Business News at 05:30 pm on 21th February, 2024

Let’s begin with some IPO-related news. Juniper Hotels opened its IPO to retail investors on February 21. The company will offer 50 million shares to raise Rs 1,800 crore. The company has set the issue’s price band at Rs 342 – 360 per equity share. The closing date for bidding has been set on February 23. The company’s stocks will get listed on both the bourses – NSE and BSE. A retail investor will need to bid for a minimum of 40 equity shares summing to Rs 14,400. The company has raised Rs 810 from the anchor investor by offering 22.5 million shares. The company offers luxury hotel development and ownership. It is owned by Saraf Hotels and Two Seas Holdings.

In some more market news, After facing significant challenges post-listing, shares of One 97 Communications, the parent company of Paytm, have displayed a remarkable upward trajectory, consistently hitting upper-circuit limits over the past few trading sessions. In today’s trading session, the stock locked at a 5 per cent upper circuit limit at Rs 395 per share, marking the fourth consecutive day of a 5 per cent rally. Over these four days, the stock has gained a total of 21 per cent. Several factors contribute to this renewed buying interest, including the RBI’s deadline extension, positive management comments, and recent favorable developments, such as the ED finding no violation under the Foreign Exchange Management Act, a strategic deal with Axis Bank, and an ‘outperform’ rating from Bernstein.

Meanwhile, Shares of ZEE Entertainment fell 15% to the intraday low of Rs 163.75 compared to the previous close of Rs 192.65 after the news reports said that the market-regulator SEBI has found a hole of Rs 2,000 crore in the company’s accounts. Also, the company denied news reports of re-engagement with Sony for the $10 billion merger. In an exchange filing the company denied any negotiation for the revival of the merger, which was called off on Januar 22, 2024. In the last five days, the company has wiped off over 13% of investors’ wealth and nearly 37% in the last six months on the National Stock Exchange. The company’s stock has fallen 18% in the last one year.

Moving on. The stocks of Hindalco inched 5% to the intraday high of Rs 538 after the company’s US arm Novelis filed IPO papers with the US market regulator – Securities and Exchange Commission. The stock was the top gainer in the Nifty 50. Novelis confidentially filed IPO papers because of which the details are unavailable to the public such as how much the company wants to raise, how many shares the company is willing to offer, what will be the raised amount utilised for, etc. However, CNBC TV18 reported citing sources that Hindalco is expecting a valuation of $15 billion for Novelis. Novelis expects to complete the public offering after the SEC completes its review process, subject to market and other conditions.

Over to economy. The momentum of economic activity witnessed during 2023-24 is expected to continue in the next year, Reserve Bank of India Governor Shaktikanta Das said in a statement published in RBI’s February bulletin. He said that domestic economic activity remains strong. The first advance estimates placed the real gross domestic product growth at 7.3 percent for 2023-24, marking the third successive year of growth above 7 percent. Agricultural activity, he added, is holding up well despite lower rainfall, lower reservoir levels, and delayed sowing. Rabi sowing has surpassed last year’s level as well as the normal acreage. The allied sector is also expected to provide major support to agriculture with continued momentum in horticulture and fisheries.

On to industry. Over the next two years, Global Capability Centers are expected to lease about 45-50 million square feet of office space, accounting for approximately 40 per cent of the total office demand across the top 6 cities, said a report by Colliers. Improved business sentiments and positive economic outlook are fostering heightened demand for office spaces in India, particularly signaling confidence among foreign-origin companies seeking to establish their capability centers in the country, it added. Interestingly, despite a weaker global outlook amidst the pandemic and geopolitical tensions in the last 2-3 years, GCCs steadfastly resumed their expansions, registering a 14 per cent Year-on-Year rise in leasing activity in 2023.

Lastly, let’s see how the share market performed today. Indian equity indices snapped 6-day winning run and ended lower on February 21 with Nifty below 22,100. Biggest losers on the Nifty were BPCL, Coal India, Hero MotoCorp, Power Grid Corp and NTPC, while gainers were Tata Steel, SBI, JSW Steel, ICICI Bank and IndusInd Bank. On the sectoral front, except realty and PSU Bank, all other indices are trading in the red. BSE Midcap and Smallcap indices fell 1 per cent each.