Realty firm Signature Global raised Rs 318.5 crore from anchor investors prior to it’s initial public offer (IPO) launch. The company said in it’s regulatory filing that anchor investors including Nomura have subscribed to 82,72,700 equity shares at Rs 385 per share. Nomura Trust and Banking Co Ltd purchased the maximum number of shares at 18,70,094 shares, the company informed. Other major investors in the company include Kotak Mahindra Trustee Co Ltd, Kotak India EQ Contra Fund, Quant Mutual Fund, Nippon India Equity Opportunities AIF, Bandhan Core Equity Fund, Morgan Stanley Asia, Societe Generale, BNP Paribas Arbitrage and Goldman Sachs Singapore. The company’s IPO will launch on September 20 at a price band of Rs 366-385 per share.
Background
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The two key equity benchmarks, Sensex and Nifty, on Monday, ended their winning run after opening in red and spent the trading day trying to narrow the losses. The S&P BSE Sensex opened over 200 points lower to Friday’s close. The index closed trading even lower at a loss of 241 points and stood at 67,596.84. On the other hand, the Nifty50 settled almost 60 points lower at 20,133.30.
On the 30-share Sensex platform, Power Grid Corporation, Titan, M&M, and NTPC emerged as major gainers. On the downside, Bharti Airtel, HDFC Bank, Reliance Industries, and Infosys were among the losers.
Global oil benchmark Brent crude climbed to settle at $93.43 a barrel. Meanwhile, the rupee fell 13 paise to settle at 83.29 against the US dollar on Monday, amidst a risk aversion in global markets and surging crude prices. Additionally, a downward trend in domestic equities and the strong American currency weighed on investor sentiments, stated forex traders. The domestic unit opened at 83.09 against the dollar and traded in the day in the range of 83.09 to 83.30 against the dollar. It finally closed at a record low of 83.29 against the dollar, registering a fall of 13 paise from its previous close.
Here are some important factors that can impact the market on September 19.
Monetary Policy
The domestic markets will remain closed on Tuesday on account of the Ganesh Chaturthi festival. However, global markets will remain keenly focused on the US Fed’s meeting scheduled today. Fed policymakers are scheduled to meet for the latest Federal Open Market Committee (FMOC) on Tuesday and their call on interest rates will be announced on Wednesday. The two-day meeting will be chaired by Federal Reserve Chief Jerome Powerll. Additionally, the Bank of England will also disclose it’s interest rate decision on Thursday, and the Bank of Japan will reveal it’s call on the same on Friday.
Other major macroeconomic data to be revealed over the week includes housing data to be announced by the US on Tuesday, and initial jobless numbers for the week ended September 16 to be disclosed on Thursday. The Fed will also hold a press conference on Thursday. Notably, the CPI gained in July by 3.2 per cent, on a year-on-year (YoY) basis. This was the first time in more than a year that the CPI registered an upward trajectory.
Further, the Eurozone is scheduled to come out with it’s inflation data for August on Tuesday and other data including the current account for July on Tuesday, and composite purchasing managers’ index (PMI) flash for September on Friday. In addition to the interest rate decision to be revealed by the Bank of Japan on Friday, Japan is expected to announce it’s balance of trade and inflation data for August, and it’s composite PMI Flash for September along with some other data in the week. The United Kingdom will reveal it’s interest rate call on Thursday, along with inflation data for August on Wednesday. It will also announce it’s retail sales data for August along with manufacturing, services, and composite pmi flash data for September towards the end of the week.
IIPOs Awaited
The market will see some action with mainboard IPOs scheduled in the week. Sai Silks, the Hyderabad-based saree retailer, will open it’s initial public offering (IPO) for subscription on September 20. It will be available at a price band of Rs 210-222 per share, and investors can place a bid for a minimum of 67 shares in one lot. Real estate firm Signature Global will start accepting bids for it’s IPO on September 20. The IPO will be priced in the range of Rs 366-385 per share. The IPO includes a fresh issue of shares worth Rs 603 crore and shares worth Rs 127 crore offered by the company’s existing shareholder, International Finance Corporation.