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India’s largest savouries and snacks business Haldiram’s has got another potential global buyer eyeing a stake in it. 

Temasek Holdings Pte is in talks to buy a minority stake in Haldiram Snacks Pvt Ltd, Bloomberg reported citing sources. 

The Singapore state investor is holding preliminary talks to buy from 10 percent to 15 percent in Haldiram, the report said. The investment may serve as a stepping stone towards a potential initial public offering of the company, it added. 

Haldiram’s has been making in the news after major private equity firms like Blackstone, Bain Capital and Singapore’s Temasek expressed interest in buying a piece of the lucrative snacking business. 

On May 14, reports emerged that Blackstone in partnership with Abu Dhabi Investment Authority (ADIA) and GIC, aimed to bid for stake acquisition of up to 76 per cent of Haldiram’s Snacks Food Pvt Ltd. 

A global consortium led by top private equity (PE) firm Blackstone, along with Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC, have submitted the bid last week for up to 76 percent stake in Haldiram’s Snacks Food, according to reports. 

The Blackstone deal is going to put Haldirams market valuation between Rs 70,000 crore and Rs 78,000 crore, as per the report. The deal will give Blackstone the majority stake, the controlling power and a perpetual licence of Haldiram’s product business, according to the report. 

Haldiram’s business 

The food chain is the combined packaged snacks and foods business of the Delhi and Nagpur factions of the Agarwal family. 

While Haldiram Foods International is led by the Nagpur faction, Haldiram Snacks is led by the Delhi faction. The two entities are set to be merged to create a new entity, Haldiram Snacks Food. 

The Nagpur-based faction registered Rs 3,622 crore in revenue in FY22. The Delhi-based Haldiram Snacks Private Limited clocked Rs 5,248 crore in sales in the same fiscal year. 

There have been other attempts in the past to acquire the food chain, especially by Venture Capitalist firms like Bain Capital, Warburg Pincus and General Atlantic, according to reports. 

Established in 1937 as a retail sweets and savoury shop in Bikaner, its products are now available in more than 80 countries. 

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OpenAI, the company behind ChatGPT, has raised $6.6 billion from investors, which could value the company at $157 billion and cement its position as one of the most valuable private companies in the world.

The funding has attracted returning venture capital investors including Thrive Capital and Khosla Ventures, as well as OpenAI’s biggest corporate backer Microsoft, and new participation from Nvidia.

The closing of the funds coincides with the company’s ongoing restructuring efforts and executive changes, including the abrupt departure of its longtime Chief Technology Officer, Mira Murati, last week.

Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s state-backed investment firm MGX also participated in the round.

OpenAI Chief Financial Officer Sarah Friar told employees on Wednesday that the company will be able to provide liquidity for them through a tender offer to buy back their shares in the company following the funding, although no details and timing have been decided, according to a source. Earlier this year, the company allowed some employees to cash out their shares at a valuation of $86 billion.

Thrive Capital, which committed about $1.2 billion from a combination of its own fund and a special purpose vehicle for smaller investors, negotiated the option to invest another $1 billion next year at the same valuation if the AI firm hits a revenue goal, sources added.

Apple, which was in talks to invest in OpenAI, did not end up joining the funding, sources said, who requested anonymity to discuss private matters. Apple did not immediately respond to a request for comment.

The funding came in the form of convertible notes, and the conversion to equity hinges on a successful structural change into a for-profit that would no longer be controlled by the non-profit board and the removal of cap on returns for investors.

The personnel changes haven’t deterred enthusiasm from most investors, who are anticipating significant growth based on the projections by OpenAI CEO Sam Altman.

The company is on pace to generate $3.6 billion in revenue this year on mounting losses of over $5 billion. It projects major revenue jump next year to $11.6 billion, according to sources familiar with the figures.

Investors have also secured some protections as OpenAI undergoes the complex corporate restructuring that would grant Altman equity. The talks are still ongoing, and no timeline has been determined yet.

Investors have negotiated terms that would allow them to claw back their capital or renegotiate the valuation if the changes are not implemented within two years, sources said.

OpenAI’s meteoric rise in terms of product popularity and valuation has captured the world’s imagination. Since the launch of ChatGPT, it has attracted 250 million weekly active users. The company’s valuation has also risen from $14 billion in 2021 to $157 billion as it grew revenue from zero to $3.6 billion, far exceeding Altman’s own projections at the time.

The company has told investors it is still actively pursuing artificial general intelligence (AGI), meaning developing AI systems that surpass human intelligence, as it ramps up commercialization and tries to be profitable.

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In a move aimed at safeguarding small investors and enhancing market stability, the Securities and Exchange Board of India (Sebi) has unveiled a series of new measures to strengthen the index derivatives framework.

With the introduction of these rules, the landscape of equity derivatives trading in India is set to undergo notable changes, particularly for retail participants.

Here’s a comprehensive look at the key changes and what they mean for investors.

Reduction of weekly expiries: Starting November 20, 2024, Sebi will reduce the number of weekly expiries for index derivative contracts to one per benchmark index per exchange. This means that exchanges will now offer only six weekly contracts each month instead of the current 18. The goal is to curb speculative trading and limit the risks associated with uncovered or naked option selling.

Increased contract sizes: The minimum trading amount for derivatives will rise from the current range of Rs 5–10 lakh to Rs 15 lakh. This increase aims to ensure that investors take on appropriate risks while participating in the derivatives market. Sebi has stated that the contract value will be adjusted to fall between Rs 15 lakh and Rs 20 lakh in the future.

Higher margin requirements: To address the high volatility observed on expiry days, Sebi will implement an additional extreme loss margin (ELM) of 2% for all open short options on the day of expiry. This measure is intended to protect investors from extreme market fluctuations, particularly during high-volume trading sessions.

Upfront collection of premiums: Effective February 1, 2025, brokers will be required to collect option premiums upfront. This shift is aimed at discouraging excessive intraday leverage among investors and ensuring that they have sufficient collateral to cover their positions.

Removal of calendar spread benefits: The long-standing practice of calendar spreads—offsetting positions across different expiries—will be eliminated for contracts expiring on the same day. This change is intended to reduce the potential for speculative trading that has been rampant on expiry days.

Intraday monitoring of position limits: From April 1, 2025, stock exchanges will begin intraday monitoring of position limits for equity index derivatives. This means that position limits will be checked multiple times throughout the trading day, reducing the risk of traders exceeding permissible limits unnoticed.

What does it mean for retail investors?

These changes are particularly significant for retail investors who often engage in derivatives trading. Here’s how these new measures will impact them:

Curbing speculation: The increase in contract sizes is expected to deter speculative trading, especially among small retail participants who may not have the financial capacity to absorb larger losses.

Lower participation in options trading: The reduction in the number of weekly expiries and the removal of calendar spread benefits are likely to decrease retail participation in options trading. Analysts believe this may help stabilise the market by reducing high-frequency trading and speculative behaviour.

Gradual implementation for market stability: The phased rollout of these measures is designed to prevent sudden shocks to the market, allowing participants to adapt to the changes over time. This gradual tightening could lead to a healthier market environment overall.

Impact on trading strategies: Retail investors will need to reassess their trading strategies in light of these new rules, particularly regarding the timing of rollovers and the management of margin requirements.

Simply put, Sebi’s recent measures to tighten the rules around equity derivatives are a clear indication of the regulator’s commitment to protecting small investors and maintaining market integrity.

While these changes may present challenges for some retail participants, they are ultimately aimed at fostering a more stable and sustainable trading environment.

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Oil markets reacted sharply after the Israeli military reported that Iran had fired missiles at Israel. Air raid sirens sounded across the country, with residents urged to stay near bomb shelters. The Israeli government had warned earlier of severe consequences if Iran escalated its involvement in the conflict.

The missile attacks followed a day of rocket fire from Lebanon and limited Israeli ground operations in southern Lebanon. The heightened tensions have raised concerns about broader Middle East instability, with potential implications for global energy supplies.

Crude oil prices surged on the news. West Texas Intermediate (WTI) jumped 5%, surpassing $71 per barrel after an earlier dip of 2.7%. Brent crude, the global benchmark, climbed above $75 a barrel. The involvement of Iran, an OPEC member and key player in the region, heightened fears of oil supply disruptions from an area that supplies nearly a third of the world’s crude.

“Middle East tensions clearly have markets on edge,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “Oil prices are up, bonds are up, gold is up, stocks are down. That’s the classic geopolitical reaction.”

Despite recent escalations, oil flows from the region have not been significantly affected, but analysts are wary of further disruptions. “The oil market is highly sensitive to geopolitical risks in this region, and any disruption could lead to higher energy prices,” said David Lin, CEO of Linvest21.AI.

The ripple effects extended to equity markets, with the S&P 500 falling as much as 1.4% during the day. Technology giants such as Apple, Nvidia, and Microsoft were among the biggest drags on the index. The Cboe Volatility Index, commonly referred to as the VIX, surged to its highest level in nearly a month.

“The increase in oil prices due to geopolitical tensions will cause investors to get concerned about a rise in inflation,” said Joseph Saluzzi, co-head of equity trading at Themis Trading. “A larger conflict could also affect supply chains, which wouldn’t be good for inflation.”

Analysts are closely watching developments. Sarah Hunt, chief market strategist at Alpine Woods Capital Investors, noted, “People start to worry that the port strike coupled with Iranians saying they’re going to start dropping ballistic missiles on Israel could be negative for growth.”

The situation remains fluid, with market participants awaiting further developments in the Middle East.

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Shares of NTPC Limited gained over a percent to Rs 448 in the morning of October 1, extending the gains for a third trading session in a row after its subsidiary company NTPC Green Energy signed a memorandum of understanding with the Rajasthan government for a 25-gigawatt renewable energy project.

Last week, the subsidiary entered into a joint venture agreement with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd. (MAHAPREIT) to undertake the development of 10 GW of renewable energy parks in Maharashtra or any other state of India, NTPC said in an exchange filing on September 26.

On September 19, the company filed a draft red herring prospectus (DRHP) with SEBI for its highly anticipated Rs 10,000 crore initial public offering (IPO), poised to be one of India’s largest in 2024 (after Hyundai). The public issue will consist entirely of fresh equity shares, with no promoter entities offering any for sale.

A portion of the IPO, up to 10 percent, will be reserved for existing shareholders of NTPC Ltd. Investors holding NTPC shares on the date of the red herring prospectus (RHP) filing will be eligible for this quota, offering them a chance to participate.

The company’s management aims to unlock significant value through the listing, which is expected to launch by the end of 2024, following the roadmap outlined in May. This Rs 10,000 crore offering will be the largest by a PSU since Life Insurance Corporation’s Rs 21,000 crore IPO in May 2022. Proceeds from the IPO will support NTPC Green Energy’s ongoing and future projects, including investments in solar energy, green hydrogen, and green ammonia.

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