the first day of subscription today, i.e. January 21, 2021. The retail quota was subscribed 1.29 times, while the NII and QIB portion were subscribed 0.13 times and 1.28 times, respectively. Today is the second day for the subscription of the offer and the offer will end on January 25, 2021.
The IPO comprises a fresh issue of Rs 265 crore and an offer for sale of Rs 889 crore by promoters and existing shareholders. Investors can bid for a minimum one lot of 28 equity shares and in multiples up to 13 lots, in the price band of Rs 517-518 per share. The company has raised Rs 346 crore from 25 anchor investors at Rs 518 per share and anchor book was opened on January 20, 2021. The anchor investors included fund houses like Nomura, Fidelity, CLSA, Morgan Stanley, Goldman Sachs, BNP Paribas, Eastspring, Buena Vista, Grandeur Peak and Moon Capital.
Results: Biocon + JK Tyre + SBI Cards
Biocon: The biopharmaceutical major Biocon Ltd has posted a 16.9% dip on a year-on-year (YoY) basis in its consolidated net profit at Rs 168.5 crore for the third quarter of FY21, owing to its generics business taking a hit along with headwinds across operational, regulatory and commercial functions. The company has posted a net profit of Rs 202.8 crore in the corresponding quarter of the last fiscal. Consolidated revenue from operations grew by 7.8% to Rs 1,851 crore against Rs 1,717 crore reported last year. The Bengaluru-headquartered company has reported an EBITDA of Rs 298.8 crore, down 10.3% from Rs 444.67 crore of last year. The EBITDA margin fell to 21.5% in Q3FY21 against 25.9% posted in Q3FY20.
JK Tyre: JK Tyre & Industries on Thursday reported a 1936.4% YoY rise in the consolidated profit at Rs 224 crore for the quarter ended December 31, 2020, on back of a strong recovery in demand in the automotive space aided by a favourable festive season, increased consumer preference for personal mobility solutions and better-than-expected economic revival. The company has posted a net profit of Rs 11 crore in the corresponding quarter last year. The revenue from operations grew 25.9% to Rs 2769 crore against Rs 2,200 crore reported last year. EBITDA stood at Rs 500.5 crore, up 104.3% from Rs 245 crore.
The margin advanced to 18.1% in Q3FY21 against 11.1% posted in Q3FY20. The company in a statement said, the consolidated sales best-ever sales for any quarter. For the quarter, exceptional items include favourable foreign exchange fluctuations of Rs 40.18 crore.
SBI Cards: SBI Cards and Payment Services Ltd on Thursday reported nearly 51.7% YoY dip in its consolidated profit to Rs 210 crore in the third quarter ended December 2020, on higher provisioning. The company has posted a net profit of Rs 434.7 crore in the corresponding quarter of the last fiscal year. Revenue from operations fell 3.1% to Rs 2,403 crore in the reported quarter against Rs 2,479 crore posted last year. EBITDA stood at Rs 438 crore, down 49.7% from Rs 871 crore posted last year. The margin contracted to 18.2% in Q3FY21 against 35.1% reported in Q3FY20.
Results: Indian Energy Exchange (IEX) + Multi Commodity Exchange of India (MCX)
IEX: Indian Energy Exchange (IEX) on Thursday reported a 39.3% YoY rise in consolidated profit at Rs 58.1 crore for the quarter ended December 31, 2020. It had posted a net profit of Rs 41.7 crore in the corresponding quarter last year. Consolidated revenue from operations grew 42.7% to Rs 85.2 crore in the reported quarter against Rs 59.7 crore posted last year. EBITDA stood at Rs 69.5 crore, up 47.9% from Rs 47 crore reported last year. The margin grew to 81.6% in Q3FY21 against 78.7% posted in Q3FY20. Besides, the board of the exchange has approved an interim dividend of Rs 2.50 per share and record date had been fixed on January 30, 2021.
Multi Commodity Exchange of India (MCX): The Multi Commodity Exchange of India (MCX) on Thursday reported a 29.4% YoY rise in its consolidated profit after tax (PAT) to Rs 71.80 crore for the December 2020 quarter. Its PAT stood at Rs 55.5 crore during the third quarter of 2019-20. Revenue from operations grew 7.3% to Rs 101 crore against Rs 94.1 crore posted last year. EBITDA stood at Rs 48.7 crore, up 10.7% from Rs 44 crore posted last year. The margin grew to 48.2% in Q3FY21 against 46.8% posted in Q3FY20.
InfoEdge: Investors are likely to make a fresh investment of $500 million in Zomato, which is being regarded as pre-IPO funding. With this funding, the company's valuation will reach to around $5.5 billion, reports. With the fresh capital, Zomato is expected to have $1 billion in cash. The company has plans to bring an IPO in June 2021. Besides, the company seeks to some stakes of Ant Group through the IPO and after the stake sale, InfoEdge will emerge as the largest shareholder in Zomato with an estimated holding of about 17%.
Asian Paints + SRF:
Asian Paints: Expects demand conditions to remain strong in Q4FY21. The company will wait to see if raw material prices sustain at these levels before taking a call on any price changes.
SRF Update: All business segments returned to normal operations. Speciality Chemicals business did well owing to strong demand from the overseas market, higher capacity utilization and significant cost-savings. Fluorochemicals business saw a revival in demand for refrigerants. New capacities in Thailand and Hungary aided volume growth and both BOPET and BOPP segments witnessed the robust performance. Technical textiles business did well aided by faster-than-expected recovery in the tyre industry.
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