Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian benchmark indices had a volatile day, erasing all their gains to close in the negative zone. The Sensex ended down 0.25% at 74,482.78, while the Nifty closed 0.17% lower at 22,604.80.

BUSINESS

Mindspace REIT Breaks Records with 2 Million Sq Ft Leasing in Q4

What happened

Mindspace Business Parks REIT(A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate) made headlines in the real estate sector by achieving its highest-ever quarterly leasing, surpassing the 2 million sq ft mark in the fourth quarter.

This achievement marked a significant milestone for the REIT since its listing in August 2020. The REIT's net operating income also witnessed a substantial growth of 9.3% from the previous year during this quarter, amounting to ₹ 477 crore. For the entire fiscal year 2023-24, the net operating income increased by 11.9% to reach ₹1,896 crore.

Why it matters

The remarkable performance of Mindspace REIT underscores its strong position in the market and the confidence of investors in its strategies. The management highlighted the record-breaking quarter, emphasizing that the committed occupancy now stands at an impressive 90.6%. 

The REIT's ongoing expansion projects totalling 4.4 million sq ft, along with future developments and potential leasing of additional space, position it for significant net operating income growth in the coming quarters. Furthermore, securing leasing contracts, such as the 1.2 million sq ft in Navi Mumbai's Airoli locality, including a substantial portion for a banking, financial services & insurance (BFSI) company.

Zoom out

Mindspace has successfully raised ₹340 crore at an attractive effective annual rate of 8.18%, with an average cost of borrowing at the end of the fiscal year 2023-24 pegged at 8.06%. Notably, its loan-to-value ratio stood at a prudent 21.1%. Furthermore, the REIT announced a distribution of ₹ 283 crore, equivalent to ₹ 4.77 per unit, for the quarter ending in March. This brings its cumulative distribution for the entire financial year to an impressive ₹ 1,136 crore.

BIG MONEY MOVES

Coca-Cola rakes in $293 million from bottling operations sale

The Coca-Cola Company recently announced a net gain of $293 million from selling certain bottling operations to local players in India. Despite a slower start in India during the first quarter of the year, Coca-Cola remains optimistic about the country's long-term prospects, citing strong brand presence and growth potential.

The company's net revenues for the March quarter reached $11.3 billion, with organic revenues soaring by 11%, showcasing robust performance amidst market challenges.

IOC invests ₹5,215 crore to generate 1GW of renewable energy

Indian Oil Corp (IOC) is set to embark on a significant journey in renewable energy, with plans to invest ₹5,215 crore to develop 1 gigawatt (GW) of capacity in India. This investment, approved by IOC's board, will focus on standalone solar, wind, or hybrid projects. With an equity infusion of ₹ 1,304 crore, IOC aims to establish a dedicated subsidiary for its renewable energy ventures.

This strategic shift aligns with IOC's broader diversification efforts into solar, wind, hydrogen, and electric vehicle infrastructure, reflecting a forward-looking approach to sustainability and clean energy solutions.

BUSINESS

Sterlite Power's Triumph in Q4: Secures ₹ 2,500 Crore Worth of Projects

What happened

Sterlite Power, a prominent player in power transmission infrastructure, clinched new orders worth ₹2,500 crore during the last quarter, elevating its cumulative order wins for FY24 to an impressive ₹7,000 crore. This surge represents a notable 35% increase compared to the previous fiscal year.

The projects secured by Sterlite Power in Q4 encompass a diverse range of initiatives, including the supply of conductors for green energy transmission projects in Rajasthan and the acquisition of export orders for Optical Ground Wire (OPGW) in the African and CIS markets. Additionally, the company secured multiple orders for Extra High Voltage (EHV) & High Voltage (HV) cables.

Why it matters

The power giant has not only secured significant orders for Extra High Voltage (EHV) & High Voltage (HV) cables but has also undertaken a crucial turnkey project with Odisha state transmission utility. This project involves enhancing the capacity of the existing 132 kV Pratapsasan-Kesura-Ransinghpur transmission line using high-performance conductors (HPC).

With a robust portfolio comprising 33 completed, sold, and ongoing power transmission projects, covering approximately 16,529 circuit kilometres across India and Brazil, Sterlite Power stands out as a leading player in the private sector for power transmission infrastructure development and a global provider of products and services.

Zoom out

Sterlite's expansion efforts and innovative approaches in the power transmission sector are crucial for supporting India's ambitious renewable energy targets and the transition towards a net-zero future. 

In a recent agreement, a new platform for power transmission project development in India was established by Sterlite and Singapore's sovereign wealth fund GIC. This strategic partnership targets India's $13 billion transmission sector, focusing on the development of green corridors for transmitting renewable energy (RE) power.

BIG PICTURE

💉 AstraZeneca acknowledges rare blood clot risk from COVID Jabs

AstraZeneca, facing a class action lawsuit in the UK, has acknowledged the rare risk of blood clots associated with its COVID vaccines. Despite over 50 reported cases in the UK linked to Serum Institute of India-manufactured jabs, AstraZeneca maintains the vaccine's overall safety profile based on clinical and real-world data. Regulatory authorities globally have emphasized the vaccine's benefits outweigh rare potential side effects.

The ongoing lawsuit seeks damages of up to £100 million, highlighting concerns over thrombosis with thrombocytopenia syndrome (TTS).

🪴 IFC set to triple investments in India, focus on climate finance

The International Finance Corporation (IFC) is gearing up to boost its investment in India, targeting over $4 billion this financial year, with a significant focus on climate finance. Climate finance encompasses financial resources, investments, and funding mechanisms aimed at tackling climate change and its effects. This aligns well with India's ambitious renewable energy targets and plans for achieving a net-zero economy by 2070.

IFC's investments will specifically target sectors such as batteries and electric vehicles (EVs), reflecting the global shift towards sustainable energy solutions.

BUSINESS

Tata Sons Snags Temasek's Stake in Tata Play for ₹ 835 Crore

What happened

Tata Sons has made a bold move in the media and entertainment sector by acquiring a 10% stake in Tata Play (formerly Tata Sky) from Temasek, a Singaporean government-owned investment firm. This transaction, valued at around ₹835 crore, has boosted Tata Sons' shareholding in Tata Play to 70%.

The direct-to-home (DTH) company, known for its massive subscriber base of 21 million, promptly informed the Ministry of Information and Broadcasting about this change in ownership, as per regulatory requirements.

Why it matters

The Singapore-based firm, Temasek has reduced its holdings or exited from several Indian companies this year.

• The firm sold a 1.1% stake in the hospital chain Medanta for ₹395 crore, still holding a stake of approximately 17% in Medanta. 
  
  

• Additionally, the investment firm completely divested its 5.42% stake in PB Fintech, the operator of the online insurance platform Policybazaar.

However, this deal holds significance for Tata Sons as it strengthens its position in the consumer-facing media industry through Tata Play, the largest DTH firm in India. With Temasek's exit, Tata Play now stands as a 70:30 joint venture between Tata Sons and Walt Disney, with Disney also eyeing an exit from the TV distribution segment.

This strategic move aligns with Disney's broader strategy of divesting non-core assets, following its merger with Reliance Industries' Viacom18 to create a formidable media entity worth $8.5 billion.

Zoom out

Tata Group's ownership of Tata Play holds immense significance as it stands as its sole consumer-facing media entity. This move reflects broader industry shifts, including Disney's review of its stake in Tata Play, signalling ongoing transformations in India's media landscape.

As Tata Play navigates market changes, its partnership with Tata Sons and potential ownership adjustments underscore the dynamic nature and competition within the country's media and entertainment sector, shaping its future trajectory.

MIRCH MASALA

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