Business News

The primary market is gearing up for another stellar week as three companies launch their initial public offerings (IPOs) to raise just over Rs 2,700 crore this week.The IPOs of Emcure Pharmaceuticals, in which shark tank fame Namita Thapar is the Executive Director and Bansal Wire will open for subscription next week in the mainboard segment, while Ambey Laboratories is the sole SME issue.Apart from the above 3 public offers, the Street will see as many 11 listings including that of Allied Blenders and Vraj Iron and Steel, which received healthy investors' response for their IPOs in the week gone by.Analysts expect significant capital to be deployed in public markets and strong demand for both new-age and conventional companies in coming months.Here's what to look forward to on the IPO front next weekEmcure Pharmaceuticals IPOThe initial public offer (IPO) of Emcure Pharmaceuticals will open for subscription July 3 and will close on July 5. The company has fixed a price band of Rs 960-1008 per share.The IPO comprises a fresh issuance of equity shares worth Rs 800 crore and an Offer of Sale (OFS) of 1.14 crore equity shares by promoters and existing shareholders, according to the draft red herring prospectus filed in December.Those selling shares in the OFS include promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds a 41.92% stake in the company and BC Investments owns a 13.09% stake.Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes.Pune-based firm Emcure Pharmaceuticals is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers to the issue.Bansal Wire IPOThe initial public offer (IPO) of Bansal Wire will open for subscription on July 3 and close on July 5. The company has fixed a price band of Rs 243-256 per share.At the upper end, the company plans to raise around Rs 745 crore. Investors can bid for 58 shares in one lot and in multiples thereafter.The public offer is being made through the book building process, wherein about 50% of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.The company proposes to use the funds from the IPO to repay some of its debt, working capital requirements and other general corporate purposes.Bansal Wire is the largest stainless steel wire manufacturing company and the second largest steel wire manufacturing company by volume in India with a production of 72,176 MTPA and 206,466 MTPA, respectively, in FY23.Ambey Laboratories SME IPOThe Rs 45 crore SME IPO of Ambey Laboratories will open for subscription on July 4. The issue, which is a combination of fresh equity sale of 62.5 lakh shares and an offer for sale (OFS) of 3.12 lakh shares, closes on July 8.The IPO is priced in the range of Rs 65-68, where investors can bid for 2,000 shares in one lot.

Indian benchmark indices scaled new heights gains in the last week of the June month despite mixed signals from the global market, particularly regarding inflation concerns. While the largecap stocks saw significant investor attention, the broader market of mid and small-cap segments underperformed.During the June month, as many as 187 BSE500 stocks have delivered double digit weekly returns with four of them offering over 40% returns.The India Cements was the top gainer in this pack with nearly 44% return, followed by Amara Raja Energy (41%), JK Paper (40.5%), and V Mart Retail (40.5%).About 11 stocks including Praj Industries, Bombay Burmah, IFB Industries, Bayer CropScience, Mazagon Dock Shipbuilders, Cholamandalam Financials, Whirlpool India among others have offered returns between 30-40% during the week.In the smallcap segment, about 2 stocks GTL Infrastructure and Moschip Technologies have turned multibaggers. While GTL Infrastructure has gained 118%, Moschip delivered 114% returns in the last one month.Meanwhile, nearly 452 stocks in the smallcap segment offered double-digit returns during the reporting month. In the midcap segment, around 42 stocks gained in double-digits.Among the Sensex pack, around 5 stocks including Ultratech, Tech Mahindra, Mahindra and Mahindra, Infosys and HCL Technologies, offered returns of double-digits.During the month, the IT sector especially showed notable recovery along with private banks which outperformed public sector banks in the banking segment.What should investors do?In the coming week, investors will closely monitor domestic CPI data for July, which is projected to show a significant increase due to rising food prices.In the upcoming week, the focus will be on the release of US and Indian manufacturing PMI data and the Fed Chair’s speech."The undercurrent of market is positive, with no major risk visible for the domestic market in the short term. All eyes will be on the union budget proposals which will dictate the market in the medium term," said Vinod Nair, Head of Research, Geojit Financial Services."We expect this positive momentum to continue at a steady pace with stock-specific action. However, the release of economic data points next week would keep a little volatility in the market. Sector like Auto is expected to be in the limelight as OEMs would release their monthly auto Sales number," said Siddhartha Khemka, Senior Group VP, Head - Research, Broking & Distribution, Motilal Oswal Financial.Having moved up sharply, technically Nifty is currently facing hurdles at the resistance of 24000-24100 levels."Any dip from here is likely to be a buying opportunity. Immediate support is at 23800 levels," said Nagaraj Shetti of HDFC Securities.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Boeing Co. is in talks with the US Justice Department to resolve potential charges stemming from two fatal crashes of its 737 Max jetliners, according to people familiar with the negotiations.The settlement could be announced as soon as next week and is expected to include imposing a corporate monitor on the world’s second-largest planemaker, according to the people, who asked not to be identified disclosing confidential discussions. DOJ prosecutors want to bring charges against Boeing, but it isn’t clear if the company will agree to plead guilty, the people said.The talks center on the 2021 deferred-prosecution agreement struck between Boeing and the DOJ in the waning days of the Trump Administration, after two crashes that killed 346 people. Some family members of the victims have urged the government to file criminal charges, which could help them bring lawsuits against the company.A resolution of the government’s case would represent a step forward for Boeing as it addresses quality lapses in its factories and tougher scrutiny from regulators, lawmakers and customers. If a deal is reached, the crisis is far from over. The US continues to investigate the in-flight blowout of a fuselage panel on an Alaska Airlines 737 Max 9 jet in January, and a grand jury in Seattle could bring additional charges.A Boeing spokesman declined to comment, as did the DOJ.Boeing’s executive suite is in turmoil as its board searches for a new chief executive officer. The company’s finances are also showing the strain of a slowdown in production in the aftermath of the accident, as it works to bolster quality and retrain workers under close supervision by the Federal Aviation Administration. The company has warned it is on pace to burn through about $8 billion in cash during the first half of 2024.Federal prosecutors appeared to go easy on Boeing when they allowed the company to avoid charges for deceiving the Federal Aviation Administration over changes made to its 737 Max jet, which resulted in the two crashes. The department reached the deferred-prosecution agreement with the company that included a $243 million penalty, but cleared Boeing’s senior executives of any responsibility for the disasters, the second of which occurred after Boeing’s chief executive officer at the time assured the public that the plane was safe. As part of the 2021 deal, Boeing pledged to improve its internal compliance and control structure, but the government didn’t call for an outside monitor.Some families of crash victims asked the DOJ earlier this month to fine Boeing almost $25 billion, saying the company committed “the deadliest corporate crime in US history.” One of their attorneys suggested in a letter to the department that $14 billion to $22 billion could be suspended if the planemaker devotes those funds to an independent corporate monitor and improvements to its safety programs.Justice Department officials told families during a meeting in May that neither current nor former company executives were likely to be prosecuted, as the five-year deadline for bringing criminal charges would likely doom any prosecution effort.The department’s decision also could have been tempered by its previous efforts to bring charges.Prosecutors charged a technical pilot, Mark Forkner, in 2021 with misleading FAA over material in the pilot manuals. However, Forkner was acquitted following a brief jury trial.

Mumbai: India's much-heralded inclusion in a JP Morgan bond index got off to a muted start with a lower-than-expected quantum of foreign flows on Friday, belying expectations of an immediate deluge. Bankers, including a top executive at the US bank, said however that overseas investment worth billions will steadily be pumped into the debt market of the world's fastest-growing major economy. Indian bonds debuted in JP Morgan's GBI-EM global index suite on Friday, with the country expected to reach a maximum weight of 10% in the GBI-EM Global Diversified Index over a 10-month period. JP Morgan's analysts expect foreign investment worth $20-25 billion to flow to the local bond market from the move."The index inclusion would bring in new investments from international investors both active and passive, boosting overall liquidity in the system," Kaustubh Kulkarni, senior country officer, India, and vice chairman, Asia Pacific, JP Morgan, told ET on Friday. 111354164 Sentiment Remains Optimistic "The pool of active investment capital from FPIs could also spill over to other domestic bonds once they become more familiar."From Thursday to Friday, aggregate holdings of foreign portfolio investors (FPIs) in the index-eligible Fully Accessible Route (FAR) suite of government bonds increased by ₹1,545.16 crore to ₹1.86 lakh crore, showed data released by the Clearing Corporation of India Ltd at 6 pm. The increase left traders underwhelmed as some segments had bet on a surge of more than ₹10,000 crore on Friday itself. "If you look at the increase in the FAR holdings by FPIs for the month of June, it is close to ₹ 17,000 crore, or $2 billion," said Naveen Singh, head of trading at ICICI Securities Primary Dealership. "It seems clear that the flow will happen gradually over the month instead of a single-day move."Yield on the 10-yr benchmark government bond rose one basis point to 7.01% on Friday as the market tempered its expectations from the single-day FPI investment. TRADERS EXPECT $2b INFLOWSWith the market now adjusting to how the flows from index inclusion may accrue, sentiment remained optimistic, traders broadly expecting around $2 billion a month. "This is likely to translate into about $2 billion inflows in government bonds monthly by funds that benchmark to the JPM index. The interest is not limited to managers that track the index, but a wider base of investors who are looking at India as a discretionary addition to the portfolio," said Aditya Bagree, head, markets, Citi, India and Indian subcontinent.

Mumbai: The market regulator's new futures and options eligibility rules for stocks could result in the addition of Jio Financial and Zomato in the equity derivatives segment and potentially the Nifty50 index, said Nuvama Alternative & Quantitative Research Analysis."If we assume Jio Financial and Zomato make it to the F&O segment before the third week of August, then there is a very high chance of them making it to the Nifty50 in the September review," Nuvama analysts Abhilash Pagaria and Abhishek Shetye wrote in their latest note.On Thursday, the Securities and Exchange Board of India said it would be revising the criteria for stocks entering or exiting the F&O segment.Except for being in top 500 stock as per average daily market capitalisation and average daily traded value, Sebi said for entry into the F&O segment, the Median Quarter Sigma Order Size requirement over the last six months has been increased to ₹75 lakh on a rolling basis. Also, the market wide position limit has been raised three times to ₹1,500 crore and the average daily value over the last six months increased to ₹35 crore on a rolling basis.The regulator said a Product Success Framework would be used to evaluate the exit of stocks.Nuvama said there is a high probability of Jio Financial and Zomato making it to the list, and expects that if both enter the F&O segment before the third week of August, they and Trent would most likely enter the Nifty50 in NSE benchmark index's September rejig.These stocks would be replacing LTI Mindtree, Divi's Labs and Eicher Motors, it said.Jio Financial and Zomato would see inflows of $466 million and $491 million, respectively, if they make it to the list, it said.