IREDA IPO: GMP, what are the subscription status signals? Allotment Date, How to Check Status

The Indian Renewable Energy Development Authority (IREDA) IPO concluded its subscription period on Thursday, receiving robust interest from investors. The overall subscription status stood at 38.80 times, with the retail portion being subscribed 7.73 times. The tentative allotment date for the IREDA IPO is expected to be November 28, 2023, with the likely listing date set for November 29, 2023.

In the gray market, which operates as an informal trading platform, the premium for IREDA Ltd shares has risen to ₹13, reflecting the heightened interest in the public offering. Market observers noted a significant increase in the gray market premium (GMP) from ₹7 to ₹13 over the past week, underscoring the buzz surrounding the IREDA IPO in the primary market. Despite recent market fluctuations, the gray market has remained bullish, and analysts anticipate further upside if there is a reversal in the market trend when the Indian stock market reopens on Tuesday after the Monday holiday.

While the GMP serves as an indicator of market sentiment, experts caution that it does not necessarily determine the success or failure of an IPO. They emphasize the importance of considering fundamental factors and evaluating the company's balance sheet. It's noted that the gray market is speculative and unregulated, lacking a direct connection to the company's financials.

During the three-day bidding period from November 21 to November 23, 2023, the IREDA IPO garnered substantial interest across investor categories. Qualified Institutional Buyers (QIBs) led with a subscription of 104.57 times, followed by the non-institutional investor (NII) segment at 24.16 times, and the employee segment at 9.80 times.

Upon the announcement of share allotment, investors can check the IREDA IPO allotment status online through the BSE website or the official registrar's website, Link Intime Private Limited. The BSE direct link for checking allotment status is bseindia.com/investors/appli_check.aspx, and for Link Intime, investors can use the link linkintime.co.in/mipo/ipoallotment.html. The status can be accessed by entering the IREDA IPO application number and PAN details.

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iMotion Automotive Technology Aims for $100 Million IPO in Hong Kong

China's iMotion Automotive Technology plans to raise $100 million via an IPO in Hong Kong by the end of November, as per sources familiar with the matter.

The company, established in 2016, received approval from China's securities regulator earlier this year to issue shares overseas under new regulations introduced in March, as reported by Reuters in June. However, iMotion did not respond to Reuters' request for comment.

Headquartered in Suzhou, iMotion aims to commence its IPO subscription process next week, targeting a debut on the Hong Kong Stock Exchange (HKEX) in early December. Sources caution that market conditions, impacted by high inflation and rising global interest rates, may prompt alterations to these plans. They requested anonymity as the information isn't yet public.

Initially eyeing a $300 million raise, iMotion reportedly scaled back its fundraising goal, revising it downwards, as mentioned by Bloomberg News in March. In early October, China expressed its support for various firms within the smart car supply chain, forming a consortium focused on promoting innovation.

This IPO in the world's largest automobile market arrives amid a challenging phase for Hong Kong's IPO landscape, with new share sales in the city declining by 32.5% in the first three quarters of 2023, according to LSEG data.

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Market remains flat for the second week; rupee falls, FII selling continue

The market has displayed a lack of significant movement for the second consecutive week, with the rupee depreciating and foreign institutional investor (FII) selling persisting.

In terms of sectors, the BSE Realty index showed a 2 percent gain, while the BSE Information Technology index increased by 1.8 percent, and the BSE Capital Goods index registered a 1 percent rise. Conversely, the BSE Power Index experienced a 2.5 percent decline, the BSE Metal index dropped by 2.3 percent, and the BSE Telecom index witnessed a 2 percent decrease.

The Indian benchmark indices navigated a highly volatile week, ultimately ending on a relatively flat note. The initial half of the week was marked by pressure stemming from escalating US bond yields, a stronger dollar, and mixed auto sales data. However, the latter part of the week brought some relief, thanks to favorable domestic PMI data, an in-line RBI policy outcome, and falling crude oil prices.

For the week, the BSE Sensex closed with a modest gain of 0.25 percent or 167.22 points, reaching a total of 65,995.63. Similarly, the Nifty50 added 15.2 points to conclude the week at 19,653.50.

Within the BSE Small-cap index, notable performers included Vascon Engineers, Sasken Technologies, Bhagiradh Chemicals and Industries, Authum Investment & Infrastructure, Raghav Productivity Enhancers, and Good Luck India, all registering a significant 20 percent increase. Conversely, Mahanagar Telephone Nigam, DCM Shriram Industries, Aarti Pharmalabs, Steel Exchange India, GE T&D India, Sat Industries, Indiabulls Housing Finance, and Kalyani Steels faced declines ranging from 7 to 9 percent.

The BSE Mid-cap Index, however, experienced a 0.8 percent dip, largely influenced by downward movements in stocks such as Dalmia Bharat, Glenmark Pharma, Gujarat Fluorochemicals, Vodafone Idea, Steel Authority of India, CG Power and Industrial Solutions, and Supreme Industries. In contrast, gainers in this category included Godrej Industries, Godrej Properties, Solar Industries India, Indian Railway Catering & Tourism Corp, MphasiS, and The Ramco Cements.

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Prominent Finfluencer Abhishek Kar Admits to Violating SEBI Norms by Providing Investment Advice

In a startling revelation, Abhishek Kar, one of the most prominent finfluencers in the industry, has admitted to engaging in deceptive practices by offering "buy" and "sell" recommendations disguised as 'B' and 'S', thereby violating SEBI (Securities and Exchange Board of India) regulations. This revelation exposes a concerning trend where unregistered individuals sell investment advice to attract subscribers for their trading courses.

Abhishek Kar, with a substantial following of over 1.5 million on various social media platforms, is now facing scrutiny for his actions. Despite being a sought-after guest speaker at prestigious institutions like the Indian Institute of Technology (IIT) and the Institute of Chartered Accountants of India (ICAI), it appears that Kar had been using his influence to promote his trading courses by providing investment advice.

In an audio recording that has been widely circulated online, Kar can be heard confessing to the use of coded language ('B' and 'S') to convey "buy" and "sell" recommendations. This admission raises concerns as Kar is not a registered financial advisor, and thus, offering investment advice without proper registration is a clear violation of SEBI norms.

During a conversation with Shreyas Bandi, a veteran trader and a figure known for debunking financial myths, Kar attempted to justify his actions by stating, "I was never writing 'buy' or 'sell' on my Telegram channels, only giving 'B' or 'S,' but yes, technically it means more or less the same."

This revelation has triggered an online campaign aimed at holding trader-trainers like Abhishek Kar accountable for their actions. Trader-trainers have often been criticized for enticing individuals with the promise of substantial earnings from trading, despite knowing the risks involved. Consequently, various platforms have urged trader-trainers to provide verified profit-and-loss statements as evidence of their claims, a request that has met with resistance from many in the industry.

The conversation between Bandi and Kar sheds light on the illegal practice of unregistered individuals providing investment advice to foster the rapidly growing "training" business. Kar admitted that he initially started his Telegram group by sharing charts but later turned to "observational trades" to attract more subscribers.

Observational trades, a term used within the industry, refer to trades made by a trader-trainer in real-time, which are then copied by their channel subscribers. While trader-trainers often defend this practice as merely for "observation" and learning purposes, it is clear that many subscribers interpret these actions as investment advice and replicate the trades.

Kar further revealed that he lured subscribers to his Telegram channels, disguised as learning platforms, using three methods. One approach was selectively highlighting profitable trade days, analyzing those trades, and then inviting viewers to join the premium Telegram group for access to similar insights and trading recommendations.

The term "premium group" is commonly used by trader-trainers to describe Telegram groups that offer paid access to stock advice and trading calls.

In the conversation, Kar disclosed that he collaborated with Rigi, a content creator platform, to combine his training and mentoring programs, which garnered significant attention. He explained that anyone joining a mentoring program would gain access to training videos, a move that was perceived as receiving both training and personalized mentoring.

Market insiders have pointed out that mentoring programs typically go beyond explaining general stock market concepts and allow student-subscribers to follow the trader-trainer's live trades, effectively providing investment advice.

On May 29, Rigi made it mandatory for any influencer selling content related to the securities market to register with SEBI as a research analyst or investment advisor. In response to queries from Moneycontrol, Rigi clarified that prior to this announcement, Abhishek Kar utilized a Telegram channel as an extension of his educational courses offered through Rigi. They emphasized that the content within Kar's Telegram channel was his sole responsibility, and Rigi served as a facilitative platform without control or oversight over the content.

Following the announcement, Rigi restricted services related to Kar's Telegram channel to comply with their updated guidelines aimed at maintaining platform integrity. However, Rigi maintains that they operate within the IT/ITeS sector and do not fall directly under SEBI's regulatory framework. Their primary role is to provide tools for content creators to engage and monetize their audience.

This revelation has raised important questions about the regulation and transparency of financial influencers and the urgent need for accountability in the financial advice industry. Investors and traders are reminded of the significance of verifying the qualifications and credibility of individuals providing investment advice to make informed decisions.

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Vishnu Prakash R Punglia IPO: Infrastructure Firm Sets August 24 Opening, Price Range at Rs 94-99 per Share

Infrastructure company Vishnu Prakash R Punglia is poised to launch its Initial Public Offering (IPO) on August 24, offering its equity shares in a price band of Rs 94-99 each. The public issue, consisting of 3.12 crore equity shares, is exclusively a fresh issue by the company.

The IPO also includes a reserved portion of 3 lakh equity shares for its employees, granting them shares at a discounted rate of Rs 9 per share from the final offer price. With plans to raise approximately Rs 308.88 crore through the public issue at the upper price band, the Rajasthan-based engineering, procurement, and construction company aims to channel these funds towards capital expenditure and working capital requirements.

The offering is set to conclude on August 28, while the anchor book will open for a single day on August 23. Prospective investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. Qualified institutional buyers will have access to half of the issue size, while 15 percent is reserved for high-net-worth individuals (HNIs), and the remaining 35 percent is earmarked for retail investors.

Vishnu Prakash R Punglia, known for its experience in designing and constructing various infrastructure projects, is particularly focused on water supply projects (WSPs). The company has successfully executed over 75 WSPs to date, with 38 WSPs currently under execution. Boasting a strong clientele across different government departments, the company's robust order book includes over 85 projects completed and 51 ongoing projects spread across 9 States and 1 Union Territory.

While the fiscal year 2022-2023 witnessed the company doubling its net profit to Rs 90.64 crore, revenues from operations during the same period surged by 48.7 percent to Rs 1,168.4 crore. Notably, the company has managed to achieve a CAGR of 55.10 percent in its topline growth from FY21 to FY23. Despite the impressive performance, the company's debt has risen, reaching Rs 250.4 crore in FY23, compared to Rs 176.6 crore in FY22 and Rs 110.8 crore in FY21.

The IPO's merchant bankers include Choice Capital Advisors and Pantomath Capital Advisors, while Link Intime India will serve as the registrar.

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Market ends week with small gains; realty index climbs 4%, rupee appreciates

Indian equity market witnessed a rangebound movement to end almost flat in an eventful week ended June 2 amid better-than-expected GDP data, 31-month-high manufacturing PMI, higher GST collections, strong auto sales in May and closure of US debt ceiling discussions. In this week, the BSE Sensex gained 45.42 points to close at 62,547.11, and Nifty50 rose 34.75 points to end at 18,534.1.

The BSE Small-cap index surged 2.4 percent with Nucleus Software Exports, Force Motors, Centum Electronics, V2 Retail, Nureca, Brightcom Group, The Hi-Tech Gears and Kopran rising 26-40 percent, while losers included SEPC, Sunflag Iron and Steel Company, SVP Global Textiles, Sintex Plastics Technology, Campus Activewear, Technocraft Industries (India), Greaves Cotton and Precision Wires India.

BSE Mid-cap Index rose nearly 2 percent led by Power Finance Corporation, Nuvoco Vistas Corporation, 3M India, REC, Aurobindo Pharma and Apollo Hospitals Enterprises.The BSE Large-cap Index ended on a flat note. Gainers were ICICI Lombard General Insurance Company, FSN E-Commerce Ventures (Nykaa), HDFC Asset Management Company, Zomato and ICICI Prudential Life Insurance Company, while losers were Adani Total Gas, Adani Transmission, Vedanta, Oil and Natural Gas Corporation, Coal India and Adani Enterprises.

Foreign institutional investors (FIIs) were net buyers in equities this week as they bought equities worth Rs 6,519.73 crore, while domestic institutional investors (DIIs) sold equities worth Rs 1,043.1 crore.Among sectors, the Nifty Realty index gained nearly 4 percent, Media index added 3 percent and Healthcare index added 2.5 percent, however, Oil & Gas index shed 2.7 percent and Energy index fell nearly 2 percent.

In the BSE Sensex, Reliance Industries lost the most in terms of market cap, followed by ICICI Bank, Tata Consultancy Services and Infosys. On the other hand, Hindustan Unilever, Titan Company and Bharti Airtel added the most of their marketcap.During this week, the rupee gained 27 paise to end at 82.30 to a dollar on June 2 against its May 26 closing of 82.57.

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Top 10 Factors that affect the Stock Market on Monday

Bulls kept charging the markets throughout the truncated week that ended April 7, pushing the benchmark indices to sustain their rally. A host of reasons such as higher-than-expected PMI manufacturing data, monthly auto sales numbers, provisional Q4FY23 numbers from banks and NBFCs, FII inflow, and the RBI's surprise pause in interest rate hike with upward revision in growth forecast to 6.5 percent from 6.4 percent aided the surge.

The BSE Sensex climbed 841 points or 1.4 percent to 59,833, and the Nifty50 rose 239 points or 1.4 percent to 17,599, supported by banking and financial services, auto, pharma, and infrastructure stocks.

The broader markets also traded higher with the Nifty Midcap 100 and Smallcap 100 indices gaining 1 percent and 2 percent.

After yet another encouraging week, the momentum is expected to continue along with some volatility in the holiday-shortened week beginning April 10 with focus on corporate earnings, inflation data, global news flows, and FOMC minutes, experts said. 

1) Corporate Earnings

The corporate earnings season for the March FY23 quarter will be kicked off by index heavyweights Infosys on April 13, Tata Consultancy Services on April 12, and HDFC Bank on April 15.

2) CPI Inflation

The consumer price inflation, which measures the change in prices of a basket of goods and services, is likely to drop below the 6 percent mark in March on April 12, with moderation in food inflation, against 6.4 percent in the previous month, while core inflation is likely to be sticky around 5.9-6 percent.

3) US Inflation and FOMC Minutes

On the global front, investors will look for cues from US inflation numbers and FOMC minutes scheduled to be released on April 12. Overall, the inflation is expected to moderate further to around 5.3 percent in March against 6 percent in the previous month, while the core inflation is likely to be steady at around 5.5 percent, as per the forecast available on Trading Economics.

4) Global Economic Data Points

5) FII Flow

The consistent FII inflow due to the falling US dollar index and bond yields also aided the markets and experts believe the flow is expected to continue given the hope that Federal Reserve may consider a pause in interest rate hike cycle sooner than later.

6) Oil Prices

Crude oil prices reached to a month's high, with international benchmark Brent crude futures rising to over $85 a barrel, from $79.77 on a week-on-week basis and WTI crude climbing from $75.67 to $80.46 a barrel in the same period, after a surprise OPEC+ output cuts and more-than-expected draw in US oil stocks. But the gains were capped towards the end of week after the weak US economic data raised fears over demand outlook.

7) Technical View

The Nifty has formed bullish candlestick pattern on the weekly scale, with making higher top higher bottom for second consecutive week, and the momentum indicator RSI (relative strength index) giving a nice positive crossover. Also the index climbed back above the 50-week EMA (exponential moving average - 17,426), which is another positive sign.

8) F&O Cues

The weekly Option data indicated that the 17,600 is expected to be a crucial level for the next direction of Nifty50, where we have seen maximum Call as well as Put open interest. Further, the index may find strong resistance around 17,600-17,800 area, whereas 17,500 is expected to be near-term support followed by crucial support at 17,000 levels.

9) India VIX

The volatility cooled down considerably in the last couple of weeks, with the India VIX fell by 8.8 percent for the passing week to 11.79, the lowest weekly closing level since July 2021, from 12.93 levels last week.

10) Corporate Action

Schaeffler India, Britannia Industries, Varun Beverages, Visaka Industries, Edelweiss Financial Services, and Goodluck India will trade ex-dividend, while Emami will turn ex-buyback in the coming week.

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