22 Nov

NewsWala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: After a two-day dip, Sensex and Nifty rebound, closing higher, though Foreign Portfolio Investors (FPIs) maintain their selling streak. Secondly, Yes Bank after Monday's profit booking dance, is back, opening with a stylish upside gap and reaching for the sky at ₹20.45, scaling heights not seen in 10 months.

BUSINESS

ED Confirms Byju’s Notice for Rs 9,362 Crore Violations

What happened

In a surprising turn of events, the Enforcement Directorate (ED) confirmed issuing a show-cause notice to ed-tech giant Think and Learn Private Limited, popularly known as Byju's, and its founder Byju Raveendran. The notice, sent on November 21, alleges a violation of the Foreign Exchange Management Act (FEMA). The ED came up to clarify after the ad-tech giant swiftly denied the reports.

The ED contends that Byjus and Raveendran have breached FEMA provisions by failing to furnish documentation related to imports, realizing proceeds from exports conducted outside India, and other related activities. 

Why it matters

The alleged FEMA violations amount to a staggering ₹9,362.35 crore, according to the ED's complaint. The agency initiated an investigation based on various complaints regarding foreign investments received by Byjus. The accusations extend to the company's significant foreign remittances and investments abroad, breaking FEMA provisions and causing revenue loss to the Indian government.

Zoom out

As Byjus finds itself under the ED's scrutiny for alleged violations, the ed-tech giant and its founder face a significant challenge in navigating the legal complexities ahead. The enforcement agency's assertion of financial irregularities worth billions has put the spotlight on Byjus, prompting a closer examination of its financial practices. 
After being in the news for negatives every now and then, Byjus is like:

BIG MONEY MOVES

Mukesh Ambani commits ₹65,000 Crore Boost for West Bengal

Reliance Industries injected ₹45,000 crore into West Bengal, with plans for an additional ₹20,000 crore over the next three years, as announced by Chairman Mukesh Ambani at the Bengal Global Business Summit. The investments will predominantly focus on telecom, retail, and bioenergy. Ambani highlighted the rapid expansion of Jio Fibre and Air Fibre, aiming to transform every Bengal home into a smart home. He also revealed that Reliance Retail will increase its stores from 1000 to 1200 within two years, fostering employment and supporting numerous MSMEs.

Infosys and Proximus Team Up to Expand Services

Infosys has joined forces with Proximus, Belgium's digital services provider, for an IT modernization project. The collaboration involved consolidating key IT components, enabling Proximus to offer fiber and new digital services to a broader customer base. Acting as a managing partner, Infosys successfully modernized the affiliate's technology stack, completing the project within budget and on time. This builds on Infosys' 25-year relationship with Proximus, showcasing their commitment to transforming and maintaining IT applications. 

BUSINESS

Jio Financial Services Ready for Bond Debut

What happened

Jio Financial Services, the financial powerhouse under Mukesh Ambani's umbrella, is making waves in the market as it gears up for its debut bond issuance. In initial talks with merchant bankers, the company is eyeing a substantial raise between ₹5,000 crore and ₹10,000 crore through five-year bonds, with a potential market entry in the January-March period. This strategic move aligns with Jio Financial's vision of establishing itself as a full-service financial sector player.

Why it matters

Jio Financial's foray into the bond market holds significant implications for the financial sector. The potential raise of ₹10,000 crore underscores the company's ambitious expansion plans and its commitment to becoming a key player in retail lending, asset management, insurance broking, and digital payments.

• Amidst the credit-rating process, industry insiders anticipate a stellar AAA rating for Jio Financial, given its robust capitalization and considerable industrial presence.

•  The company's stellar financial performance during Q2FY24, where it doubled its net profit, positions it as a formidable player in the financial landscape.

• JFS recently approved a joint venture with BlackRock for an asset management business, involving an initial investment of $150 million each, signaling its commitment to strategic collaborations and expansion into diverse financial services.

Zoom out

Jio Financial's move is part of a broader trend in the financial sector, where companies are exploring diverse avenues to raise capital and expand their service offerings. The success of this bond issuance could pave the way for similar strategies among other non-banking financial entities. It also marks a significant step in Mukesh Ambani's vision of creating a robust financial ecosystem within the Reliance conglomerate.

BIG PICTURE

😕 OpenAI Ends Up in Turmoil after Altman’s Departure

Hundreds of OpenAI employees, including co-founder Ilya Sutskever, have signed a letter urging the resignation of remaining board members or indicating their intent to join Sam Altman's new venture at Microsoft. The letter, signed by 667 people, accuses the board of incompetence. Microsoft has reportedly assured these employees of positions at the new subsidiary. Altman's recent departure led to a failed negotiation for his return, prompting an independent venture with Microsoft.

🤝 MMG Makes $1.88 Billion Deal with Cuprous Capital

Chinese miner MMG Ltd's shares surged to an eight-week high following its $1.88 billion acquisition of Canada-based Cuprous Capital, the parent company of Botswana's Khoemacau copper mine. MMG, focused on copper assets amid green energy demand, saw shares rise by 7.5%. The move aligns with MMG's vision for a leading international mining company in the low-carbon future. Khoemacau, located in the Kalahari Copper Belt, produces 60,000 tons of copper annually, with potential expansion to 130,000 tons.

BUSINESS

Hyundai Ignites EV Drive with ₹700 Crore Battery Plant 

What happened

In a bold move aimed at electrifying the Indian automotive landscape, Hyundai Motor India has placed a hefty bet on localizing battery packs as the game-changer for electric vehicle (EV) affordability. 

The company is making a strategic investment of ₹700 crore in a battery assembly plant in Chennai, Tamil Nadu. This facility, set to produce 75,000 battery packs annually by 2025, shows Hyundai's commitment to localization as the trick for lowering EV costs.

Why it matters

At the core of Hyundai's strategy lies the mission to make electric vehicles more accessible to the masses. By localizing battery production, Hyundai aims to significantly slash costs, paving the way for a surge in EV adoption. This approach aligns seamlessly with the Indian government's push for a greener automotive future, complemented by incentives like the production-linked incentive (PLI) scheme and the advanced chemistry cell (ACC) battery PLI scheme.

•  Presently, EVs account for less than 2% of the Indian market, but Hyundai is eyeing a substantial leap, targeting 20-22% EV penetration by 2030. 

• The government has set an ambitious goal of achieving a 30% market share for electric vehicles

Hyundai's push for localized battery production isn't just a financial move; it's a game-changer that could make electric vehicles more accessible and reshape India's automotive future.

Zoom out

With global skepticism swirling around EVs and their perceived lack of affordability hindering widespread adoption, Hyundai is gearing up to tackle this challenge head-on. The goal is clear – to make electric vehicles not just an eco-conscious choice but an economical one for Indian consumers. 

MIRCH MASALA

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