US inflation data for September shows an unexpected rise due to increased gasoline costs and broader price pressures. As a result, the Nasdaq index closed sharply lower, influenced by concerns over potential interest rate hikes. Major AI-related stocks, including Oracle and CoreWeave, experienced significant declines following the inflation report. In financial news, Bank of America reported a decrease in profits due to regulatory costs.
Tonbo Imaging raised Rs 255 crore from anchor investors ahead of its Rs 852 crore IPO, allotting shares at the upper price-band limit of Rs 700. The entirely offer-for-sale issue will open on October 15 and close on October 19.
Amid rising inflation, major AI firms like CoreWeave and Dell Technologies experienced significant stock price drops, losing around $80 billion in market value. Increased US interest rates have investors worried about the borrowing hurdles faced by less profitable firms within the sector. Even with the strong performance of giants like Nvidia and Microsoft, skepticism remains high, reminiscent of the dot-com era's cautionary tales.
Zetwerk Manufacturing Businesses raised Rs 2,251 crore from 99 anchor investors, including BlackRock, Goldman Sachs and Nomura, ahead of its IPO opening on October 15. The Rs 5,012 crore issue, priced at Rs 143–151 per share, comprises a fresh issue and an offer for sale. Subscription closes on October 19.
Michelle Bowman, the Vice Chair for Supervision of the US Federal Reserve, spoke during the IMF-World Bank meetings in Bangkok. She stated that the central bank does not feel urgency for further rate hikes at this time. Bowman's comments came after a recent rate increase that set the target range to 3.75%-4.00%. Additionally, she addressed the need for stronger oversight in light of recent bank failures.
Jio Platforms’ IPO grey market premium climbed to Rs 220 after the company filed its red herring prospectus (RHP) on Wednesday. The GMP implies a nearly 20% premium over the upper price band of Rs 1,119. The Rs 30,213 crore IPO, opening on October 21 and closing on October 23, is set to surpass Hyundai Motor India’s 2024 offering to become India’s largest-ever public issue.
Reliance Jio Platforms has highlighted five key strengths in its RHP ahead of its Rs 30,213 crore IPO, including strong revenue growth, profitability, a vast customer base, extensive network infrastructure and proprietary technology. The company also sees growth opportunities in fixed broadband, AI-led services, digital subscriptions and overseas technology monetisation.
Sebi has confirmed interim restrictions on Rajesh Exports and promoter Rajesh Mehta, citing unresolved concerns over financial disclosures, possible misrepresentation and the routing of company funds through personal accounts. The regulator said gaps in consolidated revenue disclosures and missing supporting records remain, while directing the company to maintain accurate financial and related-party disclosures.
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