BSE Sensex went up by 9.44% to close at 57,552 in August 2021. Nifty 50 closed at 17,132 higher by 8.69% from 15,763 in July closing. Sharp gains were on account of economic recovery, low interest rate environment and strong earnings of corporates in Q1 FY22 with especially strong show by Large caps.
Foreign Portfolio Investors (FPIs) invested Rs. 2083 Crore in the Indian equity markets in the month of August.
Amongst the BSE indices, Almost all the indices showed strong gains with many indices like Power, IT, Telecom, Teck registered more than 10% gains.
China ordered cuts in steel output in the main producing region of Tangshen to control emissions. It has decided to implement ultra-low emissions by reducing crude steel production by 8.8 percent in this year. This move to reduce output of steel by China had a direct impact on global prices of steel and iron ore which led to poor performance by Metal sector.
Primary market Update:
There were 10 main board IPOs of Glenmark Life Sciences Limited, Rolex Rings Limited, Windlas Biotech Limited, Devyani International Limited, Krsnaa Diagnostics Limited, Exxaro Tiles Limited, CarTrade Tech Limited, Nuvoco Vistas Corporation Limited, Chemplast Sanmar Limited and Aptus Value Housing Finance Limited in August 2021 (the highest IPO filings in 17 years) as against 5 main board IPOs in July. There was one SME IPO of Gretex Corporate Services Limited in August as against 2 SME IPOs July.
Performance of these IPOs was mixed as 5 of them were at a premium and 5 of them at a discount, an underperformance compared to June and July’s stunning listing gains of IPOs, largely due to oversupply and aggressive valuations. Global Investors are being prompted to look for new opportunities across Asia as China has imposed restrictions on technology companies. This has contributed to a record jump in initial public offerings from India and other Asian countries.
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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