India Stocks: Summary of Top Articles

Swedish private equity fund EQT is set to acquire BPO company GeBBS Healthcare Solutions, outbidding Hillhouse Investment after over a week of negotiations, according to Economic Times. EQT has offered around 0.87 billion dollars to acquire 100% of GeBBS, which is owned by ChrysCapital, a private equity company based in Sweden. The deal is expected to be signed within a few days.

GeBBS, a leader in offshore medical billing services, will strengthen EQT's BPO portfolio. EQT acquired the healthcare services business of Hinduja Global Solutions in 2021 and recently submitted a red herring prospectus to rename its BPO business as Sagility and list it.

Britannia Industries is in discussions to purchase a controlling stake in Kishlay Foods, a snack and biscuit maker based in Guwahati, for an estimated value of 60 to 70 billion rupees, according to Economic Times. Founded in 2001 by Sandeep Bajaj and Krishna Bajaj, Kishlay Foods is the largest snack food maker in northeastern India, with brands such as Non-Stop, Kishlay, and Mamooz.

If this acquisition is successful, Britannia can gain access to the market in northeastern India, as well as acquire shares in categories such as noodles and tea, where it currently has no presence.

JSW Neo Energy and Oil and Natural Gas Corporation are reportedly still in the acquisition battle for Ayana Renewable Power managed by the National Investment & Infrastructure Fund, as reported by the Economic Times. These two companies were among the final four candidates after multiple companies submitted non-binding offers in April. Last week, a revised termsheet was submitted, with the offer valuing Ayana at 1.8 billion dollars, up from 1.6 billion dollars.

India's renewable energy sector has matured, enabling high returns. This sector is preparing for the next growth stage.

Reliance Industries, under the government's production-linked incentive scheme, is set to receive benefits worth 362 billion rupees to establish a 10GWh battery manufacturing capacity, as reported by Mint. Reliance Industries was selected as the winning bidder from the final seven companies shortlisted, while the remaining five are on the bid waiting list.

The Business Incentive Scheme for Advanced Chemistry Cells is expected to strengthen the regional ecosystem for electric mobility and battery storage. Reliance has a first-mover advantage.

The Securities and Exchange Board of India (SEBI) may soon tighten regulations on derivatives trading to curb speculative trading and prevent individual investors from incurring losses of over 500 billion rupees annually, as reported by the Business Standard. Based on feedback from industry insiders, the regulatory authority's seven proposed measures in a consultation paper in July could be adjusted before being implemented at an upcoming board meeting.

Derivatives trading has been rapidly increasing in India. In this sector, speculative activities have become more active, necessitating stricter regulations to prevent unnecessary losses.

Mobility startup Rapido secured $200 million in a funding round led by existing investor WestBridge Capital, achieving an exclusive unicorn club status with a valuation of $1.1 billion, as reported by the Economic Times. Venture capital fund Nexus Venture Partners also participated in the funding, along with new participants Think Investments and New York-based Invus Opportunities.

Rapido is known for its platform to hire two-wheeler taxis, but has stated that the funds will be used to expand its newly launched four-wheeler taxi service, competing with Ola and Uber.

Buyers of electric vehicles have long been troubled by the low resale value of zero-emission cars. While electric vehicles worldwide lose half their value within a year, the domestic market is showing promising signs, potentially encouraging more buyers to transition to electric vehicles.

The low resale value has been one of the reasons electric vehicles have not gained popularity, despite policies promoting clean mobility, due to concerns about range anxiety, insufficient charging infrastructure, etc. Now, that is changing.

- According to Business Standard, the banking, financial services, and insurance (BFSI) sector in India has emerged as the largest employer in Indian companies for the second consecutive year. While the number of employees in the IT services sector decreased by nearly 66,000, BFSI listed companies hired nearly 0.2 million people. Compared to the previous year, BFSI companies net employed 0.17 million 2,000 people, while IT companies net employed 0.13 million 1,000 people.

- Due to the reversal of employment trends, the number of employees in the financial sector companies of BSE200 surpasses that of software and services companies, clearly indicating a slowdown in export-oriented IT services.