MUMBAI: The obituaries being written about the primary market after tepid debuts for recent listings will now have to be thrown into the wastebasket.
Paras Defence & Space Technologies’ listing today has breathed new life into the market and just in time, too, as big wigs such as Paytm, PolicyBazaar and Nykaa prepare themselves to hit the IPO market over the coming months.
The shares of the company listed at an eye-watering premium of 168 per cent to the issue price of Rs. 175 and then climbed some more to end the day 181.4 per cent higher. Given the frantic bidding for the company’s shares in the IPO, those who got the allotment may be laughing all the way to the bank as they made returns in an hour which many “long-term” investors hope to make in years.
The blockbuster listing is ought to revive the appetite of retail and high net worth investors once more for IPOs after the weakness seen in the last few IPOs.
Zee Ent’s troubles continue
After the NCLT ordered Zee Entertainment’s board to convene the extraordinary general meeting demanded by the company’s largest shareholder Invesco, the company has thrown another googly at Invesco.
The board today rejected Invesco’s EGM request on the grounds that it was illegal and invalid after consulting former Supreme Court judges and senior corporate lawyers. Investors did not take Zee’s move lightly as the stock tanked nearly 3 per cent.
Analysts are concerned that the complex boardroom tussle is likely to delay the proposed merger with Sony India, which would have benefitted shareholders.
ONGC gets price boost
The government today increased administered natural gas prices by a whopping 62 per cent given the surge in global prices of the commodity.
The sharp spike in domestic natural gas prices ought to give a fillip to Oil & Natural Gas Corporation’s earnings in the coming quarters. With ONGC expecting a similar hike in prices in April 2022 and global crude oil prices likely heading towards $90 per barrel, investors are betting on the good days to continue for a while. Shares of the company ended over 1 per cent higher after rising close to 4 per cent earlier in the session.
Market takes a liking to M&M
Investors took a liking to Mahindra & Mahindra today after the company reported a firm sales numbers for its automotive unit. M&M’s cars and vans segment saw a 40 per cent year-on-year growth in sales suggesting an improvement in demand. Further, Light commercial vehicle and three-wheeler sales surged in the month.
Investors are now expecting the company to post strong tractor sales numbers for September as well, which would suggest it is gaining market share on chief rival Escorts. Escorts tractor sales plunged 30 per cent last month.
Cummins India slides
Shares of the company sank over 7 per cent after media reports said that the government is exploring a ban on diesel generator genset in residential areas.
The government is seeking to ban the use of diesel generators in residential areas to control pollution and as it aims to direct power distribution companies to ensure 24 by 7 power supply. The proposal under the Draft Electricity (Rights of Consumers) Amendment Rules, 2021 will hit demand for diesel generators and thereby, Cummins India given that the company is a major player in the diesel generator market.
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