Month: December 2022

The National Stock Exchange (NSE) received approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment on Thursday, December 22. Through the SSE, non-profit organizations (NPO) can now list on the NSE and raise funds. In the Union Budget 2019-20, Finance Minister Nirmala Sitharaman proposed the creation of SSE for listing social enterprises and voluntary organizations, so they can raise funds through equity, debt, and units like Mutual Funds. The NPOs will issue Zero Coupon Zero Principal (ZCZP) securities to raise funds. Currently, the prescribed minimum issue price is Rs 1 crore and the minimum application subscription size is Rs 2 lakh. According to NSE, trading is not permissible in ZCZP, but it can be transferred for other purposes, such as transfer to legal heirs.

“NSE has always played a pivotal role in capital formation for the country. We are working towards the launch of the Social Stock Exchange as a segment on NSE. We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals,” said Shri Ashishkumar Chauhan, MD & CEO, NSE.

What is a Social Stock Exchange (SSE)?
Social Stock Exchange will help Social Enterprises to raise funds from the public via the stock exchange mechanism. It will enable fund providers to filter entities or non-profit organizations creating a noticeable social impact.

What is a Social Enterprise?
Social Stock Exchange identifies non-profit organizations and for-profit organizations as social enterprises. To be recognized as a social enterprise, organizations need to demonstrate that 67% of their activities have targeted underserved or less privileged population segments or regions that have recorded lower performance in the development priorities of central or state governments, apart from other regulations.

Who can invest in securities issued by Social Enterprises?
Institutional and non-institutional investors can invest in the securities issued by social enterprises while retail investors are allowed to invest only in securities issued by for-profit social enterprises. According to NSE, foreign investors are currently not allowed to invest through the SSE.

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Bandhan Bank shares fell over 6% to Rs 228.40 on Thursday after the bank informed stock exchanges that it has received a binding bid of Rs 801 crore from an Asset Reconstruction Company (ARC) for its written-off portfolio. The bank received the offer on a security receipts consideration basis, for the written-off portfolio with an outstanding of Rs 8,897 crore. The bank said, “it shall go for bidding as per the Swiss challenge method and the decision of sale shall be taken as per extant guidelines governing the Swiss challenge method and the relevant policy of the bank.”

Bandhan Bank shares opened at Rs 247.30, over 1% up from its previous close. The shares were trading at Rs 13.40 down from Rs 229.65. Its shares touched a 52-week high of Rs 349.50 on May 17, 2022, and a low of Rs 209.45 on November 22, 2022. It has fallen more than 9% in the past year and over 18% in the last six months. At the current market price, it has a total market capitalization of Rs 36,992.61 crore. It touched an intraday low of Rs 223.55 and a high of Rs 248.65. On Wednesday, the company’s shares closed at Rs 243.05.

During the second quarter of the current fiscal, the bank wrote off microfinance loans (mostly group loans) worth around Rs 3,500. Its net profit for the second quarter of FY23 fell 76% on a quarter-on-quarter basis due to higher provisions as it wrote off microfinance loans. The bank reported a net profit of Rs 209.3 crore during Q2FY3, compared with a net profit of Rs 886.5 crore in the previous quarter. At the end of the second quarter of the current fiscal, the bank’s gross non-performing assets (NPAs), in absolute terms, stood at Rs 6,853.85 crore, witnessing a fall of 21.79% year-on-year.

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Fintech player Zaggle Prepaid Ocean Services Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering. The IPO (initial public offering) comprises a fresh issue of equity shares worth Rs 490 crore and an offer for sale (OFS) component of 1.05 crore stocks by promoters, investors, and other shareholders, according to the draft red herring prospectus (DRHP).

Those offering shares in the OFS include promoters — Raj P Narayanam and Avinash Ramesh Godkhindi and investors — VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company. Proceeds from the fresh issue would be utilized towards customer acquisition and retention, development of technology and products, payment of a debt, and for general corporate purposes.

Founded in 2011, the company operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS). It offers digitized solutions for employee tax benefits, expense management, corporate gifting, and rewards and recognition programs.

The company has 1,896 customers and 19.82 lakh users as of June-end. ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial have been appointed merchant bankers to manage the IPO. The company’s equity shares will be listed on the BSE and NSE.

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Leading wine producer Sula Vineyards on Wednesday said it has fixed a price band of Rs 340-357 a share for its Rs 960-crore initial public offering (IPO), which will open for subscription on December 12.

The three-day initial share sale will conclude on December 14 and the bidding for anchor investors will open on December 9, the company said in a statement.

The public issue will be entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors, and other shareholders.

Those offloading shares through the OFS route are a promoter, founder and CEO Rajeev Samant, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III, Ltd, SWIP Holdings Limited, Verlinvest S.A, and Verlinvest France S.A.

At the upper end of the price band, the IPO is expected to fetch Rs 960.35 crore.

Investors can bid for a minimum of 42 equity shares and in multiples thereafter.

Sula Vineyards has been recognized as the market leader across wine variants, including red, white, and sparkling wines. The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.

Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.

The Nashik-based wine maker’s profit after tax increased multi-fold to Rs 30.51 crore for the six months ended September 30, 2022, from Rs 4.53 crore a year earlier. Its revenue from operations surged by 40.8 percent to Rs 224.07 crore for the six months ended September 30, 2022, from Rs 159.15 crore registered in the same period of the preceding fiscal.

Also read: Uniparts India IPO share allotment: Check status online, grey market premium; listing on 12 Dec

Kotak Mahindra Capital Company, CLSA India, and IIFL Securities are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.

Reliance Corporate Advisory Services, a wholly-owned subsidiary of Reliance Capital, 2018 sold a 19.05 percent stake in Sula Vineyards for Rs 256 crore.

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: The gold rate was positive on Monday as a result of positive global cues, while the silver rate was up 1.13%. On Multi Commodity Exchange, gold February futures were trading at Rs 54,209 per 10 grams, up Rs 359 or 0.67%. Silver March futures were trading Rs 749 up at Rs 67,198 per kg on MCX. Globally, the yellow metal hit a five-month high on Monday as the dollar softened due to weakening COVID restrictions and easing lockdowns in China, according to Reuters. Spot gold was up 0.5% at $1,807.21 per ounce after climbing to its highest level since July 5 at $1,808.20 earlier in the session. US gold futures gained 0.6% to $1,819.60.

Navneet Damani, Sr. VP, Commodity & Currency, MOFSL
Gold prices edged up and hovered near the key $ 1,800 level, as a softer US dollar made the greenback-priced bullion cheaper for buyers holding other currencies. US employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Fed from slowing the pace of its interest rate hikes starting this month. Chicago Fed President Charles Evans stated at an event that there could be “a slightly higher peak rate of the fund’s rate, even as we likely will step down” the pace of rate hikes from 75 bps. Although, precious metals packs were supported, after hints regarding the slower pace of rate hikes from US central bank governor Powell.
Physical gold demand stalled in India last week on higher prices, while premiums fell in top consumer China as COVID-19 restrictions dulled activity. A broader trend on COMEX could be in the range of $1800-1835 and on the domestic front prices could hover in the range of Rs 53,750-55550.

Rahul Kalantri, VP of Commodities, Mehta Equities
Gold and silver prices were steady in early Monday trades despite stronger-than-expected US jobs data indicating more potential interest rate hikes. While US nonfarm payrolls grew more than expected in November, markets appeared to be sticking to the Federal Reserve’s message that interest rates will rise at a slower pace in the coming months. The dollar index fell nearly to 6-month lows and US 10-year bond yields also slipped to four-month lows.

We expect gold and silver to remain positive this week and gold prices could test $1840 and silver $24.50 per troy ounce levels. We suggest a buy-on-dips strategy in both precious metals. Gold has support at $1792-1780, while resistance at $1824-1840 per troy ounce. Silver has support at $22.90-22.72, while resistance is at $23.65-23.95 per troy ounce. In INR terms, gold has support at Rs 53,580–53,350, while resistance is at Rs 53,970– 54,180. Silver has support at Rs 65,980- 65,350 while resistance is at Rs 67,100–67,650.

Deveya Gaglani, Research Analyst, Axis Securities
Gold prices rallied last week and settled above $1790 for the first time in six months. The correction in the dollar index supported Bullion prices. The dollar index slipped below the $105 level for the first time in six months. As Fed chairman indicated that they will adopt a dovish stance when it comes to hiking the rate as soon as in the month of December itself. Gold price is glittering again and it has regained its safe-haven appeal. Prices are all set to touch a new high next year. A strong resistance zone is seen around the $1820 level. Breakout and sustained buying above the mentioned level may push prices higher toward the $1860 level in the coming weeks. A strong support zone is seen around the $1760 level.

Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
Gold prices in the recently concluded week extended the winning streak, as it ended on a higher note. Although the dollar rose as a result of hawkish comments made by US Federal Reserve officials who reaffirmed their commitment to fighting inflation, the bullion started the week on a shaky note. The US dollar began to rebound after falling to a level that was nearly two weeks low, and a stronger greenback raised the cost of metals for holders of other currencies.

However, the bullion surged to two-week highs during the week as the US Federal Reserve Chair’s speech reiterated predictions of smaller interest rate hikes. The dollar index is headed for a weekly loss, a weaker greenback makes dollar-priced gold less expensive for overseas buyers. We expect gold to trade higher towards 54140 levels, a break of which could prompt the price to move higher to 54380 levels.

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