Sun Pharma completes Taro merger in a $348Mn deal

Hello,
Markets were volatile yesterday noticeable in the India VIX which increased by more than 6 percent. Today’s featured highlight is SEBI’s probe into Quant Mutual Fund, RBI is encouraging banks to serve credit gaps in underserved sectors and Officer's Choice whisky maker Allied Blenders’ IPO opens for subscription.

Markets📊 
As of 24/06/2024 Market Close

• On June 24, benchmark indices Nifty and Sensex closed slightly higher after a volatile trading session. Both indices initially declined by half a percent but recovered during noon to end in positive territory.

• Despite the market's consolidation, there was sectoral activity in FMCG and consumer durables, driven by expectations surrounding the upcoming budget.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Mazagaon Dock Shipbuilders Ltd +1.97%

• Shares rose by 4 percent on news of advanced talks to acquire additional Kalvari-class (Scorpene) submarines for the Navy, potentially securing a Rs 35,000 crore deal to strengthen India's submarine fleet.

Inox Green Energy Services Ltd (2.95%)

• Shares fell by almost three percent after the clean energy company's board announced plans to consider raising funds.

• Reports indicate the firm may raise up to Rs 1,000 crore through preferential allotment and warrant issuance to support future acquisitions.

Yesterday’s Highlights📒 

• Following Telangana's Rs 31,000 crore ($3.71Bn) farm loan waiver, farmers in Punjab reiterate their demand for a similar initiative. (ET)

• RBI's overseas gold reserves hit a 6-year low, with the share of gold held domestically rising to 53%. (ET)

• India's current account deficit (CAD) for FY24 decreased to 0.7% of GDP from 2% in FY23, with a surplus recorded at 0.6% in Q4. (ET)

• Passenger vehicle sales are expected to grow by 3-5% this fiscal year. (ET)

• Maiki South Mining secures Chhattisgarh's first Lithium and Rare Earth Elements (REE) blocks with a Final Proposal Offer (FPO) of 76.05%. (ET)

• L&T secures a significant order for a solar plant in Bihar. (ET)

• Finance Ministry convenes meeting with PSBs to assess financial inclusion schemes ahead of budget. (ET)

• Gautam Adani expresses readiness to capitalize on the infrastructure sector during AGM. (BS)

• RBI encourages banks to address credit gaps in underserved sectors. (ET)

Featured Highlight💡 
Sources: FE, ET, Mint

Quant Mutual Fund Under SEBI Investigation for Front-Running

• Allegations of Front-Running: The Securities and Exchange Board of India (SEBI) is investigating Quant Mutual Fund for alleged front-running activities. Front-running involves trading securities based on advance knowledge of large pending transactions to benefit from subsequent price movements.

• Regulatory Response: SEBI has introduced measures to prevent such market abuses, requiring Asset Management Companies (AMCs) to implement structured institutional mechanisms. These include enhanced surveillance, internal control procedures, and whistle-blower policies.

• Impact on Investors: While the investigation is ongoing, SEBI's actions aim to protect investors by ensuring transparency and accountability in mutual fund operations. Investors are advised to choose fund houses with robust investment processes rather than relying solely on star fund managers.

• Industry-Wide Scrutiny: The case highlights broader regulatory scrutiny in the mutual fund industry, with SEBI also investigating other instances, such as the Axis Mutual Fund case, where significant penalties and market bans were imposed on involved entities.

IPO / FPO / Issuances🚀 

• Allied Blenders and Distillers raises Rs 449 crore ($53.8Mn) from anchor investors. (Moneycontrol)

• Italian auto component maker Carraro Group selects three investment bankers and begins preparations for its India IPO. (Moneycontrol)

• Ather Energy converts to a public limited company ahead of its IPO. (YS)

• Stanley Lifestyles IPO subscribed 5.22 times. (BS)

This week’s mainboard IPO schedule

• Stanley Lifestyles (RHP)

  • Offering Period: 21-25 June, 2024

  • Listing Date: 28 June, 2024

  • Issue Price: 351-369

  • Lot Size: 40

• Allied Blenders (RHP)

  • Offering Period: 25-27 June, 2024

  • Listing Date: 02 July, 2024

  • Issue Price: 261-281

  • Lot Size: 53

• Vraj Iron and Steel (RHP)

  • Offering Period: 26-28 June, 2024

  • Listing Date: 03 July, 2024

  • Issue Price: 195-207

  • Lot Size: 72

Deal Activity🤝 

M&A / Investments

• Sun Pharma completes Taro merger in a Rs 2,903 crore ($348Mn) deal. (BS)

• NIIF-backed Aseem Infra Finance plans to raise Rs 1,000 crore ($119Mn) in equity during FY25. (BS)

• Warburg Pincus, Temasek, and JP Morgan collectively sell a 13.7% stake in CarTrade for Rs 535 crore ($65.3Mn). (BS)

• Jashvik Capital invests Rs 208 crore ($25Mn) in Bengaluru-based medtech firm Futura Surgicare. (Mint)

• NCLT grants permission to Zee to withdraw its merger implementation application. (BS)

• Zee Entertainment CEO Punit Goenka acquires a majority stake in Maverick Media. (BS)

• Bharti Airtel is negotiating to purchase an additional 3% stake in Indus Towers from Vodafone. (BS)

Debt

• Vedanta considers its first dollar bond sale of Rs 4,171 crore ($500Mn) in its inaugural overseas issuance. (BS)

• IPO-bound Bluestone raises Rs 100 crore ($12Mn) debt from Neo Markets. (EN)

VC🤑

• Prosus writes off its investment in BYJU'S, recognizing a Rs 4,112 crore ($493Mn) loss. (YS)

• Fintech startup CheQ secures Rs 55 crore ($6.7Mn) in its latest funding round. (EN)

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