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

Amazon is ramping up investments in its subscription program Amazon Prime to speed up deliveries as it faces mounting competition in India’s fast-growing quick commerce market, the Mint reported. The ecommerce giant is channeling these investments into supply chains and physical infrastructure to improve delivery times, a top executive said.

Why it’s important: The investment comes when India is seeing a rapid rise of quick commerce, with rivals like Flipkart and Zepto pushing the envelope with fast deliveries, forcing incumbents to hasten operations.

#3. Adani Enterprises raises $500 million through QIP on robust investor demand 

Adani Enterprises has raised $500 million through its qualified institutional placement, the Economic Times reported. The flagship decided against exercising a greenshoe option of an equivalent amount despite robust investor interest. The QIP attracted investors such as GQG Partners, Quant Mutual Fund, SBI General Insurance, SBI Life Insurance and HDFC Life Insurance.

Why it’s important: Adani Enterprises has board approval to raise Rs 16,600 crore through QIPs. With the latest fundraising, it has raised a fourth of the approved amount so more could be in the offing.

#4. Vedanta, Jindal and CESC in race to buy assets of Hiranmaye Energy worth Rs 1,300 crore 

Naveen Jindal-promoted Jindal Power, Vedanta and Sanjiv Goenka-promoted CESC are among eight firms in the fray to acquire Hiranmaye Energy, a Kolkata-based thermal power producer, the Economic times reported. Lenders will auction the assets in mid-October and have set a reserve price of Rs 1,300 crore. Others in the race include Hindustan Power, Rungta Mines and Damodar Valley Corporation.

Why it’s important: Hiranmaye Energy is going through corporate insolvency and the reserve price of Rs 4.33 crore per MW appears attractive. The auction may fetch more for the creditors though.

#5. Online marketplaces sell goods worth $6.5 billion in one week on festive demand 

Ecommerce platforms sold goods worth $6.5 billion, or almost Rs 55,000 crore, in one week of festive sales, marking a 26 percent increase from last year, with mobile phones, electronics, consumer durables, home and general merchandise accounting for three-fourths of total sales, the Economic Times reported. Sales in the week starting September 26 made up for about 55 percent of the total ecommerce sales expected in the festive period this year, consultancy Datum Intelligence said.

Why it’s important: Ecommerce players and brands selling online are expected to clock $12 billion in gross merchandise value this festive season, 23 percent higher than around $9.7 billion last year.

#6. Senco Gold in advanced discussions to acquire omnichannel jewelry retailer Melorra 

Kolkata-based jeweller Senco Gold, which went public last year, has placed a bid to acquire omnichannel jewelry retailer Melorra as it seeks to expand its presence in the e-commerce space, the Mint reported. Senco is likely to acquire Melorra in a deal valued at Rs 40-50 crore, although the valuation was still being negotiated and the deal size could change as talks progress.

Why it’s important: The listed gold retailer is one of several potential buyers Melorra has been negotiating with in recent months as it requires capital. Senco, which has a sizable presence in eastern India, is seeking to bolster its online presence.

#7. Central government considers seed funding to establish a shipping insurance entity

The Centre is considering deploying its own funds as preliminary investment to establish a protection and indemnity entity to insure cargo vessels, the Business Standard reported. This approach would involve private insurers and shippers contributing at a secondary stage.

Why it’s important: Indian-owned ships are currently insured in various nations, with premiums substantially higher for vessels navigating volatile regions like West Asia and Russia. A clear framework and protection agency could lower these costs.

#8. Derivatives trades by proprietary and retail investors fall even before regulatory curbs kick in 

Before the market regulator tightened rules on equity derivatives trading, proprietary traders, one of the segment’s biggest constituents, saw a decline in index options turnover in August, a trend likely to have continued in September, the Mint reported. In individual turnover as well, moderation seems to have set in at a slower pace.

Why it’s important: The market regulator has announced measures to moderate volumes in light of the massive losses to individual or retail clients trading in derivatives, especially index options. However, volumes began cooling even before the watchdog announced the measures.

#9. Corporate India sees stability as fewer CEOs left in past five years than in preceding five 

India Inc saw fewer CEO departures in the last five financial years compared with the 2014-15 and 2018--19, the Economic Times reported. A study by EMA Partners India, which covered the BSE 200 companies, found the number of CEOs exiting the position in the past five fiscal years dropped by 18.75 percent from the count for the preceding five years.

Why it’s important: The fewer CEO departures point to more stability at the top corporate leadership level. It was largely due to company boards prioritizing long-term growth, continuity and the evolving nature of leadership roles.

#10. Annual increments to be muted as Indian companies set to hand out higher variable pay 

Companies in India are expected to hand out more than 90 percent of the variable pay in the upcoming appraisal season as annual increments are expected to be muted like the last time, the Mint reported. Average bonus was 14.5 percent of the total package in 2022 as firms fought hard to retain talent amid high attrition. As the churn eased, muted hiring brought down this share to 13.6 percent, which is expected to remain unchanged in 2025, according to estimates by Aon, a consultancy.

Why it’s important: While corporate hiring has eased since after the pandemic, especially in software services, costs remain high as companies had doled out fat hikes and bonuses as the war for talent raged. The situation will remain about the same till demand picks up in key markets overseas.