Morning Buzz: Three IPOs sold out on Day 1; credit growth to moderate, lending rates to move up; and more

IPOs of Tata Technologies, Gandhar Oil Refinery and Flair Writing Industries were subscribed on Day 1 while Fedbank Financial Services saw a tepid response. Image: Shutterstock

Credit growth to moderate, lending rates to move up: SBI chairman

The Reserve Bank of India’s decision to move risk weights for unsecured loans from 100 percent to 125 percent will see a moderation in credit growth and an increase in the cost of capital. Clarity is expected to come only in the next quarter as the new regulations kick in then. Lending rates could rise by 50-60 bps. Expect lenders to also shift some money to other lending areas away from unsecured loans.
(BusinessLine, Business Standard)

Three IPOs sold out on Day 1

IPOs of Tata Technologies, Gandhar Oil Refinery and Flair Writing Industries were subscribed on Day 1 while Fedbank Financial Services saw a tepid response. Market watchers say these issues are attractively priced and that leaves something on the table for investors. This was last seen in August 2021 when Devyani International, Krsnaa Diagnostics and Exxaro Tiles were subscribed on Day 1.
(Mint, Economic Times)

IndiGo plans dual class cabin

IndiGo plans to offer two classes on some of its Airbus A321 aircraft. These aircraft will be refitted with a premium cabin and will have eight rows of two seats on each side. This will allow the airline to charge more for customers who prefer better seating, meals and priority boarding. The company has not yet confirmed the move and there is a fear that it could be overestimating the premium end of the market.
(Economic Times)

Sebi board to discuss regulation of realty platforms

The Sebi board is likely to look at real estate platforms that offer fractional ownership of real estate assets when its board meets on November 25. Fractional ownership platforms have mushroomed in the last two to three years, and Sebi believes that these ownership pools comprise unlisted securities that make them ripe for regulation. The board is also likely to discuss delisting rules.
(Economic Times)