Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian equity indices ended strong on September 19, with the Nifty at 25,450, led by bank, FMCG, and realty stocks. The US Fed's aggressive rate cut sparked a rally, but profit-taking in telecom, metals, and oil & gas trimmed gains.

TOP STORIES

Bajaj Housing Finance Sees Competition Fading

What happened?

Bajaj Housing Finance Ltd., now India’s most valuable mortgage lender, made a powerful stock market debut with shares surging 10% to ₹181.50 on Tuesday, an impressive 159% gain from its IPO price of ₹70. 

Bajaj Housing Finance has outpaced the industry’s growth rate of 12%-13%, expanding faster and eyeing new markets in key states across India.

Backstory

The company’s chairman, Sanjiv Bajaj, noted that larger banks are shifting focus from retail loans to corporate credit, where demand is increasing. This shift is expected to reduce competition in the housing loan market. The company also sees home prices stabilising outside major metros like Delhi and Mumbai.

As banks shift back to corporate lending, Bajaj Housing Finance could breathe a sigh of relief in the highly competitive mortgage space. This may reduce pressure on margins and offer the company more room to expand. 

Zoom out

The prices in non-metro regions have shown steady growth, while the total inventory of vacant homes has dropped over the past two years, signaling the start of another construction cycle. This offers long-term lending opportunities for the sector. Bajaj Housing Finance’s strategic focus on seven to eight key markets positions it well to capture growing demand, even as larger banks divert resources elsewhere.

PAISON KA KHEL

Godrej Capital's big plans for affordable housing

Godrej Capital is jumping into the affordable housing loan, with plans to boost its assets under management (AUM) to ₹17,000 crore by the end of 2024. Currently managing ₹13,000 crore, the company has its sights set on an ambitious ₹50,000 crore by 2028.

But they’re not stopping at homes! They're also helping small dairy farmers grow their businesses with loans through a smart SME initiative. And with profits shooting up—last year’s ₹55 crore is expected to triple to ₹175 crore this year.

NTPC green energy targets ₹10,000 crore IPO

NTPC Green Energy is joining the Indian IPO-frenzy for a ₹10,000 crore initial public offering (IPO). This renewable energy arm of NTPC plans to raise the money through fresh equity shares, with no offer-for-sale in sight. They aim to use ₹7,500 crore to pay off some loans and the rest for general corporate needs.

As of August 2024, NTPC Green Energy has a solid capacity of 3,171 MW and dreams of hitting 60 GW by 2032. With the Indian IPO market buzzing—about 60 companies have launched this year—NTPC is ready to shine brighter than ever. 

TOP STORIES

Maruti's Super Ambitious Charging Initiative

What happened?

Maruti Suzuki, the king of Indian roads, is getting ready to dip its toes into the electric pool with its first EV, the Concept eVX SUV, slated for a January 2025 launch. But before you picture charging struggles at every corner, Maruti has a plan: a whopping 25,000 EV charging points across India! 

Why it matters

India’s love affair with EVs has been, well, a slow burn. 

• Sales even dropped by 10% in August 2024! 

Blame it on the lack of charging stations, the fear of running out of charge in the middle of nowhere, or those hefty price tags. Coming to Maruti, with 25,000 charging points on the horizon, range anxiety might soon be a thing of the past. 

They are also teaming up with oil marketing companies (yes, the same ones you fuel your petrol car at) to build an EV-friendly world. These companies control around 81,000 retail outlets, making them ideal spots for new EV charging stations.

The plans!

Despite being a latecomer to the EV market, Maruti is making bold moves with the Concept eVX, priced between ₹20-25 lakh, and an initial target of 3,000 units in three months. While Tata Motors already has 5,600 public charging points, Maruti’s plan for 25,000 charging stations, backed by its extensive service network, signals it's playing catch-up with determination. If successful, this infrastructure push could help Maruti swiftly carve out a strong position in India’s growing EV space.

GLOBAL NAZARA

Tupperware files for bankruptcy as its iconic containers lose appeal

Tupperware Brands Corp. has officially filed for Chapter 11 bankruptcy, waving goodbye to its once-beloved food storage containers. With estimated assets between $500 million and $1 billion, and liabilities soaring from $1 billion to $10 billion, it seems the colorful containers couldn’t hold on.

After a brief pandemic boost, rising costs for plastic, labor, and freight sunk the company deeper into financial trouble.

India approves NPCIL-NTPC nuclear joint venture

The government has given the green light for a joint venture between NPCIL and NTPC to build four nuclear plants in Rajasthan. The new company, Anushakti Vidyut Nigam Limited (ASHVINI), will handle the construction of 700 MWe plants in Mahi Banswara. With NPCIL holding 51% of ASHVINI, this project aims to power up India's nuclear capacity to meet its ambitious Net Zero goals by 2070. With a current capacity of 8,180 MW, India’s goal is to reach 22,800 MW by 2032.

TOP STORIES

Vodafone Idea and AWS Cut Ties with Byju’s Over-Unpaid Dues

What happened?

Byju’s, the beleaguered edtech giant, is facing fresh troubles as Vodafone Idea and Amazon Web Services (AWS) suspend their services due to unpaid bills. AWS, which provided cloud services, and Vodafone Idea, the company’s sole mobile network provider, halted their support earlier this month. 

This suspension has reportedly led to frequent crashes of Byju’s mobile app and issues with its contact number. 

Why it matters

The suspension of critical services comes at a precarious time for Byju’s, already in a heated dispute with US-based Glas Trust Company over a $1.2 billion loan. Glas Trust argues that Byju’s has defaulted on this loan for over 17 months, while Byju’s counters that its verified debt is significantly lower, around ₹20 crore. 

The legal clash escalated recently in the Supreme Court, where claims were made about changes in creditor stakes, adding to the company’s mounting woes. 

Conclusion

As Byju scrambles to manage its operational and financial issues, the disruption in services only compounds its challenges. The company is currently juggling multiple crises, from service suspensions to legal battles with creditors. While the company asserts that its digital platforms are intact and has shifted to Google Cloud, the disruption caused by Vodafone Idea and AWS could impact its operations and reputation further.  

MIRCH MASALA

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