Urban Company's 57.52% listing gains, SBI sells stake in Yes Bank, & more - Groww Digest
Wednesday, 17 September 2025
Markets opened above yesterday’s closing point.
Nifty 50 stayed in a range and closed in the green.
PSU bank stocks and IT stocks rose the most today. Metal stocks and consumer durables stocks fell the most.
Global markets: US markets closed in red. Asian markets showed a mixed trend. Most European markets rose (as of 6 pm IST).
News
The US refused India’s request for WTO talks on the 50% tariff on copper goods. India had requested the talks to challenge the tariff under WTO rules, but the US said it is a national-security measure and not subject to WTO trade rules.
The UK’s inflation stayed constant at 3.8% year-on-year in August. Core inflation fell to 3.6% (vs 3.8% in July).
Urban Company IPO listed on the stock exchanges at a premium of 57.52% over the issue price and closed 61.97% up at the end of the day.
Billionbrains Garage Ventures (Groww) filed an updated Draft Red Herring Prospectus (DRHP) with SEBI for an IPO.
Stocks Updates
SBI: sold its 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corp for Rs 8,889 crore.
Power Grid: won the bid to build and operate a 765 kV substation at Prayagraj and transmission lines in Uttar Pradesh and Madhya Pradesh.
JSW Steel: will invest $60 million to raise its economic interest in its Netherlands-based ‘M Res NSW’ to 83.3%. This investment will in turn raise its interest in Illawarra Metallurgical Coal to 30%.
Havells: received additional land at Alwar (near its existing plant) from Rajasthan authorities to expand its cable manufacturing capacity.
L&T: received a large order (Rs 2,500 crore to Rs 5,000 crore) for grid infrastructure in India, UAE, and Oman.
Lupin: received US FDA approval for Lenalidomide capsules (anti-cancer and immunomodulatory drug). The capsules had an estimated sales of $7.5 billion in the US.
ICICI Bank: received a GST demand order of Rs 49.12 crore (including tax, interest and penalty) from West Bengal authorities.
Word of the Day
Syndicated Loan
It is a large loan given by a group of lenders (a ‘syndicate’) to a single borrower
This type of loan is given when the amount is too big or risky for one lender alone.
Such loans are typically taken by large companies or governments to finance projects like infrastructure development, major mergers, or large corporate expansions.
The borrower gets a large sum, while lenders spread the risk among themselves.
6 Day Course
Theme: dividend vs buyback
Day 3: Wednesday
Yesterday, we spoke about buybacks, and before that, we discussed dividends.
One crucial difference between the two is how tax is handled.
If a company pays dividends, it comes to the investor’s bank account.
The investor will have to pay tax on this dividend.
In case of buybacks, the company’s share price goes up. In such a case, there is no tax to be paid.
You will have to pay a tax only when you sell the stock — capital gains tax.
Many investors like buybacks for this reason. It is kind of like re-investing the dividends into the same stock, and not having to pay any tax on it immediately.
Featured Question
“In the Tuesday "theme topic" you said that "company offer a share price slightly higher than the current share price. How is company do it so?”
During a buyback, the company offers a fixed price to existing shareholders to entice them to sell some of their shares.
This is called the tender offer.
This is usually priced higher than the current share price — to tempt investors to sell shares.
One reason is that when companies do buy backs, they tend to buy very large number of shares.
If they do so in the open markets, it might cause the share price to shoot up dramatically.
To prevent this, companies offer a fixed price that is slightly higher than the current share price.
Now, you can argue that the company can always buy as long as the market price is within their desired price target and stop when it shoots up.
Yes, that is logical. But often, that takes very long to do.
So instead, they offer a flat rate that is slightly higher
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