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Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity
Business, Equities, Markets - September 19, 2025

Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity

Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity

SEBI’s Verdict; A Turning Point in the Adani–Hindenburg Saga: On September 18–19, 2025, the Securities and Exchange Board of India (SEBI) delivered a significant order that marks a new phase in the two-year battle between the Adani Group and U.S. short-seller Hindenburg Research. The regulator cleared two major charges—stock price manipulation and misuse of related-party transactions. According to SEBI, the flagged transactions did not constitute violations of disclosure or fraud norms under the rules applicable when they occurred. This ruling represents a crucial regulatory endorsement of Adani’s compliance practices.

Market Reaction: Sharp Gains in Adani Counters
The immediate impact was felt across the stock market. Adani Group companies witnessed strong buying interest, with several stocks gaining between 1% and 10%, and some even touching 13% intraday highs. Adani Total Gas, Adani Power, and Adani Enterprises were among the biggest gainers. Analysts interpreted this as a removal of a long-standing overhang that had dampened valuations since the January 2023 Hindenburg report. Broader market indices like Sensex and Nifty, however, remained relatively muted, indicating that the surge was concentrated in Adani counters.

The Overhang: 22 Pending SEBI Orders
While the dismissal of two allegations is a relief, SEBI has emphasized that 22 other orders remain pending. These cover potential issues related to insider trading, minimum public shareholding norms, and other compliance matters. The regulator’s ongoing investigations mean that investors must tread cautiously. Analysts note that any adverse finding in these pending cases could dampen the current momentum, underscoring the delicate balance between optimism and risk.

Gautam Adani’s Response and Investor Sentiment
Gautam Adani welcomed SEBI’s clean chit, calling it a “vindication of the group’s integrity and transparency.” He expressed sympathy for investors who endured heavy losses when the allegations first surfaced and urged critics who spread what he termed “misleading narratives” to issue public apologies. Investor behavior has reflected this renewed optimism. Retail investors joined the rally, while institutional investors have begun re-evaluating their risk assessments, though many remain cautious given the pending orders.

Regulatory Findings in Detail
SEBI’s detailed order clarified why the allegations were dismissed. Many of the transactions highlighted by Hindenburg did not fall within the definition of “related-party transactions” under India’s disclosure framework at the time. Additionally, the regulator found no evidence of fund diversion, insider trading, or fraudulent accounting. In effect, SEBI underscored that the Adani Group had adhered to applicable disclosure obligations, and the charges of stock price manipulation were not substantiated.

Technical and Valuation Outlook
Equity analysts point to key resistance levels for Adani Enterprises around ₹2,500–₹2,600, while Adani Ports and Adani Power are also testing recent highs. Although momentum traders are capitalizing on the rally, technical experts warn that volatility is likely, especially as news flow around the pending SEBI cases unfolds. Long-term investors are advised to monitor both regulatory updates and broader sector fundamentals before committing fresh capital.

Broader Implications for Corporate Governance
Beyond the immediate price action, SEBI’s decision carries broader implications for corporate governance and regulatory credibility in India. Market observers note that the case highlights the importance of evolving disclosure norms. Many of the alleged lapses did not qualify as violations simply because of the regulatory framework in force at the time. This raises questions about whether reforms are needed to align India’s standards more closely with global practices.

Looking Ahead: Balancing Relief with Caution
For now, Adani Group companies enjoy renewed investor confidence and relief from a major regulatory burden. However, the 22 unresolved orders serve as a reminder that regulatory uncertainty is far from over. Should future findings prove unfavorable, the group could face renewed volatility. Conversely, additional clean chits could further cement market trust and open the door for greater foreign institutional investment.

Conclusion
SEBI’s dismissal of two key allegations is a significant milestone that has restored short-term market confidence in Adani. Yet the true test lies ahead, as investors weigh the relief of today’s rally against the risks embedded in tomorrow’s pending verdicts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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iPhone 17 India Launch Sparks Rally: Aditya Vision, Electronics Mart, and Retail Stocks in Spotlight

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Investor Takeaways as Vedanta Shares Slide on Govt Objections to Demerger Plans
Equities, Markets - September 18, 2025

Investor Takeaways as Vedanta Shares Slide on Govt Objections to Demerger Plans

Investor Takeaways as Vedanta Shares Slide on Govt Objections to Demerger Plans

Vedanta Ltd, led by Anil Agarwal, saw its share price drop as much as 4% recently after the government raised serious objections to its planned demerger. This setback has introduced regulatory risk and uncertainty for investors, especially given that the National Company Law Tribunal (NCLT) has deferred the hearing on the proposal.

The Situation Now
* Objections by the government: The Ministry of Petroleum and Natural Gas flagged multiple concerns. These include alleged concealment and non-disclosure of critical information in the demerger scheme, inflated revenue figures, and hidden liabilities.
* Concern over dues recovery: The government argues that the restructuring could make it harder to recover dues owed by Vedanta. For instance, assets may be used as collateral or parts of the operation could be shielded.
* Regulator warnings: The Securities and Exchange Board of India (SEBI) has issued a warning over Vedanta making changes to the scheme after obtaining no-objection certificates. Such procedural issues have compounded investor anxiety.
* Hearing delays: The NCLT hearing has been postponed — now scheduled for September 17, 2025 — leaving more time for regulatory pushback, further delays, or modifications.

What this means for Investors
1. Increased risk of regulatory / legal delays: The objections raised by the government, and the procedural issues flagged by SEBI, mean that the demerger may be delayed further or require significant modifications. For investors, this increases timing risk: promised benefits of the demerger (unlocking value, sector focus, improved governance) may be pushed out or diluted.
2. Potential impact on valuation: The market tends to reward clean, transparent restructuring, especially when value can be unlocked by separating businesses by sector (e.g. metals, power, oil & gas). However, with non-disclosures and liabilities under question, the risk premium increases, possibly causing investors to discount the valuation until clarity is achieved.
3. Volatility likely: Share price reactions (4% drop as news broke) show that investor sentiment can swing significantly on regulatory developments. Any new disclosures, court rulings, or interim decisions in the demerger process are likely to lead to similar sharp moves.
4. Importance of governance and disclosures: This whole episode underscores how essential it is for Vedanta to maintain strong, clean disclosure practices. Investors should look for clarity on how Vedanta addresses issues like foreign loans secured against national assets, corporate guarantees, the handling of disputes (e.g. revenue sharing in oil blocks), and transparent accounting.
5. Watch for interim indicators: Until the demerger is approved and executed, there are proxy signals worth tracking: — how Vedanta responds in NCLT filings; — any clarifications around liabilities; — action from SEBI; — movement in share price around key levels (technical support/resistance); — impact on debt metrics and interest costs.
6. Dividend returns vs capital appreciation: With such regulatory uncertainty, investors might weigh Vedanta’s dividend returns more than upside expectations from the demerger. If the restructuring gets delayed or scaled back, dividends may offer more reliable returns in the near term.

Gains on Clarity
If Vedanta successfully addresses the government’s concerns — clears up non-disclosures, ensures transparency, meets regulatory requirements — then:
* The demerger could unlock value by creating more pure-play entities which might attract premium valuations in their respective sectors.
* Reduced complexity may improve investor confidence, leading to multiples expansion.
* The parent entity might enjoy lower cost of capital and better credit ratings if debt is more cleanly allocated or reduced.

Investor Red Flags
* If government objections remain unresolved, the scheme may be modified materially, reducing its benefits.
* Judicial or court delays are possible (NCLT / NCLAT / possibly other courts).
* Possible reputational risk if allegations of non-disclosure or misreporting are validated.
* Market sentiment remains fragile; adverse media or regulatory findings can amplify downside.

Investor Action Plan
* Due diligence: Keep up with Vedanta’s filings, regulatory disclosures, NCLT submissions.
* Set trigger points: For example, clarity on liabilities, government’s acceptance of guarantees, or SEBI’s final observation should be seen as positive triggers.
* Manage portfolio exposure: Given the volatility, it may make sense to limit exposure until there is greater certainty.
* Consider hedging: Where possible, hedge against regulatory risk or adverse rulings.

Conclusion
Vedanta’s ambitious demerger plan represents a large strategic opportunity to unlock value, align operations, reduce debt, and improve governance. But government objections around transparency, liabilities, and disclosures have introduced serious headwinds. For investors, this is a high-risk, potentially high-reward situation — where clarity, regulatory compliance, and timely execution will decide whether the demerger boosts returns or becomes a prolonged drag.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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DreamFolks’ Fall: How India’s Lounge Aggregator Lost Its Grip

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IPO research, Market News, Markets - September 17, 2025

SEBI Simplifies IPO Rules for Big Issuers, Expands Investor Pool

SEBI Simplifies IPO Rules for Big Issuers, Expands Investor Pool

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has introduced significant reforms aimed at simplifying the initial public offering (IPO) process for large companies while simultaneously widening the pool of anchor investors. These changes are expected to boost participation, strengthen corporate fundraising avenues, and increase retail and institutional interest in the primary market.

Simplifying IPO norms for large issuers
Under the revised guidelines, SEBI has eased the minimum public shareholding requirements and streamlined disclosure norms for companies planning IPOs with an issue size of over ₹10,000 crore. Large issuers often face challenges meeting stringent requirements, which can delay their listing process. By relaxing certain thresholds, SEBI aims to encourage more companies to tap into India’s equity markets, especially those with global ambitions and high capital needs.
Previously, companies launching mega IPOs were required to adhere to strict timelines for increasing public shareholding and faced limits on allocation structures. The new framework allows greater flexibility, making it easier for large corporations to raise funds without being burdened by rigid compliance structures. This is expected to attract technology firms, new-age startups, and capital-intensive industries such as infrastructure and energy to pursue listings.

Expanding the anchor investor pool
Anchor investors, typically large institutional buyers who commit to purchasing shares before an IPO opens for public subscription, provide stability and confidence to the offering. Until now, this pool was largely restricted to a set of qualified institutional buyers (QIBs). With the revised norms, SEBI has broadened eligibility to include a wider range of institutional investors, such as sovereign wealth funds, pension funds, and certain category II alternative investment funds (AIFs). This expansion is expected to deepen liquidity, enhance price discovery, and distribute IPO risk more evenly across a diverse set of investors.

Boosting confidence in primary markets
These reforms are timely, given the resurgence of IPO activity in India. Over the past two years, several companies have delayed or downsized their IPOs due to volatile market conditions and concerns about investor appetite. By offering flexibility in shareholding norms and expanding anchor participation, SEBI is sending a strong signal of support to issuers and investors alike. Analysts believe that the measures will reduce the execution risks associated with mega IPOs, as issuers will now be able to secure a more stable and diverse investor base early in the process. Furthermore, retail investors could benefit indirectly, as enhanced anchor participation often results in stronger aftermarket performance.

Addressing global competitiveness
India has become one of the most attractive destinations for capital raising, but regulatory hurdles sometimes push companies to explore overseas listings. By easing IPO norms domestically, SEBI is working to retain large issuers within Indian markets, ensuring that domestic investors can participate in the growth story of homegrown enterprises. Global peers such as the U.S. Securities and Exchange Commission (SEC) and the Hong Kong Stock Exchange already provide flexible frameworks for large issuers, which has made them attractive destinations for listings. SEBI’s latest reforms align India more closely with these international practices, reducing the gap and making the country a competitive choice for global capital.

Market reactions and expectations
The reforms have been widely welcomed by market participants. Investment bankers see this as a positive development that will reduce bottlenecks in deal-making and help accelerate India’s IPO pipeline. Institutional investors, particularly sovereign and pension funds, have expressed interest in participating under the expanded anchor category. However, some experts have cautioned that while easing norms can encourage participation, regulators must ensure strong investor protection mechanisms remain intact. Transparency in disclosures, proper due diligence, and strict monitoring of anchor lock-in periods will remain critical to maintaining market integrity.

Potential impact on upcoming IPOs
Several high-profile companies, particularly in the financial services, energy, and technology sectors, are expected to benefit from the revised guidelines. Companies with large fundraising requirements may now find it easier to structure their IPOs in ways that attract both domestic and foreign investors. The move could also encourage firms that had been hesitant about listing due to compliance concerns to revisit their IPO plans. Analysts predict a surge in large IPO filings in the coming quarters, which could further deepen India’s capital markets.

Conclusion
SEBI’s decision to ease IPO norms for large issuers and expand the anchor investor pool represents a progressive step toward fostering a more dynamic, inclusive, and globally competitive capital market in India. By balancing flexibility with investor protection, the reforms are poised to unlock greater opportunities for companies, investors, and the economy at large.

 

 

 

 

 

 

 

 

 

 

 

 

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GK Energy Limited IPO: Assessing Investment Potential in India’s Solar-Powered Agricultural Infrastructure

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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch
business update, Market News - July 11, 2025

Orient Cables Targets ₹700 Crore IPO for Growth

Orient Cables Targets ₹700 Crore IPO for Growth

The cable and wire manufacturer has submitted draft papers to SEBI for its ₹700 crore initial public offering, comprising a fresh issue and an offer for sale by promoters, aimed at funding expansion and improving financial health.

Summary:
Orient Cables India Limited, a key player in the power and communication cable manufacturing sector, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹700 crore through an Initial Public Offering (IPO). The IPO includes a mix of fresh equity issues and an offer for sale (OFS) by existing promoters. The proceeds will be used to finance capital expenditure for capacity expansion and reduce outstanding debt, positioning the company for long-term growth in India’s rapidly electrifying infrastructure landscape.

Orient Cables Plans to Raise ₹700 Crore Through IPO, Submits Draft Documents to SEBI
Orient Cables India Limited, a homegrown manufacturer of power cables, control cables, and optical fiber solutions, has taken a significant step toward entering the public markets. The company has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising as much as ₹700 crore.
The proposed IPO will comprise two components:
A fresh issue of equity shares, the proceeds of which will be utilized to support capital expenditure plans and debt reduction.
An Offer for Sale (OFS) by existing promoters and shareholders, allowing them to partially divest their holdings and enhance liquidity.
The IPO marks a major milestone in Orient Cables’ journey, as the company seeks to harness public capital to bolster its growth trajectory amid increasing demand for reliable cable infrastructure in India’s expanding energy and digital ecosystem.

Breaking Down the ₹700 Crore IPO Structure
While the exact size of the fresh issue and OFS will be detailed in the final offer document, market insiders suggest that a substantial portion of the IPO—estimated around ₹400–₹450 crore—could go toward the fresh issue. The remaining ₹250–₹300 crore will likely be raised through the OFS route, allowing promoters to offload part of their stakes.
Prominent promoter groups involved in the OFS are expected to include founding family members and strategic investors who backed the company in its early expansion years.

Utilization of Proceeds: Fueling Growth, Reducing Leverage
As per the draft filings, Orient Cables plans to deploy the proceeds from the fresh issue for the following purposes:
Capital Expenditure (Capex):
A significant portion of the funds will go toward expanding manufacturing capacity at its existing plants located in Gujarat and Maharashtra. The company also aims to modernize machinery, add automation systems, and increase its output of high-margin specialized cables such as fire-retardant, low-smoke halogen, and solar cables.
Debt Repayment:
Orient Cables, like many mid-sized manufacturers, has relied on structured debt to fuel its rapid growth. The company plans to utilize part of the IPO proceeds to reduce its debt burden, thereby improving its debt-to-equity ratio and freeing up cash flow for operational and strategic initiatives.
Working Capital & General Corporate Purposes:
A portion of the funds will also support day-to-day working capital needs and other general corporate activities, including branding, research & development, and talent acquisition.

Riding the Wave of India’s Infrastructure Boom
The timing of the IPO fits perfectly with India’s significant focus on infrastructure development. With the government’s focus on electrification, renewable energy, smart cities, and 5G rollouts, the demand for high-quality cables across the power, telecom, and construction sectors is on the rise.
Orient Cables is well-positioned to take advantage of this demand. The company’s product portfolio includes:
Power cables (HT/LT)
Control and instrumentation cables
Communication cables
Fiber optic solutions
Wires for residential and industrial use
With a pan-India distribution network, strong relationships with EPC contractors, and a growing export base, the company is already serving diverse sectors including power transmission, telecom, railways, and real estate.

Financial Snapshot & Market Position
Though the DRHP is yet to publicly disclose the audited financials, industry reports suggest that Orient Cables has recorded:
Revenue CAGR of ~15–18% over the last three years.
Improving EBITDA margins, especially after the commissioning of new production lines.
A steady increase in order book size, with healthy contributions from public sector contracts and private EPCs.
The company is believed to be targeting a valuation of ₹2,000–₹2,400 crore in the IPO, depending on market conditions and investor appetite.

Industry Landscape and Competitive Edge
The Indian cable and wire sector is quite diverse, featuring key companies like Polycab, KEI Industries, Finolex, and Havells at the forefront of the market. However, rising infrastructure investment and customer demand for quality, safety, and compliance are creating room for mid-tier manufacturers like Orient Cables to scale rapidly.
Orient Cables’ competitive advantages include:
ISO-certified plants with in-house R&D capabilities
Cost efficiency through backward integration
Strong after-sales support and turnkey project capabilities
Expansion into solar and green energy cables, which are gaining traction amid ESG goals

IPO Outlook and Market Sentiment
The IPO market in India has been witnessing robust activity in 2025, with several industrial, fintech, and EV companies tapping the primary markets. Analysts believe that Orient Cables’ strong fundamentals, coupled with its relevance in infrastructure growth, could make the offering attractive to institutional and retail investors alike.
With the draft prospectus now under SEBI review, the IPO is expected to launch in the next 3–4 months, subject to regulatory approvals and favorable market conditions.

Conclusion
Orient Cables’ planned ₹700 crore IPO is not just a fundraising event—it signals a broader ambition to become a significant player in India’s infrastructure value chain. By investing in capacity, technology, and debt reduction, the company is laying the groundwork for sustainable, long-term growth. If successful, this IPO could mark the start of a new chapter for Orient Cables and further energize India’s already vibrant public markets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Clean Fanatics Raises $2M to Transform Home Services

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Market News, Markets - July 10, 2025

Corporate Bond Issuances Set to Hit ₹11 Trillion in FY26 Amid Falling Rates and Delayed Bank Transmission

Corporate Bond Issuances Set to Hit ₹11 Trillion in FY26 Amid Falling Rates and Delayed Bank Transmission

India’s corporate debt market is poised for another record-breaking year in FY26, with bond issuances expected to exceed ₹11 trillion. This would mark a significant jump from ₹9.95 trillion raised in FY25 and signals a shift in preference toward market-based borrowing over traditional bank loans. With bond yields declining and banks slow to cut lending rates, companies are seizing the opportunity to raise funds at lower costs.

Key Drivers Behind the Surge in Bond Issuances

The surge in corporate bond issuance is largely driven by the divergence in rate transmission between the bond market and the banking system. After the Reserve Bank of India (RBI) initiated rate cuts, yields in the bond market responded swiftly. The 10-year government bond yield fell nearly 38 basis points from 6.70% to 6.32%, making it more attractive for corporates to raise funds through bonds.

In contrast, banks were slower to pass on the benefits of rate cuts. For instance, the one-year marginal cost of lending rate (MCLR) dropped by only 10 basis points during the same period, standing at 8.90%. This lag in rate transmission has widened the cost gap, making debt markets the preferred route for corporates seeking affordable capital.

Front-Loading of Borrowings

Another notable trend is the front-loading of bond issuances. During the first quarter of FY26, companies secured ₹2.79 trillion via 506 private placements—significantly surpassing the ₹1.56 trillion raised in the same quarter of FY25.This sharp increase shows that corporates are rushing to lock in lower rates before any possible reversal in monetary policy.

Companies still favour private placements as their primary method for raising debt. Companies prefer this route due to its flexibility, quicker turnaround, and reduced compliance compared to public issues. In FY25, only ₹19,000 crore was raised through public bond issuances, highlighting the overwhelming preference for private deals.

Who’s Borrowing and at What Rates?

The bulk of recent bond issuances have come from highly rated companies, especially those with AAA credit ratings. Firms like Bajaj Housing Finance and L&T Finance successfully raised funds in June with coupon rates ranging between 7.0% and 7.5%. These rates are considerably lower than those offered by banks for similar credit quality, reinforcing the shift towards bonds.

The investor base for corporate bonds is also expanding. Mutual funds, insurance companies, and pension funds are showing growing interest in these instruments due to the attractive yield spreads over government securities. This demand further supports the momentum in the primary bond market.

Market Size and Comparison with Global Peers

Despite the robust growth, India’s corporate bond market remains underdeveloped relative to other major economies. Currently, the market accounts for about 18% of the country’s GDP. In contrast, China’s corporate debt market represents roughly 36% of its GDP, and South Korea’s stands at nearly 80%.

The lack of a deep and active secondary market is one of the main reasons behind this gap. According to RBI data, the average secondary market turnover in corporate bonds is only about 3.8% of outstanding bonds. Low liquidity discourages retail participation and limits price discovery, posing a challenge to long-term market development.

Delayed Transmission in Bank Credit

While bond issuances have grown rapidly, bank credit to industries continues to lag. As of May 2025, year-on-year credit growth to the industrial sector stood at 4.8%—a modest figure compared to the spike in debt market activity. The slow adjustment in lending rates and tight credit assessment by banks have nudged corporates toward more efficient capital-raising options like bonds.

Forecasts and Outlook

Rating agencies and market participants expect this trend to continue. ICRA estimates that corporate bond issuances may total between ₹10.7 trillion and ₹11.3 trillion by FY26-end. Others believe that if the current momentum continues, the market could even surpass ₹12 trillion this fiscal year.

However, the pace may moderate in the second half of the year if the RBI decides to pause or reverse its rate-cutting cycle due to inflationary pressures or global uncertainties. Additionally, improving secondary market liquidity and increasing public issuances could further support the market’s depth and resilience.

Structural Reforms Still Needed

Despite strong momentum, several structural issues need to be addressed. These include improving transparency, easing public issuance norms, developing the secondary market, and encouraging wider investor participation. SEBI and RBI have taken steps in this direction, but consistent reforms are essential to build a deeper and more vibrant corporate bond ecosystem.

Conclusion

India’s corporate bond market is on track for another landmark year, fueled by favorable interest rate dynamics and increased reliance on private placements. As companies take advantage of lower yields and bypass sluggish bank lending, the debt market is evolving into a major funding channel. Yet, for sustainable growth, long-standing challenges like liquidity, access, and regulatory hurdles must be tackled head-on.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ICICI Bank Shares Slip as ICICI Prudential AMC Files for Landmark ₹10,000 Crore IPO

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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch
Market News - June 21, 2025

Capillary Technologies Seeks ₹430 Crore IPO Boost

Capillary Technologies Seeks ₹430 Crore IPO Boost

Capillary Technologies India has filed for an IPO that features a fresh issue of ₹430 crore and an offer to sell 1.83 crore shares, representing a significant step in its growth journey.

Summary:
Capillary Technologies India Ltd has submitted draft documents to SEBI to garner ₹430 crore through a new issue in its forthcoming IPO, along with an offer for sale (OFS) of 1.83 crore equity shares. The proceeds will be used for bolstering cloud infrastructure, investing in research and development, and pursuing strategic acquisitions. Existing investors such as Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I are set to offload part of their stakes in the OFS.

Capillary Technologies Files DRHP for ₹430 Crore IPO; Plans to Strengthen Tech, Expand Globally
Capillary Technologies India Ltd, a leading provider of SaaS-based customer loyalty and engagement solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as part of its plan for an initial public offering (IPO). The company aims to raise approximately ₹430 crore through a new share issue, along with an offer for sale (OFS) of up to 1.83 crore equity shares from existing shareholders.
The IPO marks a significant step in the company’s mission to scale its cloud-based capabilities, deepen its R&D footprint, and explore strategic mergers and acquisitions across domestic and international markets. The fresh capital infusion is expected to fuel Capillary’s next phase of digital growth and innovation.

IPO Structure: Fresh Issue + Offer for Sale
The proposed IPO consists of:
Fresh Issue: ₹430 crore worth of new equity shares
Offer for Sale: Up to 1.83 crore shares by existing investors
The selling shareholders in the OFS include:
Capillary Technologies International Pte Ltd
Ronal Holdings LLC
Trudy Holdings
Filter Capital India Fund I
These entities, early investors in the company, are likely monetizing part of their holdings to either partially exit or rebalance their investment portfolios.

Utilization of Fresh Issue Proceeds
According to the DRHP, the company plans to deploy the ₹430 crore raised through the fresh Issue for:
Investment in Cloud Infrastructure:
Capillary plans to improve its proprietary technology framework by broadening its cloud infrastructure. This will enable better scalability, faster product deployment, and improved service reliability for its global clientele.
Research and Development (R&D):
A significant portion of the proceeds will be earmarked for R&D to upgrade existing offerings and develop new AI-driven modules, enhancing personalization, predictive analytics, and automation capabilities within its customer loyalty platform.
Strategic Acquisitions and Partnerships:
Capillary aims to pursue inorganic growth through strategic acquisitions, especially in untapped geographies and niche tech areas. These moves are expected to accelerate entry into new markets and diversify its customer base.
General Corporate Purposes:
The remaining funds will support working capital requirements, marketing initiatives, and business expansion activities.

Company Overview: Empowering Brands with Customer Loyalty Tech
Founded in 2008 by Aneesh Reddy, Capillary Technologies has evolved into a prominent player in the customer engagement and loyalty management space, serving over 250 clients across retail, FMCG, automotive, and other consumer-facing industries.
The company’s SaaS platform uses advanced technologies such as AI, machine learning, and big data analytics to help brands enhance customer retention, personalize marketing campaigns, and boost lifetime customer value.
Capillary has a significant presence across various regions, including India, Southeast Asia, and the Middle East, and has recently expanded into the U.S. and Europe through strategic acquisitions like Persuade and Brierley+Partners.

Financial Snapshot and Growth Trajectory
While the DRHP provides detailed financials, preliminary data suggests Capillary has witnessed robust top-line growth, primarily driven by:
Expansion into high-margin international markets
Increased demand for digital loyalty solutions post-COVID
Adoption of subscription-based revenue models
The company has turned EBITDA-positive in recent years and has seen improved unit economics, owing to a high retention rate among clients and the upselling of value-added services.
However, challenges remain in the form of high customer acquisition costs, currency fluctuations, and competitive pressure from both global and local SaaS rivals.

Sector Outlook: Tailwinds Favoring Digital Loyalty Platforms
The customer engagement and loyalty market is expected to grow at a CAGR of over 20% globally, buoyed by:
Rising digital adoption across retail and e-commerce
Demand for real-time, personalized engagement tools
Need for data-driven insights in customer decision-making
Capillary Technologies is well-positioned to capitalize on these trends, given its end-to-end SaaS suite, AI capabilities, and expanding international footprint.

Competitive Landscape
Capillary Technologies competes with several global and regional players, including:
Salesforce (Customer 360)
Adobe Experience Cloud
Oracle Loyalty
Punchh (acquired by PAR Tech)
Local startups such as Netcore, Zoho CRM, and MoEngage
Capillary’s differentiated edge lies in its AI-powered micro-segmentation, rapid deployment capabilities, and deep integrations with existing enterprise systems.

Conclusion: A Promising Bet in India’s SaaS Growth Story
Capillary Technologies’ IPO comes at a time when investor appetite for scalable Indian SaaS startups is high. The company’s strong fundamentals, recurring revenue base, and global ambition make it a compelling proposition for both institutional and retail investors.
While valuations and market timing will play a role in its IPO success, the strategic use of proceeds in technology and expansion could further consolidate Capillary’s position in the global loyalty tech ecosystem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Biocon Successfully Concludes QIP, Sets Issue Price at ₹330 Per Share with 3% Discount

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PFC Withdrawals May Impact Zero-Coupon Bond Market
Market News - June 13, 2025

PFC Withdrawals May Impact Zero-Coupon Bond Market

PFC Withdrawals May Impact Zero-Coupon Bond Market

PFC’s Unusual Moves Raise Concerns

Power Finance Corporation (PFC), a key public sector financial institution supporting India’s power sector, has recently been in the spotlight—not for new issuances, but for repeatedly *withdrawing its zero-coupon bond offers*. This trend is causing ripples in the debt market, with experts warning that continued withdrawals could weaken investor sentiment and affect the attractiveness of fresh zero-coupon debt issuances, particularly in the infrastructure financing segment.

Understanding Zero-Coupon Bonds

These instruments are particularly attractive to long-term investors such as pension funds and insurance companies due to their predictable return profile and tax efficiency over time.

For institutions like PFC, which finance long-gestation infrastructure projects, zero-coupon bonds serve as a useful funding tool, offering cash flow flexibility during the initial project phase. But consistent withdrawal from this market may signal deeper issues.

The Pattern of Withdrawals

Over the past few quarters, PFC has announced multiple zero-coupon bond issuances, only to pull them back at the last moment. While official reasons are often not disclosed, industry insiders cite a combination of factors such as:

Unfavorable interest rate trends**
Investor demand falling short of expectations**
Internal re-evaluation of funding needs

These sudden withdrawals, though legally permissible, create uncertainty among institutional investors, particularly mutual funds and insurance companies that rely on predictable debt offerings to plan their portfolios.

Market Implications: A Chilling Effect

Investor Hesitation
Repeated withdrawals may lead investors to question the credibility of future offers, potentially leading to under-subscription even when offers are solid.

Price Volatility
If other issuers follow suit, or if the market begins to factor in higher cancellation risk, zero-coupon bond prices could become more volatile.

Benchmarking Challenges
PFC, as a major issuer, helps set benchmarks for pricing in this niche. Reduced activity by PFC can disrupt the market’s ability to price similar instruments fairly.

Impact on Infrastructure Financing
If zero-coupon bond issuance slows across the board, long-term infrastructure financing could become more difficult, especially for entities depending on such funding structures.

Regulatory Perspective

While no regulatory breaches have occurred, repeated issuance withdrawals could attract attention from market regulators like SEBI, especially if they start affecting systemic trust in the debt markets. Calls for *greater transparency and communication* around such decisions may intensify in the coming months.

Conclusion: Time for a Rethink?

Power Finance Corporation’s repeated bond offer withdrawals may seem tactical, but the broader implications are strategic. As one of the most prominent players in India’s financial ecosystem, PFC’s market behavior sets the tone for other issuers. If zero-coupon bonds are to remain a reliable financing tool, a more consistent and transparent approach may be necessary.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SEBI Enables Transfer of Core SGF Between Segments
Market News - June 10, 2025

SEBI Enables Transfer of Core SGF Between Segments

SEBI Enables Transfer of Core SGF Between Segments

Updated Rules Help Strengthen Clearing Corporations’ Flexibility

Summary:
SEBI has approved a regulatory change that lets clearing corporations move excess Core SGF from the equity cash segment to the equity derivatives segment. This aims to boost financial safeguards and strengthen market risk preparedness.

Introduction

In a notable policy revision to enhance financial security in India’s stock markets, the Securities and Exchange Board of India (SEBI) has allowed clearing corporations to shift surplus funds from the Core Settlement Guarantee Fund (SGF) of the cash equity segment to the equity derivatives segment. This reform is intended to reinforce the stability of derivative transactions by ensuring better capital preparedness to tackle defaults.

What is the Core SGF?

Funded by entities like stock exchanges, clearing corporations, and brokers, this reserve aims to mitigate systemic disruptions during trade settlements by guaranteeing sufficient liquidity.

Why SEBI Made This Move

The updated norms come as India’s derivatives segment witnesses increasing trade volume and complexity. To address the associated financial risks, SEBI has given clearing bodies the authority to reallocate idle funds from the cash segment’s SGF to where they are more critically needed — the derivatives space. This regulatory shift offers clearing corporations the flexibility to adjust fund placement in alignment with risk exposure.

Highlights of SEBI’s Updated Regulations

Eligibility for Transfers:
Only those clearing corporations holding extra SGF reserves in the cash equity section may shift these funds to the derivatives segment. These movements require consent from the corporation’s Risk Committee to ensure prudent financial decision-making.

Transfer Conditions:
SEBI mandates that all such fund transfers be vetted and cleared by the Risk Committee. This ensures proper oversight and alignment with the firm’s broader risk policies.

Phased Capital Contribution:
To meet the SGF needs in the derivatives segment, SEBI permits staggered capital infusions. Clearing corporations must complete this reallocation within four months of the guideline’s release, ensuring time-bound compliance without straining liquidity.

Monthly Capital Review:
Clearing corporations must evaluate their SGF minimum requirement monthly. This figure will be based on stress test results from the previous month, helping corporations maintain a dynamic and up-to-date view of risk readiness.

Mandatory Disclosures:
For transparency, SEBI requires clearing corporations to publicly disclose any gap between the required and actual SGF contributions. This information must be available on the respective websites, boosting confidence among stakeholders.

Impact on Stakeholders

Strengthened Market Safeguards:
These regulatory changes are expected to reinforce the financial framework of the derivatives market, reducing systemic risks and improving confidence in settlement processes.

Better Resource Management:
Clearing corporations now have more leeway in fund management, allowing for improved operational efficiency by channeling capital where it’s most needed, depending on market volatility.

Cost Considerations:
While long-term benefits include stronger market stability, clearing corporations may face transitional costs. These could be reflected in slightly higher fees or operational charges for participants.

Conclusion

SEBI’s decision to allow surplus fund reallocation between the SGFs of cash and derivatives segments is a forward-looking step to enhance market resilience. By granting more financial maneuverability to clearing corporations, the regulator aims to ensure that India’s growing and increasingly complex derivatives market remains well-protected against potential financial shocks. This change, though requiring adjustments from stakeholders, promotes a more responsive and stable capital market ecosystem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PFC Withdrawals May Impact Zero-Coupon Bond Market
Market News - June 7, 2025

MCX’s Leap into Electricity Derivatives: A Game-Changer for India’s Energy Markets

MCX’s Leap into Electricity Derivatives: A Game-Changer for India’s Energy Markets

 

India’s energy landscape is undergoing a significant transformation, marked by rapid adoption of renewable energy and market-based reforms. In a landmark move, the Multi Commodity Exchange of India (MCX) has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch electricity derivatives.

The Significance of Electricity Derivatives
Electricity derivatives are financial instruments that allow market participants to hedge against price fluctuations in electricity. Unlike physical commodities, electricity cannot be easily stored, making its prices highly volatile, especially with the growing share of intermittent renewable energy sources like solar and wind. The introduction of these derivatives on a regulated exchange like MCX provides a transparent and efficient platform for managing such risk.

Regulatory Backing and Market Evolution
The approval comes with strong support from both SEBI and the Central Electricity Regulatory Commission (CERC), highlighting a unified regulatory approach to fostering a dynamic and sustainable power market. This collaboration ensures that the new contracts are well-aligned with India’s broader energy and capital market development goals, including the vision of ‘Viksit Bharat’—a developed and self-reliant India.

Who Stands to Benefit?
• Power Generators: With the ability to lock in future prices, generators can stabilize their revenue streams, especially during periods of high volatility caused by unpredictable renewable generation.
• Distribution Companies (Discoms): Discoms, often burdened by sudden spikes in procurement costs, can use these derivatives to hedge against price surges, leading to improved financial health and reduced dependence on state subsidies.
• Large Industrial Consumers: Major consumers can protect themselves from unexpected price hikes, ensuring more predictable operational costs and better budget planning.

Impact on Market Efficiency and Stability
The introduction of electricity derivatives is expected to bring greater efficiency to the power market. By enabling better price discovery and risk management, these instruments will help bridge the gap between the physical and financial sectors. This is particularly crucial as India’s power demand continues to rise and the share of renewables in the energy mix grows, making price volatility an ongoing challenge.

MCX’s Leadership in Commodity Trading
MCX currently commands about 98% market share in the value of commodity futures traded in India, offering contracts across metals, bullion, energy, and agricultural products. The addition of electricity derivatives further cements its position as a leader in innovative risk management solutions. Praveena Rai, MD & CEO of MCX, has described the move as “pivotal” for India’s commodities ecosystem, emphasizing the role of these contracts in providing a reliable, transparent, and regulated platform for market participants.

The Road Ahead: Product Details and Future Prospects
While MCX has received final approval, specific details about the contract specifications and launch timelines are yet to be disclosed. The exchange has indicated that more information will be shared in due course. Notably, the National Stock Exchange (NSE) has also received in-principle clearance for similar products, signaling a broader shift toward electricity derivatives in India’s financial markets.
The regulatory journey for electricity derivatives has been long, with unresolved jurisdictional issues dating back to the era of the Forward Markets Commission (FMC), which was merged with SEBI in 2015. The recent approval marks a significant procedural milestone, resolving years of uncertainty and paving the way for a more robust and resilient energy market.

Broader Implications for India’s Energy Transition
India’s focus on renewable energy and open access power markets is driving the need for innovative financial instruments. Electricity derivatives are expected to play a vital role in this transition, enabling market participants to manage the risks associated with renewable energy integration and market-based reforms. This aligns with the government’s vision of a sustainable, energy-secure, and developed India.

Market Reaction and Investor Sentiment
The announcement has been met with positive market sentiment. On June 6, 2025, MCX’s share price surged by over 4%, reflecting investor confidence in the exchange’s growth prospects and its ability to innovate in response to evolving market needs. The approval also comes at a time when MCX has reported strong financial performance, with a significant increase in net profit and sales in the latest quarter.

Conclusion
SEBI’s approval for MCX to launch electricity derivatives marks a transformative moment for India’s energy and commodity markets. By providing a regulated platform for hedging price risks, these instruments will enhance market efficiency, support India’s renewable energy ambitions, and contribute to the overall stability of the power sector. As MCX prepares to roll out the new contracts, stakeholders across the value chain—from generators to large consumers—stand to benefit from greater predictability and resilience in an increasingly dynamic energy landscape.

 

 

 

 

 

 

 

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Shiprocket Eyes ₹2,400 Cr as IPO Plans Take Flight
Market News - May 23, 2025

Shiprocket Eyes ₹2,400 Cr as IPO Plans Take Flight

Shiprocket Eyes ₹2,400 Cr as IPO Plans Take Flight

 

Shiprocket, a leading logistics technology company in India, has confidentially submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), signaling its plans to raise up to ₹2,400 crore through an Initial Public Offering (IPO). This move marks a critical milestone in the company’s ambition to expand its footprint in India’s rapidly growing e-commerce logistics market.

What is Confidential DRHP Filing?

Confidential filing allows companies to submit IPO-related documents to SEBI without immediately revealing financial and operational details to the public. This route offers companies like Shiprocket the flexibility to get early feedback from regulators and refine their IPO disclosures before the formal launch. It also helps protect sensitive business information during this crucial preparatory phase.
This approach has been adopted recently by several Indian startups preparing to list publicly, enabling them to maintain discretion while streamlining the IPO process.

Financial and IPO Details

Shiprocket’s planned IPO will include a fresh issue of shares alongside an offer for sale by current investors. The fresh equity component is expected to be around ₹1,000 to ₹1,200 crore, with the balance amount raised through sale of existing shares. Funds raised through the fresh issue will be utilized to boost technology upgrades, expand warehousing and logistics infrastructure, and explore strategic acquisitions.
The combination of fresh capital inflow and existing shareholders selling some of their stakes is a common IPO structure among tech companies, balancing growth capital needs and liquidity for early investors.

Company Overview and Market Presence

Established in 2012 by founders Saahil Goel and Gautam Kapoor, Shiprocket has evolved into a comprehensive logistics platform that supports more than 250,000 e-commerce sellers across India. The platform offers end-to-end shipping solutions, covering deliveries to over 24,000 pin codes in India, as well as international shipments to over 220 countries.
Despite incurring a net loss of ₹595 crore in the fiscal year 2023-24, the company witnessed a 21% increase in its operating revenue, which reached ₹1,316 crore, reflecting growing adoption of its services.
Shiprocket’s strength lies in its ability to simplify logistics operations for sellers of all sizes, providing integrations with multiple courier partners, automated shipping management, and real-time tracking—essential tools for scaling e-commerce businesses.

Strategic Growth Plans Supported by IPO

The proceeds from the IPO will support Shiprocket’s plans to enhance its technology infrastructure, including automation and data analytics capabilities. The company also intends to expand its warehousing capacity across key locations to improve delivery speed and reliability.
Another focus area is cross-border logistics, where Shiprocket aims to facilitate seamless international shipments, tapping into the global e-commerce boom. In addition, investments will be made in emerging sectors like quick commerce and digital payments, aligning with evolving consumer trends.
The logistics industry in India is poised for rapid growth, fueled by the surge in online retail, rising smartphone penetration, and consumer demand for faster deliveries. Shiprocket’s integrated platform positions it well to capitalize on these opportunities.

Backing from Top Investors

Shiprocket has attracted investments from prominent global and domestic investors such as Zomato, Temasek, Info Edge Ventures, PayPal, Bertelsmann India Investments, Lightrock, and March Capital. These investors bring not only capital but also industry expertise, which has helped Shiprocket scale its operations and build robust logistics technology.
Their continued support, including participation in the Offer for Sale portion of the IPO, will be key to the company’s ability to sustain growth and achieve profitability.

Challenges Ahead

Despite its promising outlook, Shiprocket faces several challenges typical of logistics startups. Intense competition from established courier companies and other logistics tech platforms means continuous innovation and operational efficiency are crucial. Additionally, managing costs and optimizing last-mile delivery remain vital to improving margins.
Regulatory factors and economic conditions will also influence the IPO’s success and the company’s future performance.

conclusion

Shiprocket’s confidential DRHP filing signals the company’s readiness to transition from a private startup to a publicly traded firm. The ₹2,400 crore IPO will provide the resources needed to accelerate growth, invest in cutting-edge technology, and expand infrastructure in India’s booming logistics sector.
By opting for a confidential filing, Shiprocket aims to navigate regulatory requirements efficiently while maintaining strategic confidentiality. As it prepares for its public market debut, all eyes will be on how effectively Shiprocket can execute its growth plans and create shareholder value.
This IPO represents a significant opportunity for investors to participate in the growth story of one of India’s fastest-growing logistics technology platforms.

 

 

 

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