Stock Market Update: July 2024

by | Jul 8, 2024 | Insights | 0 comments

Secondary Market:

  • The BSE Sensex closed at 79,033 up by 6.86% and the Nifty 50 closed at 24,011 up by 6.57% in June 2024 thriving the Indian stock market on a record-setting spree driven by positive sentiment, with RBI projecting 7.2% growth and strong 5G auction bids.
  • This month was also marked by significant volatility, with the index fluctuating widely by 2,608 points. The momentum underscores robust investor confidence and optimism, driven by positive economic indicators, expectations of policy continuity, and renewed foreign inflows.
  • In June, FPIs purchased Indian equities worth Rs. 26,565 Crore, marking the second-highest buying spree of 2024. The highest was in March, with Rs. 35,098 Crore in inflows.
  • Despite the market’s bullish trend and multiple new highs, FPIs remained cautious due to uncertainty surrounding the Lok Sabha elections, high valuations, the outperformance of Chinese markets, hawkish stances from central banks, and other global cues.
  • In the month of June, foreign institutional investors (FIIs) were net sellers in power, metals, and FMCG stocks, but bullish on financial services. They sold around Rs 2439 Crore in power, Rs 1128 Crore in metals, and Rs 677 Crore in FMCG. However, domestic funds (DIIs) drove up the markets, with net inflows into equity mutual funds growing month after month.
  • The IT sector performed robustly, driven by strong quarterly earnings and positive guidance from major players like TCS, Wipro, Infosys & others.

Primary Market Update:

There were 05 main board IPOs in June 2024 of Kronox Lab Sciences Limited, Le Travenues Technology Limited, Akme Fintrade (India) Limited, Dee Development Engineers Limited and Stanley Lifestyles Limited as against 05 main board IPOs in May 2024. There were 07 SME IPOs in June 2024 as against 07 SME IPOs in May 2024.  

                                                                                                                      

 Kronox Lab Sciences Limited:

About the Company

Founded in 2008, with large manufacturing facilities, & advanced R&D Department, Kronox Lab Sciences is geared to produce high purity fine chemicals for pharmaceutical, nutraceutical, veterinary, & other specialty markets at the facilities located at Padra, & Baroda, Gujarat. During FY24(Provisional) he company’s revenue fell by 6% to Rs 90 Crore, while PAT increased 24% to Rs 21 Crore. Also, it is a zero-debt company with a strong balance sheet & cash flow position.

Funds Utilization

The IPO is entirely an offer for sale (OFS), of up to 95.70 lakh shares by its promoters to achieve listing benefits, enhanced visibility & brand image, & liquidity to existing Shareholders.

IPO Performance

The Rs. 130.15 Crore IPO issue was subscribed over 117.25 times by the end of the third day. NII’s subscribed the most at 301.92 times to the issue, followed by QIB’s at 89.03 times and retail investors at 54.24 times The price band was set at Rs. 129 to Rs. 136 per equity share. The shares witnessed a robust debut on the bourses on June 10 as it got listed at Rs 164.95 on NSE, a premium of 21 percent over the issue price of Rs 136. On BSE, the stock listed at Rs.165, up by 21.32%.

 

Funds Mobilization by Corporates (Rs. In Crore)

Particulars

Apr-24

May-24

I. Equity Issues

44,544

40,322

a. IPOs (i+ii)

5,727

10,133

i. Main Board

5,055

9,606

  ii. SME Platform

673

527

b. FPOs

18,000

0

c. Equity Rights Issues

1,643

2,155

d. QIPs/IPPs

11,472

3,040

e. Preferential Allotments

7,702

24,993

II. Debt Issues

31,195

62,434

a. Debt Public Issues

687

1,207

b. Private Placement of Debt

30,508

61,227

III. REITs/ InvITs

0

0

a.  REITs

0

0

b.  InvITs

0

0

Total Funds Mobilized (I+II)

75,740

1,02,756

 

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.