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

Reliance Industries has spent around 55-60 percent of the Rs 75,000 crore earmarked for investing in its new energy business, which will soon launch the first phase of the 20 GW solar factory, the Hindu Businessline reported. Chairman and managing director Mukesh Ambani had announced the investment at the company’s annual general meeting in 2021. The amount has been spent in getting the ecosystem ready.

Why it’s important: Reliance intends a strong pivot to renewables. Mukesh Ambani had recently indicated that the new energy business will be scaled up in 5-7 years to the size of its oil-to-chemicals business, which is worth around $6-7 billion. That plan seems to be on track.

#3. Blackstone to end bumper 2024 with public listing of International Gemological Institute

With more than $3 billion garnered through exits in 2024, private equity giant Blackstone is looking at one of its most profitable years out of India, the Mint reported. The latest public offering from Blackstone, the listing of diamond and jewelry certifier International Gemological Institute, will be its seventh profit booking milestone this year.

Why it’s important: The world’s largest private equity firm is on a roll in India. Despite the bumper collections, it will be sitting on much more in potential future gains since it still holds big chunks in almost all the companies in which it is selling stakes.

#4. Haldiram Snacks gets third suiter in Alpha Wave in form of a billion dollar binding offer

Alpha Wave, an arm of Tiger Global Management, has made a binding offer to buy a sliver of Haldiram Snacks Food for more than a billion dollars, the Economic Times reported. The US-based investment manager joins two competing investor consortiums, led by Blackstone and Bain, which submitted firm bids late last week for a minimum 15-20 percent stake in Haldiram.

Why it’s important: If carried through successfully, the Haldiram stake sale would be India’s biggest private equity trades to date. There have been disagreements on its valuation though that needs resolution.

#5. Tata-owned Air India places order to buy an additional 100 more Airbus aircraft

Air India, owned by Tata Sons, has placed a firm order for 100 more aircraft with Airbus, the Mint reported. The order comprises a mix of 90 narrow body A320 aircraft and 10 widebody A350 planes. The new deliveries are expected to start after 2027.

Why it’s important: With the latest order, Air India’s total order book stands at 570 aircraft, which overshadows market leader IndiGo’s previous order of 500 aircraft. The competition for market share in domestic aviation is expected to intensify in the next few years.

#6. Lumina Datamatics to acquire TNQ Tech in strategic digital publishing expansion

Lumina Datamatics, a unit of Datamatics Global Services, will acquire 100 percent of TNQ Tech, a Chennai-based digital publishing technology company, the Hindu Businessline reported. The acquisition is expected to be completed in two tranches, with 80 percent stake purchased by December and the rest by July. The first tranche will cost Rs 336 crore.

Why it’s important: TNQ Tech is known for innovative publishing technology, holding several patents and serving global publishers in scientific, technology and medical domains. It will become a step-down subsidiary of Datamatics Global Services after the acqusition.

#7. Path lab chain Metropolis Healthcare to acquire Core Diagnostics at Rs 246.8 crore valuation

Mumbai-headquartered Metropolis Healthcare’s board has approved the acquisition of National Capital Region-based specialised cancer diagnostics player Core Diagnostics, valuing it at Rs 246.8 crore, the Business Standard reported. Metropolis will acquire 100 percent stake in Core through a combination of cash and stock, financing 55 percent of the transaction in cash and 45 percent through an equity swap.

Why it’s important: Metropolis is India’s second-largest pathology laboratory chain. The acquisition of Core will add to its banquet of super-specialised laboratory tests.

#8. Court accepts Mahindra’s undertaking to not use 6E for electric cars till IndiGo lawsuit is settled

The Delhi high court has accepted an undertaking from Mahindra Electric Automobile agreeing not to use the 6E trademark for its upcoming electric car model during the pendency of a trademark infringement lawsuit filed by InterGlobe Aviation, the operator of IndiGo, the Mint reported.

Why it’s important: IndiGo has contended that 6E is its exclusive call sign and Mahindra’s use of it in its upcoming electric vehicle models was a trademark infringement. Mahindra intends to contest IndiGo’s claims in court.

#9. Prime Minister says production-linked incentives led to investments of over Rs 1.25 lakh crore

India’s production-linked incentive schemes have led to investments of more than Rs 1.25 lakh crore, Prime Minister Narendra Modi said, the Economic Times reported. the central government is in the process of expanding the business incentive program, he said.

Why it’s important: A large manufacturing base In India is important as the world needs an economy that continues to function strongly even during the biggest crises. It also syncs with the government’s Viksit Bharat (developed India) vision.

#10. Salary and wages rose faster than revenues for Indian companies in nine out of 15 years

Expenses on salaries and wages by firms in India have grown faster than net sales in nine of the last 15 years, the Business Standard reported based on an analysis of 667 companies from the BSE 500, BSE Mid Cap and BSE Small Cap indices, excluding their listed subsidiaries. The ratio of expenses on salaries and wages expenses to net sales improved during the post-pandemic boom in demand growth in 2021-22 and 2022-23, but employee expenses are again growing faster than revenues.

Why it’s important: The latest numbers indicate staff expenses are again eating into companies’ margins and profits. This is worrying as India’s chief economic advisor last week said a consumer demand uptick requires further hikes in staff pay.