Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<p>Hexaware, a prominent global provider of IT, BPO, and consulting services, has clinched the esteemed Aegis Graham Bell Award for its groundbreaking innovation, OneVerse: A Virtual Metaverse Lounge tailored for Aditya Birla Capital's clientele, a leading financial services conglomerate. The accolade was bestowed at the 14th Aegis Graham Bell Awards ceremony held in New Delhi, a platform endorsed by the Ministry of Electronics and Information Technology (MeitY), recognizing exceptional innovations in the Information and Communication Technology (ICT) realm.</p> <p>OneVerse, a collaborative endeavor between Hexaware Technologies and Aditya Birla Capital, presents a paradigm shift in customer engagement strategies, especially in light of the challenges posed by the COVID-19 pandemic. This virtual branch experience seamlessly amalgamates the essence of a physical office with the boundless potential of a digital realm. Its key features include a fully operational virtual branch mirroring Aditya Birla Capital's physical setup, rapid customer onboarding with realistic avatars, and the introduction of virtual customer relationship managers for personalized engagement.</p> <p>OneVerse accommodates up to 50 concurrent customers within its virtual space, offering new modes of interaction to explore a diverse array of products and services. Moreover, it integrates seamlessly with various ABCL channels such as mobile, web, WhatsApp, and chatbots, ensuring an omnichannel experience accessible through browsers, mobile devices, and VR headsets. Importantly, it provides a secure environment for one-to-one interactions between virtual relationship managers and customers.</p> <p>R Srikrishna, CEO and Executive Director at Hexaware, expressed gratitude for the recognition, emphasizing the company's commitment to innovation and transformative solutions. Immanuel Kingsley, Senior Vice President & Head of Innovation Labs at Hexaware, echoed the sentiment, highlighting their dedication to driving digital transformation and revolutionizing customer engagement in the financial services domain.</p> <p>Hexaware, with its global footprint spanning 45+ offices across 16 countries, aims to empower enterprises worldwide in realizing digital transformation at scale and speed. Committed to creating value for its stakeholders and fostering sustainable growth, Hexaware strives to be the most esteemed digital transformation partner globally.</p>
<p>In a strategic move aimed at broadening investment opportunities, the National Stock Exchange (NSE) is set to unveil derivatives tied to its popular Nifty Next 50 index, effective April 24, 2024. This development comes after securing the green light from the Securities and Exchange Board of India (SEBI), marking a significant milestone for the exchange.</p> <p>According to disclosures made by the exchange, NSE will roll out a series of three serial monthly index futures and index options contracts. These cash-settled derivatives will reach maturity on the last Friday of each expiry month, offering traders and investors a structured approach to managing risk and optimizing their portfolios.</p> <p>Sriram Krishnan, NSE's Chief Business Development Officer, underscored the strategic importance of this move, highlighting how the introduction of derivatives on the Nifty Next 50 index will complement the existing suite of index derivatives products. The Nifty Next 50 index occupies a unique space in the market ecosystem, bridging the gap between the Nifty 50 index, which comprises top large-cap stocks, and the Nifty Midcap Select index, which focuses on mid-cap stocks with significant liquidity.</p> <p>Comprised of 50 companies from the Nifty 100, excluding those in the Nifty 50, the Nifty Next 50 index, also known as Junior Nifty, mirrors a diverse range of sectors. As of March 2024, the financial services sector held the largest weight in the index at 23.76 percent, followed by capital goods at 11.91 percent, and consumer services at 11.57 percent.</p> <p>The index, launched on January 1, 1997, with a base value of 1000, has since evolved into a key benchmark for investors seeking exposure beyond the Nifty 50 universe. Its market capitalization, totaling Rs 70 trillion as of March 29, 2024, accounts for approximately 18 percent of the total market capitalization of stocks listed on NSE. Moreover, the constituents of the index boast an aggregate daily average turnover of Rs 9,560 crores, contributing around 12 percent to the cash market turnover in FY24.</p> <p>Overall, the introduction of derivatives on the Nifty Next 50 index represents a strategic move by NSE to cater to the evolving needs of market participants, offering them enhanced opportunities for diversification and risk management in an ever-changing market landscape.</p>
<p>The Indian Premier League (IPL) season sees a surge in travel demand to match venues, with ixigo reporting a 20-25% increase. Fans flock to cities like Mumbai, Bangalore, Kolkata, Hyderabad, and Chennai, booking flights and hotels last-minute despite higher fares.</p> <p>Specific matches, such as RCB vs. CSK in Chennai and LSG vs. GT in Lucknow, witness notable spikes in flight searches. Bangalore, Kolkata, Hyderabad, and Chennai are the top host cities experiencing heightened interest.</p> <p>The IPL's global appeal attracts fans from around the world, contributing to increased online searches and travel bookings. ixigo capitalizes on the frenzy with user-friendly booking platforms, dynamic pricing models, and agile marketing strategies, facilitating seamless travel experiences.</p> <p>This surge in travel demand underscores the IPL's status as a cultural phenomenon that transcends borders, with ixigo playing a pivotal role in meeting fans' travel needs and driving business growth.</p>
<p>JPMorgan Chase & Co. and Kotak Mahindra Bank have been chosen by Carlyle Group Inc. to assist in organizing the prospective initial public offering (IPO) of Hexaware Technologies Ltd. in Mumbai this year, according to sources familiar with the situation.</p> <p>The U.S.-based investment firm intends to proceed with the IPO as soon as the fourth quarter of this year, insiders revealed on the condition of anonymity due to the confidential nature of the discussions. It's anticipated that additional bankers will be enlisted for the potential IPO, which could amount to approximately $1 billion and potentially value the Indian IT company at up to $6 billion, the sources disclosed.</p> <p>For Carlyle, an IPO presents an opportunity to divest a portion of its stake in Hexaware. However, it's important to note that deliberations are in the preliminary stages, and Carlyle may ultimately opt against the share sale, the sources cautioned. If the IPO materializes as planned, it would mark the largest offering in India since Life Insurance Corp. of India's IPO in 2022, Bloomberg data shows. Nevertheless, specifics such as the IPO's size and the company's valuation remain subject to change, the sources emphasized.</p> <p>Carlyle has been exploring the possibility of taking Hexaware public, as previously reported by Bloomberg News.</p> <p>Hexaware specializes in IT and business process outsourcing and provides a range of services including cloud, data, and artificial intelligence solutions, according to its official website. Carlyle acquired Hexaware from Baring Private Equity Asia Ltd. in 2021; Baring Private Equity Asia Ltd. is now a part of Sweden's EQT AB.</p> <p>India's market has become increasingly attractive for deals, including IPOs, as global investors seek to capitalize on its growth potential. Various sectors, including automotive, electric scooter manufacturing, and IT, are contemplating share sales this year.</p>
<p>Hexaware Technologies and Novelty Group have formed a joint venture to provide digital transformation services to UAE enterprises across sectors like banking, manufacturing, healthcare, and more. Leveraging Hexaware's expertise in digital solutions and Novelty Group's local presence, the collaboration aims to drive innovation and foster sustainable growth in the UAE market.</p> <p>Hexaware's offerings include digital managed services, AI, cloud computing, software solutions, automation, and data analytics. With strategic partnerships with tech giants like AWS, Microsoft, and Google, Hexaware is well-positioned to facilitate rapid and secure digital transitions for UAE-based companies.</p> <p>Novelty Group's deep understanding of the UAE business landscape will be instrumental in navigating the market and ensuring the success of the venture. Together, the partners aim to contribute to the UAE's diverse industry sectors by leveraging local talent and promoting Emiratisation of IT services.</p> <p>R Srikrishna, CEO & Executive Director of Hexaware Technologies, emphasized the strategic nature of the joint venture, highlighting its commitment to delivering value and driving innovation in the UAE market. The collaboration seeks to make cutting-edge digital solutions readily available in the UAE, thereby supporting the country's economic development.</p>
<p>Sterlite Power Transmission Ltd (STPL) is undergoing a transformative phase as it gears up for an initial public offering (IPO), marked by the departure of Manish Agarwal, CEO of Global Products and Services. After an illustrious 25-year tenure in the energy infrastructure sector, Manish Agarwal has opted to explore new horizons beyond Sterlite Power, as conveyed by MD Pratik Agarwal in an internal communication to the company's workforce.</p> <p>In his message, Pratik Agarwal expressed sincere appreciation for Manish Agarwal's invaluable contributions and introduced Saikrishna Bendapudi as the interim CEO of the power transmission and energy solutions entity. Saikrishna Bendapudi, boasting three decades of leadership experience, brings with him a wealth of expertise in overseeing business operations and spearheading strategic endeavors, particularly in the domains of submarine cables and US conductor plant projects. His appointment underscores Sterlite Power's steadfast commitment to maintaining operational continuity and upholding excellence during this transitional period.</p> <p>Sterlite Power's strategic decision to explore a public listing is intricately woven into its broader fundraising strategy, with Pratik Agarwal affirming this intention in a statement to Mint on March 24. The company eagerly awaits approval for the demerger from the National Company Law Tribunal (NCLT), with expectations set for completion by the second quarter of FY25. This strategic maneuver follows the earlier announcement in November regarding the demerger of its transmission business into a distinct entity, emblematic of Sterlite Power's strategic realignment and ambitious growth objectives.</p> <p>The departure of Manish Agarwal, who held pivotal responsibilities in overseeing manufacturing and telecom asset monetization endeavors, coincides with the exit of Reshu Madan, head of the contracts and commercials division at STPL. While these transitions mark the conclusion of an era for some key personnel, they concurrently herald a new phase of evolution and expansion for Sterlite Power as it embarks on its IPO trajectory.</p> <p>Amidst these transitions, Sterlite Power remains steadfastly committed to delivering value to its stakeholders, harnessing its deep-rooted expertise in energy infrastructure, and fostering innovation in power transmission solutions to cater to the evolving demands of the industry. Bolstered by a robust leadership cadre and a clearly defined vision for the future, Sterlite Power stands poised for sustained success in navigating the dynamic energy landscape.</p>
<p>Mitsubishi UFJ Financial Group Inc (MUFG) is in advanced talks to inject up to $2 billion into HDB Financial Services Ltd, a subsidiary of HDFC Bank Ltd, potentially valuing it at $10 billion. The discussions coincide with HDB Financial Services' IPO preparations, as hinted by HDFC Bank's CFO earlier.</p> <p>MUFG's interest signals its desire to expand in India's financial market, following a previous investment in DMI Finance Pvt Ltd. HDB Financial Services has seen robust growth, with its AUM reaching Rs 83,989 crore by December 2023, driven by diversified lending including commercial vehicle and construction equipment financing, property loans, and business loans.</p> <p>The company's expansion into consumer durable financing, gold loans, and digital products has also been notable, increasing its AUM share from 3% in March 2019 to 8% by December 2023. Crisil's report underscores its strong credit profile, with a substantial profit increase from Rs 1,011 crore in fiscal 2022 to Rs 1,959 crore in fiscal 2023.</p> <p>For the first nine months of fiscal 2024, HDB Financial Services reported a profit of Rs 1,805 crore. The potential investment from MUFG could fuel HDB Financial Services' growth trajectory, enhancing its position in India's financial sector.</p> <p>With solid fundamentals and a strategic partnership looming, HDB Financial Services is poised for further expansion and success as it moves towards its IPO.</p>
<p>Narayan Lodha has assumed the position of Chief Financial Officer at Vikram Solar Ltd, while Krishna Kumar Maskara has been advanced to President-Corporate.</p> <p>With a career spanning more than two decades, Lodha brings extensive experience from leadership roles at respected firms including True North, Indian Energy Exchange, Ravindra Energy Ltd., and Bhilwara Energy Ltd., bolstering Vikram Solar's leadership cadre.</p> <p>Gyanesh Chaudhary, Vikram Solar's Chairman and Managing Director, expressed excitement at Lodha's appointment, envisioning a transformative phase characterized by ambitious expansions and fresh initiatives. As CFO, Lodha will direct the company's financial strategies, overseeing functions such as financial planning and analysis, budgeting, treasury management, risk assessment, and Corporate Finance. Chaudhary expects Lodha's stewardship not only to enhance financial efficiency but also to spot and seize emerging growth opportunities</p>
<p>Hero FinCorp, led by Abhimanyu Munjal, is preparing for its public market debut by clearing bad loans totaling nearly Rs 1,200 crore, about 3.4% of its loan book. Originally established in 1991 as Hero Honda FinLease Ltd, a Hero MotoCorp subsidiary, the company has evolved into a diversified financial services provider, offering solutions such as two-wheeler financing and SME lending across 4,000 cities and towns in India.</p> <p>Despite facing impairments of Rs 1,214.71 crore for the nine months ended December 31, 2023, primarily due to written-off bad loans, Hero FinCorp's asset quality profile has improved, with gross and net stage 3 ratios standing at 4.7% and 2.3%, respectively, by December 31, 2023. </p> <p>The company's proactive measures to control fresh slippages are vital for its future rating sensitivity, especially with the increasing share of unsecured loans. Despite write-offs, Hero FinCorp saw significant growth, with a 25% rise in assets under management and a 26% increase in disbursals in the first nine months of FY24. Notably, profit after tax surged impressively by 168% during this period.</p>
<p>INKEL, a collaborative initiative supported by the Government of Kerala, has announced a tender for module mounting structures needed for a 3.5 MW solar power project in Mylatty, Kasaragode district.</p> <p>The bid submission deadline is April 11, 2024, with bid opening the same day.</p> <p>The tender requires hot dip galvanized mounting structures, ensuring corrosion resistance.</p> <p>Scope includes fabrication, machining, hot-dipping, testing, and delivery of ground-mount solar PV module mounting structures. The successful bidder must provide stainless steel fasteners.</p> <p>The Mylatty site will accommodate 350 sets, each with 30 polycrystalline PV modules arranged in a 15×2 configuration. Mounting structures must withstand 25 years of environmental conditions, including winds up to 150 km/hr, maintaining a tilt angle of 10-13 degrees south.</p> <p>Bidders must deposit ₹50,000 earnest money and pay a ₹5,900 tender fee.</p> <p>Eligible bidders must be module mounting structure manufacturers or authorized dealers with a track record of supplying structures for solar projects exceeding 5,000 kW capacity in the past three financial years. Annual turnover should exceed ₹1 crore in the preceding five financial years.</p>
<p>The National Stock Exchange (NSE) is gearing up for its long-awaited Initial Public Offering (IPO), but hurdles remain as it awaits the green light from the Securities and Exchange Board of India (SEBI), the country's capital markets regulator. MD and CEO Ashish Chauhan, speaking in Mumbai on April 4th, highlighted the exchange's readiness for the IPO process, but emphasized the need for SEBI's approval.</p> <p>The journey towards NSE's IPO has been marred by corporate governance issues and operational challenges. The exchange faced setbacks, including the 2015 co-location scam involving a former executive and multiple technological failures. These incidents have prompted SEBI to demand enhancements in NSE's technological infrastructure, improvements in corporate governance practices, and the resolution of pending legal matters.</p> <p>Despite reporting an 8 percent year-on-year rise in net profit for the December quarter, reaching Rs 1,975 crores, and a 25 percent growth in consolidated revenue from operations to Rs 3,517 crores for Q3FY24, NSE's listing ambitions have been repeatedly delayed. The exchange's performance was buoyed by trading revenue and diverse income streams such as data center and connectivity charges, clearing services, listing services, index services, and data services. Notably, the net profit margins for Q3FY24 stood impressively at 51 percent.</p> <p>In response to media reports suggesting uncertainty over the IPO timeline, NSE management, during its earnings call, reiterated its commitment to addressing regulatory concerns. International brokerage firm Jefferies noted NSE's management dismissal of such reports, indicating a lack of clarity on the IPO timeline.</p> <p>Chauhan affirmed the exchange's willingness to comply with SEBI's requirements, stating, "As and when SEBI becomes more comfortable, they will tell us to apply (for IPO), and we will go ahead." NSE's listing holds significant importance for the Indian capital markets, signaling investor confidence and providing an opportunity for retail investors to participate in the country's largest stock exchange's growth story.</p> <p>As NSE navigates regulatory scrutiny and addresses operational challenges, investors eagerly anticipate the exchange's IPO, poised to reshape India's financial landscape while adhering to robust governance standards.</p>
<p>In the domain of stock market indices, Nifty, managed by the National Stock Exchange of India (NSE), holds a prominent position as a benchmark for assessing the performance of the Indian equity market. Beyond its flagship Nifty 50 index, which encompasses the top 50 companies in the country, Nifty offers an array of specialized indices tailored to specific sectors and investment themes. Let's explore four notable indices within Nifty's ecosystem:</p> <p>This index consists of 10 distinguished companies and encapsulates the essence of the Tata Group, a venerable conglomerate in India. Utilizing the free float market capitalization methodology, this index serves as a benchmark for monitoring the performance of Tata Group entities. Established with a base date of April 1, 2005, and an initial value of 1000, it provides valuable insights into the dynamics of Tata's diverse business empire.</p> <p>This index focuses on the manufacturing sector, aiming to capture India's industrial prowess. It comprises selected large, mid, and small-cap stocks from the broader Nifty 500 index, with a strategic allocation of weights—50% to large caps, 30% to mid caps, and 20% to small caps. By aligning with the manufacturing theme, this index offers investors exposure to companies driving India's production and industrial growth narrative.</p> <p>Infrastructure development holds significant importance in India's economic journey, and this index reflects that narrative. It incorporates large, mid, and small-cap stocks from the Nifty 500 index, with weight distribution mirroring the manufacturing index. This index showcases companies at the forefront of India's infrastructural evolution, spanning sectors such as roads, power, airports, and telecommunications.</p> <p>In the healthcare domain, innovation and growth extend beyond large corporations to mid and small-cap companies. This index, comprising up to 30 meticulously chosen stocks, sheds light on such enterprises. Reflecting the dynamism of India's healthcare sector, it provides investors exposure to emerging players and niche segments driving advancements in medical technology, pharmaceuticals, and healthcare services.</p> <p>Nifty's specialized indices offer investors a nuanced view of various sectors and investment themes prevalent in India's dynamic market landscape. Whether it's the esteemed Tata Group, the backbone of manufacturing and infrastructure, or the innovation hub of healthcare, these indices serve as avenues for strategic sectoral and thematic investments. As India progresses on its path of economic growth and development, these indices emerge as valuable instruments for investors seeking targeted exposure and diversification within the Indian equity market.</p>
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