Route Mobile makes stellar debut; lists at Rs 708 on BSE, 102% premium over its issue price

The cloud communications service provider Route Mobile debuted on the stock exchanges with a strong listing of 102 percent at Rs 708 on the BSE, over its issue price of Rs 350. Last week, Happiest Minds Technologies promoted by Ashok Soota, was listed 111 percent higher over its issue price, leaving the likes of  IRCTC and DMart behind. The IPO was fully subscribed on the first day of its bidding, and received 74.13 times subscription on its last day of the IPO subscription.The company said that all the funds raised from the fresh issue will be utilised to repay debt, make a strategic acquisition, purchase office premises in Mumbai and balance for general corporate purposes. Of the Rs 600 crore, fresh issue of shares worth Rs 240 crore will be issued and the remaining Rs 360 crore will be raised through offer for sale (OFS) route by promoters Y Sandipkumar Gupta and Rajdipkumar Gupta. This would result in the promoters’ stake reducing from 96 percent pre-IPO to 66.3 percent post-IPO in the firm.

Market quote by Prakash Diwan, Market Expert

On DRL

I would not be in a hurry to buy this stock while I do agree and I am absolutely in sync with the trend that is positive. As an opportunistic investor, I would probably get a better opportunity and I would wait for that. I am sure that would come one of these days in some bad newsflow that works in your favour.

On IT

IT will have absolutely great opportunities, you will have to find the CDMO, CRAMS equivalent in IT as well, the way you did in pharmaceuticals. So it is very visible that there are opportunities but it is a bit difficult to get because on the surface things probably continue to look boring and very monotonous but the other company that I want to focus a bit on is L&T Tech, I think that is another underrated play. L&T Infotech has already done well but between this family of Mindtree, LTTS and LTI, I think LTTS still has the potential to get rerated given its business profile which is getting de-risked from what it used to be. 

Opening Bell: Sensex opens flat, Nifty holds 11,500; IT stocks gain

Indian shares opened flat on Monday following Asian peers, which also remained in tight range as investors awaited developments on US fiscal stimulus and coronavirus vaccines. At 9:18 am, the Sensex was trading 9 points lower at 38,837 while the Nifty fell 1 points at 11,504. The domestic indices were dragged by heavyweights RIL, ICICI Bank, HUL, Airtel and Nestle while IT stocks HCL Techm TCS and Infosys capped losses. Among sectors, Nfity Bank, Nifty Auto, and Nifty FMCG were in the red while IT, pharma, and realty indices rose at opening. 

CNBC-TV18’s top stocks to watch out for on September 21

Indian Banks: All listed lenders will remain in focus today as Rajya Sabha passed the amendment in Insolvency and Bankruptcy Code, on Saturday. The amendment will not allow any fresh proceedings for at least six months.

Dr Reddy’s Laboratories: The pharma giant will continue to be in focus after it settled patent litigation for Revlimid with Celgene,  which allows it to sell Lenalidomide in the US after March 2022.

IRCTC: Ministry of Railways has decided to start twenty pairs of clone special trains services from September 21, 2020 on specific routes.

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EPFO records 8.45 lakh new enrolments in July

Net new enrolments with retirement fund body EPFO rose to 8.45 lakh in July from 4.82 lakh in June 2020, according to its latest payroll data, providing a perspective on employment in the formal sector amid the COVID-19 crisis. Provisional payroll data released by the EPFO last month had shown that net new enrolments stood at 6.55 lakh in June this year. The figure has now been revised down to 4,82,352. The net enrolments with the Employees’ Provident Fund Organisation (EPFO) had dropped to 5.72 lakh in March 2020 from 10.21 lakh in February, according to the payroll data released in May. The latest data released on Sunday showed that net new enrolments in April were in the negative zone at (-) 61,807 against the figure of 20,164 released in August. More here

‘FinCEN’ documents reportedly show banks moved illicit funds

Several global banks moved large sums of allegedly illicit funds over a period of nearly two decades, despite red flags about the origins of the money, BuzzFeed and other media reported on Sunday, citing confidential documents submitted by banks to the US government. The media reports were based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury’s Financial Crimes Enforcement Network (FinCen). The SARs, which the reports said numbered more than 2,100, were obtained by BuzzFeed News and shared with the International Consortium of Investigative Journalists (ICIJ) and other media organizations. 

In all, the ICIJ reported that the files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. The SARs are in themselves not necessarily proof of wrongdoing, and the ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN. Five global banks appeared most often in the documents — HSBC Holdings Plc, JPMorgan Chase & Co, Deutsche Bank AG, Standard Chartered Plc and Bank of New York Mellon Corp, the ICIJ reported. The SARs provide key intelligence in global efforts to stop money laundering and other crimes. More here

Some global cues from overnight & this morning

Chemcon Speciality Chemicals set to open IPO on September 21

Chemcon Speciality, a Vadodara-based leading manufacturer of speciality chemicals, is set to bring out its initial public offering (IPO) of equity shares of face value Rs 10 each on September 21. The IPO will close for subscription on September 23 with a price band of Rs 338-340 per equity share. The company’s revenue from operations is Rs 262.05 crore, up by 29 percent with EBITDA of Rs 70.26 crore, up by 25 percent between FY18 and FY20. In FY20, company’s profit after tax was up by 36 percent at Rs 48.85 crore. As of March 31, 2020, the total borrowings of the company stood at Rs 44.51 crores and the debt-equity ratio of the company was 0.31. Some of the company’s customers Laurus Labs, Hetero Labs, Aurobindo Pharma and Macleods Pharmaceuticals among others. More here

Indian market ‘attractive’ proposition for FPIs; net investment at Rs 3,944 crore in September so far

Foreign portfolio investors (FPIs) have put in  Rs 3,944 crore so far on a net basis in domestic markets in September, with participants seem heading to “attractive” investment destinations like India for potential better returns. Overseas investors bought equities worth a net Rs 1,766 crore and put in Rs 2,178 crore in the debt segment between September 1 and 18, depositories data showed. This translated into a total net investment of Rs 3,944 crore during the period under review. Prior to this month, FPIs remained net buyers for three consecutive months. They had invested Rs 46,532 crore in August, Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.

Seven of top 10 most valued firms lose Rs 59,260 crore in cumulative market valuation

Seven of the top 10 most valued domestic companies saw a combined erosion of Rs 59,259.58 crore in their market valuation last week, with Hindustan Unilever, HDFC Bank and Kotak Mahindra Bank emerging as major laggards. The seven firms clocking losses in their market capitalisation (m-cap) were Hindustan Unilever (HUL), HDFC Bank, Kotak Mahindra Bank, Reliance Industries, HDFC, ITC and ICICI Bank. In contrast, Tata Consultancy Services (TCS), Infosys and Bharti Airtel saw gains in their valuation for the trading week closed on Friday. HUL’s m-cap plummeted Rs 14,320.54 crore to Rs 4,93,007.39 crore,  HDFC Bank’s valuation tumbled Rs 11,611.6 crore to Rs 5,81,900.65 crore and Kotak Mahindra Bank’s market worth tanked Rs 10,205.11 crore to Rs 2,53,002.13 crore. The market cap of RIL eroded by Rs 9,027.32 crore to Rs 15,58,987.77 crore and that of HDFC declined Rs 8,144.93 crore to Rs 3,09,076.75 crore. More here

First up, here is quick catchup of what happened in the markets on Friday

Indian benchmark indices, Sensex and Nifty erased day’s gains to end Friday’s volatile session lower, dragged by selling in banking and financial stocks. At the close of trade, the Sensex fell 134.03 points or 0.34 percent to 38,845.82 while the Nifty declined 11.15 points or 0.10 percent to 11,504.95. Broader indices, Nifty Midcap100 and Nifty Smallcap100 declined 0.07 and 0.44 percent, respectively. For the week, Sensex ended flat while Nifty was up 0.5 percent. Nifty Bank fell 1.9 percent. Midcap Index outperformed the benchmarks with gains of almost 4 percent.

Welcome to CNBC-TV18’s Market Live Blog

Good morning, readers! I am Pranati Deva the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!