In today’s briefing:
- NIFTY100 Index Rebalance Preview: Couple of Changes in August, Then 5 More in September
- Kotak Mahindra Bank (KMB IN): FTSE Inclusion Likely; Flows Will Be Staggered
- Major Theft in ICICI Bank’s Currency Chest Heightens Concerns of Poor Controls
- Signature Global (India) Pre-IPO Tearsheet
NIFTY100 Index Rebalance Preview: Couple of Changes in August, Then 5 More in September
- Life Insurance Corp of India (LIC) (LICI IN) and Tata Power (TPWR IN) will replace Nmdc Ltd (NMDC IN) and Piramal Enterprises (PIEL IN) at the close on 5 August.
- In September, Adani Wilmar (AWLTD IN), Indian Railway Catering and Tourism (IRCTC IN), Bharat Electronics (BHE IN), Hindustan Aeronautics Ltd (HNAL IN) and Mphasis Ltd (MPHL IN) are potential inclusions.
- At over 4 days of deliverable volume to trade, the impact is especially large on Bharat Electronics (BHE IN), Zydus Lifesciences Ltd (ZYDUSLIF IN) and Lupin Ltd (LPC IN).
Kotak Mahindra Bank (KMB IN): FTSE Inclusion Likely; Flows Will Be Staggered
- Kotak Mahindra Bank (KMB) was deleted from the FTSE All-World Index following the introduction of the minimum headroom rule. With foreign room below 20%, the stock was not added back.
- The latest shareholding pattern as of 30 June shows foreign room at 20.01%. This means that Kotak Mahindra Bank (KMB IN) should be added to the index in September.
- However, the inclusion will take place in a staggered manner. Subject to foreign room staying above 20%, the inflows will come over the next couple of years.
Major Theft in ICICI Bank’s Currency Chest Heightens Concerns of Poor Controls
- Major theft of Rs 342 mn ($4.3mn) in ICICI Bank Ltd (ICICIBC IN) ‘s currency chest near Mumbai
- Apparently a single ICICI Bank staff responsible and shockingly had sole access to the currency chest
- Reflects extremely poorly on ICICI Bank’s currency chest security protocols and processes and heightens concerns of reputational and operational risk at the bank
Signature Global (India) Pre-IPO Tearsheet
- SignatureGlobal India Pvt Ltd (1468641D IN) is looking to raise around US$125m in its upcoming India IPO. The deal will be run by Axis, ICICI, and Kotak.
- Signature Global is a real estate development company in India, with its primary operations being the development of residential real estate projects in the affordable and mid segment.
- As of FY22, it had completed five projects with a land area of 34.9 acres and an aggregate saleable area of 2.86m sqft.
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