Month: September 2024

The company has been declared the successful bidder under a tariff-based competitive bidding process to set up dynamic reactive compensation at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3) on a build, own, operate, and transfer (BOOT) basis.

This project will involve the installation of STATCOMs at both pooling stations, along with necessary bay extension work in Gujarat.

The company has declared as the successful bidder to establish inter-state transmission project comprises establishment of new 765/400/220kV (GIS) sub-station at a suitable location near South of Olpad, 765kV & 400kV D/C Transmission Lines and associated bays extension works at other existing substation in the State of Gujarat.

Also, declared as the successful bidder to establish inter-state transmission system for the of establishment of new 765/400/220kV sub-station at Kurawar, 765kV & 400kV D/C Transmission Lines and associated bays extension works at other existing substation in the State of Madhya Pradesh.

And, won competitive bidding for augmentation of transformation capacity at Jam Khambhaliya PS (GIS) on BOOT basis. The project comprises of augmentation of transformation capacity and associated bays extension works at existing substation in the state of Gujarat.

The share touched a 52-week high of Rs 362.30 and a 52-week low of Rs 193.80 on 01 August, 2024 and 09 October, 2023, respectively.

Currently, the stock is trading 5.01 percent below its 52-week high and 77.58 percent above its 52-week low.

The share price jumped more than 70 percent in the last one-year.

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Foreign portfolio investors (FPIs) have pumped over Rs 87,000 crore (over $10 billion) into domestic equities this quarter, the highest inflow since the three months ended June 2023.

A combination of better growth prospects, increased weightage in global indices, and large initial public offerings (IPOs) have ensured a healthy influx of foreign money to the Indian markets, which remain pricey compared to global peers.

FPI flows had slumped in the first two quarters (March and June) of calendar 2024 after pumping Rs 53,036 crore in the December 2023 quarter. In the March 2024 quarter, FPIs were net buyers of Rs 8,786 crore, while they turned net sellers to the tune of Rs 3,040 crore in the June 2024 quarter.

The muted flows were largely due to uncertainty surrounding the outcome of India’s parliamentary elections and the shock verdict, which was contrary to the expectations of Prime Minister Narendra Modi securing a simple majority on his own.

Though the Modi-led National Democratic Alliance returned to power, it is dependent on allies for its survival, unlike in the previous two terms. But even during these phases of muted flows, FPIs were huge buyers in the primary market.

FPIs invested Rs 13,013 crore during the three months ended March 2024 and Rs 22,030 crore in the next three months through primary markets, which includes IPOs, follow-on public offerings (FPOs), rights issue, and qualified institutional placements (QIPs)

India has had a robust IPO market this year.  Till the end of August 2024, 50 Indian firms have together raised Rs 53,453 crore through IPOs. Several large issuances, including those of Hyundai Motors India unit, are likely to hit the market in the coming months.  The opportunity to buy companies with potential at the listing stage and the gains given by these newly listed firms are wooing FPIs to bet in IPOs.  The BSE IPO index, a gauge tracking newly listed firms, has surged 38 per cent in 2024.

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Global companies and financial sponsors are keen to keep exploring both mergers and acquisitions (M&A) and initial public offerings (IPO) in India as they seek to tap into the country’s economic growth, according to top executives from JPMorgan Chase & Co. 

Financial services, including insurance and banking, are attracting a lot of interest, according to Navin Wadhwani, JPMorgan’s head of investment banking in India. 

“We are seeing some amount of M&A activity from some of the global strategics especially in financial services,” Wadhwani told Bloomberg TV. 

India has turned into a hotspot for dealmaking activity as nearly $9 billion has been raised via IPOs this year, according to data compiled by Bloomberg. The volume of deals involving Indian companies has climbed by 28 percent to $77 billion, the data show. 

The average M&A volume has increased annually to $140 billion from 2021 to 2024 year-to-date, double of what it was from 2011 to 2020, Wadhwani said. “There are a lot of activities from financial sponsors and private equities are very actively buying and selling and building businesses. That activity will continue,” he added.

According to a PwC report, the first quarter of 2024 marked a notable resurgence, signaling a shift from the declining trend observed throughout the preceding year. 

With 455 deals, the quarter recorded a 24 percent rise in deal volume compared to Q4 CY23. Moreover, M&A deal value soared by 60 percent reaching $19.6 billion while private equity (PE) deal value experienced a slight dip.  

The overall deal value for Q1 of 2024 stands at a $25.6 billion marking a significant increase from both the previous quarter and the corresponding period last year. Sector-wise, traditional sectors took the lead, drawing significant investments in the changing deal-making scenario. The media and entertainment sector topped the charts in terms of value, while the retail and consumer sector continue to lead in terms of the deal volume.  

Deloitte in a report said as global firms increase their manufacturing presence in India, and as Indian firms with healthy balance sheets look to acquire capabilities abroad, cross-border investments are expected to emerge as a prominent theme in Indian manufacturing M&A. 

With the integration of supply chains by Indian automotive firms to secure auto component and EV manufacturing capabilities, along with likely consolidation among electric vehicle OEMs, the automotive sector is expected to drive M&A in manufacturing. 

Additionally, planned government Production Linked Incentive (PLI) outlay of $3.2 billion from FY22–23 to FY26-27 is expected to incentivise firms to increase production capacities. This is expected to result in increasing inorganic activity by players within the automotive sector. 

Deloitte said that strong sectoral prospects in FinTech are expected to attract fresh investments to the sector, which has witnessed a slowdown since 2021. The Indian FinTech sector is expected to reach $150 billion in 2025, with a CAGR of 32 percent. The growth is expected to be led by emerging trends, such as AI-powered financial advisory, alternative finance, credit on UPI, etc. FinTech-bank alliances and mergers are also expected to grow, as FinTechs look at means to scale presence in regulated segments. 

According to Deloitte, PE in M&A is projected to stay consistent in 2024, with decreasing inflation and interest rate softening. Analysts anticipate that interest rates in India, having likely reached their peak, will gradually hold and consolidate in 2024.  

PE deal momentum is expected to start to recover and rise beyond 2024, in anticipation of the stable interest rates and record levels of dry powder of over $20 billion expected to be deployed. The energy sector is expected to emerge as a significant focus for PE, fuelled by sustained energy demand expansion and India’s favourable global positioning as a hub for renewable energy.

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Shares of Debt-ridden telecom operator Vodafone Idea Ltd. rose as much as 7% in early trading on Monday after the company concluded a mega capex deal over the weekend.

Vodafone Idea informed the exchanges on Sunday that it has concluded a mega $3.6 billion or ₹30,000 crore deal with Nokia, Ericsson and Samsung, for the supply of network equipment over a period of three years.

Vodafone Idea has continued with its existing long-term partners Nokia and Ericsson and also onboarded Samsung as a new partner, the company said in a regulatory filing on September 22.

The deal marks the first step towards the rollout of the company’s transformative three-year capex plan of $6.6 billion (₹55,000 crore). The capex program is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth.

The company said the new equipment will lead to efficiency gains in energy and thus lower operating costs. The supplies against these new long-term awards will start in the coming quarter. The top priority for the company is to expand the 4G coverage to 1.2 billion Indians, it said.

Post the recent equity raise of ₹24,000 crore and additional spectrum acquisition of ₹3,500 crore in June 2024 auction, the company has also executed some quick win capex, while simultaneously working on concluding these long-term contracts.

These quick wins were mainly by way of deployment of more spectrum on existing sites and also the roll out of some new sites. This is resulting in 15% boost in capacity and an increase in population coverage by 1.6 crore by end September, 2024.

Vodafone Idea will also be holding an analyst call to brief them about the current situation on the AGR dues on Monday.

The senior management of Vodafone Idea, including CEO Akshaya Moondra and CFO Murthy GVAS along with other management personnel will be participating in the conference call between 2:30 PM to 3 PM on Monday.

The development comes after the apex court dismissed petitions from several telecom operators, including Vodafone Idea and Bharti Airtel, concerning the re-computation of Adjusted Gross Revenue (AGR) dues.

The judgement had permitted the Department of Telecommunications (DoT) to include all non-telecom revenue in calculations of AGR.

Vodafone Idea’s current AGR dues stand at over ₹70,300 crore.

Shares of Vodafone Idea Ltd. are currently trading 7% higher at ₹11.2. The stock has declined over 35% so far in 2024.

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Shares of IIFL Finance rose 12% in early deals on Friday after the firm said the Reserve Bank of India(RBI) has lifted restrictions imposed on the company’s gold loan business. IIFL Finance stock surged 12.33% to Rs 555.25 against the previous close of Rs 494.30. Market cap of the firm climbed to Rs 22,972 crore.

In a year, the stock has fallen 3 per cent. Total 8.62 lakh shares changed hands amounting to a turnover of Rs 47.45 crore on BSE on Friday. 

In terms of technicals, the relative strength index (RSI) of IIFL Finance stands at 56.4, signaling it’s trading neither in the oversold nor in the overbought zone. IIFL Finance shares are trading higher than the 5 day, 10 day, 50 day, 100 day and 200 day moving averages. 

IIFL Finance stock has a one-year beta of 1.1, indicating high volatility during the period.

“RBI, through its communication dated September 19, 2024, has lifted the restrictions imposed on the gold loan business of the company. The RBI’s decision is effective immediately and allows the Company to resume the sanctioning, disbursal, assignment, securitisation, and sale of gold loans in compliance with all relevant laws and regulations,” said IIFL Finance in a stock exchange filing.

“The company is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained,” added IIFL Finance.

RBI had imposed the restrictions on March 4, 2024.

IIFL Finance is among the leading retail-focused diversified NBFCs in India, engaged in the business of loans and mortgages along with its subsidiaries – IIFL Home Finance and IIFL Samasta Finance.

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