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. Singapore’s GIC to raise stake to majority in Asia Healthcare Holdings ahead of potential IPO

Singapore’s GIC will raise its stake in Asia Healthcare Holdings ahead of a potential public listing of the healthcare platform in the next year or two, the Mint reported. The Singapore sovereign fund will buy 15 percent more stake in AHH from majority owner TPG. The investment may value AHH at $800-900 million.

Why it’s important: There is considerable investor interest in India’s private healthcare industry. Also, several hospitals, diagnostics, medical devices and pharma distribution firms have gone public since the pandemic, fuelled by private equity exits, rising demand and strong growth prospects.

#2. Blackstone and Sattva Group set to file papers for $750-800 million office real estate investment trust

Alternative asset manager Blackstone and real estate developer Sattva Group are close to filing initial draft papers for a listing of an office real estate investment trust comprising around 50 million sq ft of commercial assets to raise around $750-800 million, the Hindu Businessline reported. Blackstone’s assets under its office platform Nucleus Office Parks and those developed with Sattva will form the portfolio.

Why it’s important: The proposed REIT is expected to be the largest in terms of funds raised and the one with the largest portfolio. Blackstone has been key player in the evolution of REITs in India, having been a co-sponsor in Embassy and Mindspace REITs while being the main sponsor of Nexus Select Trust.

#3. iPhone India shipments cross $10.7 billion so far in 2024, surpassing Samsung two years in row

Apple’s iPhone shipments in India have crossed $10.7 billion (Rs 90,680 crore) by value so far in 2024, surpassing the combined sales of FMCG giants Hindustan Unilever and Nestle in 2023-24, the Economic Times reported. Apple has overtaken Samsung in smartphone sales for the second year in a row and widened the gap with its South Korean rival, showed data from market researcher IDC India.

Why it’s important: The surge in iPhone India shipments stands out amid a broader slowdown in the domestic smartphone market, underscoring the premiumization trend in local consumer demand.

#4. UK’s Vodafone Group to offload remaining 3 percent stake in Indus Towers to clear debt

British telco Vodafone will sell 3 percent stake in Indus Towers to clear its debt of $101 million (Rs 856 crore) and use the residual amount to pay outstanding dues of its Indian venture Vodafone Idea, the Business Standard reported. The transaction is valued at around Rs 2,841 crore.

Why it’s important: The money from the sale will help the telecom operator’s outstanding borrowings of $101 million to existing lenders of cash-strapped Vodafone Idea that were secured against its Indian assets.

#5. Internal probe by Pernod Ricard shows executive collusion with Delhi’s alcohol retailers

An internal investigation by Pernod Ricard has concluded that top executives at its India business violated the law by colluding with alcohol retailers in New Delhi, even as the French giant’s representatives denied wrongdoing in court and publicly, the Mint reported.

Why it’s important: The expose is damning as India’s financial crimes agency last year accused Pernod Ricard India of money laundering by unlawfully facilitating $24 million in corporate guarantees to help some retailers fund their license bids in exchange for stocking more Pernod brands.

#6. Direct plans now make up 40 percent of systematic investment plans through mutual funds

The share of direct plans in SIP accounts has climbed to nearly 40 percent from around 21 percent four years ago, indicating that the majority of the newer investors are coming in through the direct investment channels, the Business Standard reported.

Why it’s important: Direct plans are commission-free and cater to investors comfortable navigating the process without assistance. It indicates increasing financial literacy among Indian savers, who have been veering towards mutual funds for higher returns despite attendant market risks.

#7. Reserve Bank asks shadow banks to oust observers of private equity and venture capital firms

Private equity and venture capital funds often place observers in NBFCs where they acquire stakes instead of nominating directors on their boards, primarily to avoid civil or criminal liabilities in case of any lapses or misdoings. This is unacceptable to the central bank and officials have said as much to several NBFCs, the Economic Times reported. The companies will have to ask the observers to resign, following which they could be considered for appointment as directors.

Why it’s important: The regulatory stance is clear. Private equity and venture capital funds can no longer enjoy power without responsibility in non-banking finance companies where they own equity stakes.

#8. Market regulator clarifies that specified digital platforms are not obligated to register

The Securities and Exchange Board of India has clarified that specified digital platforms are not required to register with the market regulator, the Business Standard reported. The clarification comes after concerns were raised by trade bodies, including the US-India Strategic Partnership Forum and Nasscom.

Why it’s important: The proposals aim to prevent the misuse of digital platforms for stock market manipulation, malpractices or unauthorized investment advice. Regulated entities, such as market intermediaries, stockbrokers and mutual funds cannot associate with unregistered entities.

#9. India Inc working with government to broaden India’s global electronics supply chain

The country’s leading manufacturing and industrial houses are working with the government to enter a broadening global electronics supply chain, the Economic Times reported. About two dozen large industrial houses, which include TII Murugappa, Pidilite, GMR, RP Sanjiv Goenka Group, Bajaj Hindustan and others, have expressed interest in the initiative, according to the India Cellular and Electronics Association.

Why it’s important: Corporate India is sensing an opportunity to leverage strengths and competencies to produce components, sub-assemblies and raw materials such as chemicals and gases. The Indian government is keen to see the country emerge as an electronics manufacturing hub.

#10. Brands disguising adverts for restricted items like liquor and cigarettes to face heat

Music CDs sporting liquor brand logos, playing cards named after cigarette brands and similar surrogate advertising that survived for long in the face of rules is expected to face a setback, with the central government finalizing draft rules to plug existing loopholes, the Mint reported. The Central Consumer Protection Authority plans to release draft guidelines on surrogate advertising this month.

Why it’s important: The new rules will aim to strengthen compliance, particularly in areas such as digital marketing and celebrity endorsements. Surrogate advertisements proliferate in the country despite restrictions and plugging the loopholes would be a welcome move.