Nifty nears 17,800 mark; Paras Defence IPO subscribed over 227 times so far

September 23,2021

The domestic equity barometers further extended gains and hit fresh intraday high in mid-afternoon trade. The Nifty hovered near the 17,800 mark. Private banks were in demand.

At 14:27 IST, the barometer index, the S&P BSE Sensex, was up 849.05 points or 1.44% to 59,776.38. The Nifty 50 index advanced 243.90 points or 1.39% to 17,790.55.

The S&P BSE Sensex hit a record high of 59,764.79 in afternoon trade. The Nifty was trading near its all-time high of 17,792.95.

The broader market indices lagged the benchmarks. The S&P BSE Mid-Cap index rose 1.31%. The S&P BSE Small-Cap index gained 1.02%.

In the broader market, Oberoi Realty (up 15.70%), Godrej Properties (up 12.04%), Welspun India (up 10.31%), KRBL (up 9.04%) and Hemisphere Properties India (up 8.54%) were the top gainers.

Zee Entertainment Enterprises (down 4.87%), Inox Leisure (down 3.25%), Quess Corp (down 2.79%), JK Lakshmi Cement (down 2.63%) and Himadri Speciality Chemical (down 2.42%) were the top losers.

Buyers outpaced sellers. On the BSE, 2019 shares rose and 1193 shares fell. A total of 155 shares were unchanged.

Primary Market:

Paras Defence and Space Technologies IPO opened for subscription from Tuesday (21 September) and it will close on Thursday (23 September).

The offer comprises of a fresh issue of up to Rs 140.60 crore and an offer for sale of up to 17,24,490 equity shares (including anchor portion of 29,27,485 equity shares) in the price band of Rs 165 to Rs 175 per share.

As on 14:12 IST, the IPO received bids for 162.66 crore shares as against 71.40 lakh shares on offer. The issue was subscribed 227.80 times so far.

The company intends to utilize the net proceeds from the fresh issue towards purchase of machinery and equipment amounting Rs 34.657 crore, funding incremental working capital requirements amounting Rs 60 crore, repayment or prepayment of all or certain borrowings amounting Rs 12 crore and for general corporate purposes. As of 31 July 2021, its aggregate outstanding indebtedness was Rs 115.827 crore.

Paras Defence and Space Technologies is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.

Buzzing Segments:

The Nifty Private Bank index rose 2.04% to 19,777.45 yesterday. The index declined 0.68% yesterday.

Axis Bank (up 3.04%), Kotak Mahindra Bank (up 3.03%), IndusInd Bank (up 2.05%), HDFC Bank (up 1.94%), Bandhan Bank (up 1.93%), ICICI Bank (up 1.92%) and Federal Bank (up 0.86%) advanced.

RBL Bank rose 2.06% to Rs 182.90. Shareholders of RBL bank approved the reappointment of Vishwavir Ahuja as the managing director and chief executive for the fourth term.

According to the results of the voting held at the 21 September 2021 annual general meeting, as much as 99.94% of shareholders who participated in the voting favoured the reappointment of Vishwavir Ahuja as the managing director (MD) and chief executive officer (CEO) for the fourth term beginning June this year.

In January 2021, the board of RBL Bank had approved a three-year extension for Ahuja from 30 June 2021 to 29 June 2024.

However, in June this year the Reserve Bank of India (RBI) approved only a one-year extension for Ahuja as MD & CEO of the bank with effect from 30 June 2021.

Meanwhile, the S&P BSE Telecom index was currently trading 0.63% higher at 1,787.44. The index has added 1.40% in three sessions.

The Telecom Regulatory Authority of India (TRAI) released the telecom subscription data for July 2021 on Thursday, 23 September 2021.

India's total mobile users rose 0.51% month-on-month to 118.68 crore as of 31 July 2021.

Reliance Jio added 65.18 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 44.32 crore. Reliance Industries (RIL), which controls Reliance Jio, was up 2.13%.

Bharti Airtel (up 0.29%) added 19.42 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 35.40 crore.

Vodafone Idea (up 1.64%) lost 14.30 lakh new subscribers in the month of July 2021 and its total subscriber based stood at 27.19 crore.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 73.65 from its previous closing of 73.87.

MCX Gold futures for 5 October 2021 settlement shed 0.63% to Rs 46,377.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.34% to 93.14.

In the commodities market, Brent crude for November 2021 settlement rose 20 cents or 0.26% to $76.39 a barrel.

The yield on 10-year benchmark federal paper rose to 6.129% from its previous close of 6.138%.

Economy:

The Bhartiya Janta Party (BJP) today said the Indian economy is on recovery path and government has taken several new initiatives which will further boost the economy. Briefing media in New Delhi, party spokesperson Gopal Krishna Agarwal said the labour force participation has increased to 40.1% in 2019 -20. Agarwal said direct tax collection has also increased by 28% as compared to pre COVID period. He added that indirect tax collection has also increased along with export.

Further, Agarwal added that India's ranking in Global Innovation Index has improved to 46 as compared to 81 in 2015.

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