Equitas Small Finance Bank may launch IPO on October 20


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Equitas Small Finance Bank may launch IPO on October 20

The initial public offer (IPO) of Equitas Small Finance Bank (ESFB) is expected to be launched on October 20, 2020. The issue was earlier scheduled for subscription by the end of March 2020. However, the offer was put on hold due to the spread of COVID-19 disease.

Equitas Small Finance Bank (ESFB) had earlier filed the draft red herring prospectus (DRHP) on December 16, 2019.

The fresh issue of equity shares for its proposed IPO was revised recently downward to Rs 280 crore from Rs 550 crore planned earlier. The IPO consists of a fresh issue of 8 crore equity shares and an offer for sale of 7.2 crore equity shares.

“The size of the fresh issue has been reduced from up to Rs 5,500 million (Rs 550 crore) to up to Rs 2,800 million (Rs 280 crore) and the number of equity shares offered through the offer for sale by the company (EHL) has been reduced from up to 80,000,000 equity shares to up to 72,000,000 equity shares,” EHL said in a regulatory filing.

Reportedly, merchant bankers might have fixed the price band at Rs 34-35 per share and the closing date for the issue could be October 22, 2020. The total issue size could be Rs 532 crore, as per the price band.

JM Financial, Edelweiss Financial Services and IIFL Securities have been appointed as book-running lead managers to the ESFB IPO.

As per the additional information to its DRHP filed with the market regulator, promoter Equitas Holdings held 95.49 per cent stake in Equitas Small Finance Bank. The offer includes a reservation of up to Rs 1 crore worth of shares for eligible employees of Equitas Small Finance Bank and Rs 51 crore

By Brian Watson, CFA

September brought energy market volatility that carried over to midstream equity prices. During the month, midstream sector participants continued placing growth projects into place, while also finding creative ways to reduce capital expenditure requirements. Bond investors have taken notice, but equity valuations continued to lag likely due to lackluster fund flows.

MLP market overview

Midstream MLPs, as measured by the Alerian MLP Index (AMZ), ended September down 13.6% on a price basis and once distributions are considered. The AMZ results underperformed the S&P 500 Index’s 3.8% total return loss for the month. The best performing midstream subsector for September was the Propane group, while the Gathering and Processing subsector underperformed, on average.

For the year through September, the AMZ is down 50.5% on a price basis, resulting in a 46.2% total return loss. This compares to the S&P 500 Index’s 4.1% and 5.6% price and total returns, respectively. The Propane group has produced the best average total return year-to-date, while the Gathering and Processing subsector has lagged.

MLP yield spreads, as measured by the AMZ yield relative to the 10-year U.S. Treasury bond, widened by 219 basis points (bps) over the month, exiting the period at 1,410 bps. This compares to the trailing five-year average spread of 665 bps and the average spread since 2000 of approximately 412 bps. The AMZ indicated distribution yield at month-end was 14.8%.

Midstream MLPs and affiliates raised no new marketed equity (common or preferred, excluding at-the-market programs) and $3.0 billion of debt during the month. No new asset acquisitions were announced in September.

Spot West Texas Intermediate (WTI) crude oil exited the month at $40.22 per barrel, down 5.6% over the period and 25.6% lower year over year. Spot natural gas prices ended September at $1.63 per million British thermal

Fancy house with today's mortgage rates graphics.

Image source: Getty Images

Mortgage rates have been relatively stable in recent weeks, which is good news for borrowers since they continue to remain near record lows. Today, while rates ticked up very slightly, borrowers will still find very competitive mortgage rates that are well worth locking in. Here’s what you need to know about average mortgage rates for Oct. 12.

Mortgage Type Today’s Interest Rate
30-year fixed mortgage 2.908%
20-year fixed mortgage 2.758%
15-year fixed mortgage 2.374%
5/1 ARM 3.336%

Data source: The Ascent’s national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 2.908%, up .005% from Friday’s average rate of 2.903%. Rates below 3.00% used to be unheard of, but have become the norm in recent weeks. At today’s average rate, your monthly payment for principal and interest would total $417 per $100,000 borrowed and total interest costs over the loan’s life would be $49,997 per $100,000 in mortgage debt.

Check out The Ascent’s mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you’d save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.

20-year mortgage rates

The average 20-year mortgage rate today is 2.758%, up .006% from Friday’s average of 2.752%. The monthly payment for principal and interest if you qualify for a loan at today’s average rate would be $543 per $100,000 in mortgage debt, while total interest costs would add up to $30,215 per $100,000 over the life of the loan.

Savvy borrowers will notice that while the interest rate is a bit below the rate on a 30-year loan, monthly payments are much higher. This occurs due to the faster repayment timeline, which also

RIYADH, Saudi Arabia, Oct. 12, 2020 /PRNewswire/ — The fourth G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting will be held virtually on October 14 under the Saudi G20 Presidency to discuss the global economic development and support a swift and sustained global economic recovery. FMCBGs will also discuss updates to the G20 Action Plan – Supporting the Global Economy through the COVID-19 Pandemic (the G20 Action Plan) – in addition to the progress made on the G20 Debt Service Suspension Initiative and its proposed extension into 2021.

After the conclusion of the meeting, a virtual press conference will be conducted at 6:15 PM Riyadh time (UTC+3) by the Saudi Finance Minister Mr. Mohammed Al Jadaan, and the Saudi Arabian Monetary Authority Governor Dr. Ahmed Al Kholifey.

The media is invited to submit questions for the virtual press conference online via the official form at https://bit.ly/3lAkiOJ or by emailing [email protected] directly.

All questions from the media will be submitted to the press conference moderator. Every attempt will be made to answer as many questions as possible during the allocated timeframe.

The press conference will be live-streamed on Twitter at https://twitter.com/g20org as well as the IMF/WB Annual Meetings Official Website at https://meetings.imf.org/en/2020/Annual.

 

Cision
Cision

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SOURCE Saudi G20 Presidency

Source Article

What’s happening now, and what it may mean going forward.

A quick summary

  • The dip-buyers are now just 2.9% away from making a new market high.
  • The earnings recession continues, but forward estimates look rosy.
  • Inflation is ticking higher from a very low base.
  • Big Tech has lost some of its mojo.
  • A COVID-19 vaccine is getting closer but is not yet in sight.

The S&P 500 was up 3.8% last week

It was a strong week, up 4 out of 5 days. The only downer was Tuesday, when Trump said he was ending congressional talks regarding a second round of stimulus payments until after the election. That didn’t play well, so he reversed course on Wednesday and the market rallied.

What caught my eye on the above chart, by Jill Mislinski from AdvisorPerspectives, were the three consecutive gap openings after Tuesday’s selloff. Gap openings are not uncommon, but three in a row are. It’s a sign of bullish enthusiasm.

This is the most overstretched market in history

If you believe, as I do, that mean reversion (regression to trend) is a natural law of the market – as gravity is to physics – this chart should concern you. (It also comes from Jill Mislinski.)

The S&P 500 is now trading 132% above its long-term trend. That’s higher than it was at the height of the 2000 Tech Bubble, and higher than the 1929 peak when cabbies and shoe-shine boys were giving stock tips to their customers.

The Sector Returns

Sorted by YTD returns, this table gives a snapshot of where the money is being invested. Technology is the dominant sector at every time frame (with the exception of 1-Month), and Energy comes in dead last.

Earnings and Earnings Estimates

The chart below shows the S&P 500 (blue line, left