Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On March 12, Indian equity indices experienced volatility but ultimately closed higher. The Sensex ended up 0.22% at 73,667.96, while the Nifty gained 0.01% to reach 22,335.70, with profit booking observed across sectors except for Information Technology.

BUSINESS

Coal Giants Unleash Green Revolution

What happened

State-run coal mining companies, including Coal India and its subsidiaries, are gearing up for a green makeover. The recent official statement reveals plans to boost the installed renewable energy capacity to 9 GW by 2030. This shift aligns with the global trend as countries race towards ambitious net-zero plans worldwide.

As of now, Coal India and its subsidiaries boast 1.7 GW of solar and 51 MW of wind capacity, marking the beginning of their renewable journey. The Union Ministry of Coal is actively pushing for the deployment of rooftop solar and ground-mounted solar projects across mining facilities. Innovative plans are underway to transform reclaimed mining areas into solar parks, utilizing underutilized land for sustainable energy generation.

Why it matters

The diversification of coal companies into renewable energy is a strategic response to the closing window for coal usage and the escalating global commitment to net-zero goals. With India targeting net-zero carbon emissions by 2070, the plan to add 9 GW of renewable energy capacity aligns seamlessly with the government's broader objective of achieving 500 GW of non-fossil capacity by 2030.

This green transition is not only about environmental stewardship but also a smart utilization of resources. Installation of rooftop solar panels on government buildings and repurposing of de-coaled areas for solar projects demonstrate a commitment to tapping into previously utilized spaces for sustainable energy.

The roadmap to 9 GW of renewable energy also complements Coal India's diversification into thermal power generation, responding to the surging demand for power in the country. The recent cabinet approval for two thermal power projects with a total capital expenditure of ₹21,547 crore underscores the company's strategic shift.

Zoom out

As coal companies navigate the fast-changing landscape, this commitment to renewable energy signifies a profound dedication to environmental responsibility. The rollercoaster ride from coal to renewables is not just about numbers; it's a pledge towards a cleaner, greener future.

While the market may be unpredictable, the course towards sustainability is set, with coal giants leading the charge for a brighter and more eco-friendly tomorrow.

BIG MONEY MOVES

HIL Limited boosts PVC pipes segment with Topline acquisition 

HIL Limited, backed by CK Birla, acquired the Topline brand of PVC pipes and associated companies for ₹265 crores, expanding its presence in the construction industry. The move nearly doubles SKU offerings, providing access to patented technologies, strengthening government project involvement, and enhancing the company's standing in the Indian market.

The acquisition aligns with HIL's anticipation of growing demand in the construction sector, driven by increased government spending on infrastructure and housing projects.

SIDBI plans ₹5,000 crore capital boost for business expansion

Small Industries Development Bank of India (SIDBI) is gearing up to raise ₹5,000 crore through a rights issue in the upcoming fiscal year. The government, holding a substantial stake, is being approached for active participation in this financial initiative.

SIDBI aims to cap the financial year with a loan book hovering around ₹5.2 lakh crore, accounting for 17% of the total MSME loans in the country. 

BUSINESS

BAT's Multi-Billion Dollar Block Deal Sends Ripples Through Markets

What happened

British American Tobacco (BAT) is set to sell a 3.5% stake in ITC Ltd through a block deal worth approximately $2.1 billion. The sale, scheduled for Wednesday, will reduce BAT's current 29% shareholding to 25.5%. The block deal involves 43,68,51,457 shares of ITC, offered in a price range of Rs 384-400.25.

Why it matters

BAT's decision to divest comes as it aims to streamline its investments and reduce debt. The wholly-owned subsidiary, Tobacco Manufacturers (India) Ltd, will execute the stake sale via an accelerated book build process. The net proceeds will be used by BAT to initiate a sustainable buyback of its shares until December 2025, starting with £700 million in 2024. The move ensures BAT maintains strategic influence in ITC.

Describing ITC as a valued associate with long-term growth potential, BAT highlights its enduring relationship with ITC dating back to the early 1900s. ITC's significance in India's FMCG sector and its commitment to shareholder value make it a crucial player in BAT's portfolio.

Zoom out

The stake sale has influenced ITC's stock, which ended 1.26% lower ahead of the announcement. BAT's strategic move aims to release and reallocate capital while retaining veto rights and strategic influence in ITC. Despite market speculations, BAT emphasizes its confidence in ITC's management, anticipating further value creation.

Analysts suggest the stake sale could lead to valuation unlocking for ITC, providing shareholders with a new perspective on the company's potential. As BAT embarks on this financial manoeuvre, both companies stand at a juncture poised for significant shifts in their market dynamics.

BIG PICTURE

TikTok faces impending sale amidst US legislative storm

In the face of a fast-tracked bill aiming for TikTok's divestiture or a US ban, the popular app, boasting 170 million US users, is racing against time to avoid a shutdown. President Biden signalling the approval, leaves TikTok exploring options, including a sale to save its future.

The platform's attempt to rally users against the bill has backfired, while potential buyers, notably former Activision Blizzard CEO Bobby Kotick, have expressed interest. TikTok's executives are grappling with the challenge of potentially separating the US version from the global community.

Utkarsh Bank faces ₹52 crore dilemma with the tax department

Utkarsh Small Finance Bank is in the spotlight as the Income Tax Department refuses its plea, demanding an extra ₹52 crore for the financial year 2022-23. The bank, previously benefiting from concessional tax rates since 2020-21, had claimed a refund of ₹2.3 crore.

However, the tax department rejected the claim, imposing the standard tax rate and sparking a legal battle. The bank has highlighted its consistent adherence to concessional tax rates in previous years, emphasizing its commitment to rectifying the situation.

BUSINESS

Maruti's First In-Plant Railway Signals Sustainable Shift

What happened

Prime Minister Narendra Modi virtually inaugurated India's first in-plant railway siding project for automobiles at Maruti Suzuki's plant in Hansalpur, Gujarat. The project is part of the PM Gati Shakti mission, with an investment of ₹ 976 crore. Developed in collaboration with the Gujarat government, Indian Railways, and Maruti Suzuki India Ltd (MSIL), the project aims to enhance logistics efficiency and reduce carbon emissions.

Why it matters

The in-plant railway siding is a pioneering initiative, reflecting the excellence of the Gati Shakti program.

• It is designed to dispatch 3,00,000 cars annually, contributing to a substantial reduction in carbon footprint and fuel consumption.
  
  

• The railway line within the Bahucharaji plant, developed at a cost of ₹ 105 crore by Maruti Suzuki, is set to replace 50,000 truck trips annually. This move aligns with the global shift towards sustainable practices and carbon neutrality.
  
  

• The project is anticipated to save 35 million litres of fuel per annum, cutting down 1,650 tonnes of carbon emissions.

Maruti Suzuki plans to increase the dispatch of finished cars by railway from 26% to 40% annually at full capacity, streamlining logistics and benefiting the environment. The railway sliding facility's capacity to dispatch cars, along with its potential for expansion, positions Maruti Suzuki as a leader in embracing eco-friendly and efficient transportation solutions.

Zoom out

Maruti Suzuki's in-plant railway siding marks a significant milestone in India's automotive industry. The innovative approach not only enhances the company's logistics operations but also sets a precedent for sustainable practices in the manufacturing sector.

As the country moves towards increased rail-based transportation, Maruti Suzuki's commitment to reducing its carbon footprint and reliance on traditional logistics channels paves the way for a greener and more efficient future.

MIRCH MASALA

🏹 Arun Govil reacts to Ranbir Kapoor essaying Lord Ram’s role
👩‍🎤 Madonna sparks outrage for shaming wheelchair-bound fan at concert for not standing up
🏏 Pant cleared by BCCI to play IPL 2024 as wicket-keeper batter
☄️ Everest-sized comet set to illuminate night sky- Here’s how to watch it
😄 10 Korean habits for eternal youth and boundless energy