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

Swiggy is considering filing for its IPO this week to raise more than $1 billion, the Business Standard reported. The Bengaluru-based firm is waiting for approval from the Securities and Exchange Board of India to proceed with the filing. Details of the offering are still under discussion and subject to change.

Why it’s important: The public listing of Swiggy will add to a strong pipeline of share sales in India. More listings are expected in the coming months, including one by Hyundai Motor, which could be one of the biggest-ever listings in the country, and another by LG Electronics, which may raise $1.4 billion via an IPO.

#3. Inheritance tussle intensifies at Oberoi family over assets of hospitality conglomerate

Members of the Oberoi family are engaged in an inheritance battle that comes at a time for the hospitality group that’s planning to expand, the Economic Times reported. Ranged on one side are Vikramjit Oberoi, Natasha Oberoi and Arjun Oberoi, opposing Anastasia Oberoi, the late PRS Oberoi’s daughter by Mirjana Jojic Oberoi. At the center of the dispute are two differing wills said to have been drawn up by PRS Oberoi.

Why it’s important: Succession is not always smooth in India’s big business families. The tussle among the Oberoi scions has been simmering for the past 3-4 years and may impact the hospitality giant’s development plans as it seeks to sign in more properties in a hyper-competitive industry.

#4. Dispute between Baba Kalyani and siblings take new turn as new court affidavit surfaces

The dispute between the families of Bharat Forge chief Baba Kalyani and his siblings may take a fresh turn with the surfacing of a court affidavit filed two years ago, the Mint reported. The document reveals a will by Baba Kalyani’s late mother, Sulochana Kalyani, who gifted most of the family wealth to her younger son, Gaurishankar Kalyani, in sharp contrast with elder brother Baba Kalyani’s claims over the family wealth.

Why it’s important: The new development marks a new turn in the family dispute, which so far has been primarily between Sugandha Hiremath and her family on one side and Baba Kalyani and Gaurishankar Kalyani’s families on the other. It could lead to fresh legal challenges.

#5. Stockbrokers see margin trading books swell to Rs 80,000 crore, up 55 percent in eight months

The constant uptick in equities has given a fillip to margin trading facility of brokers that allows up to 5 times leverage to those trading in the cash market, the Hindu Businessline reported. The margin trading book has swelled to Rs 80,000 crore, a growth of over 55 percent in the past eight months. It was Rs 51,000 crore at the end of last year and has grown about 3 times since March 2023.

Why it’s important: The expansion is a function of market growth and an increase in the number of clients trading in direct equities over the past few years. The rise may push up financial leverage for stockbrokers, who borrow from banks or go to the market to raise money.

#6. Government may use quick commerce data as inputs to better understand economic activity

The central government is considering tapping into purchases made through quick commerce platforms like Zepto, Blinkit, Instamart and BigBasket to understand changes in consumption patterns and pace of economic activity as part of an exercise to revise the base year for national accounts and various other official statistics, the Economic Times reported.

Why it’s important: Quick commerce has seen rapid growth in India since the pandemic and the platforms operating in the space are said to account for 5-6 percent of overall household grocery spending in the country. Most FMCG companies say it is their fastest growing sales channel.

#7. Credit growth moderates in India, closing gap with deposits on regulatory measures

The difference between non-food credit and deposit growth in banks operating in India shrank from 3.11 percentage points on July 26 to 2.75 percentage points on August 23, the mint reported, citing latest data from the Reserve Bank of India. While credit growth stood at 13.6 percent year-on-year on August 23, deposits grew 10.8 percent in the same period.

Why it’s important: Credit growth in the country had leapt far ahead of deposit growth. As recent regulatory measures take effect and banks dial down their loaning frenzy, the worrying gap seems to be narrowing. The rate of credit growth is likely to show a declining trend for the rest of the financial year.

#8. JSW Energy arm commissions 300 MW wind power project in Tamil Nadu

JSW Energy has said that its step-down subsidiary, JSW Renew Energy Two, has commissioned a 300 MW wind power plant at Tuticorin in Tamil Nadu, the Economic Times reported. This marks the first greenfield wind power plant commissioned by the company for the Solar Energy Corporation of India.

Why it’s important: Once the mainstay of the domestic renewables sector, the pace of capacity additions in wind power has slowed in recent years. It remains one of the key elements of India’s energy transition.

#9. Central government may mandate stiffer penalties on India’s banks for non-compliance

The government will consider allowing higher fines on banks operating in the country for not complying with regulatory norms, the Business Standard reported. The central government is open to reviewing the mechanism followed by the regulator by amending the Banking Regulation (BR) Act of 1949 and the Reserve Bank of India Act of 1934.

Why it’s important: There are concerns that the current penalty amounts may not act as effective deterrents for large organizations or repeat offenders. Raising the penalties may ally these worries.

#10. New antitrust rules notified last week may make hostile takeovers easier in India

Hostile takeovers in India have got a boost from the antitrust watchdog as companies will no longer need approval from the Competition Commission of India for buying up to 25 percent shares of a target firm in the secondary market before making a formal bid, the Mint reported. This provision was among several changes in the M&A rules notified last week by the commission.

Why it’s important: The new merger review norm by the competition watchdog based on deal value comes without a grandfathering clause. Any company buying 25 percent shares will still have to make an open offer to public shareholders as mandated by the market regulator.