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The Indian economy will likely grow faster at 7.1 percent in 2024 from 6.8% projected earlier, Moody’s Analytics noted in its new Asia Pacific outlook released on September 24.

While the research firm kept the country’s growth forecast unchanged at 6.5 percent for 2025, it projected a faster growth of 6.6 percent in 2026.

“After a strong post-pandemic rebound of 7.8% in 2023, Indian GDP growth will slow to 7.1% in 2024 and 6.5% in 2025,” Moody’s Analytics said.

The firm predicted better inflation outcomes as well, as it reduced India’s inflation forecast to 4.7 percent from the 5 percent projected earlier.

India’s inflation remained below 4 percent in July and August as a favourable base kept prices contained.

The 2025 and 2026 forecast was unchanged at 4.5 percent and 4.1 percent, respectively.

The Reserve Bank of India expects inflation to decline to 4.5 percent in FY25.

A poll had projected that the central bank is unlikely to move on rates in the upcoming meeting, and the first cut of 25 bps is likely to follow in December.

RBI’s US counterpart, the Federal Reserve, had recently cut the policy rate by 50 bps to stave off recession fears.

For the APAC region, Moody’s raised 2025 forecast to 4 percent from 3.9 percent projected earlier. The APAC economies are expected to log 3.9 percent growth in 2024, it said.

“Exports have been a key driver for the region, but growth rests on an unstable footing. Key export drivers such as chips are losing steam. Global goods demand has been soft. And China’s policy-led ramp-up in exports has sparked protectionism abroad,” Moody’s said.

It noted that China is expected to slow more than anticipated to 4.7 percent, compared with the projected 4.9 percent earlier.

China’s central bank released a host of measures to boost the economy on September 24.

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Swiggy, the online food ordering and delivery company, has, as per reports, received the approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) in November. Founded in 2004, Swiggy is headquartered in Bangalore and operates in more than 580 cities. 

The company, which is backed by investors such as Prosus, SoftBank, and Accel and valued at $9.3 billion as of August 2023, submitted its offer document on April 30 this year using the confidential pre-filing route, meaning details have been kept under wraps for now.

However, reports suggest Swiggy is looking to raise ₹11,000 crore with a fresh issue worth ₹5,000 crore, Business Standard reported. 

SEBI introduced the concept of confidential filings in November 2022. Common in US markets, under this route, the issuer company is allowed to keep its offer document private by the pre-filing route until it firms up its IPO plan. The direct-to-home platform, Tata Play (formerly Tata Sky), was the first firm to file confidential papers with SEBI for an IPO.

Before the IPO hits the market, Swiggy must place its updated draft red herring prospectus (UDRHP) before the public for at least 21 days. During this window, the public is allowed to provide feedback on the offer document, and after that, the firm can proceed with its IPO.

Swiggy IPO: Huge rush for a share of pie

As per reports, several high-profile people have bought stakes in Swiggy in the run-up to its public issue. In August, The family office of Bollywood superstar Amitabh Bachchan has picked up a small stake in Swiggy. Motilal Oswal Financial Services chairman Raamdeo Agrawal also acquired a stake in Swiggy, the report added. 

A week ago, Modern Insulators announced that it had brought 1,38,800 shares, representing a 0.007% stake in Swiggy at ₹360 per share. The transaction value stands at ₹4.99 crore.

The company, which has a market valuation of ₹710 crore, has brought the equity as a “long-term investment.” Besides investment, Modern Insulators’ promoters do not have any interest in Swiggy Ltd, the exchange filing said.

Further, actor Madhuri Dixit and Innov8 founder Ritesh Malik have invested in Swiggy, according to a report. The duo purchased shares worth ₹1.5 crore each from the secondary market.

If things go as planned, Swiggy will become the second food delivery firm to list on the stock exchanges, following Zomato. 

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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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