Business news January 10 Highlights: Adani Wilmar OFS to non-retail investors fully subscribed

Adani Wilmar OFS to non-retail investors fully subscribed

• India's federal investigating agency has accused liquor giant Diageo and Sequoia Capital of making suspicious payments to a politician's firm to seek favourable government decisions, it said in a document Reuters reviewed on Friday.
• In the document, the Central Bureau of Investigation (CBI) says Diageo Scotland made a suspicious fund transfer to Indian politician Karti Chidambaram's firm after a 2005 ban on sale of its duty-free products hit sales of its Johnnie Walker whisky.
• In the case document on its website, the agency said an investigation showed a payment of $15,000 to the firm was intended to influence public servants to lift the ban on Diageo, rather than for consultancy work as it had been described.
• "In order to lift the ban, Diageo Scotland approached Karti P Chidambaram," the agency said in the document, part of its formal case registered against Diageo and Sequoia, after an investigation launched in 2018 into investment approvals. (Reuters)

• The Indian rupee hit an all-time low on Friday, pressured by a firm dollar and as regional currencies stayed on the defensive ahead of the keenly awaited U.S. nonfarm payrolls report.
• The rupee dropped to a record low of 85.9400 per U.S. dollar, down from 85.8475 in the previous session and past the prior all-time low of 85.9325 hit on Thursday.
• The dollar index was around 109.12 ahead of the jobs data, due after Indian market hours.
• The 10-year U.S. Treasury yield was around 4.68% in Asia hours. It hit an over eight-month high of 4.73% earlier this week. (Reuters)

• Indian lenders have asked the central bank to infuse durable liquidity into the banking system in the wake of the significant dip in a key measure of liquidity, six treasury officials said.
• A select set of market participants met Reserve Bank of India officials late on Thursday, raising concerns over the persistent tightness in liquidity conditions.
• The tightness in liquidity, if sustained, is likely to keep borrowing rates of banks high, potentially impacting lending rates at a time when India's economic growth is cooling down.
• "Suggestions like longer term variable rate repos, FX swaps and open market purchases of bonds were made," said one of the officials who was a part of the meeting.  (Reuters)

• Government's top search panel is set to meet next week to select the next RBI Deputy Governor, reports CNBC-TV18
• Applications for the RBI DG position, vacated by Michael Patra, were invited until November 30.
• The selection panel, headed by the Cabinet Secretary, includes the DFS Secretary, RBI Governor, and external experts to screen candidates.

According to the GST website, "Form GSTR-1 is a monthly/quarterly statement of outward supplies to be submitted by all normal and casual registered taxpayers making outward supplies of goods and services, or both. It contains details of the outward supplies of goods and services."

The Central Board of Indirect Taxes and Customs (CBIC) has not yet issued any notification regarding this matter. However, several chartered accountants on social media, as well as those we spoke to, have expressed concerns about being unable to file the GSTR-1 return, with the deadline for the December 2024 tax period set for January 11, 2025. For QRMP filers, the deadline is January 13, 2025, for the same tax period.

The Goods and Services Tax Network (GSTN) has reported on X (Twitter) that the GST portal is facing technical issues and is under maintenance. GSTN anticipates the portal will be functional by 12 PM on January 10, 2025. In the meantime, an incident report has been sent to the CBIC, requesting an extension for the filing deadline.

The number of mutual fund schemes entering the market has been on a steady rise with each of the last four years recording more than 100 new fund offers (NFO). Within this, new thematic or sectoral funds have grabbed the spotlight. In 2024, Indian asset management companies (AMCs) mopped up a record Rs 1,17,356 crore through an unprecedented number of 231 new schemes. Some 52 active thematic or sectoral NFOs collected Rs 79,109 crore during the year, again scaling a never-seen-before high. (Read More)

Delta Corp and Nazara Tech shares surged up to 7% as Supreme Court on January 10 stayed GST show cause notices to the tune of Rs 1.12 lakh crore to online gaming companies. All further proceedings shall remain stayed till the case is decided, said the apex court. (Read More)

The time for accepting mutual fund and initial public offering (IPO) applications has significantly reduced over the last few years, capital market regulator Sebi chairperson Madhabi Puri Buch said on January 10, while speaking at a symposium in Mumbai organised in association with stock exchanges and depositories. (Read More)

• Established in January 2005, Barflex Polyfilms Limited specializes in manufacturing COEX films, laminates, and labels. The company provides flexible packaging materials tailored for various industries, including FMCG, processed foods, adhesives, engineering, pharmaceuticals, cosmetics, and construction, among others.
• Barflex Polyfilms serves a range of prominent brands in the domestic market, offering high-quality products such as 3-layer and 5-layer poly films, laminates, vacuum pouches, bulk liners, and PVC shrink labels. As part of its expansion plans, the company aims to introduce 7-layer films to strengthen its position as a preferred packaging partner for its customers.
• The company operates from three manufacturing units located in Baddi, Himachal Pradesh.
• As of May 31, 2024, Barflex Polyfilms employed a total of 182 individuals, comprising 102 full-time employees and 80 contract workers.

The Barflex Polyfilms IPO successfully raised Rs 11.21 crore from anchor investors. The anchor bid date for the IPO was January 9, 2025.

Almondz Financial Services Ltd is serving as the book running lead manager for the Barflex Polyfilms IPO, while Maashitla Securities Private Limited is the registrar for the issue. Additionally, the market maker for the IPO is Almondz Global Securities Limited.

The Barflex Polyfilms IPO has a price band of Rs 57 to Rs 60 per share. Retail investors are required to apply for a minimum lot size of 2,000 shares, which amounts to a minimum investment of Rs 1,20,000. For High Net-worth Individuals (HNIs), the minimum application size is 2 lots (equivalent to 4,000 shares), requiring an investment of Rs 2,40,000.

The Barflex Polyfilms IPO opened for subscription on January 10, 2025, and investors can place their bids until the closing date on January 15, 2025. Following the subscription period, the allotment of shares is expected to be finalized on Thursday, January 16, 2025. The IPO will debut on the NSE SME platform, with the tentative listing date set for Monday, January 20, 2025. This marks a significant milestone for Barflex Polyfilms as it steps into the public market, providing investors with an opportunity to participate in its growth story.

The Barflex Polyfilms IPO has opened for subscription today. This book-built issue is valued at Rs 39.42 crore, comprising a fresh issue of 20.53 lakh shares worth Rs 12.32 crore and an offer for sale (OFS) of 45.17 lakh shares amounting to Rs 27.10 crore.

AI will help in reducing the regulatory timeline, says Sebi boss Madhabi Puri Buch

Expressing her optimism for fast-track rights issue, Sebi boss said that process completed in under 26 days. Talking about the speedy process, she said that benefits of this are - lower costs, speed and shareholder rights of refusal.

Rs 3.3 lakh crore equity raised in the last 9 months. Expected to reach Rs 4.3 lakh crore by year-end, says Madhabi Puri Buch

Dreams and aspirations of the market noted. Significant role of preferential issues and QIBs is often unnoticed, says Sebi chairperson at Samwad - Securities Market Symposium.

Regulator gets criticism over moving too fast, ecosystem unable to keep pace, says Sebi boss Madhabi Puri Buch

• The last grey market premium (GMP) for the Standard Glass Lining IPO is Rs 78, according to investorgain.com
• Price Band: Rs 140.00 per share
• Estimated Listing Price: Rs 218 (Cap price + today's GMP)
• Expected Percentage Gain/Loss: 55.71% per share

• The last grey market premium (GMP) for the Quadrant Future Tek IPO is Rs 190, as per the latest data by investorgain.com
• The price band of the IPO: Rs 290.00 per share
• With today's GMP in mind, the listing price is estimated at Rs 480 (Cap price + today's GMP)
• Expected Percentage Gain/Loss: 65.52% per share

• The year 2025 is shaping up to be another record-breaking year for IPOs in India. According to data from Prime Database:
• Public issues worth nearly Rs 1.80 lakh crore have either received SEBI approval or are awaiting clearance.
• The IPO pipeline includes:
• 28 companies with approved public issues, aiming to raise a total of Rs 46,000 crore.
• 80 additional companies seeking to raise approximately Rs 1.32 lakh crore, currently awaiting SEBI's nod.

• Grey Market Activity: Grey market premiums for Quadrant Future Tek and Standard Glass Lining have surged ahead of their stock market debuts.
• Quadrant Future Tek will list on January 13, and Standard Glass Lining on January 14.
• Laxmi Dental IPO: Laxmi Dental's Rs 698-crore IPO will open for subscription on January 13. The price band is set at Rs 407–Rs 428 per share. The stock is expected to list on January 20.
• Q3 Results Season: Around 10 major companies will announce their Q3 results today.
• Notable names include CESC, Equinox India, PCBL, GNA Axles, Just Dial, Shah Metacorp, and Swatipro.

An upbeat commentary and strong deal wins in a seasonally weak quarter by industry leader Tata Consultancy Services (TCS) have sparked fresh optimism among brokerages. The management highlighted early signs of a revival in discretionary demand in the October-December quarter, prompting brokerages to anticipate margin improvements by FY26. Read more

Shares of Indian IT outsourcing giants Infosys Ltd., HCL Technologies Ltd. and Wipro Ltd. got a boost from Donald Trump’s US election win. They will get a chance to comment on how his presidency might affect their businesses when they post earnings.

Overall, investors appear to view the incoming administration favorably for the sector, as the NSE Nifty IT Index has outperformed the broader market since the election. The president-elect’s promised tax cuts may result in businesses boosting technology expenditure. On the other hand, “America First” policies may discourage outsourcing, which the Indian companies depend on.

Nvidia Corp. criticized new chip export restrictions that are expected to be announced soon, saying the White House was trying to undercut the incoming Trump administration by imposing last-minute rules.

The looming changes, which Bloomberg News reported on Wednesday, would cap the sale of US artificial intelligence chips on both a country and company basis — a move that would more tightly limit exports to most of the world. It’s part of a yearslong US effort to keep the latest technology away from China and Russia.

Tata Consultancy Services, the first information technology company to release its earnings for the October-December period, highlighted witnessing reduction in deal cycles in Q3. Read more

Quadrant Future Tek share allotment is likely to be announced later tonight after a bumper public subscription to Rs 290 crore issue concluded on January 9 in the primary market. The public issue had a price band of Rs 275-290 per share.

Steps to check share allotment status on Link Intime

Increased collaboration with Nvidia Corp. has pushed investor optimism over the AI growth potential for MediaTek Inc. to a new level, putting its shares on track for their first record high in seven months.

The stock climbed to within a whisker of its June peak this week after the Taiwanese chip designer announced a tie-up with Nvidia on an AI personal computer chip. On top of the companies’ existing partnership in automotive tech, the news helped fueled expectations for further gains in the shares after they more than doubled in the past two years.

Asian equities and US futures fell as caution took hold ahead of jobs data that will help shape the outlook for Federal Reserve interest rates.

Shares in Japan and Australia slipped, white those in Hong Kong opened higher. Contracts for the S&P 500 dropped for a second day after US trading was closed on Thursday to observe a national day of mourning for former President Jimmy Carter. The MSCI EM stock index entered a correction after declining by more than 10% from a high in October, reflecting uncertainty over US policies and China’s growth prospects.

Treasuries advanced in Asian trading, following a rout earlier this week that drove 30-year yields to the highest since 2023. Chinese yields rose as the People’s Bank of China said it will temporarily halting its buying of government bonds, a surprise move that came after the benchmark yield slumped to a record low.

Ford Motor Co. Chairman Bill Ford said Elon Musk’s relationship with President-elect Donald Trump won’t hurt legacy automakers and that Trump has a better grasp of the industry than during his first term.

“This time he understands the importance of our industry,” Ford said in an interview in Detroit on Thursday. He said Trump called him last week to discuss the auto industry, tariffs and the importance of a healthy manufacturing base in the US. It took some “education” to bring Trump up to speed on the auto industry during his first four years in office, Ford said.

Ford said he’s not worried that Trump’s alliance with Musk, the chief executive officer of electric car maker Tesla Inc., will hurt Ford or other legacy automakers. “We are aligned on a lot of issues,” Ford said of Musk.

China’s central bank said it will temporarily halt its buying of government bonds, after the benchmark yield slid to a record low this month.

The People’s Bank of China will suspend purchases of sovereign debt this month as the supply of the bonds has fallen short of demand, it said in a statement on Friday. The central bank will pick a time to resume buying depending on market conditions, it added.

The third quarter earnings season has began for the current financial year and around 10 major companies are set to declare their quarterly results today.

Some of these firms are CESC, Equinox India, PCBL, GNA Axles, Just Dial, Shah Metacorp, Swatipro, among others.

Laxmi Dental's Rs 698-crore initial public offering will open for subscription on January 13. The issue with a price band of Rs 407 to Rs 428 per share will likely list on January 20.