Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: 

Bulls and bears engaged in minor clashes, leaving the market indecisive, but the overall sentiment stayed positive with the index above the short-term moving average. The absence of significant stimulus from China and concerns over US Fed rate cuts led to underperformance in mid and small-cap stocks along with sustained losses in the IT sector.

BUSINESS

Swiggy Joins Forces with IRCTC for Onboard Feasts

What happened

In a delightful twist for Indian train travellers, food delivery giant Swiggy has hopped on board the Indian Railway Catering and Tourism Corp (IRCTC) wagon to deliver pre-ordered meals. The tasty partnership kicks off at four major railway stations - Bangalore, Bhubaneswar, Visakhapatnam, and Vijayawada.

The partnership, sealed with a Memorandum of Understanding (MoU), means Swiggy will weave its culinary magic by delivering meals from its expansive restaurant network to passengers on select trains. 

Why it matters

For the 8 billion passengers that ride the Indian Railways annually, Swiggy and IRCTC are serving up a solution to a common woe - the monotony of train food. Swiggy's statement captures the essence: "Transforming travel into a convenient and delightful culinary experience."

IRCTC, no stranger to such collaborations, previously joined hands with Zomato. However, this flavorful competition is a win for passengers, as Swiggy's extensive reach and diverse restaurant options promise an upgraded journey. The delivery will be facilitated through IRCTC’s e-catering portal, making it a seamless experience for travellers.

Zoom out

As passengers eagerly await their onboard feasts, Rohit Kapoor, CEO of Food Marketplace at Swiggy, hinted at the venture being an exploratory step. He emphasized Swiggy's commitment to consumer value, leaving the door open for potential expansions, even hinting at the intriguing prospect of involving Swiggy Instamart, the quick-commerce service.

BIG MONEY MOVES

Byju's $533 million fund transfer sparks legal battle with lenders

Byju's, the ed-tech company, moved $533 million away from Camshaft Capital Fund to its non-US subsidiary, Inspilearn. This shift upset lenders, who claimed it breached the loan terms, leading to legal action. The move follows disputes and allegations, potentially leading to legal consequences for Camshaft founder William Morton. However, Byju has clarified that the funds are still within their control amid disputes and legal concerns.

Greenko bolsters hydro portfolio with ₹1,000 crore Sikkim project acquisition

Greenko, backed by GIC Holdings Pte Ltd, Abu Dhabi Investment Authority, and Japan's ORIX Corp, has successfully acquired the 110-megawatt Chuzachen hydroelectric project in east Sikkim from GI Hydro. The enterprise value of ₹1,000 crore encompasses an equity value of ₹300 crore, marking another significant addition to Greenko's extensive renewable energy portfolio.

The Hyderabad-based company, already operating the 96 MW Dikchu hydro-electric project in Sikkim, further solidifies its position in the hydro projects segment, boasting a total operating capacity of 1,789 MW across 25 projects.

BUSINESS

Antfin Considers Offloading Zomato Stake in Block Transaction

What happened

Antfin Singapore Holdings Pte, a subsidiary of China-based Ant Group, is reportedly gearing up to shed up to 2% of its stake in Zomato, one of India's leading food delivery platforms. This bold manoeuvre is set to involve a whopping 17.64 crore shares and is anticipated to rake in a colossal ₹2,800 crore through a carefully orchestrated block deal.

The deal, characterized by a floor price of ₹159.4 per share, marks a shrewd 4% discount compared to Zomato's prevailing market value.

Why it matters

Zomato's recent rollercoaster ride on the stock market has been nothing short of exhilarating. Just last Friday, the company's shares scaled new heights, surging by nearly 5% to reach ₹173.5, propelled by a promising uptick in profitability that hints at a prosperous future.

With a market capitalisation exceeding ₹1.51 trillion, Zomato has cemented its status as the most valuable internet stock in India.

•  The food delivery giant reported a commendable consolidated net profit of ₹138 crore in Q3 of 2023, showcasing accelerated growth in quick commerce and a steadfast performance in its core business.
  
  

•  This remarkable turnaround follows a consolidated net loss of ₹347 crore in the same quarter of the previous fiscal year.

Zomato's Q3 financials reveal a consolidated revenue from operations amounting to ₹3,288 crore, a substantial increase from ₹1,948 crore in the corresponding period a year ago. Despite higher total expenses at ₹3,383 crore, compared to ₹2,485 crore in the previous fiscal, the company seems to be navigating towards fiscal resilience.

Zoom out

As the curtain rises on Antfin's potential stake sale in Zomato, market enthusiasts eagerly anticipate the unfolding saga. Zomato's strategic positioning as a leader in India's booming food delivery sector, coupled with its resilient financial performance, adds an intriguing layer to this financial chess game. The block deal, marked by its meticulous floor price, invites investors to speculate on the future trajectory of both Zomato and Antfin.

BIG PICTURE

🤝 Nokia and Sterlite Technologies unite for Government and enterprise digital advancements

Nokia has joined forces with Sterlite Technologies (STL) to boost networking and digital solutions for government bodies and businesses. This collaboration aims to enhance connectivity and networking solutions for government-driven projects. The partnership focuses on Industry 4.0 advancement, providing enterprises with a competitive edge through disruptive technologies.

Together, Nokia and STL aim to redefine enterprise connectivity in India, leveraging Nokia's expertise in 5G and IoT and STL's extensive experience in connectivity solutions.

😥 SBI Pension Fund faces $50 billion dilemma amid rising yield challenges

India's SBI Pension Funds, managing assets worth $50 billion, is considering corporate bonds due to narrowing spreads on longer-maturity government bonds. Chief Investment Officer Sandeep Pandey highlights the increased demand for longer-tenor papers, with spreads between 10-year and 30-year bonds shrinking to six basis points.

SBI Pension aims to explore alternatives, including corporate bonds or state debt, to optimize returns for subscribers amid changing market dynamics.

BUSINESS

BYD Revs Up in India with High-Range SEAL Electric Sedan Debut

What happened

China's EV giant, BYD, has set its sights on India once again, unleashing the all-new performance electric sedan SEAL with a starting price of ₹41 lakh. The Seal boasts an impressive range of up to 650 km for its top-end rear-wheel drive model, making waves in the Indian EV market. This move follows setbacks in 2023 that caused BYD to miss its sales targets, prompting a strategic re-entry into India's electric vehicle scene.

Why it matters

After facing challenges, including failure to secure homologation for the Atto 3 SUV and navigating tightened foreign investment rules, BYD aims for a revival. Sanjay Gopalakrishnan, BYD India's Senior VP, notes the company's dominance in the ₹30 lakh and above EV segment, outperforming competitors like Kia, Hyundai, Volvo, BMW, and Mercedes. 

The Seal's introduction enhances BYD's premium portfolio, positioning itself as a global competitor to Tesla's Model 3. With plans for local assembly pending approvals, BYD navigates the Indian market differently than Tesla, maintaining a focus on technology superiority.

The company will try to remain unfazed by upcoming domestic competition, asserting BYD's technological edge and confidence in product features and practical range, a vital consideration for customers. Despite the hurdles, BYD shipped 2,038 vehicles in 2023, featuring models like the e6 and Atto 3.

Zoom out

BYD, acronymized as Build Your Dreams, envisions a robust future in India's EV landscape, aiming to capture 40% of the market by 2030. While refraining from immediate market share targets, BYD's long-term strategy aligns with its global standing as the world's largest EV maker. With ongoing partnerships like the one with Olectra Greentech, BYD intertwines dreams with reality, heralding an exciting phase in India's electric journey.

MIRCH MASALA

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