On a day when Alipay sold its Rs3,337 crore to fully exit Zomato, a slew of global institutions lined up to absorb the supply in the market. This is despite the fact that the stock price of Zomato has more than doubled since the start of 2023. Some of the big players that lined up to absorb the stake were Goldman, Vanguard, and Government of Singapore. Among the other buyers at the counter were Fidelity International, Morgan Stanley, and Abu Dhabi Investment Authority (ADIA), a Middle East based sovereign wealth fund.
The Competition Commission of India (CCI) has cleared the deal between the Emirates Telecom Group and Vodafone Idea. The purchase of stake was done through Atlas 2022 Holdings, part of the Emirates Telecom Group. Atlas 2022 Holdings will increase its holding in Vodafone Idea from the current 14.6% of voting rights to a tad below 25% voting rights. Deals above a certain threshold in terms of value need the specific approval of the CCI, which keeps tabs on unfair and anti-competitive business practices.
India finally moved into the elite club of $4 trillion market cap. It had been hovering around $3.7 trillion in the last few months, but has now made a dash for the $4 trillion mark around the time the Nifty has also crossed the psychological mark of 20,000. Currently, only the US, China, and Japan have a market cap in excess of $4 trillion, and the market cap is now genuinely above the GDP, which raises questions about whether the Indian markets are starting to look overpriced. This comes when the rupee is at its weakest.
The market cap of IREDA, which was listed on Wednesday, nearly doubled post-listing to Rs 16,124 crore. The IPO was priced at the upper end of the price band at Rs32 per share. On the day of listing i.e., 29-Nov, the stock of IREDA was listed 56.25% higher at Rs 50 per share, but later continued the momentum to close the day at Rs60 per share. The stock was locked in the 20% upper circuit for the day, which is the maximum limit permitted on listing day. IREDA finances renewable projects in India and it is a profitable company.
Ultratech Cements has completed the acquisition of the cement grinding unit assets of Burnpur Cement for a consideration of Rs170 crore. Burnpur has been in financial troubles and this deal was done under the Indian bankruptcy code, which includes the entire 0.54 MTPA grinding capacity. These grinding assets are located in the state of Jharkhand. This marks the entry of Ultratech into Jharkhand and takes it total capacity to 133 million tonnes per annum (MTPA). Burnpur Cement owes Rs50 crore to PNB as loans.
According to estimates put out by CRISIL Ratings, the total mall space in India is likely to increase by 30 to 35 million square feet (SFT) over the next 3-4 years. This is likely to be triggered by a strong recovery in retail sales in India. Mall owner revenues in the current year are estimated to be 125% above the levels seen pre-pandemic. These malls are likely to attract interest to the tune of more than Rs20,000 crore in the next 3-4 years. While the demand has been rising rapidly, the good news is that supply is also surging.
For a change, the Indian IT spend is likely to grow by 10.7% in the year 2024. According to estimates put out by Gartner, software and IT services are likely to lead the way on tech spending, with growth pegged at 18.5% and 14.5% respectively. The IT spend is pegged at $124.60 billion, which represents a 10.7% growth over 2023. Gartner has also pointed out that while demand for AI and Generative AI will continue, the impact of these business on IT spending in India will not be significant. Digital adoption is a big trigger.
It now looks like a new set of troubles for Byju’s. The Enforcement Directorate (ED) has flagged delays in submission of annual accounts. Till date, Byju’s has not submitted the accounts for FY22, with FY21 accounts also being delayed by nearly 18 months. However, the ED note does not talk about violation of FDI norms or foreign exchange regulations, which are more serious in nature. However, Byju’s has bigger problems on the operations and valuations front, with indicative MCAP dipping below $3 billion this year.