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

A round-up of top newspaper stories to keep you ahead of others.

#1. More than two dozen companies line up to raise over Rs 30,000 crore through IPOs

India’s primary market is set to witness a slew of IPOs, with more than two dozen firms aiming to raise over Rs 30,000 crore, the Economic Times reported. Afcons Infrastructure, Emcure Pharmaceuticals, Allied Blenders and Distillers, Asirvad Microfinance, Stanley Lifestyles, Waaree Energies, Premier Energies, Shiva Pharmachem, Bansal Wire Industries, One MobiKwik Systems and CJ Darcl Logistics are among those likely to launch initial public offers in the next 1-2 months.

Why it’s important: Investor interest remains high in India on stable governance and policy continuity, although broader equity indices are smashing records, and many scrips are trading at high valuations.

#2. Quick commerce platform Zepto on track to raise up to $350 million at $3 billion valuation

DST Global and Lightspeed Venture Partners are expected to join the financing round for Zepto, which is on track to raise $300-350 million to be valued at $2.5-3 billion, the Economic Times reported. Private equity funds and existing backers like Nexus Venture Partners are participating in the fundraise.

Why it’s important: Zepto’s ongoing fundraise has emerged as one of the most sought-after deals in the consumer internet segment in 2024 amid continued stress in late-stage fundraising. Investors are attracted by the growing popularity of fast-delivery platforms despite the initial high cash burn.

#3. Value-addition target for incentives in electronic components may double to 35-40 percent

The central government is targeting 35-40 percent value-addition through the yet-to-be launched production-linked incentive scheme for electronics components, the Business Standard reported, implying a doubling from current levels of 18-20 percent in the case of electronics manufacturing. The target of achieving 40 percent local value-addition would be comparable to only China.

Why it’s important: Higher value-addition in electronics manufacturing would lead to more components being sourced locally rather than being imported. It could deepen manufacturing in electronics in India.

#4. Warburg and Multiples in race to acquire controlling stake in Ebco for Rs 3,500 crore

Warburg Pincus is the front runner to buy a controlling stake in furniture hardware maker Ebco, the mint reported. Promoters are planning to sell up to 74 percent stake in the Mumbai-based company for Rs 3,500 crore. Multiples Alternate Asset Management has also reached an advanced stage and bid alongside its limited partners to acquire a controlling stake.

Why it’s important: Both Warburg and Multiples are planning to invest from their new funds closed recently. This is another instance of the newfound bullishness private equity firms are showing in India.

#5. Government-owned State Bank of India and Union Bank announce major fundraising plans

The State Bank of India and Union Bank of India have announced massive fund-raising plans as deposit growth lags credit expansion, the Hindu Businessline reported. India’s largest bank plans to raise up to $3 billion through a public offer and private placement of senior unsecured notes in dollars or any other major foreign currency in 2024-25. Union Bank has firmed up plans to mobilize up to Rs 10,000 crore, including Rs 6,000 crore by way of equity capital and the remaining through bonds.

Why it’s important: The gap between bank deposits and credit growth at state-run banks have been increasing lately, compelling the lenders to tap other avenue to bolster resources and maintain a prudent balance between assets and liabilities.

#6. Tata Motors to bet heavily on electric vehicles by investing up to Rs 18,000 crore in five years

Tata Motors plans to invest between Rs 16,000 crore and Rs 18,000 crore into its electric vehicles division by 2029-30, the business Standard reported. The company, which sells four electric car models, aims to launch six more by March 2026. India’s third-largest carmaker by sales wants a 20 percent share in the passenger vehicle market in five years.

Why it’s important: After sales of electric two-wheelers in India passed an inflection point, the electric cars segment seems to be revving up. Tata Motors will benefit from increased adoption as it already has an established presence in the EV market.

#7. Lenders say provisioning buffer of 5 percent for all infra projects will hurt financiers and viability

Domestic lenders have told the Reserve Bank that creating 5 percent provision buffers for all infrastructure projects would hurt both financiers and viability of the proposed development initiatives, the Economic Times reported. The Indian Banks’ Association have also urged the banking regulator not to implement the new norms retrospectively since it would be difficult to change the negotiated terms in old loan pact.

Why it’s important: The banking overseer is seeking to de-risk bank exposure to long-gestation assets, but lenders are concerned about the stringent norms. A possible way out is to provide for 5 percent of the infrastructure loan amount when a project is being built, progressively reducing it 2.5 percent when it is operational and further to 1 percent after the project has adequate cash flows.

#8. Ola Electric gets regulatory approval to raise Rs 7,250 crore through an initial public offering

Ola Electric, the electric vehicle startup of Bhavish Aggarwal, has secured approval from the Securities and Exchange Board of India for its Rs 7,250 crore IPO, the business Standard reported. Coming at a time when the markets are buoyant, the company may potentially launch its IPO within a month.

Why it’s important: Ola Electric is set to become the first Indian EV company to go public. It will also be the first time in decades that a two-wheeler maker has entered the public market.

#9. Bankruptcy watchdog to ease compliance for faster implementation of rescue plans

The Insolvency and Bankruptcy Board of India plans to reduce the compliance burden on debt resolution professionals so that they stitch together rescue plans for firms rather than just filling forms, the Mint reported. The idea is to reduce the number of forms and volume of information that resolution professionals have to submit and to make the reporting process simpler and efficient.

Why it’s important: there is now opportunity to simplify and optimize the forms to be filled by resolution professionals on enhanced data capture capabilities, particularly through the creation of a portal that could be leveraged.

#10. Apple’s iPhone exports to surge to $2 billion in April-May, official data show

Apple has pushed the pedal on exporting iPhones from India by ramping up exports valued at over $2 billion in the first two months of the current financial year, the business Standard reported. This accounts for 81 percent of the country’s total production of iPhones worth $2.6 billion. In May, Apple repeated its performance of April and once again crossed $1 billion of iPhone exports.

Why it’s important: Apple’s contract manufacturers have made the most of business incentives to rapidly expand manufacturing capacity in India. Apple is successfully diversifying its supply chains away from China and India has emerged as the main beneficiary.