Hero Motors Files For Rs 900 Cr IPO

1. Markets this week

   • The Indian stock market is likely to mirror the gains of the US market, with increased expectations of a soft landing for the global economy and signs of economic cooling.

   • A potential Fed rate cut as Jerome Powell stated that “the time has come for policy to adjust” could enhance market sentiment and push stock prices higher.

2. New IPOs

   • 3 new mainboard IPOs will open this week. Please refer to our IPO section for detailed information.

3. Macroeconomic Data

   • India will release the GDP data for Q1 of the 2024-25 fiscal year on Friday, August 30. Additionally, the fiscal deficit and infrastructure sector output for July will be announced next week.

• The Indian stock market ended flat, despite positive trends in major Asian and European markets.

• Investors were mainly focused on the Fed Chair's speech, looking for hints about upcoming U.S. rate cuts, which occurred after the market closed on Friday. This speech and its implications were covered in our preview above.

• With limited new domestic triggers, the expected 25 bps Fed rate cut in September appears to be largely priced in. However, the market's high valuations and lacklustre Q1 earnings from India Inc. have likely restricted any significant gains.

PCBL +10.62%

• Shares of the specialty chemicals firm jumped nearly 11 percent, reaching a new record high after the company highlighted significant growth opportunities in its investor presentation.

• The presentation emphasized how the global landscape is increasingly favourable for the growth of India’s rubber black industry.

Reliance Power (5.01%)

• Shares of Reliance Power dropped 5 percent after the market regulator imposed a five-year ban on promoter Anil Ambani from the securities market.

• The ban, which also includes 24 other entities, such as former key officials of Reliance Home Finance, was enforced due to allegations of fund diversion from the company.

• India states that Russia's oil trade has helped keep global prices stable. (Mint)

• A homebuyers' body is requesting the Housing Ministry's intervention regarding the RERA conciliation forum. (HT)

• The Maharashtra Pollution Control Board (MPCB) has accused Mercedes-Benz India of not adhering to environmental standards. (ET)

• Jefferies highlights rising claims as a key challenge for India's health insurance sector. (ET)

• The government has reduced drawback rates for exports of gold and silver jewellery. (Mint)

• TVS Motor anticipates that the scooter segment will make up over 40% of two-wheeler sales. (ET)

• Indian telcos are targeting a 10% share in 6G patents over the next three years. (ET)

• Carraro India has filed draft papers for an IPO worth Rs 1,812 crore ($216Mn). (YS)

• Hero Motors has filed draft papers for a Rs 900 crore ($107Mn) IPO. (YS)

• Candytoy aims to raise Rs 90 crore ($10.7Mn) by selling a 10% stake. (BS)

• Interach Building Products is expected to list with a 30-40% premium today. (MC)

• The Orient Technologies IPO was 151.71x subscribed on day three, driven mainly by NII and QIB. (MC)

This week’s mainboard IPO schedule

• Premier Energies

  • Offering Period: 27 August - 29 August, 2024

  • Listing Date: 03 September, 2024

  • Issue Price: 427 - 450

  • Lot Size: 33

• ECOS Mobility & Hospitality

  • Offering Period: 28 August - 30 August, 2024

  • Listing Date: 04 September, 2024

  • Issue Price: 318 - 334

  • Lot Size: 44

• Baazar Style

  • Offering Period: 30 August - 03 September, 2024

  • Listing Date: 06 September, 2024

  • Issue Price: NA

  • Lot Size: NA

M&A / Investments

• HDFC Bank has rejected MUFG's Rs 16,600 crore ($2Bn) cheque for its NBFC arm. (MC)

• GQG Partners and others have purchased a stake in Ambuja Cements valued at Rs 4,251 crore ($507Mn). (BS)

• MUFG is investing an additional Rs 2,800 crore ($334Mn) in DMI Finance. (Mint)

• Tata Technologies has acquired a 2.4% stake from Alpha TC Holdings for Rs 1,004 crore ($119Mn). (YS)

• IndoStar Capital is inviting counterbids for the sale of Rs 357 crore ($42.6Mn) in stressed loans. (BS)

• Suraksha Group has invested Rs 250 crore ($29.8Mn) in Jaypee Infratech. (BS)

• Bikaji Foods International has acquired a 55% majority stake in Ariba Foods for Rs 60 crore ($7.2Mn). (BS)

• Dubai-based Brickwork has invested Rs 39 crore ($4.7Mn) in Legends League Cricket. (EN)

• Zydus Lifesciences is acquiring a 50% stake in Sterling Biotech from Perfect Day. (YS)

• KSK's lenders are set to sell two of the company's arms to Medha Servo Drives. (ET)

Debt

• REC will provide Rs 45,000 crore ($5.36Bn) in financing to JNPA. (ET)

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