The Multi Commodity Exchange of India (MCX) has recently been on a remarkable journey. It has consistently outperformed the broader market, delivering substantial returns to its investors. As the exchange continues to scale, many investors wonder whether it’s the right time to buy or sell MCX shares. This article will explore the factors driving MCX’s growth, analyze its performance, and provide insights to help you make informed investment decisions.
Understanding MCX
MCX is India’s leading commodity exchange, offering a wide range of trading products, including base metals, energy, bullion, and agricultural commodities. It has played a pivotal role in transforming India’s commodity market by providing a transparent and efficient platform for price discovery and risk management. It emerged as a potential multibagger (Multibaggers are stocks that deliver exceptional returns, often multiplying investors’ initial investments several times over a short period), climbing to new record highs in October 2024.
The stock price increased from ₹2,202.50 on October 23, 2023, to ₹6,431.05 on October 23, 2024, resulting in a 202% gain over the year.
MCX’s Stellar Performance
MCX has consistently outperformed the broader market, delivering substantial returns to its investors. The exchange’s robust growth can be attributed to several key factors:
Increased Commodity Trading Activity: The Indian economy’s growing industrialization and urbanization have led to a surge in commodity demand. This has translated into higher trading volumes on MCX, boosting its revenues.
Expansion of Product Offerings: MCX has diversified its product portfolio to include derivatives on a wider range of commodities, attracting a broader investor base.
Technological Advancements: The exchange has invested heavily in technology to enhance its trading platform and provide a seamless user experience.
Regulatory Support: The government’s supportive policies and initiatives have created a favorable environment for commodity exchanges like MCX to thrive.
In the quarter ending September 2024, MCX achieved significant financial growth. Revenue for the quarter reached Rs. 286 crore, a substantial increase of 53% compared to the previous year’s Rs. 165 crore. Additionally, the company transformed a loss of Rs. 19 crore in the same quarter of the last year into a profit of Rs. 154 crore.
3 Factors Driving the Recent Surge
Several factors have contributed to MCX’s recent rally:
Global Economic Recovery: The global economy is gradually recovering from the COVID-19 pandemic, leading to increased demand for commodities.
Inflationary Pressures: Rising inflationrates have made commodities attractive as a hedge against price erosion.
Market Speculation: MCX’s strong performance has attracted speculators and momentum traders, driving its prices.
Valuation and Outlook
After strong upward momentum, MCX shares experienced a brief consolidation phase in October. However, the overall trend remains bullish. The stock has consistently traded above the 21-day moving average (DMA) since June 2024, indicating a positive short-term outlook. Additionally, on the monthly charts, MCX has formed higher lows for the past four months, suggesting a sustained upward trend.
Price Movement and Technical Analysis
From a technical perspective, MCX’s stock price trades above all major moving averages on the daily charts, including the 5, 10, 30, 50, 100, and 200-day DMAs. This technical strength reinforces the stock’s positive outlook.
The daily Relative Strength Index (RSI) for MCX stands at 71.8. An RSI above 70 indicates that the stock may be overbought and could experience a potential pullback. However, the daily Moving Average Convergence Divergence (MACD) is currently above its center and signal line, a bullish indicator.
Industry experts believe buying interest has consistently supported MCX’s stock price over the past fifteen months. The recent breakout to new all-time highs on the daily chart suggests a positive outlook. MCX’s growth is also attributed to increasing futures and options (F&O) volumes and introducing new products.
MCX has undoubtedly delivered impressive returns in recent years. However, it’s essential to approach investments cautiously and conduct thorough research before making decisions.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is MCX, and why is its performance so significant?
MCX, or the Multi Commodity Exchange of India, is the leading commodity exchange in India. It provides a platform for trading various commodities, including metals, energy, and agricultural products. The recent surge in MCX’s performance is noteworthy because it signifies a significant increase in investor interest and confidence in the Indian commodity market.
What are the key factors driving MCX’s 202% annual return?
Several factors have contributed to MCX’s exceptional performance. First, the Indian economy has been relatively stable, leading to increased industrial activity and commodity demand. Second, the government’s infrastructure development initiatives have boosted demand for metals and construction materials. Rising global commodity prices, particularly metals and energy, have also played a significant role in MCX’s growth.
Is this a sustainable trend, or is there a risk of a correction?
While MCX’s performance has been impressive, it’s important to note that markets are inherently volatile. There is always a risk of a correction, especially if there are significant changes in economic conditions or global events.
Are you one of the investors who eagerly subscribed to Waaree Energies’ IPO? If so, you’re not alone. The initial public offering of Waaree Energies Ltd, a leading solar PV modules manufacturer, has received an overwhelming response, breaking records with the highest-ever number of applications for an IPO. Following this remarkable demand, Waaree Energies has finalized its IPO allotment, and shares are set to list at a significant premium in the grey market.
Here’s a closer look at the key details, including the IPO’s record-breaking subscriptions, the premium in the grey market, and how you can check your allotment status.
Record-Breaking Waaree Energies IPO Subscription
The Waaree Energies IPO saw stellar demand from investors across categories. The IPO was open for subscription from October 21 to October 23, during which it received bids totaling an impressive 160.91 crore equity shares, significantly higher than the 2.10 crore shares available. This demand resulted in a total oversubscription of 76.34 times, amounting to approximately ₹2.41 lakh crore in bids.
This huge response was primarily driven by institutional investors, with the Qualified Institutional Buyers (QIBs) portion being oversubscribed 208.63 times. Non-institutional investors (NII) also showed strong interest, with their category subscribed 62.49 times.
Retail investors, too, demonstrated substantial participation, with a 10.79 times subscription in the retail category. This high subscription reflects the strong interest in the renewable energy sector and Waaree Energies’ established presence in the Indian solar market.
Waaree Energies IPO GMP Today
In the grey market, Waaree Energies shares are trading at a substantial premium, indicating positive investor sentiment. Today’s grey market premium (GMP) stands at ₹1,590 per share, suggesting that the shares are trading at approximately ₹3,061 apiece—about 106% above the IPO price of ₹1,503 per share. This surge in GMP signals a strong debut for Waaree Energies shares in the unlisted market and reflects high expectations for the company’s performance post-listing.
Checking Waaree Energies IPO Allotment Status
With the allotment finalized, investors can now check if they have secured shares in the IPO. The shares are expected to be credited into the demat accounts of successful applicants on October 25, and refunds for unsuccessful bids will be initiated on the same day. To check your allotment status online, you can use the BSE website, the NSE website, or the IPO registrar’s portal, Link Intime India Private Ltd. Here’s how:
Checking Allotment Status on the BSE
1. Visit the BSE website.
2. Select ‘Equity’ under Issue Type.
3. In the dropdown menu for Issue Name, choose ‘Waaree Energies Limited.’
4. Enter your Application Number or PAN.
5. Verify by selecting ‘I am not a robot’ and click ‘Search.’
Your allotment status will then be displayed on the screen.
Checking Allotment Status on Link Intime
1. Visit the Link Intime India website: [Link Intime IPO Page](https://linkintime.co.in/initial_offer/public-issues.html).
2. Select ‘Waaree Energies Limited’ in the dropdown for Select Company.
3. Choose from PAN, Application Number, DP ID, or Account Number.
4. Enter the necessary details based on your selection.
5. Click on ‘Search’ to view your allotment status.
Details of Waaree Energies IPO
Waaree Energies Ltd launched its IPO with a price band of ₹1,427 to ₹1,503 per share, aiming to raise ₹4,321.44 crore at the upper end. The company’s goal for the funds includes establishing a 6 GW facility for ingot wafer, solar cell, and PV module manufacturing in Odisha, alongside general corporate purposes.
The IPO consists of a fresh issue of 2.4 crore equity shares, which raised ₹3,600 crore, and an offer for sale (OFS) of 48 lakh shares, contributing ₹721.44 crore. With a market valuation projected at over ₹4,300 crore post-issue, Waaree Energies is set to solidify its footprint in India’s renewable energy sector. Source: SEBI
Waaree Energies, one of India’s prominent solar PV module manufacturers, operates five manufacturing facilities in Surat, Tumb, Nandigram, and Chikhli in Gujarat and the IndoSolar Facility in Noida, Uttar Pradesh. As of June 30, 2023, the company’s production capacity stood at 12 GW, underscoring its extensive scale in the PV module industry.
Financially, Waaree Energies has demonstrated good performance. For FY24, the company’s revenue grew by 69% year-on-year to ₹11,398 crore, while its profit after tax surged to ₹1,274 crore, more than double compared to the previous fiscal year. This financial strength likely contributed to the strong response to the IPO.
Following the finalization of the IPO allotment, Waaree Energies shares are set to list on both the BSE and NSE, with a likely listing date of October 28. Investors who receive allotments can anticipate their shares to be credited to their demat accounts on October 25. Given the high GMP and the IPO’s substantial oversubscription, analysts believe Waaree Energies may have a strong debut on the stock exchange.
With its significant market presence, ambitious expansion plans, and positive reception in the grey market, Waaree Energies is positioned as a key player in India’s renewable energy landscape. Investors can eagerly await the official listing and watch for further developments as the company scales its operations to meet India’s growing demand for clean energy.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Mutual fund units represent a portion of ownership in a mutual fund scheme. They are electronic records, much like shares in a company. A Demat (Dematerialized) account is a digital repository for holding securities, including mutual fund units.
You can transfer mutual fund units between demat accounts, whether yours or those of family and friends. However, this process is highly tedious, involving offline, paper-based steps with no online alternative. As a result, holding MF units in demat form becomes quite disadvantageous. The only available method to gift mutual fund units to others is through the demat process.
Why Move Mutual Fund Units?
There are several reasons why you might want to move your mutual fund units from one Demat account to another:
Consolidation: If you have multiple Demat accounts, consolidating your investments into one account can simplify management.
Transfer of Ownership: You might want to gift or transfer your mutual fund units to someone else.
Switching Brokers: If dissatisfied with your current broker’s services, you can transfer your investments to another broker.
Process of transferring MF units to your Friends/Family
Holding Mutual Fund Units in Demat Form: A Process with Drawbacks
Holding mutual fund (MF) units in dematerialized (demat) form offers a method for transferring or gifting units but comes with multiple disadvantages. The demat process is cumbersome, offline, and restrictive, making it less appealing to investors.
Let’s explore the significant drawbacks of holding MF units in demat form, why investors may want to avoid it and understand the process in detail.
The Cumbersome Dematerialization Process
The dematerialization process is the first challenge in gifting MF units through the demat mode. Separate demat accounts must be opened for both the transferor and the transferee. If the units are held as a statement of account (SoA), they must be converted into demat form.
Steps for Dematerialization:
Open demat accounts: The transferor and transferee need demat accounts to initiate the transfer.
Filling out forms: A “mutual fund dematerialization form” is filled out with details such as the fund name, folio number, and units to be dematerialized.
Processing time: It typically takes 3-4 business days to complete the dematerialization process.
While it seems straightforward, this process is both time-consuming and inconvenient, especially for investors used to a more digital-first approach.
The Delivery Instruction Slip (DIS): A Tedious Requirement
After the dematerialization, the transferor must fill out a Delivery Instruction Slip (DIS) to initiate the transfer. The form contains critical details about the transferor and transferee, including the ISIN (International Securities Identification Number) and the Beneficial Owner Identification (BOID) codes.
Key Details in the DIS:
ISIN Number: Each mutual fund unit has a unique ISIN that needs to be mentioned.
BOID Information: The transferor and transferee’s demat account details must be filled out.
Quantity: The number of transferred units expressed in figures and words.
Any errors or corrections on the DIS require counter-signatures, making the process even more cumbersome. The slip must then be submitted to the broker or depository participant (DP) in person or via courier, further complicating the process.
Submission and Verification Process
The submission of the DIS to the broker kicks off a lengthy process that includes document verification. In addition to the DIS, additional documents like the Client Master Report (CMR) are required for verification purposes.
For larger transfers (above ₹5 lakh), additional steps may be required, such as video and OTP verification, making the process even more time-consuming. Brokers may also call or email to confirm the details, adding an extra layer of complexity.
Potential Delays:
Video verification: High-value transactions may require video verification, further delaying the process.
Courier Delays: The need to send physical documents often leads to logistical delays.
Bureaucratic issues: The broker can experience delays in approving details like BOID and ISIN.
Such delays mean the entire process can take weeks or even months, especially if logistical or administrative issues arise.
High Costs Associated with the Transfer
Another significant drawback is the cost of transferring MF units through the demat form. Brokers charge fees based on the transaction value, and there are additional taxes like stamp duty.
Associated Costs:
Transaction fees: Zerodha, for example, charges 0.03% of the transaction value or ₹25 per ISIN, whichever is higher.
GST and Stamp Duty: 18% GST is levied on transaction charges, and a stamp duty of 0.015% is payable on transfers.
These costs can add up for large transfers, further discouraging investors from using the demat form to hold MF units.
Tax Implications for Gifted Mutual Fund Units
Transferring MF units to a family member has no immediate tax implications unless the transferee sells the units; at this point, capital gains tax may apply. In transfers to non-family members, if the value exceeds ₹50,000, it may trigger a tax liability for the recipient.
Capital Gains Considerations:
Adjusted acquisition price: The transferee must manually adjust the acquisition price in their demat account to match the original price paid by the transferor.
Tax discrepancies: Failure to report the correct acquisition price could lead to issues during tax audits.
Proper documentation is crucial to avoid tax-related problems, making the process more burdensome.
The inflexibility of Holding Units in Demat Form
Once the units are dematerialized, they can only be transacted through the broker’s platform. This limits investors’ flexibility, as they can no longer use multiple platforms such as the RTA portals, AMC websites, or MF Central. This restriction can frustrate investors who value the freedom to choose from multiple transaction platforms.
Lack of Flexibility:
Limited to broker’s platform: Transactions can only be completed through the broker, limiting options.
Difficulty in exiting broker relationships: If the broker’s service deteriorates, switching or exiting the relationship becomes challenging.
Loan complications: Obtaining a loan against mutual funds in demat form requires a no-objection certificate from the broker, who might take the opportunity to cross-sell other loan products.
This lack of flexibility is a significant disadvantage, especially compared to the ease of transacting with units held in SoA form.
Rematerialization: Reverting to SoA Format
Investors seeking more flexibility may opt for rematerialization or converting demat units back into the SoA format. While this process is possible, it involves filling out additional forms and waiting for approval from the AMC or RTA.
Filling out forms: A rematerialization request form (RRF) must be completed and submitted.
AMC processing: The AMC or RTA processes the request, issuing an SoA reflecting the investor’s holdings.
Processing time: This can take weeks, depending on the accuracy of the information provided.
Although rematerialization is free, some brokers may charge nominal handling fees, which can further inconvenience the investor.
Conclusion: Why Avoid Holding MF Units in Demat Form?
The many disadvantages of holding mutual fund units in demat form—ranging from high costs and inflexibility to cumbersome processes—make it a less attractive option for investors. By contrast, holding units in SoA form allows for greater flexibility, enabling transactions across various platforms and avoiding the fees and delays associated with demat holdings.
Investors should carefully weigh these factors before deciding whether to hold their mutual fund units in demat form, especially if they value flexibility and ease of use.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What is the difference between transferring and gifting mutual fund units?
When transferring mutual fund units, you move them from one Demat account to another under your name. This is often done for consolidation purposes or when switching brokers. On the other hand, gifting mutual fund units involves transferring ownership to someone else. This is typically done as a present or to pass on wealth. In both cases, the underlying investment remains the same.
Is there a fee associated with transferring or gifting mutual fund units?
Some Depository Participants (DPs) may charge a nominal fee for transferring or gifting mutual fund units. However, the fees can vary depending on the DP and the type of transfer. It’s always advisable to check with your DP for specific details regarding any applicable charges.
How long does it typically take to transfer or gift mutual fund units?
The transfer or gifting process usually takes a few business days. However, the exact timeline can vary depending on the volume of transactions and the DPs’ efficiency. Initiating the transfer well in advance is recommended, especially if you have a specific deadline in mind.
Are there any tax implications for transferring or gifting mutual fund units?
There can be tax implications for transferring or gifting mutual fund units. The tax treatment will depend on various factors, including the type of transfer (gift or sale), the holding period of the units, and the applicable tax laws. It’s essential to consult with a tax professional for personalized advice on the tax consequences of your specific situation.
The recent Indo-China border pact between India and China marks a historic turning point in their strained bilateral relationship. Tensions over disputed territories have shadowed economic cooperation and investment flows for years. However, this landmark agreement offers a glimmer of hope for a new era of collaboration.
While the pact signals a positive development, it’s essential to acknowledge that the road ahead will likely be complex. Several factors, including geopolitical considerations, economic conditions, and regulatory hurdles, will continue to shape the trajectory of investments between the two countries.
The global geopolitical context, including the ongoing Russia-Ukraine conflict and the broader competition between the United States and China, may also indirectly affect bilateral investments.
Indo-China Pact –A Historic Breakthrough
The announcement of the border pact came as a significant surprise, given the tense relations between the two countries following the 2020 border clash. This breakthrough has opened the door for improved political and economic ties, which could have far-reaching investment implications.
Addressing Investor Concerns
One of the major concerns that has hindered investments between India and China has been the government’s stringent vetting process for companies from neighboring countries. The introduction of Press Note 3 in 2020 effectively restricted investments from Chinese firms, leading to a significant decline in bilateral flows.
While the Indo-China border pact may alleviate some of these concerns, it’s important to note that India will continue to maintain investment curbs on bordering nations. The government will focus on the place of origin of investments rather than the identity of the investors. This suggests that scrutiny will remain in place to safeguard national interests.
The Growing Economic Ties
Despite the political tensions that have characterized the India-China relationship in recent years, economic ties between the two countries have strengthened. This is evident in the steady growth of bilateral trade.
In FY24, India-China trade reached a new milestone, surpassing $118.4 billion. Notably, China overtook the United States as India’s largest trading partner during this period. This signifies a significant shift in India’s trade landscape and underscores the growing economic interdependence between the two nations.
While Chinese investments in India have been relatively modest compared to trade flows, China’s substantial exports to India highlight the complementary nature of their economies. India’s demand for Chinese goods, ranging from electronics and machinery to raw materials, has been a major driver of bilateral trade.
The Role of FDI
The Indian government has increasingly recognized the importance of foreign direct investment (FDI) as a catalyst for economic growth and development. FDI brings in capital, technology, and expertise, which can contribute to job creation, industrial development, and technological advancement.
While FDI from China has not been a significant source of inflows to India, the recent Economic Survey has advocated for a more open and welcoming approach towards such investments. The argument is that attracting Chinese FDI can be advantageous for several reasons:
Technology Transfer: Chinese companies often possess advanced technologies and manufacturing capabilities that can benefit India’s industrial development.
Job Creation: FDI can lead to the creation of new jobs and boost employment opportunities.
Domestic Manufacturing: By attracting Chinese FDI, India can encourage the domestic manufacturing of goods previously imported from China. This can reduce import dependency, improve trade balances, and promote self-sufficiency.
Global Value Chains: Participating in global value chains through FDI can help Indian companies enhance their competitiveness and access new markets.
While the Economic Survey has made a strong case for attracting Chinese FDI, it’s important to note that the government will continue to exercise due diligence to safeguard national interests. Any FDI proposal from China will be carefully evaluated to ensure that it aligns with India’s economic and strategic objectives. Source: Livemint
Challenges and Opportunities of the Border Pact
Despite the positive developments, several challenges remain that could impact the flow of investments between India and China:
Geopolitical Factors: The ongoing geopolitical tensions between the two countries, including border disputes and technology rivalry issues, could continue to influence investment decisions.
Regulatory Hurdles: Even with the relaxation of some restrictions, navigating the regulatory landscape in India can be complex for foreign investors.
Economic Conditions: The economic conditions in both countries, including growth rates, interest rates, and exchange rates, will play a crucial role in determining the attractiveness of investments.
The Way Forward
To fully realize the potential for increased investments between India and China, addressing these challenges and creating a conducive environment for businesses will be essential. This includes:
Further Policy Reforms: The Indian government could consider further easing restrictions on FDI from China and other neighboring countries.
Enhanced Dialogue: Regular dialogue and cooperation between the two countries can help build trust and confidence, essential for fostering long-term economic partnerships.
Focus on Mutual Benefits: Investments should be driven by a focus on mutual benefits and the creation of shared value.
Conclusion
The border pact between India and China marks a significant step towards improving bilateral relations. While challenges can be overcome, the potential for increased investments and economic cooperation is substantial. By addressing the concerns and creating a favorable environment, the two countries can unlock the full potential of their partnership and contribute to the global economy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Gold Exchange Traded Funds (ETFs) have seen significant growth across the globe, according to the latest report by the World Gold Council. Amidst economic uncertainty, geopolitical tensions, and market volatility, gold has again proven its appeal as a safe haven. This growing interest in gold ETFs shows that investors are looking for a safe spot to invest their money amidst the risks in other financial markets.
The global assets under management (AUM) of gold ETFs increased significantly by 5% to $271 billion by the end of September 2024. Additionally, total holdings rose by 18 tonnes to 3,200 tonnes, according to a report published by the World Gold Council (WGC).
In India, gold ETFs have demonstrated consistent popularity among investors. Net inflows have been recorded for a substantial 20 months, with only two exceptions occurring in March 2023 and April 2024. This trend underscores the increasing preference for gold ETFs as an investment vehicle among Indian investors. As of September 30, 2024, Indian gold ETFs recorded an AUM of ₹39,824 crore.
The World Gold Council’s report highlights several trends and insights regarding the performance of gold ETFs worldwide:
Global Growth in Gold ETF Holdings:
According to the report, global gold ETF holdings have reached new highs, with strong inflows in North America, Europe, and Asia. These funds saw consistent monthly increases in assets under management (AUM), driven by rising geopolitical risks, inflation concerns, and central bank monetary policy shifts.
Regional Performances:
North America: U.S. gold ETFs led the charge, benefitting from both retail and institutional demand as investors sought to hedge against inflation and the weakening U.S. dollar.
Europe: European investors increased their allocations in gold ETFs, driven by uncertainty over economic stability and ongoing tensions around energy supplies.
Asia: In Asia, particularly in China and India, gold ETFs witnessed substantial growth due to cultural affinity for gold, combined with rising investment demand in uncertain times.
Impact of Central Bank Policies:
The report notes that central banks’ dovish monetary policies, especially in the U.S. and Europe, have bolstered gold prices and, by extension, gold ETFs. As interest rates remain low, gold becomes a more attractive asset for investors looking for alternative stores of value.
What are Gold ETFs?
Gold ETFs are financial instruments that represent ownership of gold. These funds invest in physical gold, allowing investors to gain exposure to gold prices without the need to store or physically hold the metal. Each unit of a Gold ETF is typically backed by one gram of gold or a fraction thereof, making it easier for both retail and institutional investors to access the commodity. Here is a list of some popular gold ETFs that performed well and gave good returns to investors.
Gold ETFs are increasingly seen as a vital component of an investment portfolio for several reasons:
1. Diversification Benefits:
Gold is a non-correlated asset, which means its value doesn’t move in the same direction as stocks or bonds. Including gold ETFs in your portfolio can help spread out risk and lower overall volatility.
2. Hedge Against Inflation:
Gold has traditionally been viewed as a hedge against inflation. In times of rising prices, gold’s value tends to increase. With inflation rates climbing in many parts of the world, investors have flocked to gold ETFs to protect their purchasing power.
3. Safe Haven in Uncertain Times:
During periods of geopolitical instability or economic downturns, gold’s status as a safe-haven asset attracts more investment. The report highlights how current events, such as tensions in the Middle East and concerns over global economic slowdown, have prompted many to increase their holdings in gold ETFs.
4. Accessibility and Liquidity:
Gold ETFs provide an easy and cost-effective way for investors to gain exposure to gold without the need for physical storage or security concerns. Unlike physical gold, which may be difficult to sell quickly, gold ETFs offer high liquidity, allowing investors to buy or sell units on stock exchanges easily.
5. Regulatory Framework and Transparency:
Gold ETFs are regulated and offer a high level of transparency. Investors can easily track their holdings’ value through live market prices and monitor fund performance, making them a reliable investment option.
Performance During Market Volatility
The World Gold Council report emphasizes how gold ETFs have outperformed many other asset classes during market volatility. The COVID-19 pandemic, for instance, led to a surge in gold prices, with gold ETFs benefiting from a flight to safety by global investors. As stock markets experienced sharp declines in early 2020, gold ETFs became one of the top-performing asset classes, providing much-needed stability to portfolios.
Case Study: 2023 Market Performance
The report analyzes gold ETFs during the volatile market conditions of 2023. Key highlights include:
Sharp Rise in Gold Prices: Global uncertainties, including inflationary pressures, rising energy prices, and fears of a recession, pushed gold prices to multi-year highs.
Strong Inflows into ETFs: Amid fears of a global economic slowdown, investors poured significant capital into gold ETFs, leading to record-high inflows.
Future Outlook for Gold ETFs
The World Gold Council is optimistic about the future of gold ETFs, citing several factors that may continue to drive demand:
1. Inflation and Economic Uncertainty:
As inflation remains elevated and global economies face uncertainty, investors are expected to continue seeking safety in gold. Gold ETFs will likely benefit from this prolonged demand for safe-haven assets.
2. Evolving Investment Preferences:
Younger investors, particularly Millennials and Gen Z, are increasingly interested in gold as an investment. This demographic is increasingly drawn to gold ETFs due to their ease of access, low costs, and transparency.
3. Central Bank Gold Purchases:
Central banks worldwide are increasing their gold reserves, which further supports the demand for gold ETFs. Countries like China and Russia are particularly keen on boosting their gold holdings as a hedge against the dominance of the U.S. dollar.
4. Digital Gold and Gold ETF Hybrids:
Innovations in financial products, such as digital gold and hybrid products that combine gold ETFs with blockchain technology, will likely make gold ETFs appeal even more to tech-savvy investors.
Conclusion
Gold ETFs have proven their value in 2023, offering investors a reliable way to safeguard their wealth in uncertain times. The World Gold Council report underscores the global appeal of these financial products, particularly as inflationary pressures and geopolitical tensions continue to weigh on markets. With their ease of access, liquidity, and transparency, gold ETFs are expected to remain a core asset in portfolios worldwide.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why has the AUM of gold ETFs seen such a significant increase?
The surge in AUM for gold ETFs can be attributed to several factors. First, the U.S. Federal Reserve’s decision to lower interest rates has made gold a good investment option. Second, escalating geopolitical tensions have created a sense of uncertainty and market volatility, prompting investors to seek safe-haven assets like gold. Third, gold ETFs offer a convenient and liquid way to invest in gold without the physical risks associated with owning the metal.
What are the key benefits of investing in gold ETFs?
Investing in gold ETFs offers several advantages. They provide exposure to gold without needing physical storage, making them more accessible and convenient. Gold ETFs are also highly liquid, allowing investors to easily buy and sell their holdings. Additionally, they are professionally managed, ensuring that the underlying gold assets are properly stored and insured. Furthermore, gold ETFs are often traded on major exchanges, providing transparency and price efficiency.
Are there any risks associated with investing in gold ETFs?
While gold ETFs offer several benefits, they also carry some risks. Gold prices can be volatile, and they will not be guaranteed to appreciate. Gold ETFs are also subject to market risk, meaning their prices can fluctuate based on overall market conditions. Investors should consider their risk tolerance and investment goals before investing in gold ETFs.
How do gold ETFs compare to other investment options?
Gold ETFs can be a valuable addition to a diversified investment portfolio. They can help hedge against inflation and market volatility. However, it is important to compare gold ETFs to other investment options, such as stocks, bonds, and real estate. Each asset class has unique characteristics and risks, and investors should carefully consider their circumstances and goals when making investment decisions.
How does a ₹8,100 crore deal impact the Indian cement industry? How does it position Ambuja Cements, an Adani Group company, in its race to reach 100 million tonnes per annum (MTPA) cement capacity by 2025? These are the key questions that the latest acquisition by Ambuja Cements raises as the company continues its aggressive expansion strategy under the leadership of Adani Group.
On Tuesday, Ambuja Cements announced it will acquire a 46.8% stake in Orient Cement Ltd (OCL) for an equity value of ₹8,100 crore. This deal aims to bring Ambuja Cements closer to its target of achieving 100 MTPA capacity by the 2025 financial year and increasing its market share across India by approximately 2%.
Key Details of the Acquisition
The acquisition will take place in two stages. First, Ambuja Cements will acquire 37.9% of Orient Cement’s shares from the company’s promoters and 8.9% from select public shareholders. Following this, Ambuja plans to launch an open offer to acquire an additional 26% stake in OCL’s expanded share capital.
The open offer will be priced at ₹395.40 per share, in line with the Substantial Acquisition of Shares and Takeovers (SAST) regulations. This open offer is expected to be completed within 3-4 months. Source: MoneyControl
This is Ambuja Cements’ fifth major acquisition since Adani Group took control of the company in September 2022. Prior to this, Ambuja made headlines with its June acquisition of Hyderabad-based Penna Cement, signaling its intention to consolidate its presence in South India. This latest move adds to Ambuja’s production capacity, boosting it by 8.5 million tonnes and bringing its total cement capacity to 97 MTPA. The company has set an ambitious goal of reaching 140 MTPA by 2028.
Strategic Significance of the Deal
Orient Cement’s plants in Telangana, Karnataka, and Maharashtra are crucial to Ambuja’s strategy to expand its footprint in South India.
The South Indian market is seen as a hotspot for infrastructure-driven demand, with major projects like the development of Andhra Pradesh’s new capital, Amravati, set to drive cement consumption. The Union Budget 2024 allocated ₹15,000 crore for Amravati’s development, which is expected further to spur demand for construction materials, including cement.
The acquisition also provides Ambuja access to Orient’s high-quality limestone reserves, an essential raw material in cement production. With existing statutory approvals in place, there is potential to increase Orient’s cement capacity from its current 8.5 MTPA to 16.6 MTPA in the near future. Source: Livemint
Ambuja’s aggressive expansion in South India puts it head-to-head with UltraTech Cement, India’s largest cement producer, currently holding over 180 MTPA capacity. UltraTech, a key competitor, aims to reach 200 MTPA by 2027 and has also been expanding its presence in the South with its acquisition of Penna Cement.
The southern region is becoming a key battleground for cement companies due to the expected rise in infrastructure demand. Cement firms are scrambling to secure production capacity to meet the upcoming demand boom, and Ambuja’s acquisition of Orient Cement is a significant step in this direction.
The news of the acquisition immediately impacted the stock prices of both Ambuja Cements and Orient Cement. Ambuja’s shares rose modestly, trading up 1.49% at ₹580 on the announcement day, while Orient Cement’s shares increased by 1.65%, trading at ₹358.25. However, despite this initial positivity, both companies’ stocks experienced a decline amid broader market corrections. Ambuja’s stock closed 2.4% lower at ₹558, while Orient Cement fell 2.5% to ₹343.4.
Despite this short-term dip, Ambuja’s stock performance over the past year has been strong. Its share price has risen by 35%, significantly outpacing the 24% gain in the benchmark Sensex.
Adani Group entered the cement sector by acquiring Ambuja Cements and ACC Limited in September 2022 for $10.5 billion, a strategic move to fill a key gap in its infrastructure portfolio. With its substantial interests in coal, power, logistics, and real estate, Adani saw significant synergies in integrating cement production into its ecosystem.
These synergies offer Ambuja the potential for cost reductions in cement production, as Adani’s coal and power businesses provide essential inputs for the energy-intensive cement manufacturing process. This vertical integration is expected to give Ambuja a competitive edge in cost and efficiency.
In addition to the Orient Cement acquisition, Ambuja also acquired Sanghi Industries in Gujarat in August for an enterprise value of ₹5,000 crore. Sanghi Industries’ 6.1 MTPA production capacity further strengthens Ambuja’s market position, particularly in Western India. Source: Economic Times
Conclusion
With the acquisition of Orient Cement, Ambuja Cements is solidifying its position as one of the dominant players in the Indian cement industry. The deal brings the company closer to its 100 MTPA capacity goal and enhances its presence in the crucial South Indian market. While Ambuja still faces stiff competition from industry leader UltraTech, its strategic acquisitions and synergies within the Adani Group position it well for the future.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Kamath brothers, founders of Zerodha, are known not just for running one of India’s top brokerage platforms but also for their varied investment choices. Their latest big move? They’ve invested Rs. 100 crores in Nazara Technologies, a gaming company set to ride the wave of India’s booming gaming scene. With 450 million gamers and a rapidly expanding market, Kamath is betting on the future of gaming.
Through his investment firm, Kamath Associates & NK Squared, he purchased ₹100 crore worth of shares in Nazara Tech at ₹714 per share. In this article, we’ll explore why Kamath chose Nazara and the growth of the gaming industry in India.
Per PWC’s Global Entertainment and Media Outlook, the Indian online gaming market is projected to grow at a compound annual growth rate (CAGR) of 14.5%, doubling from ₹33,000 crore in 2023 to ₹66,000 crore by 2028. Source: Mint
Before we discuss the growth of the gaming industry, let’s examine some interesting facts about Nikhil Kamath. His story is truly inspiring. Starting with just ₹ $8,000 at a call center, he built a fortune of $3.07 billion. As the co-founder of Zerodha, Kamath changed the brokerage industry with a zero-brokerage model, similar to how Jio transformed the telecom industry.
His belief in India’s rising consumption power has fueled his investments in companies that cater to growing Indian consumer demands. One of the most prominent examples is Kamath’s backing of Nazara Technologies, a leading name in Indian esports and gaming. He views Nazara Technologies as a key player in the gaming industry, which holds a unique position as one of India’s few listed gaming entities.
Why Did Kamath Place Big Bets on Nazara?
Established Gaming Leader: Founded in 1999, Nazara has grown into India’s leading gaming and sports media company, driven by its mergers and acquisitions strategy.
Diversified Revenue Streams: Nazara’s portfolio is well-diversified, including popular brands like Kiddopia, Sportskeeda, and Nodwin. In FY24, gaming accounted for 36% of its revenue, with 55% coming from esports and 9% from ad tech.
Impact of GST Changes: Nazara’s shares dropped but quickly recovered, as the Real Money Gaming (RMG) segment minimally contributed to the company’s overall revenue after the announcement of GST changes.
Cautious Expansion Approach: Due to ongoing regulatory uncertainties, the company took a cautious approach to expanding in the RMG segment.
Why the Gaming Industry?
India’s gaming industry has witnessed an exponential rise in recent years, with mobile gaming and esports leading the way. According to Kamath, the country’s increasing digital penetration and improved internet infrastructure have created a favorable environment for gaming companies to flourish. Moreover, with the younger population embracing esports and mobile games, the sector is expected to grow even further.
Enormous Potential in Gaming
Kamath’s View on Gaming: Nikhil Kamath believes the gaming industry, particularly esports, has huge potential and could become the next big thing in India.
Global Market Insights: On X (formerly Twitter), Kamath highlighted that the worldwide gaming market was worth $159.3 billion in 2020, nearly triple the $60.8 billion market of the film and music industries combined.
India’s Gaming Landscape: With 45 crore gamers, including 18 lakh esports enthusiasts, India has become a major player in the gaming world. The online gaming community is growing at an impressive 10% CAGR annually. Projections indicate that by 2028, India will surpass China with 720 million gamers.
Growth Potential: EY’s New Frontiers report indicates India’s gaming penetration is at 30%, which lags behind other countries like the USA (56%), China (53%), and Japan (83%), revealing immense room for expansion.
Young and Tech-Savvy Population
Demographic Advantage: According to the India Brand Equity Foundation (IBEF), India is the youngest country in the world, with 45% of its population—over 60 crore people—under the age of 35. This youthful and tech-savvy demographic is a significant growth driver for the gaming industry.
Internet Usage Trends: Gaming made up 53% of internet usage in 2023, following OTT platforms, communication, and social media. The rising smartphone users, expected to exceed 1 billion by 2025, will further boost gaming growth.
Rising Income Levels: As India transitions from a low-income to a middle-income nation, its per capita income is projected to exceed $26,000 by 2047, a dramatic rise from the current $2,484.
Revenue from In-App Purchases: Economic growth will likely lead to increased spending on in-app purchases, which currently account for 70% of mobile gaming revenue. This growth will drive revenue from free-to-play games through ads, subscriptions, and sponsorships.
Nazara Technologies has positioned itself as a leader in the space by building a diverse portfolio across gaming, esports, and edutainment. The company’s growth trajectory and strong foothold in emerging markets made it a perfect fit for Kamath’s investment philosophy, which seeks to tap into industries with high potential for consumer spending.
Nazara has experienced slow growth over the past year, with revenue rising slightly from ₹1,091 crore in FY23 to ₹1,138 crore in FY24. Although revenue remained flat due to cost control measures, the company increased its net profit from ₹61 crore to ₹75 crore, registering a 20% growth.
Merger & Acquisitions
Nazara has actively pursued mergers and acquisitions, spending over ₹1,800 crore in the last six months, which could potentially double its revenue within two years.
Recent acquisitions include Comic Con India, which hosts events related to popular culture, such as comics, cosplay, movies, merchandise, and gaming. The company has also acquired Publish. Me, Fusebox, Ninja, Freaks4U (investment), and Branded.
In addition, Nazara launched its publishing division, “Nazara Publishing,” which promotes games developed by Indian creators. The company plans to release up to 20 games across mobile, web3, virtual reality (VR), and personal computers (PC) by mid-2025.
While Zerodha is primarily known as a brokerage platform, the Kamaths’ investment in gaming reflects their broader interest in the Indian consumption story.
Their exposure to sectors like gaming is rooted in the notion of identifying industries with untapped potential. His private investment vehicles, Kamath Associates and NK Squared, have a track record of backing consumer-focused startups like Licious (a meat delivery platform) and Third Wave Coffee. This demonstrates the Kamath brothers’ preference for companies that cater to everyday Indian consumers.
Business Model of Gaming Companies
The gaming industry faces significant hurdles due to regulatory uncertainties, which could impact its growth trajectory.
Diverse Business Models:
Free Games: Include freemium, shareware, and ad-funded models.
Paid Games: Operate on upfront payments, subscriptions, and Real Money Gaming (RMG). In RMG, players pay an entry fee contributing to both platform revenue and prize pools for winners.
Regulatory Setback
Complex Regulatory Landscape: The online gaming landscape in India has become increasingly complicated, especially for RMG, which is taxed at 28%.
Games outside the RMG category face an 18% tax on platform fees.
The recent tax hike has caused turmoil in the industry, leading states like Tamil Nadu to ban RMG games despite the Supreme Court classifying them as skill-based.
GST Changes:
Until mid-2023, GST was applied at 18% on gross gaming revenue.
The government’s decision to impose a higher GST rate of 28% on the entire contest entry amount (CEA) has significantly affected the ecosystem, dramatically increasing companies’ tax liabilities.
For example, a platform that previously paid ₹1.8 in GST on a ₹100 entry fee now faces a tax of ₹28.
Financial Consequences:
The GST authorities have raised a demand exceeding ₹1.12 trillion due to this tax revision, which is currently under judicial review.
India’s Gaming Sector: A Growth Story
Despite all the regulatory hurdles and challenges, India’s gaming market is experiencing a phenomenal rise. The RMG market (Real Money Gaming) continues to be the largest segment in India’s gaming industry, generating ₹16,500 crore in revenue in 2023 and representing 83-84% of the overall gaming market. The esports segment, in particular, has surged thanks to the rise of professional gaming leagues and competitions.
Nazara Technologies has played a pivotal role in shaping the Indian gaming landscape. As one of the few publicly listed gaming companies in the country, it has diversified its offerings across esports, interactive gaming, and learning apps for children, positioning itself as a multifaceted player.
The Future of Gaming Stocks in India
With the gaming industry’s rapid growth, more Indian companies will likely go public in the coming years. Nazara Technologies is a rare publicly listed gaming stock, but as investor interest grows, it could pave the way for other gaming firms to follow suit.
Conclusion
As India’s gaming market expands, the Kamaths’ early investment in this space could unlock new opportunities. Their diversified investment approach, which includes exposure to the gaming industry, highlights their foresight in identifying sectors that will drive India’s consumption story forward.
Their involvement in the gaming industry through Nazara Technologies is another example of their forward-thinking investment philosophy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQ
Who are the Kamath brothers, and what is their connection to Nazara Tech?
The Kamath brothers, Nithin and Nikhil, are the founders and co-CEOs of Zerodha, India’s largest discount brokerage firm. They have recently invested an undisclosed amount in Nazara Tech, a leading Indian mobile gaming company. This strategic investment marks the Kamath brothers’ entry into the growing Indian gaming industry, estimated to be worth ₹66,000 crore by 2028.
Why are the Kamath brothers investing in Nazara Tech?
Several factors drive the Kamath brothers’ investment in Nazara Tech. Firstly, they see significant growth potential in the Indian gaming industry, fueled by increasing smartphone penetration, rising internet usage, and a growing young population. Secondly, Nazara Tech has a strong track record of developing and publishing successful mobile games, and the Kamath brothers believe that their expertise in technology and finance can help the company scale even further.
What is Nazara Tech’s business model?
Nazara Tech operates a multifaceted business model that includes game development, publishing, distribution, and advertising. The company develops a wide range of mobile games across various genres, including casual, sports, and skill-based games. It also publishes games developed by other studios and distributes them through its own platform and third-party app stores. Additionally, the company generates revenue through in-app advertising and other monetization channels.
This week, the Indian IPO market is buzzing with excitement as nine IPOs are set to open, raising a combined ₹10,566 crores. Four are mainboard IPOs, while five are SME IPOs.
So far, two mainboard IPOs and one SME IPO have opened for subscription and are generating significant interest. Waaree Energies, for example, was subscribed 4.2 times on its second day of bidding. With so many IPOs in the pipeline, investors are closely watching to see which will be the biggest winners.
Ready to know more about these upcoming ipos? Let’s go
On the second day of bidding, Waaree Energies’ initial public offering (IPO) was subscribed to an impressive 4.2 times. Retail individual and non-institutional investors (NIIs) have shown strong interest in the issue, with subscription rates of 3.8 times and 10.40 times, respectively. The qualified institutional buyers (QIBs) segment is also seeing good traction. Source: Economic Times
2. Deepak Builders and Engineering IPO Subscription Status
Deepak Builders IPO received a subscription of 4.12 times on the first day of bidding. Retail investors showed the most interest, with a subscription rate of 6.12 times. Non-institutional investors subscribed 4.26 times, while qualified institutional buyers subscribed 52%. Source: Livemint
3. Godavari Biorefineries Ltd. IPO
Godavari Biorefineries Limited is offering a book-built issue of ₹544.75 crores. The IPO includes a fresh issue of ₹325.00 crores and an OFS(offer for sale) of ₹229.75 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for October 30th. The minimum lot size is 42 shares, requiring a minimum investment of ₹14,784 for retail investors. For HNIs, the minimum lot size investment is ₹206,976 for sNII and ₹1,005,312 for bNII.
Godavari Biorefineries plans to use the IPO proceeds for:
Repayment or prepayment of outstanding borrowings
General corporate purposes
GMPGodavari Biorefineries Ltd IPO
The current grey market premium (GMP) for Godavari Biorefineries is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.
Company Overview
Godavari Biorefineries Limited manufactures ethanol-based chemicals. It operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production. The company’s product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics. The company has three research and development facilities registered with the DSIR and serves customers in over twenty countries.
Financial Strength
Godavari Biorefineries has shown mixed financial performance, with revenue decreasing by 15.92% and profit after tax (PAT) dropping by 37.37% between FY23 and FY24.
SWOT Analysis of Godavari Biorefineries Ltd.
STRENGTHS
WEAKNESSES
Integrated Biorefinery: The company’s integrated biorefinery allows for efficient production and utilization of byproducts.
Diverse Product Portfolio: Godavari Biorefineries offers various ethanol-based chemicals that cater to multiple industries.
Global Presence: The company is present in over 20 countries, indicating strong export markets.
Dependence on Raw Materials: The company’s operations may depend on the availability and cost of raw materials. Price Fluctuations: Fluctuations in the prices of ethanol and other chemicals can impact profitability. Competition: The market for ethanol-based chemicals is competitive, with other players offering similar products.
OPPORTUNITIES
THREATS
Growing Demand for Bio-Based Products: Increasing awareness of sustainability and the need for renewable products can drive demand.
Product Diversification: Godavari Biorefineries can explore opportunities to expand its product range or enter new markets.
Government Incentives: Government policies promoting renewable energy and biofuels can create favorable conditions for the company..
Economic Downturns: A slowdown in the global economy can impact demand for ethanol-based chemicals.
Regulatory Changes: Changes in government regulations related to biofuels or environmental standards can affect operations.
Technological Advancements: New technologies or alternative materials could impact the demand for ethanol-based products.
4. Afcons Infrastructure Ltd. IPO
Afcons Infrastructure Limited is offering a book-built issue of ₹5,430.00 crores. The IPO includes a fresh issue of ₹1,250.00 crores and an offer to sell ₹4,180.00 crores. The shares will be listed on both BSE and NSE, with the allotment expected on October 25th and the listing tentatively set for November 4th. The minimum lot size is 32 shares, requiring a minimum investment of ₹14,816 for retail investors. For HNIs, the minimum lot size investment is ₹207,424 for sNII and ₹1,007,488 for bNII.
Afcons Infrastructure plans to use the IPO proceeds for:
Funding capital expenditure for the purchase of construction equipment
Funding long-term working capital requirements
Prepayment or scheduled repayment of outstanding borrowings
GMP Afcons Infrastructure Ltd IPO
The current grey market premium (GMP) for Afcons Infrastructure is ₹70. This suggests that the company’s shares are trading at a premium of ₹70 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹533, which is 15.12% higher than the IPO price.
Company Overview
Afcons Infrastructure Limited is an infrastructure engineering and construction company that offers services in marine and industrial projects, surface transport projects, urban infrastructure projects, hydro and underground projects, and oil and gas projects. The company has a presence in Asia, Africa, and the Middle East and has completed 76 projects across 15 countries. As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of ₹348.88 billion.
Financial Strength
Afcons Infrastructure has shown steady financial growth, with revenue increasing by 6% and profit after tax (PAT) rising by 9% between FY23 and FY24.
SWOT Analysis of Afcons Infrastructure
STRENGTHS
WEAKNESSES
Diverse Service Offerings: Afcons Infrastructure provides various construction services that cater to various infrastructure projects.
Global Presence: The company operates in multiple countries, indicating a strong market presence.
Order Book: Afcons has a substantial order book, indicating a pipeline of future projects.
Experienced Team: The company likely has a team with extensive experience in the construction industry.
Competition: The construction industry is highly competitive, with numerous players operating
Dependence on Government Projects: The company’s revenue may depend on government contracts and infrastructure projects.
Fluctuations in Material Costs: Changes in the cost of construction materials can impact profitability.
OPPORTUNITIES
THREATS
Infrastructure Development: Government initiatives for infrastructure development can create opportunities for construction companies.
Urbanization and Industrialization: The growing urbanization and industrialization in India and other countries can drive demand for infrastructure projects.
Expansion into New Markets: Afcons Infrastructure can explore opportunities to expand its operations to new regions or diversify into other sectors.
Slowdown in Economy: A sluggish economy can significantly reduce the need for construction services.
Regulatory Changes: Changes in government regulations or policies can affect the construction industry.
Geopolitical Risks: Global political instability or conflicts can disrupt projects or increase costs.
5. Premium Plast IPO Subscription Status:
Premium Plast IPO was oversubscribed by 3.70 times on its first day. Retail individual investors were particularly enthusiastic, subscribing 7.14 times. Non-institutional investors subscribed 0.88 times, and qualified institutional buyers subscribed 1.00 times. Source: IPO Watch
6. Danish Power Ltd IPO
Danish Power Limited is offering a book-built issue of ₹527.60 crores, the biggest SME IPO this year. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 300 shares, requiring a minimum investment of ₹114,000 for retail investors and ₹228,000 for HNIs.
Funding capital expenditure for expanding the manufacturing facility
Funding working capital requirements
Repayment of outstanding borrowings
General corporate purposes
GMP of Danish Power Ltd
The current grey market premium (GMP) for Danish Power is ₹265. This suggests that the company’s shares are trading at a premium of ₹265 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹645, which is 69.74% higher than the IPO price.
Company Overview
Danish Power Limited manufactures various types of transformers, including inverter duty transformers for use in renewable power projects. It also produces oil and dry-type power and distribution transformers, control relay panels, and substation automation services. The company operates two manufacturing plants in Jaipur and is certified with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.
Financial Strength
Danish Power has shown steady financial growth, with revenue increasing to ₹335 crore and profit after tax (PAT) rising to ₹38.07 crore in FY24.
SWOT Analysis of Danish Power Ltd.
STRENGTHS
WEAKNESSES
Product Diversity: Danish Power offers a range of transformers and electrical equipment catering to various industries.
Manufacturing Capabilities: The company has two manufacturing plants and is certified with ISO standards, ensuring quality and efficiency.
Strong Customer Base: Danish Power has a client base that includes reputable companies in the renewable energy and power sectors.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential.
Competition: The transformers and electrical equipment market is competitive, with numerous players offering similar products.
Dependence on Renewable Energy: The company’s revenue may depend on the growth and development of the renewable energy sector.
OPPORTUNITIES
THREATS
Growing Demand for Renewable Energy: The increasing focus on renewable energy can drive demand for transformers and electrical equipment.
Product Innovation: Danish Power can explore opportunities to develop new or innovative products to stay competitive.
Expansion into New Markets: The company can expand its operations to new regions or diversify into other segments of the electrical equipment market.
Recession Risks: A downturn in economic activity may lower the demand for electrical equipment.
Fluctuations in Raw Material Prices: Changes in the cost of raw materials used in transformer manufacturing can affect profitability.
Technological Advancements: New technologies or alternative energy sources could impact the demand for traditional transformers.
7. United Heat Transfer Ltd. IPO
United Heat Transfer Limited offers a book-built issue of ₹118.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 2000 shares, requiring a minimum investment of ₹118,000 for retail investors and ₹236,000 for HNIs.
United Heat Transfer plans to use the IPO proceeds for:
Repayment of debt
Funding working capital requirements
General corporate purposes
GMP of United Heat Transfer Ltd.
The current grey market premium (GMP) for United Heat Transfer is ₹10. This suggests that the company’s shares are trading at a premium of ₹10 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹69, which is 16.95% higher than the IPO price.
Company Overview
United Heat Transfer Limited manufactures heat exchangers, pressure vessels, and process flow skids. Their products are used in various industries, including petrol and diesel engines, maritime vessels, mining trucks, and heavy machinery. The company operates two manufacturing units in Nashik and has approximately 105 employees.
Financial Strength
United Heat Transfer has shown mixed financial performance, with revenue decreasing by 9% and profit after tax (PAT) rising by 195% between FY23 and FY24.
SWOT Analysis of United Heat Transfer Ltd.
STRENGTHS
WEAKNESSES
Product Range: United Heat Transfer offers a diverse range of products that cater to various industries.
Manufacturing Capabilities: The company has modern manufacturing facilities and a skilled workforce.
Customer Base: United Heat Transfer likely has a customer base of reputable industry companies.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its growth potential.
Dependence on Specific Industries: Reliance on industries such as petrol and diesel engines can make the company vulnerable to fluctuations in those sectors.
Competition: The heat exchangers and process equipment market is competitive, with numerous players offering similar products.
OPPORTUNITIES
THREATS
Growing Industrialization: The increasing industrialization in India and other emerging markets can drive demand for the company’s products.
Technological Advancements: New technologies or advancements in heat transfer applications can create growth opportunities.
Product Diversification: United Heat Transfer can explore opportunities to expand its product range or enter new markets.
Impact of Economic Slumps: Economic slowdowns can lead to a drop in industrial machinery purchases.
Rising Material Costs: Increases in the cost of raw materials used in manufacturing can affect profitability.
Regulatory Changes: Changes in government regulations or industry standards can impact the company’s operations.
8. OBSC Perfection Ltd. IPO
OBSC Perfection Limited is offering a book-built issue of ₹120.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 1200 shares, requiring a minimum investment of ₹120,000 for retail investors and ₹240,000 for HNIs.
OBSC Perfection plans to use the IPO proceeds for:
Funding capital expenditure for expanding manufacturing facilities
Funding working capital requirements
General corporate purposes
GMP of OBSC Perfection Ltd.
The current grey market premium (GMP) for OBSC Perfection is ₹0. This suggests that the company’s shares are not trading at a premium in the grey market and are expected to be listed flat at the IPO price.
Company Overview
OBSC Perfection Limited is a precision metal components manufacturer offering various products for various industries. The company operates four manufacturing facilities, three in Pune and one in Chennai. Their products are used in the automotive, defense, marine, and telecom infrastructure sectors.
Financial Strength
OBSC Perfection has shown strong financial growth, with revenue increasing by 20% and profit after tax (PAT) rising by 167% between FY23 and FY24.
SWOT Analysis of OBSC Perfection Ltd.
STRENGTHS
WEAKNESSES
Diverse Product Range: OBSC Perfection offers a wide range of precision metal components, catering to various industries.
Manufacturing Expertise: The company has manufacturing facilities equipped with modern machinery and technology.
Customer Base: OBSC Perfection has a customer base that includes leading manufacturers in the automotive, defense, marine, and telecom sectors.
Geographic Concentration: The company’s operations may be concentrated in a specific region, limiting its potential for growth.
Dependence on Automotive Industry: Reliance on the automotive sector can make the company vulnerable to fluctuations in that industry.
Competition: The market for precision metal components is competitive, with numerous players offering similar products.
OPPORTUNITIES
THREATS
Growing Automotive Industry: The growing automotive industry in India can drive demand for precision metal components.
Diversification into New Sectors: OBSC Perfection can explore opportunities to expand into new sectors or industries.
Product Innovation: The company can develop new or innovative products to differentiate itself from competitors.
Market Slowdown: A weaker economy can directly impact the demand for industrial components.
Rising Material Costs: Increases in the cost of raw materials can affect profitability.
Technological Advancements: New technologies or manufacturing processes could impact the demand for traditional metal components.
9. Usha Financial Services IPO
Usha Financial Services Limited is offering a book-built issue of ₹168.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 25th and the listing tentatively set for October 29th. The minimum lot size is 800 shares, requiring a minimum investment of ₹134,400 for retail investors and ₹268,800 for HNIs.
Usha Financial Services plans to use the IPO proceeds for:
Augmenting the capital base of the company
General corporate purposes
GMPUsha Financial Services IPO
The current grey market premium (GMP) for Usha Financial Services is ₹45. This suggests that the company’s shares are trading at a premium of ₹45 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹213, which is 26.79% higher than the IPO price.
Company Overview
Usha Financial Services Limited is a non-banking finance company that provides lending solutions to other NBFCs, corporates, MSMEs, and individuals, focusing on women entrepreneurs. They also offer electric vehicle financing. The company has an AUM of ₹30,695.76 lakhs and a net worth of ₹10,602.63 lakhs.
Financial Strength
Usha Financial Services has shown steady financial growth, with revenue increasing by 38% and profit after tax (PAT) rising by 32% between FY23 and FY24.
SWOT Analysis of Usha Financial Services
STRENGTHS
WEAKNESSES
Diverse Product Offerings: Usha Financial Services offers a range of financial products, catering to various customer segments.
Focus on Women Entrepreneurs: The company’s focus on lending to women entrepreneurs can differentiate it from competitors.
Financial Performance: Usha Financial Services has demonstrated strong financial growth in recent years.
Dependence on the NBFC Sector: The company’s revenue may be dependent on the performance of other NBFCs.
Competition: The NBFC sector is competitive, with numerous players offering similar financial services.
Regulatory Risks: Changes in government regulations or policies related to the NBFC sector can impact the company’s operations.
OPPORTUNITIES
THREATS
Growing Demand for Financial Services: The increasing demand for financial services, especially in rural and underserved areas, can create growth opportunities.
Digitalization: Leveraging technology and digital platforms can enhance customer experience and efficiency.
Expansion into New Markets: Usha Financial Services can explore opportunities to expand its operations to new regions or diversify into other financial products.
Economic Deceleration: A slowing economy can curb the demand for financial services.
Interest Rate Fluctuations: Changes in interest rates can affect the company’s borrowing costs and profitability.
Credit Risk: The company faces the risk of loan defaults or non-payment from borrowers.
Conclusion:
With nine IPOs in the market this week, investors have a variety of options. The strong subscription for Waaree Energies and Deepak Builders suggests significant investor interest.
However, it’s important to conduct thorough research and consider your risk tolerance before making any investment decisions. The performance of these IPOs in the secondary market will provide valuable insights into the current investor sentiment and the overall health of the Indian IPO market.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
The Asian stock market is experiencing a strong rebound in initial public offerings (IPOs). With economic recovery and previously delayed demand now coming into play, investor interest in new listings is intensifying. This week, 20 companies from the Asia-Pacific region are set to go public, aiming to raise as much as $8.3 billion.
According to Bloomberg, this marks the largest weekly volume since April 2022 as companies accelerate fundraising efforts ahead of the U.S. election. The surge features IPOs from key markets like China, India, and Japan, underscoring the region’s revival in stock offerings. Source: moneycontrol
Global Scenario of IPOs
According to a recent report by GlobalData, a data analytics firm based in London, 822 Initial Public Offerings (IPOs) were projected to raise $65 billion in the first eight months of calendar year 2024 (CY24) up to August. This marks a 17.4 percent increase compared to 2023 when 1,564 listings in the same timeframe aimed to gather $55.4 billion through this method.
High-profile companies from key sectors like technology, finance, and consumer goods are preparing to go public, creating a buzz among investors. The renewed interest in IPOs signals optimism about the region’s economic future, especially in major financial hubs like Hong Kong and Singapore.
Key Factors Driving the Surge in IPOs:
Economic Recovery: As the Asian economies recover from the effects of the pandemic, companies are looking to raise capital through public listings to fuel expansion and innovation.
Improved Market Conditions: Favorable stock market conditions and investor sentiment have contributed to the rise in IPO activity, with investors eager to participate in growth stories.
Delayed Demand: Many companies had delayed their IPOs during the economic uncertainty, and now, with more stability, they are pushing forward with their listing plans.
Before most Asian markets opened on Monday, futures prices presented a mixed outlook. While contracts for major indexes showed gains, futures linked to Hong Kong’s Hang Seng Index indicated a slight decline.
Hyundai Motors: The stakes are high in India, with Hyundai Motor India Ltd.’s $3.3 billion IPO, the largest in the country’s history, set for its trading debut on Tuesday. The offering was oversubscribed by more than twice on the final day, though it saw limited interest from smaller investors.
With Hyundai’s IPO proceeds, Indian IPOs have raised over $12 billion this year, surpassing the totals of the last two years but still falling short of the record $17.8 billion raised in 2021, according to Bloomberg data. Upcoming debuts include Swiggy Ltd., a food delivery company, and the renewable energy division of state-run power producer NTPC Ltd.
China Resources Beverage: As reported by sources, the company is raising about $649 million and closed its order books earlier than expected due to strong demand.
Horizon Robotics’ IPO: The company’s IPO, which is worth up to $696 million, has attracted major investors like Alibaba Group and Baidu Inc., who have committed to holding their shares for at least six months.
Tokyo Metro Co: The Japanese company plans to launch its $2.3 billion listing on October 23. This IPO will be the largest in the country since 2018 and arrives during a challenging time for Japanese markets. The yen has recently fallen below 150 per dollar, and the recent appointment of a new prime minister has sparked speculation regarding future policies.
Rigaku Holdings Corp: This Japanese X-ray technology firm will conclude the week with its shares debuting after completing a deal worth approximately $750 million. The company’s stock will begin trading on Friday. Source: moneycontrol
Challenges and Risks
Despite the optimism, the surge in IPO activity is not without risks. Companies must navigate a complex regulatory environment, and there is always the potential for market volatility. Additionally, the success of these IPOs will depend on investor appetite and broader economic conditions.
Potential Challenges:
Market Volatility: Global market fluctuations could impact investor confidence and demand for new listings.
Regulatory Hurdles: Each country has its own regulations for public listings, which companies must comply with to avoid delays or complications.
Valuation Pressures: With many IPOs hitting the market simultaneously, valuations may be subject to increased scrutiny, and investors may become more selective.
Comparison to 2022
This week’s expected volume of IPOs is reminiscent of the boom seen in 2022. However, there are some key differences between the two periods:
Economic Environment: In 2022, the global economy was still grappling with the effects of the pandemic, leading to a cautious approach by investors. In contrast, 2024 sees a more stable economic environment, with companies eager to capitalize on growth opportunities.
Sector Diversity: While 2022 saw a concentration of IPOs in the tech sector, this year’s offerings are more diverse, with significant activity in fintech, consumer goods, and healthcare.
Valuation Trends: Valuations in 2022 were more conservative, as investors remained wary of overpaying in an uncertain market. In 2024, companies are achieving higher valuations due to improved market sentiment and stronger financial performances.
What This Means for Investors
This wave of IPOs represents a significant opportunity for investors. IPOs often provide early access to companies with high growth potential, allowing investors to participate in their success from the beginning. However, it’s crucial for investors to carefully evaluate each offering, considering factors such as the company’s financial health, growth prospects, and market conditions.
Tips for Investors:
Conduct Thorough Research: Before investing in any IPO, it’s essential to thoroughly research the company’s financials, business model, and competitive landscape.
Consider Long-Term Potential: IPOs can be volatile in the short term, so it’s important to consider the company’s long-term growth potential rather than just short-term gains.
Diversify Investments: While IPOs can offer high returns, they also come with risks. Diversifying your portfolio can help mitigate potential losses.
Conclusion
The blockbuster week for Asian IPOs is set to be the biggest since 2022, signaling a strong recovery in the region’s markets. With a diverse range of companies from various sectors preparing to go public, investors have a unique opportunity to participate in the growth of Asia’s dynamic economy. However, it’s essential to remain cautious and do thorough research before jumping into the IPO frenzy, as market volatility and other risks still exist.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is driving the surge in Asian IPOs?
Several factors are contributing to the current boom in Asian IPOs. First, the region’s economies are experiencing robust growth fueled by increased consumer spending, rising exports, and positive government measures. This economic vitality is creating a favorable environment for businesses to expand and seek capital through IPOs. Second, the overall stock market sentiment is positive, with major indices reaching new highs. This rising market confidence encourages companies to go public and attract investor interest.
Which sectors are leading the IPO boom?
The Asian IPO market is witnessing diverse sectors participating in the boom. However, some sectors are particularly prominent, driven by their strong growth potential and investor demand. Technology companies, including e-commerce platforms, fintech firms, and artificial intelligence startups, are leading the charge. The healthcare sector, focusing on pharmaceutical companies, biotechnology firms, and medical device manufacturers, is also experiencing significant IPO activity.
What are the risks and challenges associated with investing in Asian IPOs?
While the Asian IPO market presents exciting opportunities, it’s essential to be aware of the potential risks and challenges involved. One of the key risks is market volatility. The stock market can be unpredictable, and IPOs are often subject to more significant price fluctuations than established companies. Additionally, the regulatory environment in some Asian countries may be less mature or subject to changes, which can impact the investment landscape. Currency fluctuations can also pose risks for foreign investors, as changes in exchange rates can affect the value of their investments.
Have you noticed the recent surge in Central Public Sector Enterprises (CPSEs)? It’s no coincidence that the Nifty CPSE Index, a barometer of these state-owned entities, has been outperforming the broader stock market. With the government’s focus on strengthening its public sector and the growing energy demand, these stocks have become a hot commodity among investors.
Let’s examine the factors driving this rally more closely and explore whether there’s steam left in the CPSE stocks.
A Year of Stellar Returns for the Nifty CPSE Index
Over the past year, the Nifty CPSE Index has surged by a remarkable 80%, far outpacing the Nifty 50’s 27% gains. This impressive performance is largely attributed to the robust growth in the power sector, which constitutes nearly half of the CPSE Index.
Despite concerns about the power sector’s near-term prospects, the government’s ambitious National Electric Plan, involving a massive investment of 9.15 lakh crore, has ignited investor enthusiasm. This plan aims to bolster India’s power infrastructure and enhance energy security.
The Energy Surge
Since the March 2020 lows, when the Nifty CPSE Index was at around 1,100, it has skyrocketed to over 7,600, delivering a staggering 575% return. In comparison, the Nifty 50 has gained 250% during the same period. This surge in CPSE valuations reflects growing confidence among investors in these state-owned enterprises, which were once overlooked and undervalued.
The Nifty CPSE Index comprises 11 stocks, with the power sector dominating at 46.48%. The oil and gas sector follows closely with 36.11%, capital goods at 15.72%, and construction contributes 1.7%. Among the major contributors, NTPC leads with a weightage of 20.37%, followed by Power Grid Corporation of India at 19.44%. Other key players include Oil and Natural Gas Corporation (ONGC) at 15.86%, Coal India at 15.9%, and Bharat Electronics Limited (BEL) at 14.01%.
A closer examination reveals that the energy sector has been the backbone of the Nifty CPSE Index’s growth. The Nifty Energy Index has posted a robust 360% return since March 2020, a performance mirrored by the CPSE Index, which has 82.59% exposure to the energy sector. Energy stocks have been instrumental in driving the index’s rise.
Key factors behind the energy sector’s strong performance
1. Increased demand for electricity: As India’s economy expands, the demand for power has risen, benefiting power-generation companies like NTPC and Power Grid Corporation.
2. Government support: The Indian government has provided incentives and investments in renewable energy and infrastructure, supporting the sector’s growth.
3. Rising fuel prices: Higher global fuel prices have boosted the profitability of upstream companies such as ONGC and Oil India, included in the Nifty CPSE Index.
The Road Ahead for Nifty CPSE Index
Despite its strong performance, many question whether the Nifty CPSE Index can sustain its current rally. From 2014 to late 2020, the CPSE Index underperformed compared to the Nifty 50. During that period, while the Nifty 50 posted a return of 110%, the CPSE Index lagged. However, this trend reversed in late 2020 as investor sentiment shifted towards public sector enterprises, leading the CPSE Index to outperform the Nifty 50 consistently.
Recently, the CPSE Index has seen a 10% correction from its all-time high of 7,660, finding support at the 6,600 level. Technical analysis of the CPSE Index relative to the Nifty 50 suggests the uptrend remains intact. Should the ratio chart between the two indices fall into negative territory, it could signal a potential reversal in the CPSE Index’s outperformance. However, current indicators suggest this scenario is less likely.
Energy Sector’s Critical Role
Given the significant weight of the energy sector in the Nifty CPSE Index, the performance of the Nifty Energy Index is a crucial element to watch. The Nifty Energy Index consists of key CPSEs, including NTPC and Power Grid Corporation, which account for 26.29% of the total weightage. These companies are also the largest contributors to the Nifty CPSE Index.
In addition, ONGC and Coal India contribute another 16.44% to the Nifty Energy Index. Together, NTPC, Power Grid, ONGC, and Coal India are pivotal in driving the Nifty Energy Index and the broader Nifty CPSE Index.
From a technical perspective, the point-and-figure chart for the Nifty Energy Index remains bullish over the long term, with an open anchor column target of 62,000, indicating significant upside potential. A key support level for the Nifty Energy Index is located at 37,000. If the index breaks below this level, it could signal a bearish trend. However, as long as it stays above 37,000, the outlook remains positive, and the target of 62,000 remains achievable. Source: The Economic Times
7 Key Takeaways from Nifty CPSE Index
1. Nifty CPSE Index’s Strong Performance: The index has surged 575% since March 2020, well ahead of the Nifty 50’s 250% gain during the same period.
2. Energy Sector Dominance: The energy sector constitutes 82.59% of the CPSE Index, with power companies like NTPC and Power Grid leading the charge.
3. Top Contributors: NTPC (20.37%), Power Grid (19.44%), ONGC (15.86%), Coal India (15.9%), and BEL (14.01%) are the largest holdings in the index.
4. Government’s Role: Government support, including the ₹9.15 lakh crore investment under the National Electric Plan, has bolstered the sector’s growth.
5. Energy Sector Growth: The Nifty Energy Index has risen 360% since March 2020, driving much of the CPSE Index’s performance.
6. Recent Correction: The CPSE Index has corrected 10% from its peak of 7,660 but remains supported at 6,600, indicating the uptrend is intact.
7. Future Outlook: With technical indicators pointing toward continued bullish momentum, the energy sector, particularly NTPC, Power Grid, ONGC, and Coal India, remains a key driver of future growth.
Conclusion
The Nifty CPSE Index, driven primarily by power and energy stocks, has been on a strong upward trajectory. While there may be some short-term fluctuations, the long-term outlook remains bullish, especially with the continued support from the government and rising energy demand. Investors should keep a close watch on key technical levels and market trends to gauge the sustainability of this rally.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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What is an Investment Advisory Firm?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Do we have SEBI registration as an Investment Advisory?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Why choose a SEBI Registered Investment Advisor?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
What is the Role of an Investment/Stock Market Advisory Firm in India?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Is investment advisory the same as wealth management?
