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This Week’s IPOs: Waaree Energies Likely to Buzz Market, Three Other Listings Scheduled

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Despite a recent downturn in the Indian equity market, the IPO segment is buzzing with activity as nine new public issues worth ₹10,985 crore are set to open for retail investors from October 21 to 25.

Among these, Waaree Energies’ IPO will be the first to kick off on October 21, offering shares at a price band of ₹1,427 to ₹1,503 each. The solar photovoltaic module manufacturer aims to raise ₹4,321 crore, with ₹3,600 crore as fresh issue and ₹721.44 crore through an offer-for-sale (OFS) of 48 lakh shares.

Promoters Waaree Sustainable Finance and Chandurkar Investment will participate in the OFS. Ahead of the IPO, the company secured ₹1,277 crore from anchor investors on October 18. Competitors in the market include Premier Energies and Websol Energy.

Additionally, the IPO for Deepak Builders and Engineers India will also open on October 21, with a size of ₹260 crore. It consists of a fresh issue of ₹217 crore and an OFS worth ₹42.83 crore. Prior to the IPO, ₹78 crore was raised from five anchor investors.

Godavari Biorefineries will open its ₹555 crore IPO from October 23 to 25. The offering will feature a fresh issue of ₹325 crore and an OFS of 65.26 lakh shares, valued at ₹229.75 crore, from promoters and investor Mandala Capital AG. The price band for the shares is set at ₹334 to ₹352.

Afcons Infrastructure, a Shapoorji Pallonji Group company, will launch its IPO on October 25. The company seeks to raise ₹5,430 crore, with ₹1,250 crore through a fresh issue and ₹4,180 crore via an OFS. The price band will be revealed on October 21.

Several companies in the SME segment will also be offering IPOs next week, including Premium Plast, Danish Power, United Heat Transfer, OBSC Perfection, and Usha Financial Services.

On the listing front, Hyundai Motor India’s historic ₹27,870 crore IPO, the largest ever in India, will list on October 22. Shares of Lakshya Powertech and Freshra Agro Exports from the SME segment are scheduled to begin trading on October 23 and 24, respectively.

SIPs Over Cars: Sourav Dutta’s Financial Tip Ignites Debate

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In an era where financial literacy is increasingly becoming a necessity, a recent online debate has sparked interest and controversy in equal measure. The debate was initiated by Sourav Dutta, an investor and trader, who took to social media platform X (formerly Twitter) to share his financial advice.

Dutta suggested that people should consider investing in Systematic Investment Plans (SIPs) rather than purchasing a car. His post, shared on October 15, 2024, quickly gained traction, accumulating over a million views and sparking a widespread discussion.

Dutta’s argument was based on a hypothetical scenario involving a character named Ravi. According to Dutta, Ravi was burdened with a monthly EMI of ₹20,000 for five years after purchasing a car.

Dutta proposed that Ravi would have been in a better financial position had he invested the same amount into mutual fund SIPs. He explained that an SIP of ₹20,000 per month in Nifty ETF would grow to a bank balance of ₹17 lakh at the end of five years. In contrast, a car, which would have cost ₹10 lakh, would depreciate to a value of ₹4 lakh by 2030.

Life Choices and Financial Planning

Rs 20000/mo is the 5 year EMI of a 10L car for Ravi. Instead, Ravi puts ₹20000/mo for 5 years in Nifty ETF SIP. First decision gives him a car worth ₹4L in 2030. Second decision gives him ₹17L of bank balance in 2030. Life is about the choices we make, Dutta wrote.

However, Dutta’s advice was met with mixed reactions. While some agreed with his financial perspective, others argued that life is not solely about investment and financial returns. They emphasized the value of enjoying life and the conveniences a car provides, such as family time and emergency transportation.

One user commented, Life is also short for some enjoyment. Look beyond SIP and market returns. And enjoy life for yourself and for the family you got. This sentiment was echoed by others who pointed out that not everyone can forgo the immediate benefits of car ownership for future financial gains.

Another user argued, “Not everything in life is about saving money. Also, if everyone thinks like Ravi, then the economy won’t grow, and the stock market won’t perform, and Ravi will not even make FD returns!”

This comment highlights the broader economic implications of Dutta’s advice, suggesting that if everyone were to follow this advice, it could potentially stagnate economic growth.

Practicality Experiences

The debate took an interesting turn when users began to question the practicality of Dutta’s advice. One user quipped, The problem here is that, when Ravi wants to go somewhere with his family at his convenient time without bargaining with the Ola or Uber fellow, he can’t print the ETF papers, sit over it and ask it to fly.

It will not take him anywhere. This comment underscores the limitations of relying solely on public transportation or ride-hailing services, and the convenience and independence that owning a car provides.

In response to the criticism, Dutta argued that the expenses on petrol for the car would have been similar to cab fares over five years, and the difference in the end would still be a significant amount in favor of investing in SIPs (Rs 13 lakh more in savings).

This debate is reminiscent of similar discussions in the past where financial advisors have advocated for investment over consumption.

Infosys Q2 Profit Rises, Raises Revenue Outlook

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Infosys posted a 4.7% rise in net profit for Q2 FY25, hitting Rs 6,506 crore, up from Rs 6,212 crore a year ago. Revenue grew 2.9% year-on-year, reaching Rs 40,986 crore. The company raised its full-year revenue growth forecast to 3.75-4.5% and announced a 16.7% interim dividend increase to Rs 21 per share, payable on November 8.

Strong performance was driven by strategic collaborations with Metro Bank, Proximus, TDC Net, and Posti. Infosys CFO Jayesh Sanghrajka stressed a focus on revenue growth and margins, while CEO Salil Parekh highlighted broad-based growth across sectors.

The company’s net profit for the quarter reached ₹6,506 crore, up from ₹6,212 crore in the same period last year. Meanwhile, its revenue for the quarter stood at ₹40,986 crore, marking a 2.9% year-on-year growth. Quarter-on-quarter, the company saw over 4% growth, with revenue climbing from ₹38,994 crore in the previous quarter.

The company has raised its full-year revenue growth guidance to 3.75-4.5%, showing optimism for the coming months. This increase in guidance comes as Infosys continues to leverage new strategic partnerships and strengthen its service offerings across key sectors.

Infosys also declared an interim dividend of ₹21 per share, reflecting a 16.7% hike compared to last year’s dividend. The payout is scheduled for November 8, underscoring Infosys’ strong financial position and commitment to rewarding its shareholders.

Broad-Based Growth and Margin Focus

During the first half of FY25, Infosys reported a year-over-year revenue growth of 2.9% in constant currency, with an operating margin of 21.1% for the second quarter. Infosys CEO Salil Parekh attributed this success to the company’s broad-based growth across various sectors and geographies, noting that the company saw 3.1% quarter-on-quarter growth in constant currency terms.

“We achieved strong growth in financial services, which was a key contributor to our performance this quarter,” Parekh said. This growth, along with steady client wins, has helped Infosys maintain momentum despite a challenging global economic environment.

Chief Financial Officer Jayesh Sanghrajka highlighted the company’s focus on accelerating revenue growth while maintaining a sharp focus on margin performance. “Our operating margin for the quarter was at 21.1%, driven by value-based pricing and efficient utilization of resources,” Sanghrajka said. He also pointed to the company’s strong cash generation, with free cash flow growing 25.2% year-on-year to reach $839 million. For the second consecutive quarter, Infosys achieved over 100% free cash flow conversion to net profits.

Infosys’ employee headcount rose by 2,456 in the quarter, bringing the total to 3,17,788. The company also approved the merger of WongDoody Inc., Blue Acorn iCi Inc., Outbox Systems Inc. (d.b.a. Simplus), and Kaleidoscope Animations Inc. into Infosys Nova Holdings LLC, further strengthening its business capabilities.

Strategic Collaborations and Future Outlook

Infosys continues to drive growth through strategic collaborations with key global players. The company entered a long-term collaboration with Metro Bank to enhance its IT and support functions, while also transforming the bank’s business operations. Metro Bank CEO Daniel Frumkin said the partnership would help the bank become more profitable and scalable in the long run.

The company also announced a collaboration with Proximus, a Belgian telecommunications provider, to explore new business opportunities. Proximus’ Chief Digital and IT Officer, Antonietta Mastroianni, welcomed the renewed partnership, highlighting its potential to unlock new opportunities.

Another key collaboration came with TDC Net, Denmark’s largest telecom infrastructure company. Infosys is set to help TDC Net transform into a more customer-centric technology company. TDC Net’s Chief Technology and Information Officer, Campbell Fraser, expressed confidence in Infosys’ ability to support their digital transformation.

Infosys also renewed its collaboration with Finland’s postal service, Posti, extending their partnership for another seven years to enhance customer experience and operational efficiency. Petteri Naulapää, Posti’s CIO and SVP, praised the ongoing collaboration and its role in driving innovation.

With these strategic partnerships and a strong financial outlook, Infosys is well-positioned for continued growth in the second half of the fiscal year.

 

Bajaj Auto Reports 9% Net Profit Growth in Q2 FY25, Driven by Strong EV Sales

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Bajaj Auto on Wednesday announced a 9% rise in net profit for the July-September quarter (Q2 FY25), posting a net income of Rs 2,005 crore, driven by robust performance in its green energy segment. The company’s electric vehicle (EV) sales surged, contributing significantly to its overall growth.

Adjusted for exceptional deferred tax provisions, Bajaj Auto’s profit after tax (PAT) reached Rs 2,216 crore, marking a 21% year-on-year increase. The company explained that the reported PAT of Rs 2,005 crore accounted for an additional provision of Rs 211 crore due to the impact of the Finance Act, 2024, which withdrew indexation and changed tax rates on investment income.

Revenue from operations grew 22% year-on-year, hitting Rs 13,000 crore for the quarter. Bajaj Auto’s stock responded positively, closing 0.88% higher at Rs 11,622.5 per share on Wednesday.

Electric Vehicles Lead the Charge

Bajaj Auto’s green energy portfolio hit new milestones, with the sale of 1 lakh electric vehicles (EVs) in September alone. Of these, 70,000 were Chetak electric scooters, which captured a 21% market share that month. The company’s portfolio of electric and CNG vehicles, spanning both two-wheelers (2W) and three-wheelers (3W), now contributes 40% of its total domestic revenues.

The company noted strong double-digit growth in its motorcycle and commercial vehicle segments, largely fueled by the near-tripling of electric scooter sales. The Pulsar brand continued to perform well, achieving its highest-ever quarterly sales of 1.1 lakh units.

Future Prospects

Bajaj Auto is also making strides in the electric three-wheeler (e3W) market, where it aims to replicate its dominance in the internal combustion engine (ICE) segment. The company reported that its market share in the e3W segment doubled from last year, reaching 35% by the end of the quarter.

The company remains in a strong financial position, with surplus cash reserves of Rs 16,392 crore at the end of Q2. This follows strategic investments of Rs 1,200 crore, primarily directed towards Bajaj Auto Credit Ltd. and EV-related capital expenditures, as well as a Rs 2,233 crore dividend payout in the first half of FY25.

With growing demand for electric vehicles and a strong financial base, Bajaj Auto is well-positioned to capitalize on the expanding green energy market and continue its upward trajectory.

Meet new ‘Phantom of Bombay House’: NRI but holds 18.4% Stake in Tata Sons

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Shapoor Mistry, chairman of the Shapoorji Pallonji Group, leads one of India’s most powerful business dynasties, managing a significant stake in Tata Sons while steering his family’s company through a critical period of transformation. The Mistry family holds an 18.4% stake in Tata Sons, valued at approximately ₹1.52 lakh crore ($130 billion), making them key players in one of India’s largest conglomerates. Yet, despite their deep connections to India, Shapoor Mistry himself is not Indian by nationality—he holds Irish citizenship.

Founded 159 years ago, the Shapoorji Pallonji Group has been a major force in engineering, construction, and infrastructure development. Shapoor Mistry, born in 1964, is the eldest son of Pallonji Mistry, the family patriarch who passed away in 2022, and Patsy Perin Dubash. He has two sisters and a brother, Cyrus Mistry, whose untimely death in a car accident in September 2022 shocked the business world. Shapoor now stands at the helm of a company that generates around $30 billion in annual revenue, managing a sprawling portfolio of businesses.

However, the Mistry family’s wealth is deeply intertwined with their stake in Tata Sons. Pallonji Mistry, Shapoor’s father, earned the nickname “Phantom of Bombay House” due to his quiet yet influential presence at Tata Group’s headquarters. Their relationship with Tata Group peaked in 2012 when Shapoor’s younger brother, Cyrus, was appointed chairman of Tata Sons. However, a highly publicized and contentious boardroom battle led to Cyrus’s ousting in 2016, resulting in one of India’s most dramatic corporate conflicts. This feud between the Mistry family and Tata Trusts led to a prolonged legal battle, putting the spotlight on their close ties with Tata Sons.

The Quiet Billionaire

For Shapoor Mistry, the year 2022 was particularly challenging. In June, his father passed away, marking the end of an era. Just three months later, his brother Cyrus died in a car crash, a personal and professional blow to the family. Together, Shapoor and Cyrus had been working on restructuring the Shapoorji Pallonji Group, which had been facing financial pressure due to high levels of debt. Their plan included selling off non-core assets to stabilize the company’s finances, a strategy that Shapoor continues to implement in the wake of these tragic losses.

In an effort to ensure the group’s long-term resilience, Shapoor has led a reorganization of the company, dividing it into two main entities—S.P. Finance and S.C. Finance—focused on real estate and infrastructure, respectively. This move is aimed at improving cash flow management, particularly in industries where large-scale projects often take years to generate returns. Shapoor’s leadership is now more critical than ever as he navigates both emotional and operational complexities.

But Shapoor Mistry is keen on ensuring that the next generation of the Mistry family continues the legacy. shapoor has already involved his son and his late brother’s sons, Firoz and Zahan Mistry, in key roles within the company. This generational handover is intended to preserve the family’s influence in both Shapoorji Pallonji Group and Tata Sons, as well as to secure the company’s future amidst ongoing challenges in the business landscape.

 

India’s Wholesale Price Inflation Rises to 1.84% in September

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India’s wholesale price inflation (WPI) climbed to 1.84% in September, driven primarily by rising prices of food articles and select manufacturing sectors, according to government data released on Monday.

The inflation rate in September marked an increase from 1.31% in August and 2.04% in July. The month-over-month change in the WPI index was a modest 0.06% compared to August.

The rise in WPI was largely fueled by higher prices of food articles, food products, motor vehicles, machinery, and equipment. The WPI for primary articles rose by 0.41%, reaching 195.7 in September, up from 194.9 in August. Notable increases were observed in the prices of minerals (1.83%), non-food articles (1.31%), and food articles (0.86%).

Conversely, the prices of crude petroleum and natural gas fell by 5.74% in September compared to the previous month. The fuel and power index declined by 0.81% to 146.9 in September, despite a 1.34% rise in electricity prices. The price of mineral oils dropped by 1.72%, while the coal index remained steady at 135.6.

In the manufacturing sector, the index for manufactured products increased by 0.14% to 141.8 in September. Key groups contributing to this rise included the manufacture of food products, non-metallic mineral products, and electronic goods, while the prices of basic metals, textiles, motor vehicles, and chemical products saw declines.

The WPI food index, which tracks prices of both food articles and manufactured food products, rose from 193.2 in August to 195.3 in September. The annual inflation rate based on the WPI Food Index surged to 9.47% in September, up sharply from 3.26% in August.

The Wholesale Price Index measures price changes in goods traded in bulk by wholesale businesses with other companies.

RBI Governor Warns of ‘Systemic Risks’ from AI in Banking Sector

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The increasing use of artificial intelligence (AI) and machine learning (ML) in the global financial sector could pose significant risks to financial stability if not properly managed, according to Shaktikanta Das, the Governor of the Reserve Bank of India (RBI). Speaking at an event in New Delhi on Monday, Das emphasized the need for banks to adopt strong risk mitigation practices as they integrate AI into their operations.

Das highlighted that the financial sector’s growing reliance on AI could lead to concentration risks, particularly if a few technology providers dominate the market. “The heavy dependence on AI by financial institutions can amplify systemic risks. Failures or disruptions in these AI systems could ripple through the entire financial sector,” he cautioned.

In India, banks and financial service providers are increasingly using AI to enhance customer experience, reduce operational costs, manage risks, and boost growth through applications like chatbots and personalized banking services. However, this growing reliance on AI also introduces new vulnerabilities, including a heightened risk of cyberattacks and data breaches.

Das pointed out another key concern—the “opacity” of AI algorithms. The complexity and lack of transparency in AI systems make it difficult to audit or interpret the decision-making processes behind lending and other financial services. This could lead to unpredictable market outcomes, with potentially severe consequences.

In addition to AI-related risks, Das also raised concerns about the rapid expansion of private credit markets globally. These markets, he noted, are lightly regulated and have not undergone stress testing during a significant economic downturn. The unchecked growth of private credit could pose further risks to financial stability.

As the adoption of AI continues to reshape the financial landscape, Das urged banks and regulators to stay vigilant and ensure that adequate safeguards are in place to prevent systemic disruptions.

India’s Ship Recycling Industry To See 10% Growth by 2028: Report

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India’s ship recycling industry is poised for substantial expansion, with an expected compound annual growth rate (CAGR) of 10% by 2028, positioning it as a key player in the global market. According to a report by CareEdge Ratings, India accounted for 33% of the global gross tonnage (GT) dismantled in 2023, placing it second only to Bangladesh, which handled 46% of global ship dismantling.

The industry is projected to grow to 3.8-4.2 million GT by 2025, up from an estimated 2.3-2.6 million GT in 2024. A major contributor to this growth is India’s robust infrastructure, particularly the Alang-Gujarat facility, one of the world’s largest ship recycling hubs with over 140 recycling yards.

India’s position in the global maritime sector is critical. Alongside Bangladesh, Pakistan, and Turkey, the country dominates more than 90% of global ship recycling activity. While contributions from other nations have been inconsistent, India has remained a steady leader in this field.

Market Insights and Future Potential

According to Sajni Shah, Assistant Director at CareEdge Ratings, several factors suggest a significant increase in ships entering the recycling market from 2025 onwards. These include the cooling-off of the Baltic Dry Index (BDI), stabilizing scrap prices, and a rise in obsolete ships. Additionally, countries with advanced infrastructure and green recycling capabilities are expected to capture a larger share of the global market in the future.

Despite the promising outlook, the industry faces challenges, particularly with fluctuating scrap prices. Prices for heavy melting scrap in Bhavnagar surged from Rs 28,800 per tonne in August 2020 to Rs 54,400 in April 2022, driven by supply chain disruptions and increased steel demand post-pandemic. By December 2023, prices had settled at Rs 39,900 per tonne, stabilizing between Rs 36,000 and Rs 44,000 per tonne throughout 2023.

The industry also grapples with safety and regulatory issues. For instance, in Bangladesh, ship recycling is often hazardous, with workers and nearby communities exposed to toxic materials that threaten their health and livelihood. This highlights the urgent need for stricter regulations and improved safety standards across the sector.

India’s ship recycling industry is set for impressive growth in the coming years, bolstered by strong infrastructure and increasing global demand. However, the industry’s long-term success will depend on implementing stringent regulations and ensuring the safety of workers and the environment. A balanced approach that prioritizes both economic development and sustainability will be key to unlocking the full potential of India’s ship recycling sector.

World Bank Lowers Bangladesh’s Growth Forecast Citing Political Instability

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The World Bank has revised Bangladesh’s economic growth projection for the fiscal year 2024-25, lowering it to 4%, down from an earlier estimate of 5.2%. This adjustment comes in response to the political unrest that has shaken the country, creating significant economic and political uncertainty.

In its South Asia Development Update for October 2024, the World Bank emphasized how the political turmoil of July and August has disrupted the nation’s economic performance, directly impacting its gross domestic product (GDP) growth. Supply chain disruptions and investor hesitancy have further contributed to the economic slowdown.

The Asian Development Bank (ADB) also recently cut its growth forecast for Bangladesh, revising it to 5.1% for the current fiscal year. The ADB cited similar concerns, noting that the political unrest over the past few months has created challenges for Bangladesh’s supply chains, adding pressure to its economic outlook.

Bangladesh and the Maldives stand out as the only two South Asian countries where the World Bank has downgraded growth forecasts. This reflects the unique political and economic hurdles facing both nations. Inflationary pressures are also expected to rise, while the broader South Asian region shows more positive economic trends.

Recovery Potential 

Despite these setbacks, the World Bank remains cautiously optimistic about Bangladesh’s long-term economic prospects. The global lender foresees a gradual recovery, underpinned by key reforms in the financial sector, improved business conditions, expanded trade, and greater domestic resource mobilization.

The recent political changes in Bangladesh, including the resignation of Prime Minister Sheikh Hasina and the appointment of an interim government following student-led protests in August, have further added to the country’s economic uncertainty. However, the World Bank’s projections for 2025-26 suggest that Bangladesh has the potential to rebound and achieve strong growth in the coming years.

While the near-term outlook for Bangladesh is clouded by political instability, the World Bank believes that with the right reforms, the nation can bounce back. Implementing structural changes in the financial sector, boosting investment, and strengthening domestic industries will be critical to ensuring long-term growth and stability.

 

Festive Boom in E-commerce Sales Cross Rs 54,500 Crore in One Week

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Indian e-commerce platforms recorded sales exceeding Rs 54,500 crore in the first week of the festive season, making up approximately 55% of the total sales projected for the upcoming month.

According to data from Datum Intelligence, a consumer technology market research firm, this marks a 26% increase in sales compared to the same period in 2023. The primary drivers of these sales were mobiles, electronics, and consumer durables, with home and general merchandise categories also contributing significantly. These categories accounted for 75% of the overall sales, while smartphones and TVs led purchases in tier 2 and tier 3 cities, making up over 70% of sales in these regions.

The festive shopping period, which began on September 26, will continue until November 3, concluding after Diwali. Overall sales during this period are expected to reach Rs 1 lakh crore.

Fashion, groceries, beauty, and personal care products have seen a notable surge in demand, with sales rising by 2-4 times compared to regular periods. Similarly, orders for toys, books, and kitchen essentials increased 2-5 times in the first week.

Shoppers are increasingly turning towards quick-commerce platforms, especially for lower-priced categories like groceries, beauty, and personal care. Key trends this festive season include the influence of Artificial Intelligence (AI), the rise of micro-influencers, and the growing popularity of quick-commerce in shaping consumer choices.

In a separate report, it is projected that more than 35 million smartphones will be sold during the festive period, marking a 3% year-on-year (YoY) growth in volume and a 9% YoY increase in value. The ultra-premium smartphone segment (priced above Rs 45,000) saw a 12% YoY growth during the initial week of sales, driven by strong performances from Apple and Samsung. The festive season typically accounts for 20-25% of the annual smartphone sales in India.

Noel Tata Named New Chairman of Tata Trusts Following Ratan Tata’s Demise

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Noel Naval Tata, the newly-appointed Chairman of Tata Trusts, on Friday said he looks forward to carrying on the legacy of Ratan Naval Tata and the founders of the Tata Group.

Earlier, the Tata Trusts board met at a joint meeting held in Mumbai and took the unanimous decision to appoint Noel Tata, the half-brother of Ratan Tata, as the new Chairperson after the latter’s demise.

“I am deeply honoured and humbled by the responsibility that has been cast on me by my fellow Trustees. I look forward to carrying on the legacy of Mr. Ratan N. Tata and the Founders of the Tata Group,” said Noel Tata. “Founded more than a century ago, the Tata Trusts are a unique vehicle for undertaking social good. On this solemn occasion, we rededicate ourselves to carrying on our developmental and philanthropic initiatives and continuing to play our part in nation-building,” he added.

The Trustees condoled the demise of Ratan Tata, and recalled his yeoman services not only to the Tata Group but also to nation-building. In separate meetings held immediately, thereafter, it was unanimously decided to appoint Noel Tata as the Chairman of the various Trusts that constitute the Tata Trusts and also designate him as Chairman, Tata Trusts.

Noel Tata’s appointment comes into effect immediately. Noel Tata is known for his relatively low-profile leadership, a stark contrast to Ratan Tata’s more public-facing role. He has been instrumental in driving the conglomerate’s growth since he joined the Tata Group in the early 2000s.

Earlier this year, Noel Tata’s three children — Leah, Maya and Neville — were appointed as trustees in multiple trusts associated with the Sir Ratan Tata Trust and Sir Dorabji Tata Trust. Leah is currently Vice President at The Indian Hotels while Maya is associated with Tata Capital. Neville is involved in Trent and the leadership team at Star Bazaar.

Since 1892, Tata Trusts, the oldest philanthropic institution in the country, has been at the forefront of creating lasting impact among communities. Rooted in the visionary philanthropy of our Founder, Jamsetji Tata, the Trusts remain resolute in catalysing transformative change and leading advancements that uplift communities across the nation.

Tata Trusts, which oversees the operations of 14 charitable trusts, holds a 65.3% stake in Tata Sons and plays a vital role in guiding the direction of the conglomerate. The largest shareholders in Tata Sons are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, together controlling more than 50% of Tata Sons’ ownership. The executive committee, previously chaired by Ratan Tata, includes key members like Venu Srinivasan, Vijay Singh (both Vice Chairmen of Tata Trusts), and trustee Mehli Mistry.

In the 2022-2023 fiscal year, Tata Trusts made significant contributions to various charitable initiatives, disbursing Rs 581.52 crore in grants. The Sir Ratan Tata Trust contributed Rs 456.42 crore, while the Sir Dorabji Tata Trust disbursed Rs 125.10 crore.

 

Breaking: Indian Business Titan Ratan Tata Passes Away at 86

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Ratan Naval Tata, the iconic Chairman Emeritus of Tata Sons and a towering figure in Indian business, has passed away at the age of 86. Tata died earlier today at Mumbai’s Breach Candy Hospital after battling age-related health issues.

Tata’s hospitalization on Monday had prompted widespread speculation about his health. Although he issued a statement downplaying the severity, his condition reportedly worsened, leading to his being placed on life support.

Ratan Tata passed away aged 86

Ratan Naval Tata, one of India’s most iconic industrialists and former chairman of Tata Sons, has passed away at the age of 86. Tata, who led the Tata Group from 1990 to 2012, died on October 9, 2024. He was also the interim chairman from October 2016 to February 2017 and continued to oversee Tata’s charitable trusts until his death.

A recipient of India’s highest civilian honors, Tata was awarded the Padma Bhushan in 2000 and the Padma Vibhushan in 2008 for his immense contributions to business and philanthropy.

Tata was born on December 28, 1938, to Naval Tata, who was adopted by Ratanji Tata, son of Jamsetji Tata, the founder of the Tata Group. After earning a degree in architecture from Cornell University, Tata joined Tata Steel in 1961, working on the shop floor. He went on to succeed J.R.D. Tata as chairman of Tata Sons in 1991.

During his leadership, the Tata Group expanded internationally with key acquisitions, including Tetley, Jaguar Land Rover, and Corus, transforming Tata into a global conglomerate. Tata was also one of the world’s largest philanthropists, donating around 60-65% of his income to charitable causes.

In addition to his business acumen, Tata was a significant investor, backing over 30 startups, both personally and through his investment firm.

Ratan Tata’s legacy of business innovation, global expansion, and philanthropy will continue to shape India’s corporate landscape for generations to come.

N. Chandrasekaran, Chairman of Tata Sons, expressed deep sorrow, calling Tata an “uncommon leader” whose vision shaped both the Tata Group and India itself. “His legacy of excellence, integrity, and philanthropy will continue to guide us,” Chandrasekaran said.

Ratan Tata’s remarkable career spanned over five decades, during which he led Tata Sons from 1991 until his retirement in 2012. Under his leadership, the group expanded globally, with revenues surpassing $100 billion in 2011-12.

In addition to his business achievements, Tata was known for his deep commitment to philanthropy, transforming Tata Trusts into one of India’s leading charitable organizations.

Ratan Tata was awarded the Padma Vibhushan, India’s second-highest civilian honor, in 2008. He is survived by several family members.

This marks the end of an era for India’s corporate world.

Indian Stocks Open 300 Points Up, Fall Slightly After RBI Policy Not To Change Interest Rates

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Indian stock markets opened higher on Wednesday, with gains led by the information technology and pharmaceutical sectors as investors anticipated the Reserve Bank of India’s (RBI) monetary policy decision, expecting the central bank to hold interest rates steady.

As of 9:44 a.m. IST, the Nifty 50 index rose by 0.25% to 25,073 points, while the S&P BSE Sensex climbed 0.18% to 81,778.84. The RBI is expected to maintain key policy rates unchanged for the tenth consecutive meeting, as it continues its effort to keep inflation in check.

When the policy announcement was announced at 10:00 a.m. IST stating that the RBI’s MPC panel voted in favour of keeping the repo rate unchanged at 6.5%, the market sentiment slightly reversed but is expected to improve once the RBI Governor Shaktikanta das gives his press briefing at 12 p.m. on Wednesday.

Eleven of the 13 major sectors posted gains, with small- and mid-cap stocks climbing roughly 1%. The IT sector rose 0.7%, marking its fourth consecutive day of gains, as U.S. labor market data eased fears of a recession in India’s key export market. The pharma sector also jumped 1.3%, led by Divi’s Laboratories, which surged 5% following a “buy” rating from Citi.

Torrent Power saw a notable 8% jump after securing two significant orders from the Maharashtra State Electricity Distribution Company to build 2000 MW of energy storage capacity.

 

BREAKING: RBI Keeps Interest Rates Unchanged, Signals Possible December Cut

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In a pivotal move, the Reserve Bank of India (RBI) has kept its benchmark interest rates unchanged at 6.5%, but shifted its policy stance to neutral, signaling a potential rate cut in December. The announcement came after a three-day monetary policy committee (MPC) meeting that concluded today.

Five out of the six members of the MPC voted to maintain the current repo rate, while all six unanimously agreed to adopt a neutral stance—marking the first such shift in two years, according to RBI Governor Shaktikanta Das. The neutral stance indicates the central bank is now equally poised to either raise or lower rates, depending on future economic conditions, with a focus on balancing inflation and growth.

This decision aligns with a Mint survey, where 9 out of 10 economists predicted no change in rates this time.

Governor Das will address the media at noon today to provide further details.

This is the first MPC meeting after three new members—Bhattacharya, Kumar, and Singh—were appointed by the government, replacing outgoing members Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma.

Dark Side of Gig Economy: Ola, Uber, and Porter Provide Poor Working Conditions for Workers, Slams Report

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Ride-hailing giants Ola and Uber, along with logistics company Porter, offer poor working conditions for gig workers, according to a report released on Tuesday.

The report by Bengaluru-based Fairwork India highlights the concerning labor standards within India’s platform economy, stressing the urgent need for improvements in the working conditions of gig workers.

The report reveals that many drivers are trapped by the promises made by platforms like Ola and Uber, facing shifting customer behavior and impersonal support systems.

Natarajan, a 44-year-old veteran driver from Chennai, likened these companies to “vittal poochi” (winged termites), which lure drivers with enticing promises but fail to deliver on them. Drawn by Ola’s offers, Natarajan became a driver for the company in 2017 but soon witnessed a decline in benefits.

“Once the companies gained our trust, they started reducing the offers and opportunities they initially provided,” Natarajan explained. “But now we’re stuck; it’s nearly impossible to step outside of Ola or Uber and start our own independent taxi services.”

He also noted that the rise of these platforms has influenced public behavior, making it difficult for drivers to operate outside their ecosystem. Features like “constant tracking and emergency support” have won the public’s trust, making these platforms seem safer than traditional cab services.

Additionally, Natarajan pointed out that automation has made it harder for drivers to raise concerns. “The automated AI responses feel detached and uncaring. They always say, ‘We will take this into consideration,’ but nothing changes.”

The report was based on interviews with 440 workers from 11 platforms in five cities. It evaluated the platforms based on five key principles: fair pay, fair conditions, fair contracts, fair management, and fair representation.

The platforms assessed included Amazon Flex, Bigbasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto, and Zomato, which offer location-based services across various sectors such as personal care, logistics, food delivery, and transportation.

As SEBI Clears IPO Application of NSDL, both IDBI Bank, SBI Gear Up To Sell Stakes

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The Securities and Exchange Board of India (SEBI) has given its nod for the initial public offering (IPO) of the National Securities Depository Ltd (NSDL), India’s largest depository. This approval marks a significant milestone for the country’s financial market infrastructure.

SEBI issued an observation on September 30, indicating a green light for the IPO. In regulatory terms, the observation letter from SEBI signifies that the market regulator has reviewed and cleared the company’s proposal to float a public issue.

The NSDL IPO will be entirely an offer-for-sale (OFS), allowing its existing shareholders to offload their stakes. According to the draft red herring prospectus (DRHP) filed by the depository on July 7, the sale will involve up to 5.72 crore shares, each with a face value of Rs 2.

Among the key sellers, IDBI Bank, which holds nearly 26% of NSDL, plans to offload 2.22 crore shares, while the National Stock Exchange (NSE), with a 24% stake, will sell 1.8 crore shares. State Bank of India (SBI), Union Bank of India (UBI), and Canara Bank, holding smaller stakes, will also participate in the OFS. UBI will sell 56.2 lakh shares, while SBI and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 40 lakh and 34 lakh shares, respectively. HDFC Bank, which holds an 8.95% stake, is also set to divest a 2% stake.

NSDL has been a cornerstone of India’s financial infrastructure since its inception. Established in November 1996, following the implementation of the Depositories Act, NSDL spearheaded the dematerialisation of securities in India—a move that revolutionized the handling of financial instruments in the country. Prior to dematerialisation, the trading of physical certificates was cumbersome and fraught with risks such as forgery and loss. NSDL’s pioneering efforts addressed these concerns, enabling faster, safer, and more efficient securities trading.

Today, NSDL remains a leader in the depository space, managing the largest number of issuers and active instruments in the country. As of March 31, 2023, it dominates the market in terms of dematerialised settlement volume and the value of assets held in custody. Its upcoming IPO marks another chapter in the company’s influential role in India’s financial markets.

The IPO is expected to attract significant interest, given the firm’s pivotal position and the participation of major financial institutions in the offering.

Insurance Revenue Last Year Doubles to Rs 100 Crore: Report

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Insurance sector has doubled its revenues in fiscal 2023-24 reaching Rs 100.28 crore, compared to Rs 48.74 crore in FY22-23, reports said.

Founded in 2016 by Ankit Agrawal and Ish Babbar, Gurugram-based insurtech platform Insurance Dekho that compares and offers  data on various types of insurance purchases, including motor, health, life, travel, and pet insurance, said in its report. It competes with established players like Acko and Policy Bazaar in India’s growing insurtech sector.

Insurance Dekho has raised a total of Rs 1,742.28 crore over two funding rounds, with its latest Series B round in October 2023 led by MUFG and BNP Paribas Cardif, valuing the company at over Rs 1,000 crore. In April 2023, the platform made strategic acquisitions of IRSS and Verak to expand its footprint.

The company’s financial performance in FY23 showed not only a surge in revenue but also a narrowing of losses. Its net loss reduced to Rs 51.59 crore from Rs 70 crore in FY22. Despite this improvement, Insurance Dekho’s expenses also climbed, reaching Rs 151.88 crore, driven largely by employee benefits, which accounted for over 50% of the total, followed by costs in advertising, finance, and legal services.

The platform’s key financial metrics remained in negative territory, with an EBITDA margin of -44.98% and a Return on Capital Employed (ROCE) of -15.28%, indicating continued challenges in profitability. However, the reduction in losses suggests a path toward greater financial stability as the company scales its operations.

The majority of Insurance Dekho’s shares are held by Amit Jain, who controls over 50%, alongside prominent investors such as West Street and TVS Shriram Growth AIF.

As the insurtech market in India continues to expand, Insurance Dekho’s robust revenue growth and strategic acquisitions position it for further success despite the current hurdles in profitability.

Indian Startups Raise $93 Million Despite Slower Week Amid Funding Dip

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BENGALURU, Oct 5, 2024: In a relatively quiet week for Indian startups, 21 companies raised nearly $93 million across 16 deals, signaling a significant drop compared to the $461 million raised by 29 startups just a week prior. This week’s tally included four growth-stage deals and 12 early-stage fundings.

Agriculture supply chain startup Waycool secured Rs 100 crore (approximately $12 million) in debt financing from Grand Anicut. The company specializes in purchasing fresh produce, including dairy, directly from farmers and supplying it to retailers and restaurants.

In fintech, Basic Home Loan raised $10.6 million (Rs 87.5 crore) in a Series B round led by Bertelsmann India Investments (BII) and CE-Ventures. The funding will help the platform expand its reach in the home loan market.

Millet-based snack brand Troo Good attracted Rs 72 crore in funding, led by Oaks Asset Management, with participation from Puro Wellness and V Ocean Investments, according to Entrackr.

Among the 12 early-stage deals, Mstack, a chemical manufacturing platform, led the way with a significant share of the $59.05 million raised. Drone technology company IG Drones secured $1 million in its first funding round, led by India Accelerator and angel investors.

Meanwhile, mental health startup LISSUN raised $2.5 million from RPSG Capital Ventures and other investors.

Geographically, startups from Bengaluru and Delhi-NCR dominated the funding scene, each securing seven deals. Mumbai, Hyderabad, and Chennai also saw activity.

Broader Funding Trends

In the third quarter of 2024 (July-September), domestic startups raised more than $4 billion, driven by multiple transactions over $300 million and $200 million. The period saw 85 growth and late-stage deals totaling $3.3 billion, while 207 early-stage deals accounted for $754.26 million.

From January to September, India’s tech startup ecosystem garnered $7.6 billion in funding, producing six new unicorns. The IPO market also witnessed a surge, with 29 tech companies going public in 2024 (year to date), up from 15 in the same period last year, according to Tracxn.

Despite this week’s slowdown, the broader landscape remains resilient, with the potential for continued growth in the Indian startup ecosystem.

RBI Likely to Hold Rates Amid Inflation Concerns, Focus Shifts to Global Trends

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As the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meets from October 7-9, experts are predicting that the central bank will maintain the current policy rates. The decision is expected to be influenced by persistent inflationary pressures and uncertainties in the global economic landscape. While the U.S. Federal Reserve has recently cut rates, signaling a potential easing cycle, the RBI is likely to adopt a cautious stance, prioritizing inflation control over rate cuts, according to analysts.

The primary factor guiding the MPC’s expected decision to maintain the status quo is the central bank’s ongoing battle against inflation. Consumer Price Index (CPI) inflation, which remains above the RBI’s 4% target, has seen fluctuations largely driven by food price volatility. This has led policymakers to tread carefully, avoiding premature rate cuts that could reignite inflation.

Ajit Banerjee, President and Chief Investment Officer at Shriram Life Insurance, noted that the RBI will likely wait until it is certain that inflation has been durably controlled. “The committee is expected to hold rates steady until there’s clear evidence that inflation, especially food-driven spikes, are less of a threat,” he explained.

India’s GDP growth, while not alarmingly low, has been moderate. The first quarter’s 6.7% growth was influenced by a slowdown in government investment, mainly due to election-related factors. With government capital expenditure resuming in the second quarter, GDP growth is expected to align with RBI’s earlier projections. However, experts say the domestic growth trajectory doesn’t warrant urgent rate cuts at this stage.

Mandar Pitale, Head of Treasury at SBM Bank India, pointed out that while growth remains robust, the MPC will likely stay cautious. “Strong GDP growth numbers in India reduce the immediate pressure on the RBI to cut rates. The focus is more on ensuring that inflation stabilizes over the long term,” Pitale added.

Global Economic Uncertainty and Fed Influence

The global economic environment also weighs heavily on the MPC’s deliberations. Recent rate actions by developed economies, particularly the Federal Reserve, have added complexity to the RBI’s decision-making process. While the Fed’s rate cut could suggest a global trend toward monetary easing, the MPC is expected to be wary of following suit too quickly.

Pitale highlighted that global factors, such as inflation trends in developed markets and the Fed’s forward guidance on rates, would play a critical role in the committee’s discussions. “The RBI is aware of the nonlinear guidance coming from global central banks, which creates uncertainties about the future direction of monetary policy globally,” he said.

While no immediate rate cuts are expected, the tone of RBI Governor Shaktikanta Das’s commentary could signal future policy direction. A dovish shift, with hints of a more neutral stance, may emerge if inflation moderates in the coming months. However, the reconstitution of the MPC, with three new external members, makes a drastic policy shift unlikely in this meeting.

Banerjee suggested that while significant changes in this meeting are improbable, a dovish tone could set the stage for future rate cuts, provided inflation eases. “A shift in the MPC’s stance isn’t entirely off the table, but the immediate focus remains on inflation management,” he said.

The RBI’s decision to maintain its restrictive policy is a calculated move to ensure inflation is brought under control, aligning with its long-term target. As global economic dynamics remain uncertain and domestic inflation continues to challenge policy stability, the central bank is likely to hold off on any major policy shifts in the near term.

In the coming months, both domestic inflation trends and global economic factors will determine whether the RBI begins to ease its policy stance. For now, the central bank seems set on a cautious, wait-and-watch approach.

Amazon Finds New Ally In India Post’s Parcel Delivery Network To tap Rural Consumers

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In a calculated move to enhance logistics operations, Amazon and the Department of Posts signed a Memorandum of Understanding (MoU) on Friday. This partnership will leverage India’s vast postal network, comprising over 1.6 lakh post offices, to facilitate faster parcel delivery across the country, including remote regions.

The collaboration aims to optimize logistics and business operations for both parties. Amazon will gain access to the postal department’s expansive infrastructure, enabling it to improve delivery speed and efficiency while exploring opportunities for business expansion in underserved areas.

Key areas of the partnership include synchronization of logistics operations, knowledge-sharing, and capacity-sharing opportunities, according to a statement from the Ministry of Communications. Both parties will conduct quarterly reviews to assess progress and explore further avenues for enhancing the partnership.

This alliance is set to streamline Amazon’s logistics operations, aligning with its growing e-commerce needs, while also scaling up the Department of Posts’ parcel business. By working closely with Amazon, the postal department aims to enhance its expertise in e-commerce logistics and contribute to India’s broader goal of becoming a global logistics hub.

Amazon and the Department of Posts have been collaborating since 2013, utilizing the postal network for parcel transmission. This new MoU strengthens their ongoing relationship, aiming to support India’s burgeoning e-commerce sector by improving logistical capabilities and fostering economic growth.

In a related development, the Ministry of Labour and Employment recently signed an MoU with Amazon to enhance employment accessibility in India. This two-year partnership focuses on leveraging the National Career Service (NCS) portal to boost job opportunities, particularly for women and ‘divyang’ (differently-abled) candidates.