Stock Market News 16-October-2021

1. IPOs all the way.
a. Falguni Nayar and Sanjay Nayar promoted FSN E-Commerce Ventures, the company that operates online beauty store Nykaa has received SEBI approval for IPO.
b. The company is planning to launch it’s IPO this month-end and aiming for a valuation of $6 billion (Rs.45,000 crore).
c. The total issue size, including the fresh issue component of Rs.630 crore could be Rs.5,300 crore. However, the final call on valuations will be taken nearer the launch date.
d. Multi-Conglomerate Adani group’s Adani Wilmar entity has received SEBI approval for its IPO. Adani Wilmar will be the 7th Adani Group company to be listed on the exchange. The company had filed DRHP with SEBI on 3rd August 2021 for Rs.4,500 crore IPO.
e. Adani Wilmar, a 50-50 joint venture of the Adani Enterprises and Wilmar International (Singapore based food processing and investment holding company), is one of the largest FMCG food companies in India.
f. The company reported 58% YOY growth in PAT in 2021. The PAT stood at ₹727.65 crores in 2021 against ₹460.87 crores in 2020. The revenues also increased 25% YOY.
g. .Rakesh Jhunjhunwala backed Star Health Insurance has also received the SEBI approval for its Rs.5,500 crores IPO. The IPO will consist fresh issue of Rs.2,000 crores. The company is the largest private player in the insurance sector with a market share of 15%.

2. WPI at 6-Month Low.
a. The wholesale price index-based inflation rate eased to a six-month low of 10.66% in September, from 11.39% in the previous month.
b. The fall in food prices for second month in a row helped the WPI to reduce.
c. The softening of the WPI is in line with the CPI, which fell to a five-month low of 4.35% in September, from 5.59% in the previous month.

3.Imports exceed Exports by $22.6 billion.
a. Huge Import of goods because of festive season and hardening of commodity prices have inflated the trade deficit to a record high of $22.6 billion for the month of September 2021. The trade deficit was $13.3 billion for August 2021.
b. The exports for the month of September were $33.8 billion whereas the imports were $56.4 billion. Import of petroleum products increase from $5.8 billion in September 2020 to $17.4 billion in September 2021, gold imports also went up from $600 million to $5.1 billion on YoY basis. Coal shortage led to increase in coal and related imports from $1.2 billion to $2.2 billion on YoY basis.
c. Engineered Goods, Electronic Goods and Gems & Jewelry formed major exports for the month of September 2021.

4. Financial Results Update.

5. Reliance Broadening its Market.
a. Introduction of 7-Eleven Stores in India, acquisition of REC Solar Holdings, 40% stake in Sterling & Wilson Solar Ltd and with some other acquisitions in the past couple of weeks Reliance Industries is entering new markets with full force.
b. The Company has heavily invested in Reverie Language Technologies (a native language SaaS start-up), EasyGov (Indian government schemes/service aggregator), and SankhyaSutra Labs (Multiphysics simulation service).
c. The acquisition details are as follows: -

d. Further, Reliance has also announced purchase of 40% stake in Manish Malhotra owned “MM Styles”. The details of the deal are yet to be made public.

6.TVS motors participation in the EV sector.
a. TVS group is planning to come up with electric vehicle (EV) charging stations. TVS motors has partnered with TATA Power to launch EV charging stations across the country.
b. Lucas TVS, part of the TVS group and US-Based 24M Technologies are planning to come up with a Rs.2,500 crore giga factory near Chennai for making semi-solid lithium-ion (Li-ion) battery cells.