24 November

NewsWala ki sawari, aaj ki taaza baat lai hai! Rise and shine!
 

MARKETS

Markets: Sensex and Nifty 50 played a riveting game of financial seesaw, ending the session flatter than a pancake. While realty and metals flaunted their shining armour, pharma stocks were apparently on a coffee break, dragging their feet through the market like reluctant Monday morning commuters.

BUSINESS

Hiring Heatwave: Delhi Defies Global Chill

What happened 

In the midst of a global funding winter, Delhi's startup scene defied expectations, showcasing a surprising surge in hiring. According to PrivateCircle Research, Delhi-based unicorns collectively welcomed a whopping 52,420 new employees between September 2022 and July 2023. PhysicsWallah, PolicyBazaar, Delhivery, and BharatPe emerged as major recruiters in this hiring spree. Nationally, the 111 unicorns witnessed a robust recruitment drive, adding 3.7 lakh employees during the same period.

Why it matters

Delhi-NCR's unicorns painted a contrasting picture with a substantial workforce increase, but the report also shed light on a significant churn. 

• While 3.6 lakh employees bid farewell to their unicorn jobs across India, Delhi-NCR's unicorns alone accounted for 1.8 lakh departures. 

• Bengaluru, however, experienced a workforce shrinkage of over 40,000, indicating a less favourable quarter for the tech hub.

•  Despite the hiring boom, the attrition rate averaged 4.72% for the 111 unicorns, with only three—Zerodha, Zoho, and Hike—keeping attrition rates under 1%.

Delhi's unicorn hiring surge amid global uncertainties showcases the city's resilience and attractiveness as a startup hub, defying the broader trend. However, the significant attrition rates and Bengaluru's workforce shrinkage emphasize the challenges and competitive dynamics within India's startup ecosystem.

Zoom out

As unicorn employment faced both peaks and troughs, Delhi's remarkable surge stands out against Bengaluru's contraction. The overall unicorn landscape in India weathered the storm, with hiring gaining momentum from April 2023. As the unicorn saga continues, the employment dynamics reflect the ebb and flow of a rapidly evolving industry, marked by surprises and setbacks alike.

BIG MONEY MOVES

LIC Unveils 3-4 New Products for a Premium Surge

LIC plans to launch 3-4 new products in the coming months, targeting a double-digit increase in new business premiums this fiscal year. The upcoming offering includes features like a loan facility and premature withdrawal options, aiming to benefit both policyholders and shareholders. LIC's new business premium income in the individual segment saw a 2.65% increase in the first half of this fiscal year, reaching ₹25,184 crore.

Jio Financial Seeks RBI Nod for Converting from NBFC to CIC

Jio Financial Services, a demerged entity of Reliance Industries, seeks RBI approval to convert into a core investment company (CIC) from a non-banking financial company (NBFC). CICs, passive holding entities, focus on equity investments in group companies, and Jio Financial aims to invest at least 90% of its net assets accordingly. The conversion is expected to refine its financial operations and enhance control over subsidiaries, with its recent quarterly report reflecting a net profit of ₹668.2 crore, doubling from the previous quarter.

BUSINESS

ONGC to Rescue HPCL's Green Dreams with $1.9 Billion

What happened 

The Indian government is contemplating a bold move to finance green projects of Hindustan Petroleum Corporation Limited (HPCL). It's anticipated that ONGC might be roped in to raise an impressive $1.9 billion (₹15,835 crores) by issuing preferential shares to fund HPCL's sustainable initiatives. If the plan gets the green light, ONGC's rights issue could amount to about ₹15,500 crore ($1.86 billion), based on rights issues from other state refiners.

Why it matters 

This quirky financial plan involves ONGC, India's top energy explorer, potentially becoming the knight in shining armour for HPCL's green endeavours. The government's move aligns with a broader initiative, with India's finance minister earmarking $3.6 billion to facilitate major state oil refiners' shift toward cleaner energy.

The sources suggest various options for HPCL, including preferential rate loans, showcasing the government's commitment to promoting sustainable practices. Yet, the government faced a tricky situation – injecting funds through preferential shares could reduce ONGC's ownership below 50%, endangering its indirect control over HPCL.

If it works out, this unique financial move could inspire other government-owned companies to team up for eco-friendly projects, marking a fresh chapter in India's business scene.

Zoom out

As ONGC awaits the finance ministry's response, the financial world watches this unconventional rescue mission unfold. The government's intricate dance between maintaining control and financing green initiatives adds a touch of financial drama to the narrative. Meanwhile, Indian Oil Corp and Bharat Petroleum Corp are also gearing up with rights issues, emphasizing a collective commitment to invest trillions in achieving net-zero emissions by 2040. 

BIG PICTURE

🪙 Binance Bleeds $956M post CEO Exit

Binance faces a tumultuous period as investors pull $956 million within 24 hours following CEO Changpeng Zhao's guilty plea to violating US anti-money laundering laws. The $4.3 billion settlement deal has cast uncertainty on the world's largest crypto exchange's future, with Richard Teng taking over as CEO. Zhao's dramatic exit includes a $50 million fine and a potential 18-month prison term. Investors' response echoes previous challenges, emphasizing the industry's vulnerability to scandals.

📷️ Adobe's Game-Changing Move: Snags Rephrase.ai for AI Video Magic

Adobe, the software giant, has acquired Bengaluru-based AI startup Rephrase.ai, a video creation platform. The majority of Rephrase.ai's employees will join Adobe. This marks Adobe's first agreement in the generative AI and video-tooling industries, and Rephrase.ai became the first Indian startup acquired by Adobe. The deal's financial details remain undisclosed. Rephrase.ai, founded in 2019, offers text-to-video generation and has raised $13.9 million to date.

BUSINESS

JSW Steel Completes ₹750 Crore Investment in Paints

What happened

JSW Steel, a global steel producer, has successfully concluded its planned investment in JSW Paints, injecting the last tranche of ₹75 crores to fulfill the total commitment of ₹750 crores. The investment, initiated in July 2021, was structured across multiple installments to support JSW Paints' expansion strategies.

Why it matters

JSW Steel's completion of the ₹750 crore investment underscores its strategic commitment to bolster JSW Paints, the flagship company of the JSW Group.

•  With this final step, JSW Steel now holds 2,94,82,565 equity shares in JSW Paints, constituting 12.84% of the issued and paid-up equity capital.

This move aligns with JSW Steel's vision of playing a pivotal role in the growth and development of its affiliated ventures, adding a colourful stroke to its diversified portfolio.

Zoom out

As JSW Steel solidifies its position in JSW Paints, the completion of this substantial investment marks a financial masterpiece. The company's adherence to disclosure regulations ensures transparency in this strategic move, showcasing its commitment to regulatory compliance. This artistic finale in the investment journey not only fortifies JSW Paints but also exemplifies the synergy within the JSW Group, painting a vibrant picture of strategic collaboration and financial prudence.

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