India Finance, August 16, 2024 — Foxconn’s Indian 'Elephant' and 'Cheetah'

1. Mr. Mishra, Principal Secretary to the Prime Minister of India, stated that to maximize the benefits of India’s demographic dividend, employment opportunities must be ensured for as large a segment of the population as possible—especially for youth. Mr. Mishra identified leveraging the demographic dividend, geopolitical tensions, the decline of globalization, the rise of economic nationalism, the impact of emerging technologies, and climate change as key challenges requiring policy intervention. 2. At 9:40:46 a.m. IST on August 16, 2024, during early trading, the Sensex rose by 805.96 points to 79,911.84; the Nifty gained 252.05 points to 24,395.80. 3. At 3:44:05 p.m. IST on August 16, 2024, the Sensex closed up 1,330.96 points at 80,436.84; the Nifty surged 397.40 points to close at 24,541.15. 4. On the afternoon of August 16, 2024, the Indian rupee depreciated by 1 paisa against the US dollar, closing at 83.95. 5. A government survey revealed that urban unemployment in India remained stable at 6.6% in Q1 FY2024–25, unchanged from Q1 FY2023–24. The labour force participation rate rose to 50.1%. Notably, the worker-population ratio increased to 46.8%, underscoring positive trends in employment indicators during this period. 6. The Modi Cabinet approved metro rail projects in Pune, Bengaluru, and Thane. Thane will get a 29-km metro line with 22 stations; Bengaluru’s Phase III will add 44.65 km; and Pune’s PCMC–Swargate line will be extended by 5.46 km with three new stations. These projects aim to alleviate traffic congestion and improve urban mobility. 7. On August 16, the Reserve Bank of India (RBI) stated that non-banking financial company (NBFC) peer-to-peer (P2P) lending platforms must not provide or arrange any credit enhancement or credit guarantee. Moreover, such NBFC-P2P platforms must not assume any direct or indirect credit risk arising from transactions conducted on their platforms. In other words, if lenders on the platform suffer total loss of principal, interest, or both, such losses shall be borne entirely by the lenders—and lenders must be fully informed thereof per the Fair Practices Code under Paragraph 12 of the relevant Regulations, the central bank further clarified. 8. The Government of India announced an extension of the export restriction on de-oiled rice bran until January 31. India is a leading exporter of de-oiled rice bran, widely used in the cattle feed industry. In March, the government had extended the restriction until July 31. 9. The government revised the windfall profit tax on petroleum products: the levy on domestically produced crude oil was reduced from ₹2,400 per tonne to ₹2,100 per tonne. However, the windfall tax on exports of gasoline, diesel, and aviation turbine fuel (ATF) remains zero. The revised rates take effect from August 17, 2024. 10. For the week ending August 9, India’s foreign exchange reserves declined by $4.8 billion to $670.12 billion. Foreign currency assets fell by $4.079 billion, and gold reserves dropped by $0.86 billion. Meanwhile, Special Drawing Rights (SDRs) and the IMF’s reserve position saw slight increases. The Reserve Bank of India continues to monitor and intervene in markets to maintain stability. 11. Indian telecom operators reported a 12% decline in content investment for the fiscal year ended March 31, totaling ₹13.35 billion. Reliance Jio increased its spending, while Bharti Airtel and Vodafone Idea cut theirs. These operators aim to attract more customers and boost data usage through partnerships with television broadcasters and streaming platforms. 12. According to data from the Ministry of Coal, the All-India Coal Index declined by 3.48% year-on-year in June 2024, falling from 147.25 to 142.13. This decline reflects a balanced market and adequate coal supply. Production rose by 14.58%, and supply to critical sectors remained stable—vital for energy security. 13. Official Indian estimates indicate that in Q1 FY2024–25, crude steel production reached 36.61 million tonnes, finished steel output stood at 35.77 million tonnes, and finished steel consumption totaled 35.42 million tonnes. Total steel production in Q1 of this fiscal year amounted to 72.4 million tonnes—up from 68.5 million tonnes in the corresponding quarter last year. 14. Union Minister for Petroleum and Natural Gas, Shri Hardeep Singh Puri, announced that over the past decade, piped natural gas connections and LPG users in India have grown significantly. Refining capacity and natural gas pipeline infrastructure have also expanded substantially. Despite global price surges, India successfully maintained fuel price stability between January 2022 and July 2024. 15. The Ministry of Ports, Shipping and Waterways recommended constructing a seaport adjacent to Bharat Petroleum Corporation Limited’s proposed refinery in Andhra Pradesh to reduce logistics costs. This refinery is expected to become a major client of the new port. 16. Under Phase II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme for domestic electrolyser manufacturing, 13 companies—including Adani Enterprises, Waaree Energy, Ohmium International, and Avaada Electrolyzers—have been allocated eligible manufacturing capacity for incentives. SIGHT is a financial initiative under India’s National Green Hydrogen Mission, with a total outlay of ₹174.9 billion for electrolyser manufacturing and green hydrogen production. The second tranche of funding is set at ₹22 billion.

What is the procedure for an Initial Public Offering (‘IPO’) in India?

2021 was a landmark year for India’s initial public offering (‘IPO’) market. The Indian market witnessed several new-age, technology-driven IPOs—including Zomato, PolicyBazaar, Nykaa, and Paytm—with strong investor interest from both retail and foreign institutional investors. An IPO is undertaken by a private or public-sector enterprise seeking to raise capital by issuing shares to the general public or new investors. Following the IPO, the company gets listed on a stock exchange and becomes a publicly traded company. The IPO process is regulated under the legal framework prescribed by the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2009—commonly referred to as the ‘ICDR Regulations’—and the ‘Listing Agreement’. Under these regulations, equity shares are allocated to three categories of investors in specified proportions: institutional investors (50%), non-institutional investors (15%), and retail investors (35%). Per the above regulations, a company applying for listing must have net worth of at least ₹10 million in each of the preceding three financial years. Typically, an IPO takes approximately seven to eight months to complete—from initiation to listing—depending on the size and complexity of the offering. At the outset of the IPO process, the private company must appoint financial advisors—including investment bankers and underwriters—to act as intermediaries between the company and potential investors. Subsequently, legal experts must be engaged to conduct due diligence on the company to ensure overall regulatory compliance. A ‘Draft Red Herring Prospectus’ (‘DRHP’)—i.e., the preliminary prospectus—is then prepared jointly by legal and financial experts and submitted to SEBI.

India's JSW One Files Papers for $300 Million IPO

21 hours ago

India's JSW One filed paperwork to raise over 30 billion Indian rupees ($312.65 million) through an initial public offering, according to a late Thursday filing.

reuters

2026-09-24

India's JSW One Files Papers for $300 Million IPO

India's JSW One Files Papers for $300 Million IPO

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