Month: January 2025

Jindal Steel & Power Ltd (JSPL) share price plunged 13.82 per cent at Rs 723.95 a piece on the BSE in Friday’s intraday trade after the company’s profitability declined due to rising costs and compressed margins in third quarter of financial year 2024-25 (Q3FY25). 

The company reported a revenue of Rs 11,750.7 crore for the quarter, reflecting a marginal 0.4 per cent increase compared to Rs 11,700 crore Y-o-Y. Ebitda stood at Rs 2,184 crore, compared to Rs 2,843 crore Y-o-Y, with an Ebitda margin of 18.59 per cent, compared to 24.30 per cent Y-o-Y. 

However, adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) dropped by 23.2 per cent to Rs 2,183.9 crore from Rs 2,843 crore Y-o-Y, due to increased operational expenses and pricing challenges. Ebitda margin came in at 18.59 per cent in Q3FY25, compared to 24.30 per cent in Q3FY24.

Net profit declined 50.7 per cent Y-o-Y to Rs 950 crore in Q3FY25 compared to Rs 1,928 crore Y-o-Y. Sequentially, the profit grew 10.4 per cent against Rs 860 crore in Q2FY25.  

JSPL’s net debt rose to Rs 13,551 crore as of December 31, 2024, up from Rs 12,464 crore in the previous quarter, pushing its net debt-to-Ebitda ratio to 1.40x. 

The company’s steel production reached 1.99 million tonnes (MT), up 3 per cent Y-o-Y, while steel sales stood at 1.90 MT, marking a 5 per cent Y-o-Y increase. Exports accounted for 7 per cent of total sales. For the nine months ending December 2024, the company recorded a gross revenue of Rs 42,519 crore and a net profit of Rs 3,149 crore.

On the equities front, JSPL share price has underperformed the market, falling 23 per cent in the last six months, while rising 0.4 per cent in the last one year. In comparison, the BSE Sensex has slipped 5.7 per cent in the last six months, while rising 7.3 per cent in the last one year.  

JSPL has a total market capitalisation of Rs  77,781.72 crore. Its shares are listed at a price to earnings multiple of 15.20 and at an earning per share of Rs 50.15, according to BSE.  

At 10:09 AM, the stock price of the company was down 10.06 per cent at Rs 755.55 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 76,972.48 level.

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Ircon International shares rose 3.9 per cent on Friday, logging an intraday high at Rs 210.55 per share on BSE. The buying of the stock came after the company’s joint venture received an EPC contract worth Rs 631.2 crore. 

Around 11:08 AM, Ircon share price was up 3.23 per cent at Rs 209.15 per share on BSE. In comparison, the BSE Sensex was up 0.62 per cent at 77,233.92. The market capitalisation of the company stood at Rs 19,670.89 crore. The 52-week high of the stock was at Rs 351.65 per share and the 52-week low was at Rs 175.25 per share. 

The Amril-Ircon joint venture will construct rigid pavement and lined drain of selected roads under Imphal East Division (ED – 2) of total length of 122.209 km.  

“It is to inform that Ircon International Limited (Ircon) has been awarded an EPC contract in JV (Amril -Ircon) through Letter of Acceptance by Office of the Project Director, Externally Aided Projects (EAP), Public Works Department (PWD) Manipur,” the filing read.  

The project has to be completed in 36 months and is worth Rs 631.2 crore. In November, the company was assigned ‘IVR AAA’ rating for its Rs 9,000 crore long-term and short-term bank facilities by Infomerics Valuation and Rating. 

An ‘IVR AAA’ rating from Informerics means that the issuer has the highest level of safety and the lowest credit risk in terms of servicing financial obligations on time. The rating has been assigned to the company by Infometrics as a part of a regular rating exercise. 

Ircon International is a public sector undertaking (PSU) in India, primarily involved in the construction and development of infrastructure projects related to the railways. It’s a fully-owned government company under the Ministry of Railways and plays a major role in executing railway construction projects, including track laying, electrification, and the development of bridges, tunnels, and other railway-related infrastructure.

In the past one year, Ircon International shares have lost 14 per cent against Sensex’s rise of 7 per cent. 

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The total resource mobilisation from primary markets (equity and debt) for the nine months of the current fiscal 2024-25 (9M-FY25) – between April till December 2024 – stood at Rs 11.1 trillion, said the Economic Survey 2025. 

This amount, according to the survey, is 5 per cent more than the entire amount raised via the IPO route in FY24, and amounts to 25.6 per cent of gross fixed capital formation of private and public corporations during FY24. 

India’s share in global IPO listings, meanwhile, surged to 30 per cent in 2024, up from 17 per cent in 2023, making it the leading contributor of primary resource mobilisation globally.

The number of IPOs, the Economic Survey 2025 said, increased 32.1 per cent to 259 during April to December 2024 (9M-FY25) from 196 in the corresponding period of the previous year, while the amount raised almost tripled from Rs 53,023 crore to Rs 1.53 trillion in the same period.

“The mainboard platform witnessed a significant increase in issue size as the average IPO deal size rose to Rs 2,124 crore, up from Rs 814 crore in the entire FY24. In the case of small and medium enterprises (SMEs) IPOs, the average deal size increased to Rs 39 crore from Rs 31 crore during the same period,” the Economic Survey 2025 said.

Rising investor participation via SIPs

Looking ahead, analysts expect 2025 to be another blockbuster year for the primary markets with projections by Pantomath Capital Advisors, a Mumbai-based investment banking company, suggesting that fundraising via this route could surpass Rs 2 trillion mark. 

“Currently, 100 companies have filed draft offer letters with the Sebi, with many already receiving approval or awaiting clearance. This sets a promising tone for the year, underscoring strong market momentum and investor confidence in the upcoming IPOs,” said Mahavir Lunawat, managing director at Pantomath Capital Advisors. 

Demat accounts

The IPO frenzy in 2024 has seen a sharp rise in demat accounts, with the number of such accounts rising 33 per cent to 18.5 crore at the end of December 2024 on a year-on-year (YoY) basis, the Economic Survey 2025 said. There are 11.5 crore unique investors with demat accounts and 5.6 crore unique investors in mutual funds as of the end of December 2024.

“Higher investor participation has engendered a self-reinforcing cycle of strong market returns, bringing in even more investors. This, in turn, will eventually transform the securities market into a more diverse, inclusive, and robust platform for wealth creation,” the Economic Survey 2025 said. 

Qualified Institutional Placement (QIPs), meanwhile, emerged as the preferred equity fundraising mechanism for the corporates during FY25, the survey said, with an 11.4 per cent share in total capital raised. 

Resource mobilisation through rights issues, too, remained buoyant, with Rs 16,881 crore raised during April to December 2024, compared to Rs 6,538 crore in the corresponding period of the previous year, translating into an increase of around 158 per cent.

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The Securities and Exchange Board of India (Sebi) has delivered a major blow to financial influencers (finfluencers) by restricting their use of live stock market data in educational content. Under the new rule, announced through a circular on late Wednesday evening, stock market educators can only use stock prices with a three-month lag, effectively preventing them from offering real-time trading tips disguised as education. 

“A person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities. Such person should not be using the market price data of the preceding three months to speak/talk/display the name of any security including using any code name of the security in his/her talk/speech, video, ticker, screen share etc. indicating the future price, advice or recommendation related to security or securities,” the circular read. 

This move is expected to end the illegal advisory businesses that many finfluencers operate without Sebi registration. Sebi first restricted associations between registered and unregistered entities in its October 2024 circular, and the latest update on January 29 further tightens the rules. 

“These regulations have come into force with effect from August 29, 2024,” the market regulator said. 

Key points in Sebi’s latest circular state:

Stock market educators cannot use live stock prices – only data with a three-month lag.

Registered market entities cannot associate with finfluencers in any way that involves monetary or non-monetary compensation.

Investor education is allowed, but educators must not give investment advice or make performance claims without Sebi’s approval.

Educators cannot use stock names, codes, or price data from the past three months in any form that could imply investment advice.

Any entities found violating these rules risk penalties, suspension, or cancellation of their Sebi licence, the circular stated. 

“It is the responsibility of the persons regulated by Sebi to ensure that any person associated with them or their agent, directly or indirectly, does not engage in any of the above-mentioned two prohibited activities, directly or indirectly,” Sebi said. 

The rise of finfluencers on social media platforms has blurred the lines between financial education and investment advice, making it difficult to distinguish credible sources from misleading ones. Without access to live data, many finfluencers are likely to find it difficult to retain subscribers and students, as their business model relies heavily on real-time market speculation.

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Union Minister of Electronics and IT Ashwini Vaishnaw said the country’s large language model (LLM) is expected to be ready within the next 10 months. 

During a press conference on the India AI Mission on Thursday, Vaishnaw said, “We have created the framework, and it is being launched today. Our focus is on building AI models that maintain the Indian context and culture.” 

He said the project will be supported by the India AI Compute Facility, which has procured 18,693 GPUs to facilitate the creation of a LLM designed specifically for India, CNBC-TV18 reported. 

Vaishnaw emphasised India’s AI capabilities by comparing the country’s infrastructure to global benchmarks. “DeepSeek AI was trained on 2,000 GPUs, ChatGPT was trained on 25,000 GPUs, and we now have 15,000 high-end GPUs available. India now has a robust compute facility that will support our AI ambitions,” CNBC-TV18 quoted him as saying.

A shared compute facility with 18,000 GPUs has been launched, designed to be accessible to startups, researchers, and developers. Around 10,000 GPUs are already operational, he said.

“The technical partners started working and investing well before the finalisation. This facility will be available for everyone to use,” Vaishnaw added. 

GPU providers for this initiative include Jio Platforms, Tata Communications, Yotta, and NextGen Data Centre. For comparison, DeepSeek was trained using 2,500 GPUs.

India’s own AI model

A key goal of the India AI Mission is to develop a domestically-produced AI model tailored to the country’s linguistic and cultural diversity. The government has called for proposals from AI startups, with six major developers now working on models expected to be ready in 4–6 months, with a maximum timeline of 8–10 months.

“With algorithmic efficiency, we can create these models in a much shorter time frame. We will have a world-class foundational AI model in just a few months,” the minister said.

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