1. The Bull in Bolt’s Shoes.
a. On Monday 18th October 2021, the benchmark indices Sensex and Nifty witnessed a gain for the 7th successive session even as global stocks were weak because of inflation concerns and surge in price of crude oil and other commodities.
b. The Sensex closed at a fresh all-time high of 61,766, up 460 points. The index has gained on all occasions in the past 7 trading sessions adding 1,706 points. The Nifty50 index closed at 18,477 points on Monday. The index has surged 831 points in the past 7 sessions.
c. However, concerns over brent crude prices and increase in bond yield tend to maintain a pressure over the market.
2. $10 billion in a single quarter.
a. The Indian start-ups have successfully secured a record high $10.9 billion funding in Q3 of Calendar year 2021. This is double the amount received in Q3 of Calendar year 2020 and an approximate increase of 41% when compared to Q2 of Calendar year 2021.
b. Fintech, EdTech and SaaS are the top three invested sectors in Calendar Year 2021, accounting for approx. 47% of the funding received.
c. India has added the greatest number of unicorn (a unicorn is a startup whose valuation is more than $ 1 billion) after USA in Q3 of Calendar year 2021. USA has added 68 start-ups, India 10, China 7, UK 4 and Canada 4.
d. Fintech Investments in India witnessed an exponential growth. The funds invested have grown from $1.6 billion in first 3 quarters of calendar year 2020 to $4.6 billion invested in first 3 quarters of calendar year 2021.
3. SEBI approves PB Fintech’s IPO.
a. PB Fintech, the parent company of online marketplaces Policy bazaar and Paisa bazaar have received the approval of market regulator SEBI for its initial public offering (IPO). It is looking for a valuation of around $6-7 billion.
b. The DRHP filed with SEBI on 2nd August 2021 is seeking to raise Rs.6,017 crores through an IPO. The company is planning to raise Rs.3,750 crores by issuing fresh shares and the remaining Rs.2,267 crores through an offer for sale, in which existing investors can sell their stake.
c. SoftBank Vision Fund Python, which has a 9.75% stake in the firm, is expected to cash in shares worth around Rs 1,875 crore ($250 million) through the OFS.
4.Rs.1 Crore for SBI and Rs.1.95 Crore for Standard Chartered.
a. The RBI on Monday 18th October 2021 imposed a monetary penalty of Rs.1 crore on SBI and Rs.1.95 crore on Standard Chartered Bank for not complying with directives with regard to fraud classification and reporting by commercial banks.
b. Reserve bank of India has stated that the violation is related to rules pertaining to frauds classification and reporting by commercial banks and select financial institutions.
c. Further, the RBI has also stated that the penalty is based on deficiencies in regulatory compliance and all transactions or agreements entered into by the bank with its customers are valid.
5.Promoters raise money via corporate bonds.
a. Bharti Telecom, a holding company of Bharti Airtel’s promoters, is raising around Rs.1,400 crores by way of corporate bonds to help it participate in airtel’s Rs.21,000 crore rights issue and also refinance some high-cost debt.
b. The bonds will be issued in local currency market and have three sets of maturities: 12 months, 24 months and 36 months, and are offering interest rates of 6.42 per cent, 5.10 per cent and 5.85 per cent, respectively.
c. The promoters of Bharti Airtel, Singtel and Mittal Family have to contribute Rs.6,6661 crores and Rs.5,067 crores respectively in the rights issue. Of this, their immediate 25% contributions are Rs.1,665 crores and Rs.1,267 crores respectively.
d. Know More on Airtel Right Entitlements and 5 things to consider before buying a bond.
6.Financial Results Update: -HDFC Bank.
a. Consolidated Revenue for July 2021 to September 2021 = 41,436.36 crore.
Consolidated Revenue for July 2020 to September 2020 = 38,438.47 crore.
Percent Increase = 7.79.Profit for July 2021 to September 2021 = 9096.19 crore.
Profit for July 2020 to September 2020 = 7702.86 crore.
Percent Increase = 18.08.
b. Consolidated Revenue for July 2021 to September 2021 = 41,436.36 crore.
Consolidated Revenue for April 2021 to June 2021 = 38,933.63 crore.
Percent Increase = 6.43.Profit for July 2021 to September 2021 = 9096.19 crore.
Profit for April 2021 to June 2021 =7922.09 crore.
Percent Increase = 14.82.