Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The domestic market couldn't hang on to its early gains due to concerns about high prices and weak expectations for Q1FY25 earnings. As earnings season starts this week, investors will get a better look at different industries.

BUSINESS

Bengaluru to Dominate India’s Commercial Real Estate

What happened

Bengaluru, India’s IT powerhouse, is set to lead the country’s commercial real estate market with an estimated 330-340 million square feet of office space. To blow your mind this is roughly as big as Lakshwadeep! Sounds like the tech city is building another city in itself!

A recent report from the Confederation of Indian Industry and CBRE highlighted Bengaluru’s rapid expansion, with current office stock surpassing 223 million square feet as of June 2024, up from 100 million square feet in 2013.

Why it matters

Bengaluru is leading India's office space market, holding a big 25% of the country's total office stock. This dominance is driven by key sectors like technology, engineering, manufacturing, and BFSI (Banking, Financial Services, and Insurance). Each year, the city takes up an impressive 15-16 million square feet of office space on average, showing its strong growth and appeal to businesses.

What really boosts Bengaluru's market is its role in Global Capability Centers (GCCs). These centres support global operations for big companies, and from 2022 to mid-2024, Bengaluru captured an amazing 41% of this market.

Zoom out

Bengaluru’s commercial sector is booming, with expansion promises everywhere, especially in the outskirts. The city's retail scene is also on fire! Retail real estate has doubled to over 16 million square feet by June 2024 and is on track to hit 20-30 million square feet by 2030. Sure, there are some bumps in the road, like high land costs and joint venture land deals but we can expect the tech city to run it like a bug-free code!

BIG MONEY MOVES

Gold hits record high amid Federal rate-cut buzz

Gold just hit a dazzling new high, up 1.6% to $2,460.99 per ounce by lunchtime, with U.S. futures not far behind at $2,465.80. Why? The Fed's teasing a rate cut in September, making gold the new "it" bling.

With rates set to drop, the dollar's feeling the pinch, boosting gold's appeal. It's up a whopping 19% this year, leaving silver, platinum, and palladium in its glittery dust.

Zee raises $239 million  with unlisted FCCBs

Zee Entertainment Enterprises is jazzing up with $239 million in foreign currency convertible bonds (FCCBs), dishing them out exclusively to Resonance Opportunities Fund, St John’s Wood Fund Ltd, and Ebisu Global Opportunities Fund. These bonds come with a 5% annual interest rate and a cool twist – they can switch into Zee shares later on. No collateral needed, just Zee making moves post their Sony Pictures merger fiasco. 

Newswala heard Zee murmuring, "Why merge when you can bond over convertible perks?" 😏

BUSINESS

L&T Finance Surges with 29% Profit Jump to ₹686 Crore

What happened

L&T Finance is painting the town green this quarter, boasting a dazzling 29% increase in net profit! They've pocketed ₹686 crore in Q1 FY2024, up from ₹531 crore last year. Total income didn't miss the memo either, climbing to ₹3,785 crore from last year's ₹3,377 crore. It's safe to say their financials are as healthy as a horse!

The numbers game

The increase in net profit and income shows L&T Finance's strong performance and smart financial management. 

• Their Net Interest Income (NII) ballooned by 23%, hitting ₹2,020 crore compared to ₹1,644 crore last year. This uptick signals a thriving lending environment and clever interest rate juggling. 
  
  

• And guess what? They've even shaved off some expenses, dropping to ₹1,351 crore from ₹1,364 crore, proving they can cut costs without cutting corners.

Zoom out

With a diverse portfolio that includes farmer finance, rural business finance, two-wheeler finance, personal loans, home loans, and SME loans, they’re covering all bases. Their digital game is strong, which means they're not just playing in the present but are also geared up for future wins. 

BIG PICTURE

Apple's sales soar by 35% to ₹67,000 crore

Apple announced an astonishing 35% growth in India, with sales hitting nearly ₹67,000 crore ($8 billion) for 2023-24. 

• This leap from ₹49,332 crore in FY23 showed the tech giant’s steady climb in the Indian market, though it still nibbled just 2% of Apple's global revenue pie. 
  
  

• Profits in India also jumped 76.5%, reaching ₹2,230 crore.
  

The secret sauce? Apple’s trio of vendors: Tata Electronics, Pegatron, and Foxconn. These partners went above and beyond, producing iPhones worth ₹1,94,800 crore over three years, smashing the ₹133,493 crore target.

Swiggy, Zomato and BigBasket brew up alcohol delivery comeback

Get ready for a spirited revival as Swiggy, Zomato, and BigBasket plan to bring back their alcohol delivery services, focusing on beers, wines, and more. Originally launched during the lockdown to spice up their offerings, these services were a hit in quieter corners. 

After a successful run in Odisha and West Bengal, where online alcohol delivery saw a cheerful 20-30% increase in sales, insiders credit the trend to expats, changing tastes, and people choosing lighter drinks with their meals.

BUSINESS

Paytm's ₹360 Crore Oops Moment with SEBI

What happened

Paytm’s parent company, One 97 Communications, found itself in hot water with the Securities and Exchange Board of India (SEBI). SEBI issued a stern warning over unapproved transactions between Paytm and its defunct Paytm Payments Bank during the fiscal year 2021-22. 

We're talking about ₹324 crore and ₹36 crore worth of transactions that somehow slipped past the audit committee and shareholders. SEBI's letter, dated July 15, 2024, called out these compliance hiccups, leaving Paytm scrambling to tidy things up.

Why it matters

Imagine you're caught sneaking cookies before dinner—Paytm's situation is a bit like that but with a lot more zeroes involved. These unapproved transactions, considered material-related party transactions (RPTs), lacked the proper nod from the big bosses, putting Paytm's governance practices under a glaring spotlight. 

This not only dents their reputation but also highlights a pressing need for tighter checks and balances. Investors weren't thrilled either—Paytm's shares took a 2% dip, landing at ₹461. Plus, this news closely follows SoftBank’s bidding farewell to Paytm, having sold its remaining 1.4% stake in the fintech. 

Zoom out

This episode is a wake-up call not just for Paytm, but for all companies to keep their regulatory ducks in a row. Paytm now has the task of smoothing things over with SEBI, regaining investor trust, and making sure their corporate governance doesn’t miss a beat again.

And that’s not all! Despite SoftBank's retreat, the spotlight on Paytm remains strong. 

• Treeline, a prominent hedge fund from Singapore and Hong Kong, and UBS Principal Capital Asia have both expanded their stakes.
  
  

• Additionally, domestic mutual funds have increased their shareholding to 6.80%, while retail investors have upped their stake to 16.56%. 

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