BSE Sensex went up by 2.74% to close at 59,126 in September 2021. Nifty 50 closed at 17,618 higher by 2.84% from 17,132 in August closing. Sensex hit the 60,000 mark for time on 24th September 2021 and reached its lifetime high of 60,244.65. The reasons for bullishness are good economic recovery post 2nd Covid-19 wave, positive global cues, strong inflows by FIIs, surplus liquidity in the system, low interest rates and good results by corporates.
Foreign Portfolio Investors (FPIs) invested Rs.13,154 Crore in the Indian equity markets in the month of September.
Amongst the BSE indices, majority of the indices showed gains with Realty showing 33% gain and consumer durables, utilities, telecom and energy each showing more than 10% gains.
Realty sector has seen steady recovery in last quarter with both residential and commercial segment doing well. Residential sector has seen rising demand due to record low home loan interest rates and schemes offered by realty developers. There is a growing need for home ownership and stable employment in well performing sectors like IT and Healthcare is driving up the residential demand. Commercial space has also seen growth with IT sector especially becoming the largest consumer of office space during the quarter.
Primary market Update:
There were 3 main board IPOs of Sansera Engineering Limited, Ami Organics Limited and Vijaya Diagnostic Centre Limited in September 2021 as against 10 main board IPOs in August 2021 (the highest IPO filings in 17 years). There were 5 SME IPOs of SBL Infratech Limited, Markolines Traffic Controls Limited, Prevest Denpro Limited, PlatinumOne Business Services Limited and Aashka Hospitals Limited in September 2021 as against one SME IPO of Gretex Corporate Services Limited in August.
Initial Public Offers:
Paras Defence and Space Technologies Limited (PDST):
- PDST is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company caters to four segments – Defence & Space Optics, Defence Electronics, Heavy Engineering and Electromagnetic Pulse Protection Solutions.
- Company’s customer base includes defence public sector undertakings such as Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL) and Hindustan Aeronautics Limited (HAL) as well as private companies like Tata Consultancy Services Limited, Alpha Design Technologies Limited and Larsen and Toubro, among others.
- The price band of the IPO was fixed at Rs.165-175 per share. Amount raised was Rs.171 Crore.
- IPO listed at Rs.475 per share at a 171% premium over the issue price of Rs.175 per share.
- Market Capitalization of the company on listing was Rs.1852 Crore.
PDST IPO became the highest subscribed (304 times) IPO in the Indian stock market breaking record of Salasar Techno Engineering which was subscribed 273 time.
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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