Morning Scan: All the big stories to get you started for the day

A round-up of top newspaper stories

#1. IPO rush ahead of holiday season to raise Rs 8,000 crore breaks pre-election jinx

Ahead of the holiday season by foreign portfolio investors, more than half a dozen firms will enter the stock market with initial public offerings by the end of next week, attempting to raise a total of around Rs 8,000 crore. The rush will break the jinx seen during the December preceding general elections. There were no IPOs in the Decembers of 2008, 2013, and 2018, while 2003 saw two IPOs, according to Prime Database.

Why it’s important: Market sentiment is extremely positive. Companies are scrambling to complete initial share sales before the end of next week as flows from overseas investors could moderate due to the holiday season.

#2. Venture debt provide BlackSoil sees investments rise by 44 percent

Venture capital and private equity funds could be seeing subdued year over investments in startups, but it is not the case with alternative investors like venture debt. Mumbai-based alternative debt provider BlackSoil has seen its investment go up by 44 percent in 2023. BlackSoil’s total invested capital for 2023 till now was Rs 1,075 crore. These investments were done in over 40 new companies.

Why it’s important: Entrepreneurs building sustainable and viable businesses are increasingly looking at debt as a tool to fuel growth as a funding winter sets in. Demand for debt seems to be on the rise.

#3. Vedanta Resources to restructure bond repayments worth $3.8 billion

London-listed Vedanta Resources has launched a liability management exercise to restructure repayments of about $3.8 billion on bonds that are set to mature over the next three years after it secured funds from a bank and private credit funds. The conglomerate is providing bondholders with options to extend maturities and partially prepay three bonds.

Why it’s important: The development comes at a time when the London-based firm plans to split businesses such as aluminum, oil and gas, power, steel, and base metals to create five new listed companies. It was in a spot of bother earlier this year of uncertainty over bond repayments.

#4. Crest Data Systems looks to sell 25-30 percent stake to private equity firms

Promoters of Ahmedabad-based Crest Data Systems are looking to sell a 25-30 percent stake in the data analytics and cyber security company to private equity funds. The promoters have approached Carlyle Group, Kedaara, General Atlantic and KKR for the secondary share sale. Crest Data is being valued at $500-600 million for the transaction.

Why it’s important: It might not face problems in raising the money as it is a profitable enterprise. India’s data analytics industry is expected to expand rapidly due to the government’s push on digitization.

#5. Government to launch Rs 10,000 crore incentive scheme for chip ancillaries

The Centre will launch a revised incentive scheme of up to Rs 10,000 crore to promote the establishment of electronic and semiconductor component plants in the country. The new plan, likely to be launched at the beginning of the next financial year, will be an updated version of the current Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors.

Why it’s important: The move is aimed at creating a supporting ecosystem for the mega chip-packaging units being set up by various groups like the Tatas and Kaynes

#6. Logistics costs may lessen as government readies uniform packaging rules

India’s logistics firms will soon have to follow uniform packaging standards as the government is working on packaging standards that would mandate optimum space utilization in warehouses, a move that would support its aim of lowering logistics costs from a high of 14-15 percent of GDP to the 7-8 percent typically seen in advanced economies.

Why it’s important: Uniform packaging rules, as part of the new logistics framework launched last year, would be crucial for achieving cost parity. The cost savings would foster value addition and enterprise.

#7. S&P Global expects India to keep growing at 6.7 to 7 percent till 2025-26

India’s growth prospects remain strong in the medium term, with the economy projected to grow 6.7-7 percent every year between 2024-26, S&P Global Ratings has said. The US rating agency had revised India’s growth forecast upward to 6.4 percent for the year to March from 6 percent estimated earlier. The Reserve Bank has since revised its growth forecast further upwards to 7 percent.

Why it’s important: India’s economy is expected to keep up its expansion despite global headwinds on robust domestic demand. It has exceeded expectation the just-reported fiscal second quarter.

#8. Private equity giant Bain Capital sells Rs 3,737 crore stake in Axis Bank

Bain Capital has sold shares worth Rs3,737 crore in private sector lender Axis Bank through three affiliate firms, which sold a total of 33.38 million shares (1.08 percent stake) at Rs1,119.7 apiece. More than 50 entities comprising foreign funds were among the buyers, including Societe Generale, Morgan Stanley, Goldman Sachs, and UBS.

Why it’s important: Bain likely booked some profits as the shares of Axis Bank has gained 18 percent so far this year, outperforming the Bank Nifty index.

#9. Liquor maker Pernod Ricard bets on India becoming its largest market globally

Pernod Ricard, the maker of Chivas Regal, Glenlivet and Absolut, expects India to outpace the US to become its largest market globally. India currently accounts for more than 10 percent of its global revenue of Rs 12.1 billion and nearly a third of its global volume.

Why it’s important: The liquor market is India is expanding quickly as the economy grows and its middle classes have more disposable income. Global liquor brands have been making a beeline to the country.

#10. Climate summit in Dubai agrees on landmark deal to transition away from fossil fuels

The Dubai climate meeting ended with nearly 200 nations agreeing to transition away from fossil fuels in energy systems for the first time to meet the goal of net zero emissions by 2050. The UAE Consensus became the first climate agreement that explicitly calls for moving away from non-renewable energy sources. It came after two weeks of negotiations.

Why it’s important: The Dubai deal is a declaration of intent that now needs to be followed up with concrete action on the ground that sees a gradual phasing out of all fossil fuels including oil, gas and coal.