Month: September 2024

Ride-sharing platform Rapido has raised $200 million in its series E funding round led by WestBridge Capital at a valuation of $1.1 billion, the company said in a statement on Thursday. With this fundraise, the company marks its entry into the coveted unicorn club or a startup with a billion-dollar valuation.

The round also saw participation from other new investors including Think Investments and Invus Opportunities and existing investor Nexus Ventures. The new capital will help Rapido expand operations across India and scale its technology platform to enhance service delivery. The company further plans to grow its operations across all categories, including bike-taxis, three-wheelers, and taxicabs.

“With this new infusion of capital, we are eager to explore and expand our offerings…Over the past year, we’ve experienced significant growth, with our daily rides surging to 2.5 million,” Aravind Sanka, Co-founder of Rapido said.

In April, Mint first reported on WestBridge’s plans to double down on the ride-sharing aggregator.

Rapido last raised $180 million from Swiggy at a valuation of around $830 million in April 2022. Westbridge had invested in Rapido, operated by Roppen Transportation Services Pvt Ltd, as early as 2019 and has participated in rounds in 2021 and 2022.

“In the five years since the initial investment made in Rapido, we’ve seen… the team transform it into India’s leading low-cost mobility platform,” Sumir Chadha, co-founder and managing partner at WestBridge Capital said in the statement. “From dominating bike taxis to making significant strides into 3W autos and cabs, their growth is a testament to their operational rigor and relentless focus on customer and captain satisfaction.”

Founded in 2015 by Pavan Guntupalli, Aravind Sanka and Rishikesh SR, Rapido started as a bike taxi aggregator and later diversified into three-wheeler ride and four-wheeler ride-sharing aggregator in October last year. 

The company has also expanded its reach beyond metros, establishing a presence in over 100 cities, including tier 2 and 3 cities. Even as the company’s operating revenue tripled to ₹443 crore in FY23, its losses widened to ₹675 crore from ₹439 crore in FY22. It is yet to file its FY24 audited results.

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Shares of Suzlon Energy have seen a consolidation in the short term. The multibagger stock has been trading in a narrow range since August 12. The movement between Rs 75 and Rs 80 till date has also seen the multibagger stock hitting fresh 52 week high of Rs 84.40 on August 13.  However, the stock being stuck in a range for 60% of trading days could not prevent it from rising 11.11% in the last month.

In the current session, Suzlon Energy shares rose 3.11% to Rs 76.49 against the previous close of Rs 74.18 on BSE. Market cap of the green energy firm stood at Rs 1.03 lakh crore on BSE. Suzlon Energy stock climbed 220% in a year and gained 678% in two years.

The green energy stock clocked a turnover of Rs 30.61 crore as 40.60 lakh shares changed hands on BSE in today’s session. The stock has surged 248% from its 52-week low in the last one year. Suzlon Energy stock slipped to a 52-week low of Rs 21.71 on September 13, 2023. Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.

KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, “On the daily chart, the stock is currently forming a Flag pattern, which is a bullish continuation formation. However, it’s crucial to wait for a breakout from this Flag pattern before taking any action. Historically, the stock has shown significant price jumps following periods of consolidation and subsequent breakouts. A similar movement can be anticipated if the stock breaks out of the current Flag pattern. Additionally, the stock is trading above all its long-term moving averages, indicating a positive trend. The daily momentum indicator, RSI, also shows strong support around the Rs 55 level, suggesting potential for a bounce-back. Given the above technical structure, we expect a strong upside move if the stock breaks out of the Flag formation, potentially reaching levels between Rs 100 and Rs 113. On the downside, the stock has strong support around the Rs 70 level.”

Jigar S Patel, Anand Rathi said, “Over the past 20 days, Suzlon has been trading within a narrow range, fluctuating between the Rs 75-80 levels, and is currently positioned around the Rs 76 mark. This period of consolidation suggests indecision among traders, with neither bulls nor bears taking decisive control. On the hourly chart, the Relative Strength Index (RSI) has been consistently forming lower tops over the last 16 days, signalling weakening momentum and indicating the potential for a further decline in the stock price. As we look ahead, the levels around Rs 73-72 emerge as a key support zone that could provide a strong foundation for the stock. Given this setup, a prudent approach would be to adopt a ‘wait and watch’ strategy, holding off on any action until Suzlon tests this crucial support zone.”

Shares of Suzlon Energy are trading above their 30 day, 50 day, 100 day, 150 day, 200 day but lower than the 5 day, 10 day, and 20 day moving averages. 

The stock’s RSI stands at 52.8 signaling its neither in the overbought nor in the oversold zone. A RSI of 70 and above indicates the stock is trading in the overbought zone. A RSI of 30 and below indicates the stock is trading in the oversold zone.

 Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.

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Singapore’s CapitaLand Investment said on Wednesday it aims to more than double its funds under management in India by 2028 from S$7.4 billion ($5.66 billion) as of June 30. The announcement comes hours before Prime Minister Narendra Modi’s visit to the Southeast Asian country on Wednesday.

This will contribute to the company’s global target of achieving S$200 billion in FUM by 2028, the real estate investment manager said.

“The country is attracting demand from global corporations and institutional investors for quality real assets,” Group CEO Lee Chee Koon said.

Koon added that CapitaLand would explore opportunities to enter the renewable energy and real estate private credit segments in the country.

Last month, CapitaLand launched a fund for business park development in India, which expected to add S$700 million to its funds under management.

PM Narendra Modi arrives in Singapore

On Wednesday, he arrived in Singapore for a two-day visit aimed at boosting India-Singapore friendship, deepening ‘strategic partnership’ and attracting investment from the Southeast Asian country.

During his visit at the invitation of his Singaporean counterpart Lawrence Wong, the prime minister will connect with three generations of Singapore’s leadership, officials in New Delhi said.

“Landed in Singapore. Looking forward to the various meetings aimed at boosting the India-Singapore friendship. India’s reforms and the talent of our Yuva Shakti makes our nation an ideal investment destination. We also look forward to closer cultural ties,” Modi posted on X soon after his arrival for his fifth official trip to Singapore.

Modi flew to Singapore after wrapping his visit to Brunei, the first bilateral visit there by an Indian prime minister.

“PM @narendramodi lands in the Lion city, Singapore today. Warmly received by Minister of Home Affairs and Law K Shanmugam of Singapore. An action packed agenda lies ahead,” Ministry of External Affair said in a post on X.

The prime minister will receive an official welcome at the Parliament House on Thursday and call on President Tharman Shanmugaratnam.

This visit comes days after Wong took over and Modi began his third term as prime minister.

Modi, who last visited Singapore in 2018, is accompanied by minister of external affairs S Jaishankar, national security advisor Ajit Doval and other government officials.

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Nvidia stock price plunged nearly 10% on Tuesday, witnessing the biggest ever single-day decline in market value for a US company, as investors’ optimism about artificial intelligence seem to be weakening.

The AI heavyweight Nvidia shares tumbled 9.5% to $108 apiece on Tuesday and lost $279 billion in market capitalization, Reuters reported. This was the largest ever single-day fall in market value for a US company, indicating that investors are becoming more cautious about emerging AI technology that has fueled much of this year’s stock market gains.

Nvidia shares have fallen 14% in the three sessions since it reported earnings that failed to meet lofty expectations. Nvidia stock price had almost tripled in 2024 at its record high close in July. However, the recent losses in the stock leave it up 118% year to date (YTD).

Nvidia’s record one-session loss in market capitalisation was greater than the $232 billion decline suffered by Facebook-owner Meta Platforms on February 3, 2022, when the social media company issued a dismal forecast, according to LSEG data, Reuters reported.

Nvidia valuations

After Nvidia reported its quarterly earnings last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion ahead of last week’s report.

The increased earnings estimates along with the losses in Nvidia share price, have the chipmaker now trading at 34 times expected earnings, down from over 40 in June and in line with its two-year average, Reuters reported.

A selloff was also witnessed in broader markets and other technology stocks on Tuesday following tepid economic data. The PHLX chip index plummeted 7.75%, its biggest one-day drop since 2020.

The session’s weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%.

In a separate development, Bloomberg News reported on Tuesday that the US Department of Justice has sent a subpoena to Nvidia as it deepens its probe into the company’s antitrust practices.

The antitrust watchdog had previously delivered questionnaires, and has now sent legally binding requests to Nvidia, the report said citing people familiar with the investigation. It added that other companies had also received subpoenas.

Officials are concerned that the chipmaker is making it harder to switch to other suppliers and penalizes buyers that do not exclusively use its artificial intelligence chips, the report said.

“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” a spokesperson for the company said.

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The Indian primary market was in a lull for three long years from financial year 2019 to 2021. However, the spate of muted fundraising activity was finally shattered in FY2022, a historic year where fund mobilisation through mainboard Initial Public Offerings (IPOs) reached new highs.

In that fiscal alone, there were at least 50 IPOs that together raised over Rs 1,10,000 crore.

In light of the increased activity in the primary market in India, the Securities and Exchange Board of India (Sebi) undertook a study to understand the behaviour of Indian investors towards IPOs.

An interesting (and perhaps concerning) revelation was that the investing community in India largely views IPOs as short-term opportunities rather than long-term investments.

The study by the markets watchdog pointed to “flipping behaviour,” where a majority of investors sell their shares shortly after listing, driven by the pursuit of quick gains.

Selling trends among NIIs, retail investors

According to Sebi, 54 per cent of IPO shares, excluding those held by anchor investors, were sold within a week of listing.

This rapid exit strategy was most pronounced among Non-Institutional Investors (NIIs), which include High Net-Worth Individuals (HNIs) and corporate entities, who offloaded 63.3 per cent of their allotted shares within the first week.

Retail investors also exhibited a strong tendency to sell quickly, with 42.7 per cent of the shares allotted to them being sold within a week.

Individual investors, on average, sold 50.2 per cent of their allotted shares during the same period, indicating a widespread preference for short-term profits over long-term holding.

The study further analysed investor behavior in relation to market performance, revealing that individual investors sold 67.6 per cent of their shares by value within a week when the returns exceeded 20 per cent. In contrast, only 23.3 per cent of shares were sold when returns were negative. This is a demonstration of the “disposition effect”— a tendency to sell winning assets prematurely while holding on to those that are underperforming.

Banks are swift sellers, too

It’s not just individuals, though. Banks, too, tended to sell quickly to benefit from listing gains of IPOs. They were found to sell 79.8 per cent of their allotted shares within a week.

Mutual funds defied the trends with a more patient approach. These investment vehicles sold only 3.3 per cent of their shares within a week of the listing. 

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