📲 India Offers Peru UPI-like Payments System

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Both rebounded strongly after significant losses, with positive sentiments boosted by brokerage firms' remarks, following the Lok Sabha election results and government formation developments.

Spicejet chief announced fundraising plans, NPCI signed an agreement to bring UPI to Peru and RBI’s decision around monetary policy will be announced tomorrow.

Markets

• A day after experiencing their steepest percentage losses in nearly four years, the Indian stock market benchmarks, Sensex and Nifty 50, made a significant recovery on Wednesday, June 5. Investors digested the results of the Lok Sabha elections and began focusing on fundamentals and government formation developments.

• The Indian stock market saw robust gains across various sectors, fuelled by indications that the BJP-led NDA would establish the government at the Centre.

• Positive comments from leading brokerage firms, suggesting that the election results were only a short-term catalyst and did not affect long-term growth prospects, also seemed to enhance market sentiment.

Notable Gainer & Loser
Source: Moneycontrol

Amara Raja Energy & Mobility Ltd +12.72%

• Amara Raja Energy, a firm associated with the Telugu Desam Party, surged by up to 13 percent following reports that TDP chief Chandrababu Naidu is set to become the Chief Minister of Andhra Pradesh after the party's landslide election victory and alliance with the BJP.

• The company's MD, Galla Jayadev, is a former TDP Parliamentary Party Leader.

Cochin Shipyard Ltd (6.72%)

• The PSU stock, which had been consistently reaching new highs before the election results, hit the lower circuit of 10 percent for the second consecutive day. On Wednesday, the stock fell twice to the day's low of Rs 1,630.55.

• PSUs faced losses as the vote tally differed from exit polls, which had predicted a landslide victory for the BJP-led NDA.

Yesterday’s Highlights

• BHEL secures thermal power project worth over Rs 3,500 crore ($420Mn) from Adani Power. (BS)

• SpiceJet plans to raise Rs 2,082 crore ($250Mn) in the next couple of months, according to Chief Ajay Singh. (ET)

• Maruti Suzuki is poised to invest Rs 450 crore ($54Mn) in renewable energy projects. (BS)

• Indian Railways awards Rs 390 crore ($46Mn) project to state-owned RVNL. (BS)

• KPI Green Engineering secures orders worth Rs 351 crore ($42Mn). (ET)

• Mirae Asset seeks SEBI’s approval for India’s first EV and New Age Automotive ETF. (ET)

• NPCI signs an agreement with Peru to develop a UPI-like payments system. (TOI)

• Brakes India forms a joint venture with a Japanese firm for advanced braking products. (ET)

• SUN Mobility partners with IndianOil to establish battery-swapping infrastructure. (ET)

• Auto components maker Uno Minda partners with a Chinese firm to produce EV components. (ET)

• RBI rate-setting panel begins deliberations on monetary policy, a decision expected on Friday. (ET)

Featured Highlight
Sources: Trendlyne

Indian IPO Activity Gains Momentum After Two-Year Slump

• Indian IPO Boom in 2021: With low interest rates and high valuations, 65 companies went public, raising over Rs. 1.2 trillion. Notable debuts included Paytm, Zomato, MapmyIndia, and Nykaa, with One 97 Communications leading as the biggest IPO of the year.

• Dampened Euphoria in 2022 and 2023: The Russia-Ukraine war in 2022 and subsequent tepid market response in 2023 slowed IPO activity. Although listings increased by 40%, the total issue size declined by over 10%. Notable exceptions included Delhivery, Adani Wilmar, Mankind Pharma, and Tata Technologies, collectively raising over Rs. 16,000 crore. LIC of India's mammoth IPO in 2022 also made waves, raising Rs. 21,000 crore.

• 2024: The IPO Comeback: A resurgence is evident in 2024, with increased IPO transactions and size. The combined issue size has already exceeded half of the total amount raised in the previous year, signalling a promising comeback for Indian IPOs.

IPO / FPO / Issuances

This week’s mainboard IPO schedule

• Hindalco Industries defers Novelis IPO in the US, citing market conditions. (BS)

M&A / PE / Investments

• TPG’s The Rise Fund and Kabira Holdings invested Rs 749 crore ($90Mn) in digital lending platform Fibe during its Series E funding round. (EN)

• M&G Investments to invest Rs 310 crore ($37Mn) in Murugappa Group's EV arm. (BS)

• Nazara's Absolute Sports to acquire SoapCentral.com for Rs 11 crore ($1.4Mn) in an all-cash deal. (EN)

• Kotak Bank receives RBI approval to sell a 70% stake in its general insurance arm to Zurich Insurance. (ET)

• Godrej Fund Management acquires a 5% stake in Godrej Green Homes from Godrej Properties. (ET)

• Suraksha Group successfully acquires Jaypee Infratech through the insolvency process. (BS)

VC