InterGlobe Aviation on Tuesday made a dream debut on the stock market as its shares climbed more than 14% on the day of listing, bucking the trend in broader markets.

The stock closed at R878.45 on the BSE, up R113.45 or 14.83% from the initial public offering (IPO) price of R765 per share. The shares listed at Rs 856 on the BSE.

More than 3.24 crore of InterGlobe’s shares exchanged hands on the BSE and the NSE, and the first day jump pegs the company’s market valuation at Rs 31,655 crore.

InterGlobe’s first day performance is the fourth best among the companies listed on the bourses this calendar year. VRL Logistics rose 43% on the listing day, followed by Inox Winds (34.7%) and Syngene International (24.1%).

The company had raised R3,010 crore through the public issue last month by allotting shares at R765 per share. The issue was subscribed more than six times with support from qualified institutional buyers (QIBs) and high net worth individuals (HNIs) such as Rakesh Jhunjhunwala.

InterGlobe, the company that owns and operates low-cost airline Indigo Airlines, was the biggest IPO since Bharti Infratel’s issue in December 2012. This year, 18 companies have raised more than R11,000 crore from the primary markets – the highest in five years.

InterGlobe’s share sale is also the first by an Indian airline since the 2006 listing of Deccan Aviation, which was later taken over by Kingfisher Airlines. Jet Airways, then India’s largest private airline, raised R1,900 crore in February 2005.

India’s airlines lost a combined $10 billion in the past six years as fierce competition forces them to sell tickets below cost and provincial taxes on jet fuel drive up their expenses.

Founded by former US Airways chief executive officer Rakesh Gangwal and former travel agent Rahul Bhatia, IndiGo hopes to give the lie to legendary investor Warren Buffett, who famously swore off airline stocks after his $358 million “mistake” with US Airways Group before Gangwal’s time.

“I guess our founders disregarded that advice 10 years ago, and have gone from millionaires to billionaires today,” IndiGo president Aditya Ghosh said Tuesday about Buffett’s view on airlines. “The opportunities that India provides are vast. If you can create the right product, there will be demand.”

IndiGo is the only Indian airline to turn a profit in each of the past seven years, taking advantage of a burgeoning middle-class in the world’s second most populous nation. The carrier is taking advantage of low fuel prices to pursue an ambitious growth agenda. In August IndiGo firmed up an order to buy as many as 250 A320neo single-aisle jets for $26.6 billion. This came comes after IndiGo’s $15 billion order in January 2011 for 180 Airbus planes.

IndiGo had an enterprise value-to-sales ratio of 2.1, calculated using the offer price of R765 rupees and earnings in the year ended March 31, according to IIFL India Private Clients. Both Jet Airways and SpiceJet have a ratio of 0.7, the brokerage said in a note on October 26.

Shares of Hindustan Petroleum Corp Ltd (HPCL) on Tuesday fell by 5.5 per cent after the firm reported a net loss of Rs 320.50 crore for the July-September quarter. (Reuters)

Shares of Hindustan Petroleum Corp Ltd (HPCL) on Tuesday fell by 5.5 per cent after the firm reported a net loss of Rs 320.50 crore for the July-September quarter.

The stock dipped 5.3 per cent to Rs 751.75 on BSE. At NSE, shares of the company declined by 5.52 per cent to Rs 751.25.

State-owned HPCL had yesterday reported a net loss of Rs 320.50 crore in July-September quarter due to huge inventory losses.

The company had a net profit of Rs 850.21 crore in the same period a year ago, HPCL Director, Finance J Ramaswamy said.

“The loss was mainly because crude oil dropped by USD 10 per barrel resulting in an inventory loss of Rs 1,400 crore. Also there was a foreign exchange loss of Rs 180 crore,” he said.

The drop in oil prices also meant that turnover dipped to Rs 42,072.27 crore from Rs 51.667.02 crore last year.

PREL has signed the Power Purchase Agreement with Maharashtra State Electricity Distribution Co. Ltd for 13 years on the preferential Tariff as decided by Maharashtra State Electricity Regulatory Commission from time to time. (Photo: PTI)

Gammon Infrastructure Projects share price surged as much as 10 per cent in the morning trade on Tuesday after the company informed BSE that its wholly owned subsidiary – Pravara Renewable Energy (PREL), has completely synchronized its 30MW bagasse based cogeneration power project at Pravaranagar, Ahmednagar district in Maharashtra on Nov 6, 2015 and started the commercial production of electricity and export of power to state grid.

At 11.55 am, the share price of Gammon Infra was up 4.70 per cent at Rs 7.35. The scrip opened at Rs 7.10 and had touched a high and low of Rs 7.73 and Rs 7.05, respectively, in trade so far. Sensex was down 0.57 per cent at 25,972.95.

In a BSE filing, GMR Infrastructure Projects said, “PREL has signed the Power Purchase Agreement with Maharashtra State Electricity Distribution Co. Ltd for 13 years on the preferential Tariff as decided by Maharashtra State Electricity Regulatory Commission from time to time.”

The BSE group ‘B’ stock of face value Rs 2 has touched a 52 week high of Rs 20.85 on 20-Nov-2014 and a 52 week low of Rs 6.52 on 09-Nov-2015.

Last one week high and low of the scrip stood at Rs 7.73 and Rs 6.52 respectively. The current market cap of the company is Rs 702.48 crore.

The promoters holding in the company stood at 58.45 per cent while institutions and non-institutions held 25.83 per cent and 15.72 per cent, respectively.

Gammon Infrastructure Projects is an infrastructure project development company incorporated by Gammon India, to participate in the development of infrastructure projects on a public private partnership (PPP) basis.

Dr Lal PathLabs has received market regulator Sebi’s approval to raise funds through an initial public offering (IPO).

Leading diagnostic chain Dr Lal PathLabs has received market regulator Sebi’s approval to raise funds through an initial public offering (IPO).

The company filed its Draft Red Herring Prospectus (DRHP) with Sebi on September 14 for the IPO, wherein the promoters and other existing shareholders will collectively sell 1.16 crore shares of the company amounting to 14.1 per cent stake.

The Securities and Exchange Board of India (Sebi) has cleared the proposed initial share sale and gave its final observations on the IPO on November 3.

The total amount of funds to be raised through the public offer would depend on the offer price to be decided later.

Those participating in the share sale include main promoter Arvind Lal, as also other investors such as Wagner Ltd, Westbridge Crossover Fund and Sanjeevini Investment Holdings Ltd.

As per the DRHP filed with Sebi, the IPO would be made through an offer for sale and the proceeds would be remitted to the respective promoters and other investors and therefore the company will not receive any proceeds from the offer.

Kotak Mahindra Capital and Citigroup Global Markets India are the book running lead managers for the IPO.

The company said it is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.

Its total revenue rose to Rs 640 crore in the fiscal ended March 31, 2015, from Rs 544 crore in the previous year, while profit after tax rose to nearly Rs 88 crore from Rs 74 crore during the same period.

Since the beginning of 2015, as many as 39 companies filed draft documents with Sebi to float IPOs. In the same period, the market watchdog gave approval to 30 firms to launch their initial share sale plans, some of which were pending from previous year.

So far this year, 18 companies have launched their IPOs and have collectively raised about nearly Rs 11,000 crore, making it the best period in four years in terms of fund raising through initial share-sale programmes.

In comparison, six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

The BSE Sensex and NSE Nifty opened in red on Tuesday tracking weak global cues. Sensex opened 27.31 points down at 26,094.09. (Express photo by Heena Khandelwal)

2.17 pm: Cox & Kings owned Meininger Hotels has signed an agreement for the Meininger Hotel in Spain, which will be located on Gran Via in the south-west part of the city. The 186 room and 682 bed hotel is scheduled to open by the end of 2018. The proposed hotel is ideally located in an important area of Barcelona at a main avenue of the city and connected to the city centre as well as the airport by good access to public transportation. The share price of the company was 2.06 per cent at Rs 253. Sensex was down 188 points at 25,933.

1.43 pm: GVK Power & Infrastructure’s consolidated net loss narrowed to Rs 123.5 crore during the quarter ended September 30, on higher income from operations particularly power and airports segments. The company posted net loss of Rs 235.57 crore for the quarter ended September 30, 2014. Shares of GVK Power was up 4.22 per cent at Rs 7.90. The scrip opened at Rs 7.61 and had touched a high and low of Rs 8.19 and Rs 7.52, respectively, in trade so far. Sensex was down 254 points at 25,867.

1.32 pm: Meanwhile, National Buildings Construction Corporation has informed BSE that the All India Institute of Medical Sciences (AIIMS) has conveyed its intent to entrust the work for development of JPN Trauma Centre Campus at AIIMS to NBCC. The share price of NBCC was up 0.34 per cent in the afternoon trade. Sensex was down 266 points at 25,855.

1.28 pm: The Indian government is planning to sell a 5 per cent stake in state-run Container Corp, a notice seeking interest from investment banks to manage the sale worth about $200 million at current market price showed. The government, which owns 61.8 per cent of Container Corp, will sell the stake through a stock market auction. The share price of Container Corporation was up 1.46 per cent at Rs 1,421. 

1.18 pm: Tata Steel has joined hands with a leading UAE-based petrochemical company, aimed at broadening its market base for energy sector products in the Middle East. Recognising the need to have local representation in Abu Dhabi, Tata Steel has announced collaboration with International Development Company (IDC) which will support it in obtaining national oil company approvals, that are required in the region.

The share price of Tata Steel was trading 1.96 per cent down at Rs 217.80. Sensex was down 230 points at 25,981.

1.11 pm: Shares of Hindustan Petroleum Corp Ltd (HPCL) was down over 5 per cent after the firm reported a net loss of Rs 320.50 crore for the July-September quarter.

12.40 pm: Sensex was down 250 points at 25,870. In the 30-share index, Bajaj Auto, Hero MotoCorp and Axis Bank were up 1.99 per cent, 1.33 per cent and 1.12 per cent, respectively.

11.59 am: Shares of Gammon Infrastructure gained as much as 10 per cent in the morning trade on Tuesday after the company informed BSE that its wholly owned subsidiary – Pravara Renewable Energy (PREL), has completely synchronized its 30MW bagasse based cogeneration power project at Pravaranagar, Ahmednagar district in the state of Maharashtra on November 06, 2015 and started the commercial production of electricity and export of power to state grid.

11.39 am: Brokers said sentiments remained bearish on sustained foreign fund outflows and a weak trend at other Asian markets, tracking overnight losses at the US markets as poor Chinese data and a fall in crude oil prices weighed on the market. Nifty 50 index was down 51.45 points at 7,863.

11.32 am: NHPC shares jumped over 3 per cent on Tuesday after the company on Monday posted a 72.62 per cent jump in its net profit in the September quarter, even as the company announced it is in talks with private firms to buy stake in hydro-power projects in Arunachal Pradesh. Sensex was down 150 points at 25,970.

10.53 am: Shares of Oil and Natural Gas Corp (ONGC) was down around 4 per cent on Tuesday. ONGC on Friday reported a 11 per cent drop in September quarter net profit as slumping global crude prices hurt its revenues. Net profit in the July-September quarter at Rs 4,842.02 crore was 11 per cent lower than Rs 5,444.89 crore clocked in the same period of last fiscal.

10.41 am: Meanwhile, Havells India reported 0.93 per cent rise in its net profit at Rs 120.72 crore for the quarter ended September 30, 2015 as compared to Rs 119.61 crore for the same quarter in the previous year. However, the company’s total income has decreased by 1.24 per cent to Rs 1,359.41 crore for the quarter under review from Rs 1,376.54 crore for the corresponding quarter of the previous year. The share price of the company was down 0.12 per cent at Rs 258.

10.10 am: InterGlobe Aviation, which runs no-frills carrier IndiGo, made a strong debut on the bourses on Tuesday at an opening price of Rs 856 on BSE and Rs 855.80 on NSE. The shares surged over 15 per cent against the issue price of Rs 765 in the early trade. Sensex was down 148 points at 25,972.

9.55 am: Among other Asian markets, Hong Kong’s Hang Seng was down
0.85 per cent, while Japan’s Nikkei shed 0.75 per cent in early trade today. Shanghai Composite index dropped 0.81 per cent.

9.41 am: The rupee rose by 5 paise at 66.39 against the US dollar in early trade today on fresh selling of the American currency by exporters.

9.34 am: Leading diagnostic chain Dr Lal PathLabs has received market regulator Sebi’s approval to raise funds through an initial public offering (IPO). The company filed its Draft Red Herring Prospectus (DRHP) with Sebi on September 14 for the IPO, herein the promoters and other existing shareholders will collectively sell 1.16 crore shares of the company amounting to 14.1 per cent stake. Sensex was down 128.40 points at 25,993.

9.23 am: Sensex was down 143 points at 25,978. Nifty was down 40.35 points at 7,874. InterGlobe Aviation, which runs no-frills carrier IndiGo, will list its shares on the stock exchanges on Tuesday. The equity shares would be listed on the National Stock Exchange (NSE) as well as BSE. The company has raised Rs 3,008.5 crore at issue price of Rs 765 per share from its recently concluded, over-subscribed initial public offering (IPO).

9.15 am: The BSE Sensex and NSE Nifty opened in red on Tuesday tracking weak global cues. Sensex opened 27.31 points down at 26,094.09. Nifty opened 37.60 points down at 7,877.60.

Asian shares slipped to one-month lows on Tuesday as the spectre of higher borrowing costs in the United States and slower global economic growth prompted investors to trim their exposure to riskier assets.

Back home, the BSE Sensex staged a spectacular recovery from over 600-point deficit logged in early trade on Monday, but settled 144 points lower at 26,121.40 on BJP-led NDA’s defeat in Bihar assembly polls.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The market has been volatile with a negative bias as the Bihar election results influenced the sentiments of investors on Monday. This impact may be short lived as the market recovered from its low of 7,771 to close at 7,915. Going forward, the market is likely to focus on policy reforms and global events like US FED policy & Chinese data.”

Indian rupee extending it weakness for the third straight day on Monday depreciated substantially against dollar on strong demand for American currency from banks and importers, amid sharp surge in dollar globally on data showing a stronger-than-expected rise in US non-farm payrolls in October. Besides, sell-off in the equity market also hit the rupee sentiment. The Indian rupee slumped to over 1-month low. This is the lowest level of the rupee since September 16 when it had hit 66.51. Finally, the rupee ended at 66.44, 68 paise weaker from its previous close of 65.76 on Friday.

Stock markets will remain closed on Wednesday and Thursday for Diwali Laxmi pujan and Diwali Balipratipada, except for a one-hour Muhurat trading on Wednesday evening. Both the stock exchanges, Bombay stock Exchange (BSE) and National Stock Exchange (NSE), will conduct a special Muhurat Trading session on account of Diwali on November 11. Trading would be conducted between 5.45 pm and 6.45 pm on the day.

(With inputs from agencies)