Trends in Secondary Markets:

  • The markets tumbled during September 2022 with BSE Sensex falling around -5.25% to close at 56,409.96 and Nifty closing at 17,094.35.
  • The domestic equity market remained low as the global cues remained unfavorable due to monetary tightening and the possibility of a global recession.

  • After infusing money in July and August, FIIs again turned net sellers in September to protect their dollar gains as the rupee is depreciating. FIIs divested Rs. 7624 Crore from equity as against investment of Rs. 51204 Crore in equity in August 2022.

 

Equity Markets

Aug-22

Sep-22

% Change

BSE Sensex

59,537.07

56,409.96

-5.25%

Nifty 50

17,759.30

17,094.35

-3.74%

BSE 500

24,437.22

23,278.09

-4.74%

BSE Healthcare

23,013.78

23,185.31

0.75%

BSE IT

28,914.80

27,263.67

-5.71%

BSE FMCG

15,954.27

16,152.02

1.24%

BSE Metal

19,166.08

17,548.61

-8.44%

 

 

Primary Market Update:

There were as 2 main board IPOs in September, 2022 against 2 main board IPOs in August, 2022 of there were as 2 main board IPOs of Tamilnad Mercantile Bank and Harsha Engineers in September, 2022 against 2 main board IPOs in August of DreamFolks and Syrma SGS Technology. There were 7 SME IPOs in September as against one SME IPOs in August 2022

 

Harsha Engineers, a TPM certified Precision Engineering Company manufacturing Bearing Cages and Stamped Components. The issue consists of a fresh issue of Rs 455 Crore and an offer for sale of up to Rs 300 Crore by shareholders and promoters. Company said that it will use the funds for repaying existing debt and capital expenditure. The Rs 755 Crore issue was subscribed nearly 75 times. Stock made a strong debut with listing at Rs. 450, 36% over its issue price.

 

Tamilnad Mercantile Bank is a one of the oldest and leading old private sector banks in India with a history of almost 100 years. The Rs 807.85-crore initial public offering (IPO) of Tamilnad Mercantile Bank, was sold in the range of Rs 500-525 apiece. IPO received a dull response from investors and after listing at a discount of 3% stock further depreciated.

 

Funds Mobilization by Corporates (Crore)

Particulars

Jul-22

Aug-22

I.     Equity Issues

7,516

7,866

a.    IPOs (i+ii)

222

875

i.      Main Board

0

840

ii.    SME Platform

222

34

b.   FPOs

0

0

c.    Equity Rights Issue

59

71

d.   QIPs/IPPs

0

2,000

e.   Preferential Allotments

7,235

4,921

II.   Debt Issues

69,166

45,159

a.    Debt Public Issues

298

279

b.   Private Placement of Debt

68,868

44,880

Total Funds Mobilized (I+II)

76,682

53,025

Acknowledgements: 

RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)

Disclaimer:

This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction. 

#mergersandacquisitions #privateequity #ipo #debt #debtsyndication #valuations #rating #creditrating #financeadvisory #finance #economy #indianeconomy #fundraising #capitalmarket #capital #banking #m&a #ma #pe #initialpublicoffer #businessloan #loan #businessvaluation #registeredvaluer #acquisition #merger #deals #financialdeals #ahmedabad #gujarat #india #ratingadvisory #mergersandacquisitionsahmedabad #maahmedabad #privateequityahmedabad #ipoahmedabad #financeadvisoryahmedabad #stockmarket #primarymarket #secondarymarket