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Indian Express
01-07-2025
- Business
- Indian Express
India's IPO market eyes $2.4 billion in offerings in July as confidence rebounds
Indian firms could raise some $2.4 billion through IPOs in July, investment bankers said, raising hopes of a sustained revival in primary offerings after demand was dented by the US trade war and global geopolitical tensions earlier this year. That amount would mark the strongest month since December and would follow a robust $2 billion raised in June, though most of that was raised by one company, HDB Financial Services. Education loan provider Credila Financial Services, National Securities Depository Ltd (NSDL), surveillance firm Aditya Infotech and power-transmission-goods maker M&B Engineering are conducting roadshows and are expected to go public this month, bankers said. They spoke on condition of anonymity as the companies have yet to make the timing of their IPOs and other details public. The companies did not respond to Reuters requests for comment. India's IPO market had its best-ever year in 2024, with $20.5 billion raised, second only to the US, riding high on money inflows from domestic investors who have become wealthier on growth in the world's fifth-largest economy and were optimistic about more economic growth. This year was widely expected to be another record year but US President Donald Trump's trade war, tensions with Pakistan and in the Middle East took much wind out of those IPO sails. South Korean conglomerate LG Electronics' ( opens new tab India unit ( opens new tab and other companies ended up delaying their capital raising plans. Things now look to be getting back on track, particularly with the Nifty 50 (.NSEI), opens new tab and Sensex (.BSESN), opens new tab having regained lost ground to trade about 3 per cent off from their peaks. 'The IPO market has come back…. The absence of most of the negatives is driving the market more than anything else,' said Suraj Krishnaswamy, the managing director of investment banking at Axis Capital. So far this year, India continues to the world's No. 2 IPO market with $5.86 billion raised, accounting for the 12 per cent of total proceeds globally, LSEG data shows. The largest offering this month is likely to be Credila, which has said it is seeking $584 million. NSDL, India's largest stock depository, is looking to raise $400 million, according to a banker. NSDL received its regulatory nod for a listing as far back as September but market sentiment trended lower not long after on concerns about slower growth for the economy and corporate profits. Details about the two firms' valuations and IPO dates could be announced soon, bankers said. Other major offerings in the pipeline are LG Electronics India's $1.8 billion IPO, and issues from JSW Cement and defence equipment maker SMPP worth around $470 million each, they added. JSW's offering could come in late July or early August, according to one banker. The timing of the other two was less clear. According to PRIME Database, there are 143 Indian IPOs being planned worth a potential $26 billion. Of those, 73 have been approved by regulators. 'We expect the upcoming months to be the best for Indian IPO market as compared to what we have seen so far this year,' Bhavesh Shah, the managing director and head of investment banking at Equirus. Others, however, were more cautious in their optimism, saying that participation from high net worth individuals and ordinary retail investors is unlikely to be as strong as it was last year. 'Investors have become far more selective and are now much more mindful about where they see higher potential for returns,' said Umesh Agrawal, fund manager at 360 ONE Asset.
Reuters
26-06-2025
- Business
- Reuters
Rupee hits two-week high as Fed credibility worries compound dollar's troubles
MUMBAI, June 26 (Reuters) - The Indian rupee strengthened to a fortnightly peak on Thursday, bolstered by broad weakness in the dollar on the back of concerns over the future independence of the U.S. Federal Reserve. The rupee rose 0.4% to close at 85.7050 per U.S. dollar, tracking gains in its regional peers. The dollar index fell to its lowest level since March 2022 and was last quoted at 97.1, down 0.3% on the day. While the dollar had perked up on the back of safe-haven demand during the Iran-Israel conflict, the ceasefire has deflated the geopolitical risk premium. Its troubles were compounded by the prospect of President Donald Trump making an early appointment of the next Federal Reserve Chair, which spurred worries over the independence of the U.S. central bank. "A candidate who is perceived as being more open to lowering rates in line with President Trump's demands would reinforce the U.S. dollar's current weakening trend," MUFG Bank said in a note. The dollar index is down over 10% on the year so far. Among major Asian currencies, the Taiwan dollar led the charge on Thursday with a 0.6% gain, while India's equity benchmarks, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, topped gains in regional stock. Locally, dollar sales from at least two large foreign banks, likely on behalf of custodial clients, also helped the rupee on the day, a trader at a private bank said. Meanwhile, dollar-rupee forward premiums perked up with the 1-year implied yield touching a one-month peak of 2.02% before paring gains. An uptick in wagers on a July Fed rate cut, alongside the Reserve Bank of India's announcement of a measure to withdraw excess cash from the banking system, spurred paying interest on forward premiums, traders said.
Reuters
06-06-2025
- Business
- Reuters
Rupee ends higher as rate-cut boost for equities blunts dollar strength
MUMBAI, June 6 (Reuters) - The Indian rupee strengthened modestly on Friday as the Reserve Bank of India's steepest rate cut in five years boosted local equities, helping the South Asian currency eke out a gain even as the dollar firmed against major peers. The rupee closed at 85.6250 against the U.S. dollar, up from its close at 85.79 in the previous session. The rupee declined 0.2% on the week. The Reserve Bank of India (RBI) cut its key repo rate by 50 basis points on Friday and slashed the cash reserve ratio (CRR) for banks as low inflation gave policymakers room to focus on supporting growth. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, about 1% each on Friday, posting their best one-day gain in two weeks as the rate cut fuelled domestic growth expectations. India's benchmark 10-year bond whipsawed between gains and losses as traders digested the central bank's policy moves, including a shift in stance from 'accommodative' to 'neutral.' The yield on the benchmark paper was last quoted a tad higher at 6.2237%. Meanwhile, dollar-rupee forward premiums fell in reaction to the rate cut with the 1-year implied yield dropping 10 basis points to 1.81%. The Indian central bank's "larger-than-expected 50 bps rate cut and 100 bps cut in the cash reserve ratio should support INR," DBS said in a Friday note. "We will consider lowering USD/INR's forecast if the US Federal Reserve pivots towards a rate cut later this year and sets the stage for more USD weakness," the noted added. On the day, the dollar index was up 0.3% at 98.9 in the run-up to release of closely watched U.S. non-farm payrolls data which will offer cues on how the world's largest economy is faring in the face of trade policy spurred uncertainty.
Reuters
29-05-2025
- Business
- Reuters
Rupee dips tracking Asian peers after court blocks most US tariffs
MUMBAI, May 29 (Reuters) - The Indian rupee weakened on Thursday, weighed down by a broad rebound in the dollar after a U.S. federal court blocked most of President Donald Trump's "reciprocal tariffs" from taking effect. The rupee was at 85.5325 per U.S. dollar as of 11:30 a.m. IST, down 0.2% on the day. Asian currencies were down between 0.1% to 0.6% while the dollar index rose past the 100 handle. However, the benchmark BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab equity indexes were little changed, lagging behind gains in regional peers as markets cheered the court ruling to block Trump tariffs. A U.S. trade court said in its ruling that the country's Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the U.S. economy. The Trump administration has appealed the ruling. Analysts pointed out that the market was showing a knee-jerk reaction to the ruling, which blocked tariff policies that had weighed heavily on the dollar and boosted emerging market currencies, but many added that the initial reaction may lack follow through. "It remains to be seen if this ruling is a game-changer because the Supreme Court has a conservative majority influenced by Trump's appointments," DBS said in a note, adding that "USD is not out of the woods," as concerns about U.S. fiscal health continue to linger. Traders also pointed to dollar bids from foreign banks and local companies weighing on the rupee. It seems like "two-way price action will persist unless it (USD/INR) moves out of the 84.80-86 range," a trader at a Mumbai-based bank said. Dollar-rupee forward premiums fell after markets pared hopes of Federal Reserve rate cuts, pushing near-tenor Treasury yields higher after the release of the minutes of the Fed's May policy meeting. The 1-year dollar-rupee implied yield fell 4 bps to 1.96%, its lowest since December 2024.
Reuters
15-05-2025
- Business
- Reuters
Rupee weakens but Trump's trade deal remark helps contain losses
MUMBAI, May 15 (Reuters) - The Indian rupee fell on Thursday, weighed down by persistent interbank dollar demand, but pared losses after President Donald Trump said that India had offered a zero-tariff trade deal to the United States. The rupee closed at 85.55 against the U.S. dollar, down 0.3% on the day but above its intraday low of 85.7225. The rupee rose above 85.50 in an immediate reaction to Trump's comments but thereafter bids from foreign and local banks picked up, a trader at a Mumbai-based bank said. The dollar bids were likely spurred by corporate demand and modest portfolio outflows, the trader said. The dollar-rupee overnight swap rate also dipped, pointing to heightened demand for cash dollars, which typically indicates a pick up in outflows. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and NSE Nifty 50 (.NSEI), opens new tab, rose about 1.5% with sentiment boosted by Trump's remarks. The United States is India's largest trading partner, with bilateral trade totalling some $129 billion in 2024. New Delhi has sought to clinch a trade deal with the U.S. within the 90-day pause announced by Trump on April 9 on tariff hikes for major trading partners. India's trade data for the month of April is due after the local currency market closes. Investors also await remarks from Federal Reserve Chair Jerome Powell as well as U.S. economic data for cues on the future trajectory of Fed policy rates and the dollar. The dollar index may find near-term support around 100.20 to 100.25 but a fall below that could prompt it to give back more of its recovery over the last three weeks, ING Bank said in a note.
