Report Wire

Category: Economy

  • Hyundai IPO Sees Lukewarm Response From Investors On Day 1 | Companies News

    New Delhi: The initial public offering (IPO) of Hyundai Motor India saw a lukewarm response from investors on Tuesday, with the issue subscribed 0.18 times or 18 per cent on Day 1 of the subscription.

    The company aims to raise up to Rs 27,870 crore, making it the largest-ever IPO of the Indian equity market history since 2022, when Life Insurance Corporation of India (LIC) raised Rs 21,000 crore.

    It is open till October 17, and the IPO price band has been fixed at Rs 1,865- Rs 1,960 per share.

    One lot of Hyundai Motor India’s IPO has seven shares. After the subscription window closes, the share allotment is expected to be finalized on October 18. The shares will be credited to demat accounts on October 21.

    Hyundai Motor India shares are likely to debut on stock exchanges on October 22. The maiden share sale will be a full offer for sale (OFS). This is the first offer from an automaker to list in India in over two decades and the entire proceeds will go to the promoter.

    Hyundai Motor India raised approximately Rs 8,315 crore from anchor investors on Monday, ahead of its IPO. The company allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors, according to the company statement.

    Hyundai Motor India held a 14.6 per cent market share in the domestic passenger vehicle (PV) market in Q1 FY25, second to Maruti Suzuki which has a 41 per cent share in this category. However, Hyundai Motor India is the market leader by volume in the mid-size SUV segment with around 38 per cent share as on June 2024.

    It is also India’s second-largest exporter of PV from April 2021 till June this year. In FY 2023-24, the company sold 7.77 lakh vehicles, of which 21 per cent was exported to countries like Africa, the Middle East, Europe and Latin America.

    Hyundai Motor India has 1,366 sales points and 1,550 service outlets in India. The company’s revenue in the financial year (FY) 2023-24 was Rs 69,829 crore. During this period, the company made a profit of Rs 6,060 crore and the company’s margin was 13.1 per cent.

    India’s second-largest carmaker’s revenue in the first quarter of FY 2024-25 was Rs 17,344 crore. During this period, the company made a profit of Rs 1,489 crore and the margin was 13.5 per cent.

  • PLI Scheme For White Goods: 38 Firms Commit Investments Worth Rs 4,121 Crore | Economy News

    New Delhi: In a boost for local manufacturing, 38 companies have applied for the PLI scheme for white goods (air conditioners and LED lights) with a net committed investment of Rs 4,121 crore in the third round, the government informed on Monday.

    The third round of the online application window ended on October 12 after being open for 90 days from July 15.

    According to the Ministry of Commerce and Industry, about 43 per cent of the new applicants are in the MSME sector which shows the confidence among MSMEs to become part of the value chain of manufacturing of components of ACs and LED lights.

    The scheme is expected to bring in investment in the component manufacturing ecosystem of the ACs and LED lights industry to the tune of Rs 11,083 crore and generate about 80,486 direct employment.

    The scheme is expected to lead to a total production of components of ACs and LEDs in India of about Rs 1,81,975 crore.

    The applicants include eight existing beneficiaries of the PLI scheme for white goods (PLIWG), committing a net incremental investment of Rs 1,285 crore. Thirty new applicants have committed an investment of Rs 2,836 crore proposing to manufacture varieties of critical components of ACs and LED lights across the country.

    “Manufacturing clusters are coming up at Noida-Greater Noida in UP, Neemrana and Bhiwadi in Rajasthan, Aurangabad-Pune in Maharashtra, Sanad, Gujarat and Sri City in Andhra Pradesh,” said the ministry.

    Six AC manufacturers and 12 component manufacturers are in Sri City. Five additional foreign companies are investing Rs 245 crore, apart from 15 existing companies investing Rs 2,287 crore.

    According to the ministry, as regards to the bifurcation between two segments of the PLIWG scheme — ACs and LED lights — 21 applicants have applied for manufacturing components of ACs with a committed investment of Rs 3,679 crore and 18 applicants for components of LED lights. with a committed investment of Rs 442 crore.

    Several applicants are vendors for large manufacturers such as Daikin, Voltas, Blue Star and LG Electronics in the ACs sector. Similarly, several applicants are suppliers of LED components for large LED lights manufacturers like Surya, Orient, Crompton Greaves, Signify, and Halonix etc.

  • Over 30 Countries To Explore $117 Billion Untapped Export Potential For India | Economy News

    Mumbai: Highlighting the $117 billion untapped export potential for India, more than 30 countries are set to participate in the fifth edition of ‘World Trade Expo’ in the financial capital from October 17-18. India has untapped export potential with the participating countries in sectors such as textiles, pharmaceuticals, chemicals, automobiles and components, machineries, etc.

    The US offers the maximum untapped export opportunity worth $46 billion in sectors such as gems and jewellery, pharmaceuticals, automobiles and components and machineries.

    Diamond, agro-chemicals such as insecticides, iron and steel, jewelery and motor vehicles are some of the commodities with the highest export potential in most of these participating countries, according to the World Trade Center Mumbai and All India Association of Industries (AIAI). , the organizers of the event. The event will showcase more than 30 countries and regions.

    Union Minister for Petroleum and Natural Gas Hardeep Singh Puri is expected to be the Chief Guest at a dedicated session on ‘Green and Renewable Energy’ at the event. Ambassadors and trade missions from the participating countries and regions will showcase trade, investment, tourism, education and technology exchange potential in their countries.

    The event will host developed and developing countries from Americas, Europe, Africa and Asia. These countries collectively account for 28 per cent of India’s total merchandise trade, 35 per cent of its merchandise exports, and 24 per cent of its imports.

    In FY24, India recorded a trade deficit of over $10 billion with them. They are the key suppliers of ores and minerals, semiconductors, other electronic spare parts, coal, and agro-commodities such as edible oils, which underscores their significance in India’s energy, mineral and food security.

    India has signed free trade agreements with many of these countries such as Malaysia, Sri Lanka, South Korea and Mauritius. Other participating countries such as Indonesia, Vietnam and Thailand are part of the 10-member ASEAN countries, with which India has a trade agreement.

    Dr Vijay Kalantri, Chairman, WTC Mumbai and President of AIAI, said that aside trade and investment, “the Expo will also discuss collaboration with the participating countries in emerging areas such as green energy, gender equality, skill development, climate-smart technologies, capacity building of MSMEs and startups”.

  • 32 Indian Startups Raise $135 Million In Funding This Week | Economy News

    New Delhi: At least 32 domestic startups secured nearly $135 million in funding this week, which saw four growth-stage deals and 22 early-stage deals in a significant jump of over 45 per cent from last week.

    Deeptech startups emerged as leader this week as Industrial robotics maker Haber raised Rs 317.2 crore (approximately $38 million) in its Series C round, led by Creaegis with participation from Accel India and BEENEXT Capital.

    Software-as-a-service (SaaS) platform Spry Therapeutics raised $15 million led by Flourish Ventures, Together Fund and Fidelity’s Eight Roads and F-prime Capital.

    Cross-border specialty chemical manufacturing platform Mstack raised $40 million in its Series A funding round co-led by Lightspeed and Alphawave along with a debt from HSBC Innovation Banking. Mstack is now planning to make inroads into agrochemicals and pharmaceuticals. With the fresh proceeds, the firm will also hire talents across functions including R&D.

    Meanwhile, digital adoption platform (DAP) Whatfix introduced a $58 million liquidity program for its employees and investors, marking the company’s fourth buyback of employee stock options (ESOPs).

    This week, Bengaluru-based startups led with 11 deals followed by Delhi-NCR, Mumbai and Pune. Last week, 21 startups in India raised nearly $93 million in funding across 16 deals, which included four growth-stage deals and 12 early-stage fundings. It was a big drop from nearly $461 million raised by 29 domestic startups in the previous week, which included 10 growth-stage deals.

    In the third quarter (July-September), domestic startups raised more than $4 billion, including several transactions over $300 million and $200 million, along with pre-IPO rounds. This included 85 growth and late-stage deals worth $3.3 billion, along with 207 early-stage deals worth $754.26 million.

  • Abu Dhabi Investment Authority Begins Operations In GIFT City | Economy News

    New Delhi: Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, on Monday commenced its India operations after obtaining the necessary regulatory approvals and opening its office in the GIFT City in Gujarat.

    The office is expected to drive further intensification of ADIA’s investment activities in the country, it was announced during the 12th meeting of the India-UAE high-level joint task force on investments in Mumbai co-chaired by Union Commerce Minister Piyush Goyal and His Highness. Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority.

    Subsequently, ADIA announced setting up an Alternative Investment Fund in GIFT City to hold all its India-related investments. Since its establishment, GIFT City in Ahmedabad is fast emerging as a leading global financial and technology hub, providing a thriving financial ecosystem to support and expand businesses.

    During the visit of Prime Minister Narendra Modi to Abu Dhabi in July this year, it was announced that ADIA would establish a presence in GIFT City. Meanwhile, the iconic India Pavilion at the Expo City in Dubai will host the first overseas campus of Indian Institute of Foreign Trade (IIFT). IIFT is likely to move into its premises by early 2025 with short and medium-term training programmes, research and eventually with the launch of its flagship programme, MBA (International Business).

    The campus will be a boon for the 3.5 million-strong Indian community residing in the UAE. It will also open doorways for the overseas expansion and recognition of the IIFT brand. Commerce Minister said that IIFT’s new campus at Dubai would be a landmark decision in transforming it into a world-class institute in real sense.

    “Moreover, with IIFT’s expertise in the area of ​​foreign trade, it would provide opportunity for students, professionals and government officials not only from the UAE but from other parts of the world too for training and research in the area of ​​international trade,” Goyal. added. The UAE continues to be the largest Arab investor in India, with investments amounting to around $3 billion in FY 2023-24.

  • India To Become Next Chip Manufacturing Hub: Ashwini Vaishnaw | Economy News

    New Delhi: Union Minister for Electronics and IT Ashwini Vaishnaw has said that India is moving towards becoming the next semiconductor hub for the world as big investment is happening in this sector in the country.

    Minister Viashnaw referred to a recent roundtable in New York between Prime Minister Narendra Modi and top tech CEOs and said that in the discussion three top executives had said they had not seen this kind of enthusiasm for any country in the last 35 to 40 years.

    The Central government has cleared five semiconductor manufacturing proposals, with a total combined investment nearing Rs 1.52 lakh crore. The Union Minister further said Micron Technology will roll out the first made-in-India chips by early 2025. The construction work of the CG power semiconductor facility is going on. And in Tata’s ATMP facility in Assam, construction work is going on very well, he said.

    Earlier, the Minister said the growth of the semiconductor industry in India will further boost PM Modi’s vision. Semiconductor is a foundational industry. Chips manufactured in the industry are used in medical instruments, mobile phones, laptops, cars, trucks, trains, televisions and practically every device.

    All the initiatives taken so far, whether it is the Digital India Mission or the telecom mission, have brought technology into the hands of common citizens. According to the reports, India’s semiconductor-related market will reach 64 billion dollars in 2026, nearly triple the size in 2019.

    Towards achieving this goal, the ‘Semicon India’ initiative allows financial support for front-end fabrication units, sensors, display manufacturing, display fabs, semiconductor packaging and compound semiconductors.

    As per the experts, “by expanding production capabilities, the country is poised to become a major player in the semiconductor sector. National initiatives, such as the Semicon India Program and the India Semiconductor Mission (ISM), are focused on capturing a significant share of the global market, driving innovation, and stimulating economic growth through job creation and technological advancement.”

  • Business Idea For Women: Get Up To Rs 5 Crore Funding From Government- Details | Economy News

    India is growing through the innovation and startup revolution. The country has so far more than 100 unicorns. Not only men, women are also leading from the front and making their space in modern society as successful entrepreneurs. If you are a woman and have a business plan, then you can also get things running and funding won’t be an issue. The government of India has already launched several schemes to help startups.

    Arti Bhatnagar, Additional Secretary and Financial Advisor, Ministry of Commerce & Industry, recently shared that startups can get up to Rs 5 crore to get their business up and running. “Under the government’s Startup India Seed Fund Scheme, Rs 5 crore can be allocated to each incubator to support startups across the country including women-led startups. This is not just about funding; it’s about equipping women entrepreneurs with the necessary tools, resources, and mentorship to grow their ventures and create a lasting social and economic impact in both rural and urban areas,” she said during UnPollute – a Sustainability Conclave, organized by STEP in partnership with Miranda House, Delhi University.

    Bhatnagar further said that women entrepreneurs are not only innovators but the driving force of change in India’s sustainability journey. Reinu Shah, Founder of STEP said that women entrepreneurs are shaping a new narrative of sustainable development. “They are not only beneficiaries of sustainability efforts, but also key drivers of solutions that address the climate crisis,” she said.

    Department for Promotion of Industry and Internal Trade has created the Startup India Seed Fund Scheme (SISFS) with an outlay of Rs 945 Crore to provide financial assistance to startups for Proof of Concept, prototype development, product trials, market entry, and commercialization. It will support an estimated 3,600 entrepreneurs through 300 incubators. The scheme was launched in 2021. Those willing to get the fund can visit the government website seedfund.startupindia.gov.in and apply through the website.

  • GST Panel Deliberates On Lowering Rate On Health Insurance, Tractors | Economy News

    New Delhi: As the government focuses on GST 2.0 which further eases tax laws, enhance tax simplification and adoption of technology, the ministerial panel tasked to rationalize rates is deliberating on lowering GST on essential items like health insurance and tractors up to 5 per cent.

    As tractor segment volumes saw marginal growth (year-on-year) in September, a reduction in GST on tractors will offset the revenue loss, according to industry experts. Tractors currently attract 12-28 per cent GST, depending on their classification.

    Similarly, a cut in GST on health and term insurance – a long-pending demand of the sector — will further make them more affordable for the masses. As per experts, health insurance is likely to see a decrease from 18 per cent to 12 per cent, while term insurance may attract a GST of 5 per cent.

    According to reports, the panel, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is focused on moving certain items from the 12 per cent slab to 5 per cent. The panel is expected to meet on October 19 over the insurance issue, followed by discussions on rate rationalization on October 20.

    Last month, the GST Council, headed by Finance Minister Nirmala Sitharaman, set up a Group of Ministers (GoM) on slashing the tax rate on life and health insurance, as well as reducing the GST on cancer drugs.

    The GoM on life and health insurance is headed by Choudhary, who is currently heading the panel on GST rate rationalization. The 54th GST Council meeting, held on September 9, reached a “broad consensus” to bring relief to individuals and senior citizens with a decision on the GST applied to health insurance premiums. The current GST rate on health and life insurance policies stands at 18 per cent.

    However, the GST Council announced to reduce the rate on cancer drugs to 5 per cent from 12 per cent. The life and health insurance industry is hopeful that the reduction would alleviate the tax burden on both insurers and policyholders.

  • Early Diwali Bonanza For 11.72 Lakh Indian Railways Employees: Modi Govt Announces Productivity Linked Bonus – Details Here | Personal Finance News

    Weeks ahead of the festival of lights Diwali, the Narendra Modi government has announced bonuses for Indian Railways employees. The Union Cabinet today approved payment of a Productivity Linked Bonus (PLB) of 78 days for Rs 2028.57 crore to 11,72,240 railway employees in recognition of the excellent performance by the Railway staff.

    “The amount will be paid to various categories, of Railway staff like Track maintainers, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial staff and other Group XC staff. The payment of PLB acts as an incentive to motivate the railway employees for working towards improvement in the performance of the Railways,” said the government in a statement.

    Payment of PLB to eligible railway employees is made each year before the Durga Puja/ Dusshera holidays. This year also, PLB amount equivalent to 78 days’ wages is being paid to about 11.72 lakh non-gazetted Railway employees.

    The maximum amount payable per eligible railway employee is Rs 17,951 for 78 days. The above amount will be paid to various categories, of Railway staff like Track maintainers, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial staff and other Group ‘C staff.

    The performance of Railways in the year 2023-2024 was very good. Railways loaded a record cargo of 1588 Million Tonnes and carried nearly 6.7 Billion Passengers. “Many factors contributed to this record performance. These include improvement in infrastructure due to infusion of record Capex by the Government in Railways, efficiency in operations and better technology etc,” said the government.

  • World Bank Expects 5.1% Growth For Nepal | Economy News

    New Delhi: The World Bank on Wednesday projected a growth of 5.1 per cent for Nepal in the current 2024-25 fiscal year starting in mid-July, below the Nepali government’s 6 per cent target. Growing tourist arrivals, more hydropower generation and expected growth in paddy production shall contribute more to Nepal’s gross domestic product, the bank said in its Nepal Development Update report.

    The South Asian country achieved a growth of 3.9 per cent in 2023-24, noted the international financial institution. The bank is expecting Nepal’s private sector to contribute more to its growth by taking advantage of the central bank’s loosening of monetary policies and easing of regulatory requirements, Xinhua news agency reported.

    It has projected Nepal’s economy to grow by 5.5 percent in the next fiscal year. In its report released last week, the Asian Development Bank forecast a 4.9-percent growth for Nepal in 2024-25. “Maintaining growth momentum is key to Nepal’s development,” said David Sislen, the World Bank’s Country Director for the Maldives, Nepal and Sri Lanka.

    “This requires continued reform in critical areas such as infrastructure, governance, human capital development and developing an environment which encourages and supports the private sector,” Sislen was quoted as saying in a statement.