31 October 2023

The NewsWala

October 30, 2023

Newswala aaya, taaza khabre laya! Good morning!
 

Today, Your Newswala Delivers:

  • Fincare SFB joining AU SFB

  • NHIT's Financial Road Trip

  • The Direct listing dream of firms

Chalo chalein!

The reading time is 5.5 minutes.
 

BUSINESS

Fincare SFB and AU SFB Unite in Mega Merger Deal


What Happened

Get ready to witness the financial fusion of Fincare Small Finance Bank (Fincare SFB) and AU Small Finance Bank (AU SFB) starting February 1, 2024.

It's like a finance-themed magic trick, with shareholders poised to maintain about 9.9% ownership in AU SFB once the smoke clears.

In an era where employees often change jobs as frequently as they change hairstyles, AU SFB is giving Fincare SFB's workforce job security.

All Fincare SFB employees are invited to join the AU SFB family.

Why It Matters

So why should you care about this financial matrimony?

Well, Fincare SFB is a digitally savvy small finance bank with a penchant for microfinance.

With a whopping 93.6% of its loans dedicated to rural areas, it's like the financial superhero for the underserved.

It has been making waves in South India, where it's home to 14,867 employees and has a total deposit of Rs. 9.453 crores

Post-merger, this dynamic duo plans to serve nearly 98 lakh customers, employing around 43,000 people with a combined balance sheet of more than Rs 1.1 lakh crores.

Zoom Out

This merger isn't just about numbers; it's a strategic symphony.

The two banks are joining forces to create a Small Finance Bank powerhouse that'll crisscross the Indian landscape.

They aim to diversify their portfolio, especially targeting rural and financial inclusion-focused microfinance businesses.

Think of it as a big step forward in bringing financial services to those who need it most.

Meanwhile, the investors are like

 

BIG MONEY MOVES


Tata Motors Drives Home with Rs 766 Crore Victory

Tata Motors has won an arbitral award of Rs 766 crore plus interest for its investment in the abandoned Singur plant where it intended to manufacture the Tata Nano.

The three-member Arbitral Tribunal's unanimous decision stated that Tata Motors can recover the sum with 11 per cent per annum interest from September 1, 2016, until recovery.

Apple India's Soaring Revenue Hits Rs 50,000 Crore Milestone

Apple's business in India had a fantastic year, with revenue inching close to Rs 50,000 crore in the financial year 2022-23.

Sales skyrocketed by a stunning 48%, reaching Rs 49,321 crore, and net profit surged an impressive 76% to Rs 2,229 crore.

This remarkable growth marks the fastest increase in net profit for Apple in India over the last five years.

 

BUSINESS

Turning Highways into Gold Mines


What Happened

The National Highways Infra Trust (NHIT) is cooking up something big, and it's going to be a financial feast.

They plan to raise a whopping ₹9,000 crore right after Diwali, using a mix of debt and equity.

This is their third round of fundraising, and they're doing it in style.

They're going to monetize six 250 km highway stretches, making sure the money rolls in.

Why it matters

Well, it's not just about the money; it's about the roads.

These highways are not your everyday roads; they're cash machines, generating around ₹400 crore in annual revenue.

But what's even cooler is that NHIT is thinking about us, the retail investors.

They're offering non-convertible debentures (NCD) with almost 8% returns. That's like the cherry on top of the financial cake!

Zoom out

The big picture here is about infrastructure investment trusts (InvITs).

These are like magical boxes that gather money from people and invest it in things that make more money. In this case, it's roads.

So, whether you're a finance enthusiast or just someone who enjoys a good road trip, keep an eye on NHIT's fundraising adventures. 

 

BIG PICTURE


Xi Jinping's Chilling Stranglehold on China's Finance

President Xi Jinping is consolidating control over China's $61 trillion financial sector.

Amid record-low banking industry margins and a sweeping anti-corruption drive, he's convening the twice-a-decade Financial Work Conference.

This closed-door meeting will chart the financial course for the next five years, reshaping China's economic landscape.

Government Seeks Bigger Dividends from State Firms

The government may ask state-run companies for bigger dividends if revenue falls short due to lower taxes or asset sales.

Special dividends from oil firms might also be considered, depending on crude prices.

The government will review earnings in September and December to determine the March quarter dividends.

With state-run companies posting strong profits, the government wants a larger share.

 

BUSINESS

GIFT City's Game-Changing Move for Indian Companies


What Happened

Imagine a place where Indian companies could directly list on foreign exchanges without the hassle of currency conversion and hedging.

Well, it's not just a daydream; it's on the brink of becoming a reality.

The International Financial Services Centre (IFSC) in Gujarat International Financial Tech (GIFT) City is gearing up for an exciting move. 

The official notification for Indian companies to directly list on foreign exchanges in this financial hub is just waiting for a final nod from the Prime Minister's Office (PMO).

Why it matters

GIFT City offers a fantastic advantage. All trades that happen here are in good ol' U.S. dollars.

No need to go through the hoops of converting currencies and hedging – it's a direct route to international trading.

In September 2023, the monthly turnover on IFSC international stock exchanges reached a whopping $67.3 billion.

Zoom out

In essence, this move could be a game-changer for India's financial landscape.

It simplifies the process of listing on foreign exchanges and opens up a world of possibilities for investors and businesses.

 

MIRCH MASALA