SGX Nifty Trades Flat, NMDC's Demerger Process, LIC's IPO Update, and Buzzing Stocks Today
Thu, 15 Jul Pre-Open | Nandini Mehta, TM Team

Indian share markets ended on a positive note yesterday.

Benchmark ended on a positive note yesterday after June wholesale price index (WPI) inflation came in at 12.07% compared to 12.94% in May.

At the closing bell yesterday, the BSE Sensex stood higher by 134 points (up 0.3%).

Meanwhile, the NSE Nifty closed higher by 42 points (up 0.3%).

Wipro and Tech Mahindra were among the top gainers.

Maruti Suzuki and Adani Ports, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 0.2% and 0.3%, respectively.

Sectoral indices ended on a mixed note with stocks in the IT sector and capital goods sector witnessing most of the buying interest.

Realty and oil & gas stocks, on the other hand, witnessed selling pressure.

At 7:45 am today, the SGX Nifty was trading up by 14 points, or 0.1% higher at 15,877 levels. Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.3% at Rs 48,024 per 10 grams at the time of closing stock market hours yesterday.

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The RBI has issued a new 10 year benchmark bond with a higher interest rate. This means banks will have to start attracting deposits at higher costs than before.

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Top Stocks in Focus Today

Among the buzzing stocks today will be NMDC.

State-owned National Mineral Development Corp (NMDC) has started the process to carve out its steel unit and list it as a separate business on the bourses.

The demerged undertaking would be vested with NMDC Steel pursuant to the demerger.

The entire share capital of NMDC Steel held by the NMDC would be cancelled and new equity shares of NMDC Steel would be issued to all shareholders of NMDC in the same proportion.

Note that this move by NMDC comes at a time when the government plans to increase steel production to take advantage of the high metal prices.

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The government plans to increase India's steel production capacity to 300 m tonnes per annum (MTPA) by 2025. To achieve its goal, green-field steel plants are being promoted through special purpose vehicles (SPVs) in mineral-rich states such as Chhattisgarh, Jharkhand, Kamataka and Odisha.

NMDC is engaged in the exploration of a wide range of minerals, while NMDC Steel is a wholly-owned subsidiary of NMDC.

At present, NMDC Steel does not have business operations.

In October last year, the cabinet committee on economic affairs had given its in-principle approval to the demerger and strategic disinvestment of NMDC Steel by selling the government's stake in the mill steel to a strategic buyer.

Last week, the government offloaded stake in NMDC through an offer for sale (OFS).

The government holds 68.3% stake in the company and after the OFS, the stake will drop to 60.8%.

NTPC share price will also be in focus today.

The country's largest power generator, NTPC, through its renewable energy arm, will construct what would be India's largest single local solar power park of 4.8 gigawatt (Gw) in Kutch.

NTPC Renewable Energy (NTPC-REL) has received the approval of the nodal ministry of new and renewable energy, said a company's statement.

The company plans to use this project for production of green hydrogen, too. Hydrogen produced from renewable sources is called green hydrogen.

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NTPC-REL was given the go-ahead under Mode 8 (ultra mega renewable energy power park) of solar park scheme, the company said in a release.

'As part of its green energy portfolio augmentation, NTPC, India's largest energy integrated company, aims to build 60 GW renewable energy capacity by 2032,' it said.

There are five operational solar power parks in the country, of which Bhadla in Rajasthan (2.2 Gw) and Pavgada in Karnataka (2.1 Gw) are among the world's largest single location solar plants.

India's first solar power park of 0.8 Gw was fully commissioned in 2019 in Rewa district of Madhya Pradesh.

LIC IPO Likely to Be Launched in March 2022 Quarter

The government is aiming to list insurance behemoth LIC by the last quarter of the current financial year and merchant bankers for the transaction would be appointed soon.

Last week, the Union Cabinet approved the IPO of LIC, which is set to be the biggest Indian IPO.

Several estimates suggest that LIC could raise Rs 900 bn to Rs 1 tn, handing over much-needed revenue to the government against the backdrop of the Covid-19 pandemic.

DIPAM secretary Kanta Pandey said the panel headed by FM Nirmala Sitharaman will decide on the exact quantum of share sale.

He added that the department of financial services was working on fulfilling other requirements for the IPO.

The draft prospectus for the IPO would also be filed soon.

LIC, fully owned by the Indian government, is a big investor in share sales, including IPOs of state-run companies.

Zomato Raises Rs 42 bn from Anchor Investors Ahead of IPO

Food delivery platform Zomato said that it has raised a little over Rs 42 bn from anchor investors ahead of its initial share sale.

The company allocated 552 m equity shares to anchor investors at Rs 76 apiece, aggregating the transaction size to Rs 42 bn, according to a circular uploaded on BSE website.

BlackRock, Tiger Global Investments Fund, Fidelity, JP Morgan, Morgan Stanley Asia (Singapore), Goldman Sachs (Singapore) were among the anchor investors.

Some of the domestic investors who participated in the anchor bidding include Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Life Insurance Company and HDFC Life Insurance Company.

Zomato's Rs 93.8 bn initial public offering (IPO) comprises a fresh issue of equity shares worth Rs 90 bn and an offer for sale (OFS) of Rs 3.8 bn by Info Edge (India).

The issue, with a price band of Rs 72-76 a share, will be open for public subscription till 16 July.

Proceeds from the fresh issue would be used for funding organic and inorganic growth initiatives and general corporate purposes.

How the IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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Stock Market Updates

Jul 14, 2021 Closing

Indian share markets ended on a positive note with the Sensex up by 134 points and the Nifty ending up by 42 points.

Jul 14, 2021 12:30 pm

BSE Sensex is trading up by 75 points, while the NSE Nifty is up by 32 points.

Jul 14, 2021 11:20 AM

SONATA SOFTWARE share price has hit an all time high at Rs 778 (up 0.3%). The BSE IT Index is up by 1.2%. Among the top gainers in the BSE IT Index today are SONATA SOFTWARE (up 0.3%) and COFORGE (up 3.0%). The top losers include HEXAWARE TECHNOLOGIES and INTELLECT DESIGN (down 0.2%).

Jul 14, 2021 09:30 am

Indian share markets open flat. The BSE Sensex opened down by 12 points, while the Nifty is trading lower by 5 points.

Jul 14, 2021 09:36 AM

SHEELA FOAM share price has hit an all time high at Rs 2,443 (up 3.0%). The BSE FMCG Index is down by 0.1%. Among the top gainers in the BSE FMCG Index today are SHEELA FOAM (up 3.0%) and GSK CONSUMER (up 5.1%). The top losers include UNITED BREWERIES and JYOTHY LABS (down 0.1%).

Jul 14, 2021 09:34 AM

BRIGADE ENTERPRISES share price has hit a 52-week high. It is presently trading at Rs 334. BSE 500 Index is up by 0.1% at 21,728. Within the BSE 500, BRIGADE ENTERPRISES (up 2.2%) and TATA METALIK (up 7.0%) are among the top gainers, while top losers are DHFL and QUESS CORP.

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