Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Monday saw Indian benchmark indices plummeting due to negative sentiments prevailing in global markets. This downturn was reflected across various sectors, with heavyweight indices like Bank Nifty and Metal witnessing declines of 1.06% and 1.44% respectively, while Realty and Oil & Gas sectors also experienced losses exceeding 1%.

BUSINESS

Byju’s Cutting Costs Amid Investor Dispute

What Happened

Facing a looming liquidity crisis, educational technology giant Byju’s has made a strategic cost-cutting move by relinquishing all its offices throughout India, except its Bengaluru headquarters at IBC, Knowledge Park. This drastic decision aligns with the ongoing dispute between Byju’s and its investors, centered around the legitimacy of funds garnered from a recently concluded rights issue offering.

To further tighten its financial belt, Byju’s has opted for a remote work model, mandating that all employees, barring those at the headquarters and approximately 300 Byju's Tuition Centres nationwide, operate from home indefinitely.

This manoeuvre is coupled with a salary setback, as a portion of February salaries for 75% of the workforce has been withheld, with promises to disburse the outstanding amounts once access to the funds from the recent rights issue is granted.

Why It Matters

Byju’s, grappling with financial turbulence, has resorted to bold actions in the face of funding challenges and a decline in the demand for online learning services. The company's troubles have been exacerbated by the departure of investor board members, attributing their exit to differences with founder Raveendran.

In an attempt to navigate these turbulent waters, Byju’s has undertaken several corrective measures, including infusions of capital from early investor Ranjan Pai, the establishment of an advisory council featuring industry veterans like Mohandas Pai and Rajnish Kumar, and the elevation of Arjun Mohan to the position of CEO.

Additionally, the company is engaged in discussions to divest assets, including Great Learning and Epic.

Zoom Out

Byju’s, in its bid to weather the storm, has opted for a leaner operational model by surrendering its offices nationwide and embracing remote work. This strategic move, amidst an ongoing investor dispute, reflects the company's commitment to financial prudence and adaptability in a challenging market.

As Byju’s undertakes these bold measures, only time will reveal the efficacy of its strategy and its impact on the edtech giant's future trajectory.

BIG MONEY MOVES

RVNL secures metro order, diversifies for growth

Rail Vikas Nigam Limited (RVNL) has secured a new order from Madhya Pradesh Metro Rail Corp, worth ₹543 crore, for an elevated viaduct and metro stations, set to be completed in 3 years. This follows RVNL's ₹888.56 crore project with Himachal Pradesh State Electricity Board.

With a robust order book of ₹65,000 crore, RVNL is diversifying into electrification, transmission lines, and international projects. The stock has surged by an impressive 264%. RVNL's strategic moves underscore its role in India's rail infrastructure development.

Green Infra Wind Energy secures 440 MW wind-solar hybrid project

Green Infra Wind Energy Ltd (GIWEL), a subsidiary of Sembcorp Industries, has clinched a 440 MW wind-solar hybrid project from SJVN Ltd. The project, a crucial part of SJVN's 1.5 GW bid from September 2023, involves a build-own-operate model and is set to be operational within 24 months.

The power generated will be sold to SJVN under a 25-year Power Purchase Agreement. This venture strengthens Sembcorp's global renewables portfolio, now boasting a remarkable 14.3 GW capacity.

BUSINESS

Adani Group Unleashes ₹60,000 Crore Plan to Skyrocket Airport Expansion

What happened

Karan Adani, MD of Adani Ports and Special Economic Zone Ltd revealed a mammoth plan to invest ₹60,000 crore over the next 5-10 years in expanding the seven airports within the Adani Group's portfolio. Half of this hefty sum will be funnelled into enhancing terminal and runway capacity within the next five years, with the remaining capital allocated for city-side development over a decade.

Why it matters

The staggering investment underscores Adani's commitment to airport infrastructure, with a focus on cities like Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. 

• In addition to the airport expansion, the group plans to inject ₹18,000 crore into the development of Navi Mumbai airport.
  
  

• Mumbai airport was acquired from the GVK group in 2021, while the group secured operational rights for the other six airports between 2020-2021 for 50 years.

The strategy aligns with the government's vision to transform smaller cities into international aviation hubs, challenging the dominance of metros.

• Adani Group aims to more than double its airport capacity by 2040, currently standing at 110 million passengers annually (MPA). 
  
  

• Expansion plans include new terminals for Lucknow, Navi Mumbai, Guwahati, Ahmedabad, and Jaipur, targeting a combined capacity of about 300 MPA by 2040.

The group's innovative city-side development, utilizing acres of land, aims to boost ancillary revenues by hosting aviation-related businesses, hotels, and offices.

Zoom out

Adani's ambitious venture not only solidifies its position in the aviation sector but also aligns with the evolving landscape of international travel. As airports in smaller cities emerge as global hubs, the Adani Group positions itself to play a pivotal role in reshaping India's air travel map.

BIG PICTURE

Reddit aims for $748 million in IPO, targets $6.5 billion valuation

Reddit and its investors are aiming to raise a substantial $748 million in their upcoming initial public offering (IPO). The social media giant plans to sell 22 million shares at a price range of $31 to $34 each, eyeing a valuation of up to $6.5 billion.

Additionally, around 1.76 million shares are reserved in the IPO for purchase by users and moderators with accounts predating January 1, offering them an early trading opportunity. This move positions Reddit's IPO as one of the year's most significant financial events.

Legal battle brews as Nvidia faces copyright lawsuit 

Chip giant Nvidia is now under legal fire, slapped with a lawsuit by authors Brian Keene, Abdi Nazemian, and Stewart O'Nan. The authors have alleged that  Nvidia utilized their copyrighted books without permission to train its NeMo AI platform.

The authors, seeking unspecified damages, claim the works were part of a dataset powering NeMo's language models before being taken down in October for reported copyright infringement. This lawsuit adds Nvidia to the growing list of companies facing legal scrutiny over generative AI. 

BUSINESS

IndianOil's Fast Lane Entry into Formula One Fuel Production

What happened

Indian Oil Corporation (IOC) is gearing up to produce the fuel that fuels the frenzy – Formula One racing, aiming to produce high-octane petrol for F1 car racing within the next three months. IOC, already a heavyweight in the Indian fuel market, is poised to become the first Indian company and one of the select few globally to manufacture the fuel that propels the world's fastest cars.

The company aims to secure Formula 1 fuel certification within the same three-month timeframe, pitting itself against established players like Shell in the race to supply F1 teams.

Why it matters

Formula One fuel is not your everyday gas station fare; it's a high-octane blend regulated with precision by the Federation Internationale de l'Automobile (FIA). This move puts IOC in an elite league, rubbing shoulders with global giants.

• Fuel retailers typically sell two kinds of petrol and diesel: regular and premium, with a key distinction being the octane number.
  
  

• IOC had previously introduced specialized 'reference' petrol and diesel for automobile testing.
  
  

• F1 currently uses E10 fuel containing 10% renewable ethanol, with plans to increase non-fossil sources to 40% in 2024 and 100% sustainable fuel by 2026.

In addition to its F1 aspirations, IOC has been a game-changer in providing cost-effective 'reference' grade fuel for Indian automobile manufacturers, eliminating the need for importing such fuels. IOC's premium fuel offerings, including XP95 and XP100 petrol for luxury cars, and the environmentally friendly XtraGreen diesel, which now constitutes about 8% of all diesel sales for IOC.

Zoom out

As IOC gears up to produce F1-grade fuel, the company embarks on an exciting journey into the world of high-speed racing. With 'Storm - Ultimate Racing Fuel' already making waves in the motorcycle racing segment, IOC's entry into Formula One fuel production signifies a promising future in the racing fuels sector.

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