(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
- Vishal Mega IPO debut
- IPO market breaks record
- Seasonal cheer for hotels
Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Nifty futures point to more declines even as most Asian markets are trading higher this morning. With foreign funds turning net sellers again, local traders are cautious. Yet, the weakness in frontline shares does not appear to have spilled over to the primary market, which is set to see the last of the year's major IPOs debut today.
Brick-and-mortar bet: Vishal Mega IPO in spotlight
Shares of Vishal Mega Mart are set to debut today, marking the last major IPO listing of the year in India. Investors will closely watch the retailer’s debut, as it has chosen to stick to its brick-and-mortar retailing model while steering clear of quick commerce — a strategy that has cost sector leader DMart dearly. Despite this, trends in the unofficial grey market suggest that Vishal’s shares could list at a 10-20% premium.
IPO boom eyes new glory in 2024
2024 is set to be a record-breaking year for IPOs in India, with funds raised via new listings expected to top the previous peak of $18 billion. Global interest continues to fuel bigger share sales, with Bloomberg reporting that LG Electronics is seeking $15 billion for its Indian unit. If successful, this would make LG the largest listed household appliance maker in the country. IPOs have also proven to be significant wealth generators, with firms that listed over last the five years now accounting for a combined market value of $575 billion, representing over 10% of India’s total market capitalization, according to IIFL Securities.
Coldplay’s tour, wedding rush to buoy hospitality sector
After a soft first half of the fiscal year, the hotel industry is set for a strong showing in the traditionally strong December quarter, driven by an increase in corporate meetings, conferences and exhibitions. According to Motilal Oswal, the quarter will also see a 33% rise wedding ‘muhurats’ compared to last year, providing a further boost to hotels’ topline. Additionally, big bang events like British band Coldplay’s India tour and Punjabi singer Diljit’s concerts are expected to contribute to the industry’s growth.
Analysts actions:
- Cipla Raised to Buy at Kotak Securities; PT 1,725 rupees
- Piramal Pharma Rated New Buy at JM Financial; PT 340 rupees
- Delhivery Rated New Buy at Equirus Securities Pvt Ltd
Three great reads from Bloomberg today:
- Honda, Nissan exploring a potential merger to take on Toyota
- Big Take: Elliott exodus throws spotlight on billionaire’s succession plan
- Why India’s food is the best in the world: Tyler Cowen
And, finally..
The secondary-sales market is running hot in India, with companies offloading a record-breaking $16 billion of shares to large investors in 2024. So strong is the demand is that that three firms, including condom maker Mankind Pharma Ltd., launched secondary share sales to raise over $400 million on Monday. JM Financial Institutional sees fundraising via this route totaling $25 billion next year, as firms use the funds to repay debt and to meet capital expenditure.
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--With assistance from Kartik Goyal.
©2024 Bloomberg L.P.