Trends in Secondary Markets:

  • The BSE Sensex crossed 60,000 and NIFTY crossed level of 18000 in October. The Sensex was up 3,319.67 points or 5.78% at 60,746.59, and the Nifty was up 917.85 points or 5.37% at 18,012.20.
  • The markets chose to ignore the high frequency pressures of inflation and interest rates and focus on the long term potential of the India story.
  • FPIs started out selling aggressively in equities in the first half of month, but turned into net buyers in the second half. FPIs also showed a lot of enthusiasm in investing in the IPOs, both as anchor investors and as QIB investors.
  • Q2 results were in full swing along with the concern over costs. Across the board, companies have seen robust top line growth and the gains for exporting companies from the weak rupee dollar equation.

Equity Markets

Sep-22

Oct-22

% Change

BSE Sensex

57,426.92

60,746.59

5.78%

Nifty 50

17094.35

18012.20

5.37%

BSE 500

23,642.46

24,589.55

4.01%

BSE Healthcare

23,340.50

23,924.28

2.50%

BSE IT

27,488.42

28,930.65

5.25%

BSE FMCG

16,180.06

16,131.19

-0.30%

BSE Metal

18,015.22

19,024.82

5.60%

Primary Market Update:

There were as 2 main board IPOs in October, 2022 against 3 main board IPOs in September, 2022 of there were as 2 main board IPOs of Tracxn Technologies Limited and Electronics Mart India Limited in October, 2022 against 3 main board IPOs in September of DreamFolks, Tamilnad Mercantile Bank and Harsha Engineers. There were 12 SME IPOs in October as against seven SME IPOs in September 2022.

 

Tracxn Technologies Limited, provides market intelligence data for private companies. The company’s global database and customized solutions and features allow its customers to source and track companies across sectors and geographies to address their requirements. The Rs 309 Crore IPO was entirely and offer for sale (OFS) of shares by promoters and investors and was subscribed two times at the close. It was in a price range of Rs 75-80 a share. The IPO opened at a gain of 17.75%.

 

Electronics Mart India Limited is a retail chain of store in consumer durable electronics in the Southern India. The issue consists of a fresh issue of equity shares of Rs 500 Crores for CAPEX and general purposes. The price range for the offer was at Rs 56-59 per share. The company received 71.93 times subscription and listed at Rs. 90 per share, a strong premium of around 50%.

 

Funds Mobilization by Corporates (Crore)

Particulars

Aug-22

Sep-22

I.     Equity Issues

7,866

6,839

a.    IPOs (i+ii)

875

2,414

i.      Main Board

840

2,125

ii.    SME Platform

34

289

b.   FPOs

0

0

c.    Equity Rights Issue

71

298

d.   QIPs/IPPs

2,000

607

e.   Preferential Allotments

4,921

3,519

II.   Debt Issues

45,177

83,088

a.    Debt Public Issues

280

602

b.   Private Placement of Debt

44,897

83,088

Total Funds Mobilized (I+II)

53,043

89,926

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. 

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