Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Nifty missed the 25,000 mark by a tiny margin and dropped over 160 points from its daily high. While broader markets showed strength with mid and small caps gaining 1%, Nifty Bank fell 1,000 points from its high, and sectors like PSU banks, autos, and metals saw gains.

BUSINESS

Banks Face Seven-Year Debt Recovery Backlog

What happened

Indian banks are grappling with a massive debt recovery backlog that, at the current pace, will take an estimated seven years to clear. With over 200,000 cases piling up at Debt Recovery Tribunals (DRTs) and these tribunals handling just 30,000 to 40,000 cases annually, the situation looks grim. 

• In the last five years, DRTs managed to resolve only 145,000 cases.

Why it matters

The backlog at DRTs is more than just a bureaucratic headache—it impacts the entire financial ecosystem. DRTs, once boasting a recovery rate as high as 77% in 2005-06, now struggle with single-digit recovery rates.

Meanwhile, the Insolvency and Bankruptcy Code (IBC) has proven more effective, resolving over 1,000 company cases and recovering ₹3.3 lakh crore for creditors. In fact, the IBC has managed to settle around 28,000 cases involving more than ₹10 lakh crore before formal admission. 

Adding to the urgency, the Reserve Bank of India (RBI) data reveals that between 2018 and 2021, recovery rates for DRTs dipped as low as 4%.

What's next?

To rescue this sinking ship, the government has rolled out a master plan to beef up the capacity of DRTs and National Company Law Tribunals (NCLTs).

New plans, like getting banks to handle small loans through Lok Adalats, aim to ease the burden on DRTs. Now, bank chiefs are personally keeping an eye on top accounts to speed up resolutions and clear the debt recovery jam.

BIG MONEY MOVES

CtrlS Datacenters to raise $300 million for AI growth

CtrlS Datacenters from Hyderabad is on a $300 million mission to expand across India and into Southeast and West Asia. With a $2 billion investment plan over the next five years, they’re set to boost their data centre capacity by 350 MW. 

This move comes as the demand for data centres skyrockets, driven by the surge in artificial intelligence and 5G services. CtrlS currently operates 12 data centres with 234 MW capacity and is already setting up shop in Thailand.

BluPine gets a sunny boost with Tata's ₹239 crore

BluPine Energy just bagged a cool ₹239 crore from Tata Capital, all set to power up a 75 MW solar project in Chhattisgarh. This project will crank out 117 million units of energy yearly, cutting down CO2 emissions by over 107,000 tonnes. BluPine, backed by global investor Actis, aims to light up the renewable energy scene in India. Meanwhile, Tata Capital, the financial powerhouse of the Tata Group, keeps shining bright in the non-banking financial sector. Looks like the future's so bright, they gotta wear shades!

BUSINESS

Ola Electric Gears Up for ₹60 Billion IPO

What happened

Ola Electric is set to splash India’s stock market with its forthcoming initial public offering (IPO), aiming to raise ₹60 billion, making it the largest domestic IPO of the year. 

• The company plans to issue new shares worth ₹54 billion and sell existing shares valued at ₹6 billion. 
  

Although the company is valued at ₹4 trillion for this IPO—a significant 25% drop from its last valuation—the firm still dominates the e-scooter market with a 46% share.

Driving the news

This IPO, scheduled from August 1 to August 6, is part of Ola Electric’s strategy to expand its e-scooter business and explore electric motorcycles. The offering arrives at a time when more than 150 companies have collectively raised nearly ₹400 billion in public listings this year, nearly double the amount from the same period last year.

The lower valuation of ₹4 trillion aims to attract a broad spectrum of investors, including prominent names like Fidelity and Norges Bank. Ola Electric’s shares are priced between ₹72 and ₹76 each, with a special discount of ₹7 per share for eligible employees. 

Final words

The company, which has shaken up the two-wheeler market and made rivals like TVS and Hero MotoCorp sweat, had grand plans for an electric car in 2024. But, plot twist—those plans are on hold so Ola can double down on e-scooters and try its hand at electric motorcycles.

Oh, and let’s not forget, they posted a loss of ₹15.84 billion this past fiscal year. But hey, what’s a little red ink when you’re steering towards a greener future? 

BIG PICTURE

UK reboots trade talks with India and partners for fresh deals

Britain's new government, led by Prime Minister Keir Starmer, is kicking off trade talks with India and Gulf Cooperation Council (GCC) countries. After a 14-year hiatus, the Labour Party’s victory in the July 4 election has shifted focus to economic growth, and fresh free trade agreements (FTAs) are on the agenda. The UK, which already has FTAs with Israel, South Korea, Switzerland, and Turkey, plans to revamp these deals. With trade discussions set to resume this autumn, the goal is to boost business access, create jobs, and fuel economic growth. 

PwC and Microsoft team up to boost cybersecurity with Copilot

PwC India and Microsoft India are joining forces to upgrade cybersecurity with a new partnership. Microsoft’s Copilot, an AI-powered tool, will help quickly spot and kick out cyber threats, while PwC will handle the secure rebuilding of key systems. This combo of Microsoft’s advanced technology and PwC’s incident management expertise aims to tackle complex cyber attacks. So, if you're concerned about cyber threats, PwC and Microsoft are here to make sure those bad guys are out the door in no time!

BUSINESS

Tata International to Double Down on Green Leather

What happened

Tata International is set to turn up the dial on sustainable leather production, aiming to double its output in the next four years. The company plans to elevate its sustainable leather share from 27% to a solid 50% by the end of fiscal year 2028. This green revolution is powered by their Earthcare brand and their shiny new product, Phoenix Leather, crafted at their Dewas factory.

They’re also bouncing back from post-Covid blues with growing interest from big markets like the USA, China, and Europe.

Why it matters

Tata’s green leather goals aren’t just about looking good—they’re about doing good. By ramping up their sustainable leather production, Tata is stepping up to the plate for a cleaner, greener fashion industry. Their partnerships with global giants like Marks & Spencer and Zara mean their eco-friendly leather will be gracing stores worldwide.

Plus, with customs duties on key leather types slashed to zero, Tata’s green leather is now a budget-friendly choice for brands everywhere. It’s a win-win for both the environment and fashionistas.

Zoom out

With the launch of Phoenix Leather and the Earthcare range, Tata is not only advancing eco-friendly leather technology but also responding to rising global demand. This move aligns with their commitment to reducing environmental impact while meeting the needs of major markets like the USA, China, and Europe. 

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