Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian benchmark indices hit record highs and closed in the green in a volatile session on April 4, ahead of the RBI policy announcement. The market opened a gap-up at record highs, with Sensex touching 74,501.73 and Nifty at 22,619, but lost the gains in early trading hours.

BUSINESS

Centre Court Capital: ₹350 Crore Tech and Gaming Fund

What happened

Former CEO of JSW Sports, Mustafa Ghouse, and former investment director of TVS Capital, Alok Samtaney, have launched a ₹350 crore sports tech and gaming fund named Centre Court Capital (CCC). The fund has already secured ₹200 crore from investors, including top athletes and corporate investors like the Sajjan Jindal Family Trust, Sidbi, PremjiInvest, USK Capital, GMR Sports, and SG Sports.

CCC, being a SEBI-registered category-II alternative investment fund, plans to launch an offshore feeder fund in Gift City to attract international investors.

Why it matters

This initiative is significant as it taps into the booming sports tech and gaming sectors in India. 

• India is home to 396 million gamers, the second-largest population globally.
  
  

• The gaming sector is projected to grow at a five-year CAGR of 21%.

CCC aims to focus on early-stage opportunities in sports tech, earmarking ₹824 crore per investment, with a substantial portion reserved for follow-on investments. This move aligns with the growing trend of tech-driven sports consumption and positions CCC as a key player in fostering innovation and growth in these sectors.

Zoom out

Centre Court Capital's launch of a sports tech and gaming fund reflects the increasing interest and investment in India's sports and gaming industries. Backed by experienced founders and investors, CCC is poised to drive innovation, support startups, and contribute to the evolution of how sports and gaming are played and consumed in India and globally.

BIG MONEY MOVES

India's PLI scheme boosts manufacturing with $1 billion incentives

India's production-linked incentive (PLI) scheme, valued at $24 billion, has provided over $1 billion in incentives to drive local manufacturing, drawing significant investments since its inception in 2020. This initiative, covering 14 sectors, has garnered participation from major global players like Apple, Samsung Electronics, and Reliance Industries, aligning with PM Modi's vision to elevate India as a premier manufacturing destination.

Notably, mobile phone exports surged to a record $15 billion, showcasing the scheme's positive impact on boosting exports and domestic production.

Indosol Solar to complete ₹15,000 crore solar module unit by 2025

Indosol Solar, a subsidiary of the SSEL Group, is targeting the completion of the first phase of its extensive solar module project in Andhra Pradesh by 2025. This phase involves an investment of ₹15,000 crore to establish capacities for 5 gigawatts (GW) each of modules, wafers, ingots, and glass at a new facility near the Ramayapatnam port in Nellore.

Phase 1, which commenced module production in March with an initial investment of ₹1,300 crore for 500 megawatts (MW) capacity, is progressing as per schedule. The overall project encompasses 30 GW of upstream capacity and 20 GW of downstream capacity. 

BUSINESS

Vedanta's Stock Surges as Board Approves ₹2,500 Crore Fundraising Plan

What happened

Vedanta Ltd's stock surged over 3% to reach a new 52-week high of ₹312.50 on the Bombay Stock Exchange (BSE) after the company's board approved a fundraising plan of ₹2,500 crore through debt securities. This fundraiser will be conducted via the issuance of non-convertible debentures on a private placement basis, as announced by the board in its meeting earlier today.
 

Why it matters

The approval of Vedanta's fundraising plan signifies a strategic move by the company to strengthen its financial position and support its ongoing operations and expansion initiatives. 

• Vedanta has undertaken fundraising activities through non-convertible debentures three times in fiscal year 2024, with the most recent round in December last year amounting to ₹3,400 crore. 
  
  

• However, the company's net debt rose to ₹62,493 crore as of December 31, 2023, from ₹57,771 crore.

This fundraising activity is part of Vedanta's regular financing and refinancing efforts, reflecting its commitment to financial management and growth strategies. The positive response from investors, as seen in the stock's upward movement, indicates confidence in Vedanta's plans and prospects.

Zoom out

Vedanta's stock reaching a 52-week high following the board's approval of a ₹2,500 crore fundraising via debt securities highlights investor optimism and positive market sentiment towards the company. This development coincides with another positive announcement from Vedanta:

• The miner reported a 4% increase in total aluminium production to 5,98,000 tonnes in the fourth quarter of FY24.
  
  

• Alumina production at the Lanjigarh refinery unit in Odisha rose by 18% to 4,48,000 tonnes due to improved operational performance.

BIG PICTURE

🎖️ Microsoft and Quantinuum mark a milestone in quantum computing

Microsoft and Quantinuum have announced a major step forward in making quantum computers a commercial reality. This breakthrough involves enhancing the reliability of quantum computing systems, a crucial aspect in the ongoing race among tech giants like Microsoft, Google, and IBM to harness the power of quantum mechanics for unprecedented computational speeds.

Quantum computers hold the promise of revolutionizing computing by leveraging quantum mechanics to perform calculations exponentially faster than traditional silicon-based computers. 

🛫 Malaysia Airlines and IndiGo Forge Codeshare Partnership

Malaysia Airlines and IndiGo have entered into an initial agreement for a codeshare partnership (an agreement to sell seats on each other’s flights), aiming to enhance connectivity between Malaysia and India. This collaboration, facilitated by a cooperation agreement, will offer customers more options and flexibility for seamless travel.

Under this partnership, Malaysia Airlines will strengthen its ties with India by becoming the marketing carrier for IndiGo-operated flights. On the other hand, IndiGo customers will gain access to a broader range of Southeast Asia destinations through Malaysia Airlines' extensive network.

BUSINESS

Income Tax Notice Hits Hero MotoCorp Amid Sales Surge

What happened

Hero MotoCorp, the world's largest two-wheeler manufacturer, faced a significant development as the Income Tax Department issued a demand notice of ₹605 crore, inclusive of interest, spanning six assessment years from FY14 to FY18 and FY20. This notice stemmed from assessment orders and demand notices dated March 30, 2024, that the company received on April 3, 2024, according to an exchange filing.

Why it matters

The demand notice of ₹605 crore, comprising ₹308.65 crore in taxes and ₹296.22 crore in interest, pertains to certain disallowances noted by the Income Tax Department for the mentioned assessment years(FY14, FY15, FY16, FY17, FY18 and FY20). Hero MotoCorp is currently evaluating these orders and notices and intends to take appropriate actions, which may include filing appeals and rectification applications.

The company's management views the demand as unsustainable and unlikely to stand legal scrutiny, as indicated in the exchange filing.

Zoom out

While facing this tax demand notice, Hero MotoCorp continues to maintain its operational momentum, reporting a 5.5% growth in total sales for the fiscal year 2023-24 compared to the previous year. The company sold 56,21,455 units during this period, with motorcycle sales reaching 51,90,672 units and scooter sales at 430,783 units.

Domestic sales saw an uptick, standing at 54,20,532 units, while exports also increased to 2,00,923 units. Hero MotoCorp's ability to navigate these tax challenges while sustaining sales growth underscores its resilience and strategic position in the two-wheeler market.

MIRCH MASALA

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