Indigo Paints IPO garners strong response
- The ₹1,170 crore issue was subscribed 117 times overall. Indigo Paints is the fifth-largest player in the decorative paints category with a market share of 2%. Asian Paints (-4.2%) leads the segment with 42% market share.
- The IPO of Home First Finance, which opened yesterday, was fully subscribed on Day 1 of bidding. You can apply with Upstox here.
Indian Bank shows steady profit growth
- The Chennai-based PSU bank posted a net profit of ₹514 crore in Q3 against a loss of ₹1,739 crore during the same period last year. It has shown steady growth in profits in FY21.
- The bank’s net interest income (NII) rose by 31% YoY to ₹4,313 crore. The bank’s asset quality also improved with net NPA standing at 2.3% versus 4.2% last year. The stock rose 0.9% today and was the sole gainer in the Nifty PSU Bank index, which fell 3.0% today.
Metal stocks lose their shine
- While the street is abuzz with the news of a commodity supercycle, metal prices are seeing a short-term correction. On the MCX, copper prices dropped 1.5% this week, after falling nearly 3% last week.
- Demand from China is expected to dampen due to rising Covid cases, leading to further restrictions. Additionally, China would also enter a holiday period mid-February on account of the Lunar Holiday, when many factories close. Meanwhile, investors chose to book profits in domestic metal stocks such as SAIL (-10.0%), Jindal Steel (-6.2%), Hindustan Copper (-5.4%) and Hindalco (-3.7%).
Covid provisioning hurts Bandhan Bank’s Q3
- The private lender reported a net profit of ₹632 crore in Q3, a 13.5% YoY contraction. The bank stated that its ₹1,000 crore provision to safeguard against the impact of Covid-19 was the prime reason for the drop in profits.
- On the upside, the net interest income grew by 34.5% to ₹2,071 crore, its gross NPA fell from 1.9% to 1.1% and its net NPA decreased from 0.8% to 0.2%. The stock fell 7.5% today and has lost over 21% this month.