Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The last trading day of fiscal year 2024 concluded with major indices recording a notable increase of around 0.90%. As we step into the new fiscal year, let's embrace the opportunities and wish everyone a happy and prosperous new year ahead!

BUSINESS

India's Business Boom - Over 1.68 Lakh Companies Formed in FY24

What happened

India witnessed a surge in business registrations during the current fiscal year, with more than 1,68,700 companies formed, marking a significant increase compared to the previous fiscal year's figure of over 1,59,500 companies. Maharashtra led the way with 18% of new registrations in February, followed by Uttar Pradesh (11%) and Delhi (9%).

Business services accounted for the majority of the new company registrations in February, comprising over 70% of the 17,260 new registrations during the month. Notable state-owned companies like ONGC Green Ltd., PFC Infra Finance IFSC Ltd., and IRCTC Payments Ltd. were among those registered in February.

Why it matters

The increase in business registrations reflects a positive trend in India's entrepreneurial landscape , showcasing a growing interest in starting new ventures across various sectors. The rise in small business registrations, indicated by an average paid-up capital of ₹11.72 lakh, highlights the role of small businesses as a significant contributor to economic growth and job creation.

Additionally, the data highlights the diversity of sectors attracting new businesses, ranging from community services to manufacturing and agriculture. The surge in director registrations also indicates a vibrant ecosystem of professionals contributing to corporate governance and leadership roles.

Zoom out

India's robust business registration numbers signify a dynamic and resilient economy, with entrepreneurs and professionals actively engaging in business activities and contributing to the country's economic development. The government's initiatives to streamline registration processes and support small businesses are reflected in these numbers, emphasising the importance of entrepreneurship in driving growth and innovation.

BIG MONEY MOVES

Adani Family infuses ₹6,661 crore into Ambuja Cements, boosts stake to 66.7%

The Adani family, promoters of Ambuja Cements, has injected ₹6,661 crore into the building materials company, leading to a nearly 2% surge in the stock price. This infusion has resulted in the Adani family increasing their stake in Ambuja Cements by 3.6% to reach 66.7%.

This recent investment follows a previous infusion of ₹5,000 crore through warrants by the family in October 2022. Overall, the promoters have injected ₹11,661 crore into Ambuja Cements since taking control of the company from Holcim.

Air India trims FY24 losses to ₹7,000 crore

Tata Group-owned Air India narrowed its losses for the fiscal year 2024 to approximately ₹7,000 crore, a notable improvement from the ₹11,381 crore loss recorded in FY23. The airline's financial progress reflects a blend of heightened passenger traffic and strategic cost-saving measures, including automation initiatives.

During the fiscal year 2023, which marked Air India's first full year under Tata Group ownership following the acquisition in January 2022, the airline experienced a significant uptick in passenger volumes, leading to enhanced revenues.

BUSINESS

PhonePe Partners with Neopay for Seamless International UPI Payments

What happened

India's leading digital payment platform, PhonePe, has forged a strategic alliance with UAE's Neopay , a subsidiary of Mashreq Bank, to revolutionize international UPI payments. The partnership enables Indian travellers visiting the UAE to leverage the familiarity and convenience of UPI payments through Neopay terminals scattered strategically across the region.

This development not only simplifies payment processes but also eliminates the need for carrying multiple cards, making travel experiences smoother and more enjoyable.

Why it matters

This collaboration, facilitated by NPCI International Payments Limited (NIPL), brings convenience and ease to Indian travellers visiting the UAE.

• The account debit will be in Indian rupees, displaying the applicable currency exchange rate.
  
  

• Additionally, the PhonePe app will allow NRIs in the UAE with mobile numbers the convenience of linking their existing NRE and NRO accounts. 
  
  

• The fintech company handles more than 230 million transactions daily, amounting to an annual total payment value (TPV) exceeding $1.5 trillion . 

The collaboration is not just about convenience; it also signifies a deeper synergy between two prominent players in the digital payments landscape. By bridging the gap between Indian travellers and the UAE's retail, dining, and leisure sectors, PhonePe and Neopay are paving the way for stronger financial relations between India and the UAE.

Zoom out

The integration of PhonePe with Neopay reflects the continuous evolution and expansion of digital payment solutions. With over 520 million registered users and a robust merchant network, PhonePe's foray into international UPI payments opens up new avenues for hassle-free transactions and reinforces its position as a frontrunner in the fintech space.

BIG PICTURE

✈️  Akasa Air launches international operations, connecting India to Qatar

Akasa Air, a prominent domestic carrier, has initiated its international operations , marking a significant milestone in its expansion strategy. The airline's maiden overseas flight took off from Mumbai, bound for Doha, Qatar. This development follows Akasa Air's acquisition of traffic rights for three additional international destinations, namely Kuwait, Jeddah, and Riyadh, as announced in a statement on Thursday.

With a focus on providing seamless connectivity, Akasa Air emphasizes its conveniently timed flight schedules, offering travellers from various domestic cities such as Ahmedabad, Goa, Delhi, Varanasi, Lucknow, and Bengaluru.

🔻  Swiggy reports $200 million loss in nine months ahead of IPO

Indian food delivery giant Swiggy has disclosed a significant financial setback, revealing a $200 million loss for the nine-month period ending in December 2023. This disclosure comes as Swiggy prepares for its highly anticipated Initial Public Offering (IPO) in the stock market, backed by SoftBank.

The company's financial report for the full fiscal year 2022-23 unveils a substantial loss of $500 million. Swiggy's upcoming IPO launch coincides with a booming Indian stock market, amid cautious sentiments among investors regarding IPOs from Indian startups.

BUSINESS

NARCL Acquires ₹24,000 Crore Debt in a Week Before FY24 Closure

What happened

The National Asset Reconstruction Co (NARCL), dubbed the " bad bank ," closed nine transactions totalling over ₹24,000 crores in bank debt during the final work week of FY24. This flurry of activity marked a significant acceleration in deal-making for NARCL, which had experienced a quieter period in the second half of the fiscal year. 

The transactions included the transfer of road assets such as Metenere and Simplex Infrastructures, contributing to NARCL's total debt holdings nearly doubling to ₹48,652 crore , up from the previously acquired ₹25,000 crore. Despite this rapid progress, NARCL still falls short of its ₹82,845-crore target.

Why it matters

In the remarkable feat, NARCL's transactions during FY24 surpassed the equivalent of two years' worth of business within a mere week. This accelerated pace speaks of the urgency and efficiency with which NARCL is addressing the challenge of distressed assets in the banking sector, especially after facing operational challenges since its inception in January 2022.

The strategic focus on acquiring distressed road assets contributes significantly to diversifying its portfolio. By broadening its asset base while strategically targeting high-impact sectors like road infrastructure, NARCL is not only stabilizing the banking sector but also easing substantial debt burdens.

Zoom out

NARCL's recent acquisitions, particularly the substantial debt takeover in a single week, reflect a pivotal moment in India's banking sector. The bad bank's role in purchasing distressed loans at a 15% cash rate , with government-backed security receipts covering the remaining 85%, demonstrates a concerted effort to support banks and expedite the resolution of NPAs. 

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