Morning Update for 24 August 2021

Indices at previous closing

Nifty50: 16,496 ▲ +45 (+0.2%)
Sensex: 55,555 ▲ +226 (+0.4%)
Nifty Bank: 35,124 ▲ +90 (+0.2%)

In the news

Zomato falls after lock-in period

Shares of the recently listed food delivery firm sank 8% on Monday. Interestingly, this was the day that the one-month lock-in period for anchor investors was completed. Anchor investors are typically large, institutional buyers brought in to boost investor confidence in a public issue. SEBI mandates a 30-day lock-in period for anchor investors. 

Zomato had raised ₹4,196 crore from anchor investors before its ₹9,375 crore public issue. Even after Monday’s sharp drop, the stock trades at a 68% premium to its issue price of ₹76. 

Eicher Motors board reappoints MD 

The automaker’s board has reappointed Siddharth Lal as the company’s managing director on Monday. This comes after shareholders had opposed his reappointment over a proposed 10% salary hike. But the board now again has to seek approval from shareholders. 

Besides this, the company has been facing multiple headwinds including weak demand and the chip shortage. Meanwhile, shares were down 2.3% yesterday and have fallen around 5% since June.

Indian Hotels announces big-ticket rights issue

The Indian Hotels Company has announced a ₹3,000 crore rights issue. The Tata Group-owned hotel chain aims to use the amount to finance capital expenditure, growth and debt repayment. In FY21, the company’s debt had risen 67% YoY to ₹3,110 crore. 

The stock has declined about 5% so far in August and closed nearly flat yesterday. However, the news of the rights-issue came after market hours.  

Sectoral indices (August 23)

Global markets (at 8:00 am)

Fact of the day

The popular multiplex chain Inox was originally set up as a company that made industrial gases. Inox is short for the company’s original name Industrial Oxygen.

Source: Inox 

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