Market Updates

Market Update 27 Nov. 2020 – Burger King IPO opens next week

— November 28, 2020 comments off

Cadila Healthcare may launch Covid vaccine by Mar ’21

  • As per media reports, Gujarat-based drug maker Cadila Healthcare may introduce Covid vaccine by March 2021. 
  • Results of the Phase-2 trials have been encouraging, and the Phase-3, trials are expected to be conducted in December over a larger participant base. Reports suggest that the company could be looking to manufacture 10 crore doses to begin with.
  • Shares of Cadila Healthcare rose 6.5% today, coupled with a spike in volumes. 

Burger King IPO opens next week

  • Quick-service restaurant chain Burger King will open its ₹810 crore public issue on 2 December 2020. The price band for the issue is ₹59-60 per share.
  • The company plans to use the funds to roll-out new company-owned Burger King restaurants and for general corporate purposes. As per its master franchise and development agreement, it is required to develop and open at least 700 restaurants by December 2026. That is over three times its current count of around 225 restaurants.
  • The issue closes on 4 December 2020 and the shares are expected to get listed on 14 December. 
  • Major quick-service restaurant chains based on market capitalisation: Jubilant Foodworks (-1.4%) and Westlife Development (+2.1%)

Gas distribution companies up on new tariff regulation

  • The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced regulations for a unified tariff structure for gas transmission. The tariffs will be applicable based on a two-zone structure related to the distance from the source of gas.
  • This makes fuel more affordable for users located further away from the source of gas (i.e. coastal zones). Further, a unified structure is expected to encourage gas transmission companies to set up new pipelines, leading to an overall growth in volume. 
  • The news spiked investor interest in shares of gas distribution companies, which surged in the range of 3% to 13% today. 
  • Major gas distribution companies based on market capitalisation: Adani Gas (+9.9%), Indraprastha Gas (+9.5%), Gujarat Gas (+1.1%), GSPL (+5.8%) and Mahanagar Gas (+13.7%)