Indian Firms Set for Boost in Outbound M&A Activity

• Indian markets had a quiet session on Wednesday, October 23, with an early rally in IT stocks boosting the indices. However, a sharp decline in financial and auto sectors erased those gains, leading to a flat close for both the Nifty 50 and Sensex.

• Investors continue to take advantage of price increases to book profits, a pattern seen in recent trading sessions.

Firstsource Solutions +8.29%

• The stock surged 9 percent after the company revealed its plans to develop a domain-specific large language model (LLM) tailored for the U.S. mortgage sector.

• This initiative, part of its Firstsource relAI suite, aims to utilize its mortgage process expertise, improving services with AI-powered features such as credit assessments, loan quality checks, and document digitization.

Chennai Petroleum Corporation (10.64%)

• The company's shares dropped 10 percent after its petroleum refineries posted a standalone net loss of Rs 629.5 crore in Q2FY25, compared to a net profit of Rs 1,190.56 crore in the same period last year.

• Revenue from operations also declined 27 percent to Rs 12,086.54 crore for the quarter ending 30 September 2024, down from Rs 16,544.56 crore in the corresponding quarter of the previous year.

• Average rents in the top six office markets have surpassed pre-pandemic levels for the first time in 2024. (BS)

• Blinkit has launched a Seller Hub to facilitate easier onboarding for sellers and brands. (BS)

• Jio Financial is in discussions with Allianz to establish insurance joint ventures in India. (RT)

• Citi predicts an increase in outbound M&A by Indian firms, driven by strong balance sheets. (BS)

• The DFS Secretary advises microfinance institutions to avoid reckless lending practices. (ET)

• Irdai has raised concerns regarding high commissions on auto insurance covers. (ET)

• Waaree Energies' IPO was subscribed 76x on Day 3, with QIBs booked 209x. (MC)

• Deepak Builders & Engineers' IPO was subscribed 41.54 times on Day 3. (MC)

• Godavari Biorefineries' IPO was 27% subscribed on Day 1, with the retail quota booked at 48%. (MC)

This week’s mainboard IPO schedule

• Waaree Energies

  • Offering Period: 21 October - 23 October, 2024

  • Listing Date: 28 October, 2024

  • Issue Price: 1427-1503

  • Lot Size: 9

• Deepak Builders & Engineers India

  • Offering Period: 21 October - 23 October, 2024

  • Listing Date: 28 October, 2024

  • Issue Price: 192-203

  • Lot Size: 73

• Godavari Biorefineries

  • Offering Period: 23 October - 25 October, 2024

  • Listing Date: 30 October, 2024

  • Issue Price: 334-352

  • Lot Size: 42

• Afcons Infrastructure

  • Offering Period: 25 October - 29 October, 2024

  • Listing Date: 01 November, 2024

  • Issue Price: 440-463

  • Lot Size: 32

M&A / Investments

• Sona Comstar will acquire Escorts Kubota's railway equipment business for Rs 1,600 crore. (BS)

• Acko is closing a $120 million secondary deal, with Arpwood Capital and others likely involved. (ET)

• Gujarat Fluorochemicals has raised Rs 1,000 crore for its electric vehicle initiative. (BS)

Debt

• The UAE's sovereign wealth fund will invest $750 million in GMR Group's debt. (BS)

• SBI raised Rs 5,000 crore via additional Tier-I bonds at 7.98%. (BS)

• Muthoot Finance raised $400 million in USD notes, oversubscribed 3.9x. (BS)

• Vedanta Resources raised $300 million through a tap issue on an existing bond. (BS)

• Two SPVs of Adani Road Transport are accepting bids for a Rs 1,125 crore bond issue. (BS)

• Kiddopia has lent Rs 75 crore to Nazara UK. (YS)

VC

• Avaana Capital raised a $135 million fund for climate and sustainability tech startups. (YS)

• Kerala Startup Mission has invested Rs 15 crore in an energy transition venture capital firm. (YS)