Vedanta's Demerger Approved
The National Company Law Tribunal (NCLT) has given the green light to Vedanta's demerger plan, a pivotal move that triggered a surge in the company's shares.
This strategic decision by Vedanta is likely to reshape its operational structure, creating focused business units. This approval signifies a significant advancement in Vedanta's corporate restructuring. Additionally, the IPO of ICICI Prudential AMC was highly subscribed, with a staggering subscription rate of 39 times, reflecting robust investor confidence in the financial sector. Furthermore, the market witnessed multiple IPO approvals from the Securities and Exchange Board of India (SEBI) for companies like Yashoda, Fusion CX, and Orient Cables, signalling a busy period for capital markets.
Investment and Partnerships
Several major investments and partnerships are reshaping the Indian business scene. Norwest Venture Partners injected Rs 750 crore into Padmini VNA Group. ReNew and Google have teamed up to develop a 150 MW solar project, indicating growth in renewable energy sectors. Saregama has committed to investing Rs 325 crore in Bhansali Productions, which suggests an uptick in the entertainment industry. Furthermore, Tata AIA, along with Temasek, are putting funds into SBFC Finance, illustrating the ongoing support for financial institutions. In addition, Protean made an investment in NSDL Payments Bank.
Financial Outlook & Trends
The financial sector is undergoing significant changes, as highlighted by S&P's positive outlook upgrade for IIFL Finance. Axis Bank's economist has analyzed the effects of the rupee's depreciation against the US dollar, which hit a record low of 91.01. Several market fluctuations were evident, with the Sensex experiencing a tumble due to foreign outflows and global economic uncertainties. SEBI is taking strong steps to enhance market integrity, which is evident through its recovery of Rs 18.14 crore from the 'Baap of Chart' and mandating increased disclosures for securitized exposures. The government plans to offload its stake in IOB for Rs 2,100 crore.
Policy and Regulations
Government policies and regulatory actions are directly impacting the business environment. The Inter-Ministerial Committee is monitoring import/export activities, reflecting the government's focus on trade management. The Rare Earth Magnet Scheme is set to receive a Rs 7,280 crore boost, and the Seeds Bill 2025 emphasizes the protection of farmers and traditional seeds. Trade unions have extended their support to the Labor Codes. The government is also working on Insurance Reforms to ensure greater access and FDI. SEBI has also been busy, approving IPOs and mandating new disclosures. The UP government is actively reviewing progress towards its ambitious goal of a USD 1 trillion economy, while the Bihar government is planning pumped storage projects worth Rs 13,000 crore.
Operational Updates & Other News
Several companies are showing significant operational developments. Coal India faces delays in its 3000 MW solar projects, as well as IndiGo cancellations impacting ATF sales during December. Supriya Lifescience is targeting Rs 1600 crore in revenue. Hexaware has appointed Raghu Mocherla to lead AI & CPS. China Eastern is expanding its Delhi-Shanghai flights. And, Digantara secured $50 million for global expansion. Moreover, there's news about the government's stance against adulterated fertilizer sellers in UP. The Karnataka government allocated Rs 6,279.87 crore for supplementary estimates. The RBI has restricted Loknete Bank, implementing a withdrawal ban.
