Secondary Market:
- The BSE Sensex closed at 74,483 up by 1.13% and the Nifty 50 closed at 22,605 up by 1.24% in April 2024.
- Foreign portfolio investors (FPIs) recorded net outflows of Rs 16,260 Crores. Conversely, domestic institutional investors (DIIs) reported net investments of Rs 44,186 Crores.
- In the month of April, Crude Oil prices and also the dollar index was impacted. The dollar index, a barometer of dollar strength, sobered to below the 105 levels, which was positive for the rupee and consequently for FPI flows too. While, a spike in US crude inventories and expectations of record supplies by the US pulled down the price of crude oil sharply.
- The decline in IT Indice is attributed to the persisting weakness in the global demand environment which keeps the outlook for the sector hazy.
- And, the major surge in metal stock indice is due to growth in manufacturing sector of China increasing the global demand of metals as it stands being the world’s largest metal consumer.
Primary Market Update:
There were 03 main board IPOs in April 2024 of Bhart Hexacom Limited, SRM Contractors Limited and JNK India Limited as against 08 main board IPOs in March 2024. There were 08 SME IPOs in April 2024 as against 07 SME IPOs in March 2024.
Bharti Hexacom Limited:
|
About the Company |
Established in July 1995, Bharti Hexacom Limited is a telecommunications provider offering consumer mobile services, fixed-line telephone and broadband services to customers that operates in the North Eastern and Rajasthan circles of India under the Airtel brand. Bharti Airtel is the promoter company and holds 70% of the company’s equity shares. Bharti Hexacom Limited’s revenue increased by 7.75% to Rs. 7,089 Crores and EBITDA Margin increased from 43.5% to 49% during the financial year 2024. |
|
Funds Utilization |
The company’s RHP stated no fresh issue component to the Bharti Hexacom IPO and but solely an offer-for-sale (OFS). The company’s selling stakeholder, Telecommunications Consultants India, intended to sell off 7.5 crore equity shares, or 15% of the OFS. Since, OFS Section was the only part of IPO, there will be no fund raising from the issue but instead all the offer proceeds were received by selling stakeholder, TCIL. |
|
IPO Performance |
The initial public offer (IPO) of Bharti Hexacom Limited was subscribed over 29.88 times by the end of third day. QIB’S subscribed the most at 48.57 times to the issue, followed by NII’s at 10.52 times and retail investors at 2.83 times. The shares made a stellar debut on Dalal Street as the shares got listed at a premium of 32.5% on NSE at Rs. 755 as against the IPO price of RS. 570. On BSE, the stock listed at Rs. 755.2, up by 32.49%. |
Funds Mobilization by Corporates (Rs. In Crore)
|
Particulars |
Feb-24 |
Mar-24 |
|
I. Equity Issues |
20,869 |
15,165 |
|
a. IPOs (i+ii) |
7,684 |
3,829 |
|
i. Main Board |
6,920 |
3,115 |
|
ii. SME Platform |
764 |
714 |
|
b. FPOs |
0 |
27 |
|
c. Equity Rights Issues |
7,959 |
420 |
|
d. QIPs/IPPs |
3,400 |
8,388 |
|
e. Preferential Allotments |
1,826 |
2,501 |
|
II. Debt Issues |
81,793 |
1,01,770 |
|
a. Debt Public Issues |
517 |
703 |
|
b. Private Placement of Debt |
81,276 |
1,01,067 |
|
III. REITs/ InvITs |
880 |
12,024 |
|
a. REITs |
0 |
0 |
|
b. InvITs |
880 |
12,024 |
|
Total Funds Mobilized (I+II+ III) |
1,03,542 |
1,28,932 |
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