Paytm Shares Surge on Samsung Partnership, Vodafone Idea’s Equity Issuance, Amul’s Expansion Plans, and More.

Paytm Shares Surge 9% on Samsung Partnership

Shares of One97 Communications, Paytm’s parent company, soared 9% intra-day, closing at Rs 432.90, after announcing a partnership with Samsung. The collaboration enables seamless booking of flights, buses, movies, and events directly via Samsung Wallet, enhancing user convenience. This move aligns with Paytm’s focus on payments and distribution following regulatory scrutiny on Paytm Payments Bank. The company also resumed lending and plans to expand its insurance distribution.

Samsung Wallet

Samsung Wallet is a mobile application developed by Samsung Electronics, enabling users to store and manage various digital items such as credit cards, debit cards, tickets, and even IDs on their Samsung smartphones. By integrating with apps like Paytm, Samsung Wallet allows for a more streamlined and convenient user experience, centralizing multiple functionalities in one secure platform. This digital wallet aims to enhance daily transactions, ensuring users can access and use their digital assets effortlessly.

Source: Financial Express

Vodafone Idea Offers Rs 2,458 Crore Stake to Nokia and Ericsson

Vodafone Idea (Vi) will issue shares worth Rs 2,458 crore to Nokia and Ericsson to settle outstanding dues. Nokia and Ericsson will receive equity stakes of Rs 1,520 crore and Rs 938 crore, respectively. This move aims to secure support from these vendors to expand Vi’s 4G coverage and prepare for 5G rollout. Vi’s shareholders will vote on the proposal on July 10.

Preferential Issue

A preferential issue is a method of raising capital wherein a company offers shares to a select group of investors, usually at a discount to the current market price. This process allows the company to quickly secure funds without going through a public offering. It can help improve financial stability and support strategic partnerships, as seen in Vodafone Idea’s recent equity issuance to Nokia and Ericsson.

Source: Business Standard

Amul Navigates India’s Ice Cream Market, Plans Major Expansion

Amul, the leader in India’s ice cream market with a 55% share, is expanding from 19 to 25 plants, investing over Rs 1,000 crore this year. Despite India’s low per capita consumption of 4-5 cups annually, Amul aims to double its ice cream capacity within two years. Innovative flavors and a robust cold chain network have fueled growth, with ice cream sales contributing over Rs 4,000 crore in 2022-23.

Cold Chain Network

A cold chain network is a temperature-controlled supply chain essential for transporting perishable goods like ice cream. This network involves refrigerated storage and transportation to maintain product quality and safety from production to consumption. Amul’s extensive cold chain infrastructure, maintaining ice cream at -20°C, ensures nationwide distribution, critical for their success in the ice cream market. Efficient cold chains reduce spoilage, ensuring products reach consumers in optimal condition.

Source: Business Standard

NCLT Halts Byju’s $200 Million Rights Issue Amid Shareholder Dispute

The National Company Law Tribunal (NCLT) has ordered Byju’s to maintain the status quo on its shareholders, halting its $200 million rights issue. This decision comes amid ongoing legal proceedings, preventing Byju’s from completing its second rights issue that began on May 13 and was set to conclude on June 13. The tribunal’s directive ensures existing shareholders’ positions remain unchanged until the main petition is resolved.

Rights Issue

A rights issue is a method by which companies raise capital by offering existing shareholders the opportunity to purchase additional shares at a discounted price. This allows shareholders to maintain their proportional ownership while providing the company with needed funds. Rights issues are often used during financial restructuring or for funding expansion projects. In Byju’s case, the NCLT’s order to halt the rights issue protects current shareholders’ interests amid ongoing legal disputes.

Source: Business Today

PSUs’ Net Profit Surpasses Rs 5 Lakh Crore in FY24

The combined net profit of 92 listed PSU stocks surged by 44% to Rs 5.3 lakh crore in FY24. Revenue increased by 4.5%, reaching Rs 61.2 lakh crore. Profits have grown at an annualized rate of 34.5% over three years. This historic milestone, ahead of Budget 2024, reflects reduced loss-making units and strong performances from firms like ONGC and State Bank of India. The PSU sector now constitutes 17% of the BSE’s market capitalization.

Public Sector Undertakings (PSUs)

Public Sector Undertakings (PSUs) are government-owned corporations or state-owned enterprises created to undertake commercial activities on behalf of the government. They are crucial for economic development, providing infrastructure, generating employment, and ensuring public welfare. PSUs can be fully owned by the government or partially owned with a majority stake. Examples include companies like ONGC and the State Bank of India. Their profitability and performance significantly impact the country’s economy and market valuations.

Source: Financial Express

BSE Market Capitalization Hits Record High of Rs 429.32 Lakh Crore

The market capitalization of BSE-listed companies reached a record Rs 429.32 lakh crore (USD 5.14 trillion) as the BSE Sensex rose by 149.98 points to 76,606.57. This surge was driven by positive global equity trends. Power Grid led gains, while Hindustan Unilever and Infosys saw declines. Midcap and smallcap indices also rose by over 1%. Investors showed caution ahead of the US policy rate meeting.

Market Capitalization

Market capitalization refers to the total market value of a company’s outstanding shares of stock. It is calculated by multiplying the current share price by the total number of outstanding shares. Market cap provides a quick estimate of a company’s value and size, helping investors assess and compare companies. It’s a critical metric in the stock market, indicating the collective value of all companies listed on a particular exchange, such as the BSE in India.

Source: Financial Express

JSW Group to Invest $70 Billion by 2030, Expands Odisha Projects

The JSW Group has revised its investment target to $70 billion by 2030, including a $5 billion investment in Odisha for a 50 GWh EV battery plant, electric vehicles, a lithium refinery, and a copper smelter. This expansion aligns with their steel, cement, and electricity generation verticals. JSW Steel plans to invest Rs 65,000 crore over three years, including the Dolvi project in Maharashtra.

Electric Vehicle (EV) Battery Plant

An electric vehicle (EV) battery plant is a facility dedicated to the production of batteries used in electric vehicles. These plants manufacture battery cells and assemble them into battery packs, which are crucial for powering EVs. The capacity of a plant, measured in gigawatt-hours (GWh), indicates the total energy storage it can produce. High-capacity plants, like the 50 GWh plant planned by JSW, are vital for supporting the growing EV market and reducing reliance on fossil fuels.

Source: Business Standard

Reliance Jio Gains Approval for Satellite Internet Launch in India

Reliance Industries’ Jio Platforms, in a joint venture with SES, has received approval from the Indian space regulator IN-SPACe to operate satellites in India. This marks a significant step towards launching satellite-based high-speed internet, amid competition from Amazon’s Kuiper and Elon Musk’s Starlink. India’s satellite broadband market is projected to grow 36% annually, reaching $1.9 billion by 2030. Further approvals from the Department of Telecoms are awaited.

Satellite Internet

Satellite internet is a type of internet connection that uses satellite signals to provide broadband services, especially in remote or underserved areas where traditional fiber or cable internet is unavailable. It involves sending and receiving data from satellites orbiting the Earth. This technology offers global coverage and is crucial for connecting rural regions, enhancing communication infrastructure, and bridging the digital divide. Key players in this market include Starlink, Kuiper, and now, Reliance Jio in partnership with SES.

Source: Reuters

Adani’s Ambuja Cements Acquires Penna Cement for Rs 10,422 Crore

Adani Group’s Ambuja Cements will acquire Penna Cement Industries Ltd (PCIL) for Rs 10,422 crore, aiming to boost its capacity to 140 MTPA by 2028. This acquisition is set to increase Adani Cement’s market share by 2% nationwide and 8% in South India. PCIL’s dealers will join Adani’s network to enhance synergy. The deal includes PCIL’s strategic locations and limestone reserves, facilitating expansion and improved logistics via bulk cement terminals.

MTPA Explained

MTPA (Million Tonnes Per Annum) is a unit of measurement used in industries to denote production capacity over a year. In the cement industry, it quantifies the total output a company can produce annually. For example, if a company has a capacity of 140 MTPA, it means it can produce 140 million tonnes of cement in a year. This metric is crucial for understanding a company’s scale and potential market impact.

Source: Financial Express

India’s Core CPI Hits Record Low, But Food Prices Surge Amid Climate Shocks

India’s core CPI hit a record low of 3.12% in May, while overall CPI dropped to 4.75%. However, food inflation surged to 8.7%, driven by climate shocks and supply deficits. Economists warn of continued food price hikes, particularly for tomatoes and onions. The trajectory of headline CPI now depends on the Southwest monsoon’s spatial distribution. Reservoir levels and rural demand will also play crucial roles in managing inflation.

Core CPI Explained

Core CPI refers to the Consumer Price Index excluding volatile items like food and energy prices. It provides a clearer view of long-term inflation trends by focusing on stable categories such as housing, apparel, and education. In India, the core CPI is significant because it comprises nearly 50% of the total CPI basket, making it a critical measure for assessing the underlying inflationary pressures without the noise of short-term price fluctuations.

Source: Live MInt

WhatsApp Enhances Calling Features with 32-Participant Video Calls and Screen Sharing

WhatsApp announced major upgrades to its calling features, now allowing up to 32 participants in video calls across devices. The update includes screen sharing with audio, enabling users to watch videos together. Additionally, the speaker spotlight feature highlights the current speaker. Improvements in audio and video quality, including better noise and echo cancellation, ensure clearer calls. These enhancements aim to improve the user experience regardless of network conditions or device age.

Screen Sharing with Audio Explained

Screen Sharing with Audio allows users to broadcast their screen content along with audio to other participants during a call. This feature is particularly useful for collaborative tasks, such as watching videos together, presentations, or remote technical support. By integrating audio, WhatsApp enhances the shared experience, making it seamless and more interactive, as participants can hear exactly what’s happening on the shared screen, ensuring effective communication and engagement.

Source: Business Standard

FY25 Fiscal Deficit for Major States Lower Than Expected: Axis Bank

The fiscal deficit for 20 major Indian states is projected to be 2.8% of GDP in FY25, below the budgeted 3.2%, according to Axis Bank. This is due to moderated expenditure growth. Since FY18, actual deficits have consistently been lower than estimates. However, states like Punjab, Himachal Pradesh, and Kerala face severe debt issues. Capital expenditure is expected to grow significantly, supporting economic growth, with key states like Gujarat and Odisha doubling their FY23 levels by FY25.

Fiscal Deficit Explained

Fiscal Deficit is the gap between a government’s total revenue and its total expenditure. When a government spends more than it earns, it needs to borrow money, leading to a fiscal deficit. This metric is crucial for understanding a state’s or country’s financial health. A lower fiscal deficit indicates better financial management and less borrowing, which can lead to lower interest rates and more funds available for private investment, stimulating economic growth.

Source: Business Standard