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HCL Tech’s Net Profit Rises 11% YoY to Rs 3,983Cr – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

HCL Tech Q4 Results: Profit rises 11% YoY To Rs 3,983 Crore

HCL Technologies reported a consolidated net profit of Rs 3,983 crore for the quarter ended March, up 11% YoY. The company’s revenue from operations for the quarter increased by 18% YoY to Rs 26,606 crore. HCL’s EBIT also rose by 19% YoY to Rs 4,836 crore. For the full year ending March 2023, the company’s revenue has crossed the Rs 1 lakh crore mark, up 18% YoY. The company also declared an interim dividend of Rs 18 per equity share.

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HDFC, Nabard & NHB set to raise debt of up to Rs 14,000 crore

HDFC, National Housing Bank (NHB) and the National Bank for Agricultural and Rural Development (NABARD) are planning to raise debt capital in the form of bond sales on Friday. NHB and NABARD are set to sell three-year bonds of up to Rs 2,000 crore and Rs 5,000 crore, respectively, while HDFC plans to sell up to Rs 7,000 crore one-year-ten-month bonds.

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ZEEL begins talks with creditors for settlement of Sony merger

Zee Entertainment Enterprises Ltd. (ZEEL) is in settlement talks with its creditors to pay off debts and complete its merger with the Sony Group. Creditors had been approaching the bankruptcy court seeking repayments, but ZEEL has already repaid one creditor, IndusInd Bank Ltd., and the lender will now withdraw its objections against the merger. The merger will create a $10 billion media company with the largest viewership and pricing power in India. 

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Fortis acquires Gurugram-based Medeor Hospital for Rs 225 crore

Fortis Healthcare will acquire Medeor Hospital in Manesar, Gurugram, from VPS Group for Rs 225 crore. The acquisition will be funded through a mix of debt and internal accruals and is expected to close by end of July 2023. The hospital has a potential bed capacity of 350 beds and can be operationalized in a phased manner within nine months. This will be Fortis’ largest acquisition following its controlling stake acquisition by Malaysia-based IHH Healthcare.

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ICICI Securities Q4 Results: Net profit falls 23% to Rs 337 crore 

ICICI Securities reported a consolidated net profit of Rs 263 crore for Q4 2023, a 23% YoY decline. Revenue from operations also fell from Rs 892 crore in Q4 FY22 to Rs 885 crore in Q4 FY23.  However, income from interest for the quarter rose 35% YoY to Rs 287 crore. The brokerage income was Rs 310 crore. The company has recommended a final dividend of Rs 9.25 per equity share.

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Tata Communications Q4 Results: Profit down 11% to Rs 326 crore

Tata Communications has reported a consolidated net profit of Rs 326 crore for the quarter ended March, down 11% YoY. However, revenue from operations for the quarter stood at Rs 4,568 crore, up 7.1% YoY. For the full year (FY23), consolidated revenue was Rs 17,838 crore, while profits grew 21% to Rs 1,796 crore. The board has recommended a dividend of Rs 21 per share.

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HDFC Bank appoints Kaizad Bharucha as deputy managing director

HDFC Bank has appointed Kaizad Bharucha as Deputy Managing Director and Bhavesh Zaveri as Executive Director, with approval from the Reserve Bank of India. Both appointments will be for a term of three years and take effect from April 19. A meeting of the Board of Directors will be convened to formalize the appointments.

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TTK Healthcare to delist from NSE, BSE

TTK Healthcare has received approvals to voluntarily delist its equity shares from the National Stock Exchange and BSE. The delisting is due to the company’s own decision and not due to involuntary reasons such as bankruptcy or merger. The floor price for delisting has been set at Rs 1,051.31 per share.

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Vedanta pledges additional 2.4% shares of Hindustan Zinc

Vedanta has pledged an additional 10 crore shares (2.44% of its equity) in Hindustan Zinc, bringing the total pledged to 91% of its 64.92% stake. The move will allow Vedanta to use the proceeds for general business purposes, including debt repayment, capital expenditures, and operating expenses. The shares were pledged as part of a term loan agreement, which includes Hindustan Zinc as a security cover.

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Prestige Estates signs deal for 1M sq ft redevelopment project in Mumbai

Prestige Estates Projects has signed an agreement to redevelop the Shivshahi housing society project in Mumbai’s Worli locality. It spans over 1 million sq. ft. and involves 192 tenements spread over 3.3 acres. It has a revenue potential of almost Rs 6,000 crore. The company has repaid a loan of Rs 170 crore raised by the previous developer against the project’s development potential. It will invest over Rs 578 crore towards the construction cost.

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NCLT Approves HDFC-HDFC Bank Merger – Top Indian Market Updates

hdfc

Here are some of the major updates that could move the markets on Monday:

HDFC-HDFC Bank merger gets NCLT approval

The National Company Law Tribunal (NCLT) has given its approval to the HDFC-HDFC Bank merger. In April 2022, HDFC Bank agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion. The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24.

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Tata ceases discussions with Bisleri to acquire the packaged water giant

Tata Consumer Products has ended discussions with Bisleri for the potential acquisition of the packaged water giant. In November 2022, owners of Bisleri International said they will divest the company to the Indian conglomerate for an estimated ₹6,000-7,000 crore. Bisleri’s owners were reportedly looking to raise about $1 billion from a deal.

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Bharti Airtel launches unlimited 5G data offer

Bharti Airtel has launched an unlimited 5G data offer to hold on to its higher-paying postpaid users and also push its 4G users to upgrade to its next-gen wireless broadband service. This move comes after Reliance Jio’s new postpaid plans were announced earlier this week. The unlimited 5G data offer will be available to all postpaid customers as well as prepaid ones with data plans of Rs 239 and above.

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Va Tech Wabag secures order worth Rs 800 crore in Bangladesh

VA Tech Wabag has secured a Rs 800 crore project funded by the World Bank and Asian Infrastructure Investment Bank (AIIB) in Bangladesh. The company will design, build and operate a sewage treatment plant with a capacity of 200 million litre per day (MLD) in Dhaka. This project has the potential to be expanded to 600 MLD in the future

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Havells commences commercial production of ACs at Sri City plant

Havells India Ltd has commenced commercial production of air conditioners (ACs) at its Sri City plant. The company manufactures home appliances, lighting for domestic, commercial, & industrial applications, LED lighting, fans, modular switches & wiring accessories, water heaters, etc.

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Zee Entertainment calls report of $10 million repayment ‘speculative’

Zee Entertainment Enterprises Ltd (ZEEL) called the report saying it will repay $10 million to IndusInd to wrap the Sony deal as “speculative”. The media company said it is exploring several strategies related to the ongoing dispute. On Thursday, Bloomberg reported that ZEEL has agreed to repay its dues to the IndusInd Bank to resolve insolvency proceedings against it and get a step closer to completing its merger with the Sony Group.

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GAIL signs MoU with Shell Energy India for exploring ethane sourcing opportunities

GAIL (India) Ltd. signed a Memorandum of Understanding (MoU) with Shell Energy India for exploring ethane sourcing and other energy value chain opportunities. Through this agreement, GAIL expects to dive into the prospects of importing and handling different hydrocarbons that serve as essential chemical and petrochemical precursors. The company said this is a step towards achieving improved sustenance in business operations.

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Unichem Labs gets USFDA approval for chronic angina treatment tablets

Unichem Laboratories Ltd has received approval from the US Food and Drug Administration (USFDA) for its Ranolazine Extended-Release tablet. The drug is prescribed for the treatment of chronic angina (a type of chest pain caused by reduced blood flow to the heart). The product will be commercialised from its manufacturing facility in Goa. 

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Maiden Forgings to launch IPO next week

Steel bars and wires manufacturer Maiden Forgings will launch an Initial Public Offering (IPO) to raise Rs 24 crore. The IPO will open on March 22 and close on March 24. Out of the total 37,84,000 equity shares on offer, not more than 17,97,000 equity shares have been reserved for Qualified Institutional Buyers (QIB). A total of 5,39,100 shares have been reserved for Non-Institutional Investors (NII) and the rest for retail individual investors.

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Titan’s Net Profit Falls 4% in Q3 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Titan Q3 Results: Net profit falls 4% YoY to ₹951 crore

Titan Ltd reported a 4% YoY decline in net profit to ₹951 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 11% YoY to ₹10,444 crore during the same period. ​​The company’s jewellery business registered a total income of ₹9,518 crore in Q3, up 11% YoY. Titan’s eye care segment registered a 12% YoY growth in total income to ₹174 crore in Q3.

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Mahindra Electric Mobility merges with parent Mahindra & Mahindra

Mahindra Electric Mobility Ltd (MEML) has officially merged into the parent company, Mahindra and Mahindra Ltd (M&M). The merger received final approval from the National Company Law Tribunal (NCLT) on January 13. With this merger, M&M aims to synergise electric vehicle (EV) development, manufacturing, and sales operations.

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HDFC Q3 Results: Net profit rises 13% YoY to ₹3,691 crore

HDFC Ltd reported a 13% YoY increase in net profit to ₹3,691 crore for the quarter ended December (Q3 FY23). The mortgage lender’s revenue from operations grew 29% YoY to ₹15,230 crore during the same period. Income from interest stood at ₹14,457 crore in Q3, up 30% YoY. Dividend income more than doubled to ₹482 crore in Q3.

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Reliance Retail begins accepting govt’s digital rupee for sales

Reliance Retail has started accepting retail payments via the Indian government’s Digital Rupee across its stores in the country. The company launched the first in-store acceptance of the RBI-created and blockchain-based Central Bank Digital Currency (CBDC) at its gourmet food store Freshpik. The CBDC is the digital version of fiat money that will co-exist will hard cash.

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Dabur India Q3 Results: Net profit falls 5% YoY to ₹476 crore

Dabur India Ltd reported a 5.4% YoY decline in consolidated net profit to ₹476 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 3.4% YoY to ₹3,043.2 crore during the same period. Dabur’s homecare business registered a strong 18% YoY growth in Q3. The company said it is facing many adverse conditions in the rural markets due to inflationary pressures.   

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Bharti Airtel completes merger of Nettle Infrastructure, Telesonic Networks

Bharti Airtel Ltd has completed the merger of its wholly-owned subsidiaries Nettle Infrastructure Investments Ltd and Telesonic Networks Ltd. Around 30,000 non-convertible debentures (NCDs) of the face value of ₹10,00,000 each (aggregating to ₹3,000 crore) and 17,500 listed commercial papers of 5,00,000 each (aggregating to ₹875 crore) issued by Telesonic will also be transferred to Bharti Airtel.

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SBI gave loans worth ₹21,000 crore to Adani Group firms: Report

According to a Bloomberg report, India’s largest public lender State Bank of India (SBI_ has given loans of as much as ₹21,000 crore to Adani Group firms. SBI’s exposure includes $200 million from Adani’s overseas units. Reuters reported that the Reserve Bank of India had asked public sector banks for details of their exposure to the Adani Group of companies. Adani Group firms’ stocks lost a combined market capitalisation of over ₹8.2 lakh crore in the past week due to a scathing report by US-based short seller firm Hindenburg Research. 

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Apollo Tyres Q3 Results: Net profit rises 30% YoY to ₹292 crore

Apollo Tyres Ltd reported a 30% YoY increase in consolidated net profit to ₹292 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 13% YoY to ₹6,423 crore during the same period. Input costs eased to some extent in the past quarter, which helped the tyre manufacturer improve margins.

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Tata Consumer Q3 Results: Net profit rises 26% YoY to ₹364 crore

Tata Consumer Products reported a 26% YoY increase in consolidated net profit to ₹364.43 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 8.3% YoY to ₹3,474.5 crore during the same period. The FMCG company’s EBITDA stood at ₹458 crore, down 2% YoY. The coffee business recorded revenue growth of 34% YoY, while its India foods business registered a 29% revenue growth in Q3.

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Adani Group’s ₹493Cr Open Offer for NDTV to Start Tomorrow – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Adani Group’s ₹493 crore open offer for NDTV to start tomorrow

Adani Group’s open offer to acquire an additional 26% shareholding in the media company New Delhi Television (NDTV) from the market will start tomorrow. The offer will close on December 5. If fully subscribed, the open offer will amount to ₹492.81 crore at ₹294 per share. To learn more about Adani’s takeover of NDTV, click here.

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RBI allows HDFC Bank, Canara Bank to open Vostro account for INR trade with Russia

The Reserve Bank of India (RBI) has allowed HDFC Bank and Canara Bank to open a special “vostro account” for trade in Indian Rupees with Russia. Vostro accounts are accounts held by a bank on behalf of another (often a foreign bank), and this forms a key part of correspondent banking. Payments can be settled in Rupee for India-Russia trade, enabling cross-border transactions in the Indian currency.

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Jindal Steel wins bid to build 300 MW coal power plant in Botswana

Botswana has selected Jindal Steel & Power Ltd (JSPL) to build a coal-fired power plant. The contract is for the design, construction, operation, and maintenance of a 300 megawatts  (MW) net greenfield coal-fired power plant. JSPL will finance the construction of the plant and recoup its investments from selling electricity to the Botswana Power Corporation (BPC) under terms to be negotiated between the two parties.

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Aurobindo Pharma aims to complete ₹2,000 crore plant in AP by March 2024

Aurobindo Pharma Ltd aims to complete its ₹2,000 crore Penicillin G (Pen G) plant in Andhra Pradesh by March 2024, even as the trial of the initial batches will take place starting October 2023 onwards. The production capacity of the plant will be around 15,000 tonnes annually. The plant has been approved under the government’s PLI scheme for Key Starting Materials/Drug Intermediates and Active Pharmaceutical Ingredients (APIs).

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NCLT clears Jio’s acquisition of Reliance Infratel

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Reliance Property & Projects Management Services Ltd’s (RPPMSL) acquisition of Reliance Infratel Ltd (RITL). RPPMSL is a subsidiary of Reliance Jio that looks into the telco’s tower business. Jio has to deposit ₹3,500 crore in an SBI escrow account to complete the acquisition of RITL.

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Lighthouse India to sell Nykaa shares worth ₹335 crore

Investment firm Lighthouse India will sell shares worth ₹335 crore of Nykaa via a block deal tomorrow at a price band of ₹180-183.50 per share. After the lock-in period expired earlier this month, several pre-IPO investors have been liquidating shares held by them. Last week, investor Mala Gopal Gaonkar sold 5.75 crore shares of Nykaa at an average price of ₹175.48 in a deal worth ₹1,009 crore.

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Arvind forms joint venture with PurFi Global to reduce textile waste

Textiles manufacturer Arvind Ltd and US-based PurFi Global LLC will set up a joint venture (JV) to reduce the amount of textile waste going to landfills. The JV plans to set up its first fibre rejuvenation facility near one of Arvind’s manufacturing facilities in India. PurFi’s technology creates a solution that transforms textile waste into virgin-quality fibres.

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Ashok Leyland eyeing to launch Dost in Middle East, African markets

Ashok Leyland Ltd is testing its highly popular light commercial vehicle (LCV) ‘Dost’ with left-hand drive (LHD) option as it plans to serve the Middle East and African markets. The company currently sells a range of LCVs under the ‘Dost’ brand with right-hand drive option both in domestic and overseas. In October 2022, sales from the LCVs business grew by 18% YoY to 5,671 units.

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Vi’s Net Loss Widens to ₹7,596 crore in Q2 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Vodafone Idea Q2 Results: Net loss widens to ₹7,596 crore

Vodafone Idea (Vi) reported a consolidated net loss of ₹7,596 crore for the quarter ended Sept (Q2 FY23). It posted a net loss of ₹7,297 crore in the previous quarter (Q1 FY23) and a loss of ₹7,132 crore in Q2 FY22. Vi’s revenue from operations rose 2% quarter-on-quarter (QoQ) to ₹10,615 crore in Q2 FY23. The average revenue per user (ARPU) stood at ₹131, up 2.3% QoQ. The telecom operator’s subscriber base fell 2.5% QoQ to 23.44 crore.

Read more here.

Gati to buy out Japanese partner in JV in FY23

Logistics firm Gati Ltd will buy out its Japanese partner Kintetsu Worldwide in a joint venture (JV) Gati-Kintetsu Express Pvt Ltd this financial year. Currently, Gati owns 70% of the JV, while Kintetsu owns the remaining 30%. The company has appointed Ambit Capital to manage the deal. 

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HDFC Q2 Results: Net profit rises 18% YoY to ₹4,454 crore

Housing Development Finance Corp (HDFC) Ltd reported an 18% year-on-year (YoY) increase in consolidated net profit to ₹4,454 crore in Q2 FY23. Its revenue from operations rose 23% YoY to ₹15,027.2 crore during the same period. The net interest income (NII) stood at ₹4,639 crore in Q2, up 13% YoY. HDFC’s total assets under management (AUM) increased from ₹5.9 lakh crore in Q2 FY22 to ₹6.9 lakh crore in Q2 FY23.

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Godrej Properties acquires 50-acre land parcel near Mumbai

Godrej Properties Ltd has signed an agreement to acquire a 50-acre land parcel in the fast-developing micro market of Manor locality in Palghar near Mumbai. The company is planning to develop a residential project on the acquired plot. The proposed project is estimated to have a developable potential of nearly 1.2 million sq. ft. of saleable area. It is projected to offer a booking potential of ~₹500 crore.

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SRF Q2 Results: Net profit rises 26% YoY to ₹481 crore

SRF Ltd reported a 26% YoY increase in consolidated net profit to ₹481 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 31% YoY to ₹3,728 crore during the same period. The company’s earnings before interest & tax (EBIT) increased 21% YoY to ₹689 crore in Q2. Revenue from its chemicals segment stood at ₹1,830 crore, up 62% YoY.

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Bharti Airtel deploys 5G at Bengaluru Airport

Bharti Airtel has deployed 5G cell sites at the new terminal of the Kempegowda International Airport, Bengaluru. This is the first airport in India to get 5G coverage. Airtel customers travelling from the new terminal will now get 5G coverage in the arrival & departure terminals, lounges, boarding gates, migration & immigration areas, security gates, and baggage claim belt areas.

Read more here.

Hero MotoCorp Q2 Results: Net profit falls 10% YoY to ₹716 crore

Hero MotoCorp Ltd reported a 10% YoY decline in net profit to ₹387 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 7.4% YoY to ₹9,075.35 crore during the same period. The company’s vehicle sales in Q2 fell by around 1% to 14.28 lakh units. EBITDA stood at ₹1,038 crore in Q2, down 2.6% YoY.

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IIFL Finance aims to triple co-lending to over ₹13,000 crore

IIFL Finance Ltd is aiming to triple its co-lending to more than ₹13,000 crore in a year. The company is seeking to become asset-light through partnerships with about six banks. The altered strategy follows a de-risking program in the aftermath of the IL&FS crisis. It has ongoing co-lending partnerships Central Bank of India, Union Bank of India, DBS, Canara Bank, and Indian Bank for products such as loans for homes, gold, and microfinance.

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Ajanta Pharma Q2 Results: Net profit falls 20% YoY to ₹156 crore

Ajanta Pharma Ltd reported a 20% YoY decline in consolidated net profit to ₹156.6 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 6% YoY to ₹938.1 crore during the same period. Total expenses stood at ₹775.45 crore in Q2, up 18.5% YoY. Sales from the Indian market grew 27% YoY to ₹314 crore. The pharma company’s board has declared an interim dividend of ₹7 per share.

Read more here.

Alembic Pharma gets USFDA approval for generic injection

Alembic Pharmaceuticals has received approval from the US Food & Drug Administration (USFDA) to market Ketorolac Tromethamine injection in the US market. The drug is indicated for short-term management of moderately severe acute pain in adult patients. According to IQVIA data, the injection has an estimated market size of $59 million in the US.

Read more here.

HPCL Q2 Results: Net loss at ₹2,475 crore

Hindustan Petroleum Corp Ltd (HPCL) reported a consolidated net loss of ₹2,475.69 crore for the quarter ended Sept (Q2 FY23). It posted a net loss of ₹1,918.89 crore in Q2 FY22. The company’s revenue from operations rose 30% (YoY) to ₹1.13 lakh crore in Q2 FY23. HPCL had not increased the prices of petrol, diesel, and LPG despite rising costs.

Read more here.

Adani Enterprises Q2 Results: Net profit doubles to ₹461 crore

Adani Enterprises Ltd reported a 117% YoY jump in consolidated net profit to ₹460.94 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 188% YoY to ₹38,175.23 crore during the same period. EBITDA increased by 69% YoY to ₹2,136 crore in Q2. The integrated resources management and airports divisions recorded strong performance.

Read more here.

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RBI Hikes Repo Rate by 50 bps to 5.9% – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

RBI hikes repo rate by 50 bps to 5.9%

The Reserve Bank of India (RBI) has hiked the repo rate by 50 basis points (bps) to 5.90% to control high inflation rates. This is the fourth straight increase in the current cycle. The RBI has now raised rates by a total of 190 bps since its mid-meeting hike in May 2022. The central bank has lowered India’s real gross domestic product (GDP) forecast for FY23 from 7.2% to 7%. It has also maintained the consumer price index (CPI) inflation forecast for FY23 at 6.7%

Read more here.

Akasa Air partners with RateGain for dynamic allocation of airfares

Akasa Air has partnered with RateGain Travel Technologies Ltd for gathering real-time air travel information that will help the airline in deciding dynamic fares. RateGain said its AI-powered platform, AirGain, provides the airline’s revenue and pricing teams with the most accurate and reliable market insights to build a competitive pricing strategy. It provides real-time competitor insights across channels to reduce disparity and revenue losses.

Read more here.

HDFC raises lending rate by 50 bps

HDFC Ltd hiked its lending rate by 50 basis points (bps) after the Reserve Bank of India (RBI) raised the benchmark interest rate to curb inflation. The move would increase equated monthly installments (EMIs) for housing loans by the firm. HDFC has undertaken seven rate hikes in the last five months.

Read more here.

PM Modi to launch 5G services on Saturday

Prime Minister Narendra Modi will launch 5G services in India tomorrow during the inauguration of the sixth edition of India Mobile Congress (IMC-2022). Mobile operators plan to commence the commercial rollout of 5G after that. Reliance Jio and Bharti Airtel have announced plans to start 5G later in October, and metro cities will be provided with services by Diwali.

Read more here.

Inox Leisure opens multiplex theater in Srinagar

Inox Leisure Ltd has commenced commercial operations of a multiplex cinema theatre in Srinagar, Jammu & Kashmir. The multiplex consists of three screens and 522 seats. INOX is now present in 74 cities with 165 Multiplexes, 705 screens, and a total seating capacity of 1,57,290 across India.

Read more here.

LTTS partners with Qualcomm to provide solutions for 5G private networks

L&T Technology Services Ltd (LTTS) has extended its collaboration with US-based chipmaker Qualcomm Technologies to deploy end-to-end solutions for the global 5G private network industry. LTTS will establish an engineering center of excellence in California with Qualcomm Technologies’ support to accelerate the adoption of 5G private wireless networks.

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Vi partners with CareGame to launch 5G mobile cloud gaming in India

Vodafone Idea Ltd has partnered with Paris-based gaming technology company CareGame to launch 5G mobile cloud gaming in India. The company said that with 5G’s low latency technology, the cloud gaming industry is expected to democratise even further. Android and iOS users will be able to experience high-quality mobile gaming across popular genres without downloading them.

Read more here.

Dilip Buildcon emerges as lowest bidder for ₹723 crore project

Dilip Buildcon Ltd was declared as the lowest (L-1) bidder for Phase 2 of the Ahmedabad Metro Rail project in Gujarat. The project entails the construction of 7.5 kilometers of elevated viaduct and seven stations from Sector-1 to Mahatma Mandir. The cost of the project (excluding GST) is expected to be ₹723.45 crore. 

Read more here.

India’s core sector growth slows to 3.3% in August

The output of eight core infrastructure sectors grew 3.3% in August 2022— the lowest in nine months. The production growth of core sectors stood at 12.2% in the year-ago period. Output growth of eight infrastructure sectors (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity) was 9.8% during April-August of FY23, compared to 19.4% a year ago.

Read more here.

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RBI Raises Repo Rate by 50 bps to 5.4% – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

RBI raises repo rate by 50 bps to 5.4%

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has raised the repo rate by 50 basis points to 5.4% to bring down inflation in the country. “The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth,” said RBI governor Shaktikanta Das. The RBI has retained its gross domestic product (GDP) forecast for FY23 at 7.2%.

Repo rate is the interest rate at which a central bank lends money to all the other banks in the country. A hike in repo rates makes bank loans costlier, leading to lower circulation of money in the economy.

Read more here.

Titan Q1 Results: Net profit jumps 13x YoY to Rs 793 crore

Titan Company Ltd reported a 1200% YoY jump in net profit to Rs 793 crore for the quarter ended June (Q1 FY23). Its revenue from operations rose 175.8% YoY to Rs 8,961 crore during the same period. Its jewellery business posted an income of Rs 7,600 crore in Q1, up 208% YoY. Income from Titan’s watches & wearables segment grew 169% YoY to Rs 785 crore.

Read more here.

Havells India launches innovative range of ‘Signia’ switches

Havells India Ltd unveiled its innovative range of ‘Crabtree Signia’ switches in Kochi. The range comprises of two categories: smart and luxury switches (Signia Smart and Signia Grande). They are equipped with high-end aesthetics and technology. It was designed in-house at Havells India’s research & development (R&D) center.

Read more here.

M&M Q1 Results: Net profit at Rs 2,360.7 crore

Mahindra & Mahindra Ltd (M&M) reported a consolidated net profit of Rs 2,360.7 crore for the quarter ended June (Q1 FY23). It had posted a net loss of Rs 331.74 crore in the corresponding quarter last year (Q1 FY22). Its revenue from operations rose 48.2% YoY to Rs 28,412.38 crore in Q1 FY23. M&M sold 1,49,803 vehicles during the quarter, registering a growth of 74% YoY. 

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HDFC raises $1.1 billion ‘social loan’ for financing affordable housing segment

Housing Development Finance Corp (HDFC) Ltd has raised $1.1 billion (~Rs 8,700 crore) from investors under the ‘Syndicated Social Loan Facility’ to cater to the affordable housing segment. The company has raised the amount via external commercial borrowings (ECBs). Proceeds from the social loan would go towards financing affordable housing loans across India.

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UCO Bank Q1 Results: Net profit rises 22% YoY to Rs 123.6 crore

UCO Bank reported a 22% YoY increase in net profit to Rs 123.61 crore from the quarter ended June (Q1 FY23). Its net interest income (NII) rose 12.96% YoY to Rs 1,649.54 crore during the same period. [NII is the difference between the interest income a bank earns on loans and the interest it pays depositors.] The gross non-performing assets (GNPA) ratio stood at 7.42% in Q1 FY23, compared to 9.37% in Q1 FY22. Provisions fell 78% YoY to Rs 246.83 crore in Q1 FY23.

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Alkem Labs Q1 Results: Net profit falls 73% YoY to Rs 127 crore

Alkem Laboratories Ltd reported a 72.7% YoY decline in consolidated net profit to Rs 127.64 crore for the quarter ended June (Q1 FY23). Its revenue from operations fell 5.67% YoY to Rs 2,576.38 crore during the same period. International sales declined by 3.8% YoY to Rs 760.4 crore in Q1. EBITDA stood at Rs 203 crore, down 66% YoY.

Read more here.

NTPC partners with Ohmium, Spirare Energy to generate green hydrogen

US-based Ohmium International, Inc., is partnering with Spirare Energy to generate green hydrogen at the NTPC Energy Technology Research Alliance (NETRA) campus. Spirare Energy will manage the engineering, procurement, and construction (EPC) of the project, while Ohmium will provide the hydrogen electrolyzers. NTPC, the largest power utility in India, set up NETRA in 2009.

In other news, NTPC has commissioned the full capacity of the 296 megawatts (MW) Fatehgarh solar power project in Rajasthan.

Read more here.

Nykaa Q1 Results: Net profit rises 33% YoY to Rs 4.5 crore

FSN E-Commerce Ventures Ltd (Nykaa) reported a 33.4% YoY rise in consolidated net profit to Rs 4.55 crore for the quarter ended June (Q1 FY23). However, net profit declined by 47.6% when compared to the previous quarter. Its revenue from operations rose 40.5% YoY to Rs 1,148.42 crore during the same period. Nykaa’s gross merchandise volume (GMV) stood at Rs 2,155.8 crore in Q1, up 47% YoY.

Read more here.

SJVN secures 200 MW solar project worth Rs 1,200 crore in Maharashtra

SJVN Ltd has secured a 200 MW solar project in an e-reverse auction by Maharashtra State Electricity Distribution Company Ltd (MSEDCL). This ground-mounted solar project will be developed by SJVN anywhere in Maharashtra through an EPC contract. The tentative cost for the development of this project is Rs 1,200 crore.

Read more here.

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Market News Top 10 News

HDFC Posts 22% YoY Rise in Net Profit in Q1 – Top Indian Market Updates

hdfc

Here are some of the major updates that could move the markets tomorrow:

HDFC Q1 Results: Net profit rises 22% YoY to Rs 3,669 crore

Housing Development Finance Corporation (HDFC) reported a 22% YoY increase in net profit to Rs 3,669 crore for the quarter ended June (Q1 FY23). Its net interest income (NII) rose 7.8% YoY to Rs 4,447 crore during the same period. HDFC’s assets under management (AUM) stood at Rs 6,71,364 crore in Q1, up 17% YoY. Individual loan disbursements also jumped 66% YoY.

Read more here.

Reliance, Ola, and Rajesh Exports sign agreement under PLI scheme for battery manufacturing

Reliance New Energy Ltd, Ola Electric Mobility, and Rajesh Exports have signed the Program Agreement under Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell Battery Storage. These companies will receive incentives under the government’s Rs 18,100 crore program. The PLI scheme has been customised to favour companies interested in electric mobility and renewable energy.

Read more here.

Ashok Leyland Q1 Results: Net profit at Rs 96 crore

Ashok Leyland Ltd reported a consolidated net profit of Rs 96 crore for the quarter ended June (Q1 FY23). The commercial vehicle maker had posted a net loss of Rs 324 crore in the corresponding quarter last year (Q1 FY22). Its revenue from operations jumped 107% YoY to Rs 8,470 crore in Q1 FY23. Its domestic light commercial vehicle (LCV) volumes stood at 14,384 units, up 66% YoY.

Read more here.

Alembic Pharma’s arm gets USFDA approval to market skin treatment drug

Alembic Pharmaceuticals Ltd’s subsidiary, Aleor Dermaceuticals, has received approval from the US Food & Drug Administration (USFDA) to market Diclofenac Sodium topical gel. The product is indicated for the topical treatment of actinic keratoses (scaly spots or patches on the top layer of skin). As per IQVIA data, the topical gel had an estimated market size of $10 million (~Rs 79.4 crore) for the 12 months ended March 2022.

Read more here.

Cipla Q1 Results: Net profit falls 4% YoY to Rs 686 crore

Cipla Limited reported a 3.96% YoY decline in consolidated net profit to Rs 686.4 crore for the quarter ended June (Q1 FY23). Its revenue from operations fell 2% YoY to Rs 5,375 crore during the same period. The pharma company’s India revenue (trade generics, prescription business, and consumer health segments) fell 8.4% YoY to Rs 2,483 crore. 

Read more here.

Yes Bank to raise Rs 8,898 crore from Carlyle, Advent

Yes Bank’s board has approved a proposal to sell 10% of its stake to global private equity investors Carlyle Group and Advent International for Rs 8,898 crore. The lender will issue up to 369 crore equity shares to both investors at Rs 13.78 per share. It will also issue 256 crore share warrants at Rs 14.82 per warrant to funds affiliated with Carlyle and Advent. The fundraise will further boost Yes Bank’s capital adequacy and aid its medium to long-term sustainable growth objectives

Read more here.

IOCL Q1 Results: Net loss at Rs 1,992 crore

Indian Oil Corporation Ltd reported a net loss of Rs 1,992.53 crore for the quarter ended March (Q1 FY23). It had posted a net profit of Rs 6,021.88 crore in the corresponding quarter last year (Q1 FY22). Its revenue from operations rose 62.47% YoY to Rs 2,51,933 crore in Q1 FY23. The average gross refining margin (GRM) stood at $31.81 per barrel in Q1 FY23, compared to $6.58 per barrel in Q1 FY22.

Read more here.

DLF Q1 Results: Net profit rises 39% YoY to Rs 470 crore

DLF Limited reported a 39% YoY increase in consolidated net profit to Rs 469.56 crore for the quarter ended June (Q1 FY23). Its total income rose 22% YoY to Rs 1,516.28 crore during the same period. The realty major’s sales bookings jumped two-fold to Rs 2,040 crore in Q1. DLF has so far developed more than 153 real estate projects comprising over 330 million square feet of area.

Read more here.

Delhi govt plans 1,000 new charging points, 100 battery swapping stations

The Delhi government announced plans to ramp up infrastructure to support more electric vehicles (EV) in the capital. As part of the plan, about 1,000 new charging points for EVs and 103 battery swapping stations will be set up by Delhi Transco Ltd (DTL) in the next few weeks. The first set of charging stations are expected to be inaugurated next month.

Read more here.

NTPC Q1 Results: Net profit rises 15% YoY to Rs 3,978 crore

NTPC Limited reported a 15.5% YoY increase in consolidated net profit to Rs 3,977.7 crore for the quarter ended June (Q1 FY23). Its revenue from operations rose 44.46% YoY to Rs 43,177.14 crore during the same period. NTPC’s board has approved the issuance of debentures up to Rs 12,000 crore through private placement in the domestic market.

Read more here.

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Market News Top 10 News

Rupee Hits 80 per US Dollar At Record Lowest – Top Indian Market Updates

An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany./File Photo

Here are some of the major updates that could move the markets tomorrow:

Rupee Hits 80 per US Dollar At Record Lowest

On July 19, 2022, Tuesday, the Indian Rupee to US Dollar conversion rate hit a new record low at Rs 80 per US Dollar in the interbank spot exchange. The rising trade deficit, continuous outflow of foreign portfolio investors, and rising crude oil prices are some of the reasons that are said to have kept the rupee under pressure.

HDFC Life Q1 Results: Net profit rises 21% YoY to Rs 365 crore

HDFC Life Insurance Company Ltd reported a 21% YoY increase in net profit to Rs 365 crore for the quarter ended June (Q1 FY23). Total premium rose 21% YoY to Rs 9,396 crore during the same period. The first-year premium collection grew 27% to Rs 4,776 crore in Q1. The company’s subsidiary, HDFC Pension, crossed the Rs 30,000 crore assets under management (AUM) mark and has almost doubled its AUM in just 15 months.

Read more here.

SpiceJet launches 26 new domestic flights

SpiceJet Ltd has announced the launch of 26 new domestic flights. The airline will connect Nashik with Hyderabad and Delhi with Khajuraho under the UDAN scheme with new and additional flights starting July 22, 2022. The airline will also reduce direct flights to Nashik from Delhi, Hyderabad to Jammu, Mumbai to Guwahati, Varanasi to Ahmedabad, and Kolkata to Jabalpur. SpiceJet will deploy Boeing 737 and Q400 aircraft on these routes.

Read more here.

DLF aims to double retail presence in 4-5 years, building new malls

DLF Chairman Rajiv Singh said the company has initiated the development of new shopping malls and looks to double its retail portfolio in the next five years. At present, DLF has a retail footprint of 42 lakh square feet comprising eight properties, including malls and shopping centres mainly across Delhi-NCR. The company would also scale up the development of housing and office projects.

Read more here.

Indian Oil, NTPC form JV to set up a renewable energy-based power plant for refineries

NTPC Ltd has signed an agreement with Indian Oil Corporation Ltd (IOCL) to form a joint venture (JV) to meet the power requirements of IOCL’s refineries. Through this JV, Indian Oil plans to meet the additional power requirement of its refineries using round-the-clock renewable energy of up to 650 megawatts (MW) by Dec 2024. NTPC Green Energy Ltd (NGEL) will form the JV company to supply RE-RTC power to IOCLl.

Read more here.

HUL Q1 Results: Net Profit Up 11%

For the quarter ended June 30, 2022, Hindustan Unilever recorded an 11% increase in standalone net profit at Rs 2,289 crore as compared to Rs 2,061 crore in the same quarter last year. Revenue from operations increased by 19.48% YoY to Rs 14,016 crore from Rs 11,730 crore in the same quarter last year. Home Care delivered 30% growth driven by strong Fabric Wash and Household Care performance. Both categories grew in high double-digits with all parts of the portfolio performing well. 

Read more here.

Reliance Jio adds 31 lakh new mobile users in May; Bharti Airtel adds 10.27 lakh users

Reliance Jio Infocomm gained 31 lakh mobile subscribers in May 2022, taking its total user base to 40.97 crore. Bharti Airtel added 10.27 lakh users, and its total mobile subscriber count rose to 36.21 crore. Vodafone Idea lost nearly 7.59 lakh mobile subscribers during May, and its total subscriber base fell to 25.84 crore.

Read more here.

Russia defaults on LNG supplies to India. 

As a result of Russia’s retaliatory sanctions against one of the gas suppliers to India, at least five cargoes or shiploads of LNG have not been delivered by Russia to India. India’s GAIL Limited, a government-owned natural gas explorer and producer, has a long-term agreement to purchase 2.85 million tonnes of LNG a year from a Singapore-based subsidiary of Russian gas producer Gazprom.

Read more here.

Jio deposits the highest earnest money in the race for 5G Spectrum

Competing against Airtel, VI and Adani, Reliance Jio has deposited Rs 14,000 crore, with the DoT as earnest money deposit (EMD). An EMD is an amount that a buyer gives to the seller to show an inclination to successfully complete a deal. Adani Data Networks has deposited just Rs 100 crore, suggesting that the giant might buy spectrum only for airwaves in a few circles for the enterprise or limited use. Airtel and VI both deposited Rs 5,500 crore and Rs 2,200 crore, respectively. 

Read more here.

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Market News Top 10 News

Vi Defers Rs 8,837 crore AGR Dues Payment – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Vodafone Idea defers Rs 8,837 crore AGR dues payment

Vodafone Idea Ltd’s (VIL) board has decided to defer payment of additional adjusted gross revenues (AGR) of Rs 8,837 crore dues by four years. On June 15, the Department of Telecommunications (DoT) had raised AGR demand for additional two financial years beyond 2016-17, which were not covered under the Supreme Court order on the statutory dues. The DoT letter also offers VIL an option for equity conversion of interest dues upfront for these AGR-related dues.

Read more here.

Tata Steel plans low CO2 steel-making technologies in UK, Netherlands

Tata Steel Ltd is working on a plan for transition to low carbon technologies for making steel in the UK and the Netherlands. Both Tata Steel UK and Tata Steel Netherlands have been developing detailed plans for transition to low CO2 technologies. It is in line with the parent company’s goal to produce CO2-neutral steel by 2050 in Europe. 

Read more here.

L&T’s hydrocarbon business secures large contracts

L&T Energy Hydrocarbon (LTEH) has secured three offshore packages (in the range of Rs 2,500-5,00) crore) from an overseas client. The orders consist of the engineering, construction, and installation of various new offshore jacket structures. LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers.

Read more here.

Macrotech Developers enters Bengaluru; eyes Rs 1,200 crore sales from first housing project

Macrotech Developers Ltd announced its entry into the Bengaluru market. It has formed a joint venture to develop its first housing project with an estimated sales booking value of Rs 1,200 crore. The realty firm will acquire 100% equity of G Corp Homes to make its foray into the Bengaluru market. Macrotech Developers markets its properties under the Lodha brand.

Read more here.

Indian media, entertainment industry likely to touch Rs 4.30 lakh cr by 2026: PwC report

As per a report by global consultancy firm PwC, the Indian media and entertainment industry is expected to grow at a CAGR of 8.8% and reach Rs 4.30 lakh crore by 2026. The growth would be paced by digital media and advertising through deeper penetration of the internet and mobile devices in the domestic market. TV advertising is expected to reach over Rs 43,000 crore by 2026.

Read more here.

Glenmark Pharma says USFDA issues Form 483 observations for co’s formulation facility

The US Food & Drug Administration (USFDA) has issued Form 483 with six observations to Glenmark Pharma’s formulation manufacturing facility in Baddi, Himachal Pradesh. The facility caters to the production of oral solids, liquid orals, and external preparations like lotions, creams, and respiratory segment products. The pharma company said it is committed to undertaking all necessary steps to address USFDA’s observations at the earliest. 

Read more here.

RBI taps HDFC, ICICI, SBI for blockchain-based trade financing project

The Reserve Bank of India (RBI) is engaging with HDFC Bank, ICICI Bank, State Bank of India, and dozen other top lenders to run a blockchain-based pilot project centered on trade financing. The project could help prevent loan frauds by fugitive borrowers (like Nirav Modi and Mehul Choksi) that found loopholes in the system to siphon off thousands of crores. Belgium-based SettleMint, US-based Corda Technologies, and IBM would provide technical support for the project.

Read more here.

Aditya Birla Sun Life AMC partners BentallGreenOak

Aditya Birla Sun Life AMC Ltd and BentallGreenOak are planning to raise ~Rs 1,000 crore through their joint platform for structured credit investments in India. The funds will be used to invest in real estate projects in key property markets, including metro cities. BentallGreenOak is a global real estate investment management advisor based in Toronto, Canada.

Read more here.

Tata Nexon EV catches fire in Mumbai; automaker initiates probe

Tata Motors Ltd is investigating the root cause behind a Nexon EV electric car that caught fire in the suburb of Vasai, Mumbai. This was the first instance of an EV made by the automaker going up in flames. Tata Motors has sold more than 30,000 EVs so far, which have cumulatively covered over 100 million kilometres across India over the past four years.

Read more here.

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Market News Top 10 News

Manufacturing PMI Rises to 54.7 in April – Top Indian Market News

Manufacturing PMI rises to 54.7 in April

India’s manufacturing activity picked up marginally in April after decelerating to a six-month low in March. The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 54.7 in April 2022, compared to 54 in March. Input costs rose to their fastest pace since November. PMI is a month-on-month calculation, and a value above 50 represents an expansion when compared to the previous month.   

Read more here.

Adani Wilmar Q4 Results: Net profit falls 26% YoY to Rs 234.3 crore 

Adani Wilmar Ltd reported a 25.6% YoY decline in consolidated net profit to Rs 234.3 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 40.2% YoY to Rs 14,960.4 crore during the same period. The company’s total expenses increased by 40% YoY to Rs 14,726.7 crore in Q4.

Read more here.

Power Grid to acquire IL&FS Energy Development Company’s stake in CPTCL

Power Grid Corporation India Ltd (PGCIL) will purchase IL&FS Energy Development Company Ltd’s (IEDCL) equity shareholding in Cross Border Power Transmission Company Ltd (CPTCL). PGCIL’s board has cleared the proposal for the purchase of 77,30,225 equity shares of IEDCL in CPTCL. Currently, Power Grid owns a 26% stake in CPTCL, while IEDCL holds a 38% stake.

Read more here.

HDFC Q4 Results: Net profit rises 16% YoY to Rs 3,700  crore

HDFC Limited reported a 16.4% YoY increase in net profit to Rs 3,700 crore for the quarter ended March (Q4 FY22). Its net interest income (NII) rose 14% YoY to Rs 4,601 crore during the same period. [NII is the difference between the interest income a bank earns on loans and the interest it pays depositors.] Its loan book grew 14% YoY to Rs 5.55 lakh crore, driven by lending to affordable housing and high-end properties. HDFC’s board has declared a dividend of Rs 30 per share for FY22.

Read more here.

Vodafone Idea partners with ICRIER to set up telecom centre of excellence

Vodafone Idea Ltd has partnered with Indian Council for Research on International Economic Relations (ICRIER) to set up a telecom Centre of Excellence. The centre has been named InViCT (ICRIER & Vodafone Idea Centre for Telecom). It will provide a common platform to facilitate the development of a coordinated policy response to emerging technology and business trends for India’s telecom sector.

Read more here.

Britannia Industries Q4 Results: Net profit rises 5% YoY to Rs 378 crore

Britannia Industries Ltd reported a 4.96% YoY increase in consolidated net profit to Rs 377.95 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 13.4% YoY to Rs 3,550.45 crore during the same period. The FMCG major’s operating profit stood at Rs 549.68, up 9% YoY. Its board has declared a dividend of Rs 56.5 per share.

Read more here.

Mahindra Holidays Q4 Results: Net profit at Rs 16.25 crore

Mahindra Holidays & Resorts India Ltd reported a consolidated net profit of Rs 16.25 crore for the quarter ended March (Q4 FY22). It had posted a loss of Rs 10.17 crore in the corresponding quarter last year (Q4 FY21). The company’s revenue rose 16.58% YoY to Rs 542.58 crore in Q4 FY22. Its resort occupancies stood at 77% in Q4.

Read more here.

Route Mobile to acquire Teledgers’ blockchain, DLT platform for Rs 130 crore

Route Mobile Ltd (RML) will acquire the artificial intelligence-based blockchain and distributed ledger technology (DLT) platform of Teledgers Technology for ~Rs 130 crore. The acquisition will enable Route Ledger (a subsidiary of RML) to offer DLT and encrypted messaging solutions to mobile network operators. Route Mobile intends to enable telecom operators & enterprises with DLT Platform across Latin America, the Middle East, Africa, and Asia-Pacific.

Read more here.

LIC IPO’s Rs 5,630 crore anchor book oversubscribed: Report

According to a CNBC-TV18 report, LIC IPO’s Rs 5,630 crore anchor book saw an overwhelming response and was oversubscribed. Earlier reports stated that Goldman Sachs, Morgan Stanley, Nomura, Singapore’s GIC Pte, Norway’s sovereign wealth fund, and SBI Mutual Fund would be among those who may bid for the LIC’s anchor book.

Auto sales data for April 2022: Highlights  

Maruti Suzuki India posted a 5.6% year-on-year (YoY) decline in total sales to 1,50,661 units in April 2022. Sales of its compact vehicle segment fell 21.6% YoY to 76,321 units. Exports rose 6.8% to 18,413 units.

Tata Motors Ltd registered a 73% YoY increase in total domestic sales to 72,468 units in April. The automaker’s commercial vehicle sales rose 87% YoY to 30,838 units. Overall passenger vehicle wholesales rose 66% YoY to 41,587 units.

Mahindra & Mahindra’s auto segment posted total sales of 54,640 units in April, an increase of 25% YoY. M&M’s farm equipment segment posted a 49% YoY fall in sales to 40,939 units. 

Hero Motocorp posted a 12.45% YoY increase in total sales to 4,18,622 units in April.  

Read more here.

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Editorial

Shares of HDFC Bank, HDFC Surge on Merger Plans. Know More About it Here!

Today, shares of HDFC Bank jumped nearly 11% to Rs 1,683, while that of HDFC surged 14% to Rs 2,800! The Board of Directors of mortgage lender Housing Development Finance Corporation Ltd (HDFC) has approved the merger of the company with HDFC Bank.

  • The share exchange ratio for the amalgamation will be 42 equity shares (of the face value of Re 1 each) of HDFC Bank for every 25 equity shares (of the face value of Rs 2) of HDFC Limited.
  • Post the transaction, existing shareholders of HDFC Limited will own 41% of HDFC Bank. The subsidiaries and associate firms of HDFC will also shift to the bank. HDFC, India’s leading housing finance company, has total assets under management (AUM) of Rs 5.26 lakh crore. Its market cap stands at Rs 4.44 lakh crore.
  • Shares held by HDFC in the lender will be extinguished, making HDFC Bank a full-fledged public company.
  • HDFC Bank will now offer mortgages as a core product to its customers. The lender will also offer new credit and deposit products. For the uninitiated, a mortgage is an agreement between a person and a lender to buy or refinance a home without having to pay all the cash upfront. This agreement gives lenders the legal right to repossess a property if a person fails to meet the terms of the mortgage. With interest rates expected to rise in the upcoming quarters, this merger reduces the cost of funding for HDFC.

Impact of the Merger

As per HDFC’s exchange filing, the proposed merger will help leverage and create meaningful value for various stakeholders. It is expected to benefit from increased scale, comprehensive product offering, and the ability to drive synergies across revenue opportunities. The merger will also help to reduce HDFC Bank’s proportion of exposure to unsecured loans. HDFC Bank will gain access to building a sizeable home loan portfolio, thus increasing the size of their overall loan books.

The merger also has the potential to attract a 7-8% increase in participation from foreign investors.

Based on the market capitalisation of HDFC and HDFC Bank as of April 1, the market value of the merged entity will be ~Rs 12.8 lakh crore. It is likely to be the third-largest company in India, after Reliance Industries Ltd and Tata Consultancy Services (TCS). 

The merger is expected to be completed by the second or third quarter of the next financial year (FY24). The scheme of amalgamation is subject to the approval of the Reserve Bank of India, Securities & Exchange Board of India, and other regulatory authorities.