Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian equity markets saw a choppy session on December 24, closing slightly lower amid volatility. Meanwhile, Tata Group stocks stole the spotlight, surging up to 12% on buzz around Tata Capital's ₹15,000-crore IPO plans.

TOP STORIES

Oyo Bags G6, Checks Into Big League

What Happened?

Oyo, led by Ritesh Agarwal, has snapped up G6 Hospitality from Blackstone for $525 million in an all-cash deal. G6, the proud parent of Motel 6 and Studio 6, brings along 1,500 hotels in the US and Canada. It’s like Oyo just bought a VIP pass to the North American hospitality sector! 

With this deal, Oyo expects its EBITDA (aka the "profit-before-complications" metric) to hit ₹2,000 crore by FY26, with G6 pitching in ₹630 crore next year. Together, they’re aiming for $3 billion in bookings, $1.7 billion courtesy of G6. Not bad for a company that entered the US just five years ago.

Why It Matters

This deal isn’t just about expanding Oyo’s map. It marks a transformative moment, positioning the company as a major player in North America. Adding 1,500 hotels supercharges Oyo’s presence, which previously included 400 properties in 35 states. 

Oyo is playing to win, with plans to add 150 more hotels under the Motel 6 and Studio 6 brands in the coming year. 

• Globally, Oyo now oversees over 184,000 properties.

Zoom out

From turning losses into ₹229 crore profit in FY24 to bagging $3 billion in bookings with this deal, Oyo’s on a winning streak. The company is clearly in “go big or go home” mode, but let’s be honest—going home is unlikely when you’ve just bought 1,500 hotels! With the IPO still in waiting, Oyo’s ensuring its balance sheet looks as inviting as a five-star lobby. 

PAISON KA KHEL

Digital lending hits ₹37,000 crore

Digital lenders disbursed a whopping 3 crore loans worth ₹37,000 crore in Q2FY25, as per FACE’s latest report. While the numbers sound impressive, growth slowed to 19% this year, compared to last year’s zippy 44%. The average loan size was ₹10,891—just enough to cover a smartphone.

Out of ₹51,537 crore in assets under management, 74% stayed on balance sheets, showing how fintechs are playing it safe. Interestingly, 11 big players handled 90% of disbursements. 

Waaree Energies pumps ₹850 crore into green energy 

Waaree Energies has greenlit investment proposals totalling ₹850 crore to set up electrolyser and storage cell manufacturing plants. This includes ₹551 crore for a 300 MW electrolyser plant and ₹650 crore for a 3.5 GWh Lithium-Ion storage cell facility, both under its subsidiaries. The investment will be funded through a mix of debt and internal resources. Additionally, the company approved a ₹130 crore capital expenditure for its inverter business.

TOP STORIES

PNGRB Plots LPG Pipeline Revolution

What Happened?

The PNGRB is ditching its tanker-heavy transport strategy and laying the groundwork—literally—for a massive LPG pipeline expansion. Chairperson Anil Kumar Jain says we’ve got a pipeline problem: out of 28 million tonnes of LPG consumed annually, only 9 million tonnes flow through pipes. The rest clogs up roads and railways, burning cash and posing risks.

• To fix this, PNGRB plans nine new pipelines stretching 3,470 km to link 50 bottling plants, carrying 4.29 million tonnes annually.

Why It Matters

Pipelines are a game-changer. They last 60 years, reduce costs, and significantly cut risks. A Deloitte-PNGRB study revealed that just one pipeline connecting Shikrapur, Hubli, and Goa could save ₹1,030 crore, eliminate 0.82 million road tanker trips, and slash 1.4 million tonnes of CO₂ emissions. 

Currently, only 54 of 210 LPG bottling plants are linked to pipelines, but new and ongoing projects could raise this to 90. With India importing over half its LPG needs, efficient transport is crucial for energy security. Plus, integrating pipelines as common carriers would open up the market for traders and importers, adding a new business dimension.

Conclusion

PNGRB’s pipeline dream is about more than just connecting bottling plants—it’s about disconnecting from the chaos of tankers. With growing demand fueled by initiatives like the Pradhan Mantri Ujjwala Yojana, LPG consumption is up 6.8% this fiscal. Expanding pipelines will ensure safer, cheaper, and more eco-friendly delivery, while also reducing the government’s subsidy burden. 

GLOBAL NAZARA

Walmart’s “Spark” burns in lawsuit fire

Walmart and its fintech buddy, Branch Messenger Inc., are in hot water. The US Consumer Financial Protection Bureau (CFPB) alleges the duo opened over 1 million accounts for Spark Driver program drivers—without consent. Drivers reportedly had to use these accounts to get paid, or face the boot.

CFPB claims false promises, delayed payments, and sneaky fees were the norm. While "instant pay" cost up to $2.99 per transfer, the free option took five days to settle. Walmart denies it all, calling the claims “riddled with errors.”

Hisense plans to buy 26% stake in Epack

Hisense Group, China’s TV giant, is gearing up to acquire up to 26% of Epack Durable's subsidiary, Epack Manufacturing Technologies, for ₹800-1,000 crore. Epack, India’s second-largest AC contract manufacturer, will also generate nearly $1 billion in revenue over the next five years from this partnership.

The deal will set up a large manufacturing facility in Andhra Pradesh to produce air conditioners, refrigerators, and washing machines. The expansion of Hisense’s footprint comes as India encourages foreign partnerships, with a nod from the government’s FDI norms.

TOP STORIES

GST Hike Puts the Brakes on Used Car Sales

What Happened

The GST Council decided to take the "scenic route" with taxes, raising GST on small used cars from 12% to 18%. What does that mean? If a car is bought for ₹1 lakh and sold for ₹1.4 lakh, platforms now pay ₹7,200 in tax instead of ₹4,800—a 50% jump. 

This tax hike aligns smaller cars with their bigger SUV siblings, which were already taxed at 18%. In FY23, India sold 51 lakh used cars, outpacing 42.3 lakh new ones. 

• Meanwhile, passenger vehicle sales hit a pothole in November, dropping 14% year-on-year as new car prices revved up by 3-4% over two years.

Why It Matters

This move could put a dent in wallets—not just for platforms, but for buyers too. Organised platforms aiming to professionalise used car sales might have to pass the higher tax to customers, driving up prices by 0.6% to 1.5% on second-hand small fossil-fuel cars. With 70% of the market still in the unorganised sector, experts worry this hike may slow the shift toward transparency and trust. 

For EVs, the irony persists: new ones get a 5% GST and state perks, but used EVs are left charging in the corner. Even tax experts admit the changes may help in some cases, but for now, it’s like putting a Band-Aid on a leaky tyre.

Zoom out

India’s love affair with pre-loved cars has been strong—51 lakh units sold last year prove that. But with this tax hike, affordability might stall, leaving buyers and sellers honking in frustration. For platforms, it’s a tricky balancing act: absorb the hike or pass it on. For buyers, it's another reason to think twice before investing. 

The journey ahead is full of speed bumps. But hey, in a country where we sell more used cars than new, we’re all seasoned drivers of a bumpy ride, aren’t we?

MIRCH MASALA

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