Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Sensex and Nifty ended flat after a day of ups and downs. IT stocks shone bright, but auto and banking sectors weighed down the market mood.

BUSINESS

Godrej Properties Sets Bengaluru Abuzz with Record-Breaking Sales

What happened

Godrej Properties Ltd. has shaken up Bengaluru's real estate scene by selling over 2,000 homes worth a whopping ₹3,150 crore at its Godrej Woodscapes project in Whitefield-Budigere Cross. 

This achievement marks a remarkable 500% quarter-on-quarter growth in sales for the company in Bengaluru and surpasses its entire FY24 sales in South India within the first quarter of FY25.

Why it matters

The surge in sales isn't just about big numbers; it's a testament to Godrej Properties' prowess in capturing the hearts (and wallets) of Bengaluru's homebuyers. The company's strategic approach and customer appeal have not only boosted sales but also propelled its stock price, which has surged by 58% this year. This success reflects investor confidence in Godrej Properties' ability to deliver in the residential sector.

Additionally, the company has ambitious plans for expansion, including multiple new project launches in Bengaluru and a strategic entry into Hyderabad. These initiatives are expected to improve its market presence and capitalise on rising demand in key South Indian cities.

Zoom out

As Godrej Properties continues to push boundaries, recent acquisitions like the 7-acre land parcel in North Bengaluru highlight its commitment to quality and growth. With a projected pre-sales target of ₹27,000 crore for the fiscal year, the company remains bullish on its prospects and aims to redefine luxury living across India.

BIG MONEY MOVES

Asian Paints splashes big bucks to double Mysuru plant capacity

Asian Paints is painting the town red (and every other colour) with a whopping ₹1,305 crore investment to double its Mysuru plant's production to 600,000 KL annually. This expansion pumps the company’s total annual capacity to 2,150,000 KL. Plus, a new water-based facility in Madhya Pradesh with 400,000 KL capacity is set for 2028.

Meanwhile, Aditya Birla Group’s new brand, Birla Opus, is eyeing the second spot in the paint market.

L&T bags $4 billion Saudi contract, shares jump 2%

Larsen & Toubro (L&T) hit the jackpot with a $4 billion (₹35,000 crore) contract from Saudi Aramco for the Jafurah Gas project. This news had L&T’s shares dancing, up over 2.5% in morning trading. The contract, part of Aramco's $110 billion gas project, focuses on developing gas compression systems.

L&T’s Energy Hydrocarbon division will handle two key packages: a $2.9 billion gas processing plant and a $1 billion gas compression unit. With this win, L&T proves once again they’re the rock stars of EPC.

BUSINESS

Kotak Mahindra Bank on Hindenburg Hitlist after Adani

What happened

US-based activist investor Hindenburg Research has stirred fresh controversy on Dalal Street, targeting Kotak Mahindra Bank and India's markets regulator, SEBI. This drama unfolded after Adani Group's saga, causing Kotak Mahindra Bank's stock to stumble by up to 4%.

Hindenburg's latest move stems from SEBI's show-cause notice, which allegedly implicates Kotak's involvement in short positions linked to the Adani saga, aiming to profit ₹183.24 crore.

Why it matters

The fallout has sparked concerns over regulatory scrutiny and corporate governance. SEBI's handling of the case has raised eyebrows, particularly its omission of Kotak Bank's direct name in favour of references to entities like K-India Opportunities Fund and KMIL. Hindenburg's accusations suggest there might be issues with how investments are regulated and disclosed. They claim there are gaps in how things like offshore funds and financial actions are overseen and made public.

In response, Kotak Mahindra International Limited (KMIL) denied any association with Hindenburg or involvement in the alleged scheme. They clarified that transactions were conducted on a principal basis, with due diligence performed under regulatory guidelines.

Zoom out

As the saga unfolds, market observers await SEBI's response amidst calls for clarity and fairness in regulatory actions. The episode not only impacts Kotak Mahindra Bank's market standing but also raises broader questions about investor trust and regulatory effectiveness. With stakeholders closely monitoring developments, the fallout from Hindenburg's allegations could shape future market dynamics and regulatory policies in India.

BIG PICTURE

BMW India zooms to record sales in first half of 2024

BMW India is revving its engines with a record-breaking 7,098 units sold in the first half of 2024, a 21% jump from 5,867 units last year. President Vikram Pawah is all smiles, crediting this success to a blend of stellar business strategy and keeping customers delighted.

Their motorcycles are also speeding ahead, with 3,614 BMW Motorrad bikes sold during the same period. 

Spain's green leap: renewables now fuel nearly 60% of electricity

Spain is turning up the green energy dial, hitting almost 60% renewable electricity in the first half of 2024. This surge is fueled by new solar installations and increased hydropower output, according to grid operator Redeia. Wind farms blew in with 24.4% of the total while solar plants shone brighter, generating 16.3%, up from 13.8%. 

With nuclear energy contributing the remainder, nearly 80% of Spain’s electricity is now carbon-free.

BUSINESS

Unacademy Lays Off 250 Employees Amid Potential Merger Talks

What happened

Unacademy, the ed-tech giant, has laid off approximately 250 employees, sparking discussions of a potential merger with another online platform, K-12. About 150 of these layoffs were from the sales department. 100 employees were let go due to restructuring, while the remaining layoffs were performance-based. The company confirmed the news but did not disclose further details on the affected roles.

Why it matters

The layoffs at Unacademy serve as a cautionary tale for the ed-tech sector, akin to teaching a lesson without the whiteboard. 

• Since 2022, the company has staged several rounds of layoffs, parting ways with over 2,000 employees. 
  
  

• Despite trimming losses from ₹2,847 crore to ₹1,678 crore in the last financial year, revenue woes persisted, clocking in at ₹907 crore.
  

The sacking reflects the harsh reality many ed-tech firms face as they navigate a post-pandemic world. Students returning to traditional classrooms and tutorials have led to reduced demand for online learning platforms. Investors have also become wary, evidenced by Dutch technology investor Prosus Ventures writing off its entire $530-million investment in Byju’s, once India’s most valuable startup.

Zoom out

As Unacademy navigates these challenges, the potential merger with K-12 Techno Services could signal a strategic pivot to consolidate resources and remain competitive. With a total funding of $877 million and a valuation of $3.44 billion from its last Series H round, Unacademy remains a key player in the industry, but the road ahead is fraught with uncertainties.

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