Category: News

India’s office leasing market is cruising towards a record-breaking year in 2024, with gross leasing volumes (GLV) expected to hit an impressive 83–85 million sq ft—a 13% surge from 2023’s peak. While 2025’s GLV might taper to 74–76 million sq ft, it’s still forecasted to soar past the 70-million-sq-ft mark for the fourth consecutive year. Only about 48 million sq ft of new office space is expected to roll out in 2024, tightening vacancy rates in major markets. While supply is projected to rebound in 2025, prime sub-markets will likely continue seeing squeezed vacancy rates. Notably, the country is expected to account for nearly 70% of the Asia-Pacific region’s net office space absorption—a staggering indicator of its regional dominance. Fresh leasing activity remains the market’s backbone, driven by new GCC entrants and domestic firms expanding operations. Pre-commitments have tripled compared to last year, with over 70% focused on prime sub-markets, signaling that premium locations are the gold standard for occupiers.

India’s first publicly listed real estate investment trust, Embassy Office Parks REIT, has locked in ₹1,000 crore through five-year non-convertible debentures (NCDs) carrying a 7.73% coupon. This marks another strategic move to streamline its debt profile, aiming to shave off 70 basis points in interest costs. The NCDs, secured against Embassy Express Towers in Mumbai and Embassy TechZone in Pune, garnered strong backing from heavyweights like Nippon MF, SBI Pension Fund, and HDFC Life. This offer received 55% of demand, which demonstrates investor’s confidence in Embassy REIT’s plan Embassy REIT’s expansive 51.1 million sq ft portfolio spans prime office markets like NCR, Chennai, Bengaluru, and housing 260 of the world’s top companies. This latest round of fundraising  positions Embassy REIT to capitalize on opportunities in India’s thriving office market while keeping its debt strategy razor-sharp.

A glowing report from JM Financial, initiated coverage with a “buy” rating and a ₹340 target price—a 36% upside from its previous close at ₹251. Piramal Pharma shares get a solid tailwind today, jumping 4.5% to ₹262.80 in early trade. JM Financial’s optimism stems from India’s booming CRDMO sector, where Piramal’s CDMO business is flexing its competitive muscle. The brokerage forecasts a 17% CAGR for the CDMO arm over the next three years, thanks to a CRO turnaround and high-potential assets, including one with a USD 100 million revenue projection. The global CRDMO industry is set to expand at a 9.1% CAGR, so JM Financial envisions a robust future for Piramal Pharma too: a 15% revenue CAGR, 23% EBITDA CAGR from FY 24-27, and free cash flows scaling to ₹4.8 billion by FY27. If the brokerage’s projections hold, Piramal Pharma’s ascent might just be getting started.

Nitco’s stock had a moment of glory in early Tuesday trading, surging 5% to touch ₹147.55 on the BSE after securing a hefty ₹105.40 crore order from Prestige Estates Projects. The deal spans six months and involves supplying tiles, marble, and mosaics—a boost that has the market buzzing about this small-cap multibagger. Nitco expects an additional ₹104 crore in orders from Prestige Estates, based on current projects. Despite the recent losses, Nitco has been on an impressive run. The stock hit its 52-week high of ₹148.50 on December 12, 2024, a far cry from its low of ₹27.14 a year ago. For morning, Nitco’s meteoric rise seems to have no ceiling, though it remains to be seen how sustainable this rally will be amid its ongoing financial challenges.

India’s banking system is grappling with its steepest liquidity deficit in nearly six months, and it’s not just a seasonal hiccup. According to IDFC First Bank, the RBI has been offloading dollars in the market since October, a strategy that inadvertently sucked liquidity out of the banking system. It hit a record low of ₹84.9337 per dollar on Tuesday, forcing the RBI to step in and potentially drain even more liquidity as it tries to prevent further currency slippage amidst a ballooning trade deficit and a surging greenback. Even after recent measures like a cash reserve ratio (CRR) cut and variable rate repo auctions, the outlook remains bleak. Add to that the usual end-of-year cash withdrawals for festive spending, and you’ve got a perfect storm of liquidity pressure. For now, banks are waiting for RBI to step in with fresh liquidity-boosting measures to decide whether the pressure eases or the squeeze gets tighter.

Vikas Lifecare Limited (VLL), a penny stock that often flies under the radar, is catching some attention with a 6% jump in its share price on December 16. The company has entered into a Technology Transfer Agreement with DRDO’s Advanced Systems Laboratory (ASL), focusing on the production of biodegradable granules that could replace traditional polyethylene bags. Despite a decline in net profit in Q2 FY25 (down 67.35% YoY), Vikas Lifecare saw a solid 16.25% growth in sales, hitting ₹134.88 crore—showing resilience even as profits took a hit. If the biodegradable plastics initiative pays off, it could position Vikas Lifecare as a serious player in the green tech space, a trend that could sustain its stock growth long term.

Vedanta Limited is keeping its shareholders happy with another dividend payout. On December 16, the company approved an interim dividend of ₹8.5 per equity share for FY25, marking its fourth such payout this financial year. The total payout comes to ₹3,324 crore, signaling the company’s solid cash flow and commitment to rewarding investors. But it’s not just the dividend that’s boosting Vedanta’s standing. The company also received a positive update from India Ratings & Research, which upgraded its non-convertible debentures (NCDs) rating to IND AA-. India Ratings attributed the upgrade to Vedanta’s reduced refinancing risk on USD bonds, thanks to recent overseas fund-raising efforts. This is expected to ease liquidity concerns and improve Vedanta’s financial flexibility moving forward. All in all, it’s a good day for Vedanta, with both a generous dividend and a stronger credit outlook.

As 2024 nears its close, the market has delivered a solid 20% return, but it’s been the mid and small-cap stocks that have really shone this year. Midcaps have surged 28% while small caps have seen even stronger growth, climbing 31%, outpacing the more conservative large-cap returns of 17%. Between January and September, the market saw strong rallies driven by expectations surrounding corporate earnings, national election results, and the budget, all of which helped lift valuations. However, by the end of September 2024, the tide started to turn. Corporate earnings growth, which had been slowing since June, began to show signs of weakness, raising red flags about potential structural issues within India’s economy. The FIIs’ selling spree, which reached a peak between October and November, was exacerbated by the Yen Carry Trade issue. With interest rates rising in Japan, the lucrative short-term bets in Indian equities became less attractive. One key area to keep an eye on is India’s valuations, which remain above the long-term average. Investors will need to be selective and strategic about which themes and stocks to hold onto as the market enters 2025.

Premier Explosives shares shot up by a solid 10% upper circuit to ₹567 in early trading on Monday, December 16, the company has signed an MoU with Global Munition Limited, a subsidiary of NIBE Ordnance and Maritime, to create a joint venture focused on defence and aerospace manufacturing. In another significant move, Premier Explosives bagged a substantial ₹89.20 crore order from Singareni Collieries for supplying a range of explosives and accessories over the next two years. Premier Explosives is deeply embedded in India’s defence and space initiatives, producing solid propellants for missiles like Astra, Akash, and Agni, along with pyrotechnic devices and countermeasures. Its contributions to ISRO are equally notable, as it supplies key materials for satellite launch vehicles.

Dhanlaxmi Crop Science shares opened at ₹104.5. It indicates a considerable 90% gain as it starts from ₹55. The company offered 43.28 lakh new shares, reducing promoter holding from 76.7% to 56.3%, signaling a solid commitment to market participation. The IPO was a roaring success, retail investors came in hot, oversubscribing by 441 times, while non-institutional investors (NIIs) went even bigger with 1,241 times the demand. Qualified institutional buyers (QIBs) weren’t far behind, bidding nearly 198 times their allocated shares. Dhanlaxmi’s stellar debut doesn’t just showcase strong demand—it sets a high bar for SME IPOs and positions the company as one to watch in the agri-solutions space.