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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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Oil slipped on Thursday as a U.S. interest rate hike pushed up the dollar and fuelled fears of a global recession, although losses were capped by concerns over tight supply. Brent crude shed 37 cents, or 0.4%, to $95.79 a barrel at 0426 GMT, while U.S. West Texas Intermediate (WTI) crude futures dipped 60 cents, or 0.7%, to $89.40.

Both benchmarks settled up more than $1 on Wednesday, aided by another drop in U.S. oil inventories, even as the Fed boosted interest rates by 75 basis points and Chair Jerome Powell said it was premature to think about pausing rate increases. A strong dollar is dragging down oil, with some market participants also likely booking profits following recent gains, CMC Markets analyst Tina Teng said.

A strong dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies. “With the Fed confirming a higher peak in rates, a darkened global economic outlook could continue to pressure the oil futures markets,” Teng added. Stephen Innes, the managing partner of SPI Asset Management, said that it was surprising oil had proved so resilient after the move by the Federal Reserve, but he noted there were a couple of fundamental factors putting a floor under prices.

The European Union’s embargo on Russian oil for its invasion of Ukraine is set to start on Dec. 5 and will be followed by a halt on oil product imports in February. Also likely to keep supply tight in coming months, producers from the Organization of the Petroleum Exporting Countries (OPEC) may struggle to hit previously set output quotas, ANZ analysts said in a note.

OPEC production fell in October for the first time since June. OPEC and its allies, including Russia, also decided to cut their targeted output by 2 million barrels per day (BPD) from November. The market is also expecting demand from China to pick up with hopes that Beijing will ease off on its zero-COVID policies. Chinese policymakers pledged on Wednesday that growth was still a priority and they would press on with reforms. Any indication of a reopening in China following COVID-19 restrictions could be a “monster pivot”, said Innes.

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Fusion Micro Finance IPO opened for subscription on Wednesday (2 November), and will conclude on 4 November. The non-banking finance company (NBFC) has fixed the IPO price band at Rs 350-368 apiece. The Rs 1,104 crore IPO comprises the issuance of fresh equity shares worth Rs 600 crore and an offer for sale (OFS) worth Rs 504 crore of 13,695,466 equity shares by promoters and existing shareholders. Half of the issue size has been reserved for qualified institutional investors (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs). The minimum bid is that of 40 equity shares and then in multiples thereof. The face value of each share would be Rs 10. Fusion Micro Finance IPO shares were commanding a grey market premium (GMP) of Rs 35-40 apiece.

Fusion Micro Finance IPO share allotment date is 10 November, and the shares will be credited into the Demat accounts of successful bidders on 14. November. Fusion Micro Finance shares will debut on both the leading exchanges BSE and NSE on 15 November. Ahead of IPO, the company raised a little over Rs 331 crore from anchor investors. It allotted 89,99,943 equity shares to anchor investors at Rs 368 apiece, aggregating the transaction size to Rs 331.2 crore, according to a circular uploaded on the BSE’s website. Fusion Micro Finance is a strong player in a sustainably and well-growing MFI sector with healthy growth and operational performance, said ICICIdirect in its IPO note.

Should you subscribe to Fusion Micro Finance IPO?

Reliance Securities: Subscribe
“In view of well diversified and extensive pan-India presence, proven execution capabilities with a strong rural focus, a knack for quick adoption of technology access to capital, effective asset liability management, and valuation comfort we recommend a ‘SUBSCRIBE’ to the issue.

Nirmal Bang: Subscribe
“Fusion has grown its AUM at a CAGR of 37% over FY20-22, one of the fastest amongst listed financials. Fusion’s metrics are similar to those of the largest listed MFI player viz CreditAccess, while Fusion’s valuations are at a steep discount of 45% in comparison. We recommend to ‘Subscribe’ to the issue.”

Hem Securities: Subscribe
“Fusion Micro Finance is well diversified and has an extensive Pan-India presence with a strong rural focus. The company has access to diversified sources of capital and effective asset-liability management with a robust underwriting process and risk management policies. Its stable and experienced management team supported by marquee investors indicates decent fundamentals with strong growth potential in the future. Also, the issue seems reasonably priced at the current level but looking after the industry, we recommend “Subscribe” on the issue for risk appetite investors.”

Swastika Investmart: Subscribe
“The company also has access to diversified and recognized sources of capital and has a good financial track record. Although this company’s margins are now in declining mode and it is facing risk due to the category of borrowers it serves, an increase in the level of NPAs could also be a concern for the company. Secondly, the company demands a price-book (P/B) multiple of 1.8 on a post-IPO basis, whereas its peers like credit access command a P/B of 3.3. Thus, considering all the factors, we recommend a Subscribe rating for this issue, but only for high-risk investors with a long-term view.”

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Equity benchmarks concluded the truncated week on a positive note amid volatile global cues. The Nifty settled the monthly expiry week at 17787, up 1.2%. The broader market performed in tandem with the benchmark as the Nifty midcap gained 1%. Sectorally, Auto, PSU, and metal remained at the forefront while FMCG took a breather. The Nifty started the monthly expiry week on a positive note and subsequently witnessed range-bound activity. As a result, weekly price action formed a small bull candle carrying a higher high-low, indicating a continuance of positive bias. We reiterate our positive stance and expect Nifty to gradually head towards 18100 in the coming week amid the progression of the earnings season.

Structurally our constructive bias remains intact which makes us confident that the index will resolve above the 18100 mark and eventually head towards 18600 by December 2022. Thereby, a temporary breather from hereon should be used as buying opportunity as we do not expect key support of 17300 to be breached. Our positive stance is based on the following observations:
– Breakout from the past three week’s consolidation (17500-16900) augurs well for heading toward the implicated target of 18100
– Historically, over the past two decades, Q4 returns for Nifty have been positive (average 11% and minimum 5%) on 15 out of 21 occasions (70%). History favors buying dips from hereon
– Indian equities continued to outperform their global peers, showing inherent strength
– The Dollar index has registered a breakdown from four weekly ranges while US Dollar/INR pair retreated from an upper band of a long-term rising trend line placed at 83.30. Going ahead, further cool-off in the Dollar index would provide stability in the rupee against the US dollar and support Indian equities in the coming weeks.
– The Russell 2000 index has resolved out of four weeks of base formation, indicating rejuvenation of upward momentum. We believe, the Nifty midcap index has undergone strong base formation and expect to catch up with activity in the coming weeks

Sectorally, we expect BFSI, IT, Capital Goods, Consumption, and PSU to outperform. Our preferred large caps are State bank of India, Kotak Mahindra Bank, Maruti, Reliance Industries, Infosys, Titan, Coal India, and Sun Pharma while preferred midcaps are CUB, Bank of Baroda, Concor, Granules, Coforge, ABFRL, HAL, SCI, VIP, Cummins India Structurally, formation of higher high-low on the weekly chart signifies revival in upward momentum that makes us confident to retain support base at 17300 as it is a confluence of:
a) 50% retracement of past two weeks’ rally 16950-17839
b) 50 days EMA is placed at 17355

Broader market indices have formed a higher base above 100 days EMA. We expect, the Nifty midcap and small-cap indices to resolve higher and witness catch-up activity against Nifty amid the advancement of earning season

Bank Nifty Outlook

The Bank Nifty traded in a range and closed marginally higher during the previous week to gain for the fourth consecutive week. The index closed at 40990 levels up by 0.5%. PSU banking stocks on expected lines continue to outperform with the PSU bank index closing the week higher by more than 5%. The weekly price action formed a small bear candle as it started the week on a positive note. However, profit booking at higher levels saw the index give up its gain to close the week marginally higher. Going forward, we reiterate our positive stance as we expect the index to surpass the all-time high (41840) and extend the current up move towards 42900 levels in the coming month being the 123.6% external retracement of the recent breather (41840-37386).

Dips on account of global volatility should not be constructed as negative instead should be used as a buying opportunity. Nifty PSU banking stocks continue to outperform and the PSU bank index has recently posted a resolute breakout above CY21 highs and the past five years’ downtrend line indicating a strong structural uptrend. While large caps have seen strong traction, we expect smaller PSU banks to catch up and witness strong upward momentum. Structurally, in the Bank Nifty rallies are getting faster and stronger while corrections are shallow, underpinning inherent strength. It has recently generated a faster retracement on the higher degree as an eight-month decline (41829-32990) was completely retraced in just two and half months highlighting a robust price structure.

Amongst momentum oscillators, weekly stochastics remain in an uptrend and has recently generated a buy signal thus supporting the positive bias in the index. The Bank Nifty has support at the 39800 mark being the confluence of the (a) 38.2% retracement of the last four weeks up move (37387-41530) placed at 39850 (b) the 20 days EMA currently placed at 40030 levels.

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