Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking Ltd
Equitas Small Finance Bank (SFB) will submit an initial public offering on October 20, 2020 to raise Rs.532cr. Equitas SFB’s new IPO share issue has recently been revised down to Rs 280 crore from Rs 550 crore previously planned. The IPO consists of a new equity share issue of Rs 8 million and an offer to sell equity shares of Rs 7.2 million.
The market source that the IPO predicts could be in the range of 31 to 35 per share. At a rate of 35 Equitas SFB requiring a valuation of 1.3x the book value of 1TFY21. The pairs are trading at a higher valuation, Ujjivan 1.8x and AU SFB at 4.9x of the book value of the first quarter of fiscal year 21. We believe that the valuation of Equita SFB in the range of 1 -1.2x will generate healthy interest from of investors.
Interest Waiver: Real Estate Shouldn’t Expect Any Special Relief, Says Shardul Shroff
The Supreme Court has told the government to implement the interest-on-interest exemption scheme for small borrowers. So what does this mean for banks and real estate? Interest on interest here means that borrowers will have to pay additional interest if they had taken advantage of the moratorium offered by banks between March and August. Shardul Shroff, CEO of Shardul Amarchand Mangaldas & Company, shared his thoughts on this in an interview with CNBC-TV18. The real estate sector has been among the sectors that have expressed the most their demand that interest on interest be eliminated. “I don’t think the court now has the opportunity to investigate the real estate issues because it has taken a long time,” Shroff said. According to him, banks will not be asked to pay interest on the interest exemption. Watch video for more
Impact on earnings: Tata Elxsi shares rise 5% after reporting a 58% rise in second quarter net earnings
Tata Elxsi shares rose more than 5 on Thursday after the company announced strong results for the September quarter. The design and technology services provider reported a 58.3 percent increase in net profit to Rs 78.8 crore in the second quarter versus a net profit of Rs 49.8 crore in the prior year period. . Its operating income increased 11.5 percent to Rs 430.2 million for the said quarter from Rs 385.8 million in the corresponding period a year ago. The shares were up 5.2 percent at Rs 1,533.55 per share on BSE.
Den Networks second quarter net profit decreases 61.4% to Rs 36 crore
Broadband and cable service provider Den Networks on Wednesday reported a 61.41 percent decrease in its consolidated net profit to Rs 36.77 crore in the second quarter ended September 30. The company had reported a net profit of Rs 95.30 crore in the September 2019 quarter, Den Networks said in a regulatory filing. Its total revenue stood at 378.81 million rupees, an increase of 1.06 percent during the quarter from 374.82 million rupees a year ago. Den Networks’ total expenses were Rs 338 crore versus Rs 365.27 crore, down 7.46 percent. Its revenues from the cable distribution network were Rs 318.82 crore and from broadband services Rs 18.84 crore. Shares of Den Networks Ltd closed Wednesday at Rs 85.75 on the BSE, down 3.43 percent from the previous close.
Likhitha Infrastructure is trading at an 8.4% premium at Rs 130 per share to the issue price
Shares of Likhita Infrastructure made a tepid debut on the exchanges on Thursday, at 130 rupees a share on the BSE, a premium of 8.41 percent to the issue price of 120 per share. The shares rose to 131 rupees in early trading. The Hyderabad-based infrastructure company had come out with a problem of Rs 61 crore, small compared to the most recent IPOs on the main board, with a final issue price of Rs 120 per share. The issue was subscribed 9.51 times on the last day of its tender, although the company had to extend its IPO closing date to October 7 due to the lukewarm response from Qualified Institutional Buyers (QIB). Brokers had mixed ratings for the IPO. Given the size of the small problem, some recommended avoiding the IPO, while others held out hope with a long-term view.
MTNL increased more than 6% after telecom department asks PSUs and ministries to use BSNL and MTNL networks
Residential sales recover in the July-September quarter, but prices show moderate growth
In what can be seen as a strong recovery for real estate, research reports suggest that India’s top eight residential markets saw an 85 percent increase in residential sales in the July-September quarter compared to the performance. in the April-June quarter. in the current calendar year. According to the Real Insight Q3 2020 report from online real estate brokerage firm PropTiger.com, quarterly analysis of India’s top eight residential markets shows that residential home sales added to 35,132 units during the third quarter of current calendar year, which marks an increase of 85 percent over the previous quarter. The report said that housing units in the price range of less than Rs 45 lakh, categorized as the affordable housing segment under India’s income tax laws, made the largest contribution to sales during the quarter, contributing with 45 percent to the overall sales figures. More here
Opening hood: Sensex, Nifty open flat; Infosys rises 3.5% after second quarter earnings
Indian indices were flat on Thursday as gains in TI stocks after Infosys gains were limited by finance and RIL’s heavyweight. Infosys was up nearly 3.5 percent on early deals after beating street estimates, and profits were up 14.5 percent quarter-on-quarter in the September quarter. At 9:18 a.m., the Sensex was up 31 points to 40,825 while the Nifty was up 19 points to 11,989. Markets overall were also positive on early deals with mid- and small-cap indices that were up 0.3 percent each. Among sectors, the Nifty IT Index rose the most, 0.8 percent, followed by Nifty Auto and Nifty Metal, which each rose 0.6 percent. Meanwhile, Nifty Bank and Nifty Fin Services fell 0.7 percent on the first deals and Nifty FMCG was down 0.4 percent.
Infosys expands its presence in Mexico and Canada as the issuance of H-1B visas continues in the US.
Infosys is expanding its presence in Mexico and Canada to offer same-time zone services to customers in the US as the Trump administration continues to crack down on the H-1B visa rules that IT companies depend on. The Trump administration released a new set of rules this month that has led to increased salaries for H-1B visa holders and stricter inspection and scrutiny of employers. However, companies like Infosys, TCS, and Wipro have been able to reduce their reliance on H-1B visas over the years through greater localization. “The new salary increase will affect only applications for new working conditions (LCA) for H-1B visas, not existing ones,” said Infosys COO Pravin Rao. More here
Infosys will see 50% digital revenue ‘soon’, says CEO Salil Parekh
Infosys’ stellar performance in the September quarter was supported by 25.4 percent year-on-year growth in its digital business, which now contributes 47.3 percent of the company’s total revenue. “The investment we made in digital over the last few years has helped us now. We will soon cross the 50 percent mark for digital contribution, ”CEO Salil Parekh said during the company’s quarterly earnings conference on Wednesday. Parekh, however, did not specify a timeline for digital to generate half of the revenue. Infosys has been steadily increasing its digital contribution over the past few years. Digital revenue as part of total revenue stood at 38.3 percent in the September quarter of last year, and at 31 percent in the same quarter of 2018. More information here
Infosys second quarter results: IT major reports net earnings of Rs 4,845 crore, revenue of Rs 24,570 crore
Infosys, the country’s second-largest software services exporter, reported a 14.5 percent sequential increase in net profit of Rs 4,845 crore in the second quarter of fiscal 2021. The profit was higher than the survey of CNBC-TV18 analysts estimated at Rs 4,534 crore. The profit in the June quarter was 4,233 crore. Consolidated revenue from operations increased 3.8 percent to Rs 24,570 crore during the quarter compared to Rs 23,665 crore in the previous quarter. In dollar terms, revenue increased 6.1 percent quarter-on-quarter to $ 3,312 million from $ 3,121 million. The company reported steady currency revenue growth of 4.0 percent QoQ and 2.2 percent YoY. Infosys has revised its revenue growth guidance up to 2-3 percent in constant currency for the 2020-21 financial year, from 0-2 percent previously. The full-year operating margin guidance was also revised up to 23-24 percent from 21-23 percent previously.
Here are today’s global signals:
First, here is a quick update on what happened in the markets on Wednesday
Benchmark Indian stock indices Sensex and Nifty rallied from the low of the day to finish higher on Wednesday led by gains in banking and real estate stocks. Breaking gains helped Sensex and Nifty post a 10-day winning streak for the first time since January 2015. The Sensex closed 169.23 points or 0.42 percent higher at 40,794.74 while the Nifty it gained 36.55 points or 0.31 percent to close at 11,971.05. Sensex and Nifty gained 515 points and 149 points respectively from lows. The Nifty Bank experienced a recovery of 725 points from lows to close 1.6 percent more. The broader indices ended up mixed with Nifty Smallcap100 gaining 0.26 percent, while Nifty Midcap100 closed 0.16 percent lower.
Welcome to the CNBC-TV18 Market Live blog
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