#1. Warburg Pincus has to pare stake in Home First before acquiring Shriram Housing
The Reserve Bank of India has asked private equity company Warburg Pincus to reduce its stake in mortgage lender Home First Finance to 20 percent or lower before completing the proposed acquisition of Shriram Housing Finance, the Mint reported. The regulator is in discussions with all stakeholders to work out the contours of the deal and ownership transfer.
Why it’s important: The Reserve Bank is said to be uncomfortable with one entity holding large stakes in two similar companies in the financial sector. It might make better business sense for Warburg Pincus to reduce its stake or exit its shareholding in Home First Finance.
#2. Listed real estate firms raise Rs 12,800 crore via QIPs in nine months of 2024
Listed realty companies have raised Rs 12,801 crore via qualified institutional placements in the first nine months of 2024 as they turned to IPO and QIPs to fund expansion, the Business Standard reported, citing consultant Anarock. Strong demand from homebuyers also prompted developers to raise funds via IPOs to fund new project launches. Since 2021, six developers collectively raised Rs 5,275 crore through IPOs.
Why it’s important: Robust growth in housing sales after the pandemic has enabled leading developers to offload relevant inventory across geographical locations. The near-term outlook remains positive despite a high rate of supply addition.
#3. Early backers of food delivery platform Swiggy to reap windfall when IPO launches
The early investors in Swiggy, which include Accel, Apoletto, Elevation Capital and Norwest Venture Partners, are set to reap manifold gains on investments as the firm goes public in November, according to an analysis by Mint. The Rs 11,300 crore offer includes Rs 4,499 crore in fresh capital issue and a secondary sale of 175.1 million equity shares through an offer for sale by some investors offloading part of their stake.
Why it’s important: Swiggy’s IPO highlights the growing investor appetite for tech-driven businesses, particularly in sectors such as food delivery and quick commerce. It would also set an encouraging precedent for other Indian startups, particularly those in online commerce.
#4. High prices keep demand for jewellery and gold low in ongoing festive season
There has been a 10-15 percent decline in jewellery and gold demand by volume as consumers purchased lightweight jewellery, the Economic Times reported. However, value sales of gold increased by up to 25 percent due to high prices, with most consumers preferring jewellery in the price range of Rs 1-3 lakh.
Why it’s important: Demand for gold jewellery was expected to slump as prices have surged by as much as 30 percent in recent times. Consumers have also opted for silver jewellery, pushing up demand for silver.
#5. Domestic institutions keep up market purchase momentum despite record pullout by FIIs
Overseas investors have pulled Rs 1 lakh crore out of Indian equities in October, beating the record in the Covid-ravaged March of 2020, the Economic Times reported. However, the fall in equity gauges was not as sharp because domestic funds more than matching the sales momentum through record purchases.
Why it’s important: Domestic institutional investors may have for the first time this millennium pulled ahead of foreign funds in owning locally listed firms. This underscores a shifting centre of gravity in the ownership of local risk assets.
#6. Adani Enterprises drop plan to demerge stake in Adani Wilmar joint venture
The board of Adani Enterprises has withdrawn its earlier decision to spin off the shareholding of the group’s FMCG unit Adani Wilmar and transferring the stake to its shareholders, the Mint reported. Adani Wilmar, which has 87.9 percent promoter shareholding, needs to first meet its minimum public shareholding requirement of 25 percent, the company said.
Why it’s important: Adani Enterprises had earlier announced that it would demerge its stake in Adani Wilmar, ending its joint venture with Wilmar International. This would now have to wait till regulatory norms on public holdings are fulfilled.
#7. Posco returns to India, to set up 5 MPTA factory in collaboration with JSW Group
Nearly 19 years after shelving plans to set up an integrated steel plant, Korean steel company Posco has joined hands with the JSW Group to set up a 5 million tons per annum plant, the Hindu Businessline reported. Besides this, the partners will explore investment opportunities in energy transition projects.
Why it’s important: The announcement comes than two years after Posco signed a pact with the Adani Group to explore business cooperation opportunities, including setting up a steel mill for $5 billion in Mundra. The Korean steelmaker is making concerted efforts to re-enter the Indian market.
#8. Central government to soon notify specific rules on personal data protection
Administrative rules providing specifics of the legislation governing personal data and its protection are likely to be notified soon, the Economic Times reported. This could happen well before the Maharashtra assembly elections on November 20. The Digital Personal Data Protection Act was enacted in August 2023 but is yet to become operational.
Why it’s important: the law, which would be implemented after the rules are notified, mandates a consent-based framework on the principles of data minimization. It also lays out strong rules for parental consent for data pertaining to children.
#9. Unicorns abound in India’s startup ecosystem, but investment in new ventures lags
India is the third-largest ecosystem in the world after the US and China in terms of the number of unicorns it has spawned but the country has a long way to go to break into the global start-up rankings based on overall investment activity, the Hindu Businessline reported, citing data from research firm Pitchbook.
Why it’s important: in countries like the US or China, stakeholders like the government, investors and universities act in tandem supporting each other. For investment activity to increase, the same is needed in Indian cities.
#10. Consumer protection authority tightens screws on surrogate advertising, to fine celebrities
After companies, celebrities and social media influencers would censure from the Central Consumer Protection Authority as they face fines of up to Rs 50 lakh if found promoting alcohol and tobacco through surrogate advertising, the Mint reported. New guidelines have suggested that endorsers must ensure they are promoting legitimate products and not restricted items like alcohol or tobacco.
Why it’s important: The proposed norms, which place special emphasis on alcohol and tobacco advertisements, are meant to prevent brands from subtly promoting restricted products by associating them with permissible ones.
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