Why Japanese stock market affected by US
Japanese stock markets took their biggest plunge since 1987 on Monday, sending shockwaves through global markets. But the next day, Japanese markets rallied strongly, recording their biggest daily gain since 2008, The Washington Post reports.
Chaos in global financial markets this week caused turmoil in Asia, the US and elsewhere. But Japan, the world’s fourth-largest economy, is having a particularly tumultuous time.
That’s partly because of what’s happening in the world’s largest economy: Unexpectedly low US employment numbers in July and rising unemployment, and the likelihood that the Federal Reserve will cut interest rates in response, have led to fears of slowing growth in the United States and around the world.
On top of that, rapid changes in the value of the Japanese currency and recent monetary policy decisions by the Bank of Japan have further fuelled panic in the market, experts say. Kyle Rodda, a senior market analyst at Capital.com who is based in Melbourne, Australia, said:
Signs of weakness in the US economy have acted as the spark for these events, while the technical factors in Japanese financial markets are the fuel.
Why have Japanese markets been hit so hard?
A combination of factors caused the Japanese market to suffer badly last week – Monday saw the biggest one-day drop since 1987 – including the rapid strengthening of the Japanese currency, experts said.
The yen has been weak against the dollar for the past five years, losing more than 40 per cent of its value, but it has strengthened in recent weeks, hitting its highest level against the dollar since March on Thursday.
That followed a rare decision by the central bank, the Bank of Japan, to raise interest rates.
According to Hirokazu Kabeya, chief global strategist at Daiwa Securities in Tokyo, the yen’s rise has fuelled fears that earnings at export-oriented Japanese companies will fall. Those concerns have contributed to falling stock prices and rising sales, Kabeya said.
Technology stocks around the world also fell after the Biden administration said last month it would impose further restrictions on semiconductor exports to China. The announcement affected markets with major chip makers such as Japan, South Korea and Taiwan.
Then the US jobs report on Friday fell short of market expectations, leading to uncertainty about the US economy and questions about whether the Federal Reserve would intervene. A few days earlier, the FED left interest rates unchanged, according to The Washington Post.
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Ajay Devgn enters stock market; invests Rs 2.74 crores in Panorama Studios International
Ajay Devgn has entered the stock market by investing ₹2.74 crore in Panorama Studios International, a film production company.
Bollywood superstar Ajay Devgn has invested significantly in Panorama Studios International, a film production company experiencing a remarkable stock market rise. The Singham actor acquired 1 lakh equity shares through a preferential issue, injecting Rs 2.74 crores into the small-cap company.
Panorama Studios recently issued 10 lakh equity shares and 15.41 lakh warrants to promoters and non-promoters. Ajay joined nine other investors, collectively contributing Rs 24.66 crores to the preferential share allotment, as per regulatory filings. Devgn's investment translates to Rs 274 per share.
Panorama Studios International's stock price has seen a significant upward trend in 2024. It has gained over 176% year-to-date and a staggering 255% in the past three months. Notably, the stock has delivered exceptional multi-bagger returns exceeding 884% in the last year.
This investment holds additional significance as the 54-year-old actor has previously collaborated with Panorama Studios on successful films like Dil Toh Baccha Hai Ji, Raid, and Drishyam. A few weeks ago, Panorama Studios announced production agreements for three Punjabi films: Carry On Jettiye, Ardaas 3, and Manje Bistre 3, partnering with Humble Motion Pictures FZCO and Reliance Industries (JIO Studios).
Additionally, Panorama Studios is working on a Hollywood remake of the Drishyam franchise with Gulfstream Pictures and JOAT Films. The studio reportedly aims to produce Drishyam in 10 countries over the next three to five years.
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Corrtech International IPO Date, Price, Company profile, risk & financial details
New Post has been published on https://wealthview.co.in/corrtech-international-ipo/
Corrtech International IPO Date, Price, Company profile, risk & financial details
Corrtech International IPO: Corrtech International is a leading provider of pipeline laying solutions in India, specializing in hydrocarbon pipelines. They also manufacture precision components for gas and steam turbines, and serve the aerospace and defense sectors. The company operates in a crucial industry for India’s energy infrastructure and economic growth.
Corrtech International IPO Key Details:
Status: Corrtech International’s IPO has not yet launched.
Issue Size: The planned IPO will consist of:
Fresh issue: Rs. 350 crore worth of new equity shares.
Offer for Sale: 40 lakh shares from existing shareholders.
Price Band: The price band for the issue is yet to be finalized.
News & Developments:
Corrtech International received SEBI approval for the IPO in July 2022, but no further updates have been announced since then.
Recent developments in the oil and gas sector, including rising energy prices, could potentially boost investor interest in the company.
Given the company’s established position in a critical industry and the potential benefits of rising energy prices, Corrtech International IPO could attract investor interest. However, the lack of updates on the issue timeline and uncertainties in the broader market may dampen enthusiasm.
Corrtech International IPO Offer Details:
Securities Offered:
Corrtech International IPO will offer equity shares only. These are units of ownership in the company, and investors who subscribe to the IPO will become shareholders.
Investor Category Reservation:
As the IPO details haven’t been finalized, the specific reservation percentages for different investor categories are still unknown. However, based on typical Indian IPOs, the reservation could be something like:
Retail Investors: 35%
Qualified Institutional Buyers (QIBs): 50%
Non-Institutional Investors: 15%
Minimum Lot Size:
The minimum lot size for the IPO will likely be one bid lot. This typically represents a specific number of shares, for example, 100 shares. The final minimum lot size will be confirmed closer to the issue date.
Investment Amount:
The amount required to invest will depend on the minimum lot size and the final issue price. Once the price band is announced, you can multiply the minimum lot size by the lower and upper price band to estimate the minimum and maximum investment amounts.
Example:
If the minimum lot size is 100 shares and the price band is Rs. 20-25 per share, the minimum investment amount would be Rs. 2,000 (100 shares * Rs. 20), and the maximum investment amount would be Rs. 2,500 (100 shares * Rs. 25).
For more details refer Corrtech International Limited, Draft Offer Documents filed with SEBI.
Corrtech International Company profile:
History & Operations:
Founded in 1982: Corrtech has 41 years of experience in India’s crucial pipeline construction sector.
Core Businesses:
Pipeline Construction: Lays oil and gas pipelines with expertise in cross-country and directional drilling techniques.
Cathodic Protection Solutions: Protects pipelines from corrosion, ensuring their longevity and safety.
Precision Components: Manufactures high-quality parts for gas and steam turbines, catering to aerospace and defense sectors through subsidiary Corrtech Energy Limited (CEL).
Market Position & Share: A leading player in India’s pipeline laying segment, with a significant market share. Exact figures vary depending on project type and region.
Key Facts:
Headquarters: Ahmedabad, Gujarat, India
Employees: Over 1,000
Revenue: Over INR 500 crore (as of March 2021)
Awards & Recognitions: Received numerous awards for operational excellence, safety, and sustainability.
Prominent Brands & Partners:
Brands: “Corrtech” is the main brand, recognized for pipeline expertise.
Subsidiaries: CEL leverages the Corrtech brand while specializing in precision components.
Partnerships: Works with major oil and gas companies, engineering firms, and government agencies on various projects.
Milestones & Achievements:
Successfully completed over 10,000 km of pipeline projects.
Developed proprietary trenchless technology for environmentally friendly pipeline construction.
Established CEL as a leading supplier of precision components to high-profile clients.
Competitive Advantages & USP:
Experience & Expertise: Established track record, skilled workforce, and proven project execution capabilities.
Integrated Services: Offers end-to-end solutions from construction to corrosion protection.
Technological Innovation: Continuous investment in R&D for efficient and sustainable pipeline solutions.
Diversification: Strong presence in multiple sectors strengthens financial stability.
Corrtech International Financials:
Particulars March-2022 March-2021 March-2020 Total Assets 766.32 618.99 594.77 Total Expenses 990.21 956.21 733.88 Total Revenue 1065.75 995.97 784.72 Profit After Tax 49.72 28.55 34.94 EBITDA 120.71 95.62 97.87
Lead Managers and Registrar for Corrtech International IPO:
Lead Managers:
DAM Capital Advisors Limited:
Track record: Managed 14 IPOs in the past 2 years, including successful offerings for companies like Concord Enviro Systems Limited, Galaxy Surfactants Limited, and Astron Paper & Board Mills Limited.
Equirus Capital Private Limited:
Track record: Extensive experience managing over 80 IPOs across various sectors, including recent successful offerings for Karda Therapeutics Limited, Chemcon Specialities Limited, and Amber Enterprises India Limited.
Registrar:
Link Intime India Private Limited:
Role in the IPO process:
Handles investor account management and share allotment.
Processes refunds for unallocated bids.
Facilitates dematerialization of shares after listing.
Acts as a communication channel between the company and investors.
Potential Risks and Concerns for Corrtech International IPO:
Industry Headwinds:
The oil and gas industry, which is a major source of revenue for Corrtech, is cyclical and faces headwinds like fluctuations in oil prices, environmental regulations, and competition from renewable energy sources. These factors could impact the company’s future growth and profitability.
Company-Specific Challenges:
Reliance on a few major customers: Corrtech’s dependence on a limited number of customers, primarily oil and gas companies, exposes them to the risk of losing significant revenue if contracts are terminated or renegotiated.
Debt burden: The company has a significant debt load, which could limit its financial flexibility and impact its ability to invest in growth initiatives.
Financial track record: While the company has shown improvement in recent years, its past history of loan defaults raises concerns about its financial stability and ability to manage debt.
Competition: Corrtech faces intense competition from other established players in the pipeline laying and EPC services industry. This could put pressure on margins and limit growth potential.
Financial Health Analysis:
Revenue: While Corrtech has reported revenue growth in recent years, it is important to analyze the sustainability of this growth and its dependence on specific projects or contracts.
Profitability: The company’s profitability remains low compared to its peers. Investors should carefully assess the profitability margins and future growth projections to evaluate potential returns.
Debt-to-equity ratio: The high debt-to-equity ratio indicates a significant reliance on debt financing, which can increase financial risk. Investors should examine the company’s debt repayment plan and its ability to manage its debt burden.
Conclusion:
While Corrtech International IPO presents an opportunity for potential growth, it is crucial to be aware of the associated risks and uncertainties. Investors should carefully analyze the company’s financial health, industry headwinds, and market volatility before making any investment decisions. Thorough due diligence and seeking professional advice are essential steps towards a well-informed investment choice.
Also Read: How to Apply for an IPO?
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