UltraTech to buy 32.7% of India Cements for a Potential $848M

Hello,
Markets surged by over 1.5% on Friday, bringing relief to investors after five consecutive down sessions. The primary markets are expected to be active this week with three mainboard IPOs and seven SME IPOs. UltraTech is poised to acquire a 32.7% stake in India Cements in a deal valued at ₹3,954 crore, potentially rising to ₹7,100 crore. Additionally, the RBI continues to highlight the ongoing lag of deposit growth compared to credit growth.

What can we expect this week?
 

1. IPOs Galore

   • This week, the primary markets will be particularly active with the opening of three new mainboard company IPOs. The companies include Akums Drugs and Pharmaceuticals, Ceigall India, and Ola Electric. Among these, Ola Electric's IPO stands out as particularly noteworthy. As India's first EV manufacturer to go public, Ola's IPO is set to be one of the largest IPOs of the year.

2. Star and Viacom Merger Plea

   • The NCLT has scheduled the final hearing for Disney's Star India and Reliance's Viacom18 merger plea on August 1.

3. Earnings Report

   • Earnings season continues as a list of major companies are set to announce their Q1FY25 earnings results this week including SBI, CDSL, Taj, Tata Motors, Zomato, etc.

Markets📊 
As of 26/07/2024 Market Close

• The domestic equity benchmarks, Sensex and Nifty 50, ended their five-day losing streak with their best session in seven weeks on Friday, July 26. This rebound was fuelled by significant value-buying at lower levels and a recovery rally in blue-chip stocks like Infosys, Bharti Airtel, and Reliance Industries, amid positive global cues.

• Analysts noted that the Union Budget 2024, announced on Tuesday, which included tax hikes on capital gains in equity investments and derivatives trading, had a negative but short-term impact on market sentiment.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Vedanta Ltd +3.79%

• Vedanta Ltd's share price rose nearly 4% on Friday after the company announced a second interim dividend of ₹4 per share with a face value of ₹1.

• This dividend announcement helped Vedanta's share price reverse its declining trend.

Sobha Ltd (3.25%)

• Shares fell nearly 5 percent after the company's net loss for the June quarter widened annually to Rs 27.6 crore from Rs 19 crore. Revenue also decreased by 3.8 percent year-on-year to Rs 378.5 crore.

Weekend Highlights📒 

• According to the latest RBI data, deposit growth continues to lag behind credit growth. (ET)

• The RBI issues a prompt corrective action framework for UCBs. (YS)

• Vedanta's Agarwal urges the government to privatize gold mining to boost production. (BS)

• The government extends the subsidy on two- and three-wheeler EVs until September 30. (ET)

• Global law firms' plans to enter India face regulatory hurdles. (ET)

IPO / FPO / Issuances🚀 

• Investors rush to secure anchor investments in the Ola Electric IPO; to sign up for a likely Rs 2,928 crore ($350Mn) book. (ET)

• Monarch Networth Capital plans to raise ₹300 crore ($35.9Mn) through preferential shares. (YS)

• Senores Pharmaceuticals plans an IPO and has filed draft papers with SEBI. (Moneycontrol)

This week’s mainboard IPO schedule

• Akums Drugs and Pharmaceuticals (RHP)

  • Offering Period: 30 July - 01 August, 2024

  • Listing Date: 06 August, 2024

  • Issue Price: 646-679

  • Lot Size: 22

• Ceigall India

  • Offering Period: 01-05 August, 2024

  • Listing Date: 08 August, 2024

  • Issue Price: TBC

  • Lot Size: TBC

• Ola Electric Mobility

  • Offering Period: 02-06 August, 2024

  • Listing Date: 09 August, 2024

  • Issue Price: 72-76

    Lot Size: TBC

Deal Activity🤝 

M&A / Investments

• Godrej Industries Group's family office divests a 4.4% stake in Sobha for Rs 858 crore ($102Mn). (BS)

• Paytm receives approval for a Rs 50 crore ($5.97Mn) investment in its payments arm. (YS)

• UltraTech to acquire a 32.7% stake in India Cements to strengthen its presence in the South. (BS)

• Riveron has acquired Yantra. (EN)

• Lumikai invests in MPL's Mayhem Studios. (EN)

• Govt to push IDBI Bank stake sale after RBI clearance. (BS)

Debt

• Vodafone Idea offers to settle remaining Nokia dues of ₹1,500 crore ($179Mn). (ET)

• Godrej Properties raises ₹1,275 crore ($152Mn) through non-convertible debentures. (BS)

• IPO-bound Ather Energy raises ₹60 crore ($7.2Mn) in debt. (EN)

VC🤑

• Leap Finance is in talks to raise Rs 836 crore ($100Mn), aiming for a valuation exceeding Rs 8,300 crore ($1Bn). (EN)

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