Rakesh Jhunjhunwala-backed Metro Brands’ shares end listing day near issue price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Legendary investor Rakesh Jhunjhunwala-backed Metro Brands’ shares gained some strength after a weak debut in the secondary market on Wednesday. Mumbai-based multi-brand footwear retail chain Metro Brands’ shares finished the listing day near the issue price of Rs 500, having begun their journey on stock exchanges BSE and NSE at a discount of close to 13 percent.

The Metro Brands stock ended at Rs 502 on NSE, a premium of 0.4 percent over its issue price. It settled at Rs 493.6 apiece on BSE, a discount of 1.3 percent, though narrowing nearly all of its listing day discount.

Earlier on Wednesday, Metro Brands shares began their journey on stock exchanges BSE and NSE at a discount of nearly 13 percent to the issue price.

Metro Brands enters the secondary market at a time when most IPOs have received a robust response from investors, though the recent sell-off has dented the appeal of recent debutants.

“We are positive on stock for the long term on the back of the company’s asset-light business, strong brands and wide range of products,” said Amarjeet Maurya, AVP-Mid Caps at Angel One.

“We believe every dip in share prices provides buying opportunities to long term investors,” he added.

The subdued market debut of Metro Brands shares was in tandem with the trend seen in the grey market ahead of the listing day. The company slipped into the discount zone days ahead of the listing on bourses BSE and NSE.

ALSO READ: What grey market really is

Metro Brands had commanded a grey market premium (GMP) of Rs 25-80 during its IPO, which was open for subscription from December 10 to December 14.

Metro Brands’ IPO was subscribed overall 3.6 times the shares on offer. The quotas reserved for qualified institutional buyers (QIBs) and non-institutional investors saw subscriptions of 8.5 times and three times respectively. The quota meant for retail investors was booked 1.1 times.

ALSO READ: How to read key IPO numbers, spot red flags in DRHP

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Are NFTs the only type of cryptocurrency tokens? Here’s all you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The prominence of bitcoins and other altcoins has reached a fever pitch in the last two years. People are buying and selling cryptocurrency at an unprecedented rate, but when it comes to crypto tokens, they believe it’s just limited to non-fungible tokens (NFTs). However, there are many types of tokens. Crypto tokens are built on pre-existing blockchain platforms. Instead of the complete network, they have a specific utility in their projects.

Tokens leverage crypto technology to serve various other user needs across industries. They often act as a medium for executing different decentralised apps and smart contracts, other than also acting as a store of value. NFTs, for example, provide the owner with unique rights to a piece of art or music. 

CAKE, for example, is a native utility token of PancakeSwap. It is used for various purposes like yield farming, staking, participating in the PancakeSwap lottery, and voting on governance proposals through the platform’s governance portal. Let’s look at the different types of tokens.

Also Read | Bitcoin may not last too long, says expert

The different types of tokens

Utility Token

These tokens have a specific purpose or task within the platform they were developed on. While they are not specifically created as an investment opportunity, one can use them for transactions only on the platforms they were designed on.

Companies typically release utility tokens to give their users a tool to pay for a product or service available on their platform. It is best to buy utility tokens during Initial Coin offerings.

Security Token

Security tokens are like traditional asset classes such as stocks and shares. Often called equity tokens, they represent an ownership stake in a company or project. Security tokens are given to a user when the initial coin offering for the company ends.

Security tokens may seem similar to utility tokens, but there is one significant difference; security tokens are limited by specific federal laws and rules of stock trading. In addition, security tokens can be accessed through different platforms and not just the one they were developed on.

Platform Token

These tokens use the blockchain infrastructure to make decentralised applications for various uses. For instance, Dai is a stablecoin pegged to the US dollar, and it maintains its pricing volatility through smart contracts.

Platform tokens have various uses, from gaming and serving as a platform for digital collectibles to global advertising.

Also Read | Explained: How crypto wallets can help you manage holdings amid impending ban

Currency Token

A currency token can be used the same way as any other currency globally. This means one can use them to buy goods and services. One can trade these tokens for other cryptocurrencies and even traditional fiat currencies.

A classic example of a currency token is bitcoin. You can use a bitcoin to buy and sell goods with any online merchant that accepts bitcoin as a payment method.

Governance Token

Decentralised projects evolve and increase over time, and there is a need to refine the decision-making processes that affect these projects. Governance tokens do precisely this. They allow stakeholders of the decentralised project to collaborate and vote on how they want to manage the project. Governance tokens fuel blockchain-based voting systems. One example of a governance token is MKR in the maker protocol.

Also Read | Jack Dorsey tweets Bitcoin will replace US dollar in reply to rapper Cardi B

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rupee gains 5 paise to end at 75.54 against US dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a range-bound session, the rupee appreciated by 5 paise to close at 75.54 (provisional) against the US dollar on Wednesday as a firm trend in domestic equities boosted investor sentiments. Besides, lower crude prices in the international market and a subdued dollar overseas also supported the local unit, forex dealers said.

The rupee resumed higher at 75.56 per dollar against the previous close of 75.59 at the interbank foreign exchange market and hovered in a range of 75.48 to 75.65 before settling at 75.54, registering a rise of 5 paise.

On the domestic equity market front, the BSE Sensex ended 611.55 points or 1.09 percent higher at 56,930.56, while the broader NSE Nifty surged 184.60 points or 1.1 percent to 16,955.45.

Brent crude futures, the global oil benchmark, fell 0.26 percent to USD 73.79 per barrel.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.04 percent at 96.45.

Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 1,209.82 crore, exchange data showed.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dubai ruler must pay ex-wife $700M in divorce settlement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A British court on Tuesday ordered the ruler of Dubai to pay his ex-wife and their children close to 550 million pounds ($730 million), in one of the most expensive divorce settlements in British history.

The High Court said Sheikh Mohammed bin Rashid Al Maktoum must pay 251.5 million pounds to his sixth wife, Princess Haya Bint Al Hussein, and make ongoing payments for their children Al Jalila, 14, and Zayed, 9, underpinned by a bank guarantee of 290 million pounds.

The total amount the children receive could be more or less than 290 million pounds, depending on factors including how long they live and whether they reconcile with their father.

The settlement includes 11 million pounds a year to cover security costs for Princess Haya and the children while they are underage.

Judge Philip Moor said the family needed water-tight security,” and that absolutely uniquely, the main threat to them came from Sheikh Mohammed, rather than outside sources.

Haya, 47, fled to the UK in 2019 and sought custody of her two children through the British courts. The princess, who is the daughter of the late King Hussein of Jordan, said she was terrified of her husband, who is alleged to have ordered the forced return to the Gulf emirate of two of his daughters.

Sheikh Mohammed, 72, is also the prime minister of the United Arab Emirates and a major horse breeder. The founder of the successful Godolphin horse-racing stable, he is on friendly terms with Queen Elizabeth II.

A British family court judge ruled in October that Sheikh Mohammed had authorized the hacking of Princess Hayas phone during their legal battle. He denied knowledge of the hacking.

The judge also ruled that Sheikh Mohammed had conducted a campaign of fear and intimidation against his estranged wife and ordered and orchestrated the abduction and forced return to Dubai of two of his adult daughters: Sheikha Shamsa in August 2000 and her sister Sheikha Latifa, in 2002 and again in 2018.

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Over 4 crore ITRs for FY’21 e-filed so far, says Income Tax Department

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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More than 4 crore ITRs for the last fiscal have been e-filed, with around 8.7 lakh returns being filed on December 21 alone, the I-T department said on Wednesday.

With December 31 being the last date for filing FY’21 income tax returns (ITRs) for individual taxpayers, there has been surge in e-filing and 46.77 lakh returns were filed in the last seven days.

Also Read: Govt unlikely to extend December 31 deadline to file income tax returns: Sources

“Over 4 crore Income Tax Returns filed! 46.77 lakh #ITRs filed in last 7 days & over 8.7 lakh #ITRs filed on 21st December, 2021,” the I-T department tweeted. The department has been reminding taxpayers to file their returns for fiscal year 2020-21 (ended March 31,2021) by sending SMS and emails to those who have not filed yet.

The last date of filing ITR has been extended till December 31, from July 31.

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Web 3.0? Jack Dorsey, Elon Musk say not quite there yet; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Web 3.0 right now exists as a vision of a complete redesign of the internet built on the backbone of decentralised technology like blockchain, the technology used to power cryptocurrencies and NFTs.

Billionaires Jack Dorsey and Elon Musk, two of the most vocal big business owners, do not seem too impressed with the current direction of the new iteration of the internet.

“You don’t own ‘web3’. The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…,” Dorsey, the founder and former CEO of Twitter, wrote on the microblogging site.

In the case of Web 3.0, as entities like venture capitalists (VC) and limited partnerships (LP) often have a controlling stake in the companies operating in the new sphere, they can ensure that those running the blockchain comply with regulations like Know Your Customer (KYC) and other norms. Therefore, putting the entire project at odds with its core philosophy of decentralisation.

Also Read: What is Web 3.0 and why is it significant?

Dorsey’s contention is that even if Web 3.0 is built on a decentralised model, the controlling entities that have shown interest in the project, like venture capital funds and limited partnerships, will end up having the real say in what goes on in the new iteration, similar to Web 2.0.

You don’t own “web3.”

The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.

Know what you’re getting into…

— jack⚡️ (@jack) December 21, 2021

z
The current iteration of the internet, known as Web 2.0, is often thought to be a centralised ecosystem where most of the data and content has been kept in the hands of large players like Amazon, Apple, Meta Platforms, Alphabet and other ‘Big Tech’ companies. This is done through large corporate servers, data collation systems and corporations that many of the world’s most popular platforms and websites, and more.

According to Tesla CEO Musk the current projects on Web 3.0 are disappointing and haven’t lived up to the projected potential either.

“Has anyone seen web3? I can’t find it,” Musk tweeted on December 21. To this, Dorsey replied, “It’s somewhere between a and z,” referring to the venture capital fund Andreessen Horowitz, which was one of Facebook’s earliest backers and one of the stronger proponents of Web 3.0.

It’s somewhere between a and z

— jack⚡️ (@jack) December 21, 2021

I’m not suggesting web3 is real – seems more marketing buzzword than reality right now – just wondering what the future will be like in 10, 20 or 30 years. 2051 sounds crazy futuristic!

— Elon Musk (@elonmusk) December 20, 2021

The VC attention to Web 3.0 is reflected in Indian firms as well in companies like Antler India, a unit of Singapore-based venture capital platform Antler, Incrypt Blockchain, Sequoia India and international funds like Jump Capital, Pantera Capital, and Coinbase Ventures that are investing in the nascent Web 3.0 companies present in the country.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hindustan Unilever shares gain as brokerages set higher target; check details

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hindustan Unilever Ltd (HUL) shares gained nearly 2 percent in intra-day trade on Wednesday. The sentiment turned positive amid several brokerages including Nomura and Macquarie raising their long-term target price on the FMCG stock between 30 and 45 percent.

HUL stock closed 0.31 percent higher at Rs 2,279.95 per share on NSE. The broader Nifty50 settled at  16,955.45, up 1.10 percent. At current price levels, the HUL stock has a negative return of 4.5 percent so far this year.  The five-year return on the stock is over 188 percent.

CitiGroup has maintained a ‘buy’ call on HUL stock price, setting a 34 percent higher target price of Rs 3,065 apiece as it expects higher pricing-led growth in the near term to drive steady revenue for the consumer goods company. The brokerage also retained its forecasts of 11 percent revenue growth and 15 percent EBITDA growth year-on-year (YoY) in Q3.

Another global brokerage Nomura pointed to Q3 market demand trends, according to which rural growth is decelerating and urban is witnessing recovery. The brokerage firm maintained its buy call with an almost 20 percent higher target price of Rs 2,950 per share as it said HUL’s category rebalancing is leading to a better mix. The volumes are likely to go up 2 percent Y-o-Y and 2-year volume CAGR estimates are at 3 percent, it said. The brokerage also said the firm’s cumulative price hike will be higher during the quarter as against Q2.

The remark on the price hike comes as HUL hiked prices of its soaps and detergents earlier in November citing significant inflationary pressures.

Motilal Oswal was also of the view that rural India is in a slowdown and a better mix and price increases are likely to support HUL’s operating margin. The brokerage increased its target price on the stock to Rs 2,800 and maintained a ‘buy’ rating.

“The transient slowdown in rural India and elevated input cost inflation causes us to remain cautious on the stock in the near term. Nevertheless, the structural story for HUVR remains intact,” research analysts at Motilal Oswal said in a report on December 21.

Also Read: Backstory | When Hindustan Unilever went up close with Colgate

Meanwhile, global brokerage Macquarie has an ‘outperform’ call on the shares of HUL with a target price as high as Rs 3,300 apiece. There’s been a sustained recovery in discretionary segments and moderation in hygiene sale volumes, the brokerage said, adding that sharp price hikes will cover inflation could weigh on Q3 volumes. Macquarie expects a pick-up in volume growth in the latter part of FY23 to aid the company’s performance.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: Zee shares unmoved by Sony deal, what should investors do now?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises (ZEEL) today announced that they have finalised the deal to merge ZEEL with and into SPNI. Zee shares reacted negatively to the development initially, but recouped most of the losses before closing higher at 0.46 percent, over the previous close.

Despite the merger announcement being a big positive, Zee shares have not moved much. Why?

Many traders had taken up long positions in the stock, expecting that the deal would eventually happen. Those traders are now booking profits, putting pressure on the stock. Also, the build-up of speculative positions led to futures and options trading in Zee being banned because of exchange-specified limits being triggered.

Also Read | FAQs: Zee Entertainment-Sony merger: Key things to know

No fresh futures or options contracts can be bought or sold. If traders take fresh positions, they will be penalised by the exchange. Traders with open positions can reduce their positions by taking an offsetting position.

Can there be any further roadblocks for the deal?

It will depend on how Invesco, the biggest institutional investor in the company reacts to the merger. Some of Invesco’s concerns have been addressed in the final deal, but there are still a few grey areas—such as the payment of non-compete fee to Zee promoters–that need to be addressed. All eyes will be on Invesco and other institutional investors.

What does the deal mean for minority shareholders?

Prima facie looks like a fair deal for minority shareholders. Also, the merged entity will be India’s leading broadcast with an over 35 percent market share.

In terms of valuation, how does Zee stack up against its listed peers?

Zee is trading at a similar valuation as most of its peers. At roughly 12 times one year forward earnings ZEE is trading at a deep discount to its historical average. While the heady valuations of the past may not be seen anytime soon because of the structural changes in the media industry, there is definite room for a rerating, considering that the merged entity is a much bigger player.

How should an investor position for Zee?

Long term investors should hold onto ZEE. It could be a while before the synergies of the merger start reflecting in the financial performance. But the backing of an MNC brand like Sony and the size of the merged entity makes Zee a force to reckon with in the media industry.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow