Adani's Dubai Firm to Acquire ITD Cementation for ₹3,204Cr

• Q2 Results: Shares of ICICI Bank, IDFC First Bank, Yes Bank, JK Cement, REC Ltd, and Coal India will be closely watched on October 28 after their Q2FY25 results were announced, while several other companies, including Adani Power and Bharti Airtel, are set to report their results in the coming week.

• FII Activity: Foreign institutional investors (FIIs) sold equities worth ₹20,025 crore last week, while domestic institutional investors (DIIs) purchased equities worth ₹22,914 crore. In October, FIIs experienced significant outflows of about ₹1 lakh crore, whereas DIIs bought approximately ₹97,000 crore in equities.

• No New Mainboard IPOs: No new IPOs are planned for this week due to weakness in the equity market affecting primary market sentiment.

• The Indian stock market experienced a broad selloff on Friday, October 25, with the Sensex and Nifty 50 falling nearly 1% each, and mid- and small-cap stocks dropping by 2%.

• Experts attribute this market decline mainly to aggressive selling by foreign portfolio investors (FPIs), who offloaded Indian equities worth over ₹98,000 crore in October.

• FPIs have been reallocating funds to Chinese stocks, drawn by the more attractive valuations there after Beijing implemented measures to support its struggling capital markets.

Godrej Consumer Products +2.94%

• Godrej Consumer Products shares increased by up to 6% intraday after several brokerages issued positive recommendations following the company's second-quarter earnings.

• The firm reported a 13% year-on-year rise in net profit to ₹491 crore, while revenue grew by 2% to ₹3,666 crore.

IndusInd (18.99%)

• IndusInd Bank shares fell nearly 20% after the bank reported a substantial 39% decline in its consolidated net profit for the second quarter, down to ₹1,331 crore.

• Additionally, the bank's net interest margin (NIM), a crucial profitability metric, also decreased, signalling pressure on margins.

• The RBI is taking an aggressive approach in the currency market for FY25. (ET)

• Sebi has issued a notice to Axis Bank regarding its stake purchase in Max Life Insurance. (BS)

• Multi-asset funds are attracting increased interest, with inflows more than doubling. (ET)

• S&P warns that higher rates and rising credit costs will temper profits for microfinance companies. (ET)

• IRDAI has tightened fraud regulations following recent hacking incidents. (ET)

• Bankers suggest modifying rules to enable same-day settlement of FPI trades. (ET)

• Swiggy has reduced its IPO valuation to $11.3 billion, with investments from BlackRock and CPPIB. (BS)

• Captain Fresh taps Axis Capital, BofA for 2025 IPO to raise Rs 2,943-3364 crore ($350-400Mn). (BW)

• 360 One Wam to raise ₹2,250 crore ($267Mn) through a QIP. (BS)

• Afcons Infra IPO received a subdued response, with 10% subscription on Day 1. (MC)

• Waaree Energies shares are set to list at a strong premium today. (MC)

• Godavari Biorefineries IPO was subscribed 1.83 times on its final day. (MC)

• Deepak Builders IPO suggests potential double-digit listing gains for investors. (BS)

This week’s mainboard IPO schedule

• Afcons Infrastructure

  • Offering Period: 25 October - 29 October, 2024

  • Listing Date: 01 November, 2024

  • Issue Price: 440-463

  • Lot Size: 32

M&A / Investments

• Adani Group's Dubai-based firm plans to acquire ITD Cementation for ₹3,204 crore ($381Mn). (BS)

• Meituan has sold a stake worth over Rs 1,682 crore ($200Mn) in Swiggy. (EN)

• Societe Generale has sold its stake in IndusInd Bank for Rs 421 crore ($50Mn). (BS)

• Thermax will acquire Buildtech Products India for Rs 72 crore ($8.6Mn). (ET)

• MUFG Bank and Koch Group are seeking approval from the CCI to acquire a stake in Shiprocket. (ET)

• Abhay HealthTech acquires MNP Healthcare to expand in the OTC segment. (ET)

Debt

• Indian Bank has raised Rs 5,000 crore ($594Mn) through long-term infrastructure bonds. (BS)

• TARC has raised Rs 1,000 crore ($118Mn) to refinance its debt. (ET)

VC