Business News at 10:00 am on 14th August, 2024

Let’s begin, The volatility in the global equities has not taken the sheen off the primary market as four initial public offerings worth over Rs 11,850 crore have sailed through in the first week of August. And this trend is likely to continue as 25 firms, with approvals from the Securities and Exchange Board of India, are set to hit the market to raise around Rs 22,000 crore, according to data from PRIME Database. Some of the big names that have secured the market regulator’s approval include Bajaj Housing Finance, Asirwad Micro Finance, Premier Energies, Arkade Developers and Northern Arc Capital. The primary market in August has been aided by the year’s largest IPO of Ola Electric Mobility with the issue size of Rs 6,146 crore.

Moving to Banking sector, Private banks surpassed public sector banks in expanding their workforce in the previous financial year. Top six private banks increased their employee count by 14%, adding nearly 74,000 employees, taking the total to 610,000 at the end of March 2024. In contrast, top six public banks saw a 2% decline in their employee count to 620,000 by the end of FY24, according to the latest annual reports of banks. Quote Following the merger of some public sector banks four years ago, there has been a noticeable slowdown in hiring activity as lenders have begun to optimise the use of their existing human resources unquote said a senior official of a public sector bank. Among private banks, largest lender HDFC Bank led the hiring spree.

Over to Industry section, A petition was filed in the Supreme Court on Tuesday seeking direction for the Securities and Exchange Board of India to complete the pending investigations against the Adani Group, as recent allegations by Hindenburg Research against the chief of India’s capital market regulator have created an “atmosphere of doubt.” The plea, filed by petitioner-in-person advocate Vishal Tiwari, reminded the Supreme Court that in its judgment on January 3, it had directed Sebi to conclude the 24 investigations into Hindenburg’s earlier report accusing the Adani Group of share price manipulations and violations of securities law “preferably” within three months. Sebi had completed 22 of the 24 investigations at the time and was awaiting inputs from external agencies regarding the remaining two probes.

Next news from GST Council meet, which will held on September 9, is likely to make progress on the long-pending agenda of rate rationalisation, and review levy of GST on import of services by Indian entities from offshore branches. It may also discuss taxation of health insurance, including a proposal to cut the current 18% tax rate on the gross premium, and another one to remove such services from the ambit of the tax, sources privy to the matter said. However, the Council may not take up the issue of contentious 28% GST levy on online gaming industry, which was supposed to be reviewed six-months post its enforcement from October, 2023. The question of retrospective application of GST on e-gaming on full face value of bets.

Here’s an update on Reliance Retail-backed Dunzo’s efforts to secure funding and settle outstanding employee dues, is facing some roadblocks, as per company’s internal communications reviewed by FE. The hyperlocal delivery startup, which has been facing financial challenges for months, informed its staff that it is facing difficulties in accessing promised funds. In an email to employees, Dunzo’s payroll team stated quote We are facing some roadblocks in getting access to the funds. This was an unexpected turn of events at the last moment leading to further delay in getting funds unquote. The recent setback follows a series of promises made by Dunzo’s management. On May 3, co-founder and CEO Kabeer Biswas had told employees that the company was on the verge of closing a “transaction”.

Next update on ethanol prices. The government is considering a proposal to increase ethanol prices for the next season commencing November 2024, while it aims to achieve the 20% blending target by 2025-26. Sources said that the revision of ethanol prices would be based on the fair and remunerative price of sugarcane and the price revision is aimed at meeting blending targets. Ethanol prices, fixed by the government, have not been hiked since the 2022-23 ethanol supply year from November to October. Currently, ethanol produced from cane juice is priced at Rs 65.61/litre, while rates for ethanol from B-Heavy and C-Heavy molasses stood at Rs 60.73/litre and Rs 56.28/litre. According to an official note, the blending percentage has touched 15.83% in July, 2024.

Lastly, let’s have a look at the stocks which are in focus today. These are Vedanta, Vodafone Idea, Happiest Minds Technologies, Asian Paints, Piramal Enterprises. Vedanta said that its board of directors has approved for selling up to 11 crore shares or 2.6% equity in Hindustan Zinc whereas Vodafone Idea CEO Akshaya Moondra said that the company has seen its subscribers porting out to state-owned BSNL.