Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets opened the week weak, with Nifty falling nearly 1.5% to close at 25,810.85. Heavy losses were seen in the auto, realty, and banking sectors, while the metal index gained over 1%, reaching a new high. The previous three-week upward trend led to position trimming amid mixed global cues.

TOP STORIES

IPO Frenzy: ₹60,000 Crore in the Pipeline as Big Names Go Public!

What Happened?

The IPO market is gearing up for a big two months, with more than half a dozen companies lining up to raise around ₹60,000 crore by November. 

• Leading the charge are big names like Hyundai Motor India, Swiggy, and NTPC Green Energy, with several other firms hopping on the IPO bandwagon.

• Hyundai alone aims to raise a massive ₹25,000 crore—setting its sights on surpassing LIC’s record IPO from last year. 

• Swiggy is set to dish out a juicy ₹10,414 crore IPO, and NTPC Green Energy is looking for a cool ₹10,000 crore. 

It seems like everyone is in a race to go public before the year ends!

Why It Matters

Now, you might wonder, why is the IPO market buzzing like a crowded food court? Several factors are at play here. For one, companies are capitalising on favourable macroeconomic conditions and strong investor interest, driven by robust mutual fund inflows. They’re looking to raise funds for everything from expansion plans to debt repayments—and let’s not forget providing a tidy exit for early shareholders.

With over 30 IPOs expected by December, investors have plenty of fresh options to sink their teeth into. Not to mention, Hyundai’s record-breaking ₹25,000 crore IPO is something to keep an eye on. Who wouldn’t want to say they owned a slice of that?

What lies ahead

In short, the IPO market is on fire, and the momentum isn’t slowing down anytime soon. With more than ₹1 lakh crore expected to be raised by companies awaiting approval, 2024 is shaping up to be a blockbuster year for IPOs. 

But it’s not all smooth sailing—market corrections and regulatory roadblocks could throw a wrench into the excitement. So, while the IPO frenzy is fun to watch (and potentially lucrative), it’s wise to keep an eye on the bigger picture and make informed choices. After all, you don’t want to jump on the wrong bandwagon just because it’s shiny!

PAISON KA KHEL

BASIC Home Loan bags $10.6 million for growth spurt

Fintech startup BASIC Home Loan has just secured $10.6 million in its Series B funding round, led by Bertelsmann India Investments (BII) and CE-Ventures. Existing investor Ashish Kacholia joined the fun by increasing his stake, while other backers like Gruhas and 9Unicorns also pitched in.

Since its launch in 2020, BASIC has helped nearly 250,000 families snag homes and created jobs for 15,000 people in tier-II and III cities. With a whopping $12 billion in loan applications and over $1.1 billion disbursed, it’s clear this startup is making big moves.

Fossil fuels' farewell tour

The Reserve Bank of India (RBI) predicts that fossil fuels will lose their electricity dominance in India by 2030, with renewable energy globally set to generate over 50% of power by the end of the decade. The RBI highlighted the need for triple the current renewable investments, urging $3 for green energy for every $1 spent on fossil fuels. Achieving net-zero emissions by 2050 could cost a hefty $215 trillion. But hey, who said saving the planet was cheap? 

TOP STORIES

Reliance Infra Wins Big in ₹780 Crore Arbitration Battle with DVC

What happened?

Reliance Infrastructure has come out on top in a decade-long legal tussle with Damodar Valley Corporation (DVC). The Calcutta High Court upheld a ₹780 crore arbitration award in favour of Reliance, linked to the delayed Raghunathpur Thermal Power Project in West Bengal. 

The project, a 1,200 MW thermal power plant valued at ₹3,750 crore, hit numerous roadblocks, leading to a dispute between the two parties. After an arbitration tribunal in 2019 ruled in Reliance’s favour, DVC challenged the ruling. However, the court recently dismissed DVC’s appeal, confirming the award, though with minor adjustments to the interest and bank guarantee amounts.

Why it matters?

This ruling is a significant financial win for Reliance Infrastructure, injecting ₹780 crore into the company’s coffers, along with the release of a ₹600 crore bank guarantee. For the Anil Ambani-led company, which has seen its share of ups and downs, this victory provides a much-needed financial boost and a reputational lift. 

For DVC, it’s a tough defeat in a project that’s already been delayed and riddled with complications. This case also highlights the challenges large-scale infrastructure projects in India face, where delays and legal battles can quickly escalate into massive financial disputes.

Zoom out

While Reliance Infra celebrates its arbitration win, DVC walks away from this legal saga licking its wounds. With the court largely backing Reliance, the company is now reviewing its next steps, potentially eyeing enforcement of the award. DVC, on the other hand, will likely be recalculating its strategies after this financial setback. For now, Reliance Infrastructure has scored a major victory in what has been a long and arduous journey for the West Bengal power project.

GLOBAL NAZARA

UK bids adieu to coal

The UK's last coal-fired power station, Ratcliffe-on-Soar, will shut down on Monday, officially marking the end of Britain's 140-year love affair with coal. This makes the UK the first G7 nation to bid farewell to coal for good, aiming for a decarbonized electricity system by 2030 and carbon neutrality by 2050. While 350 workers will face a two-year decommissioning phase, the site will transform into a "carbon-free technology and energy hub." As Energy Minister Michael Shanks puts it, "The era of coal is over, but the new age of good energy jobs is just beginning!" 

Royal Enfield’s reflector shining bright, just not enough!

Eicher Motors is recalling Royal Enfield motorcycles built between November 2022 and March 2023, as their reflectors are failing to meet performance standards. During routine tests, it was discovered that these reflectors don’t quite sparkle as they should. The good news? Eicher is offering a free fix, starting with South Korea, the US, and Canada, before rolling out worldwide. With a quick 15-minute replacement, your bike will be back to shining bright. Meanwhile, Eicher’s shares climbed 1.31%, closing at ₹5,059.60. Looks like a little reflector issue can't dim their market glow!

TOP STORIES

India’s Gold Imports Hit $10.1 Billion

What Happened

In a shining moment for India’s economy, gold imports surged to a whopping $10.1 billion in August 2024, more than tripling from the previous month and doubling from a year earlier. 

• This dramatic increase is largely credited to a significant reduction in the gold import duty from 15% to just 6%.

• The total volume of imports hit around 140 tonnes, showing that nothing can dim the sparkle of the yellow metal in Indian culture.

Why It Matters

The surge in gold imports is crucial not just for the jewellers but also for the economy. Gold traditionally serves as a safe haven during economic uncertainty, and a rise in demand suggests growing consumer confidence. The duty cut has acted like a magic wand, removing barriers to purchase and allowing more families to invest in gold—a long-standing cultural symbol in India.

Glittering on fronts other than gold too

The gold rush in India is a clear indicator of the nation’s resilience and enduring love for the precious metal. With the festive season just around the corner, the boost in demand could lead to even more robust sales figures in the coming months. 

Meanwhile, on the social responsibility front, Malabar Group launched a National Scholarship Program for girl children, earmarking ₹16 crore from its CSR fund. This initiative aims to benefit around 21,000 girls, emphasising the importance of education as a transformative tool. 

MIRCH MASALA

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