Government to Receive Rs 29,000 Crore from IDBI Bank Divestment

Hello,
Markets exhibited significant volatility in early trading yesterday but subsequently gained over 70 basis points, driven by positive earnings expectations for IT stocks. As a result, the Nifty IT Index increased by 2.22% on the day, marking a substantial 15.67% rise over the past month. The RBI has noted that the surge in food inflation has hindered India's disinflation progress. Additionally, the government is expected to realize Rs 29,000 crore from the divestment of IDBI Bank, following the RBI's approval. Meanwhile, Bank of India raised Rs 5,000 crore through the issuance of 10-year infrastructure bonds.

Markets📊 
As of 18/07/2024 Market Close

• The markets exhibited a dichotomy in trends yesterday. The large-cap indices, Nifty 50 and Sensex, reached record highs. The market benchmarks initially showed lacklustre performance but gained momentum in the second half, driven by select IT heavyweights in anticipation of positive June-quarter earnings.

• Experts noted a shift in investment from smaller companies to larger ones, which are considered more stable, especially with the upcoming Union Budget 2024 and amidst market volatility.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

LTIMindtree Ltd +3.48%

• Shares increased by 3.5 percent as investors responded positively to a strong start to FY25, following the company's steady earnings report for the April-June quarter.

• Additionally, the management's optimistic comments, suggesting signs of recovery, further boosted sentiment.

Newgen Software Technologies Ltd (1.63%)

• Shares dropped by nearly 7 percent intraday, reaching an intraday low of Rs 976 on the NSE, following the company's report of a sequential decline in its consolidated net profit and revenue for Q1 FY25.

Yesterday’s Highlights📒 

• India is set to cut its fiscal deficit target in the upcoming budget. (ET)

• The Government asks Big Tech platforms to trial manage age-gating independently. (Mint)

• India's central bank pegs the natural rate higher, with analysts cautioning against policy easing. (RT)

• The home loan market to more than double in the next five years, according to Nomura. (ET)

• Housing prices in the top 30 tier II markets have risen by up to 94% due to high demand. (ET)

• The RBI states that the pickup in retail inflation, driven by food prices, has halted India's disinflation process. (ET)

IPO / FPO / Issuances🚀 

• InMobi aims for a $10 billion valuation in its 2025 India IPO. (PN)

• Vedanta's QIP receives bids for Rs 23,000 crore ($2.75Bn) against an offer of Rs 8,000 crore. (BS)

• Milky Mist is preparing for a Rs 2,000 crore ($239Mn) IPO at a valuation of Rs 20,000 crore. (BS)

• Aurobindo Pharma board approves a share buyback plan worth Rs 750 crore (£89Mn). (BS)

• Sanstar has raised Rs 153 crore ($18.3Mn) from anchor investors, with its IPO set to open today (July 19). (Moneycontrol)

This week’s mainboard IPO schedule

• Sanstar (RHP)

  • Offering Period: 19-23 July, 2024

  • Listing Date: 26 July, 2024

  • Issue Price: 90-95

  • Lot Size: 150

Deal Activity🤝 

M&A / Investments

• Modi govt may realize Rs 29,000 crore ($3.46Bn) from bank divestment after RBI green signal. (ET)

• Mankind Pharma and EQT are competing to acquire BSV Group for Rs 14,000 crore ($1.67Bn). (BS)

• Urban Company concludes Rs 526 crore ($63Mn) secondary funding round led by Dharana Capital. (EN)

• Dharana Capital acquires shares worth Rs 400 crore ($47.9Mn) in Urban Company. (BS)

• Moneyboxx Finance plans to raise Rs 271 crore ($32.4Mn) through equity issuance. (BS)

• Zensar acquires BridgeView for Rs 208 crore ($25Mn) to expand into the biopharma and life sciences industries. (BS)

• Collective Artists Network has acquired Galleri5, an AI-powered influencer marketing platform. (ET)

Debt

• Bank of India raises Rs 5,000 crore ($598Mn) through 10-year infrastructure bonds. (BS)

• India’s renewable energy expansion receives a Rs 2,006 crore ($240.5Mn) loan boost from ADB. (Mint)

• The government deposits Rs 92 crore ($11Mn) to cover bond interest dues of MTNL. (Moneycontrol)

Funds

• Venture firm Promaft Partners has announced its inaugural fund of Rs 1,000 crore ($119Mn). (ET)

• Capitalmind is set to launch its maiden AIF with a fund size of Rs 500 crore ($59.8Mn). (BS)

VC🤑

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