1. Adani Group aims at a pole position in the cement biz in the country through multiple acquisitions
The Adani Group may buy several cement firms, including Hyderabad-based Penna Cement, Gujarat-headquartered Saurashtra Cement, the cement business of Jaiprakash Associates, and ABG Shipyard-owned Vadraj Cement, the Economic Times reported. It has prepared a war chest of $3 billion for these potential acquisitions.
Why it’s important: Adani seems to be aggressively pursuing an inorganic strategy to boost capacity and emerge as the largest cement maker in India, betting on an anticipated spike in demand as the government continues its focus on building infrastructure.
2. Ather Energy to invest Rs 1,000 crore to build a third electric scooter factory in Maharashtra
Bengaluru-based Ather Energy has chosen Aurangabad in Maharashtra for its third plant, which will have the capacity to produce 1 million two-wheelers every year, the Business Standard reported. It is expected to soon ink an agreement with the state government. The company has firmed up plans to invest Rs 1,000 crore in the 100-acre plant in phases.
Why it’s important: Registrations for electric two-wheelers are surging in India and IPO-bound Ather is keen on ramping up capacity to meet the anticipated high demand for its electric family scooters.
3. Mankind Pharma and multiple private equity firms in the race to acquire Bharat Serums
Mankind Pharma will likely make a bid in a consortium to acquire Bharat Serums and Vaccines, which has been put on the block by Advent International, the Hindu Businessline reported. Top private equity firms such as Blackstone, KKR, Permira, Bain Capital, Carlyle, and some others are also interested in buying the company and submitted their non-binding bids last month.
Why it’s important: Mankind Pharma is on record saying it is preparing itself for potential acquisitions. It is raising up to Rs 7,500 crore through the QIP route and has increased the borrowing limit to Rs 12,500 crore.
4. Malaysia’s Gentari to raise $400 million for commercial and industrial projects in India
Gentari, a unit of Malaysia’s state-run Petronas, is planning a minority fundraise in its proposed commercial and industrial projects in an equity deal valued at around $400 million, the Mint reported. This may involve a stake sale of up to 49 percent in its 3.5 GW assets that will supply electricity to a unit of AM Green.
Why it’s important: Gentari is banking on the strong investor interest in India’s C&I segment given the supportive regulatory landscape, with rules allowing large power users to source energy from the open market rather than the costlier grid.
5. Bharat Petroleum to borrow Rs 31,000 crore for capital expenditure at Bina refinery
Bharat Petroleum has asked SBI Capital Markets to arrange for a Rs 31,000 crore loan for the planned capital expenditure at its Bina refinery complex in Madhya Pradesh, the Economic Times reported. Several local banks and financial institutions are expected to take up portions of the loan that could have a tenor of 15 years. The total project cost is estimated at Rs 48,000 crore.
Why it’s important: The expansion of the Bina refinery will involve setting up an ethane cracker plant that would encourage downstream plastics and packaging industries in Madhya Pradesh, providing a boost to the underdeveloped region.
6. Hinduja Group revising funding option to buy Reliance Capital after regulatory objection
The Hinduja Group, promoters of IndusInd Bank, has revised its funding options to acquire Reliance Capital as the Reserve Bank of India has objected to the proposal of providing cross-guarantee as per the application submitted by IndusInd International Holding, the Hindu Businessline reported. The group has reworked Rs 7,300 crore funding through an alternative route it told the National Company Law Board.
Why it’s important: The banking regulator raised issues around foreign direct investment which compelled Hinduja to tweak the funding route. The deal seems to be on track though some delay can be expected.
7. Insurance regulator allows Paytm to withdraw the application for a general insurance license
Fintech firm One97 Communications which operates Paytm will now focus on the distribution of insurance products to other insurers after the Insurance Regulatory and Development Authority of India accepted Paytm General Insurance’s registration withdrawal application, the Economic Times reported.
Why it’s important: Paytm has decided to put the brakes on business diversification after the Reserve Bank effectively shuttered Paytm Payments Bank. Founder and CEO Vijay Shankar Sharma has said the firm will concentrate on its core competency for now.
8. Beauty and fashion marketplace Nykaa to become a house of brands rather than just a retailer
When Nykaa launched its IPO in November 2021, founder and CEO Falguni Nayar said it wanted to transform the beauty and fashion marketplace into a house of brands, rather than just being a multi-brand retailer. In 2024, Nykaa remains committed to this strategy, showcasing modest growth in both beauty and fashion segments, the Mint reported.
Why it’s important: Despite some success, Nykaa is facing challenges of slowing growth in fashion and beauty products. It remains to be seen whether its house of brands is a successful business strategy.
9. Haldiram Snacks exploring the possibility of an IPO after its sale discussions stall
The owners of Haldiram Snacks are exploring a possible initial public offering for the food producer and restaurant operator as plans to sell it to foreign investors have stalled, the Mint reported. The Agarwal family is considering a listing as bids in the region of $8 billion to $8.5 billion didn’t meet its valuation expectations of about $12 billion.
Why it’s important: This is the second instance when a sale has stalled because the valuation of Haldiram Snacks offered by the buyer did not match up to the promoters’ expectations. Whether that is justified could be tested in the public market.
10. Go First Airlines was given an additional 60 days by a tribunal to rework the bankruptcy resolution plan
The National Company Law Tribunal has extended the timeline for Go First’s corporate insolvency resolution process by 60 days beyond the June 3 deadline, after resolution professional argued that a high court decision allowing the deregistration of 54 planes of the grounded carrier has substantially changed the circumstances of the insolvency resolution process, the Economic Times reported.
Why it’s important: Given the series of setbacks to the grounded carrier, creditors raised no objections to the deadline extension, perhaps hoping there would still be some chance of recovering a portion of their dues.
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