Stocks
Coffee Day IPO subscribed totally
The Rs.1,150 crore Coffee Day Enterprises Limited (CDEL) IPO, India's largest since the Rs.4,500 crore Bharti Infratel Ltd issue in December 2012, has been totally subscribed before the end of the issue on Friday, sources said.
 
The issue was subscribed 1.54 times by 2.55 p.m. itself, sources said.
 
According to the information available on bourses BSE and NSE at that time, Qualified Institutional Buyers (QIB) bought the issue 4.05 times while High Networth Individual (HNI) and retail investors accounted for 18 percent and 66 percent of the subscription, sources added.
 
The company offered equity shares of the face value of Rs.10 each for cash with the share premium aggregating up to Rs.1,150 crore.
 
The price band for the issue was fixed at Rs.316-Rs.328 a share.
 
CDEL allotted 1.03 crore equity share aggregating to Rs.334 crore for 17 anchor investors.
 
CDEL operates the largest domestic coffee chain in India under the brand name Cafe Coffee Day, with 1,538 outlets in 219 cities.
 
The IPO is being handled by Yes Bank, Edelweiss, Axis Capital, Morgan Stanley, Citigroup and Kotak Investment Banking.
 
The proceeds from the issue will fund Cafe Coffee Day outlet expansion, repay and prepay loans of the parent company CDEL and subsidiaries and meet general corporate needs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Reliance Industries reports record net profit
Reliance Industries on Friday reported a record consolidated net profit of Rs.12,942 crore ($2 billion) for the six-month period ended September 30, which is an 8.5 percent jump over last year. For the second quarter, the profit was up 12.5 percent.
 
The revenues, however, were down 28.5 percent during the first half at Rs.158,181 crore. For the second quarter, the revenues were down 33.8 percent, at Rs.75,117 crore, the company reported in a filing with the stock exchanges.
 
On a standalone basis, the net profit increased by 14.3 percent to Rs.6,561 crore ($1 billion).
 
In consolidated accounting, the numbers of both the company and its subsidiaries are considered, while on a standalone basis only the company's own numbers are taken into account and not of its subsidiaries.
 
"We achieved record level of EBITDA (earning before interest, tax, depreciation and amortisation) and profits for the quarter, underscoring our ability to optimally utilize our assets across the value chain to leverage favourable market conditions," chairman Mukesh Ambani said.
 
"Refining business performance was notable as it benefited from a combination of high utilisation levels, advantageous crude market opportunities and strong global fuels demand. Petrochemicals performance reflects strong volume growth, product mix improvement and lower energy costs."
 
He also said the retail arm achieved a milestone of Rs.5,000-crore quarterly turnover mark for the first time and that its petcoke gasification facility and ethylene cracker complex remained on track for its planned 2016 start-up.
 
"In digital services, we have substantially completed the network roll-out across the country and initiated the process of beta testing of our network and platforms."
 
The company said Jio Infocomm launched Wi-Fi hot spots across several locations in the country and entered into accords with some of the state and local authorities to provide such services. 
 
Roll-out of last-mile connectivity for its fibre-to-the-home business is also on. The company, which holds a pan-India unified licence for all net-based services, including voice and data, said that the initial test results on the network were positive. 
 
"The company expects to ramp up its beta program over the next few weeks to further optimise the network, prior to commercial launch of operations. Financial year 2016-17 is projected to be the first year of commercial operations for Reliance Jio," the company said.
 
It has also filed for sharing of spectrum in the 800MHz band with Reliance Communications across seven circles to department of telecommunications (DoT).
 
Reliance Jio aims to offer end-to-end solutions that address the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment.
 
Other highlights of the announcements on Friday:
 
- Standalone net profit at Rs. 6,561 crore in second quarter, up 3.8 year-on-year
 
- Seven-year-high gross refining margin of $10.6 per barrel
 
- Crude processing at 17.1 million tonnes at operating rate of 110 percent
 
- Gross refining margin at $10.6 per barrel, highest in seven years
 
- Retail revenue turnover growth of 22 percent year-on-year
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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Nifty, Sensex headed higher – Weekly closing report
As long as Nifty is above 8,090, bulls will be in control 
 
We had mentioned in last week’s closing report that Nifty, Sensex were looking overbought but as long as Nifty stays above 8,000, bulls would be in control. The major indices in the Indian stock markets closed with small losses in each of the first three days of the week and turned bullish only on Thursday to close with 0.80%-1.00% gains. On Friday, as well, a day after it made substantial gains owing to lessened chances of a US rate hike, the Indian equity markets were trading flat during the early-morning session. By the end of Friday’s trading, the indices closed with gains.
 
The trends of the major indices over the week’s trading are given in the table below:
 
 
Investor-anxiety over the ongoing quarterly results kept the Indian equity markets subdued on Monday. Initially, both the Sensex and Nifty opened in the green on the back of positive overseas markets. However, both indices soon ceded their gains, as investors were spooked regarding the uncertainty over the second quarter results. Notwithstanding the downward trend, hopes of healthy macro data points on industry output and inflation later in the day somewhat arrested the fall.
 
Asian markets closed on a positive note on Monday supported by a rally in the Chinese indices which were up 3%. The Chinese central bank had announced a stimulus package over the weekend. The Chinese government has also indicated its intentions to initiate reforms in the telecommunication sector.
 
On Tuesday, caution over the ongoing results season and weak global cues coupled with reduced chances of a future lending rate cuts dampened investor sentiment and led the major indices in the Indian stock markets to close marginally lower than Monday’s close. The indices had opened lower due to negative import-export data coming out of China. Even the healthy domestic macro data points released on Monday were not able to arrest the slide in Tuesday's trade.
 
The major indices in the Indian stock markets were range-bound in Wednesday’s trading and closed with marginal losses. India's annual wholesale inflation for September firmed up slightly at (-) 4.54% from (-) 4.95% for the previous month, official data released on Wednesday showed. The annual inflation rate, based on the official wholesale price index (WPI), was ruling at 2.38% in September, last year. The slight firmness was attributed to rising prices of onions, pulses, milk, egg, meat and fish, which have continued to hit household budgets. On a month-on-month basis, the annual rate of inflation has been in the negative territory since November last year.
 
On Thursday, the Indian equity markets made gains after three consecutive sessions of losses which came in the wake of disappointing quarterly results and negative sentiments emanating from the Chinese markets. With positive cues from the Asian markets the indices in the Indian stock markets moved into an upward trend on Thursday. 
 
India Ratings and Research report, on Thursday, said that for foreign investors one positive factor is that the rupee is likely to remain steady for the rest of the fiscal helped by strong macroeconomic fundamentals, which will lead to higher capital inflows.
 
Market analysts pointed out that lowered chances of a US rate hike, buoyant global markets and rising rupee value propelled the Indian stock markets higher on Thursday.
 
Caution over the upcoming blue-chip results and disappointing monthly export data coupled with a rise in fuel prices led to indices in the Indian equity markets trading flat upto the mid-afternoon session on Friday. Sentiments improved towards close of trading on Friday with the indices gaining around 0.75% at the end of the day over Thursday’s close.
 
Investor-anxiety over quarterly results was confirmed by data from RBI (Reserve Bank of India). Indian corporates as a whole saw their net profits fall 9.5% in the first quarter of FY15-16, data released by RBI shows. While certainly a poor performance, this is better than the 12.5% fall seen in the previous quarter. “Net profit continued to contract in Q1 2015-16 at the aggregate level due to a contraction in the manufacturing sector. The IT sector showed a very low but positive year-on-year growth in net profit against a contraction in Q4 2014-15,” the RBI release on the financial performance of non-government non-financial companies said. 
 
Sector data available on Friday also showed that the software sector has been doing relatively well. Mutual fund managers continued to maintain bullish stance on software companies as they raised their total allocation in the sector to a fresh all time-high of over Rs43,000 crore in September on depreciation in rupee.  Equity fund managers’ deployment in software stocks stood at Rs31,834 crore in September 2014. Industry experts said that fund managers have been raising their allocation to software stocks since June 2015 due to the declining rupee against the US dollar.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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