A surge in initial public offerings (IPOs) by small and medium-sized enterprises (SMEs) has been witnessed recently, raising a whopping Rs 2,600 crore. This influx of IPOs has been facilitated by a liquidity boom, as there haven’t been any major IPOs in recent months, and the secondary market has become less affordable. The SME board has witnessed 100 companies going public in 2023, surpassing the previous record set by 141 firms in 2018, which raised Rs 2,287 crore. In comparison, only 19 companies on the main board were able to raise around Rs 14,500 crore during the same period.
The demand for these SME IPOs has been remarkable, with approximately Rs 1.44 lakh crore being invested. Some IPOs were oversubscribed, with 11 of them being oversubscribed between 200 and 400 times, and 13 being oversubscribed between 100 and 200 times. This surge in demand highlights the attractiveness of SME stocks and the strong liquidity in the market.
In other news, the Reliance Industries board has announced the entry of the third generation of the Ambani family into the conglomerate. Isha Ambani, Akash Ambani, and Anant Ambani have been appointed as non-executive directors, while Mukesh Ambani will remain at the helm for another five years to mentor his children in running the business empire. This succession plan marks an important milestone in the journey of the Ambani family, who initiated the $200 billion business empire started by Dhirubhai Ambani.
The Indian government is set to review its capital expenditure plans for the current financial year during pre-budget meetings scheduled in October-November. While there are no plans to exceed the provisioned capital spending worth Rs 1.18 lakh crore stated in the 2023-24 annual budget, there are expectations that populist schemes might be launched ahead of the 2024 general elections, requiring additional fiscal support.
IBM CEO Arvind Krishna has emphasized the importance for India to develop independent artificial intelligence (AI) infrastructure, including large language models. The rapid progress in AI has the potential to transform governance and business, making it crucial for India to develop robust data and computing infrastructure to keep pace.
Jio Financial Services, a disruptive force in the financial services space, is set to enter the insurance business in partnership with global companies. Reliance Industries chairman Mukesh Ambani mentioned that the company would leverage predictive data analytics to co-create contextual insurance products with its partners. However, the heavily regulated finance sector may pose challenges for Jio Financial’s foray into insurance.
The El Nino weather phenomenon has affected rainfall patterns in India, leading to scanty rains in August. According to the India Meteorological Department, El Nino will remain moderate and strong till at least December, potentially impacting the autumn harvest. The southwest monsoon’s erratic behavior this year could have implications for rural demand and food prices.
State-run Oil and Natural Gas Corporation (ONGC) is in talks with global entities, including Malaysia’s Gentari, to establish a joint venture in energy storage. ONGC aims to explore opportunities in battery storage and pump storage projects as part of its efforts to transition towards greener energy sources.
The market regulator’s investigation into the Adani group has uncovered technical breaches in disclosures and offshore fund holdings, which may result in a monetary penalty. Despite facing allegations from short seller Hindenburg Research, the conglomerate has firmly denied any wrongdoing.
Swedish furniture maker Ikea is set to begin online sales in the national capital region of India by December. This move comes ahead of the company’s plans to open two large shopping centers in the coming years. Ikea’s entry into the e-commerce space is expected to boost the rapidly expanding domestic market and provide momentum to its growth strategy in India.
The Indian gaming industry is witnessing a substantial surge in in-app purchases, with gamers spending around $250 million annually. Popular games like Battleground Mobile India and Free Fire are driving this spending, surpassing the combined revenues of over-the-top streaming platforms in India. With a significant number of serious players spending heavily, India’s gaming industry has immense potential for growth.
These news stories provide a comprehensive overview of various sectors in India, ranging from IPOs in the SME segment to the entry of the next generation in one of India’s largest conglomerates. With discussions on capital expenditure, artificial intelligence, energy storage, and gaming, it is evident that India’s economic landscape is undergoing dynamic changes across multiple sectors.
