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

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

#1. Adani Group starts discussions to refinance $1.1 billion worth of loans for green energy business

The Adani Group has initiated talks with investors and banks to refinance $1.1 billion worth of loans of Adani Green Energy that are up for repayment in March 2025, the Mint reported. Besides local financial institutions, it has held talks with investors and lenders from West Asia, Europe and Japan for a private placement to refinance the loan.

Why it’s important: The development comes after the conglomerate scrapped a $1.2 billion offshore bond issuance plans in November following an indictment of Gautam Adani by the US department of justice.

#2. Adani Ports will not take $553 million from US development finance for Sri Lankan project

Adani Ports and Special Economic Zone has withdrawn its request for $553 million funding from the US Development Finance Corporation for completing a port project in Sri Lanka, saying that it would fund the project through internal accruals, the Hindu Businessline reported. It has around $290 million of debt repayments coming up next month, backed by a pledge of Haifa port in Israel.

Why it’s important: This would have been the first time that the US government, through one of its agencies, funded an Adani project. The group is currently under a cloud, with authorities in the US levelling charges of bribery against Gautam Adani and other executives. The group has denied wrongdoing.

#3. Coca-Cola to sell 40 percent stake in bottling unit to Jubilant Bhartiya Group for Rs 12,500 crore

Coca-Cola Company of the US will offload 40 percent in Hindustan Coca-Cola Beverages, a bottling plant, to Jubilant Bhartia Group for Rs 12,500 crore ($1.47 billion), the Economic Times reported. The companies have not formally disclosed any financial details of the transaction.

Why it’s important: The transaction marks a shift in the India strategy of the world’s largest beverage maker and paves the way for the bottling units potential local listing. The deal is the biggest by Jubilant Bhartia, which holds exclusive franchise rights for Domino’s Pizza.

#4. JSW Group plans to diversify into other metals, including copper and aluminum

The JSW Group, which has the largest steelmaking capacity in India, is exploring entry into making other metals, including copper and aluminum, JSW Steel chief executive officer Jayant Acharya told the Mint. The steel to auto conglomerate has hired consultants to explore the financial feasibility of such an expansion.

Why it’s important: The growing trend of electrification in India has boosted the demand prospects of several metals like copper and aluminum, prompting the conglomerate to look at new business avenues.

#5. Same day settlement cycle will impact margins and profitability, stockbrokers say

The extension of the T+0 settlement cycle to the top 500 stocks will impact the profit margin of brokers even as they try to charge a higher broking fee for same-day settlement, the Hindu Businessline reported. The market regulator has expanded the optional T+0 settlement cycle in the equity cash market starting January. An earlier roll-out of the T+0 settlement cycle for 25 scrips in March attracted little participation from investors.

Why it’s important: Low liquidity will also remain a concern in the T+0 settlement cycle as most investors may not prefer to pay extra brokerage for getting their own money on the same day.

#6. Government may announce $3 billion incentive package to encourage electronics industry

The federal government is working on a $3 billion package for the electronics industry to encourage private sector R&D and create leading brands, the Mint reported. A task force set up by the ministry of electronics and information technology six months ago studied the viability and market readiness of such a scheme and submitted actionable points.

Why it’s important: India is looking for ways to encourage maximum local value addition. The government wants to boost product manufacturing in the country and a robust R&D ecosystem is vital to achieve that.

#7. Indian Oil’s Gift city arm finances deals worth $250 million for group units in one year of operation

Indian Oil Corporation’s Gift City unit has financed deals worth over $250 million for its group firms in just about a year of operation, the Economic Times reported. It aims to reach a target of $1 billion in deals in 8-10 months. Indian Oil is also leveraging the advantage of the offshore jurisdiction of Gift City to directly invest overseas.

Why it’s important: IOC Global Capital Management IFSC seems to have made the most of the fiscal benefits, regulatory ease and business opportunities in in Gujarat’s Gift City. It has helped the state-owned company to optimize borrowing costs.

#8. Inventory pileup amid muted sales sees auto industry offer record discounts on cars

Discounts on passenger vehicles in India have touched unprecedented levels, the Business Standard reported, citing the Federation of Automobile Dealers Association. This comes on the back of muted buying sentiment in the passenger ehicle market, which saw a 14 percent drop in retail sales following the festive month of October.

Why it’s important: Automakers and dealers are offering substantial discounts to reduce excess inventory, which is at a high of 65 days. It indicates a slowdown in vehicle sales, prompting a need for aggressive promotions to clear stock.

#9. India faces shortage of 200 million sq ft of quality office space even as leasing demand increases

India is facing a shortage of about 20 million sq ft of Grade A+ office every year, with demand for quality office outstripping supply, the Economic Times reported. In 2023, against the supply of 24.8 msf of Grade A+ buildings, the net absorption was 40.9 msf, while in the current financial year till September, 33.7 msf has already been leased against the supply of 13.9 msf, according to Cushman & Wakefield data.

Why it’s important: Global multinationals are continuing to invest in India and wish to create workplaces similar to their home countries. This would be the third straight year of surpassing the 70 msf milestone, a first in India’s office space leasing history.

#10. After tough 2023, layoffs in startups decline in 2024 as domestic ecosystem stabilizes

India’s startup ecosystem is stabilizing after a turbulent phase in the past 1.5 years, the Hindu Businessline reported. Layoffs by startups, which peaked in 2023 with 16,398 employees being given the pink slip across 92 firms, saw a notable decline in 2024, dropping to 8,895 employees from 32 companies, according to data from start-up layoffs tracker Layoffs.ai.

Why it’s important: Job losses in the year were primarily due to economic headwinds and shifting consumer behaviors. However, the decline in layoffs indicates a more cautious and profitability-focused approach by local startups following aggressive expansion during the pandemic.