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Asian Paints 3094.65 (4.20%)
Axis Bank 787.50 (-6.46%)
B P C L 427.70 (-0.78%)
Bajaj Auto 3776.50 (-0.40%)
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Bharti Airtel 702.35 (0.88%)
Britannia Inds. 3697.85 (0.14%)
Cipla 922.50 (1.65%)
Coal India 173.60 (-0.83%)
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Dr Reddys Labs 4662.70 (-0.08%)
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HCL Technologies 1177.15 (0.89%)
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ITC 238.45 (0.74%)
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Power Grid Corpn 190.25 (-0.08%)
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Shree Cement 28107.75 (1.19%)
St Bk of India 519.15 (1.29%)
Sun Pharma.Inds. 825.10 (1.43%)
Tata Consumer 818.75 (1.22%)
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Tata Steel 1326.15 (-1.30%)
TCS 3489.75 (0.21%)
Tech Mahindra 1567.85 (0.29%)
Titan Company 2460.10 (0.22%)
UltraTech Cem. 7354.20 (1.17%)
UPL 741.50 (3.96%)
Wipro 671.10 (0.44%)

DHFL Lenders to get payments this week

DHFL Lenders to get payments this week
by 5paisa Research Team 20/09/2021

Dewan Housing Finance Ltd, the first NBFC to be referred to NCLT by the RBI under a special provision, is expected to complete its resolution process in Sep-21. The process was likely to be completed in the first week of September but was held up for various technical reasons.

DHFL’s biggest lender, SBI, has already signed the transaction document while the other financial creditors like Union Bank, Bank of Baroda, Canara Bank and Bank of Baroda are also expected to sign the transaction document this week. Under the NCLT regulations, the resolution deal becomes effective only after 90% of the financial creditors endorse the transaction document.

Under the terms of the resolution, Piramal Capital will pay a total consideration of Rs.37,250 crore against total admitted claims of Rs.87,082 crore. That implies about 42.7% recovery for the banks or you can also call it a 57.3% haircut. Out of this sum, Rs.12,700 crore will be the upfront cash payment and an additional Rs.3,000 crore is the interest income earned by DHFL during the CIRP process, which is also being paid out.

Also Read :- Will DHFL Shares Be Delisted After Being Acquired by the Piramal Group?

In addition, the financial creditors will get Rs.19,550 crore by way of non-convertible debentures. These NCDs will mature after 10 years in 2031 but there will be a call back facility after 5 years under the terms of the resolution plan. This will be the second largest pay-out to lenders after the Rs.42,000 crore that Arcelor Mittal and Nippon Steel paid for Essar Steel owned by the Ruia brothers; Ravi Ruia and Shashi Ruia.

The NHB dues of Rs.2,300 crore are currently under dispute over preferential payment. However, the COC agreed to set aside the NHB claim of Rs.2,300 crore to expedite the process and complete it in this month. The acquisition will be funded by Piramal, partly through debt and partly through internal resources. Barclays will arrange a loan of Rs.4,500 crore while Standard Chartered has arranged a loan of Rs.9,000 crore for the deal.

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Paras Defence & Space Technologies IPO Subscription Day-1

Paras Defence IPO subscription Day 1
IPO
by 5paisa Research Team 21/09/2021

The Rs.170.78 crore IPO of Paras Defence & Space Technologies, consisting of a fresh issue of Rs.140.60 crore and an offer for sale or OFS of Rs.30.18 crore, was heavily oversubscribed on Day-1 itself. As per the combined bid details put out by the BSE, Paras Defence & Space Technologies IPO was subscribed 16.57X overall, with bulk of the demand coming from the retail segment followed by HNI segment. The issue closes on 23rd September.

As of close of 21 September, out of the 71.41 lakh shares on offer in the IPO, Paras Defence & Space Technologies saw bids for 1,182.92 lakh shares. This implies an overall subscription of 16.57X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI investors were surprisingly robust on the first day of the IPO. QIB bids will typically come in only on the last day of the IPO.

 

Paras Defence & Space Technologies IPO Subscription Day-1

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.01 Times

Non Institutional Investors (NII)

3.77 Times

Retail Individuals

31.36 Times

Employees

N.A.

Overall

16.57 times


QIB Portion

The QIB subscription was subscribed just 0.01 times at the end of Day-1. On 20 September, Paras Defence & Space Technologies did an anchor placement of 29.275 lakh shares at the upper end of the price band of Rs.175, raising Rs.51.23 crore. The list of QIB investors including a number of marquee names like Ashoka India Equity, Abakkus Emerging Opportunities Fund, Saint Capital, Nippon India Fund and HDFC Mutual Fund. 

The QIB portion (net of anchor allocation) has a quota of 20.18 lakh shares of which it has got bids for just 0.24 lakh shares, implying a subscription ratio of just 0.01X for QIBs at the end of Day-1. QIB bids typically get bunched on the last day, but anchor response does show good interest.

HNI Portion

The HNI portion got subscribed 3.77X (getting applications for 57.94 lakh shares against the quota of 15.37 lakh shares). This is a surprisingly robust response on Day-1 and could be due to the small size of the IPO. Bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a whopping 31.36X at the end of Day-1, showing strong retail appetite. For retail investors; out of the 35.86 lakh shares on offer, valid bids were received for 1,124.74 lakh shares, which included bids for 848.87 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.165-Rs175) and will close for subscription on 23rd September.

Also Read:-

Paras Defence IPO - 7 things to know

Upcoming IPOs in 2021

Upcoming IPOs in September 2021

Next Article

Goldman Sachs bets on India becoming 5th largest by market cap

Goldman Sachs bets on India becoming 5th largest by market cap
by 5paisa Research Team 21/09/2021

One of the world’s most formidable investment banks, Goldman Sachs, is bullish on India. In fact, Goldman sees India in the same sweet spot of growth and value explosion as China a decade ago. As Goldman Sachs highlighted, China created immense wealth for those who believed in the China story and India would be no different. It also predicts that Digital IPOs would lead the way.

Let us look at some numbers. If the BSE market cap at $3.50 trillion looks lofty, Goldman Sachs has loftier predictions. They expect India’s market cap to grow from $3.50 trillion to $5 trillion in the next 3 years. That is a phenomenal 43% appreciation over 3 years. Goldman Sachs expects that by 2024, India would be the fifth largest in the world by market cap after the US, China, Japan and UK. 

The big story, according to Goldman is that this capital appreciation will be driven by digital IPOs. Nearly $400 billion of market cap accretion will come from digital IPOs. The successful IPO of Zomato opened the floodgates for a stream of big ticket digital IPOs including Paytm, Ola, Policybazaar and Nykaa; all of which are expected in the current fiscal year.

The big digital push in India has come from 80 crore internet users and 50 crore smart phones who spurred the digital economy backed by solid bandwidth. The pandemic also pushed scores of sectors online. According to Goldman, Zomato IPO proved that Indian retail investors and QIBs have a strong appetite for long-gestation digital stories.

One of the big stock market trends that Goldman foresees is the shift in the composition of the Nifty with many more digital plays included in the index. Today, the Nifty is dominated by banks, financials, oil, IT and automobiles. That could shift largely in favour of digital plays. Goldman also projects India’s share of global market capitalization to increase 90 bps to 3.7% by 2024, although GDP share may go up by just 40 bps.

Also Read:

1. Paytm IPO Update

2. 8 Interesting facts about Paytm

3. Zomato IPO – Fun Facts and the Serious Truth

Next Article

BTST Trading Tips for Today: 22nd September, 2021

BTST Trading Tips for Today: 22nd September, 2021
by 5paisa Research Team 21/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.
 

BTST Trading Ideas for Today

1. BTST : NATIONALUM SEP FUT

- Current Market Price: Rs.91.1

- Stop Loss: Rs.89.9

- Target: Rs.94.5

 

2. BTST : VINATIORGA

- Current Market Price: Rs.1,894

- Stop Loss: Rs.1,876

- Target: Rs.1960

 

3. STBT : JUBLFOOD SEP FUT

- Current Market Price: Rs.4,126

- Stop Loss: Rs.4,145

- Target 1: Rs.4,085

- Target 2 : Rs.4,050

 

4. STBT : PIDILITIND SEP FUT

- Current Market Price: Rs.2,423

- Stop Loss: Rs.2,441

- Target: Rs.2,382

 

5. BTST : BALKRISIND SEP FUT

- Current Market Price: Rs.2,685

- Stop Loss: Rs.2,670

- Target 1 : Rs.2,718

- Target 2 : Rs.2,740

Next Article

HDFC Bank to Double Retail Loan Book in Next 2 Years.

HDFC Bank doubles retail loan book.
by 5paisa Research Team 22/09/2021

With a market cap of Rs.852,000 crore, HDFC Bank is India’s most valuable bank by. In fact, the gap is so wide that HDFC Bank‘s market cap is 74% more than ICICI Bank, which is ranked second. In terms of total business (as defined by the aggregate of loans and deposits), HDFC Bank is the largest private sector bank and second only to SBI overall.

However, the HDFC Bank retail loan portfolio faced some stiff challenges in the recent past. The credit cards business lost 2% market share in the last 8 months before the RBI lifted the ban on HDFC Bank issuing fresh credit cards. The retail loan share of HDFC Bank fell sharply from 55% to 46% in the last 3 years. To an extent, this was a conscious effort by HDFC Bank, but now it is doing a rethink.

The game plan for HDFC Bank is to go aggressive on retail lending portfolio. Just 2 days back, HDFC Bank had announced a tie-up with Paytm to issue co-branded credit cards to leverage on the massive 30 crore digital client base of Paytm. This will also help HDFC Bank recoup its market share in the credit card market, where it lost 2% market share to SBI, ICICI Bank and Axis Bank.

Read more:- RBI allows HDFC Bank to issue Cards

But the real action is likely to happen on the consumer lending portfolio. Let us look at some numbers. Out of its total loan book of Rs.11,50,000 crore, the retail book is about Rs.375,000 crore. Now, HDFC plans to adopt an aggressive strategy to increase this retail book from Rs.375,000 crore to Rs.800,000 crore in next two years. This will ensure HDFC Bank recoups its 55% market share of retail, as it stood 3 years back.

The big advantage  for HDFC Bank in this retail push is that its gross NPAs are still well below the peer group. While the gross NPAs of ICICI Bank and SBI are around 5%, Kotak Bank and Axis Bank have gross NPAs of above 3.5%. In comparison, the gross NPA ratio of HDFC Bank is just about 1.6%. That is a big edge.

Also Read:-

1. Solid HDFC Bank creates bad loan scare for investors


2. 8 Interesting facts about Paytm

Next Article

5 Stocks to Buy Today: September 22, 2021

5 Stocks to Buy Today
by 5paisa Research Team 22/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today

1. Brigade Enterprises Limited (BRIGADE)

BRIGADE Stock Details for Today: 

- Current Market Price: Rs.401

- Stop Loss: Rs.388

- Target 1: Rs.417

- Target 2: Rs.445

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observe a strong volume in this stock.

 

2. Seamec Ltd.(SEAMECLTD)

SEAMECLTD Stock Details for Today: 

- Current Market Price: Rs. 1,193

- Stop Loss: Rs. 1,115

- Target 1: Rs. 1,230

- Target 2: Rs. 1,280

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts observed that sideways move in this stock is expected to end. 

 

3. MindTree Ltd (MINDTREE)

MINDTREE Stock Details for Today: 

- Current Market Price: Rs. 4,354

- Stop Loss: Rs. 4,250

- Target 1: Rs.4,435

- Target 2: Rs. 4,525

- Holding Period: 1 week

5paisa Recommendation: Uptrend expected to continue and thus recommend this as one of the stocks to buy today.

 

4. Bajaj Finserv Ltd (BAJAJFINSV)

BAJAJFINSV Stock Details for Today: 

- Current Market Price: Rs. 17,587

- Stop Loss: Rs. 17,200

- Target 1: Rs. 17,850

- Target 2: Rs. 18,300

- Holding Period: 1 week

5paisa Recommendation: Our technical analysts have observed a positive momentum in this stock and this making this stock as one of the best stocks to buy today.

 

5. Maharashtra Scooters Ltd. (MAHSCHOOTER)

MAHSCHOOTER Stock Details for Today: 

- Current Market Price: Rs. 4,651

- Stop Loss: Rs. 4,550

- Target 1: Rs. 4,770

- Target 1: Rs. 4,835

- Holding Period: 1 week

5paisa Recommendation: Further buying expected

 

Share Market Today

SGX NIFTY: 

SGX Nifty indicates negative opening for Indian markets. SGX Nifty is at 17,536.80 levels, lower 25.25 points. (Updated at 7:45 AM).

International Markets:

US Market:

US markets end in the red before the Federal Reserve meet today where taper talk dominates headlines.

Dow Jones closed lower by 50 points after being up over 400 points intraday. Bond yields closed at 1.32% while Gold prices remained flat as markets await the Federal decision.

 

Asian Market:

Asian markets opened muted with the Japanese 'Nikkei' paring opening losses and trading lower by 120 points.

Most other Asian markets will reopen after 3 day’s holidays with the Chinese stocks being in the limelight after the "Evergrande" default.

Collateral selling in other markets could be the order of the day as markets brace for both events being played out today.

 

Disclaimer: The above report is compiled from information available on the public platforms.