Business News

Mumbai: Indian stock markets hit a milestone on Wednesday, executing block deals worth nearly ₹23,000 crore, the highest in a single day, largely on account of Vodafone Group's sale of a stake in Indus Towers. In all, five major block deals were transacted, reflecting growing confidence among promoters, private equity funds and large institutional investors. The surge in block deal activity highlights robust demand from both domestic and foreign institutions seeking to execute large transactions through this avenue.The previous record for single-day block deals was ₹17,854 crore on March 13, when British American Tobacco Plc (BAT) divested a 3.5% stake in ITC through the open-market transaction. That was worth ₹17,485 crore, one of the biggest block deals in Indian capital market history.Earlier, on January 19, block deals worth ₹10,500 crore were executed. Tata Group holding company Tata Sons sold 23.4 million shares in India's largest software services exporter Tata Consultancy Services for about ₹9,300 crore on the day.Experts noted that transactions on the stock market platform are more tax-efficient than off-market deals. "Trading on the stock exchange platform benefits from a lower capital gains tax rate compared to off-market trades," said Ketan Dalal, MD of Katalyst Advisors. "Off-market sales may occur if the negotiated price is higher than the prevailing stock exchange price, which typically happens in strategic sales. However, such sales attract a higher tax rate."The ability of large investors, such as private equity funds, to make significant exits underscores the attractiveness of the Indian capital markets, said bankers."The ease of executing large block deals highlights the depth and liquidity of the Indian markets," said S Ramesh, MD and CEO, Kotak Investment Banking.111125719 'Reflect Depth in Indian Markets' "This has also boosted confidence among global private equity players and multinational companies for investing and facilitating easier exits, which were very challenging just a couple of years ago," Ramesh said.On Wednesday, UK's Vodafone Group Plc sold an 18% stake in Indus Towers for ₹15,300 crore through block deals. The Germany-based ZF Group sold a 7.5% stake in its Indian unit, ZF Commercial Vehicle Systems, for ₹2,194 crore. Shanghai-based Fosun Pharmaceutical Group sold a 5% stake in Gland Pharma to raise ₹1,754 crore. Similarly, Client Ebene and CVCIGP II Employee Ebene sold 6.25 million shares worth ₹750 crore in the car component producer Sansera Engineering.Domestic institutional investors (DIIs) have purchased shares worth ₹2.22 lakh crore so far this year, while foreign portfolio investors (FPIs) have sold shares worth ₹57,000 crore. FPIs and DIIs are showing considerable interest in using the block deal window, said bankers."With election uncertainty out of the way, robust domestic mutual fund inflows and participation by FPIs have led to frenzied activity around block trades," said Jibi Jacob, head of India ECM, Jefferies. "However, if one looks at it more holistically, as our GDP grows, the capital market depth is also bound to grow through large IPOs and an increase in free floats through block trades and primary follow-on offerings."Large block trades reflect depth in the Indian markets and help increase the free float, said Pratik Gupta, CEO and co-head of Kotak Institutional Equities.

Domestic markets experienced volatility on Wednesday and closed nearly unchanged amidst mixed signals. In today's trade, shares of Vedanta, PNB Housing, Best Agrolife, Mas Financial, Brigade Enterprises among others will be in focus due to various news developments.VedantaVedanta Ltd is planning to spend $5 billion over the next decade as it looks to cut its carbon emissions by a fourth by 2030.Best AgrolifeSpecialty agrochemical maker Best Agrolife Ltd said it has received regulatory approval for a new patented insecticide formulation called Nemagen to target resistant pests causing major crop damage.Mas FinancialMas Financial has launched a qualified institutional placement worth Rs 400 crore with an upside option of further Rs 100 crore.Brigade EnterprisesBrigade Enterprises has signed an agreement worth Rs 150 crore to develop third tower of World Trade Center (WTC) at Infopark, Kochi.PNB Housing FinanceAsia Opportunities Fund, General Atlantic is likely to sell 4.2% stake in PNB Housing Finance through block deals on Thursday, according to reports.WanburyUSFDA has issued Form 483 with zero observations for the company’s Patalganga site.Indian OilIndian Oil has entered into a joint venture agreement with GPS Renewables for sustainable energy solutions.

The ubiquitous kirana store has a new rival - dozens of tech-enabled companies that run thousands of neighbourhood stores and have either entered the grocery market or raised funding after the Covid-19 pandemic.For fast-moving consumer goods (FMCG) companies, these self-service outlets, including Gujarat-based Frendy, Telangana's SuperK, Apna Mart from Bihar and Rajasthan's Kirana King, now account for 4% of their total sales, compared to less than 1% before the pandemic. In premium categories, their contribution is much higher at 8-10%.Unlike traditional kirana stores, where operations such as billing and sourcing are manual, the new-age retail chains have digital apps for orders and delivery as well as the advantage of centralised sourcing."These are like modern trade stores but much smaller in size. There is a rise in such stores and put together, there should be around 10,000 outlets across India, giving a tough fight to larger modern trade outlets like Reliance as they understand the local nuances better," said Krishnarao Buddha, senior category head for marketing at Parle Products, India's biggest foods company.While smaller supermarket chains such as Ratnadeep, Vijetha, Patel's R Mart, Ondoor, Arambagh, Shubham K Mart and Magson have existed for more than a decade, the number of such franchise-led grocery chains has surged, mostly in smaller towns. Take, for instance, four-year old Frendy, which has 25 outlets as marts and warehouse to 2,000 micro-kiranas. It has about 100 people working in its in-house technology team. Similar is the case with Kirana King and SuperK, which runs 100 outlets each, and Apna Mart, which has 50 outlets."Our hub and spoke supply chain model is built on an in-house suite of digital apps which includes a point of sale software digitally connected to the central warehouse for automatic replenishment of stock so that shelves are always full. On the front end the micro kirana app and the customer app allow digital ordering and delivery all trackable on the app and includes payments, returns and refunds," said Frendy's co-founder Sameer Gandotra.111121192Globally, corner shops including 7-Eleven in Japan, Taiwan, Thailand and Singapore, Lawson in Japan and Oxxo in Mexico are among the largest retailers in their respective markets, reflecting the growing business of small outlets in several countries despite the presence of international supermarket and hypermarket chains. With many smaller format stores such as EasyDay, More and Spencers either getting shut or rationalised, the new-age retail chains have leased their properties to retain the catchment's existing customers.These startups have attracted investors, too. For instance, Frendy has raised $5 million while SuperK has raised $6.5 million so far. Apna Mart and Kirana King too have raised funding, $13 million and $1 million respectively. Osia Hypermarket Magsen and Ondoor raised funds through small and medium enterprises initial public offerings.Companies also said they use these stores for launching new products since they are highly tech-driven and can share insights and data easily."It is a growing channel for us as it gives a new experience to consumers, where they can go and pick up products themselves. And that's great for new product launches, because it's easier for the consumer to know about a new launch. For newer products, these outlets account for about 8-10% of the sales," said Wipro Consumer Care and Lighting CEO Vineet Agrawal.

Union health minister JP Nadda on Wednesday directed for special heatwave units to be started in central government hospitals, with the temperatures soaring. An advisory was issued to state health departments to reduce health impacts of extreme heat.The Director General of Health Services (DGHS) Dr Atul Goel directed the central government hospitals to identify cases of heat related illnesses (HRI) on time, triaged and provided immediate attention with rapid, active cooling and subsequent supportive care."All AlIMS and State Govt. Institutions to ensure all health professionals, ambulances and health facilities ensure immediate attention to such patients in facilities prepared to manage HRIs in accordance with local temperature forecasts and warnings," he said in a letter.While reviewing the heatwave situation and preparedness of central government hospitals, Nadda asked the officials to ensure that all hospitals are prepared to provide the best healthcare to those affected from heatwave.Parts of India have been reeling under excessive heat, with the maximum temperature soaring to 45 degrees Celsius.The health ministry in its advisory to the states asked the state health departments to organize a task force meeting for update and approval of the heat-health action plan at State/District levels. "This plan should detail the ‘Standard Operating Procedures’ which shall be in place during heat wave season," it said.States have also been told to start daily submission of data on heatstroke cases and deaths, emergency attendance and totaldeaths from March 01, 2024, on IHIP portal under National Programme on Climate Change and Human Health.The health ministry has asked the states to undertake “Investigation of Suspected Heat Related Illness Death” by medical officer/epidemiologist for each suspected heat-related illness deaths.Healthcare facilities have been told have procurement and supply of adequate quantities of ORS packs, essential medicines, IV fluids, ice-packs, and equipments to support management of volume depletion and electrolyte imbalance etc."Identify active cooling strategies that can be used at health facilities and field levels based on resources available, it said, adding that while organizing mass gathering or sporting events during summer, sufficient preparedness should be made to prevent and manage heat-related illnesses (HRI) through active engagement of health departments, other relevant departments, and local administration.Meanwhile, doctors are seeing increasing number of cases of fever, fatique and low blood pressure due to heat wave.Dr Ritesh Yadav, Senior Consultant - Internal Medicine Paras Health, said temperature have started picking up increasing the risk of heat strokes."We are getting at least 28 cases per week with fever and heat-related issues. The patients visiting our hospital are having fever, fatigue, and low blood pressure. The cases are likely to increase next month with mercury soaring above 40 degrees Celsius, he said. Dr Yadav recommended avoiding outdoor exercise in very hot weather.Dr. Atul Kakar Chairperson, Department of Internal Medicine Sir Ganga Ram Hospital echoed the same concern regarding rise in heat-related illnesses attributed to increasing temperatures, as evidenced by a significant influx of patients seeking medical attention."At the outpatient department (OPD), medical facilities are reporting between 30 to 35 cases weekly related to heat-induced ailments. These include conditions such as heat cramp and heat exhaustion," he said.Earlier in June too the government had asked all states and union territories to "immediately" implement the heat health action plan to ensure safety of people amid rising temperatures that are triggering intense heatwaves across the country.