Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Despite a lacklustre trading day, the markets ended slightly in positive territory, benefiting from strong global cues. The Nifty, after an initial rise, traded within a narrow range and ultimately settled at 18,601.50 levels. Sector-wise, IT and realty saw notable gains, bringing activity to the trading floor.

BUSINESS

Ontario Teachers and Chrys Capital Forge Partnership in Bid for Healthium Medtech

What happened

Ontario Teachers Pension Plan (OTPP) and Chrys Capital have teamed up for a joint venture aimed at acquiring Healthium Medtech, a prominent global manufacturer of surgical sutures. Healthium Medtech is India's largest independent medical devices company in the surgical consumables market.

The buzz around this deal indicates that it could potentially reach a whopping ₹6,000 crore , marking a substantial three-fold increase from the company's acquisition price in 2018.

Why it matters

The partnership between OTPP and Chrys Capital brings a dynamic twist into the race for Healthium Medtech. This move comes as Apax Partners, a UK-based private equity fund, puts the company up for grabs. The financial heavyweight lineup doesn't stop there, with global players like Blackstone, Bain Capital, and the Carlyle Group also throwing their hats into the ring. The stage is set for a formal bidding round in the coming weeks.

Healthium, previously known as Sutures India Pvt Ltd, is a significant player in the market, manufacturing and selling a range of medical products, including absorbable and non-absorbable sutures, mesh, tapes, skin staplers, and more. With operations spanning over 90 countries, the company is a force to be reckoned with.

Zoom out

The financials tell an impressive story. In H1 FY24, Healthium reported a revenue of ₹393.4 crore, with a profit of ₹68.9 crore. Looking at FY23, the numbers climbed higher, with revenue of ₹728.5 crore and a profit of ₹112.9 crore (excluding a one-time gain from a subsidiary sale).

The potential valuation of Healthium in the ₹5,000 to ₹6,000 crore range reflects the attractiveness of India's surgical sutures market, set to grow at a CAGR of over 13%.

BIG MONEY MOVES

TruAlt Bioenergy plans ₹600 crore investment for massive capacity expansion

Biofuel giant TruAlt Bioenergy is set to boost its daily capacity by 2.7 lakh litres, investing approximately ₹600 crores in new plants by the next fiscal year. TruAlt Bioenergy stands as India's largest ethanol producer, complemented by a substantial compressed biogas capacity of 10 tonnes per day.

Anticipating a robust 30% revenue growth this fiscal year, the Bengaluru-based company specializes in various biofuels, compressed biogas, sustainable aviation fuel, organic manure, and green hydrogen. 

Diamondback Energy set to acquire Endeavor in a $25 billion deal

Diamondback Energy, engaged in hydrocarbon exploration is on the verge of sealing a deal to acquire Endeavor Energy Resources for approximately $25 billion , outpacing ConocoPhillips in the race for one of America's coveted private oil producers. The announcement positions Diamondback as a major player in the expansive Permian Basin, the largest US oilfield.

BUSINESS

Tower Semiconductor Eyes $8 Billion Chip Plant in India

What happened

In a bid to boost semiconductor manufacturing in India, Israel's Tower Semiconductor is making waves with an ambitious proposal to construct an $8 billion chip-making facility in the country. The move aligns with Prime Minister Narendra Modi's keen focus on the semiconductor sector, evident in the $10 billion scheme rolled out by his government in December 2021.

Why it matters

Tower is an Israel-based powerhouse in analog semiconductor solutions, serving over 300 customers. The semiconductor giant stands at the seventh position in global foundry revenue, boasting $356 million in TrendForce Q1-Q3 data, with an anticipated annual revenue exceeding $1 billion.

• Tower Semiconductor is seeking government incentives for its plan, with a specific aim to produce 65 nanometre and 40 nanometre chips within India's borders.

• The proposal gains significance as Tower Semiconductor is a prominent member of the International Semiconductor Consortium (ISMC). 

• In 2024, the projected revenue for the Indian Semiconductors market is a staggering $8.32 billion.

• The industry is expected to witness an annual growth rate (CAGR 2024-2027) of 8.68%.

Tower Semiconductor has a track record of backing India's semiconductor goals, starting in 2013-14 with its participation in a consortium led by Jaypee Group. Their ongoing interest in collaboration reaffirms their commitment to advancing technology in India's semiconductor sector.

Zoom out

As India gears up for a semiconductor revolution, Tower Semiconductor's proposed $8 billion chip plant adds a substantial boost to the nation's aspirations. The ball is now in the government's court to incentivize and propel TowerSemiconductor's vision, marking a significant step towards self-reliance in this crucial technology domain.

BIG PICTURE

🚁  Maruti Suzuki Plans to Revolutionize Transportation with Electric Air Copters

Indian car giant Maruti, in collaboration with its Japanese parent Suzuki, is venturing into the skies with plans to develop electric air copters. Larger than drones but smaller than traditional helicopters, these air taxis aim to transport at least three passengers, paving the way for new mobility solutions. Named SkyDrive, these electric aircopters are expected to debut at the 2025 Osaka Expo , marking a significant step towards a futuristic transportation landscape.

🛢️  Saudi Aramco makes strategic pause amid green transition

Saudi Arabia's state-controlled oil giant, Aramco, has halted its capacity expansion plans due to the green transition, according to Saudi Energy Minister Abdulaziz bin Salman. The decision reflects the company's shift from being solely an oil company to becoming an energy company with investments in oil, gas, petrochemicals, and renewables. Salman emphasized the future of energy security lies in renewables, not oil, attributing the move to a continuous review of market conditions amid the evolving global energy landscape .

BUSINESS

EY Engaged in Forensic Audit of Bandhan Bank's ₹23,000 Crore Loans

What happened

In a financial scrutiny move, EY, a prominent accounting firm, is undertaking a forensic audit of a significant portion of Bandhan Bank's loan portfolio, valued at over ₹23,000 crore, for which the bank availed government guarantees. The audit, initiated by the National Credit Guarantee Trustee Company (NCGTC), aims to ensure the proper utilization of two distinct government guarantees.

Bandhan Bank's executive director, Ratan Kesh, disclosed that the bank had utilized Credit Guarantee Fund for Micro Units (CGFMU) cover and Emergency Credit Line Guarantee Scheme (ECLGS) support, with a substantial portion already repaid. The audit, addressing concerns about fund usage, sheds light on the banking sector's stringent regulatory oversight.

Why it matters 

The forensic audit gains significance in scrutinizing how Bandhan Bank utilized government-backed guarantees, reflecting regulators' and investors' vigilance. With NCGTC's focus on potential discrepancies, the audit aims to ascertain if loans were handled ethically and detect any misuse of funds. 

• Out of the total loans amounting to ₹22,750 crore (₹20,800 crore plus ₹1,950 crore), customers repaid nearly ₹19,000 crore.

• A remaining stress book of around ₹3,600 crore as of December.

The bank's revelation of a stress book and a provision of over 89% indicates the importance of a detailed examination of loan portfolios for compliance and transparency. 

Zoom out

The EY-led audit underscores the evolving landscape of financial scrutiny, emphasizing accountability and regulatory adherence in the banking sector. As Bandhan Bank navigates this audit, the outcome will not only impact its standing but also set a precedent for how financial institutions are held accountable for utilizing government-backed schemes. 

MIRCH MASALA

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