Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Despite a volatile session on May 27, where Sensex and Nifty hit record highs early on, the indices ended flat by the close. However, the realty and banking sectors stood out with notable gains.

BUSINESS

Demand for MGNREGA Skyrockets by 48.8% in April

What happened

The demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) witnessed a whopping 48.8% surge in April 2024 compared to February of the same year. Ministry of Rural Development data revealed that a staggering 301.8 lakh individuals sought employment through the scheme in April alone.

This surge was highlighted in the National Council of Applied Economic Research's monthly economic review. Interestingly, on a year-on-year basis, the demand increased by 3.9% in April this year.

Why it matters

The surge in demand for MGNREGA work reflects several underlying trends in India's employment landscape. Despite mixed employment indicators, such as the decline in All-India urban unemployment rates and increased hiring activities in sectors like travel, hospitality, banking, retail, and IT services, the rural job guarantee scheme remains a crucial safety net for many.

The heart of MGNREGA lies in its promise of guaranteed wage employment for 100 days in a financial year to rural households where adults are ready for manual work. This initiative, driven by demand, was born from a law passed by Parliament in August 2005 and implemented in February 2006. Over the past decade, it has become a lifeline for millions, generating an astounding 3 billion person-days of work last year alone.

Zoom out

The allocation for the scheme remains consistent at ₹ 86,000 crore for the FY25. With the Union government's ongoing efforts to improve transparency and efficiency in the scheme, such as digital attendance monitoring and Aadhaar-linked wage payments, MGNREGA stands poised to continue its significant impact on India's rural workforce and economy.

BIG MONEY MOVES

Timken Singapore divests 6.6% stake in Timken India for ₹1,775 crore

Timken Singapore Pte Ltd is planning to divest a 6.6% stake in Timken India Ltd, aiming to raise ₹1,775 crore ($213 million). The promoters are offering up to 5 million shares at ₹3,550 each, a 10.2% discount from Timken India's closing price of ₹3,951.5 on the NSE. Timken Singapore currently holds a 57.7% stake in Timken India, which manufactures anti-friction bearings and mechanical power transmission products.

This sale is following previous divestments, including a June 2023 sale of 7.6 million shares for ₹2,362 crore. 

Ontario Inc. plans to offload a 3.4% stake in Concord Biotech

Ontario Inc. plans to sell a 3.4% stake in Concord Biotech for ₹468.40 crore, leaving it with a 2% residual stake. The sale will have a floor price of ₹1,320 per share and a 90-day lock-in period for the remaining shares. Concord Biotech, backed by the Jhunjhunwala family, has seen a 53% increase in share value since its August 2023 IPO, despite being slightly down year-to-date. 

BUSINESS

JSW Energy Charges Ahead with  Green Energy Acquisitions

What happened

JSW Energy, a prominent player in the energy sector, has set its sights on expanding its footprint in the green energy space. Their subsidiary, JSW Neo Energy, recently made waves by acquiring 1,753 MW of renewable energy assets from Mytrah Energy. This move underscores JSW Energy's strategic shift towards sustainable energy solutions.

CFO and Director of Finance at JSW Energy, Pritesh Vinay, revealed that the company is currently evaluating multiple acquisition opportunities in the renewable energy sector. These potential deals, ranging from 500 MW to 3000-4000 MW each, have caught JSW Energy's attention as investors seek to offload their investments.

Why it matters

JSW Energy boasts a current renewable capacity of 7.3GW and aims to reach 10GW by FY25 and an impressive 20GW of renewable energy by 2030. These ambitious targets position JSW Energy as a frontrunner in the race towards green energy dominance.

To fuel this expansion, JSW Energy recently raised ₹5,000 crore through a qualified institutional placement of its shares. This substantial capital injection will primarily be allocated to bolstering the company's renewable energy business. Additionally, JSW Energy plans to invest ₹ 15,000 crore in FY25 to complete ongoing projects and secure power purchase agreements for upcoming ventures.

Zoom out

Additionally, JSW Energy's renewed focus on solar projects comes at a pivotal moment, reflecting a strategic response to changing market dynamics. By fast-tracking its solar plans and prioritising projects with promising returns, JSW Energy is showcasing a strong commitment to sustainable growth.

BIG PICTURE

🚢 India's engineering exports to Russia surge amid Ukraine conflict

In the midst of the Ukraine conflict and global sanctions, India's export landscape has seen a notable transformation. According to reports, there has been a significant uptick in India's exports to Russia, particularly in engineering goods, machinery, machine parts, and aircraft spares. 

India and Russia have a substantial trade relationship, with total trade estimated at $65.7 billion. However, this relationship has resulted in India facing a significant trade deficit with Russia, second only to China.

🇨🇳 China launches $48 billion fund to counter U.S. restrictions

China has introduced a massive $48 billion fund to boost its semiconductor industry and build a local supply chain, countering U.S. efforts to limit its access to advanced chips and manufacturing equipment. The new fund, the largest in China's history, is the third phase of the China Integrated Circuit Industry Investment Fund and doubles the amounts raised in 2014 and 2019.

The fund, registered last Friday, is led by China’s Ministry of Finance with a 17% stake. Chinese chip companies, aiming to achieve self-sufficiency, are set to start 18 new projects this year, increasing their chip-making capacity by 12%.

BUSINESS

Indian Drugmakers Poised for Revenue Boost in the US Market

What happened

Indian pharmaceutical giants like Dr Reddy's, Cipla, and Sun Pharma are set to experience a revenue surge in the fiscal year 2025, thanks to ongoing drug shortages in the crucial U.S. market. According to insights from India Ratings and Research(IRR), these companies are expected to capitalise on the challenges faced by U.S.-based generic pharmaceutical manufacturers, paving the way for enhanced financial performance and a larger market share in key therapeutic segments.

Why it matters

The United States, known as the world's largest drug market, is grappling with its highest level of drug shortages in a decade. This scarcity, currently impacting 233 drugs across 22 therapeutic categories, is primarily due to discontinued production, heightened demand, and shipment delays, as per data from the Utah Drug Information Service and the U.S. Food and Drug Administration.

IRR pointed out that Indian generic players experienced strong financial achievements in fiscal year 2024. Lower raw material costs and pricing stability were cited as key factors contributing to their success. Notably, companies like Dr Reddy's saw a 29% surge in North American sales, while Cipla experienced an 11% revenue uptick from the region, indicating a positive trend for the industry.

Zoom out

Regulatory costs and complex drug application processes are worsening drug shortages in the U.S. market. However, looking forward, the outlook for Indian drugmakers is positive. Expectations include new launches in the U.S. market and an anticipated decrease in price erosion, which had previously impacted margins. 

MIRCH MASALA

👕 50+ outrageously funny t-shirts you won’t believe people actually wore
💊 Chinese scientists develop diabetes cure, patient medication-free in 3 months.
🙂 Hardik Pandya's surprising revelation on the realities of marriage with Natasa Stankovic
👢 Louis Vuitton's newest boots bring ostrich vibes
🐯 Tiger clan captured on film hydrating at Jim Corbett Reserve amidst intense heatwave (watch video)