Dear Reader,
The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.Companies continue to make hay while the sun keeps shining on the primary market. After the success of Devyani International, another operator of Pizza Hut and KFC restaurants has filed a prospectus for an initial public offer. Sapphire Foods, the largest franchisee of YUM! Brands in India, wants to sell shares to the public.
What’s with these quick service restaurants and hospitality brands wanting to sell shares publicly when contact intensive businesses are still suffering?
Experts are saying we still are closer to the beginning of the pandemic than the end.
Beyond the talk of how these businesses will make a lot of money from catering to the growing Indian middle class, it simply boils down to taking advantage of buoyant sentiment. The Sapphire Foods IPO, for instance, is an exit for existing shareholders. It is a complete offer for sale (to be fair, this could do with the fact that it raised Rs 1,150 crore growth capital recently).
The investor frenzy is still perhaps understandable. But the biggest mystery in all this primary market mayhem is this: Where is the government going to line up companies for privatisation and divestment and meet its Rs 1.75 lakh crore target? Last year, it raised only Rs 32,000 crore of its Rs 2.1 lakh crore target.
In a conference today, the secretary of the Department of Investment and Public Asset Management expressed confidence that Air India and BPCL will be privatised this financial year and due diligence and financial bids for other candidates like Shipping Corp, BEML, Pawan Hans, and Neelachal Ispat Nigam will also be completed.
OK then.
Our research team has also written the following notes full of investment insights:
Zomato: After the successful IPO, is it the right time to invest?Why this gold financing company deserves a place in the portfolioRadico Khaitan – More fizz leftAarti Industries: Pricing power on displayJindal Steel and Power: Does the price capture most of the positives?Goldiam International: Best ever results; bright outlookMotherson Sumi: A company for the long haulBharat Electronics: Growth takes a short-term pauseWhat else are we reading today?Clash of the edible oil titans: Adani Wilmar and Ruchi SoyaOnly a slim chance left to save planet from climate calamityCoal prices at decade high -- Should we worry?Foray into semiconductors just the latest in Chandrasekaran's plans for TataChart of the Day | Electricity prices for Indian industry among the highest in the worldTreacherous markets fuel boom in outsourcing investment teams (Republished from the FT)Picks from our Technical Analysts: HDFC, Navin Flourine, Bharat Petroleum and ICICI Bank
(These are published every trading day before markets open and can be read on the app)Ravi Krishnan
Moneycontrol Pro
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