Tag: Best PMS in India

Shares of Ola Electric Mobility Ltd continued to extend their gains to the tune of another 8 per cent on Tuesday as the recently listed counter turned multibagger during the session, doubling investors money in just seven trading sessions. The stock has hit upper circuit in 4 sessions out of seven post its listing.

Shares of Ola Electric rose 8.55 per cent during the trading session on Tuesday, commanding a total market capitalization close to Rs 69,500 crore. The scrip had settled at Rs 146.03 in the previous trading session on Monday, hitting an upper circuit of 10 per cent for the day.

Shares of Ola Electric Mobility have soared more than 107 per cent in just 7 sessions, counted from August 9, Friday, when the stock was listed at the bourses. The stock was listed on a flat note, at Rs 76, the issue price itself. The stock has more than doubled investors’ wealth since its debut.

Ola Electric reported a consolidated net loss of Rs 347 crore for the quarter ended June 30, 2024, widening nearly 30 per cent on a year-on-year (YoY) basis from Rs 267 crore in the year ago period. The EV two-wheeler maker’s revenue from operations rose 32.3 per cent YoY to for the quarter stood at Rs 1,644 crore. Ebitda loss came at Rs 205 crore for the reported quarter.

The global brokerage firm HSBC recently initiated coverage on Ola Electric with a target price of Rs 140 and buy rating. It believed that EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards.

However, it said that the barrier to e2-wheelers switching may fall but Ola’s battery venture may be a success. It sees Ola Electric as an opportunity to buy given the sustained regulatory support citing reduction in cost and positive risk-reward for the battery venture. However, slow penetration of e2-wheelers and battery plant issues are the key challenges.

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Adani Power Ltd has initiated discussions to purchase the 600 MW Butibori thermal power project in Nagpur, previously owned by the now-insolvent Reliance Power Ltd of Anil Ambani, according to a Mint report.

The report said that the deal is expected to be valued between Rs 2,400 crore and Rs 3,000 crore, which equates to approximately Rs 4 crore to Rs 5 crore per MW. Acquiring the project would enable India’s leading private thermal power producer to leverage the growing demand for electricity in the country, the report said.

The report quoted an official as saying, “Adani Power is negotiating with CFM Asset Reconstruction Co to acquire the project under Vidarbha Industries Power Ltd. The value of the project, which consists of two power plant units, was earlier around Rs 6,000 crore, but currently, the production (power generation) has stopped; so, the valuation has to be lower. The plant fits into Adani’s strategy.”

The Butibori project is operated by Vidarbha Industries Power, a division of Reliance Power. Currently, CFM ARC is the sole creditor of the project, having purchased its loans for Rs 1,265 crore. The official said, “The entire deal will be funded through the internal accruals of Adani group.”

Adani Group eyes expansion amid Vidarbha bankruptcy

JSW Energy Ltd, led by Sajjan Jindal, initially expressed interest in the project but later withdrew due to concerns over valuation and operational issues, according to the report.

Previously, Reliance Power sourced power from Butibori while it operated as a distributor in Mumbai. Subsequently, Adani Electricity Mumbai Ltd took over the Mumbai distribution business. The power purchase agreement between Vidarbha and Adani expired on December 16, 2019, leading to financial difficulties for the Butibori project. Lenders have filed for bankruptcy proceedings against Vidarbha Industries, although the company has not yet entered insolvency, the report said.

The Adani group is looking to expand its thermal power capabilities. In a recent presentation, the group highlighted that rising peak power demand underscores the need for reliable thermal power capacity.

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JSW Cement, the Sajjan Jindal led-company, has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise ₹4,000 crore through an initial public offering (IPO).

The issue comprises a fresh issue of shares of ₹2,000 crore and an offer for sale (OFS) of a similar amount.

Under OFS, the selling shareholders include AP Asia Opportunistic Holdings Pte. Ltd, Synergy Metals Investments Holding Limited and State Bank of India.

While AP Asia Opportunistic Holdings and Synergy Metals will sell shares worth ₹937.50 crore, SBI will divest shares worth ₹125 crore.

The draft red herring prospectus said the company had an installed grinding capacity of 20.60 million tonnes (mt) consisting of 11mt in the South, 4.50mt in West and 5.10mt in the East.

As of March 31, 2024, it had an installed clinker capacity of 6.44mt.

The company said the majority of its capacity have been developed organically by its in-house project management team. The company is undertaking expansion plans across India, including in the north and central regions.

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State Bank of India (SBI), the country’s largest state-run lender, increased its interest rates on loans by 10 basis points across all tenors, effective from August 15, 2024. 

This will be the third consecutive month of rate hikes by the bank. The Marginal Cost of Funds Based Lending Rate (MCLR) for various tenors has been revised as part of this adjustment.

With the new rates in place, SBI’s MCLR for a three-year tenor has risen to 9.10% from the previous 9%. The overnight MCLR now stands at 8.20%, up from 8.10%. Here is the detailed breakdown of the revised MCLR rates:

• Overnight: Increased from 8.10% to 8.20%
• One Month: Increased from 8.35% to 8.45%
• Three Months: Increased from 8.40% to 8.50%
• Six Months: Increased from 8.75% to 8.85%
• One Year: Increased from 8.85% to 8.95%
• Two Years: Increased from 8.95% to 9.05%
• Three Years: Increased from 9.00% to 9.10%

These hikes follow a series of similar adjustments by other public sector banks, including Bank of Baroda, Canara Bank, and UCO Bank, which recently revised their lending rates. Bank of Baroda and Canara Bank made their changes effective from August 12, while UCO Bank’s rate adjustments came into effect on August 10, 2024.

The series of rate increases by these banks occurred after the Reserve Bank of India (RBI) decided to keep the benchmark repo rate unchanged at 6.5% in its Monetary Policy Committee (MPC) meeting on August 8. 

The RBI also maintained the standing deposit facility (SDF) rate at 6.25% and the marginal standing facility (MSF) rate and the bank rate at 6.75%.

MCLR serves as the minimum interest rate below which banks are not permitted to lend, except in certain cases approved by the RBI. Introduced in April 2016, MCLR replaced the base rate system as the benchmark for lending rates. 

The continuous hike in MCLR indicates a trend of rising borrowing costs, affecting consumer loans across various tenures.

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India’s top e-scooter maker Ola Electric Mobility surged 20 per cent on Friday to reach a valuation of Rs 58,664 crore ($6.99 billion), after it launched a new line of motorcycles and on bets it will lower costs by using its own batteries.

The e-motorcycle launch is set to intensify competition in the world’s second-largest two-wheeler market, where Ola Electric will face off with bigger rivals like Bajaj Auto, TVS Motor and Hero Motocorp.

Two-wheelers dominate Indian roads, with 18 million units sold last year.

Ola Electric, which listed its shares on Aug. 9 after a $734 million initial public offering (IPO), has seen its shares jump 75 per cent over the launch price of Rs 76.

It was valued at $5.4 billion in a September 2023 pre-IPO funding round. But Ola Electric had slashed its valuation target to $4 billion for its IPO due to a correction in global tech companies and to attract participants to the stock offering.

The e-scooter maker’s plan to build an “all-important” battery and its efforts to make most of its EV parts in the country should attract investors looking to play the electrification theme in India, HSBC said in a note.

HSBC has a “buy” rating on the shares and a price target of Rs 140, citing regulatory support and the company’s ability to reduce costs.

On Wednesday, Ola Electric reported a wider first-quarter loss, hurt by subsidy cuts. On Thursday, the company launched a new series of e-motorcycles, expanding into an untapped segment. It plans to equip its vehicles with its own batteries by this time next year.

EV adoption is rising in India, but slowly, due to concerns around vehicles’ range, lack of sufficient charging infrastructure and a low re-sale value.

Morgan Stanley said Ola Electric’s motorcycle line addresses the “mass and premium” sides of the segment, noting that its close pricing to traditional motorcycles is likely to intensify competition.

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