Category: News

India’s domestic electronics industry has witnessed a meteoric rise, with 99.2% of mobile handsets used in the country now being manufactured locally, according to Jitin Prasada, Minister of State for Electronics and IT. This marks a dramatic shift from FY2014-15, when 74% of mobile phones sold in India were imported.The domestic electronics production has grown at a robust CAGR of over 17% in the past decade, scaling from ₹1.9 lakh crore in FY2014-15 to a staggering ₹9.52 lakh crore in FY2023-24. To sustain this momentum, the government has rolled out ambitious initiatives like the ₹76,000 crore Semicon India program, and Production Linked Incentive. Despite these achievements, challenges remain. India’s electronics manufacturing still faces a cost disadvantage compared to global competitors due to factors like higher capital expenditure requirements, longer gestation periods, smaller production scales, and difficulties in securing technology transfers.

India’s domestic shipping sector is bracing for an 8-10% revenue decline in FY26, according to a CRISIL Ratings report, primarily due to falling charter rates for crude oil, petroleum products, and dry bulk carriers. Following a peak growth of 35% in FY23, driven by surging charter rates amid the Russia-Ukraine conflict and post-pandemic demand, the industry has since seen revenue and margins slide. In FY25, operating margins are expected to fall further to 32-34%, down from over 40% last year, though still above the cyclical norm of 25-30%. Notably, modest capex plans and stable credit profiles are expected to cushion companies from the full impact of this decline. The debt-to-EBITDA ratio, a key financial indicator, is expected to rise moderately to 2.0-2.2 times next fiscal from 1.4 times in FY24. Even so, robust liquidity and asset monetization capabilities should insulate companies from cyclical pressures. CRISIL emphasized that geopolitical developments could significantly impact charter rates and industry dynamics, warranting close monitoring. For now, the sector appears poised to weather the downturn with resilient fundamentals.

VA Tech Wabag shares tumbled over 19% in early trade on December 18 after the company revealed that a massive ₹2,700 crore ($317 million) order for a 300 MLD Mega Sea Water Desalination Plant in Saudi Arabia was cancelled. The project, announced in September 2024, was shelved by the Saudi Water Authority due to “internal administrative procedures,” as per the company’s filing. The news sent shockwaves through the market, dragging the stock to a low of ₹1,522.30 on the BSE, a 19.17% dip. By mid-morning, it had recovered slightly, trading at ₹1,585.10, still down 15.31%. Despite today’s slide, VA Tech Wabag has delivered multibagger returns, skyrocketing 157% in the last year. Its order book remains robust at ₹14,600 crore, including framework contracts, signaling a solid pipeline ahead.

Welspun One is making bold moves to capitalize on India’s booming logistics landscape, announcing plans to raise ₹4,000 crore to expand its portfolio from 16 million square feet to a whopping 32 million by 2028. Welspun One revealed active discussions for financial and strategic partnerships at the General Partner (GP) level. These alliances, the company says, will unlock global best practices, cutting-edge technologies, and blue-chip tenant networks for its platform. For investors, it’s not just about returns but gaining a foothold in one of the world’s fastest-growing logistics markets. India’s rapid urbanization, digitalization, and shifting trade corridors are reshaping its logistics sector, and Welspun One is positioning itself at the heart of this transformation. Welspun One has already committed 75% of its ₹2,275 crore Fund 2 within six months of its final close, returning 40% of Fund 1 capital through two lucrative exits. With a goal to hit $1 billion in assets under management across 16 Grade A projects by 2026, it’s clear the strategy is as focused as it is aggressive.

This year’s public market exits painted contrasting pictures for private equity (PE) and venture capital (VC) firms. VC firms surged ahead, raking in $4.06 billion till November—double their previous year’s earnings—while PE firms stayed flat at $13.3 billion. Blackstone’s $808 million exit from Mphasis played a crucial role in keeping PE numbers steady; without it, their figures would have dipped below last year’s. Over the past five years, the consistency in PE exits reflects a strong appetite among public market investors. One of the standout PE deals this year was Blackstone’s June sale of a 15% stake in IT services giant Mphasis, reducing its holding to 40%. Other notable transactions included Peak XV, Norwest, and TPG Capital divesting 11% of Five Star Business Finance for $536 million, and Warburg Pincus cashing out its 9.17% stake in Kalyan Jewellers India for $451 million. VC firms seized the momentum of a thriving IPO market and managed to rake in $4 billion and outpaced the funding boom of 2021 when VCs earned $3.3 billion. Nearly 90% of PE exits this year came from bulk or block deals, while IPO-driven exits climbed slightly to 16% from 11% last year.

ITC Ltd is making waves in the hospitality world as it consolidates stakes in rivals Oberoi and Leela while gearing up for its much-anticipated hotel business demerger in January 2025. The Kolkata-based conglomerate announced on Wednesday that it has acquired additional shares in EIH and HLV Ltd from its wholly-owned subsidiary, Russell Credit Ltd. The deal gives ITC a 16.13% stake in EIH and 8.11% in HLV, strengthening its foothold in India’s luxury hotel sector. The acquisition was made at book value, and ITC’s board had greenlit this consolidation back in October. ITC Hotels is set to become a standalone entity, with January 6, 2025, marked as the record date for ITC shareholders to receive equity shares in the new company. The new entity will take over ITC’s robust hospitality portfolio, which includes premier brands like Bay Islands Hotels, Srinivasa Resorts, and Fortune Park Hotels. While ITC’s shares saw a modest uptick, closing at ₹470.65 on the BSE (up 0.17% on Wednesday), the strategic realignment signals bigger opportunities for investors. By creating a focused entity for its hospitality business, ITC aims to unlock value for shareholders while streamlining operations.

In a major shakeup for the solar power sector, the government has axed a key provision allowing duty-free imports for solar power generation. Starting December 17, solar modules brought into India will no longer benefit from the Manufacturing and Other Operations in Warehouse Regulations (MOOWR), which previously enabled businesses to import and store goods without immediate customs duty payments. The MOOWR scheme, introduced in 1996 and overhauled in 2019, allowed companies to operate customs-bonded warehouses, where imported goods could be processed, manufactured, or even exported—all without paying customs duty upfront. For solar modules, this meant avoiding a hefty 40% basic customs duty on modules and 25% on cells. But that’s history now, following the latest notification from the Central Board of Indirect Taxes and Customs (CBIC). For solar plants operating under Power Purchase Agreements (PPAs) that don’t account for tariff adjustments due to regulatory changes, the financial burden could be severe. These operators might see profitability dwindle as cash flows tighten and project costs escalate.

Mamata Machinery Limited is stealing the spotlight ahead of its public issue, raking in ₹53.55 crore from anchor investors. The company has sealed the deal with 22.04 lakh equity shares at ₹243 each, according to its latest exchange filing. Big names like 3P India Equity Fund, Authum Investment, and Subhkam Ventures headline the anchor investor lineup, with allocations that hint at strong institutional confidence. With a grey market premium (GMP) at ₹150 per share, up from ₹111 just a day ago, Mamata Machinery’s shares are expected to debut on Dalal Street at ₹393—an eye-popping 61.73% premium over the upper price band. With a post-issue market cap of ₹5,979 million, a P/E of 16.6x, and a robust 27.4% return on net worth, the IPO looks competitively priced against peers. In simple terms, Mamata Machinery’s IPO isn’t just another listing—it’s shaping up to be a standout play for investors looking to ride the momentum. Whether you’re into numbers or market sentiment, this one’s got something for everyone.

Varun Beverages, PepsiCo’s bottling partner, saw its shares climb 1.7%, hitting an intraday high of Rs 657 on the BSE, after the company completed its acquisition of a 39.93% stake in Lunarmech Technologies. In a filing to the exchanges, Varun Beverages confirmed that the transaction was finalized on December 16, 2024. The move follows the company’s earlier announcement, when it revealed its board had approved the acquisition for a total consideration of Rs 200 crore. Lunarmech, which is now fully under Varun Beverages’ control, adds a new dimension to the company’s business strategy. The acquisition is part of a broader push to expand its operations, as Varun Beverages continues to show strong growth. In its latest earnings report, the company posted a 22.3% YoY jump in net profit, reaching Rs 628.83 crore, while revenues surged by 24.1% YoY to Rs 4,804.68 crore. Over the past year, Varun Beverages’ stock has surged by 48%, underscoring investor confidence in the company’s strong performance and strategic moves.

TARC shares nosedived 10% on Tuesday, closing at ₹189.55 on the BSE, after SEBI ordered a forensic audit of the company’s financials for FY21 to FY23. This dramatic drop came hot on the heels of TARC’s exchange filing, where it disclosed receiving SEBI’s letter on Monday. The market regulator suspects that TARC’s handling of financial disclosures and transactions might have been detrimental to investors or the securities markets. TARC responded by pledging full cooperation with the audit and expressed confidence that the findings wouldn’t derail its growth trajectory or long-term value. In the latest quarter, TARC reported a staggering net loss of ₹67.36 crore, a stark reversal from the ₹1.06 crore profit in the same period last year. Despite these setbacks, TARC has delivered significant returns over the long term—up 42% in the past year.