Business Live: Shares fall weighed by financials, rising COVID-19 cases; Barbeque Nation IPO to open on Wednesday

The benchmark stock indices opened the day on a  negative note as rising coronavirus cases affected investor sentiment.

Join us as we follow the top business news through the day.

12:00 PM

Barbeque Nation IPO to open on Wednesday; sets price band at Rs 498-500

Another IPO entry.

PTI reports: “Casual dining chain Barbeque Nation Hospitality on Monday fixed a price band of Rs 498-500 per share for its initial share sale, which will open for public subscription on March 24.

The three-day public issue will conclude on March 26, according to the company.

Barbeque Nation Hospitality is backed by private equity investor CX Partners and renowned stock market investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital.

The initial public offer comprises a fresh issue of shares worth Rs 180 crore and an offer-for-sale of up to 54,57,470 equity shares.

Equity shares aggregating up to Rs 2 crore has been reserved for eligible employees.

At the upper end of the price band, the IPO  is expected to fetch Rs 453 crore.

The company has already raised Rs 150 crore through a pre-IPO placement from Xponentia Capital and Jubilant Foodworks.

Proceeds from the issue will be utilised to fund the company’s capital expenditure for expansion and opening of new restaurants besides, prepayment or repayment of certain borrowings and expenses related to general corporate purposes.

The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by CX Partners, which made its first investment in 2013 and again in 2015.  The promoters hold 60.24 per cent, CX Partners owns 33.79 per cent and  Jhunjhunwala’s investment firm Alchemy Capital holds 2.05 per cent of the company.

The total operating revenue of the company in FY20 was Rs 850.8 crore and the CAGR from FY17 to FY20 was at 19.5 per cent.

Barbeque Nation Hospitality, which filed preliminary papers in February last year, received Sebi’s approval in July 2020 to float the IPO.

The issue is being managed by IIFL Securities, Axis Capital, Ambit Capital and SBI Capital Markets.  Barbeque Nation Hospitality, owns and operates Barbeque Nation Restaurants.  It also operates Toscano restaurants and UBQ by Barbeque Nation Restaurant.

As of December 2020, Barbeque Nation Hospitality operates 147 outlets across India and six outlets across three countries — UAE, Oman and Malaysia.

Earlier in 2017, the company had filed IPO papers with Sebi seeking to raise Rs 700 crore. However, the regulator kept the processing of the company’s proposed IPO in abeyance “pending regulatory action for past violations” and finally approved the IPO plan in January 2018.

Although, the company could not launch the initial share-sale due to adverse market conditions.”

11:30 AM

Rupee rises 6 paise against U.S. dollar in early trade

The rupee appreciated by 6 paise to 72.46 against the U.S. dollar in opening trade on Monday, supported by sustained foreign fund inflows and lower crude prices.

However, muted opening in domestic equities and a strong dollar overseas weighed on the rupee, forex traders said.

At the interbank forex market, the local unit opened strong at 72.47 against the U.S. dollar and gained further ground to quote at 72.46, a rise of 6 paise over its previous close.

In the previous session, the rupee had settled at 72.52 against the American currency.

Foreign portfolio investors (FPIs) have bought close to a net $2.5 billion worth of Indian equities so far this month. FPIs bought a net $179.40 million as of March 18, 2021. For the month of March, FPIs were net buyers of a total of $2.454 billion, Reliance Securities said in a note.


11:00 AM

A ‘foreign’ investing t(r)ip!

When a stock rises 17 times in 15 days, what happens? You jump in after the 15th day, of course! That is the story of GME (the stock ticker for American electronics games retailer Gamestop) and that of hordes of Indian investors entering the U.S. market – kickstarting their equity journey with a ‘foreign stock’. And how? After reading about it in Reddit groups!

No doubt investing in a foreign country can help diversify your portfolio. And specifically, when it comes to investing in the U.S., in stocks of companies you find value in everyday life (Google or Apple or Netflix). The question is, which route to investing in the U.S. is prudent and how much can you expose yourself to a market you know little about. So, here are things you need to know before investing internationally.

First, choosing a foreign stock is no different from choosing an equity share locally. The company’s business and financial fundamentals, moat, quality of balance sheet and governance, all matter. If not, foreign stocks too can go down to being penny stocks and destroy your wealth.


10:30 AM

Most Asian currencies weaken as Turkish lira’s slide weighs on risk sentiment

Emerging market currencies come under pressure.

Reuters reports: “Most emerging Asian currencies edged weaker on Monday, with investors slightly unsettled by a slump in Turkey’s lira after President Tayyip Erdogan sacked a hawkish central bank governor, replacing him with a critic of high interest rates.

As markets opened, Turkey’s lira plunged 15% to near its all-time low in reaction to President Tayyip Erdogan’s removal of Governor Naci Agbal over the weekend.

The Indonesian rupiah weakened 0.2% against the dollar, while the Philippine peso and the Thai baht dropped 0.1% each. “The slide in the lira will probably have only a limited spillover impact into Asia. What is happening in Turkey is very country-specific and doesn’t really have any direct bearing on Asia,” said Khoon Goh, head of Asia research at ANZ Banking Group.

“The immediate knee jerk reaction has been a bit of a risk-off mood during Asian trading session. But I don’t see any longer-term impact. Once the market digests the news, the trading in Asia is likely to reflect the region’s overall fundamentals”.

Bucking the trend, South Korean won strengthened slightly after preliminary data showed the country’s exports during the first 20 days of March jumped 12.5% from a year earlier, when the country was still dealing with its first outbreaks of the coronavirus. Investors also eyed central bank meetings in the region later in the week.

Unlike other emerging economies like Russia and Turkey, which have already embarked on a monetary tightening cycle, Asian central banks have stood pat on rates. Last week, Indonesia and Taiwan kept their key interest rate steady, while central banks in Philippines and Thailand are also expected leave rates unchanged at their meetings during the week.”

10:00 AM

Indian shares fall weighed by financials, rising COVID-19 cases

A bad start to the week for stocks.

Reuters reports: “Indian shares fell on Monday, pressured by financial stocks, as investors moved money into so-called safe sectors due to fears of fresh curbs as coronavirus cases in the country rise again.

The blue-chip NSE Nifty 50 index fell 0.4% to 14,687 and the benchmark S&P BSE Sensex dropped 0.6% to 49,579.75 as of 0502 GMT.

“There is some nervousness among the market participants given the second wave of COVID-19, new restrictions coming in place,” said Saurabh Jain, assistant vice president of research at SMC Global Securities in New Delhi.

“We are seeing some sectoral rotation with money going to information technology and pharma stocks.”

Daily coronavirus cases in the country hit their highest since early November on Monday and some regions have reimposed containment measures, including lockdowns and restaurant closures, with more steps being considered.

India’s two main stock exchanges last week posted their first weekly decline in three, due to a fresh surge in domestic COVID-19 cases and rising U.S. bond yields.

On Monday, the Nifty bank index fell 0.9% and the finance index dropped 0.7%.

Investors fear that rise in cases and new restrictions will affect the paying back capacity of businesses, hurting banks, Jain said.

On the bright side, the Nifty IT index rose 0.8% and pharma index gained 1.44%.

Shares of Andani Green Energy rose 5% after the company said it had won an order to set up a 300 MW Wind Power project.

Tata Motors shares dropped 1.2% after the company said on Friday that Marc Llistosella Bischoff, who was supposed to join as chief executive officer and managing director, will not join the company.

Meanwhile, Asian markets turned mixed and bonds bounced on Monday, as a plunge in the Turkish lira sparked talk that capital controls might be needed to stem the rout.”

9:30 AM

Oil giant Saudi Aramco sees 2020 profits drop to $49 billion

Saudi Arabia’s state-backed oil giant Aramco says that its profits sharply fell in 2020 to $49 billion. The big drop came as the the coronavirus pandemic roiled global energy markets.

Saudi Arabian Oil Co. on Sunday released its financial results a year after the pandemic sent the price of oil crashing to all-time lows as people stopped moving around the world to slow the spread of the virus.


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