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“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.
Let’s begin with the top news. Life Insurance Corporation has fixed the price band for its initial public offer at Rs 902-949 a share. According to an official source, the issue, which will remain open for retail investors from May 4 to 9, will enable the government to offload 3.5% stake in the insurer for Rs 21,000 crore. The insurer filed the red herring prospectus (RHP) with the Securities and Exchange Board of India late Tuesday. The IPO will still be the country’s largest though the issue size is lower than the 5% mentioned by the insurer in the draft IPO papers filed with the regulator on February 13. The valuation is also almost half the level indicated by the Centre in the FY22 Budget.
Meanwhile, finance minister Nirmala Sitharaman has called on American semiconductor firms AMD, Western Digital and Micron Tech to boost investments in India, taking advantage of a Rs 76,000-crore production-linked incentive scheme that was announced recently to woo large chip makers. In a meeting in San Francisco with top executives of semiconductor firms, Sitharaman highlighted opportunities for American companies in India and laid emphasis on the government commitment to be a reliable player in the entire semiconductor value chain, at a time when global firms in this space are looking to diversify away from China. Separately, India is in talks with global chipmakers Intel Corp, GlobalFoundries Inc and Taiwan Semiconductor Manufacturing Co about setting up local operations, part of efforts to centre more high-tech manufacturing in the country.
Moving on. IT major Wipro announced the acquisition of US-based Rizing Intermediate Holdings, Inc, for $540 million in an all-cash deal, to expand its capabilities in SAP consulting. Rizing is the latest in a series of acquisitions by Wipro, underscoring the company’s ambitious growth agenda. The company expects that Rizing’s high-touch approach, along with its industry expertise and SAP consulting capabilities in enterprise asset management, consumer industries, and human experience management, will be instrumental in advancing Wipro’s position as a sought-after advisor for clients’ most complex SAP transformations.
In some more industry news, B2B e-commerce start-up Udaan’s digital lending arm UdaanCapital has entered into a partnership with Northern Arc Capital Limited to facilitate disbursal of credit to over 50,000 kiranas and small retailers. UdaanCapital is owned and operated by Udaan through a subsidiary firm in partnership with IDFC First Bank. The start-up said that UdaanCapital currently facilitates disbursal of over Rs 8,0000 crore of credit per annum to over 150,000 kiranas/small businesses across the country. The credit limits offered range from Rs 10,000 to Rs 25 lakh and the credit tenures offered are short term.
Another major news. A day after Adani Power’s market capitalisation hit Rs 1 trillion, Adani Wilmar, the newest member from the group, joined the club on Tuesday as the shares of the edible oil producer have surged three-and-a-half-fold since its February listing. In the process, the group has overtaken HDFC Group in market capitalisation. With the addition of a whopping Rs 10 trillion in market cap over the last one year, the combined market capitalisation of Adani Group pole-vaulted to Rs 17.26 trillion, which is Rs 4 trillion more than that of HDFC Group as of Tuesday’s closing, Bloomberg data shows. While Tata Group still holds the Number One slot with Rs 22.87-trillion market cap, Mukesh Ambani group firms come second with an aggregate market valuation of Rs 19.16 trillion.
Now let’s get an update on Future Retail. Over a month after banks issued notices against the encumbrance of Future Retail and Future Enterprises’s assets, IFCI has issued a similar notice against anybody moving to deal with Future Brands’s securities over which it holds an exclusive charge. The state-owned non-banking financial company on Tuesday said it has an exclusive charge over Baroda Central, a commercial complex spread over 180,000 sqft owned by Iskrupa Mall Management Company. The notice said IFCI also holds an exclusive charge over four brands owned by the borrower – John Miller, Cleanmate, Tasty Treat and Morpankh.
And lastly, let’s hear what to expect from the stock market today. Domestic equity market benchmarks BSE Sensex and Nifty 50 are likely to see a huge gap-down start on Wednesday, a day before weekly F&O expiry, which also happens to be monthly F&O expiry. Nifty futures were ruling 180.50 points or 1.05 per cent down at 17,015 on Singaporean Exchange, suggesting that the 50-share index Nifty 50 may give up 17100 levels in opening deals. In the previous session,BSE Sensex soared 776 points or 1.4 per cent to settle at 57,356.61, while NSE Nifty 50 index rallied 246 points or 1.5 per cent to finish trade at 17,200.80.
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