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Tata Power Rises 4% on ₹4,500 Crore Deal with NTPC!
Equities, Market News - April 16, 2025

Tata Power Rises 4% on ₹4,500 Crore Deal with NTPC!

Tata Power Rises 4% on ₹4,500 Crore Deal with NTPC!

Tata Power Renewable Energy’s 200 MW agreement with NTPC boosts investor confidence and aligns with India’s clean energy vision.

Tata Power jumps after NTPC deal.

Mumbai, India – Tata Power shares rallied nearly 4% in early trade after its renewable energy subsidiary, Tata Power Renewable Energy Limited (TPREL), clinched a massive Rs 4,500 crore order from NTPC. The deal, confirmed through a regulatory filing on Tuesday, involves a 25-year Power Purchase Agreement (PPA) with NTPC Vidyut Vyapar Nigam Ltd (NVVNL), a wholly owned subsidiary of NTPC Limited. The agreement is for the supply of 200 MW of firm and dispatchable renewable energy, a significant step forward in India’s clean energy mission.

A Major Win in India’s Green Transition

This contract marks a crucial milestone in TPREL’s journey, underscoring its leadership in the renewable space and aligning perfectly with India’s ambitious goal of reaching a capacity of 500 gigawatts (GW) from non-fossil fuel sources by 2030. The project entails integrating solar, wind, and energy storage systems, ensuring a stable and consistent renewable energy supply. According to the company’s filing, the project is expected to be completed within 24 months, contributing to NTPC’s commitment to increase its renewable energy footprint.

Investor Confidence Soars as Tata Power Climbs

The announcement of the deal had an immediate and favorable impact on Tata Power’s share prices. The company’s shares rose more than 4% intraday on the BSE, demonstrating robust investor confidence. The market reacted positively due to the size of the order and the increasing relevance of dispatchable renewable energy in balancing grid demand, a segment that’s becoming increasingly critical in India’s evolving energy infrastructure.

Strategic Importance of Dispatchable Renewables

What sets this deal apart is the emphasis on firm and dispatchable renewable energy—a category where energy generation can be controlled or scheduled based on demand. Unlike traditional solar or wind projects that depend on weather conditions, dispatchable renewables incorporate energy storage solutions such as batteries, providing power even when the wind isn’t blowing or the sun isn’t shining. This flexibility is vital in supporting grid stability and accelerating India’s transition to a more sustainable power mix.

Tata Power’s Expanding Renewable Portfolio

Tata Power, through TPREL, has been aggressively expanding its renewable portfolio, with operational capacity surpassing 4.1 GW and an additional 3.5 GW under implementation. This latest deal is a testament to its focus on integrated energy solutions combining solar, wind, and battery storage. Earlier this year, the company signed several agreements with state governments and private players, positioning itself as a frontrunner in India’s clean energy landscape.

NTPC’s Role in Powering Green Growth

NTPC, India’s largest energy conglomerate, has strategically pivoted toward renewable energy. With plans to install 60 GW of renewable capacity by 2032, the company has been actively partnering with private sector players to fulfil its clean energy agenda. This collaboration with Tata Power reflects NTPC’s strategy of creating reliable and environmentally sustainable energy assets, contributing to India’s energy security and net-zero ambitions.

Market Analysts Predict Further Upside

Following the announcement, several brokerage houses issued bullish outlooks on Tata Power, citing the large deal size, positive implications on revenue visibility, and strong execution capabilities. Analysts expect further re-rating of the stock as Tata Power continues to secure similar high-value contracts in the renewable space. Additionally, the deal could boost the company’s EBITDA margins, given the high-value nature of dispatchable renewable projects.

Looking Ahead: A Green Future for Tata Power

As India intensifies efforts to decarbonise its economy, companies like Tata Power are anticipated to play a crucial role in developing the future energy landscape. With robust technical expertise, scalable infrastructure, and a clear strategic direction, Tata Power capitalises on immediate opportunities and builds a long-term foundation for sustainable growth.
This Rs 4,500 crore order is more than just a commercial win—it symbolises India Inc.’s readiness to embrace innovation and sustainability in equal measure. As the world watches India’s green energy journey unfold, Tata Power stands tall as one of its strongest pillars.

 

 

 

 

 

 

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Swiggy Launches ‘Pyng’ App to Address Unmet Demand for Professional Services

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Decentro Secures ₹30 Crore to Power Fintech Innovation
Business, Market News - April 15, 2025

India's Fintech Journey: Progress and Future Ahead

India’s Fintech Journey: Progress and Future Ahead

 

Introduction: A Decade of Progress, A Century of Potential

India’s fintech sector has evolved dramatically in the past decade, with digital wallets, UPI, and instant loans transforming how citizens interact with money. Yet, according to MobiKwik cofounder Upasana Taku, the journey is only beginning. In a recent interview, she emphasized that while India has achieved foundational digital infrastructure, only 10% of the population uses multiple financial products. This signals that a vast, untapped opportunity remains to democratize access to savings, insurance, credit, and investments for the broader population.

Digital Payments: The First Frontier of Financial Transformation

Taku highlighted how digital payments became the entry point for many Indians into the formal financial system. The surge in UPI transactions and wallet usage—especially post-demonetization and during the COVID-19 pandemic—laid the groundwork for fintech growth. MobiKwik, once known predominantly for wallet-based payments, has expanded into BNPL (Buy Now, Pay Later), insurance distribution, credit lines, and merchant payments. However, she notes that financial services penetration is still shallow, and multi-product adoption is essential to unlock long-term sectoral value.

A Vision for 10X Growth: Diversification and Depth

Looking ahead, Taku expressed confidence in achieving tenfold growth in the next few years by moving beyond just payments. MobiKwik’s roadmap includes a deeper push into personal finance, including digital lending, wealth management, small-ticket insurance, and embedded finance solutions. As the company scales, the goal is not just user acquisition but increasing wallet share per customer by becoming a one-stop shop for all things finance. In her view, consumer trust, intelligent product bundling, and real-time credit risk models will define the next wave of fintech innovation.

Profitability Over Growth-at-Any-Cost

In a break from the earlier startup mindset that prioritized user growth over profitability, Taku emphasized that MobiKwik is now focused on unit economics and sustainable profitability. As macroeconomic pressures such as inflation and global rate hikes challenge consumer spending, and regulatory tightening by the RBI increases compliance costs, only financially sound companies will thrive. She sees this as an opportunity to build with resilience, as investors now seek innovation, monetization clarity, and disciplined execution.

Regulatory Landscape: Challenge and Catalyst

The RBI has been increasingly active in shaping the fintech space, introducing frameworks around digital lending, data privacy, KYC norms, and account aggregators. While some players view regulations as a barrier, Taku considers them a necessary filter to separate serious fintech builders from opportunistic entrants. She calls for more dialogue between the industry and regulators to balance innovation and consumer protection. Taku notes that India’s success in fintech will depend on an inclusive, transparent, and compliant ecosystem.

Enhancing Access to Financial Products: Inclusion is the Next Key Progress

Taku stressed the need for financial inclusion beyond metro cities, pointing out that Tier 2, 3, and 4 towns still lack access to basic financial products. She believes that language localization, simple interfaces, and AI-driven customer support are crucial to onboarding the following 300 million users. Moreover, partnerships with NBFCs, banks, and local retailers can be powerful enablers to reach India’s underbanked population. She envisions the fusion of financial technology and regional advancements as a driving force behind the breakthroughs of the coming decade.

The Road Ahead: Collaboration, Innovation, and Impact

India asserts that the fintech sector, already among the largest in the world by transaction volume, is entering a more mature and mission-driven phase. She envisions a future where fintech simplifies daily transactions and empowers individuals with economic agency, digital credit history, and access to growth capital. Collaboration with regulators, traditional banks, and technology startups will be key to building a decentralized, secure, and inclusive financial ecosystem. The race is no longer about scale alone—it’s about impact, trust, and transformation.

Conclusion: A Country of a Billion Wallets and Billions of Dreams

India’s fintech journey, while impressive, is still in its adolescence. As Upasana Taku rightly points out, building for Bharat—the broader, diverse, and ambitious population—is the next great challenge and opportunity. MobiKwik and similar companies are leading the way as digital platforms and in promoting financial dignity. The path ahead will require courage, compliance, and creativity, but if done right, India could become the most inclusive fintech ecosystem in the world.

 

 

 

 

 

 

 

 

 

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CSL Strategizes to Shield Lifesaving Therapies from Tariff Impacts

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Technical Glitch Shields China from New Tariffs
Economy, Market News - April 15, 2025

Technical Glitch Shields China from New Tariffs

Technical Glitch Shields China from New Tariffs

 

Introduction: A Glitch with Global Consequences

In a remarkable twist of geopolitical and economic fate, a newly surfaced report has confirmed that China was inadvertently spared from a fresh wave of US tariffs due to a 10-hour-long technical glitch that disabled tariff enforcement systems at major American ports. The disruption, which occurred during a critical implementation window, effectively delayed the application of tariff adjustments that had been publicly announced just days prior. The incident, while brief, demonstrates the immense influence of digital infrastructure on global trade and highlights the fragility of economic enforcement mechanisms in the modern era.

The Incident: What Happened at the Ports?

The International Trade Systems Review Board (ITSRB) report stated that the glitch occurred across key US customs and port-of-entry software systems from 2:00 AM to 12:00 PM EST when the new tariffs are set to take effect. During this timeframe, customs agents could not update tariff codes or enforce rate changes on incoming cargo, particularly shipments from China. Consequently, several large shipments entered the country at previous duty rates, circumventing the intended increase in import costs.

The Policy Backdrop: Trump’s Tariff Push

The now-missed tariffs were part of a broader economic policy by former President Donald Trump, who had recently reintroduced aggressive tariff measures on goods from various nations, excluding China from exemptions. The move aimed to pressure Beijing amid ongoing tensions regarding trade imbalances, intellectual property theft, and supply chain dependencies. This latest set of tariffs was expected to cost Chinese exporters an estimated $500 million in added duties per week. However, the glitch has resulted in a delay that could cost the US Treasury millions in unrealised revenues and reduce the intended economic pressure on China.

China’s Silent Windfall

Despite the Biden administration’s attempt to distance itself from the more extreme elements of Trump-era protectionism, several tariffs remained in place and were recently intensified. While there has been no official comment from the Chinese government, trade analysts argue that the glitch inadvertently gave China a brief but meaningful financial reprieve. For Chinese exporters, this window allowed high-volume goods such as electronics, textiles, and industrial components to bypass newly heightened import fees, albeit temporarily increasing their competitiveness in the US market.

US Response: Acknowledgment but No Accountability

US Customs and Border Protection (CBP) acknowledged the disruption in response to growing scrutiny. Still, they labelled it a “technical irregularity,” refusing to speculate whether it resulted from system overload, human error, or a potential cyber incident. While an internal investigation is ongoing, CBP confirmed that the impacted systems were fully restored by mid-afternoon, and all pending tariff updates were retroactively applied. However, the government has clarified that retroactive enforcement of the missed tariffs is unlikely due to the complexity and legality surrounding such adjustments.

Implications for Future Trade Enforcement

This event has raised concerns among government officials and trade specialists about the resilience and dependability of the United States’ digital commerce systems. Officials are advocating for a thorough examination of port cybersecurity measures and system redundancy strategies to mitigate the risk of future disruptions. Moreover, the glitch has ignited a broader conversation about the increasing reliance on automated enforcement systems in global commerce and the potential national security risks posed by such vulnerabilities.

Market Impact and Stakeholder Reactions

The temporary exemption has also rippled through financial markets. Shares of US-based logistics and import-heavy retailers briefly surged on the news, while domestic manufacturing stocks faced slight pressure due to the continued presence of cheaper Chinese alternatives. Economists suggest that while the glitch’s long-term impact on macroeconomic indicators may be minimal, it is a poignant reminder of how real-time digital systems now wield geopolitical significance.

Conclusion: A Warning from the Wires
The 10-hour technical glitch at US ports may seem like a fleeting digital hiccup, but its implications echo loudly across international trade and policy enforcement. In an age where economic strategy is as reliant on lines of code as on lines of legislation, this incident serves as both a warning and a wake-up call. As the US continues to navigate a complicated trade relationship with China, ensuring that its digital enforcement tools are as resilient as its diplomacy is now more critical than ever.

 

 

 

 

 

 

 

 

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ECB Closes the Door: What It Means for Asset Management M&A

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Vishnu Prakash R Punglia Promoters’ Stake Sale: A Strategic Step to Enhance Liquidity
Business, Market News - April 15, 2025

KPMG US and UK units buy 33% stake in India’s KGS for $210 million

KPMG US and UK units buy 33% stake in India’s KGS for $210 million

KPMG’s Strategic Restructure: U.S. and U.K. Arms Acquire One-Third Stake in KGS India
KPMG’s US and UK divisions have jointly acquired a 33% stake in KPMG Global Services (KGS) India for $210 million as part of their strategy to optimize global operations. This deal marks a significant shift in KPMG’s approach to overseeing its service delivery unit in India, highlighting India’s rising prominence as a hub for international operations.

Understanding What KGS India Does

KPMG Global Services (KGS) India was launched in 2008 and functions as a shared services platform supporting KPMG’s global network. Spread across major Indian cities such as Gurugram, Bengaluru, and Hyderabad, KGS plays a key role in enabling KPMG to provide high-quality services worldwide. With over 7,000 professionals, KGS helps deliver functions related to audit, tax, consulting, risk management, and IT support to more than 50 member firms in the KPMG global network.

Over the years, KGS has become essential to KPMG’s back-end operations, offering efficient and cost-effective services thanks to India’s rich talent pool and advanced tech ecosystem. It helps KPMG’s member firms focus more on client-facing tasks while KGS takes care of critical support work.

Details of the $210 Million Stake Purchase

Earlier, ownership of KGS was split equally among KPMG India, the United States, and the United Kingdom, with each holding a 33% share. With this new acquisition, the U.S. and U.K. firms have taken full control of 66%, buying out KPMG India’s stake completely. The deal simplifies the ownership model and gives the American and British firms more centralized authority over how KGS operates going forward.

This kind of ownership restructuring is rare among the Big Four firms and reflects KPMG’s intent to align global operations more closely with the needs of their two largest markets. With only two major stakeholders involved, decisions around technology investments, client services, and workforce planning can now be made faster and with fewer internal hurdles.

Impact on KPMG India

KPMG India’s decision to relinquish its stake in KGS has resulted in a substantial cash inflow of $210 million. This money can be used to strengthen local operations, invest in talent, or develop new services. However, stepping back from ownership also means losing direct influence over KGS’s future direction. The Indian unit will now act more like a client to KGS rather than a joint owner.

This change may also affect internal coordination and decision-making. With the U.S. and U.K. now steering KGS’s direction, there could be shifts in leadership, management style, and even service priorities. Although current operations are anticipated to stay steady, adjustments in workflow and reporting frameworks might develop over time.

India’s Importance in KPMG’s Future

Despite giving up ownership in KGS, India remains a core part of KPMG’s global strategy. The country continues to attract investment due to its strong workforce, technology ecosystem, and cost advantages. KPMG has already announced plans to increase hiring, open more offices, and deepen its presence in India.

The acquisition signals that the U.S. and U.K. arms of KPMG see even greater value in India’s potential and want to maximize that by having direct control over operations. With India being central to global delivery, KPMG is expected to expand its training programs, invest in AI and digital services, and modernize its infrastructure across the country.

Plans for a Larger Advisory Merger: Project Himalaya

While the KGS acquisition is major news in itself, KPMG is also working on an even bigger initiative. Referred to as “Project Himalaya,” this internal project aims to merge the advisory divisions of KPMG in the U.S., U.K., and India into one unified global practice.

If this merger materializes, it would bring together over 50,000 employees across these three regions, creating one of the largest advisory teams in the professional services sector. The move would enable the firm to offer more seamless, cross-border consulting and technology services. It would also help KPMG better compete with rivals like Deloitte and Accenture by building deeper expertise and a more integrated approach to problem-solving.

What Lies Ahead

This acquisition signifies a pivotal shift in KPMG’s approach to its global service delivery framework. With tighter control over KGS and a potential advisory merger on the horizon, the firm is clearly preparing itself for the next decade of professional services – one where speed, efficiency, and innovation will be more important than ever.

KPMG’s bet on India remains strong. The country will continue to be a powerhouse for the firm’s support functions and future innovations. The ownership changes are less about reducing India’s role and more about aligning it more tightly with international strategy.

 

 

 

 

 

 

 

 

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Japan’s Stock Futures Rally: The Impact of US Trade Relations

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MRF Shares Soar Above ₹1.5 Lakh, Reaching a 52-Week Peak!
Market News, Markets - April 15, 2025

Japan's Stock Futures Rally: The Impact of US Trade Relations

Japan’s Stock Futures Rally: The Impact of US Trade Relations

Japan’s equity futures rose early Monday after a positive shift in US trade policy toward electronic goods sparked optimism across the Asian markets. Following the Trump administration’s temporary exemption of certain tech products from steep reciprocal tariffs, futures linked to Japan’s benchmark Nikkei 225 reflected renewed investor confidence—particularly in chip-related shares.

Nikkei Futures Rally on Chicago Exchange

The Nikkei 225 Stock Average futures on the Chicago Mercantile Exchange were recorded at 33,995 as of 7:21 a.m. Tokyo time. That marked an increase of approximately 1.2% over Friday’s closing value for the underlying index. The gain suggests that Tokyo’s equity market could open on a stronger note, buoyed by the easing of immediate tariff concerns.

Chip Stocks in Focus as Tariff Exemptions Roll Out

Technology and semiconductor firms are expected to see notable activity during the trading day. shares of businesses like Tokyo Electron Ltd. may experience upward momentum, spurred by Washington’s decision to exempt products like smartphones, computers, and other consumer electronics from its newly proposed tariff framework.
Although US President Donald Trump later clarified that tariffs may still eventually apply, the current suspension offers breathing room for global tech firms—including major US players like Apple Inc. and Nvidia Corp.—who were at risk of facing dual penalties: a hefty 125% levy on China-linked imports and an across-the-board 10% tariff on global shipments.

Market Reaction Mixed but Hopeful

Despite the uncertainty surrounding the future of tariffs, market strategists believe the latest development could temporarily steady market nerves.
Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab, stated that although worries about tariffs are still there and the market might not rise significantly, it might at least indicate a reversal. His comments reflect cautious optimism that markets may now have room to consolidate or modestly rebound, especially in sectors previously under pressure from escalating trade rhetoric.

Trade Talks on the Horizon: Japan Takes Diplomatic Lead

According to sources, Ryosei Akazawa, Japan’s top trade official, is expected to travel to Washington this week for discussions with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.
This round of talks could prove vital in shaping the next phase of Japan-US economic relations, particularly as both countries navigate the broader global realignment driven by US-China tensions.

US Broadens Strategy Across Asia

While the tariff pause offers some short-term relief, Washington’s larger trade strategy continues to evolve. According to Politico, President Trump is currently engaged in high-level trade discussions not just with Japan but also with South Korea—both key regional allies and significant players in the global technology supply chain.
These negotiations are viewed as part of a broader effort to realign US trade partnerships in a way that reduces economic dependence on China while reinforcing ties with strategic partners in the Asia-Pacific region.

Tariff Uncertainty Lingers Despite Temporary Relief

Even with the positive momentum in Japanese futures, the market outlook remains clouded by longer-term uncertainty. President Trump’s tariff policy has shown a pattern of reversals and unpredictability, leaving global investors hesitant to fully commit to bullish bets. The possibility that exempted products may soon return to the tariff list continues to cast a shadow over the tech sector’s near-term prospects.

Final Thoughts: Short-Term Optimism Meets Long-Term Caution

While Japan’s stock futures suggest a buoyant start to the week, the broader picture remains nuanced. The temporary tariff relief has created an opening for chip-related stocks to recover and offers a sense of diplomatic progress. However, with ongoing trade negotiations and the ever-present possibility of policy reversals from the US administration, investors are likely to proceed with a blend of cautious optimism and tactical positioning.
As Japanese officials prepare for trade talks in Washington, markets will be watching closely—not just for outcomes, but for any signs that the fragile trade détente could either solidify or unravel in the weeks to come.

 

 

 

 

 

 

 

 

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SBI’s UPI Platform: High Failure Rates Raise Red Flags for Investors

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Navigating the New FDI Landscape: ITC's Strategic Advantage
Market News, Markets - April 15, 2025

Navigating the New FDI Landscape: ITC's Strategic Advantage

Navigating the New FDI Landscape: ITC’s Strategic Advantage

 

 

Recent clarification in the FDI policy permits companies in restricted sectors to allot bonus shares to foreign investors, enhancing market confidence for firms such as ITC.

Government Revises FDI Rules for Prohibited Sectors

In a move aimed at offering greater flexibility to companies operating in sectors where Foreign Direct Investment (FDI) is restricted, the Indian government has eased regulations allowing bonus shares to be issued to existing foreign shareholders. This step is expected to benefit entities like ITC Ltd, where British American Tobacco (BAT) holds a significant stake.
The Department for Promotion of Industry and Internal Trade (DPIIT) recently issued a clarification that allows companies in FDI-prohibited industries to issue bonus shares to their foreign stakeholders, provided that such actions do not lead to an increase in the foreign investors’ ownership percentage.

How ITC Could Benefit

ITC Ltd, a major player in India’s tobacco sector, falls under the category of businesses where FDI is not permitted. British American Tobacco (BAT), a prominent international tobacco corporation based in the United Kingdom, holds a 25.5% stake in ITC. With the latest clarification, BAT is now eligible to receive bonus shares from ITC without exceeding the current equity limit, offering ITC greater flexibility in managing capital distribution.
This policy shift may come as a relief to companies with legacy FDI that predates the imposition of sectoral restrictions. ITC, in particular, may find this an efficient way to manage reserves and enhance shareholder value without triggering regulatory concerns.

Legal Perspective on the Clarification

Legal experts are viewing the development as a positive shift in policy interpretation. Vaibhav Kakkar, a senior partner at Saraf and Partners, commented, “The clarification is based on the rationale that issuing bonus shares doesn’t involve any fresh capital inflow. It allows Indian firms to convert their accumulated reserves into equity, benefiting both Indian and foreign shareholders.”
The relaxation essentially enables capital restructuring in a compliant manner, while respecting the existing FDI caps. This facilitates a more balanced shareholder rights framework for companies that had historically attracted foreign investment under now-prohibited categories.

Clarification from DPIIT

According to DPIIT, “An Indian company operating in a sector where FDI is barred is allowed to issue bonus shares to its current foreign shareholders, provided that the foreign ownership percentage remains unchanged following the issuance.”
This measure aligns with the government’s aim to simplify procedures for businesses and eliminate unnecessary regulatory bottlenecks. The clarification ensures that companies with non-resident investors, who were lawfully inducted before regulatory restrictions came into effect, can still maintain equitable shareholder practices.

Sectors That Remain Off-Limits

Although the rules on bonus shares have been relaxed, foreign direct investment continues to be entirely restricted in certain industries. These include:
• Tobacco and related products
• Lottery businesses
• Gambling and betting (including casinos)
• Chit funds
• Real estate activities and farm house construction
• Atomic energy
• Railway operations
FDI is either permitted automatically or with government clearance in every other sector.

Past Approval Process and Bottlenecks

Until now, any move to issue bonus shares in prohibited sectors—even for companies with grandfathered foreign investments—required prior consent from regulatory bodies like the Reserve Bank of India (RBI). This often resulted in lengthy procedural delays.
A notable example was seen in the case of Godfrey Phillips India Limited, where the process of obtaining necessary approvals proved to be time-consuming. This new policy shift will cut down on such bureaucratic delays and improve operational efficiency.
Rudra Kumar Pandey, a partner at Shardul Amarchand Mangaldas & Co., highlighted the importance of this change: “This development will significantly streamline corporate actions for companies operating in sectors with FDI restrictions. It helps in maintaining parity in shareholder rights and boosts investor confidence.”

Final Thoughts

The government’s decision to permit bonus share issuance in FDI-prohibited sectors without altering foreign ownership levels is a significant regulatory improvement. This is particularly impactful for companies like ITC, where foreign ownership already exists within the allowed limit.
By acknowledging that bonus shares do not involve additional capital inflows, the clarification enables better capital management and equity distribution. It also marks a thoughtful step towards harmonizing investor rights while still upholding sector-specific restrictions.
This policy refinement, while seemingly technical, could enhance investor sentiment and provide a template for balanced FDI governance going forward.

 

 

 

 

 

 

 

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India’s Fintech Journey: Progress and Future Ahead

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LG Electronics’ India unit IPO: valuation, strategy and sector implications
IPO research, Market News - April 14, 2025

Get Ready to Invest: Tata Capital's Game-Changing ₹15,000 Crore IPO!

Get Ready to Invest: Tata Capital’s Game-Changing ₹15,000 Crore IPO!

Tata Capital, the financial services subsidiary of the Tata Group, takes a significant step toward listing with an ambitious ₹15,000 crore IPO in the works.

In a pivotal move for its public market debut, Tata Capital Limited has formally submitted a confidential preliminary prospectus to SEBI (Securities and Exchange Board of India), initiating the process of its much-anticipated ₹15,000 crore Initial Public Offering (IPO).

Breakdown of the Offer

The company plans a two-part IPO offering. The first part consists of a new share issuance — about 2.3 crore equity shares, which will raise additional capital to fuel its growth initiatives. The second part of the offer will involve the sale of existing shares by its major stakeholders, predominantly Tata Sons, which holds a dominant 92.83% stake in the company. This share sale will enable a broader base of investors to become stakeholders in Tata Capital. The company’s shares are set to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with final details on pricing and bid structure to be finalized later.

Leading Investment Banks to Guide the Offering

The IPO process will be managed by a group of prestigious financial institutions, who will handle various aspects of the offering The coalition includes leading financial institutions and consultancy firms such as Kotak Mahindra Capital, Axis Capital, Citi, JP Morgan, HSBC, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank. These experts will assist in structuring the deal, determining pricing, and ensuring the offering aligns with market expectations.

Tata Capital’s Position in the Market

Founded in 2007, Tata Capital has become an established name in India’s financial services industry. The company provides a broad array of services ranging from consumer loans and wealth management to commercial finance and co-branded Tata Cards. Its operations span more than 900 locations across India, serving both retail and corporate customers.
Tata Capital’s strong network and diversified offerings have positioned it as one of the leading non-banking financial companies (NBFCs) in the country. With a customer-first approach, it leverages technology and innovation to maintain a competitive advantage in the sector.

A Look at the Financials: Growth Momentum

Tata Capital has demonstrated remarkable financial performance recently. The company reported ₹18,178 crore in revenue for FY24, reflecting a 34% increase compared to the prior year, showcasing its ability to meet growing demand for financial services across various segments.
Additionally, its net profit reached ₹3,150 crore in FY24, marking a 37% increase from the previous year’s figure of ₹2,300 crore. This growth signals strong operational efficiency and a healthy portfolio of assets.
In addition, Tata Capital’s loan portfolio exceeded ₹1 lakh crore, reflecting a 40% annual growth and solidifying its status as a major contender in India’s financial sector.

Rationale Behind Going Public

This IPO is strategically timed to align with Tata Capital’s long-term vision for expansion. With a growing demand for financing in India and a rising middle class, the company sees this as an opportunity to enhance its financial flexibility. The funds raised from the IPO will support business expansion, investment in technology, and improvements to its capital structure, particularly in underserved sectors.
This step also positions Tata Capital for further digital growth and increased penetration into new markets, thereby enabling it to reach a wider audience of both consumers and businesses.

Tata Group’s Strategy: Unlocking Value

The proposed IPO forms a key element of the Tata Group’s wider strategy to maximize the value of its subsidiaries. Similar efforts have been observed with Tata Technologies, which successfully went public, and it appears Tata Capital is following suit by capitalizing on its strong financial foundation to access additional capital markets.
This approach reflects a growing trend in the Group’s strategy to position its subsidiaries for greater visibility and growth opportunities.

Closing Thoughts: A Milestone for Tata Capital

Tata Capital’s decision to go public highlights its strong growth trajectory and market stability in India’s competitive financial services sector. By confidentially filing its IPO papers, the company ensures it has ample time to adjust its offering to market conditions before making any final decisions.
With continued growth prospects and a solid financial outlook, Tata Capital’s IPO is poised to be one of the most anticipated listings of 2025, drawing considerable attention from both retail and institutional investors.

 

 

 

 

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Apple’s India Move: iPhones Worth $6 Billion and Counting

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Clean Fanatics Raises $2M to Transform Home Services
Equities, Expert Views, Investor Forum, Market News, Markets - April 10, 2025

Government Urges Mutual Funds to Embrace PSU Stocks: A Shift Towards Balanced Investing

Government Urges Mutual Funds to Embrace PSU Stocks: A Shift Towards Balanced Investing

 

India’s mutual fund sector has witnessed rapid expansion in the last ten years, establishing itself as a significant player in steering market dynamics. However, one segment that continues to be underrepresented in mutual fund portfolios is public sector undertakings (PSUs). In light of this, the Secretary of the Department of Investment and Public Asset Management (DIPAM) has appealed to mutual fund managers to take a serious look at including more PSU stocks in their investment strategies. This call isn’t merely a suggestion—it’s a strategic push. The government is signaling that PSUs are not just legacy institutions, but evolving businesses with strong balance sheets, reliable performance, and untapped value.

 

Why Mutual Funds Have Avoided PSUs

Historically, mutual funds have been cautious about PSUs. The perception has been that government ownership leads to bureaucratic decision-making, limited innovation, and political interference. As a result, fund managers often preferred private sector companies that were seen as more agile and profit-oriented. But that narrative is changing. Many PSUs have improved operational efficiency, restructured their business models, and shown impressive financial results. Yet, the stigma lingers, and mutual fund exposure to PSUs remains lower than historical averages.

 

Financial Strength and Dividend Reliability

One of the strongest arguments for including PSUs in mutual fund portfolios is their dividend performance. In the current financial year, public sector companies distributed a record ₹1.5 trillion in dividends, with the government receiving over ₹74,000 crore. This reflects the robust financial position of many of these firms, especially in sectors like energy, banking, and infrastructure.

For mutual funds that prioritize stable income generation and long-term capital preservation, this level of dividend consistency is a valuable asset. It can also help reduce the overall volatility of a portfolio, particularly during uncertain market conditions

 

Undervalued and Overlooked

Despite their strengths, PSU stocks are often undervalued compared to their private-sector peers. This presents a potential opportunity for mutual funds to enter at attractive valuations. Many PSUs operate in capital-intensive sectors such as oil & gas, mining, power, and defence all of which are critical to the Indian economy and have strong long-term prospects. These companies often have predictable revenue streams, government-backed contracts, and a dominant market share. In an investment environment increasingly focused on long-term value and fundamentals, these are features worth considering.

 

Aligning With Government Reforms

DIPAM’s push comes at a time when the government is actively pursuing strategic disinvestment. The aim is not just to raise capital, but to increase efficiency, improve corporate governance, and bring in more accountability. By expanding the investor base and enhancing market liquidity, mutual fund involvement can add credibility to this process. Greater institutional involvement also supports transparent price discovery during public offerings or stake sales. This is vital for ensuring that the disinvestment process is not only successful financially, but also seen as credible and fair.

 

Encouraging Private Sector Accountability

Interestingly, the DIPAM Secretary didn’t stop at PSUs. He also highlighted the need for private corporations to be more accountable to minority shareholders—especially regarding dividend payouts. This indicates a broader push toward corporate governance reform across both public and private sectors, reinforcing the idea that all investors deserve fair treatment.

 

Mutual Funds as Market Leaders

Mutual funds don’t just allocate capital—they set trends. When they invest in a sector or company, it often sends a message to retail investors and market analysts. A renewed interest in PSUs from large fund houses could lead to a broader re-evaluation of the sector, improving sentiment and boosting investor confidence. Moreover, PSUs can add balance to portfolios that may otherwise be overweight on high-growth or tech-focused companies. Their stability, combined with consistent income, can help mutual funds manage risk more effectively.

 

Time to Rethink the Bias

The request from DIPAM isn’t just about supporting government-run companies. It’s about recognizing their evolving role in a modern economy. Public Sector Undertakings are evolving to be more financially robust, increasingly competitive, and better responsive to market demands. By ignoring them, mutual funds might be missing out on sustainable long-term gains. With the economy shifting gears, and infrastructure, energy, and defense spending on the rise, many PSUs are poised to benefit directly. It may be the right time for fund managers to reassess their assumptions and give this segment the attention it deserves.

 

 

 

 

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24% Tariffs: Japan Faces Economic Shockwaves

 

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Hike in limit on small-value credits of Urban co-operative banks
Banking, Equities, Market News, Markets - February 24, 2025

Personal Loan Growth contracted to 13.7 percent in the third quarter of FY25

Personal Loan Growth contracted to 13.7 percent in the third quarter of FY25

 

Overview

Personal loan growth has slowed to 13.7% by December 2024, down from 15.2% in September, due to regulatory warnings. Total bank credit growth also slowed, despite the fact that all population categories continued to rise by double digits. Lending for commerce, finance, and professional services increased, while credit for agriculture and manufacturing remained stable.  Aggregate deposits increased by 11%, with term deposits showing significant growth.

 

Personal Loan Growth slowed down

Personal loan growth slowed in the December quarter due to regulatory concerns about potential overheating. According to quarterly data from the Reserve Bank of India, the annual growth rate for the personal loan segment was 13.7% in December 2024, down from 15.2% in September. Total bank credit growth also slowed to 11.8% in December 2024, down from 12.6% in September.

 

Further, at the end of January this year, RBI released key data according to which, bank lending to the personal loan segment moderated in December to 14.9% year on year, owing mostly to a reduction in growth in other personal loans, vehicle loans, and credit card outstanding. The RBI has issued statistics on sectoral bank credit deployment for December 2024, which was collected from 41 select commercial banks and accounts for approximately 95% of total non-food credit deployed by commercial banks.

 

The banking regulator stated that all population categories in rural, semi-urban, urban, and metropolitan branches of banks experienced double-digit credit growth, albeit with some slowdown which was true for both public and private sector banks.

 

Credit distribution

Previously, the RBI had presented that the growth in non-food bank credit as of the fortnight ending December 27, 2024, slowed to 12.4% on a year-over-year (y-o-y) basis from 15.8% in the same fortnight the year before. The data showed that bank lending to agricultural and related businesses increased by 12.5% year over year as of the fortnight ending December 27, 2024, compared to 19.4% for the same fortnight the year before.

 

Additionally, industry credit growth stayed relatively constant at 7.4% annually. Out of all the major industries, food processing, petroleum, coal products and nuclear fuels, and all engineering had the highest growth rates. Nonetheless, the infrastructure segment’s credit growth slowed.

 

Further, credit growth in the services sector also slowed to 13.0% year-over-year as of the fortnight ending December 27, 2024. For the equivalent two weeks of the prior year, the growth was 20%. The primary trigger of the moderation was the slower expansion of lending to trade segments and non-banking financial companies (NBFCs). However, credit growth for professional services and computer software increased year over year.

 

Recently, RBI stated that the credit to agriculture and industry sectors also saw some slowing in growth, while lending to commerce, finance, and professional/other services increased in the third quarter. About half of the loans granted by banks had interest rates ranging from 8% to 10%, while approximately 16% had interest rates less than 8%. According to the RBI, the remaining loans carried interest rates of 10% or above.

 

Deposits saw an uptick

Meanwhile, aggregate deposits increased by 11% in December 2024, compared to an 11.7% rise a quarter earlier.  Granular data revealed that approximately 80% of incremental term deposits mobilized between April and December 2024 were held in the one to three-year maturity bucket, indicating a potential lag in the softening of banks’ deposit costs. The proportion of total term deposits with an interest rate of 7% or more climbed from 61.4% to 70.8% by December 2024.

 

Term deposits increased 14.3% year on year, while savings deposits increased by 5.1%.  This resulted in a further increase in term deposits’ percentage of total deposits to 62.1% at the end of December, up from 60.3% the previous year.

 

Q3FY25 Banking Sector Performance

The banking industry reported a mixed quarter, with modest business momentum, high credit costs, and moderate margins. As observed in both public and private sector banks, the growing cost of deposits and heightened competition for funds contributed to the ongoing reduction in net interest margins (NIMs). All segments saw a slowdown in credit growth, with corporate lending recovering slowly as a result of a muted capital expenditure cycle and pressure on large-ticket loan prices.  Risks associated with asset quality are still a major worry, especially in unsecured lending, where personal loan and microfinance portfolio slippages are still common.

 

Systemic credit offtake as of December 31, 2024, was INR 175.9 trillion, representing an 11.3% YoY growth rate that is lower than the 12.6% growth rate from the previous year (excluding merger impact).  Our coverage’s overall credit growth stayed modest at about 10.3% year over year. Secured lending, such as home, auto, and SME loans, drove expansion in retail credit, which continued to grow albeit at a slower rate. A slowdown in unsecured lending, which includes credit cards, personal loans, and microlending, was brought on by tighter regulations, increased risk perception, and an increase in delinquencies. HDF Commercial Bank continues to show a modest gain of 3.0% YoY (+0.9% QoQ), while Bandhan bank led the growth with 15.6% YoY (+1.1% QoQ).

 

Conclusion

To sum up, legal measures led to a decrease in the growth rate of personal loans in December 2024. The expansion of bank credit also moderated.  The lending development to professional services, finance, and commerce grew while Manufacturing and agriculture remained stable.  Investor’s shifts in their preferences resulted in deposit growth, especially term deposits.  The banking industry had mixed results during Q3FY25 so far with concerns regarding asset quality, most notably in unsecured lending, loan growth has slowed with a shift toward an emphasis on secured lending, which is a more positive quality for the industry.

 

 

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India’s Ports Sector to increase capacity by the financial year 2028

 

 

 

 

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Economy, Equities, Market News, Markets - February 24, 2025

India’s Ports Sector to increase capacity by the financial year 2028

India’s Ports Sector to increase capacity by the financial year 2028

 

Industry Overview

India’s ports play a crucial role in its trade and economy, accounting for 95% of export volumes and 70% of export values. India has 13 major ports and more than 205 designated minor and intermediate ports. Indian ports and the shipping industry are critical to the country’s economic progress. India is the world’s sixteenth-largest marine country, with 7,516.6 km of coastline and 20,275 km of national waterways throughout 24 states. This posture aligns India with 80% of the global maritime oil traffic, highlighting its potential to become a significant maritime player.

 

The Indian government plays a vital role in assisting the port industry and has permitted Foreign Direct Investment (FDI) of up to 100% through the automatic route for port and harbor building and maintenance projects. It has also provided a 10-year tax break for businesses that construct, maintain, and operate ports, inland waterways, and inland ports.

 

In FY24, all major ports in India handled 817.97 million tonnes (MT) of cargo volume, up 4.45% from 784.305 million tonnes in FY23. India’s merchandise exports in FY23 reached $451 billion, up from $417 billion the previous year. The government has implemented many initiatives to improve operating efficiency, including mechanization, deepening the draft, and expedited evacuations.

 

Capacity in increase by FY28

According to Motilal Oswal Financial Services, India’s ports sector is expected to increase capacity by 500-550 MTPA (Maximum Torque Per Ampere) yearly between FY2023 and FY2028. Further, port expansion will be driven by increased handling of petroleum, oil, and lubricants (POL), coal, and containerized goods. India’s ports today handle 95% of the country’s export volume and 70% of its export value, demonstrating the sector’s importance in facilitating trade.

 

The sector currently works at a capacity of 2,604 MTPA, although this is likely to increase dramatically in the next years. Between FY23 and FY28, India’s ports are forecast to increase capacity by 500-550 MTPA per year, driven by sustained expansion in petroleum, oil, and lubricants (POL) handling, as well as coal and containerized cargo.

 

In addition, freight traffic is likely to increase at a constant annual pace of 3-6%, with utilization rates stabilizing at around 55% in the medium term. Container traffic is expected to expand at a 4-7% annual rate over the next five years, driven by rising imports, lower freight costs, and the normalization of global supply chains. Transshipment, which today accounts for roughly 25% of India’s container throughput, remains a significant market, with key ports such as Chennai playing an important role in supporting it. The research also emphasizes the different responsibilities that major and non-major ports play in India’s port ecosystem.

 

Major and Non-major ports to play a vital role

Major ports, which are supervised by the central government, are typically located near industrial areas and handle a diverse range of cargo types based on regional demand. However, shared access channels cause congestion at these ports on a regular basis.  Non-major ports, administered by state governments or private operators through public-private partnerships, exhibit greater operational flexibility and efficiency, resulting in less congestion.

 

Non-major ports experienced a 7.6% increase in cargo traffic in FY23, exceeding major ports’ 4.7% gain.  According to the research, both big and minor ports will play important roles in boosting the sector’s overall growth.  India’s ports will continue to play a crucial role in trade and economic growth due to increased cargo traffic, improved infrastructure, and operations, according to the research.

 

Government initiatives

The Indian government has adopted policies and initiatives to improve port capacity and efficiency. The Sagarmala Programme, which began in 2016, is a major program targeted at lowering logistics costs for both export-import (EXIM) and domestic freight. The program aims to boost port capacity to 3,300 MTPA by 2025, with investments of INR 6t over 800 projects.  Optimizing logistics efficiency and lowering transit time can save INR 350-400 billion yearly.

 

Other initiatives include the Maritime Amrit Kaal Vision 2047 proposes to create six mega ports with world-class facilities, increasing India’s port handling capacity from 2,500 MTPA to 10,000 MTPA by 2047. This strategy aims to achieve 100% cargo handling at PPP berths and integrate sophisticated digital technologies into port operations.

 

Conclusion

India’s ports are vital for its economic trade and growth, and with the country’s massive coastline and strategic neighborhood, there are significant upbeat opportunities for marine expansion. The Government’s policies to support FDI, Sagarmala, and the Amrit Kaal Vision 2047 are fostering growth in capacity and operational efficiency. All these efforts along with the rising significance of India’s major and minor ports, make them powerful engines for the country’s economic growth and global trade competitiveness in the future.

 

 

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US oil export to India becomes double in the month of February

 

 

 

 

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