Month: July 2025

Mukesh Ambani-led Reliance Industries Ltd (RIL) is reportedly preparing to launch India’s largest-ever Initial Public Offering (IPO) by listing its telecom arm, Jio Infocomm, aiming to raise a staggering ₹52,200 crore (approximately $6 billion). If successful, this IPO will eclipse previous records, including Hyundai Motor India’s ₹28,000 crore offering, and could rank among the largest global IPOs of the year.

Key Highlights

• IPO Size: ₹52,200 crore
• Stake Offered: 5% of Jio Infocomm
• Valuation Target: Over $100 billion
• Expected Launch: Early 2026 (tentative, subject to market conditions)
• Regulatory Status: Informal talks underway with SEBI for approval

Strategic Rationale

Reliance is seeking a SEBI exemption from the mandatory 25% public float rule, citing concerns over market depth and liquidity. The company argues that the Indian market may not be able to absorb such a large offering at once, hence the proposal to list just 5% of Jio.

This IPO would also provide an exit opportunity for global investors like Meta Platforms and Alphabet Inc. (Google), who collectively invested over $20 billion in Jio Platforms back in 2020.

Why It Matters

• Market Impact: A successful listing could significantly boost investor sentiment and attract foreign capital.
• Digital Expansion: Funds raised may fuel Jio’s next wave of growth in 5G, AI, and digital services.
• Investor Opportunity: Retail and institutional investors could gain exposure to one of India’s most dominant telecom players.

What’s Next?

While Reliance has not made an official announcement, all eyes are on its upcoming Annual General Meeting (AGM), expected in August 2025. Analysts anticipate key updates on the IPO timeline, valuation, and regulatory progress.

Conclusion

The proposed Jio IPO isn’t just a financial milestone—it’s a bold statement about India’s evolving digital economy. If approved, it will redefine capital markets and set a new benchmark for corporate listings in the country.

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Lenskart Solutions Ltd, India’s leading omnichannel eyewear brand, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), initiating the process for its public listing. The IPO is expected to be one of the largest by a consumer tech company this year.

IPO Structure and Size

The proposed IPO includes:

• Fresh Issue: ₹2,150 crore
• Offer for Sale (OFS): Up to 13.22 crore equity shares by existing shareholders

The total issue size is estimated between ₹7,500 crore and ₹8,500 crore, depending on market conditions and investor response.

Key Shareholders Offloading Stake

The OFS will involve partial stake sale by:

• Founders: Peyush Bansal, Neha Bansal, Amit Chaudhary, Sumeet Kapahi
• Institutional Investors: SoftBank, Kedaara Capital, Alpha Wave Ventures, MacRitchie Investments, Schroders Capital, PI Opportunities Fund

This move aligns with broader investor exit strategies and regulatory norms.

Pre-IPO Placement Option

Lenskart may consider a pre-IPO placement of ₹430 crore. If executed, the fresh issue size will be reduced accordingly.

Use of Proceeds

The company plans to deploy the net proceeds toward:

• Setting up new Company-Owned Company-Operated (CoCo) stores across India
• Lease, rent, and license payments for retail expansion
• Investment in technology and cloud infrastructure
• Brand marketing and business promotion
• Potential inorganic acquisitions
• General corporate purposes

Financial Performance (FY25)

• Revenue: ₹6,625 crore (↑22% YoY)
• Net Profit: ₹297 crore (vs. ₹10 crore loss in FY24)
• EBITDA: ₹1,115 crore (92% CAGR over 3 years)
• EBITDA Margin: 17%
• International Revenue: ₹2,638 crore (↑17% YoY)

The company sold over 27 million eyewear units to 12.4 million customers in FY25, with manufacturing capacity expanding significantly.

Business Overview

Founded in 2008, Lenskart operates a hybrid retail model with:

• 2,723 stores globally, including 2,067 in India
• Manufacturing facilities in Bhiwadi (Rajasthan) and Gurugram (Haryana)
• A portfolio of brands including John Jacobs, Owndays, Vincent Chase, Lenskart Air, and Hooper Kids

The company targets India’s growing refractive error population, projected to reach 943 million by FY30.

Strategic Positioning

Lenskart’s omnichannel strategy, tech-driven operations, and international footprint position it as a dominant player in the eyewear segment. Its acquisition of Japanese brand Owndays in 2022 has further strengthened its presence in Asia-Pacific markets.

Lead Managers

The IPO is being managed by:

Intensive Fiscal Services

Kotak Mahindra Capital

Morgan Stanley India

Avendus Capital

Citigroup Global Markets India

Axis Capital

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India’s largest depository, National Securities Depository Ltd (NSDL), is set to launch its much-anticipated initial public offering (IPO) on July 30, 2025. The issue has garnered strong interest in the grey market, signaling robust investor sentiment.

1. IPO Dates

• Opening Date: July 30, 2025
• Closing Date: August 1, 2025
• Allotment Finalization: August 4, 2025
• Listing Date: August 6, 2025

2. Price Band

• ₹760 to ₹800 per equity share
• Face value: ₹2 per share
• Employee Discount: ₹76 per share

3. Issue Size

• ₹4,011.60 crore
• Entirely an Offer for Sale (OFS) of 5.01 crore shares
• No fresh issue; proceeds go to selling shareholders

4. Grey Market Premium (GMP)

• GMP as of July 29: ₹135–₹137
• Indicates potential 17% listing gain over upper price band
• GMP is speculative and may fluctuate

5. Lot Size & Investment

• Minimum lot: 18 shares
• Minimum investment: ₹13,680 at lower band; ₹14,400 at upper band
• Bids in multiples of 18 shares

6. Shareholder Divestment

Major selling shareholders include:

• IDBI Bank (26.01%)
• National Stock Exchange (24%)
• SBI, HDFC Bank, Union Bank of India
• SUUTI (Specified Undertaking of the Unit Trust of India)

This divestment aligns with SEBI’s ownership norms for market infrastructure institutions.

7. Registrar & Lead Managers

• Registrar: MUFG Intime India Pvt Ltd (Link Intime)
• Lead Managers: ICICI Securities, Axis Capital, HSBC, IDBI Capital, Motilal Oswal, SBI Capital

8. Financial Snapshot

• Market Cap: ₹16,000 crore
• FY25 ROE: ~17.1%
• ROCE: ~22.7%
• EBITDA Margin: ~24%
• Price-to-Book: ~8

9. Business Strengths

• Largest depository by demat value and active instruments
• 86.8% market share in demat value as of March 2025
• Strong tech infrastructure and diversified fintech subsidiaries (NDML, NPBL)
• Services include e-voting, KYC, insurance repositories, and blockchain-based platforms

10. Analyst Review

Brokerages recommend a ‘Subscribe’ rating, citing:

Long-term growth potential from India’s capital market expansion

Dominant market position

High entry barriers

Strong institutional backing

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India’s largest paint manufacturer, Asian Paints Ltd, delivered mixed first-quarter results for FY26. While revenue and profit dipped slightly year-on-year, stronger-than-expected volume growth and sequential improvement helped lift investor sentiment.

Key Financial Highlights

Metric	Q1 FY26	YoY Change	QoQ Change
Revenue	₹8,924 crore	↓ 0.2%	↑ 7%
Net Profit	₹1,100 crore	↓ 6%	↑ 59%
EBITDA Margin	18.2%	↓ 70 bps	Improved from 17.1%

Volume Growth: A Positive Surprise

• Domestic decorative segment volume grew by 3.9%, exceeding analyst estimates of 2–3%
• Industrial coatings revenue rose 8.8%, led by auto and protective coatings
• International business delivered 8.4% value growth, driven by UAE, Egypt, and South Asia

This marks a recovery from the muted volume expansion seen in the last two quarters.

Management Commentary

“We saw marginal improvement in urban demand, though monsoons slowed momentum in June. Our focus remains on innovation and brand saliency as we navigate current challenges.” — Amit Syngle, MD & CEO, Asian Paints Ltd

The company acknowledged ongoing stress in household discretionary spending and sluggish demand in the home décor category. However, its premium retail initiative, Beautiful Homes, continues to gain traction.

Stock Snapshot

• Share price as of July 29: ₹2,400.20, up 1.72% intraday
• Recovered from a recent low of ₹2,325 earlier in July
• Year-to-date gain: approximately 4.5%
• Six-month gain: around 8%

The upbeat volume performance and sequential profit rebound contributed to the stock’s recovery.

Outlook: Factors to Watch

Global expansion and home décor synergies

Urban demand trajectory post-monsoon

Margin impact from competitive intensity and operating costs

Product mix strategies and price actions

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In a move that has stirred the Indian IT sector, Tata Consultancy Services (TCS) has announced plans to cut approximately 12,000 jobs, or 2% of its global workforce, during FY26. Contrary to speculation, CEO K Krithivasan has firmly stated that artificial intelligence is not the reason behind this decision.

What’s Driving the Layoffs?

Krithivasan emphasized that the layoffs stem from skill mismatches and redeployment challenges, not AI-led productivity gains. Despite extensive upskilling efforts—training over 5.5 lakh employees in basic AI and 1 lakh in advanced AI skills—many employees, especially at mid-to-senior levels, have struggled to transition into tech-heavy roles.

“This is not because of AI giving some 20% productivity gains. This is driven by where there is a skill mismatch or where we think we have not been able to deploy someone,” said Krithivasan.

Structural Shifts in Delivery Model

TCS is undergoing a strategic transformation, moving away from the traditional waterfall project management approach to a more agile, product-centric model. This shift has reduced the need for conventional project and program managers, particularly those in layered leadership roles.

“Earlier, in waterfall models, we had multiple leadership layers. That’s changing,” Krithivasan explained.

Who Will Be Affected?

The layoffs will be phased across FY26, primarily impacting:

• Mid-level and senior professionals
• Junior staff with prolonged bench time (not deployed on any project)

TCS has also revised its HR policies, mandating 225 billable days annually and capping bench time at 35 days, further tightening deployment criteria.

Support for Affected Employees

TCS has pledged to handle the layoffs with compassion and care, offering:

• Notice-period pay
• Severance packages
• Extended health insurance
• Mental health counselling
• Outplacement support

Krithivasan assured that impacted employees will be given opportunities for internal redeployment before final decisions are made.

Future Outlook

Despite the layoffs, TCS remains committed to hiring high-quality talent and investing in new technologies and markets. The company views this restructuring as essential to becoming a future-ready organization, capable of navigating rapid technological shifts and evolving client demands.

Conclusion TCS’s decision to cut 12,000 jobs is not a reaction to AI automation, but a strategic recalibration to align talent with emerging business models. As the IT landscape evolves, adaptability and continuous learning will be key—not just for companies, but for professionals across the board.

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