Trading in The Zone

25/02/2024

- Next week, six IPOs are set to hit the Dalal Street, with five companies scheduled for listing.

- Juniper Hotels, owned by Saraf Hotels and Hyatt Hotels Corporation, will debut on February 28, and GPT Healthcare equity shares will commence trading from February 29.

- The primary market's momentum mirrors the positive trend in the secondary market, highlighted by the Nifty 50 reaching a historic high recently.

- The IPOs include offerings from various sectors, such as stabilizers production, electric vehicle charging solutions, infrastructure investment trust, metals and minerals processing, packaging solutions, and sugar production.

- Notable IPOs include Platinum Industries, Exicom Tele-Systems, Highways Infrastructure Investment Trust, Owais Metal and Mineral Processing, Purv Flexipack, and MVK Agro Food Product.

- Juniper Hotels' IPO was subscribed 2.08 times, while GPT Healthcare's IPO shares were available at an 8 percent premium over the upper price band.

- Zenith Drugs, Deem Roll Tech, and Sadhav Shipping are scheduled to debut in the SME segment on NSE Emerge.

- Investors are advised to consult certified experts before making investment decisions.

24/02/2024

What is QIP, why is it a preferred route for companies to raise funds?

QIBs are public financial institutions, scheduled commercial banks, mutual funds, insurance companies, foreign portfolio investors, and foreign institutional investors

**Summary of Qualified Institutional Placement (QIP):**

1. **Definition:** QIP is a capital-raising tool for listed companies to raise funds from Qualified Institutional Buyers (QIBs) by issuing fresh equity shares, convertible debentures, or other securities.

2. **QIBs:** Qualified Institutional Buyers include public financial institutions, commercial banks, mutual funds, insurance companies, foreign portfolio investors, and foreign institutional investors.

3. **Exclusion:** Retail investors and High Net Worth Individuals (HNIs) cannot invest in QIPs.

4. **Advantages for Companies:** QIP offers a quicker and less complex process compared to Follow-On Public Offerings (FPOs) or rights issues. QIBs' long-term perspective aids in price stability.

5. **Promoter Participation:** Promoters cannot participate in QIPs.

6. **Minimum Institutional Buyers:** At least five buyers are required for issues over Rs 250 crore, with no single buyer allotted more than 50% of the stake. For smaller issues, a minimum of two buyers is required.

7. **Pricing Basis:** The issue price must be at least the average of the weekly high and low closing prices over the past few weeks to prevent undervaluation.

8. **Premium Pricing:** While the issue can be priced at a premium, QIBs often negotiate for discounts to avoid driving up stock prices.

9. **Lock-in Period:** Securities allotted in a QIP are subject to a six-month lock-in period to ensure participation from medium to long-term investors.

Overall, QIP serves as an efficient and attractive capital-raising avenue for companies, facilitated by institutional investors, with measures in place to ensure fair pricing and investor commitment.

22/02/2024

- Hyundai Motor plans a $3 billion IPO in India to expand in a rapidly growing market and address the "Korea discount" affecting its domestic valuation.

- This IPO, potentially the largest in India, marks Hyundai's first listing outside South Korea.

- Despite the potential benefits of listing in India, analysts caution that resolving the "Korea discount" may not be straightforward.

- While the IPO could improve fundraising and enhance Hyundai's brand image in India, some analysts doubt it will fully address the underlying issues contributing to the discount.

- Hyundai is currently India's second-largest carmaker, trailing Maruti Suzuki with a 15% market share.

18/02/2024

Trading doesn't just reveal your character, it also builds it if you stay in the game long enough.

Yvan Byeajee

18/02/2024

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17/02/2024

**Sadhav Shipping IPO Summary:**

- **Company:** Sadhav Shipping Limited
- **IPO Opening:** Scheduled for February, 23.
- **Funds to be Raised:** Rs 38.18 crore
- **New Shares Issued:** 40.19 lakh
- **Bidding Deadline:** February 27
- **Price Band:** Rs 95 per share
- **Lot Size:** 1200 shares
- **Listing Date:** March 1 on NSE SME
- **Lead Manager:** Isk Advisors Pvt Ltd
- **Registrar:** Mansh*tala Securities Pvt Ltd
- **Reservation:** 50% for retail investors, 50% for other investors.

Investors have until February 27 to bid for shares at Rs 95 per share, with a lot size of 1200 shares. Sadhav Shipping aims to raise Rs 38.18 crore through this IPO, with the listing scheduled for March 1 on NSE SME. Isk Advisors Pvt Ltd is the book running lead manager, while Mansh*tala Securities Pvt Ltd is the registrar. 50% of the IPO is reserved for retail investors, while the remaining 50% is for other investors.

17/02/2024

Life Insurance of India (LIC) of India on February 16 said it received refund orders for Rs 21,740.77 crore from the Income Tax Department.

LIC had received refund orders for Assessment Years 2012- 13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19 and 2019-20, the company said in a release. The total amount of refund was Rs 25,464.46 crore.

“In this regard, the Income tax Department has released Rs 21,740.77 crore on 15.02.2024. The Corporation is pursuing for the balance with the Income Tax Department,” the country's largest insurer said.