Nifty 17401.65 (0.00%)
Sensex 58461.29 (1.35%)
Nifty Bank 36508.25 (0.00%)
Nifty IT 36157.85 (2.06%)
Nifty Financial Services 17982.9 (1.26%)
Adani Ports 739.10 (4.40%)
Asian Paints 3180.60 (1.35%)
Axis Bank 676.10 (-0.52%)
B P C L 378.85 (2.74%)
Bajaj Auto 3328.40 (2.43%)
Bajaj Finance 7180.50 (2.01%)
Bajaj Finserv 17758.15 (2.16%)
Bharti Airtel 732.55 (1.43%)
Britannia Inds. 3578.50 (1.22%)
Cipla 921.25 (-0.74%)
Coal India 159.30 (2.41%)
Divis Lab. 4777.30 (0.53%)
Dr Reddys Labs 4662.75 (1.22%)
Eicher Motors 2451.55 (0.54%)
Grasim Inds 1723.85 (2.63%)
H D F C 2807.80 (3.85%)
HCL Technologies 1184.70 (2.42%)
HDFC Bank 1525.75 (1.40%)
HDFC Life Insur. 705.30 (1.65%)
Hero Motocorp 2472.70 (1.00%)
Hind. Unilever 2383.30 (1.64%)
Hindalco Inds. 432.10 (1.69%)
I O C L 120.65 (2.51%)
ICICI Bank 722.40 (-0.73%)
IndusInd Bank 945.55 (1.27%)
Infosys 1748.25 (1.94%)
ITC 225.45 (1.60%)
JSW Steel 646.75 (1.50%)
Kotak Mah. Bank 1964.25 (0.56%)
Larsen & Toubro 1789.20 (0.18%)
M & M 849.55 (1.78%)
Maruti Suzuki 7324.95 (0.71%)
Nestle India 19503.20 (0.54%)
NTPC 128.70 (0.78%)
O N G C 144.00 (1.23%)
Power Grid Corpn 214.50 (3.52%)
Reliance Industr 2482.85 (0.64%)
SBI Life Insuran 1188.05 (1.99%)
Shree Cement 26289.80 (0.76%)
St Bk of India 477.00 (0.36%)
Sun Pharma.Inds. 766.25 (2.80%)
Tata Consumer 773.25 (0.06%)
Tata Motors 479.10 (0.81%)
Tata Steel 1112.40 (2.76%)
TCS 3642.90 (1.82%)
Tech Mahindra 1629.65 (2.65%)
Titan Company 2386.50 (1.11%)
UltraTech Cem. 7323.20 (0.01%)
UPL 698.20 (1.12%)
Wipro 646.80 (1.89%)

Equity Mutual Funds Recommendations For January 2021

Equity Mutual Funds Recommendations For January 2021
by Mrinmai Shinde 08/01/2021

When it comes to your financials, we are all geared up to make 2021 your best yet! And in the move we are now going to recommend you top funds which you can consider investing into. 

We all know that disciplined investment is the key to achieve your financial goals. But to make these investment, you need to take informed decisions. So through this article, we are aiming at helping you gain all the vital information about the top performing funds to help you churn out maximum profits by making your money work harder for you, than you do for it. 

Here’s all you need to know about the top performing Equity Mutual Funds.
 

Scheme

AUM(?cr)

6M(%)

1Y(%)

MiraeAssetLargeCapFund(G)

20,797

33.4

13.7

IIFLFocusedEquityFund(G)

1,210

38.3

23.8

UTIEquityFund(G)

13,546

46.4

31.5

AxisMidcapFund(G)

7,878

33.3

26

NipponIndiaSmallCapFund(G)

10,398

45.3

29.2

(Note: Returns less than 1 year are absolute; Returns greater than 1 year are CAGR; AUM is as on November 2020; Returns are as on December 31, 2020) 
Source: ACE MF


Mirae Asset Large Cap Fund : 
It is an equity fund that primarily invests (at least 80% of AUM) in top Nifty companies by market capitalization. Remaining 20% is invested in high conviction mid cap ideas.  The key investment strategy involves investing in high quality businesses available at a reasonable price and holding the same over the period of times. Thus, the scheme focuses to identify companies which have sustainable competitive advantage in their space and therefore have strong pricing power.
 

  • As of November 2020, the fund had invested 86% of AUM in large cap stocks while 11% was invested in mid cap stocks. 
  • The fund had highest allocation to Banks (25.8%) followed by Information Technology (12.8%).
  • Its top stock holdings consist of HDFC Bank (11.2%) followed by Reliance Industries (9.0%) and Infosys (8.3%).

Investors who prefer to invest in a diversified portfolio of blue chip stocks can invest in this fund to create wealth in the long term. This scheme is suitable for investors with moderately high risk appetite and at least 5 years of investment horizon. 

IIFL Focused Equity Fund

Focused category mutual fund schemes aim to generate superior return through a concentrated portfolio of equity & equity related instruments. IIFL Focused Equity Fund’s key objective is to generate long term capital appreciation from a portfolio of equity & equity related securities by investing in maximum 30 stocks of various market capitalisation.

The scheme follows multi-cap approach with orientation towards large cap companies. Its stock selection criteria is based on three attributes viz. (1) companies which are prime beneficiaries of secular growth, (2) companies which are poised for strong uptick in performance due to cyclical upturn, (3) defensives which are poised for higher growth. 
 
  • As of November 2020, the fund had invested 67% of AUM in large cap stocks while allocation to mid cap and small cap stocks was 16% and 14% respectively.
  • The fund had highest allocation in Banks (20.2%) followed by Pharma (12.4%). 
  • It top holdings consist of ICICI Bank (9.7%) followed by HDFC Bank (6.7%) and Infosys (5.6%).

Investors with moderately high risk appetite and an investment horizon of at least 5 years, can look to invest in this scheme to accumulate wealth in the long run. 

UTI Equity Fund

The fund aims to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across the market capitalisation. The scheme focuses on high quality businesses that have an ability to show strong growth for a long period of time and are run by seasoned managements. The fund follows a bottom up stock selection with well-defined metrics of free cash flows, capital efficiency and ability to compound earnings
 
  • As of November 2020, the fund had invested 64% of AUM in large cap stocks while 28% was invested in mid cap stocks. 
  • The fund had highest allocation to Banks (15.2%) followed by Information Technology (14.2%)
  • Its top stock holdings comprise of Bajaj Finance (7.0%), HDFC Bank (6.3%) and Kotak Mahindra Bank (5.1%)

Investors who prefer to invest in a diversified portfolio of stocks can invest in this fund to create wealth in the long term. This scheme is suitable for investors with moderately high risk appetite and at least 5 years of investment horizon. 

Axis Midcap Fund

It is an equity based fund that aims to generate capital appreciation by actively managing a diversified portfolio of a mid cap stocks, that is the companies ranked from 101st to 250th by market capitalization. The fund looks to identify and invest in midcap companies that have the potential to deliver superior returns due to potential of faster earnings growth.
 
  • As of November 2020, the fund had invested 71% of AUM in mid cap stocks, while 24% was invested in large cap stocks. 
  • The fund had highest allocation to Pharma (11.4%) followed by Banks (10.3%).
  • The scheme’s top holdings comprise of Cholamandalam Investment & Finance (4.9%), PI Industries (4.4%) and Voltas (4.0%).

Investors looking for inflation-beating superior returns in the long run can invest in this scheme. Mid cap funds are suitable for those investors who have high appetite for market volatility and investment horizon of 7-8 years. 

Nippon India Small Cap Fund

The scheme predominantly invests in equity and equity related instruments of small cap stocks, that is the companies ranked 251st and beyond by market cap. The scheme identifies small cap companies which are mid-caps of tomorrow and offer dual advantage of high growth prospects and relatively low valuation. Thus ,the fund focuses on good growth businesses with reasonable size, quality management and rational valuation. 
 
  • As of November 2020, 78% of its AUM was invested in small cap stocks while 12% was invested in mid cap stocks. 
  • It has highest allocation to Chemicals (7.6%) followed by Auto Ancillaries (6.3%).
  • The fund’s top stock holdings comprise of Deepak Nitrite (4.6%), Navin Flourine (3.3%) and Tube Investments (3.1%).

Investors who are seeking to invest in a diversified portfolio of small cap stocks and desire for risk adjusted returns in the long run can invest in this scheme. This open ended scheme is relevant for investors who have high risk appetite with investment horizon of 8-10 years.

 

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Investing In Indian Markets vs US Markets

Investing In Indian Markets vs US Markets
by Vested Team 14/01/2021

“Never invest in a business you cannot understand”. An oft repeated quote from Warren Buffet, but one that perhaps takes different interpretations now as Indian investors warm up to investment opportunities outside the country – the USA, in particular. The intelligent investor would now rather understand the US market and begin his investment journey there as well, instead of skipping the market for exclusively domestic opportunities. After all, investors are often advised to diversify their investments geographically by investing in both national and international markets.

US investing is often sold by statements such as “The US indices have outperformed Indian markets by 8-15% in the last decade”. But if investors give into such statements on face-value and expect the same level of performance in the future, they’re likely to be met with disappointment. Past performance is no guarantee of future returns, after all. Which is why we’ve come up with some factors against which both the US markets and Indian markets can be compared, to help you make the right decision.

Portfolio Diversification

“What’s interesting about US stocks is that you not only get exposure to the United States but also to the world, as many companies have global operations but are listed there.” This statement by Viram Shah, co-founder and CEO of Vested Finance, sheds light on the many advantages provided by investment opportunities in the US market.

Due to the ongoing coronavirus pandemic, equities globally fell together, with decline in the range of over 20-30%. Diversification of investments would have proven to be effective and beneficial during this time. By 8th June 2020, the S&P500 had already recovered all of its coronavirus-induced losses. The Sensex meanwhile, was still 17% down.

Currency

The currency you trade in and invest with can have significant implications on your portfolio, which can be both positive and negative. They play a pivotal role when it comes to investing in US markets.

Take the Indian Rupee – which has witnessed a consistent decline in value against the American Dollar. This is a major con because all investments made in the Indian markets are in INR, which means they decline in value over time. In this year alone, the dollar is up 6% against the rupee.

One of the major advantages of investing in US markets is the American Dollar. As it appreciates in value, so do your investments, even if your portfolio itself is unchanged. 

Global Factors

While the Indian start-up ecosystem has been thriving, the US markets continue to host all major corporations leading their sectors with innovative offerings. For investors in India, it isn’t possible to participate in growth stories at home – since Indian laws mandate 3 years of consecutive profits before a company can go public. The story of many start-ups being one of deferred profits for growth and market share, this effectively shuts most Indian investors out of the opportunity to show their confidence in new business models. But relatively lax requirements in the US, means it’s possible for investors globally to participate in the journeys of many innovative models – and we’ve seen often how that plays out. Uber, Amazon, Tesla, Facebook – all these and more are the results of the US market and its model. For many investors, it can be crucial for their investment portfolio to evolve to keep up with these opportunities.

The US market therefore, is a more promising prospect as it allows global exposure and enables investors to grow with the biggest companies in the world, such as Google, Amazon, Facebook, etc. 

Research & Efforts 

It is true that involving yourself in 2 markets would demand attention and research for two economics, in addition to multiple other global factors that influence these markets. To an average investor, this may well be a daunting and time-consuming task. Some may see diminishing returns in this exercise and may be willing to forego the potential for higher profits in favour of lower efforts. This concern may be addressed by investing in US markets by ETFs, which lower risk by diversification. But Indian markets do retain some edge on this aspect for the average investor. 

Volatility

When compared to Indian markets, the US markets have been less volatile in the long run. Indian equities have shown great volatility, with bigger swings in returns over the years. This is another reason experts recommend diversification when it comes to investing, since risks are spread out and diminished. Moreover, investors who choose to diversify by investing in US markets can expect their portfolios to move differently from Indian indices. 

Which market is better? 

Sure, both the Indian and the US markets have their advantages. But in a modern investing climate with access to the international market, it’s easy to see how US markets show more promise. This is in part due to their global affinity and nature, as well as the fact they host some of the most promising companies in the world. While the Indian market should certainly remain a significant part of an investor’s portfolio, there’s no denying that the US makes a strong case for a place in the Indian investor’s portfolio. 
 

Source: Vested Team

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Which are the stocks that generated magnificent returns in the past 10 years?

Which are the stocks that generated magnificent returns in the past 10 years?
by Nikita Bhoota 15/01/2021

It is rightly said that if one stays invested in the equity markets for longer-term, the investment is likely to generate magnificent returns in the long-run.  Mr. Warren Buffet says” If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”

Given the fact that Buffett’s time horizon is a decade, we have also analysed some of the stocks from the Nifty 100 list that have generated more than 20% CAGR over a period of 10 years.
 

Company Name

17-Aug-11

17-Aug-21

10 year CAGR

Bajaj Finance Ltd.

67.3

6,410.1

57.7%

Bajaj Finserv Ltd.

488.4

14,737.3

40.6%

Berger Paints India Ltd.

37.3

815.0

36.1%

Eicher Motors Ltd.

136.0

2,515.7

33.9%

Havells India Ltd.

68.1

1,224.4

33.5%

Shree Cement Ltd.

1,651.3

26,200.3

31.8%

Britannia Industries Ltd.

236.6

3,696.5

31.6%

Info Edge (India) Ltd.

351.2

5,455.3

31.6%

Pidilite Industries Ltd.

168.2

2,216.1

29.4%

Abbott India Ltd.

1,470.1

19,045.3

29.2%

HCL Technologies Ltd.

105.8

1,143.0

26.9%

Aurobindo Pharma Ltd.

71.4

731.5

26.2%

Torrent Pharmaceuticals Ltd.

308.5

3,008.1

25.6%

Asian Paints Ltd.

324.5

3,015.3

25.0%

Titan Company Ltd.

210.4

1,874.5

24.4%

Kotak Mahindra Bank Ltd.

222.8

1,788.4

23.2%

Tech Mahindra Ltd.

179.0

1,413.7

23.0%

Hindustan Unilever Ltd.

316.4

2,483.8

22.9%

Motherson Sumi Systems Ltd.

28.9

216.2

22.3%

Biocon Ltd.

54.3

366.6

21.0%

Marico Ltd.

79.7

520.6

20.7%

HDFC Bank Ltd.

233.8

1,514.7

20.5%

Indraprastha Gas Ltd.

84.3

534.9

20.3%


Disclaimer: The above details is compiled from information available on public platforms. These are not buy or sell recommendations.Source: Ace Equity
*CAGR stands for Compound annual growth rate


Bajaj Finance Ltd:
Bajaj Finance (BAF), erstwhile Bajaj Auto Finance, provides financing for two-wheelers, consumer durables, housing, small businesses, construction equipment and infrastructure finance. BAF continues to be the largest consumer durables lender in India. The stock generated 57.7% CAGR in the past 10 years.

Eicher Motors Ltd.
Eicher Motors is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. Eicher manufactures the well-known Royal Enfield (RE) motorcycles in India. The company entered into a 50:50 JV with the Volvo Group to form VE Commercial Vehicles (VECVs). Operational since July 2008, VECV comprises five business verticals – Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain. VECV undertakes the complete range of Eicher’s commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. 

Berger Paints India Ltd:
Berger has presence in the decorative paints, industrial coatings segments in the domestic and international markets. Further, it has a presence in external insulation finishing systems. In the industrial coatings segment, Berger caters to the protective coatings, automotive (primarily two-wheeler and three-wheeler and commercial vehicles) and general industrial segments. 

Britannia Industries Ltd.
Britannia Industries is a primarily biscuits company based in Bangalore. Britannia Industries belongs to the Wadia Group, a cotton-to-real estate conglomerate. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Biscuits contribute more than 80% of the company’s turnover. It has iconic brands like Tiger, Good Day and 50-50 under its belt.

Info Edge (India) Ltd.
Info Edge’s naukri.com, the leading online portal for recruitments in India, was launched in 1997. It also operates Quadrangle, a brick-andmortar executive search service. The company also has other classified based portals, jeevansathi.com (matrimony), 99acres.com (real estate) and shiksha.com (education). Info Edge’s key investments include Zomato and Policybazaar. 


Shree Cement Ltd.
Shree Cement (SCL) is the second-largest cement player in the country, with capacity of 42mtpa. SCL derives ~70% of its sales from the northern + central regions and ~25% from the eastern region, with the balance from the South.

Abbott India Ltd:
Abbott India ltd (AIL) is a healthcare company that discovers, develops, manufactures and markets various products in area of Anesthesia, Animal Health, Anti-Infectives, Cardiovascular, Diabetes Care, Hematology, Immunodiagnostics and Clinical Chemistry, Immunology, Metabolics, Molecular, Neuroscience, Nutrition, Oncology, Pain Care, Point of Care, Renal Care, Vascular, Virology.

Asian Paints Ltd.
Asian Paints, the largest paint manufacturer in India, operates in the decorative as well as the industrial coatings segments (through its JV with PPG Industries) and has been the market leader in the Indian paints industry since 1968. The company is the second-largest automotive coatings player in India and caters for the auto OEM and refinish markets. Asia contributes the largest share of revenue to its international business (46%), with the rest coming from the Middle East (28%), Africa (25%) and South Pacific regions (5%). 

Torrent Pharmaceuticals Ltd.

Torrent Pharma (Torrent) is a fully integrated pharmaceutical company producing branded and generic formulations, API and intermediates. Almost 39% of Torrent’s revenues come from the domestic market where the company has a specialty-focused product basket and a strong marketing set-up. It ranks second in the CVS and third in the CNS segment – two of the faster-growing  therapies in India. 


The Indian stock market has witnessed huge ups and downs in the last 10 years. The factors that largely affect the share market performance are changes in Government policy, economic numbers, activities of FII and DII in the stock market, devastating effects of natural disasters.

Additionally, factors like political changes like election, budget, government intervention, geopolitical issues also have a huge impact on the financial markets. Frequent changes in exchange rates, changes in gold and bond prices also impact the stock performance. Inflation and interest rate also plays a crucial role in deciding the market movement.

Above all the challenges, the above-mentioned stocks have surpassed the benchmark index Nifty 50 and Sensex CAGR of 12.6% and 12.7% respectively in the same period. 

However, investors should not select the stocks for investment based only on historical returns. They should also consider the fundamentals of the company before picking up stocks for investment. The stocks with strong fundamentals are likely to earn good returns in the long-run.

Disclaimer: The above details is compiled from information available on public platforms. These are not buy or sell recommendations.

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What people and sectors are expecting from Budget 2021?

What people and sectors are expecting from Budget 2021?
by Nikita Bhoota 25/01/2021
The coronavirus pandemic has severely impacted lives across the world in many ways. Many people have witnessed financial setbacks in the country during the pandemic. The way people spend or save their money has drastically changed due to economic uncertainties. Work from home has become a 'new trend for salaried employees. Buying an insurance product, especially health insurance has gained much more importance over luxury products. 

Finance minister Nirmala Sitharaman is going to present the Union Budget on 1 February, 2021. To boost the economy, the Budget must focus on pushing consumption which means putting more money in the hands of people.
From tax relief to more exemptions, here's what Indian salaried individuals and others expects from Budget 2021

Increase the upper limit of Section 80C
Under Section 80C, an individual is eligible to claim tax deductions of up to ?1.5 lakh on various payments including life insurance premiums, principal payment of home loan, fixed deposits, provident funds etc. Considering the inflation in the recent past, the government may increase this upper limit to up to ?2.5-3 lakh. The rise in the exemption limit will inspire people to spend more on tax-saving instruments backed by the government. The increase in the deduction limit under Section 80C was last increased in 2014.

Hike tax rebate on housing loans
To boost spending and to support the real estate industry, the Union Budget 2021 should introduce more tax exemptions for the homebuyers. Currently, an individual gets ?1.5 lakh exemptions under Section 80C and ?2 lakh under 24B for home loan. The tax rebate on housing loan interest rates under Section 24 should be increased to at least ?5 lakh to generate healthier housing demand.

Increase the upper cap on health insurance premium
The global pandemic has showed us that health insurance is a necessity, not an option anymore. Therefore, the government may increase the upper limit on health insurance premiums under Section 80D.

As per the provisions of section 80D, an individual can claim an exemption of up to ?25,000 (?50,000 or ?75,000 or ?1 lakh if bought for parents) on the premiums paid for the medical insurance of self and family.

Exempt long term capital gain tax:
The government should exempt long-term capital gains on the sale of Indian-listed equity shares. This measure will help the Indian capital markets grow exponentially and also encourage Indian resident investors to invest in the equity market. 


Work from home expenses:
Work from home has become a new trend now. It is expected that the government may provide some relief to taxpayers to compensate for the higher cost incurred while working from home; perhaps some deductions for expenses such as electricity etc or some kind of fixed deduction.

Now let’s talk about what industry expects from the budget:

Aviation and Real Estate:
The sector hopes for a reduction in high taxes and levies as airlines as the sector is highly impacted by Covid19.

Several policy steps have been taken to boost real estate in pandemic-hit 2020. The sector is now expecting the government to expand its affordable housing scheme and give more tax benefits to potential homebuyers.

Automobile, Defence and FMCG:
The auto sector has strongly recovered from the economic shock caused on account of Covid19. Automakers now expect more demand-creating measures in the budget for faster sales recovery.

The government is likely to announce higher budget allocation for the defence sector, with focus on indigenous procurement and R&D.

Like automobiles, the FMCG sector also expects more demand-boosting measures to sustain recovery momentum.

Healthcare:
After the pandemic-hit year, India’s healthcare sector is looking for reforms like reduction in taxes on healthcare and treatment besides higher budgetary allocation. Better allocation for pharma research is also on the cards.

Consumer durables/Electronics and Education:
Businesses engaged in selling consumer durables hopes for a reduction in component prices besides a demand push to boost sales.

The government is expected to allocate more funds towards strengthening technological capacities for improving online education in smaller cities, towns and rural areas. 

Agriculture and Railways
The government may increase its overall agriculture expenditure to pacify farmers protesting against its farm laws. 

Privatisation of trains and infrastructure development remains major priorities for the Indian Railways. Measures may be announced for better public-private partnership (PPP) in passenger train operations.

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Improving demand improves the outlook of the consumer electrical sector

Improving demand improves the outlook of the consumer electrical sector
by Nikita Bhoota 28/01/2021
Consumer Electrical companies kick-off CY21 on a cheerful note. While consumer demand is back to pre-Covid levels, initial green shoots of pick-up in the housing sector bode well for rekindling an important long-term demand driver. The proposed Production-Linked Incentive (PLI) scheme across LED lighting, ACs, STB and Laptop & Tablets offers attractive opportunities for domestic EMS players and brands.

Revenue momentum sustains:
 
The sharp pick-up in sales offtake witnessed in Sep-2020 has sustained across most categories, buoyed by healthy festive spending for consumer durables, early onset of winter aiding demand for seasonal products, large national brands sustaining market share gains from small & unorganised players and increased reach in tier 2/3/4 towns. Restriction on imports for LED TVs, ACs & other products has significantly aided volume growth for Dixon/Amber and other domestic brands. B2B demand was soft and is likely to normalise by Mar-2021, supported by government spending.

Channel up-stocks ahead of pricing actions:
 
While the impact of the price increase − announced (5-15% across various categories) to partially offset inflationary headwinds − would be seen from Jan-2021, channel partners − who were otherwise working with thin inventories throughout the pandemic − started up-stocking in Dec-2020, thereby aiding better primary sales for companies. Fans and ACs witnessed healthy quarter-end stocking, ahead of the season and price hike.

Details on new PLI schemes to provide visibility:
 
The PLI scheme for ACs (Rs50bn) and LED lighting (Rs12bn) is expected to be announced any time in Jan-2021, thereby likely to enhance cost competitiveness of brands and ODM players like Crompton, Havells, Voltas, Amber and Dixon. In addition, Dixon is looking to enter new verticals like laptops & tablets under the proposed PLI scheme (~Rs10- 20bn), which opens a large untapped domestic market.

Stock Performance:

Nifty 50 has rallied 71.7% (March 25, 2020- January 18,2021) since the first nationwide lockdown was announced by Prime Minister Narendra Modi Here, we have discussed some consumer electrical sector stocks that have given positive returns or have outer performed the benchmark index Nifty 50 in the same period.

Company Name

25-Mar-20

18-Jan-21

Gain

Dixon Technologies (India) Ltd.

3,261.3

15,315.7

369.6%

Bajaj Electricals Ltd.

278.6

716.8

157.3%

Amber Enterprises India Ltd.

1,141.7

2,543.1

122.8%

Havells India Ltd.

473.7

985.7

108.1%

Crompton Greaves Consumer Electricals Ltd.

190.8

379.7

99.1%

V-Guard Industries Ltd.

150.6

215.2

42.9%

Symphony Ltd.

721.3

1,019.5

41.4%

Source: Ace Equity

In the above table, we have discussed the performance of some of the stocks in the consumer electrical industry that have given spectacular returns in the past 10 months. Dixon Technologies (India) Ltd. has given the maximum return whereas, Symphony Ltd. has given the lowest return of 41.4% from March 25,2020 to January 18, 2021.

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Aditya Birla Sun Life AMC IPO Subscription Day 2

Aditya Birla Sun Life AMC IPO subscription Day 2
by 5paisa Research Team 29/01/2021

The Rs.2,768.26 crore IPO of Aditya Birla Sun Life AMC Ltd, consisting entirely of an offer for sale (OFS) of Rs.2,768.26 crore, was just about fully subscribed on Day-2. As per the combined bid details put out by the BSE, Aditya Birla Sun Life AMC Ltd IPO was subscribed 1.07X overall, with bulk of the demand coming from the retail segment. The issue closes on Friday, 01st October.

As of close of 30th September, out of the 277.99 lakh shares on offer in the IPO, Aditya Birla Sun Life AMC Ltd saw bids for 298.73 lakh shares. This implies an overall subscription of 1.07X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI and QIB bids typically come in only on the last day of the IPO.

Aditya Birla Sun Life AMC Ltd IPO Subscription Day-2

 

Category

Subscription Status
Qualified Institutional (QIB) 0.06 Times
Non-Institutional (NII) 0.40 Times
Retail Individual 2.00 Times
Others 0.67 Times
Total 1.07 Times

 

QIB Portion

On 28 September, Aditya Birla Sun Life AMC Ltd did an anchor placement of 110.81 lakh shares at the upper end of the price band of Rs.712, raising Rs.789 crore. The list of QIB investors included a number of FPI names like HSBC, IMF, ADIA, Morgan Stanley, Societe Generale etc. It included domestic institutions like ICICI Pru MF, HDFC MF, SBI MF, Axis MF, SBI Life, HDFC Life, Kotak MF, IIFL Special Opportunities Fund and Abakkus Growth Fund. 

The QIB subscription continued to see negligible subscription at the end of Day-2. The QIB portion (net of anchor allocation of 110.81 lakh shares as above) had a quota of 73.87 lakh shares of which it has got bids for just 4.53 lakh shares, implying a subscription of 0.06X by QIBs at the end of Day-1. QIB bids typically get bunched on the last day, although the anchor response does indicate strong interest in the issue from institutional investors.

HNI Portion

The HNI portion got subscribed 0.40X (getting applications for 22.06 lakh shares against the quota of 55.40 lakh shares). This is an OK response on Day-2 for the HNI segment and could be due to the large 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 fully subscribed 2.00X at the end of Day-2, showing strong retail appetite. For retail investors; out of the 129.28 lakh shares on offer, valid bids were received for 259.04 lakh shares, which included bids for 201.60 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.695-Rs712) and will close for subscription on 01st October.
 

Also Read:-

Aditya Birla Sun Life AMC IPO : 7 Things to Know About

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