Eqwires | Stock Market Advisory

Shares of IT major Wipro, Tips Music, and four other companies will remain in the spotlight during today’s trading session as they are set to turn ex-date tomorrow, January 28, 2025, following their respective corporate announcements. These include Wipro, Zensar Technologies, Wendt (India), Tips Music, Mangalam Industrial Finance, and Mazda, with corporate actions ranging from interim dividends to a stock split, as per the data available on the BSE. 

Wipro has declared an interim dividend of Rs 6 per share. The record date for determining eligible shareholders is Tuesday, January 28, 2025. Similarly, Wendt (India), and Tips Music have announced interim dividends of Rs 30 per share and Rs 3 per share, respectively. The ex-date and record date for these two companies are also set for January 28, 2025.

Zensar Technologies, and Mangalam Industrial Finance will trade ex-date tomorrow for their interim dividends of Rs 2 per share and Rs 0.01 per share, respectively. Both companies have fixed January 28, 2025, as the record date to finalise the list of eligible shareholders. 

Mazda will also turn ex-date tomorrow for its announced stock split. The company plans to subdivide one equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2 each. The record date for this stock split is January 28, 2025. 

Additionally, Tanla Platforms and KEI Industries are trading ex-date today, January 27, following the announcement of interim dividends of Rs 6 and Rs 4 per share, respectively. Meanwhile, Shraddha Prime Projects shares are trading ex-date today after the company announced a bonus issue in a 1:1 ratio for its shareholders.

The ex-date marks the point when a stock begins trading without the entitlement to dividends, bonus shares, or stock splits. To qualify for these benefits, investors must own the stock before the ex-date. Beneficiaries of these corporate actions are finalised based on the list of shareholders recorded at the end of the record date.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Customised lithium-ion batteries and motors maker CLN Energy’s initial public offering (IPO), which opened for subscription on Thursday, January 23, 2025, is set to close today, Monday, January 27, 2025. CLN Energy IPO has garnered a decent response from investors, getting oversubscribed by 2.81 times by the end of the second day of subscription on January 24. 

CLN Energy seeks to raise Rs 72.30 crore from the public offering by divesting a fresh issue of 28,92,000 equity shares. The company has announced that it has already raised Rs 20.52 crore from anchor investors in the bidding concluded on January 22, 2025.

The public offering is available at a price band of Rs 235-250 apiece and a lot size of 600 shares. Accordingly, investors can bid for a minimum of 600 shares and in multiples thereof. The minimum amount of investment required by retail investors to bid for the CLN Energy IPO is Rs 1,50,000, whereas for a High Net-Worth Individual (HNI) it is Rs 3,00,000 for 2 lots or 1,200 shares. 

Meanwhile, the unlisted shares of CLN Energy continue to trade flat at Rs 250 apiece in the grey markets, as per sources tracking unofficial market activities. Thus, the grey market premium (GMP) for CLN Energy IPO stands at nil as of Monday, January 27, 2025.

Bigshare Services serves as the registrar for the issue. Aryaman Financial Services is the sole book-running lead manager of the CLN Energy IPO.

CLN Energy proposes to utilise the net proceeds from the issue towards funding the purchase of machinery and equipment and funding working capital requirements. The company will further use the proceeds for general corporate purposes. 

As the public offering closes today, the basis of allotment for CLN Energy IPO shares is likely to be finalised on Tuesday, January 28, 2025. Successful allottees will receive shares in their demat accounts by Wednesday, January 29, 2025.

CLN Energy shares are scheduled to be listed on the BSE SME on Monday, January 20, 2025. 

CLN Energy is engaged in the manufacturing of customised lithium-ion batteries, motors, and deals in powertrain components of electric vehicles such as controllers, throttles, DC-DC converters, displays, differentials, etc. The company offers B2B solutions for both mobility applications such as electric two, three, and four-wheelers, including traction applications, as well as stationary applications such as solar, ESS, and telecommunications. 

Presently, the company operates two manufacturing facilities: one located in Noida, Uttar Pradesh, and the other in Pune, Maharashtra. CLN Energy has in-house R&D capabilities to design and integrate various powertrain and power systems to offer complete solutions for mobility and energy storage applications like UPS, Telecom, etc.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

India’s private sector began 2025 on a slower growth trajectory as momentum in the services sector eased and the pace of new business intake softened. Overall output grew at its slowest rate since November 2023, according to an HSBC flash survey.

The latest HSBC Flash PMI data, compiled by S&P Global, highlighted a slowdown in the services sector that offset robust growth in manufacturing during the month. Meanwhile, prices for goods and services rose sharply in January due to mounting cost pressures.

The HSBC Flash India Composite Output Index, which tracks monthly changes in combined output from manufacturing and services, fell from 59.2 in December to 57.9 in January, marking the slowest expansion in 14 months.

Manufacturing gains, services slow down

India’s manufacturing sector outperformed expectations, with the HSBC Flash India Manufacturing PMI climbing from 56.4 in December to 58.0 in January, its strongest showing since July 2024. The index, a composite measure of new orders, output, employment, supplier delivery times, and inventory levels, indicated improved factory conditions. 

The HSBC Flash India Manufacturing PMI Output Index also rose to 60.3 in January, up from 59 in December.

In contrast, the services sector experienced a deceleration, with the HSBC Flash India Services PMI Business Activity Index declining from 59.3 in December to 56.8 in January.

“India’s manufacturing sector started the year strong, with output and new orders bouncing back from a relatively weak third fiscal quarter. The rise in new export orders was especially noticeable, and the easing of input cost inflation is also good news for manufacturers,” said Pranjul Bhandari, chief India economist at HSBC.

However, she cautioned, “The cooling in growth in new domestic business in the services sector, however, highlights a potentially emerging weak spot in the economy. New export business for service providers, on the other hand, looks set to maintain its growing momentum.”

Business confidence improved in January, buoyed by manufacturers’ highest optimism levels since May 2024. However, sentiment among service providers dipped to a three-month low amid concerns about rising competition, the survey noted.

Manufacturers ramped up input purchases, accelerating pre-production inventory growth as supplier delivery times improved. Conversely, stocks of finished goods dropped to their lowest level in nearly three years.

India aims to achieve a $10 trillion economy within the next decade, driven by an expanding manufacturing sector. Priority areas include semiconductors, electronics, electric vehicles, renewable energy, and defence.

To support this vision, the central government has significantly increased capital expenditure, focusing on infrastructure development, job creation, and manufacturing growth.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Cab aggregating firms Ola and Uber on Friday denied the allegations of implementing a differential pricing model for their services that were availed through Android and Apple phones in India.

The denial comes a day after Centre slapped notices over allegations that Apple users were being charged higher prices for rides of similar distances on the mere ground that consumers using costlier smartphones have greater purchasing power and can pay more than people using Android phones.

Ola said they have clarified allegations against them to the Central Consumer Protection Authority (CCPA) and will further work with the consumer body “to clear any misunderstanding in this regard”.

“We have a homogenous pricing structure for all our customers, and we do not differentiate based on the operating system of the user’s cellphone for identical rides,” an Ola Consumer spokesperson told Reuters.

An Uber spokesperson told Reuters in a statement that the company does not set prices based on the rider’s phone manufacturer.

“We look forward to working with the CCPA to clear up any misunderstanding,” the spokesperson said.

Google and Apple have not responded to the allegations yet.

Union minister of consumer affairs Pralhad Joshi said on Thursday that the CCPA had issued notices to major cab aggregators demanding an explanation for user allegations.

The department of consumer affairs’ move aims to address consumer grievances and ensure fair practices by cab aggregators. The companies must now clarify the pricing mechanism and the factors influencing these fare variations.

The minister said the notice follows an earlier observation against such practices. Last month, Joshi termed differential pricing an “unfair trade practice” that is a “blatant disregard” of consumer rights.

Cab aggregating firms – Uber, SoftBank-backed Ola, Rapido, and all-electric ride-hailing app BluSmart are locked in fierce competition to gain market share in India, one of the largest cab aggregation business markets outside the United States and Canada.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Interglobe Aviation Ltd., parent company of India’s largest airline by market share, IndiGo, reported an 18% year-on-year decline in its December quarter consolidated net profit at ₹2,449 crore as against ₹2,998 crore seen in the year-ago period. The airline posted a loss of ₹988 crore in the preceding September quarter.

The third quarter performance was driven by strong demand for air travel, continued growth, and lower fuel cost.

The airline’s revenue from operations rose 14% year-on-year to ₹22,111 crore, compared to ₹19,452 in the corresponding quarter of last year.

The topline number was higher than CNBC-TV18’s poll of 21,909 crore; however bottomline was below CNBC-TV18’s poll estimate of ₹3,152 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 0.7% year-on-year to ₹5,178.6 crore, which was higher than last year’s ₹5,143.6 crore.

EBITDA margin of 23.4% was lower than 26% on a year-on-year basis.

IndiGo slipped back into the red in the previous September quarter, reporting a loss of ₹987 crore even as its revenue climbed 14% YoY to ₹16,970 crore.

“We delivered a strong third quarter of financial year 2025, both operationally and financially. We reported a total income of ₹23,000 crore, reflecting a growth of 15% and profit excluding the impact of currency movement of ₹3,850 crore. Including currency impact, we reported a profit of ₹2,450 crore highlighting effective execution of our clear and well-defined strategy. These results were driven by robust demand in the market and our ability to cater to that demand supported by lower fuel prices,” said CEO Pieter Elbers.

The IndiGo CEO said the company touched new milestones as it operated a peak of 2,200 daily flights and served a record 31.1 million passengers during the quarter. “We will continue the growth path to offer our customers with options to conveniently fly to the destination of their choice,” he said.

Available Seat Kilometers (ASK), which measures an airline’s capacity to carry passengers, came in at 4,080 crore as against 3,650 crore, a growth of 12% on-year.

Revenue Passenger Kilometers (RPK), which measures the number of passengers carried by an airline, stood at 3,550 crore as against 3,130 crore, seeing a 13.5% on-year rise.

The airline’s load factor increased by 120 basis points to 86.9% in Q3FY25 compared to 85.8% in Q3FY24.

As of December 31, 2024, IndiGo had a total cash balance of ₹43,780.8 crore comprising ₹28,903.5 crore of free cash and ₹14,877 crore of restricted cash.

The capitalised operating lease liability was ₹49,593.7 crore. The total debt, including the capitalised operating lease liability, was ₹65,138.5 crore.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com