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8th October 2021
Good Morning! 

Happy Friyayy!!
In another sign of how things may now be getting back to normal, India is going to start issuing tourist visas from October 15. Let us hope things stay under control. The tourism industry really needs any boost it can get.
  MARKETS
 

SENSEX

59,677.83

+ 0.82%

NIFTY

17,837.15

+ 1.08%

US$

74.79

- 0.27%

GOLD

46,807

- 0.21%

10-YR

6.27%

- 0.1 bps

OIL

5,748

- 1.17%

*As of market close

  • Markets: Stocks closed higher yesterday led by buying in metal and realty stocks. All eyes will be on the RBI now as today the central bank will announce the results of its monetary policy meeting in the afternoon. 

Startups

Pre-IPO Action
And...action!

Ixigo
American asset management company Invesco has bought out another investor's stake in the AI-based travel app startup Ixigo.

Ixigo had filed papers for an IPO with SEBI in August, with plans to raise Rs 1,600 crores. Just before that, they'd raised a $53 million (~Rs 390 crores) pre-IPO round of funding from investors like Orios Venture Partners, Bay Capital & Trifecta Capital.

China's Fosun Group is also one of the investors in Ixigo, and they are the ones who have sold most (but not all) of their stake to Invesco. The exact amount isn't known but Fosun held 3.69% of ixigo, so it's less than that. 

Invesco is apparently very bullish on Indian tech companies, and after leading the $100 million investment round raised by PineLabs recently, they are also 'in talks' with Swiggy to lead a $500-600 million funding round.

PS: Invesco is also one of the shareholders involved in the battle against Zee Entertainment's CEO.

Paytm
Paytm is apparently attracting interest from sovereign wealth funds and other large investors like Blackrock to become one of the anchor investors in their IPO.

Abu Dhabi Investment Authority and Singapore’s GIC are among those thinking of bidding to participate in the IPO. Negotiations are ongoing and there could be several other interested parties that emerge too, as per Business Standard.

While Paytm filed its IPO papers with SEBI back in July, it has not yet been approved. So we don't know when exactly the offer will open.

Oh, in case you're wondering - Anchor investors are well-known institutional investors that are invited to subscribe for shares ahead of the IPO to boost the popularity of the issue and provide confidence to other potential investors.

The benefit of being an anchor investor is that those guys get a guaranteed allotment of shares. However, they are restricted from selling for at least 30 days after the stock starts trading.

Auto

Full Speed Ahead
Car going uphill

Tata Motors
The stock was up almost 13% yesterday and is now at a 3-year high! Why's that you ask?
Well, one of the reasons could be an analyst rating upgrade the company received from Morgan Stanley yesterday. 

MS believes the next 2 years will be strong for Tata Motors because they've now got a lean cost structure and a refreshed portfolio of vehicles. If things go well, they expect the stock to give +84% returns by 2024. Not too shabby. 

Mahindra & Mahindra
Some more positive news from the auto sector- M&M recently announced the launch of its new XUV700 model and the response they received was phenomenal - 25,000 bookings in 57 minutes! 

That's like 6 months of sales sorted for the company, so they closed the booking portal down for the day. Investors clearly liked this as the stock jumped 5% yesterday.

Bookings reopen today and here's the link to their website where you can get all the details.

Maruti Suzuki
India's largest carmaker does not have much happy news though. BloombergQuint interviewed one of their top sales and marketing execs, and they said the situation with semiconductor supply is still tricky.

In September, Maruti produced just 40% of the cars they normally do and this month too is expected to be only slightly better with 60%.

The sad thing for them is that demand seems to be booming and they are unable to meet it - Maruti Suzuki has received bookings for 215,000 vehicles, with the waiting period on some of the CNG models going up to 6 months! And for the Ertiga, it's 1 whole year. 

The company's stock is down 6% so far this year.

Tech

Be A Rebel
Rebel

We have got another unicorn!!
Rebel foods isn't really acting like a rebel. They've just become the 31st member of India's unicorn club with their latest funding.

Rebel has raised $175 million and is now valued at $1.4 billion.

What is Rebel Foods?

You've probably ordered from one of Rebel Foods brands sometime or the other. They run many delivery-only brands. Fasoos, Behrouz Biryani and Mandarin Oak are the most popular amongst these.

Because all these restaurants are delivery-only, Rebel can create food for their different brands under one roof and share resources. This is essentially what is now widely called a "cloud kitchen".

After first just doing it for their own brands, Rebel has now opened up cloud kitchens for other brands as well. Restaurants just have to take care of making the food and Rebel handles everything else.
Some big chain restaurants like Wendy's and Mad Over Donuts now exclusively prepare their delivery orders from Rebel's cloud kitchens.

And Rebel doesn't just do this is in India, they operate 4,000 restaurants across 10 countries!
The company has an annual revenue run rate of $150 million.

While announcing this round of funding they also spoke about working towards an IPO in the next 18-24 months.
Considering there are many, many other Indian startups planning to do that too, maybe you need to stop calling yourself a rebel, Rebel. JK.

On a Lighter Note

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