Nifty 50 31 Jul 2026 Morning Market Summary

About the Company

Fusion Micro Finance Ltd (FMFL), founded in 1994, provides financial services to women entrepreneurs from economically and socially disadvantaged backgrounds. Its network and services have increased access to formal credit (loans) at low-interest rates, ultimately improving the lives of people in rural India. FMFL provides financial assistance as well as financial literacy classes.

FMFL operates on a joint liability group-lending concept, in which a small group of women (5-7 members) guarantees each other's loans. The firm has largely focused on strategic regional diversification with a rural emphasis, embracing technology for development, nurturing and developing staff, and risk management.

Fusion Micro Finance Limited IPO

IPO DateNov 2, 2022 to Nov 4, 2022Listing Date[.]Face Value₹10 per sharePrice₹350 to ₹368 per shareLot Size40 SharesIssue Size[.] shares of ₹10(aggregating up to ₹1,103.99 Cr)Fresh Issue[.] shares of ₹10(aggregating up to ₹600.00 Cr)Offer for Sale13,695,466 shares of ₹10(aggregating up to ₹[.] Cr)Issue TypeBook Built Issue IPOListing AtBSE, NSEQIB Shares OfferedNot more than 50% of the Net OfferNII (HNI) Shares OfferedNot less than 15% of the Net OfferRetail Shares OfferedNot less than 35% of the OfferCompany PromotersThe promoters of the Company, namely, Devesh Sachdev, Creation Investments Fusion, LLC, Creation Investments Fusion II, LLC and Honey Rose Investment Ltd

600 crore fresh equity shares will be issued in Fusion Microfinance IPO. Apart from these, an offer for sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders is included. Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd., Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society U.A., and the Global Financial Inclusion Fund.

Objects of the Fusion Micro Finance Limited IPO

The issue comprises OFS and Fresh Issue. Net Proceeds from Fresh Issues will be used to Augment the capital base of the Company.

Fusion Micro Finance Limited IPO financials

• The company's revenue increased at a 16.92% CAGR from Rs.720 Cr in FY20 to Rs.1151 Cr in FY22.
• Profit after tax fell from Rs.69.61 Cr in FY20 to Rs.21.76 Cr in FY22, owing mostly to an increase in the impairment cost on financial assets.
• The operating margin fell to 4.7% in the previous fiscal year from 19.7% in FY20.
• As of June 30, 2022, the company's Gross GNPA was 3.67%, while its Net NPA was 1.35%.

Competitive Strengths

• Broad and Diversified Pan-India Presence.
• Proven execution skills with a strong rural focus.
• Access to Diversified Capital Sources and Effective Asset Liability Management
• Proven execution skills with a strong rural emphasis.
• Access to diverse financing sources and effective asset liability management
• Strong underwriting and risk management policies.
• A cutting-edge technological operating model.
• Stable and experienced management team backed by prominent investors.

Risk Factors

1) In the previous three years, company margins have been declining. Profits in FY20 were Rs 69.6 crores, compared to Rs 21.8 crores in FY22. Despite a rise in revenues, a decline in margins is a major issue.2) OFS receives Rs 504 crores from the total IPO proceeds, while the firm receives nothing.3) A Covid epidemic has previously harmed the industry. Such pandemics are unpredictable and may have an influence in the future.4) An increase in NPAs might have an impact on the firm.5) The microfinance business in India confronts specific risks owing to the borrowers it serves, which are not often connected with other types of lending.

Outlook & Valuation

The microfinance industry has recorded healthy growth in the past few years, with microfinance lenders emerging in good numbers. Fusion Micro Finance is one such company that is among the top 10 NBFCMFIs in India. It offers loans to women entrepreneurs. Its business runs on a joint liability group-lending model, wherein a small number of women form a group and guarantee one another’s loans. The company works with a strong focus on rural areas and has a well-diversified and extensive pan-India presence. The company also has access to diversified and recognized sources of capital and has a good financial track record. Although this company's margins are now in declining mode and it is facing risk due to the category of borrowers it serves, an increase in the level of NPAs could also be a concern for the company. Secondly, the company demands a price-book (P/B) multiple of 1.8 on a post-IPO basis, whereas its peers like credit access command a P/B of 3.3. Thus, considering all the factors, we recommend a Subscribe rating for this issue, but only for high-risk investors with a long-term view.

GMP

According to market watchers, the shares of Fusion Microfinance are trading at a premium (GMP) of ₹24 in the gray market today. The company's shares are expected to be listed on the stock exchanges BSE and NSE on Tuesday, November 15, 2022. The allotment of shares is expected on 10 November 2022. The company has said in its draft paper that it wants to use the capital received from this issue to increase its base.

पिछले सप्ताह सोने की कीमतों में 1 प्रतिशत की बढ़त दर्ज की गई है जबकि चांदी के भाव सपाट रहे है। अमेरिकी डॉलर इंडेक्स में छोटी अवधि में हो रही गिरावट पिछले सप्ताह में थमती नज़र आई जिसके कारण कीमती धातुओं में तेज़ी सीमित रही। अमेरिका से जारी होने वाले बेरोज़गारी के दावे और रिटेल सेल्स के बेहतर आकड़ो के रहते चांदी के भाव में दबाव बना हालांकि, सोने के भाव में तेज़ी रही। अमेरिकी फ़ेडरल रिज़र्व के अधिकारियों द्वारा ब्याज दर पर आक्रामक बयान से कीमती धातुओं में मुनाफा वसूली हावी होती नज़र आई। फेड अधिकारियों ने संकेत दिए है की ब्याज दर वृद्धि की गति धीरे हो सकती है लेकिन ब्याज दर बढ़ोतरी होती रहेगी। जिससे अमेरिकी बेंचमार्क ट्रेज़री यील्ड में निचले स्तरों से सुधार रहा और अमेरिकी डॉलर इंडेक्स की गिरावट थमती नज़र आई। मजबूत रिटेल सेल्स के आकड़ो से सम्भावना है की अमेरिकी मुद्रास्फीति अपने उच्च स्तरों पर बनी रह सकती है इसलिए सेंट लुईस फेड प्रेसिडेंट बुलार्ड द्वारा 150 आधार अंको से ब्याज दर बढ़ोतरी करने की आवश्यकता जताई है। हालांकि, चीन कोवीड ऑउटब्रेक के कारण अपने सात महीनो के सबसे बुरे दौर से गुजर रहा है। यहां लॉकडाउन उपायों के कारण आर्थिक गतिविधियों में और ठंडक रहने की सम्भावना है। रूस -यूक्रेन युद्ध बढ़ने की आशंका और धीमे आर्थिक विकास से कीमती धातुओं के भाव को सपोर्ट मिला हुआ है।

तकनीकी विश्लेषण

इस सप्ताह फेड की बैठक के मिनट्स जारी होंगे जिससे कीमती धातुओं में मुनाफ़ा वसूली देखने को मिल सकती है। दिसम्बर वायदा सोने की कीमतों में 52000 रुपये पर सपोर्ट है और 53700 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 60000 रुपये पर सपोर्ट और 63500 रुपये पर प्रतिरोध है।

About the Company

Global Health Limited is one of the major private multi-specialty tertiary care providers in India's North and East. Cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopedics, liver transplant, and kidney and urology are among the company's major specialties.

Global Health Limited now operates four hospitals under the "Medanta" name (Gurugram, Indore, Ranchi, and Lucknow). The Medanta Institutional Tissue Repository was created in 2017 to encourage biomarker and other tissue-based research.

Global Health IPO Details

IPO DateNov 3, 2022 to Nov 7, 2022Listing Date[.]Face Value₹2 per sharePrice₹319 to ₹336 per shareLot Size44 SharesIssue Size[.] shares of ₹2(aggregating up to ₹2,205.57 Cr)Fresh Issue[.] shares of ₹2(aggregating up to ₹500.00 Cr)Offer for Sale50,761,000 shares of ₹2(aggregating up to ₹1,705.57 Cr)Issue TypeBook Built Issue IPOListing AtBSE, NSEQIB Shares OfferedNot more than 50% of the OfferNII (HNI) Shares OfferedNot less than 15% of the OfferRetail Shares OfferedNot less than 35% of the OfferCompany PromotersDr. Naresh Trehan is the company promoter.

The IPO of Global Health Limited, a company that operates and manages hospitals under the Medanta brand, is scheduled to open for subscription on November 3. According to the Red Herring Prospectus (RHP), investors can invest in this IPO till November 7. According to merchant banking sources, the size of the IPO could be around Rs 2,200 crore. Under the IPO, fresh equity shares of Rs 500 crore will be issued. In addition, 5.08 crore equity shares will be sold by the promoters of the company under offer-for-sale (OFS).

As a part of the OFS, Anant Investments, private equity major Carlyle Group and Sunil Sachdeva (jointly with Suman Sachdeva) will sell the shares. At present, Anant Investments holds a 25.64 percent stake in Global Health and Sachdeva holds 13.41 percent in the company. The funds received under this IPO will be used for the repayment of loans and for general corporate purposes.

Objective

The net proceeds of the new issuance will be used to repay debt, finance capital expenditure, fund the future acquisition of subsidiary Bio needs India, fund working capital requirements, and for general corporate purposes.

Competitive Strengths

1. Global Health Limited is the country's major provider of tertiary and quaternary health care. They also have clinical skill in addressing crucial cases that is well-known.
2. Global Health Limited has world-class facilities with cutting-edge infrastructure, medical equipment, and technology based on the most recent breakthroughs.
3. India's leading tertiary and quaternary care provider, renowned for clinical skill, particularly in dealing with complex cases.
4. Concentrate on clinical research and academia.
5. Large-scale hospitals with world-class infrastructure, cutting-edge medical technology, and medical equipment.
6. Proven track record of excellent operational and financial success.
7. Concentrate on underserved areas with dense populations, as well as the presence in major or capital cities of big states (NCR, Lucknow and Patna).
8. Opportunities for expansion in current facilities and diversification into new services, such as digital health.
9. Skilled senior management with significant institutional shareholder backing.

Risks

1. The firm's revenue is concentrated in the country's north and east, and any substantial change in geographic or economic conditions at these rates would have a direct impact on the company.
2. The firm is also vulnerable to the inherent risks of being in the healthcare industry, as well as any legal threats.
3. The company's total income, earnings per share ("EPS"), net asset value ("NAV"), return on net worth ("RoNW"), net profit margin, and return on capital employed ("RoCE") may be lower than those of some of the listed comparable industry peers, as may its price-to-earnings ("P/E") ratio, enterprise value ("EV") to EBITDA ratio, and market capitalization to total income ratio.
4. Its subsidiaries, MHPL and GHPPL, have suffered losses in the previous fiscal years.
5. Currently operates just five hospitals and six multispecialty clinics, which account for nearly all of its income. Inability to attract/retain physicians, nurses, and other healthcare personnel.

Global Health Financials

Over the fiscal years 2017-22, the Indian healthcare delivery industry is expected to develop at a 10-12% CAGR to a value of roughly Rs. 5 lakh crore. Furthermore, with strong sector macros such as lower hospital bed density in relation to population, lower expenditure on healthcare infrastructure as compared to developed and several developing countries, rising income levels & increasing affordability for healthcare services, and the government's Ayushman Bharat scheme, the healthcare delivery market is expected to grow at a 13-14% CAGR over FY22-26E to reach Rs. 8.3 lakh cr.

Outlook & Valuation

With long-term structural factors supporting growth, renewed impetus from PMJAY, and the government's focus shifting onto the healthcare sector, the healthcare delivery market is expected to grow at 13–15%. GHL is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India and operating under the most popular healthcare brand Medanta. It has generated strong revenue growth in the last 3 years, with a minor setback in FY21. Coming to the offer, the major proportion in this issue is the offer for sale, which could be a limiting factor in this issue. The promoter shareholding would come down to 33% post-IPO, which is another concern; nevertheless, the issuer has good patient volumes and cost efficiency, and its financial profile also shows an increasing trend. Finally, the issue is fairly priced at a P/E of 43 as compared to the average industry P/E of 51.93. Thus, we recommend a Subscribe rating for the long term.

GMP

According to IPO Watch, the grey market premium (GMP) for the Global Health IPO is now rs 25 per share. This suggests that the stock will most likely be offered at 361, a 7.44% premium to the IPO price.

Listing Date

The company's shares will be distributed to winning bidders on November 11, and refunds will be issued on November 14. Shares will be credited to the successful bidders' Demat accounts by 15 November, and the stock will begin trading on the stock markets on 16 November.

About the Company

Bikaji Foods International Limited is a leading fast-moving consumer goods ("FMCG") brand in India. The product range consists of six major categories: bhujia, namkeen, packaged sweets, papad, western snacks, and other snacks, which principally comprise gift packs (assortment), frozen food, mathri range, and cookies. They sold over 250 items under the Bikaji brand in the six months ending September 30, 2021. Shiv Ratan Agarwal, Deepak Agarwal, Shiv Ratan Agarwal (HUF), and Deepak Agarwal are the company's promoters (HUF). The category allocation for qualifying institutional buyers is 50.0%, 15.0% for non-individual investors or high net worth individuals, and 35.0% for retail investors.

Bikaji Foods International Limited IPO

Opening Date03, November 2022Closing Date07, November 2022Refund Initiation14, November 2022Listing Date16, November 2022Face Value₹1 per equity share IPO Price Band₹285 to ₹300 per equity share Minimum Order Quantity50 Shares Issue Size₹881.22 Cr

On Thursday, Bikaji Foods launched an initial public offering (IPO) to obtain funds up to Rs 881 crore. The IPO Bikaji is purely an offer for sale (OFS) by existing shareholders, which means the company would get no proceeds from the transaction. Fresh shares will not be issued in this.

For three trading days till November 7, Bikaji Foods shares will be available for bidding between 10 a.m. and 5 p.m. The IPO consists of an offer for sale (OFS) of approximately 2.94 crore equity shares by promoters and existing shareholders. Bikaji Foods raised 262.11 crores from 36 anchor investors ahead of its IPO on November 2.

Bikaji Foods said in a BSE filing that it has finalized the allocation of 87.37 lakh equity shares to anchor investors after consulting with merchant bankers. These shares were offered to anchor investors for $300 each.

Objective of the Issue

Receive the advantages of listing equity shares on stock exchanges.

Bikaji expects the listing to enhance company exposure and brand image while also offering a public market for equity shares in India.

Financials

Bikaji's revenue from operations grew 22.90% to Rs. 1610.96 crore for fiscal 2022 against Rs. 1310.75 crore for fiscal 2021, primarily due to increase in the sale of food products, and an increase in volume and realization of products, in particular, bhujia, Namkeen, papad, western snacks, and packaged sweets, while its net profits stood at Rs 76.03 crore in FY22. For the three months ending June 30, 2022, revenue from operations stood at Rs 419.16 crore and net profit was Rs 15.70 crore.

Strengths

• Bikaji is a well-known pan-India brand that focuses on a varied variety of quality goods, authentic ethnic Indian flavor, creative packaging, and smart pricing strategies that cover all important price points.
• The firm offers a diverse product range targeted at various consumer categories and marketplaces, with over 300 products now available.
• It has a large distribution network in India, with 6 depots, 38 super stockists, and 416 direct and 1,956 indirect distributors.
• BFIL has seven functioning production plants, including four in Bikaner (Rajasthan), one in Guwahati (Assam), one in Tumakuru (Karnataka), and one in Muzaffarpur (Bihar).
• Experienced and well-qualified promoters and senior management team with a proven track record of Consistent financial performance

Risks

• The Company will not receive any proceeds from the Offer
• Investment in unsecured debt instruments.
• Major reliance on revenue from the sale of its bhujia and family pack stock-keeping units.
• Inadequate or interrupted supply, as well as price fluctuations in raw materials and packaging materials, might have a negative impact on the business.
• Inability to sustain or grow the popularity of its "Bikaji" brand.

Outlook & Valuation

Due to shifting lifestyles, rising incomes, and urbanization, India's packaged food industry has experienced tremendous growth over the past five years. Currently, pan-Indian demand for regional snacks is booming. Bikaji is a popular brand in this segment and is among the top three Indian ethnic snack manufacturers in India with a pan-India presence. The company has a strong management team and a significant percentage of promoter holdings. It generated strong revenue growth in the last 3 years where revenue improved from Rs. 1082.9 crores in FY2020 to Rs. 1621.45 crores in FY2022. However, the company's margins are on the declining side and a P/E valuation of 95.2 looks expensive. Finally, this issue is a complete offer for sale, and thus we recommend a Subscribe rating, but only for high-risk investors.

Listing Dates

The company will finalize the IPO share allotment on November 11 and refunds will be credited to the bank accounts of unsuccessful investors by November 11. The IPO shares will be transferred to Demat accounts of eligible investors by November 14. Bikaji Foods will make its debut on the BSE and National Stock Exchange on November 16.

Introduction

Credit Suisse, one of the oldest and most significant banksin the world, has experienced substantial challenges recently. As of mid-2024,the bank's share price has significantly declined, with a drop of around 70%since the beginning of 2023. Over the last three quarters, Credit Suisse hasreported losses amounting to approximately 5 billion Swiss francs ($5.6billion), and its borrowing costs have increased due to multiple ratingdowngrades. The cost of insuring its debt has also soared to the highest levelin 16 years, surpassing levels seen during the 2008 global financial crisis.

Reasons for Its Crisis

Credit Suisse is under increased scrutiny due to a series oflosses, poor risk management, and changes in its senior leadership.

Low Deal-Making Fees

Over the past two years, Credit Suisse has faced numerouscrises and continues to strategize for recovery. The bank made $2 billion inthe first nine months of 2023, a 52% decrease from the same period in theprevious year. The new strategy likely involves further cutting back itsinvestment bank, which has caused problems, including significant losses fromthe collapse of Archegos Capital.

Failures in Risk Management

The bank has made several poor decisions in recent years. Itencouraged clients to invest $10 billion, leading to significant losses whenGreensill went bankrupt. This has increased the cost of borrowing for CreditSuisse and severely impacted its financial health.

Increasing Cost of Capital

Credit Suisse is facing higher borrowing costs, which isstraining its finances further.

Changes in Senior Leadership

The bank has had many leadership changes since 2020. CEOTidjane Thiam resigned in 2020 due to a spying scandal. His successor, ThomasGottstein, was CEO until July 2022, when restructuring expert Ulrich Koernertook over. These changes have raised investor concerns and added to the bank'sinstability.

What Options Does It Have?

Credit Suisse plans to expand its wealth managementbusiness, transform its investment bank into a "capital-light, advisory-led"business, and review options for its Securitized Products division. It may needto raise between 4-6 billion Swiss francs to reorganize and sustain growth.This could come from selling assets or issuing new shares, which might dilutecurrent shares. Another option is to seek a significant investor for a tailoredcapital raise or, as a last resort, apply for public aid.

Credit Suisse Financials

Credit Suisse has a market cap of around $8 billion andmanages $1.4 trillion in assets as of the end of Q2 2024. Its shares havedeclined by 65% over the past year. The bank operates in wealth management,investment banking, and asset management. It has reported around $5 billion inlosses and faces higher borrowing costs due to rating downgrades. In India,Credit Suisse has Rs 19,500 crore on its balance sheet as of the end of FY23.

Impact

Any new strategic plan might fail. Widening credit spreadscould increase market anxiety, lower confidence among business partners, andtemporarily raise financing costs. Over time, the decline in share price willmake it harder for Credit Suisse to raise money and reorganize its investmentbanking operations. Even in the worst-case scenario, any fallout from apossible Credit Suisse collapse would likely only have a temporary effect onIndia's financial markets, with little impact on Indian banks.

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अमेरिकी मुद्रास्फीति के कम होने से निवेशकों में उम्मीद बढ़ गई है कि फेडरल रिजर्व आने वाले महीनों में ब्याज दरों में बढ़ोतरी की गति को कम कर देगा क्योकि मुद्रास्फीति अब नियंत्रित होती दिखाई दे रही है। ब्याज दरों में वृद्धि की गति धीमे होने की उम्मीद में सोने की कीमतें पिछले सप्ताह में ढाई महीने के उच्च स्तर पर पहुंच गई और पिछले कुछ महीनों में पिछला सप्ताह कीमती धातुओं के लिए सबसे अच्छा रहा, जिसमे घरेलु वायदा बाजार में सोना 3 प्रतिशत तेज़ हो कर 52500 रुपये प्रति दस ग्राम और चांदी भी 3 प्रतिशत तेज़ हो कर 62500 रुपये प्रति किलो के स्तरों पर पहुंच गई है। अमेरिकी मुद्रास्फीति ( सीपीआई) अक्टूबर में पिछले नौ महीनों में सबसे धीमी गति पर रही। अक्टूबर के लिए हाल ही में जारी अमेरिकी उपभोक्ता मूल्य सूचकांक (सीपीआई) रिपोर्ट 7.9 प्रतिशत के अनुमान की तुलना में 7.7 प्रतिशत साल-दर-साल रही, जो सितंबर की रिपोर्ट में 8.2 प्रतिशत थी। मुद्रास्फीति की यह रिपोर्ट अमेरिकी फेड के आक्रामक निर्णय को बदल सकती है जिसका असर बाजार में देखने को मिल रहा है। बाज़ार में फेड द्वारा ब्याज दरें 75 आधार अंक बढ़ाने की जगह 50 आधार अंक बढ़ाने की अटकले तेज़ हो गई है। अमेरिकी डॉलर, जो सोने के विपरीत दिशा में चलता है, लगभग तीन महीनों के निचले स्तरों पर पहुंच गया है, जबकि 10 साल की अमेरिकी ट्रेजरी यील्ड 4 प्रतिशत के नीचे फिसल गई है, जो एक महीने का निचला स्तर है। भारत में शादी सीजन शुरू होने से कीमती धातुओं की हाज़िर मांग अभी मजबूत रहने की सम्भावना है। सोने के विकल्प के रूप में मानी जाने वाली क्रिप्टो करेंसी बिटकॉइन अपने उच्चतम स्तरों से 75 प्रतिशत टूट चुकी है, जिससे निवेशकों का भरोसा सोने में बना हुआ है।

तकनीकी विश्लेषण

इस सप्ताह कीमती धातुओं में तेज़ी जारी रहने की सम्भावना है। दिसम्बर वायदा सोने की कीमतों में 51400 रुपये पर सपोर्ट है और 53200 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 61000 रुपये पर सपोर्ट और 63500 रुपये पर प्रतिरोध है।