Month: March 2025

The Bombay High Court on Monday discharged Gautam Adani, chairman of Adani Enterprises Limited (AEL), and managing director Rajesh Adani from a Serious Fraud Investigation Office (SFIO) case concerning alleged manipulation of AEL’s share prices, reported Bar and Bench. 

Justice Rajesh N Laddha quashed a sessions court’s order that had refused to clear the Adanis and AEL from the long-standing case, which accused them of market regulation violations amounting to Rs 388 crore. 

The high court’s ruling came after the Adanis and AEL challenged the sessions court’s decision. Their appeals were argued by senior advocates Amit Desai and Vikram Nankani, who maintained that there was no basis to continue proceedings against them.

The case traces back to a 2012 chargesheet filed by the SFIO, alleging that AEL and the Adanis had manipulated share prices in collaboration with stockbroker Ketan Parekh, a key figure in India’s largest stock market scandal of 1999-2000. 

In 2014, a magistrate court had discharged AEL and the Adanis. However, this was overturned in November 2019 by a sessions court in Mumbai, which, on a revision plea, ruled that the SFIO’s investigation “prima facie” showed unlawful gains of Rs 388.11 crore by Adani Group promoters and Rs 151.40 crore by Ketan Parekh through alleged manipulation of AEL shares.

Sessions judge D E Kothalikar had then held that there was sufficient ground to proceed against the Adanis. Following this, the high court stayed the sessions court order in December 2019, and the stay was extended repeatedly until the final verdict on Monday. 

In February 2023, the high court questioned the SFIO—an agency under the Union Ministry of Corporate Affairs—about its delay in pursuing the case, noting there had been no hearing since February 10, 2022, when the interim stay was extended. The court asked whether the lack of action was due to the “scenario outside”. 

At that time, the Adani Group was under public scrutiny after US-based firm Hindenburg Research released a report accusing the conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades”.

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Renewable energy accounted for 22.49% of the total electricity generation in the country in 2024-25 (till January), the Union ministry of new and renewable energy informed the Rajya Sabha on Tuesday.

The information was provided by Shripad Yesho Naik, Union minister of state (MoS) for renewable energy in a written response to questions by CPI MP V Sivadasan.

Naik had said, on February, 11 that in line with Prime Minister Narendra Modi’s announcement at COP26, the ministry is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030. To be sure, generation is the amount of electricity produced over a period of time, while capacity is the maximum amount of electricity that can be produced.

Over the last nine years, contribution of the renewable energy sector to total energy generation increased from 17.28% in 2014-15 to 20.75% in 2023-24, according to the Renewable Energy Statistics Report 2023-24. In 2022-2023, the report states that renewable energy accounted for 22.61% of total electricity generation.

According to India’s updated nationally determined contribution (essentially, emissions reduction target) under the Paris Agreement in August 2022, it aims to reduce emissions intensity of its GDP to 45% by 2030 from the 2005 level, and increase the share of non-fossil fuel-based energy resources to 50% (500GW) of its installed power generation capacity by 2030. India is yet to update its NDC for 2035 period.

On Tuesday, Naik also responded to questions on increase in solar power capacity and manufacturing.

India’s solar power sector has witnessed an increase in capacity over the past decade, rising from 2.82 GW in 2014 to 100 GW in 2025, he said in response to questions by BJP MP Jaggesh.

“India has also made significant strides in solar manufacturing. In 2014, the country had a limited solar module manufacturing capacity of just around 2 GW. Over the past decade, this has surged to 67 GW, as enlisted under the Approved List of Models and Manufacturers,” he said.

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Global brokerage firm CLSA has an ‘Outperform’ rating on IndusInd Bank but has lowered its price target from ₹1,300 to ₹900 per share. The revised price target suggests a potential upside of 31% from current levels.

The foreign brokerage wrote in its note that the past few days have been turbulent for the bank, starting with a one-year extension for the MD, followed by the disclosure of a ₹1,500 crore net worth hit due to an accounting gap.

This has naturally raised investor concerns about the possibility of further negative developments.

CLSA cautioned that uncertainty may persist over the next two to three quarters, with fears of additional financial issues and questions surrounding management stability.

The brokerage also mentioned that appointing a PSU banker as MD could further dampen investor sentiment.

Additionally, the potential invocation of the promoter’s pledged shares by lenders could add to the uncertainty.

However, CLSA believes that, over time, the bank’s fundamentals will take over.

In the near term, the brokerage said that two key positives — a recovery in the microfinance segment and improved banking system liquidity, which, along with potential rate cuts, could provide some relief to margins.

Citi also has a ‘Buy’ rating on IndusInd Bank, but cut its price target to ₹1,160 from ₹1,378 earlier. It said that the recent developments has led them to cut IndusInd Bank’s earnings estimates for financial year 2025 by 25%.

Shares of IndusInd Bank crashed 27% on March 11, after the Mumbai-based private lender reported some deficiencies in its derivatives accounting transactions prior to April 1, 2025. Internal estimates anticipate a hit of ₹1,577 crore due to this issue.

The fall led to a market capitalisation erosion of close to ₹20,000 crore and the stock also entered the F&O ban.

The bank’s MD & CEO Sumant Kathpalia assured investors that IndusInd Bank will turn in a profit during the March quarter despite this hit and that the issue is a one-off in a recent interaction with CNBC-TV18.

Shares of IndusInd Bank saw a marginal recovery on Wednesday, when the stock saw some short-covering as it was in the F&O ban, which means no new positions can be created in the stock.

The stock settled 4.4% higher on Wednesday at ₹684.7 apiece. The stock is now under Stage 1 of the Short-term ASM framework. The margin rate applicable under this stage is 1.5 times the existing margin, or 40% and is capped at 100%.

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Reliance Jio and Bharti Airtel have signed agreements with SpaceX to distribute Starlink’s satellite internet services in India. The deals involve selling Starlink’s equipment through Jio and Airtel’s retail networks, while Jio will also provide customer service, installation, and activation support.

Additionally, the partnership will focus on delivering high-speed internet to businesses, schools, healthcare centres, and remote communities across India.

However, these agreements are subject to regulatory approval. SpaceX is still awaiting permission from the government to officially launch Starlink’s services in the country.

Dayanand Mittal, an analyst at JM Financial Research, said, “As of now, the agreement seems limited to Bharti and Jio distributing Starlink’s satellite broadband services through their extensive retail network, mainly for B2C and B2B customers in rural and remote areas. However, in the future, Starlink may also collaborate with telecom companies in the field of direct-to-cell satellite services, similar to how it has partnered with telcos in several countries worldwide.”

HOW STARLINK FITS INTO INDIA’S TELECOM MARKET

Starlink’s primary focus is connecting rural and hard-to-reach areas using satellite technology. Analysts believe that the partnership with Jio and Airtel does not compete with their existing broadband services, such as Jio Fiber and Airtel Xstream Fiber.

Instead, it is expected to complement their business by expanding internet access to places where laying fibre-optic cables is difficult or expensive.

Mittal further added, “Given that Starlink’s satellite internet is primarily for rural and remote regions, this agreement complements rather than competes with Bharti and Jio’s broadband business. It will help in expanding high-speed internet access to areas that are otherwise difficult to reach.”

Currently, both Jio and Airtel have their own satellite broadband venturesAirtel through Eutelsat OneWeb and Jio through SES. The agreement with Starlink adds another layer of collaboration in the satellite internet space. In the future, there is also potential for direct-to-mobile satellite services, similar to what Starlink has done with telecom providers in other countries.

JM Financial Research said in a report, “Satellite internet plans also come with data caps and limited speeds, whereas Jio and Airtel provide unlimited data and higher speeds. Hence, satellite internet pricing needs to reduce sharply to become competitive in the price-conscious Indian market.”

Since Starlink’s services are more expensive and offer lower speeds, analysts believe they are unlikely to attract a large number of urban users. Instead, it will remain a solution for areas with no other internet options, such as hilly regions, remote villages, and islands.

IMPACT ON INDIAN TELECOM COMPANIES

The impact of Starlink’s entry on Jio, Airtel, and Indus Towers is expected to be limited. Since satellite broadband is expensive and not a direct substitute for fibre or mobile networks, Jio and Airtel will continue to dominate India’s telecom market.

Mittal said, “We continue to believe that Starlink’s satellite broadband services pose a limited threat to telcos’ home broadband business given its higher pricing and limited speed. Further, Starlink’s direct-to-cell satellite services are also unlikely to disrupt telcos’ key wireless business given its dependence on telecom companies and its inferior performance.”

According to JM Financial Research, the home broadband segment contributes only 6 to 10% to Jio and Airtel’s expected earnings by FY30. Since Starlink is unlikely to disrupt this market significantly, there is no major financial risk to these companies.

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Shares of Vodafone Idea Ltd. and Indus Towers Ltd. are among the worst performing stocks on the Nifty 500 index on Wednesday, March 12. While shares of Indus Towers are down 7%, those of Vodafone Idea are down 6%.

Recent developments saw peers of Vodafone Idea, Jio Platforms and Bharti Airtel announcing tie-ups with Elon Musk’s SpaceX to bring Starlink services to India.

In response, shares of Reliance Industries are continuing their rebound from their recent lows. Bharti Airtel shares had opened higher but have now turned negative.

Starlink is an advanced internet systems that enables video and internet services at the most remote locations. Starlink uses Low-Earth Orbit satellite network to provide internet access to its users. This is different from traditional networks that either rely on towers or underground cables for network.

Additionally, based on the recently released telecom data, Vodafone Idea’s subscriber base narrowed by another 1.71 million users during the month of December to 207.25 million. This was higher than the 1.5 million subscribers it lost in November.

Vodafone Idea’s market share also fell to 18.01% from 18.19% earlier.

Last month, brokerage firm Motilal Oswal had written in a note that the stabilisation of subscriber losses is the single-most important factor for Vodafone Idea’s survival over the long-term.

Vodafone Idea is embarking on a significant capex cycle over the next two to three years to bridge the network gap with peers. “However, we believe that Vodafone Idea’s capex plans are contingent on a debt raise and further relief from the government,” Motilal Oswal said in its note.

Out of the 21 analysts covering Vodafone Idea, 12 of them have a “sell” rating on the stock, while four have a “buy” recommendation. The rest, say “hold.”

For Indus Towers, 13 out of the 24 analysts have a “buy” rating on the stock, while five have a “sell” rating.

Shares of Vodafone Idea are now below the mark of ₹7 after Wednesday’s 6% fall. The stock is now down 64% from its 2024 peak.

Shares of Indus Towers are down 6.7% at ₹318.45. The stock is down 31% from its recent peak of ₹460.

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