Imp news :- GST collections surge to ₹1.82 trillion in July, up 10.3% YoY
 
ITC June quarter profit flat at ₹4,917 cr, revenue rises 7.2% to ₹18,220 cr

Ipo alert:-
Ceigall India

Ceigall India was incorporated in July 2002, and it is an infrastructure construction company with experience in undertaking specialized structural work such as elevated roads, flyovers, bridges, railway bridges, tunnels, highways, expressways, and runways It has a reputation for delivering quality projects. They are one of the fastest growing engineering, procurement, and construction (“EPC”) company in terms of three-year revenue CAGR as of Fiscal 2023, among the companies with a turnover of over ₹ 10,000 million in Fiscal 2023.


The company has completed over 34 projects, including 16 EPC and one HAM project, in the roads and highways sector. Currently, the Company has 15 ongoing projects, including 11 EPC projects and four HAM projects which include elevated corridors, bridges, flyovers, rail overbridges, tunnels, expressways, runways, and multi-lane highways. In addition to undertaking operation and maintenance (“O&M”) activities by their contractual obligations under the EPC/HAM concession agreements, they have also undertaken independent O&M projects. Further, they have also undertaken sub-contracting projects in the past.


Objects of the Issue

Purchase of equipment
Repayment/ prepayment, in full or in part, of certain borrowings availed by our Company and our Subsidiary, CIPPL

Summary of-
Consultation Paper on Measures to Strengthen Index Derivatives Framework for Increased Investor

Protection and Market Stability

Key Points:
1. Objective:
o The consultation paper aims to introduce measures to enhance investor protection
and market stability in the derivatives market, given the increasing retail
participation and speculative trading in index derivatives.

2. Changing Markets:
o Weekly index options contracts have become popular, leading to significant trading
activities, especially on expiry days.
o The turnover in the derivatives market has surpassed the cash market, with a
notable increase in index options trading. This shift is largely attributed to retail
investors, whose participation surged post-COVID-19.

3. Issues Identified:
o Speculative Trading: There is heightened speculative trading activity on expiry days,
leading to increased market volatility.
o Losses for Individual Traders: A substantial percentage of individual traders incur
losses in the derivatives segment, with significant transaction costs further
exacerbating their financial losses.
o Increased Retail Participation: The proliferation of trading in derivatives has spread
beyond tier-1 cities, with many retail investors participating without adequate risk
understanding.
4. Proposed Measures:
o Rationalization of Strike Prices: To avoid fragmented liquidity and scattered trading
activity, a more logical introduction of strike prices for options is suggested.
o Rationalization of Weekly Index Products: To reduce volatility and speculative
trading, a re-evaluation of weekly expiry index derivatives is proposed.
o Removal of Calendar Spread Benefit on Expiry Day: The removal of margin benefits
for calendar spread positions on expiry day is suggested to mitigate risk.
o Intraday Monitoring of Position Limits: Real-time monitoring is recommended to
prevent intraday breaches of position limits, particularly on expiry days.
o Increase in Minimum Contract Size: An increase in the minimum contract size for
index derivative contracts is proposed to reflect market growth and manage risk.
o Upfront Collection of Option Premiums: To protect investors, it is proposed that
options premiums be collected upfront by trading members (TMs) and clearing
members (CMs).

5. Conclusion:
o The consultation paper emphasizes the need for regulatory changes to protect
investors, ensure market stability, and sustain capital formation. The proposed
measures aim to address the issues of speculative trading and market volatility while
fostering a more secure and robust derivatives market.

You all can give feedback on SEBI Public comments Link :- https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes

Good morning every one.

Events this week
Aug 14 Wednesday
U.S Inflation Rate.

IPO
OLA Electric
Ola Electric is a pure EV player in India and are building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. They manufacture EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. Their business focuses on capturing the opportunity arising out of electrification of mobility in India and they also seek opportunities to export our EVs in select international markets in the future.
The company had the highest revenue of all Indian incorporated electric 2Ws (“E2Ws”) original equipment manufacturers (“OEMs”) from E2W sales in Fiscal 2023, according to the Redseer Report. Within nine months of delivering our first EV scooter in December 2021, they became the best-selling E2W brand in India in terms of monthly E2W registrations on the VAHAN Portal of Ministry of Road Transport and Highways (“VAHAN”) according to the Redseer Report. Research and development (“R&D”) and technology are at the core of our business model with a focus on in-house product innovation.

Objects of the Issue
-Capital expenditure to be incurred by our Subsidiary, OCT for expansion of the capacity of our cell manufacturing plant from 5 GWh to 6.4 GWh, classified as phase 2 under the expansion plan (the “Project”);
-Repayment or pre-payment, in full or part, of the indebtedness incurred by our Subsidiary, OET;
-Investment into research and product development;
-Expenditure to be incurred for organic growth initiatives; and
-General corporate purposes

Why markets crashed today –
Here are the reasons mentioned below –
1. US Recession fears
Fears of a looming recession in the US have given a severe jolt to the risk appetite of investors globally after July payroll data last Friday showed the US unemployment rate jumped to near a three-year high of 4.3 per cent last month against 4.1 per cent in June. July marked the fourth consecutive monthly increase in the unemployment rate.

2. Rising tensions in the Middle East
According to media reports, Iran has vowed to take revenge after Israel killed Hamas political chief Ismail Haniyeh. Haniyeh was killed when he was in Iran to attend the inauguration of newly elected Iranian President Masoud Pezeshkian.

As Mint reported earlier, the rising threats and provocative actions from both sides have heightened fears of an imminent war. The United States is reinforcing its military presence in the region in response to the escalating situation.

Investors across the globe are keenly observing the evolving situation. If the war escalates from the current levels, it will be hit market sentiment strongly.
3. Stretched valuation
The Indian stock market's current valuation is stretched and experts say the market is ripe for a healthy correction.
Valuations in India, driven mainly by sustained liquidity flows, continue to be high, particularly in the mid and small-cap segments. The overvalued segments of the market, like defence and railways, are likely to come under pressure.

4. Unimpressive Q1 result
India Inc.'s June quarter (Q1FY25) result has been mixed and failed to cheer market sentiment. As the current market valuation remains high, experts fear the earnings may not be able to sustain it.
The rally in the recent past has been supported by earnings growth, but experts see some moderation in the earnings of several sectors, which has potentially triggered some profit booking in the market.

Daily updates
 
FPIs offload $1.2 billion worth of shares on Monday*— Biggest *selling since June
 
Violent Bangladesh protests forced Sheikh Hasina to resign as Bangladesh Prime Minister today. Mass celebration ensued in Dhaka as Hasina stepped down, fled to India and reportedly sought asylum in the United Kingdom.
 
Record VIX Spike Rocks Wall Street Traders All-In on Market Calm
 
 
 

IPO UPDATE -First Cry

FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’, and Kids’ products, in terms of GMV, for the year ending December 2023, according to the RedSeer Report, with a growing presence in select international markets. In India, they sell Mothers’, Babies’, and Kids’ products through their online platform, company-owned modern stores, franchisee-owned modern stores, and general trade retail distribution.
They seek to develop a tangible, emotional, multi-year relationship with parents, especially mothers, with whom their first engagement begins from their baby’s conception (i.e., nine months before birth) and can continue until their child reaches about 12 years of age. According to the RedSeer Report, childcare is a non-discretionary, essential expense, for which there is perpetual need. They operate in a retail category with high purchase frequency, in which children outgrow clothing sizes quickly and need consumables such as diapers and other baby products along with other needs that evolve with age. Thus, once parents establish a connection with them, they are likely to start a predictable and frequent transactional journey of about twelve years as their children grow.


They launched the FirstCry platform in India in 2010 to create a one-stop destination for parenting needs across commerce, content, community engagement, and education. They named their platform “FirstCry” because they believe that a baby’s first cry is a special moment for parents, and they aim to make such moments of the parenting journey filled with joy and happiness.
They have expanded internationally in select markets, establishing a presence in UAE and KSA in 2019 and 2022 respectively, where they aim to replicate their India playbook. According to the RedSeer Report, they are the largest specialist online Mothers’, Babies’, and Kids’ Product retail platforms in UAE, in terms of GMV, for the year ending December 2023. Further, in KSA, they are the largest online-first Mothers’, Babies’ and Kids’ product-focused retail platform, according to the RedSeer Report. After the UAE, they aim to replicate our India playbook in KSA.

Objects of the Issue
• Expenditure by the company for (i) setting up new modern stores under the ‘BabyHug’ brand; and (ii) setting up a warehouse, in India
• Expenditure for lease payments for the existing identified modern stores owned and operated by the company, in India
• Investment in its Subsidiary, Digital Age for (i) setting up new modern stores under the FirstCry brand and other home brands of the company; and (ii) lease payments for the existing identified modern stores owned and controlled by Digital Age, in India
• Investment in the subsidiary, FirstCry Trading for overseas expansion by: (i) setting up new modern stores; and (ii) setting up warehouse(s), in KSA
• Investment in the subsidiary, Globalbees Brands towards the acquisition of an additional stake in the step-down Subsidiaries
• Sales and marketing initiatives
• Technology and data science costs including cloud and server hosting-related costs
• Funding inorganic growth through acquisition and other strategic initiatives and general corporate purposes

Hindenburg Report –
SEBI Chairperson Involvement in Adani Money Siphoning Scandal –
Summary –
• Whistleblower Documents Show That Madhabi Buch, The Current Chairperson Of SEBI, And Her Husband Had Stakes In Both Obscure Offshore Funds Used In The Adani Money Siphoning Scandal. The current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani.
• Despite the existence of thousands of mainstream, reputable onshore Indian Mutual fund products, an industry she now is responsible for regulating, documents show SEBI Chairperson Madhabi Buch and her husband had stakes in a multi-layered offshore fund structure with miniscule assets, traversing known high-risk jurisdictions, overseen by a company with reported ties to the Wirecard scandal, in the same entity run by an Adani director and significantly used by Vinod Adani in the alleged Adani cash siphoning scandal.
• To Date, SEBI Has Taken No Action Against Other Suspect Adani Shareholders Operated By India Infoline: EM Resurgent Fund and Emerging India Focus Funds
SEBI chairperson involvement in promoting Blackstone’s REITS.
• During Dhaval Buch’s (SEBI Chairperson Husband) Time As Advisor To Blackstone, SEBI Has Proposed, Approved And Facilitated Major REIT Regulations Changes. Since Madhabi Buch became Chairperson in March 2022, SEBI has proposed and implemented a raft of REIT legislation, of significant benefit to Blackstone as one of the largest REIT sponsors in India, whom her husband works for.
• SEBI chairperson Herself Promoted REIT’s as her “Favourite products for the Future” and urged investors to look “Positively:” upon the asset class. While Making Those Statements, She Omitted To Mention That Blackstone, Who Her Husband Advises, Stands To Gain Significantly From The Asset Class.

Conclusion from the report above –
Hindenburg suggest that SEBI can not be trusted as an objective arbiter in Adani matter, as the SEBI chairperson has allegedly having stake in Adani group of companies.


Hindenburg says, To the extent that any proceeds are derived from this report they will be donated to causes that support free expression.

Good morning IMP Updates:-
->Hero MotoCorp receives ₹17.64 crore GST notice from Delhi GST authority

->India’s retail inflation eases 3.54% in july.

->Growth in Indian industrial production slows to 4.2% in june 2024

->FPI’s turn net sellers, pull out Rs. 21201 crores from equity in Aug so far. FPI’s selling through stock market and buying throug IPO market.

Important event ahead
->21Aug FOMC minutes
->23Aug fed chairman speech

Trading memes review Ep-1
https://youtu.be/lwy3ZIlaA_Q