Tag Archives: Stock Market

Finance, InFocus

Netweb Technologies Limited’s Initial Public Offering to Open on July 17

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Delhi-NCR-based Netweb Technologies Ltd is country’s leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities has fixed the price band at ₹475 to ₹500 per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Monday, July 17, 2023, for subscription and closes on Wednesday, July 19, 2023. Investors can bid for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.

On June 30, 2023, the company, in consultation with the lead bankers to the issue, allotted 1.02 million shares to raise Rs 51 crore at an issue price of Rs 500 in a Pre-IPO placement from institutional investors and were allotted 20,000 equity shares to LG Family Trust, 1,00,000 equity shares to Anupama Kishore Patil, 5,00,000 equity shares to 360 ONE Special Opportunities Fund- Series 8, and 4,00,000 equity shares to 360 ONE Monopolistic Market Intermediaries Fund. 

The public issue with a face value of Rs 2 per equity share comprises of Rs 206 crore of fresh issue and an offer for sale of 8.5 million equity shares. The offer also includes a reservation for a subscription by eligible employees.

The proceeds from its fresh issuance will be utilized to the extent of Rs. 32.29 crore for funding its capital expenditure, Rs 128.02 crore for funding its long term working capital requirements, Rs 22.50 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings and general corporate purposes.

The Company through its IPO will fetch Rs 609.75 crore – Rs 631 crore at the lower and upper end of the price band. 

Netweb Technologies is one of the few OEMs in the country is a recipient of production linked incentives schemes of the Government of India under the ‘Make in India’ policy for IT Hardware (IT Hardware PLI Scheme) and Telecom and Networking Products Manufacturing in India (Telecom and Networking PLI Scheme).

Netweb has both design and manufacturing capabilities inhouse and have undertaken installation of over 300 supercomputing systems and over 4000 accelerator / GPU based AI systems and enterprise workstations as of May 2023. Intel, Samsung, AMD, NVIDIA are some of the companies it collaborates with to innovate on product offerings. 

It is a high-end computing solutions (HCS) provider based in India catering to many Indian and multinational Customers based in India and grow its geographical footprint in Europe, Middle East and Africa (EMEA).

Between March 31, 2022 and May 31, 2023 it has almost doubled its order book value from Rs 48.56 crore to Rs 90.205 crore.

For the fiscal year 2023, the company’s revenue from operations increased 80.13% to Rs 444.97 crore against Rs 247.03 crore a year ago primarily due to an increase in the sale of Products and Services, Private cloud and HCI, Supercomputing systems, High Performance Storage Solutions and AI systems and Enterprise Workstations. Net profit for the period increased 109.04% to Rs 46.94 crore as against Rs 22.45 crore last year.

Equirus Capital Private Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue. 

Banking & Finance, Finance, InFocus, Stock Market

A Decade of Direct Mutual Funds: Investors Amass 1000s of Crores of Extra Returns : ET Money

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Direct Mutual Funds officially completed ten years of existence on January 05, 2023, allowing Indian investors to earn 1% more than regular funds by saving on commissions. To mark this occasion, ET Money, one of India’s largest wealth tech platforms that helps Indians manage more than Rs.30,000 crores of mutual fund investments, has released a study that shows this landmark reform’s impact on investors’ wealth.

The study indicates that Indian investors who opted for direct mutual funds in the last 10 years have collectively earned thousands of crores in extra returns. The results are based on the analysis of return differences between direct and regular plans for both SIP and lumpsum Investments for key Equity, Debt, and Hybrid categories.

The study found that, on average, a Rs. 10,000 SIP in Direct Equity Funds started a decade ago resulted in a corpus of Rs. 28.1 lakhs against Rs. 26.6 lakhs in regular plans, thereby earning an extra Rs.1.5 lakhs. A lumpsum investment of Rs. 5 lakh at the same time delivered an average of Rs.21 lakhs in regular, whereas Rs. 23.09 lakhs in direct plans, earning an extra Rs.2.09 Lakhs or 10% extra returns.

The funds in the Hybrid and Debt categories, too, created an excess wealth of 6% and 3% for SIP and 11% and 6% for lumpsum investments.

The impact of these excess returns has resulted in over Rs.183 crores of extra wealth for investors on ET Money alone in 4.5 years since it started offering Direct Mutual Funds on its platform. And with around Rs.18,16,920 crores (45% of the Indian Mutual Fund industry’s AUM) in Direct Plans, the total money saved on commissions and thus added to the returns of Indian investors would have been 1000s of crores.

As per ET Money, the top 5 AMCs in terms of extra wealth created on its platform are – Axis Mutual Fund, Mirae Asset Mutual Fund, Quant Mutual Fund, Kotak Mutual Fund, and ICICI Prudential Mutual Fund.

Top 5 Extra Wealth Creators – AMCs
AMC Name Extra Returns Generated (in crores)
Axis Mutual Fund 34.82
Mirae Asset Mutual Fund 24.16
Quant Mutual Fund 16.90
SBI Mutual Fund 11.58
Kotak Mahindra Mutual Fund 10.14
ICICI Prudential Mutual Fund 10.08

On completion of this industry milestone, Mukesh Kalra, Founder & CEO of ET Money, said, “Direct plans remove the bias of commission and its introduction has been the single most effective initiative to curtail miss-selling in the MF industry.We feel privileged to be one of the first platforms to help Indians access direct investment plans at scale. Through the use of powerful decision-making tools and hyper-personalized investments via Genius, we aim to significantly enhance the wealth-creation journeys of our users by compounding returns and increasing additional returns from Rs 183 crores to at least Rs 1,000 crores over the next 5 years.”

 

Corporate, InFocus, Stock Market

Cosmo First Ltd Announces Buyback of Equity Shares at Rs 1070 Per Share

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Cosmo First Limited announced yet another buyback of fully paid-up equity shares through a tender route from the existing shareholders on a voluntary and proportionate basis.

The buyback price is fixed at Rs 1,070 per share (face value Rs 10 per share) representing a premium of 42% over the closing price as on Nov 28th, 2022 being the date on which the Company has intimated the stock exchanges its intention to consider the buyback proposal.

The buyback will be up to 10.09 lakhs shares with a buyback size of Rs 108 crores (excluding taxes and transaction costs) and shall be funded with surplus cash.

Commenting on the buyback rationale, Mr. Ashok Jaipuria, Chairman & Managing Director, said “Cosmo has always believed in sharing prosperity with its shareholders. The buyback reflects strong cashflows and management’s confidence in continued growth prospects in all its business verticals. The buyback will lead to further improved EPS, ROE and ROCE”.

The Board fixed December 14th, 2022 as the record date for the purpose of ascertaining the eligibility of the shareholders for the buyback.

InFocus, Investments, Stock Market

4 New IPOs Are Set to Open This Week in Indian Stock Markets

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As companies try to bet on domestic equity markets with its more stable conditions, Five Star Business Finance, Archean Chemical Industries, Kaynes Technology India and Inox Green Energy are among the stocks of which initial public offerings are set to open next week.

Non-banking financial company Five Star Business Finance is set to go for an initial public offering (IPO) as the NBFC intends to raise Rs 1,960 crore through the IPO.

The non-banking lender offers small business and small mortgage loans to eligible borrowers for their business and personal needs. Five Star Business Finance has a strong presence in southern India, with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka accounting for 85 per cent of the company’s overall portfolio

The initial public offering (IPO) of Archean Chemical Industries Limited is going to hit primary markets on Wednesday. It will remain open for subscribers till Friday. The chemical company aims to raise Rs 1,462.31 crore from its public offer. An amount of Rs 657.31 crore is reserved via offer for sale (OFS) route.

Kaynes Technology India, design-led electronics manufacturing company, also said that it decided to launch its initial public offering (IPO) on Thursday. The price band has been fixed at Rs 559-587 per share. The IPO comprises a fresh issue of shares worth Rs 530 crore, and an offer-for-sale of 55.84 lakh shares. At the upper price band, the fundraising would be Rs 857.8 crore. The issue will close on November 14. The anchor book will be opened for a day on Wednesday, a day before the issue opens.

Inox Green Energy Services is going to launch its initial public offering on Friday and the public offer will close on November 15. The energy company said proceeds from the fresh issue would be utilised by the company for repaying debts and general corporate purposes. The price band for the offer will be announced by the company in the early part of next week. The anchor book will open for a day on November 10. Inox Green Energy Services is a subsidiary of Inox Wind (the manufacturer of wind turbine generators) and part of the Inox GFL group of companies.

Finance, InFocus, Stock Market

BSE and NSE Closed for Trade Today on Diwali-Balipratipada

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Indian stock exchanges BSE and NSE will remain closed for trading on the occasion of Diwali-Balipratipada.

Normal trading will resume tomorrow. The next exchange holiday would be on November 8 for Gurunanak Jayanti.

On Monday too, Indian stock exchanges were closed for day-long trade but with a special one-hour Muhurat trading window in the evenings when investors place orders for stocks according to their wishes which they believe to be auspicious and bring in good returns.

Meanwhile, the benchmark stock indices fell on Tuesday after gaining for seven consecutive days as BSE Sensex dipped 287.70 points to 59,543.96 while Nifty50 went down by 74 points to settle at a 17,656 level.

LimeLight, Stock Market

CDSL Data Shows Over 48 Lakh New Demat Accounts Opened From July-September 2022

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The consistent rise in the number of new dematerialized accounts in India shows that people here are increasingly involved in stock markets, according to Central Depository Services (India) (or CDSL), Asia’s first and only listed depository, which opened 48 lakh Demat accounts in the July-September quarter of the financial year 2022-23.

Interestingly, CDSL became Asia’s first and only listed depository to register 7 crore Demat accounts in the month of August 2022.

Last week, the depository revealed its audited and standalone financial results for the half-year period ended September 30, 2022.

The depository’s consolidated total income increased 7% year over year to Rs 316 crore, while net income fell 8% to Rs 138 crore during the first half of 2022-23 (April-September), according to reports.

CDSL, in keeping with the spirit of Diwali, are committed to empower the Niveshaks (i.e., Investors) by offering services to help them to flourish into a #AtmanirbharNiveshak (Self-sufficient investor).We at CDSL are proud to announce our commitment to offering cost-effective, reliable, and secure internet services.Vora said that the company’s profitable long-term strategy of investing in the latest technologies and strong infrastructure continued to strengthen the financial results during the second quarter.Investors today have the capability to hold, operate, and monitor their funds safely from their homes by using CDSL services.

 

Finance, InFocus, Stock Market

World Investor Week 2022 Celebrated at BSE

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BSE announced the launch of celebrations of the World Investor Week 2022 (#IOSCOWIW2022) under the aegis of SEBI and the International Organisation of Securities Commissions (IOSCO) from Oct 10, 2022, to Oct 16, 2022.

World Investor Week (#WorldInvestorWeekIndia) is a week-long global celebration promoted by IOSCO worldwide to raise awareness about the importance of investor education and protection. In India, SEBI has led the initiative and is working with all the Exchanges, Clearing Corporations, and Depositories to make this a memorable and enriching week for all investors.

To mark the beginning of World Investor Week (WIW) celebrations, a Bell Ringing Ceremony was held on October 10, 2022, in BSE’s International Convention Hall in the presence of Chief Guest, Shri G P Garg, Executive Director – SEBI, along with senior dignitaries from SEBI, leading investor associations and investors.

BSE is also hosting several activities to celebrate WIW 2022 such as daily Quiz programs with exciting prizes for investors, a Quiz exclusively for students organised jointly with the Institute of Company Secretaries of India (ICSI), promoting women investors’ participation with an all-women panel discussion featuring financial experts, six days talk show on YouTube for women investors, an AD-MAD competition where participants make impactful short videos giving message on safe investment rules, street plays giving messages about financial frauds, etc.

To celebrate the WIW 2022, BSE is also lighting up the BSE Building for all the days of the week to create awareness of this global event among investors in India’s financial capital.

While addressing the event, Shri G. P. Garg, Executive Director, SEBI, said “Investors are the most important constituent of the securities market. Investor education and protection are the key pillars that determine their participation in the securities market. SEBI as a market regulator has proactively introduced reforms and new policies/procedures with a consultative approach, keeping in mind the interests of common investors, and this a continuous process.”

He appreciated the efforts taken by BSE and all MIIs in making this event impactful through various innovative initiatives.

In his welcome address, Shri Neeraj Kulshrestha, Chief Regulatory Officer, BSE, said “The recent multi-fold influx of retail investors in the capital market during the pandemic has led to much higher participation of the retail investors in the securities market.  As such, the responsibilities of regulators have also increased to protect the interest of these Investors, and events like World Investor Week will play an important role in educating and boosting the confidence of investors.”

He appreciated the efforts taken by SEBI and all MIIs to make this global event successful, keeping the general investors at the center point.

Shri. Khushro Bulsara – Head, BSE IPF informed the gathering about various activities initiated during WIW, which reflect its continuous commitment towards creating a fair and transparent environment for investment, Investors’ education, and awareness.

Shri. Khushro Bulsara said, “We cannot stress enough on the importance of investor awareness and education in taking India to its avowed goal of a USD 5 trillion economy. Financial inclusion has to be a collaborative effort by all and investors need to be wary of get-rich-fast schemes, phishing scams etc. to conserve and grow their wealth.”

He thereafter thanked SEBI and all the dignitaries present who participated in this ceremony to mark the beginning of this weeklong celebration, dedicated to all the investors in the country.