The Indian stock markets have recently experienced a significant shake-up, with the Nifty 50 index sinking to its lowest level in seven months and small-cap stocks taking a heavy hit. What are the key reasons behind this sharp downturn? And how have global and domestic factors combined to put immense pressure on broader markets? Let’s look into the details to understand the triggers behind this market turbulence.
Market Overview
On January 13, 2025, the Indian stock markets witnessed a sharp decline. The BSE Sensex dropped by 1,049 points, closing at 76,347.26, while the NSENifty 50 fell by 346 points, ending at 23,085.95. Both indices reached their lowest levels in seven months. The Nifty Smallcap 100 index tumbled 4%, settling at 16,912.90, marking its lowest level since mid-June. Mid- and small-cap indices have suffered disproportionately, with the Nifty Smallcap 100 plunging 10% over the past four sessions. From its December 2024 all-time high, the Smallcap 100 index has lost 15% in just 22 trading sessions.
Global factors triggered the selloff, primarily stronger-than-expected US jobs data released last Friday. This dashed hopes of early rate cuts by the Federal Reserve, causing US bond yields and the dollar index to soar. As a result, emerging markets like India came under pressure. Adding to these woes, crude oil prices surged to 15-week highs due to fresh US sanctions on Russian oil, further fueling inflationary concerns.
2. Foreign Portfolio Investor (FPI) Outflows
Foreign investors have been net sellers in Indian equities, intensifying the negative sentiment. On January 13 alone, FPIs net sold Rs 4,900 crore, adding to the Rs 20,000 crore outflows in January 2025. Such sustained selling has placed significant downward pressure on the markets. Source: Mint
3. Depreciation of the Indian Rupee
The Indian rupee weakened to a record low of Rs 86.59 against the US dollar. A weaker currency often increases import costs and inflationary pressures, impacting corporate profitability and investor confidence. Meanwhile, India’s 10-year bond yield rose by 7 basis points to 6.85%, signaling increased borrowing costs.
Recent quarterly updates from companies like Dabur India and Hero MotoCorp have been less than encouraging, raising fears of earnings moderation. Market participants are cautious about sectors with stretched valuations, amplifying the selloff in small—and mid-cap stocks.
5. Sectoral Weakness
The sell-off has been broad-based, but certain sectors have faced more significant challenges. Realty, metals, consumer durables, and media stocks were hit the hardest. However, some resilience was observed in IT, FMCG, and select pharma stocks, which managed to hold up relatively well despite the broader market turmoil.
6. Anticipation of the Union Budget
The upcoming Union Budget 2025-26 has introduced uncertainty as investors await clarity on policy changes that could impact various sectors and economic growth. This has contributed to a risk-averse sentiment in the markets.
Broader Market Stress
Mid- and small-cap indices have borne the brunt of the downturn. The Nifty Smallcap 100 index has declined by approximately 11.4% from its January high of 19,080 and is down 15% from its all-time high reached in December 2024. Analysts say this extreme pessimism reflects broader market concerns around stretched valuations and weak earnings expectations. Source: Mint
The market downturn has impacted sectors differently, revealing both vulnerabilities and areas of resilience:
Information Technology (IT): The IT sector demonstrated relative stability, with a decline of only 1.4%. This resilience is attributed to strong demand for digital transformation services and steady global IT spending despite broader economic concerns.
Pharma and FMCG: Select stocks in the pharmaceutical and FMCG sectors performed well due to their defensive nature. Due to their stable demand, these sectors often attract investor interest during periods of market uncertainty.
Realty: Realty stocks were among the worst-hit, reflecting concerns about rising interest rates and weakening demand. Developers face challenges from higher borrowing costs and inflationary pressures, which have affected buyer sentiment.
Metals: The metals sector faced a significant correction, driven by fears of slowing global demand and price volatility in key commodities.
Consumer Durables: High inflation and weakening consumer sentiment have weighed heavily on this sector, reducing investor confidence.
Media: Media stocks also faced significant pressure, with advertising revenues under strain due to broader economic concerns. Source: Money Control
Investor Sentiment
The convergence of domestic and global factors has heightened volatility and led to a risk-averse stance among investors. The anticipation of the Union Budget and global uncertainties has resulted in cautious trading, with many reducing exposure to equities, particularly in the small-cap segment.
Conclusion
The recent plunge in the Nifty to seven-month lows and significant declines in small-cap stocks stems from global and domestic factors. Key triggers include robust US economic data, foreign investor outflows, rupee depreciation, and concerns over corporate earnings. The surge in crude oil prices and anticipation of the Union Budget have added to the market’s challenges. As markets navigate these headwinds, all eyes remain on upcoming economic developments and policy announcements to guide the way forward.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India’s financial landscape reached new heights in 2024, with a significant surge in mergers and acquisitions (M&A) activity and unprecedented fundraising in the equity capital markets. As global and domestic investors sought opportunities in one of the world’s fastest-growing economies, the year saw a remarkable 38% jump in M&A transactions, alongside record-breaking IPO activity that underlined India’s position as a major player in the global financial ecosystem.
Total Value: M&A deals surged to $109 billion in 2024, compared to $79 billion in 2023, driven by robust corporate strategies and investor confidence
Domestic Contributions: Indian corporates accounted for $48 billion of this activity, nearly doubling their participation from $26 billion the previous year (Economic Times).
High-Profile Deals:
Viacom and Disney Merger: This reshaped the entertainment sector.
Aster DM’s Acquisition of Quality Care: Strengthened its foothold in healthcare.
Bharti Group’s Stake in BT Group: Expanded its global telecommunications footprint.
Sectoral Focus: Key industries with heightened M&A activity included technology, industrials, infrastructure, and retail, reflecting evolving market dynamics and diversification strategies.
Driving Factors
Economic Growth: India’s strong GDP performance and increasing global recognition as an investment hub attracted domestic and international investors.
Private Equity (PE) Involvement: PE firms played a pivotal role in funding high-growth startups and acquiring stakes in established companies.
Conglomerate Ambitions: Companies like the Adani Group, Reliance Industries, and Birla Group actively pursued acquisitions to bolster their portfolios and expand into new markets.
Record-Breaking IPO Activity
India’s equity capital market experienced unparalleled growth in 2024, with total fundraising reaching $74 billion across initial public offerings (IPOs), follow-on public offers (FPOs), and qualified institutional placements (QIPs) (Economic Times).
Milestone IPOs:
Hyundai Motor India IPO: Raised $3.3 billion (₹27,870 crore), making it the largest IPO in India’s history, surpassing LIC’s 2022 record.
Vodafone Idea FPO: At $2.2 billion (₹18,000 crore), it became India’s largest FPO, eclipsing records by Yes Bank and ONGC.
Diverse Sectors: Fundraising spanned industries like automobiles, telecom, retail, capital goods, and e-commerce, accounting for 59% of the total issue size.
Market Dynamics: Over 300 IPOs were launched, reflecting retail and institutional investors’ strong appetite for equities.
Key Drivers of Equity Fundraising
Investor Sentiment: Confidence in India’s economic trajectory encouraged robust participation from domestic and foreign investors.
Sectoral Growth: Rising consumer demand, digital transformation, and infrastructure investments created lucrative opportunities.
Regulatory Support: Government reforms and policy initiatives made it easier for companies to access capital markets.
Looking Ahead: 2025 and Beyond
The momentum built in 2024 is set to continue, with an active IPO pipeline estimated at $35 billion. Major companies expected to go public in 2025 include:
LG Electronics India: A prominent player in consumer electronics.
Emerging Trends
Green and Sustainable Investments: Increasing focus on ESG (Environmental, Social, and Governance) factors will drive investments in renewable energy and sustainable technologies.
Tech-Driven Growth: Startups and tech companies will continue to attract significant funding, particularly in fintech, e-commerce, and AI.
Global Integration: Indian firms will likely pursue more cross-border deals, enhancing global competitiveness.
The year 2024 marked a turning point for India’s financial markets. The surge in M&A activity and equity fundraising underscores the country’s growing economic clout and its appeal to global investors. With robust market fundamentals, strategic corporate initiatives, and an ambitious IPO pipeline, India is poised to sustain this growth trajectory in 2025 and beyond, reinforcing its position as a leading global investment destination.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What drove the surge in India’s M&A activity in 2024?
India’s strong GDP growth, increased private equity participation, and strategic acquisitions by conglomerates were key factors driving the M&A boom.
Which were the largest M&A deals in 2024?
High-profile deals included the Viacom-Disney merger, Aster DM’s acquisition of Quality Care, and Bharti Group’s stake in BT Group.
How much did India raise through IPOs in 2024?
India’s equity capital market raised $74 billion in 2024, with notable IPOs such as Hyundai Motor India and Vodafone Idea setting records.
What industries led the equity fundraising efforts?
Automobiles, telecom, retail, capital goods, and e-commerce were the leading sectors, accounting for 59% of the total issue size.
What is the outlook for 2025 in India’s financial markets?
With an estimated $35 billion IPO pipeline, key trends like ESG investments, tech-driven growth, and global integration are expected to shape 2025.
Get ready for an action-packed week in the IPO market! This week brings a mix of opportunities, with one mainboard IPO, Laxmi Dental, seeking ₹698.06 Cr , and four SME IPOs – Kabra Jewels Ltd, Rikhav Securities Ltd, Landmark Immigration Ltd, and EMA Partners Ltd – scheduled to hit the market.
This wave of IPOs offers investors a chance to explore a diverse range of sectors and get in on the ground floor of promising Indian businesses.
Before diving into the specifics, let’s break down these companies’ objectives, financial health, Grey Market Premium (GMP), and other key details. Here’s a closer look at what each of these IPOs has to offer!
Laxmi Dental Limited
Laxmi Dental’s IPO aims to raise ₹698.06 crores through a book-built issue. This includes a fresh issue of 0.32 crore shares worth ₹138.00 crores and an offer for sale of 1.31 crore shares aggregating to ₹560.06 crores.
The minimum application size is 33 shares, requiring a retail investment of ₹14,124. For small NII (sNII), the minimum is 15 lots (495 shares), amounting to ₹2,11,860, and for big NII (bNII), it is 71 lots (2,343 shares), requiring ₹10,02,804. The allotment is set for January 16, 2025, with listing on BSE and NSE scheduled for January 20, 2025.
GMP (Grey Market Premium)
The latest GMP for Laxmi Dental IPO is ₹161 (as of January 13, 2025). With a price band of ₹428, the estimated listing price is ₹589, reflecting a potential gain of 37.38% per share.
Objectives of the IPO
Repayment/prepayment of certain outstanding borrowings by the company.
Investment in subsidiaries for repayment/prepayment of borrowings.
Capital expenditure for new machinery acquisition.
Investment in Bizdent Devices Private Limited for machinery purchase.
General corporate purposes.
Company Overview
Incorporated in 2004, Laxmi Dental Limited is an integrated dental products company. It’s product offerings include custom crowns, bridges, clear aligners, thermoforming sheets, and pediatric dental products. Operating under the brand Taglus, the company’s thermoforming sheets and 3D printing resins are industry benchmarks.
Laxmi Dental has six manufacturing facilities and five supporting locations in major cities. With a network spanning over 22,000 clinics across 320 cities in India and exports to more than 90 countries, the company holds a significant presence in domestic and global markets.
Financials
In FY24, Laxmi Dental’s assets grew by 40%, from ₹96.54 crores to ₹134.52 crores. Revenue increased from ₹163.84 crores to ₹195.26 crores. The company’s net worth and profit after tax (PAT) showed strong growth during this period. However, borrowings also increased, indicating rising liabilities.
An integrated business model ensures efficiency and control over production and distribution.
A strong network of over 22,000 clinics and dentists.
Significant presence in international markets, exporting to 90+ countries.
Rising borrowings could affect financial stability.
Dependence on a limited number of manufacturing facilities.
OPPORTUNITIES
THREATS
Growing demand for dental products globally.
Potential for innovation in clear aligner technology.
Expansion into emerging markets.
Intense competition in the dental industry.
Regulatory changes in domestic and international markets.
Currency fluctuations may impact export revenue.
SME IPOs launching this week
Kabra Jewels Limited
Kabra Jewels IPO aims to raise ₹40.00 crores through a book-built issue of 31.25 lakh fresh shares. The minimum application size is 1,000 shares, requiring a retail investment of ₹1,28,000.
For High Net-worth Individuals (HNIs), the minimum investment is 2 lots (2,000 shares) amounting to ₹2,56,000. The allotment will be finalized on January 20, 2025, and the shares are expected to list on the NSE SME platform on January 22, 2025.
GMP (Grey Market Premium)
The last reported GMP for Kabra Jewels IPO is ₹0 (January 13, 2025), suggesting no premium or discount over the price band of ₹128. The estimated listing price is ₹128, with no anticipated gain or loss percentage per share at this stage.
Objectives of the IPO
Repayment or partial repayment of certain borrowings availed by the company.
To meet working capital requirements.
General corporate purposes.
Company Overview
Incorporated in 2010, Kabra Jewels Limited is a retail jewelry company offering a wide range of gold, diamond, and silver ornaments. The company’s product portfolio spans wedding jewelry—its highest-selling category—and daily-wear ornaments. Kabra Jewels operates six showrooms in Ahmedabad under various brands, including KK Jewels Bridal, KK Jewels Diamond, and KK Jewels Gold. It also has three offices and one exhibition center, reinforcing its presence in the local market.
Financials
Kabra Jewels has shown consistent financial growth. Revenue as of November 2024 was ₹12,548.47 crore, up from ₹11,212.54 crore in FY22. Profit After Tax (PAT) for the latest period stood at ₹880.89 crore, almost double the ₹440.58 crore reported in FY23. The steady increase in revenue and PAT highlights the company’s growing market position and operational efficiency. Source: SEBI
SWOT Analysis of Kabra Jewels Limited
STRENGTHS
WEAKNESSES
Diverse product portfolio catering to various customer needs.
Strong presence in Ahmedabad with multiple specialized showrooms.
Consistent revenue and profitability growth.
Limited geographical footprint confined to Ahmedabad.
Dependence on the wedding segment as a primary revenue driver.
OPPORTUNITIES
THREATS
Expansion into new cities or regions to broaden market presence.
Growing demand for affordable and daily-wear jewelry.
Potential to leverage e-commerce for wider reach.
Established and unorganized jewelry retailers pose stiff competition.
Fluctuations in gold and diamond prices impacting margins.
Economic slowdowns or changes in consumer spending patterns.
Rikhav Securities Limited
Rikhav Securities IPO aims to raise ₹88.82 crores through a book-built issue comprising a fresh issue of 83.28 lakh shares aggregating ₹71.62 crores and an offer for sale of 20.00 lakh shares aggregating ₹17.20 crores.
The minimum lot size for this IPO is 1,600 shares, requiring a retail investment of ₹1,37,600. For High Net-worth Individuals (HNIs), the minimum investment is 2 lots (3,200 shares) amounting to ₹2,75,200. The allotment is scheduled to be finalized on January 20, 2025, with a tentative listing date on the BSE SME platform set for January 22, 2025.
GMP (Grey Market Premium)
The last reported GMP for Rikhav Securities IPO is ₹0 (as of January 13, 2025). With the price band set at ₹86, the estimated listing price is ₹86, indicating no expected gain or loss per share based on current market trends.
Objectives of the IPO
Funding the incremental working capital requirements.
Financing capital expenditures for IT software, computers, and laptops.
General corporate purposes.
Company Overview
Incorporated in 1995, Rikhav Securities Limited provides various financial services, including brokerage, investing, and banking solutions. Registered with SEBI as a stockbroker, the company is a BSE, NSE, and MCX member. Rikhav Securities offers equity broking, intra-day trading, futures, options, and services in derivative and commodity segments. The company acts as a Self-Clearing Member for trade settlements and provides IPO participation and demat account services. It also offers mutual fund advisory services catering to diverse client investment needs.
Financials
Rikhav Securities has demonstrated robust financial performance. As of September 30, 2024, the company’s total assets stood at ₹33,791.49 crore, a significant rise from ₹18,070.69 crore in FY22. Revenue reached ₹9,615.83 crore, up from ₹4,298.31 crore in FY22, while Profit After Tax (PAT) grew to ₹5,037.32 crore, nearly tripling from ₹1,762.47 crore during the same period, reflecting strong profitability and operational growth. Source: Rikhav
SWOT Analysis of Rikhav Securities Limited
STRENGTHS
WEAKNESSES
Established presence in the financial services sector with SEBI registration.
Diversified service offerings, including brokerage, IPO participation, and mutual fund advisory.
Strong financial growth in recent years.
Heavy reliance on market conditions for revenue generation.Limited brand visibility compared to larger players in the financial sector..
OPPORTUNITIES
THREATS
Expanding into underserved geographical areas.
Increasing demand for investment services among retail investors.
Leveraging technology to streamline operations and enhance customer experience.
Strong competition from both established and emerging financial service providers.
Regulatory shifts influencing operations and profitability.
Market fluctuations affecting revenue generation and client acquisition.
Landmark Immigration Consultants Limited
Landmark Immigration Consultants Limited is launching an IPO with a total size of ₹40.32 crores, comprising 56.00 lakh shares. The issue is entirely a fresh issue with no offer for sale. The minimum lot size for retail investors is 1,600 shares, which translates to an investment of ₹1,15,200.
High Net-worth Individuals (HNIs) will need to apply for at least 2 lots, or 3,200 shares, amounting to ₹2,30,400. The IPO’s allotment process will be finalized on January 21, 2025, and it will be listed on the BSE SME on January 23, 2025.
Objectives of the IPO
The company plans to use the net proceeds from the IPO for the following purposes:
Capital expenditure for establishing new branches.
Advertisement expenses to increase brand awareness and visibility.
Acquisitions to drive inorganic growth.
General corporate purposes.
Company Overview
Founded in 2010, Landmark Immigration Consultants Limited specializes in Global Consultancy Services, particularly in global education and immigration consultancy. The company offers services for students seeking to study abroad and provides immigration consultancy for visas, tourism, business, and permanent residency, particularly in Canada.
Landmark operates through 9 fully equipped branches and partners with over 30 Canadian institutions. In addition, the company has entered into franchise agreements at locations in Jammu, Jind, and Karnal.
Financials
Landmark Immigration has shown strong financial growth over the past few years. As of March 31, 2024, the company reported assets of ₹4,431.51 lakhs, a rise from ₹3,625.3 lakhs in 2023 and ₹3,611.51 lakhs in 2022. Revenue surged to ₹3,707.03 lakhs in 2024, up from ₹2,162.62 lakhs in 2023 and ₹1,931.54 lakhs in 2022. Profit After Tax (PAT) also showed a significant increase, reaching ₹1,111.83 lakhs in 2024, compared to ₹443.48 lakhs in 2023 and ₹393.53 lakhs in 2022, reflecting strong financial growth. Source: BSE
SWOT Analysis of Landmark Immigration Consultants Limited
STRENGTHS
WEAKNESSES
Well-established brand in global education and immigration consultancy.
A wide network with 9 branches and 30+ Canadian institution partnerships.
Strong financial performance with consistent growth in revenue and profit.
Dependence on the Canadian immigration market could limit diversification.
High reliance on physical branches, which may restrict scalability.
OPPORTUNITIES
THREATS
Expansion into new markets with the opening of new branches.
Growth potential from inorganic initiatives through acquisitions.
Increasing demand for education and immigration services globally.
High competition from local and global consultancy firms.
Potential regulatory changes that may influence operations and profitability.
The market volatility could affect client acquisition and revenue generation.
EMA Partners Limited
EMA Partners India Limited is launching an IPO with a total issue size of ₹76.01 crores. The issue consists of a fresh issue of 53.34 lakh shares, amounting to ₹66.14 crores, and an offer for sale of 7.96 lakh shares, aggregating ₹9.87 crores.
Retail investors must invest a minimum of ₹1,24,000 for a lot size of 1,000 shares. The minimum investment for high-net-worth individuals (HNIs) is ₹2,48,000 for 2 lots or 2,000 shares. The IPO allotment will be finalized on January 22, 2025, and the shares are expected to list on the NSE SME on January 24, 2025.
Objectives of the IPO
The company intends to use the funds raised from the IPO for the following purposes:
Strengthening the leadership team for both the company and its subsidiaries.
Upgrading the existing IT infrastructure for both the company and its subsidiaries.
Repaying or pre-paying borrowings taken for the purchase of office premises.
General corporate purposes and potential inorganic acquisitions.
Company Overview
EMA Partners India Limited, established in 2003, is an executive search firm specializing in leadership hiring solutions. The company provides global recruitment services, focusing on C-suite and board-level hiring across various industries. EMA Partners India is headquartered in Mumbai, with a growing international presence in Singapore, Dubai, and James Douglas (Dubai). The company offers two key services: Executive Search and Leadership Advisory. Additionally, MyRCloud, an AI-driven platform, enhances hiring efficiency for entry and middle management positions.
Financials
The company’s financial performance demonstrates fluctuations over the past few periods. For the period ending July 31, 2024, revenue stood at ₹2,632.9 lakh, a decline from ₹6,883.45 lakh in March 2024 but higher than ₹5,106.16 lakh in March 2023 and ₹5,786.52 lakh in March 2022. Profit After Tax (PAT) for July 2024 was ₹437.22 lahks, significantly lower than ₹1,427.3 lahks in March 2024 but up from ₹307.07 lahks in March 2023 and ₹1,127.06 lahks in March 2022. Source: Indorient
SWOT Analysis of EMA Partners India Limited
STRENGTHS
WEAKNESSES
Strong brand reputation in executive search and leadership advisory.
Expanding global presence with offices in key international markets.
Advanced AI platform, MyRCloud, streamlining recruitment processes.
Dependence on a few key markets for global revenue.Limited diversification in service offerings beyond executive search and leadership advisory.
OPPORTUNITIES
THREATS
Potential for expansion into untapped international markets.
Growth prospects in mid-to-senior level recruitment through the James Douglas brand.
Further enhancement of AI-powered recruitment tools to improve efficiency.
Fierce competition from other global executive search firms.
Economic challenges that could reduce demand for recruitment services.
Regulatory changes that could influence the recruitment industry.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
How often do you open your fridge and find yourself on a trip down memory lane? Those souvenir magnets—little time capsules from adventures in Thailand, the USA, France, or Egypt—each with a story to tell, a moment to relive. But take a closer look—how many of those magnets celebrate India, the world’s cultural treasure chest?
For one couple, this wasn’t just something missing; it was a chance to create something unique. They imagined India’s vibrant colors, iconic symbols, and rich heritage brought to life in fun, modern designs—souvenirs that could stand proudly next to any in the world. With no big ad campaigns, just creativity and the magic of social media, they built a brand that celebrated India and gave it a quirky, fresh twist.
Are you curious about the story behind this magnetic pull? Read on
Inspiration Like a Magnet
In 2009, Shubhra Chadda and Vivek Prabhakar were leading relatively stable lives. Shubhra, a marketing professional with a keen eye for design, and Vivek, an employee at an MNC, always nurtured a love for creativity and innovation.
Their journey as founders began with a shared passion for travel and discovery. Wandering vibrant markets abroad, they marveled at souvenirs that captured each place’s essence—magnets from Paris and trinkets from Bangkok.
Returning to India, they realized they could not find any modern, quirky products celebrating Indian culture with a fresh twist.
This question sparked the idea of Chumbak. Aptly named after the Hindi word for “magnet,” the brand aimed to pull people toward a new narrative of Indian design—colorful, contemporary, and brimming with character.
Thinking Big
Turning this vision into reality required bold decisions. Shubhra and Vivek sold Shubhra’s ancestral home to raise ₹45 lakh—a leap of faith that reflected their belief in Chumbak.
They started small, working out of their Bengaluru apartment and focusing on fridge magnets depicting everything from Bollywood icons to auto-rickshaws. These playful designs resonated with urban Indians and curious tourists alike.
The Hustle and the Kiosk
Their early days were marked by hustle and learning. Without manufacturing experience, they faced challenges of sourcing vendors, managing inventory, and maintaining quality.
A kiosk in Bengaluru’s Forum Mall became their first retail experiment, offering direct customer feedback that shaped their offerings.
Through Social Media
Social media, then an emerging tool, became their marketing lifeline. Bright, engaging posts created a buzz and turned word-of-mouth into a powerful growth engine.
Chumbak established a strong presence across platforms like Facebook, Twitter, and YouTube. Due to limited marketing budgets, it relied solely on social media to build brand recall.
Their approach was tactical, leveraging each platform’s strengths to engage customers and convey consistent messaging
Content that Made an Instant Connect
Chumbak was among the first Indian brands to feature in a global Facebook case study, underscoring its innovative platform use.
The brand prioritized accessibility and honesty in its communications, using forums to discuss market issues and platforms like LinkedIn and Twitter to maintain a direct dialogue with customers.
By publishing valuable and entertaining content tailored to its audience, Chumbak created a loyal following. They believed their followers sought content they enjoyed, not just promotional material, a principle reflected in every post.
Where Tradition Meets Modernity
At the heart of Chumbak’s success lies its design philosophy, which blends traditional Indian elements with contemporary design sensibilities.
The brand’s creative team, under Shubhra’s leadership, meticulously designs products that captivate the modern Indian consumer while remaining deeply connected to cultural heritage.
Every product tells a story, from whimsical elephant motifs to vibrant geometric patterns.
Trends with a Quirky Twist
This design approach set Chumbak apart from competitors and established it as a pioneer in India’s modern lifestyle space.
Collaborations with artists and designers further enriched their product offerings, making Chumbak a trendsetter in the market.
From Gifting to Lifestyle
Financial strain, production delays, and scaling challenges tested their resilience. But each obstacle brought clarity. To grow, they had to evolve from a niche gifting brand to a full-fledged lifestyle company.
In 2013, a $2 million investment from Seed fund became a turning point. This funding allowed Chumbak to expand its product range to include apparel, home decor, and accessories.
With skilled designers, better manufacturing processes, and more extensive marketing campaigns, Chumbak transitioned into a brand that defined urban Indian lifestyles
From Bengaluru to the World
By 2015, the company had launched its first experience store in Bengaluru, showcasing its complete range of products.
This was followed by a rapid expansion across India, with exclusive brand outlets in cities like Mumbai, Delhi, Chennai, and Kolkata.
The brand’s online presence also grew significantly, contributing to a substantial portion of its revenue. Platforms like Amazon, Flipkart, and its website became major channels for reaching customers nationwide.
During this time, Chumbak also ventured into international markets, gaining traction among Indian expatriates and global consumers who appreciated its unique design ethos.
Above the Competition
India’s lifestyle and retail sectors are highly competitive, with domestic and international players vying for consumer attention.
Chumbak’s ability to adapt to market dynamics has been a key factor in its continued success.
For instance, during the COVID-19 pandemic, when retail sales were severely impacted, Chumbak pivoted to strengthening its e-commerce operations and introduced home-office essentials to cater to its customers’ changing needs.
Goals, Great Appeal
The company’s commitment to sustainability is another aspect that resonates with today’s conscious consumers.
By adopting eco-friendly production and packaging practices, Chumbak reduced its environmental footprint and aligned itself with global trends in responsible consumerism.
With G.O.A.T Brand Labs
By 2023, Chumbak had grown into a household name with over 30 stores across India, clocking a revenue of ₹71.13 crore.
It had also raised nearly ₹250 crore across 14 funding rounds, including a ₹2.9 crore investment in September 2022.
The same year, G.O.A.T Brand Labs acquired Chumbak, setting ambitious plans to scale the company to ₹500 crore by 2025.
The Future of Indian Design
Today, Chumbak’s product range includes home decor, fashion, accessories, and personal care products, catering to a diverse audience.
The brand’s future is equally vibrant: it will deepen its presence in Tier 2 and Tier 3 cities, expand internationally to Southeast Asia and North America, and leverage technology for innovations like augmented reality try-ons and 3D product visualization.
Traditionally, angel investors were a small group of high-net-worth individuals who backed startups with substantial capital. Today, however, the definition of an angel investor is broadening.
A new wave of professionals, entrepreneurs, and even middle-income individuals is venturing into startup investments, often contributing smaller amounts. Platforms like the Indian Angel Network (IAN) and syndicates on AngelList have made it easier for these micro-investors to participate in funding rounds.
This democratization of startup investments has opened doors for those without access to such opportunities before. With investment thresholds as low as ₹50,000 to ₹1,00,000, more individuals are stepping into the role of angel investors, fueling the growth of early-stage startups. Source: Livemint
Indian Startups Gear Up for a Hiring Revival
Indian startups are gearing up for recruitment in FY25 as the funding environment improves following a prolonged slowdown. Staffing firms project a 20-30% rise in hiring, driven by a 14% YoY increase in funding, which reached US$ 10.9 billion in FY24. Investments fell from US$ 36 billion in FY21 to US$ 24.7 billion in FY22 and to US$ 9.6 billion in FY23. Source: IBEF
Layoffs declined significantly by 46% year over year, from 16,398 in 2023 to 8,895 in FY24, reflecting a shift toward growth and expansion. Key sectors such as retail, e-commerce, fintech, FMCG, automotive, travel, and hospitality are expected to lead the hiring wave. At the same time, industries like BFSI, telecom, healthcare, pharma, and energy may see subdued activity, especially in the first quarter of FY25.
The Role of Platforms in Driving the Trend
Platforms like IAN, LetsVenture, and AngelList lead this shift, making startup investments more accessible. They provide a structured approach for new investors, including due diligence, co-investment opportunities, and legal support. These platforms enable small investors to pool their resources and collectively invest in promising startups, reducing individual risks while amplifying impact. Source: Livemint
Moreover, technology has played a crucial role in connecting startups with potential investors. Online platforms and virtual pitch sessions have made it easier for investors from different geographies to evaluate opportunities and participate in funding rounds.
Emergence of New Angel Investors
Writing cheques as low as ₹50,000 was previously limited to the friends and family of founders at the idea stage. Now, such lower ticket sizes are becoming common among Younger professionals, Business owners from smaller towns, and New entrants in the startup ecosystem.
Shift in Angel Investment Trends
Micro-Investments by New-Age Investors
New-age investors are making micro-investments starting as low as ₹50,000. This trend highlights a shift toward smaller bets in angel investments.
Typical Angel Investor Cheque Sizes
Most angel investor cheques now range between ₹3 lakh to ₹8 lakh. These amounts surpass the smaller deals often made by wealthier investors and prominent startup founders.
Larger Cheques from Select Investors
A smaller group of investors, such as second-generation family office individuals, writes larger cheques of ₹35-50 lakh. However, deals of this size are relatively fewer compared to lower ticket sizes.
Preferred Cheque Size for Risk Management
Most investors opt for investments in the range of ₹5-7 lakh to balance risk at the early stage.
Average Ticket Sizes Across Platforms
The average ticket size across angel funds typically does not exceed ₹9 lakh:
1. High Growth Potential: Startups are often associated with high-risk, high-reward investments. Many angel investors are drawn to the possibility of exponential returns, as seen in success stories like Swiggy and Zomato.
2. Passion for Innovation: For many, the appeal lies in supporting disruptive ideas and technologies potentially transforming industries.
3. Networking and Learning: Angel investing also offers opportunities for networking with entrepreneurs, learning about emerging industries, and staying ahead of market trends.
How Startups Benefit from Micro-Investments
The influx of micro-investors brings several advantages for startups:
Diverse Capital Sources: Startups no longer need to rely solely on large investors. Multiple small investments can provide the required capital while spreading the risk.
Broader Support Network: Each investor brings unique expertise, network, and perspectives, which can be invaluable for a startup’s growth.
Validation and Visibility: A wide base of angel investors can act as a vote of confidence, attracting more interest from institutional investors.
Sectors Gaining Traction
While the startup ecosystem is diverse, some sectors are seeing heightened interest from angel investors:
Fintech: With digital payments and financial inclusion gaining momentum, fintech startups remain a top choice.
Healthtech: The pandemic has accelerated the adoption of digital healthcare solutions, making this a lucrative sector.
E-commerce and Food Delivery: Companies like Swiggy and Zomato have demonstrated the potential of this space, inspiring new ventures and attracting investors.
Edtech: As education continues to go digital, edtech startups draw significant attention from small investors.
Challenges for New Angel Investors
Despite the opportunities, entering the world of startup investments comes with its challenges:
High Risk: Startups are inherently risky, with many failing to deliver returns. New investors need to be prepared for potential losses.
Lack of Expertise: Evaluating startups requires industry knowledge, market trends, and financial metrics, which can be daunting for newcomers.
Illiquid Investments: Startup investments are not easily liquidated, and it may take years for an investor to see returns.
To mitigate these challenges, new angel investors are advised to:
Diversify their investments across multiple startups.
Start with smaller amounts to gain experience.
Leverage the expertise of seasoned investors through syndicates and networks.
The Impact on the Startup Ecosystem
The surge in small investments creates a more vibrant and inclusive startup ecosystem. Startups find it easier to secure seed funding, which is critical for turning ideas into viable businesses. This trend also encourages entrepreneurship in smaller cities and towns, where access to capital was previously limited.
Additionally, the involvement of diverse investors brings fresh perspectives and localized insights, helping startups better address market needs. This trend’s ripple effect extends to job creation, innovation, and economic growth.
Government Initiatives Supporting Angel Investments
Government policies and initiatives have also contributed to fostering angel investments. Programs like Startup India and tax incentives for angel investors have made the ecosystem more attractive. Simplified compliance procedures and startup funding support have further boosted small investors’ confidence.
The Road Ahead
As the startup ecosystem evolves, the role of big and small angel investors will continue to grow. The next wave of angel investing may likely to see increased participation from women investors, professionals in niche industries, and international investors looking at Indian startups as a gateway to emerging markets.
The emphasis will also shift towards sustainable and impact-driven startups as more investors prioritize social and environmental returns alongside financial gains.
The entry of a new wave of angel investors into the startup scene is reshaping the investment landscape. Small investments empower startups, democratize wealth creation, and foster innovation.
This new wave of angel investors is pivotal in driving India’s startup revolution by supporting visionary ideas and entrepreneurial talent. As the ecosystem matures, the collaboration between startups and micro-investors can create a more dynamic and inclusive economy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is the key takeaway of this funding revival?
Indian startups are experiencing a resurgence in funding, with small investments driving a 14% year-over-year growth. This indicates a shift towards sustainable, long-term growth strategies.
Why are small investments crucial?
Small investments provide crucial early-stage support for startups, enabling them to validate their business models, build prototypes, and attract larger funding rounds. They foster a healthy ecosystem for innovation and entrepreneurship.
How does this revival impact the Indian startup ecosystem?
This funding revival boosts investor confidence and attracts more capital to the Indian market. It creates a more robust and resilient startup ecosystem, leading to job creation, economic growth, and technological advancements.
What are the challenges faced by startups despite this revival?
Challenges include navigating economic uncertainty, securing long-term funding, and building a sustainable competitive advantage. Startups must focus on building strong fundamentals and demonstrating clear value propositions.
How does a spiritual gathering transform into an economic powerhouse? What makes the Maha Kumbh, a centuries-old tradition, such a significant contributor to the economy? The Maha Kumbh, often described as the largest human congregation in the world, is not just a religious or cultural event—it is a financial catalyst with far-reaching implications.
The Historical and Cultural Significance of Maha Kumbh
The Maha Kumbh Mela, rooted in Indian mythology and tradition, occurs once every 12 years at one of four locations: Prayagraj, Haridwar, Ujjain, and Nashik. According to Hindu astrology, this massive pilgrimage is linked to the celestial movement of Jupiter, the Sun, and the Moon. It symbolizes spiritual cleansing and attracts millions of devotees, saints, and international visitors seeking divine blessings and cultural experiences.
In 2025, the Maha Kumbh at Prayagraj is expected to set new records. With preparations underway, the focus is on its spiritual aspects and its profound economic impact.
Economic Impact of Maha Kumbh
Revenue Projections and Job Creation
According to Uttar Pradesh Chief Minister Yogi Adityanath, the 2025 Maha Kumbh is projected to generate revenues of up to ₹2 lakh crore. This figure underlines the event’s capacity to significantly boost the state’s economy. The scale of economic activities surrounding the Maha Kumbh is immense, spanning tourism, infrastructure development, retail, hospitality, and transportation.
Past data from events like the 2019 Kumbh Mela reveal the financial benefits associated with these gatherings. For instance, the 2019 Prayagraj Kumbh attracted over 24 crore visitors and contributed ₹1.2 lakh crore to the economy. Experts suggest that Maha Kumbh 2025 will surpass these figures due to enhanced infrastructure and promotional efforts.
The event is also a major source of employment. Thousands of jobs are created in sectors like:
Hospitality and Catering: Hotels, guesthouses, and food vendors witness a massive influx of customers.
Transportation: Drivers, logistics managers, and support staff see increased demand.
Construction: Large-scale infrastructure projects require skilled and unskilled labor.
Local Businesses: Artisans, shopkeepers, and small vendors benefit from the spending by millions of attendees.
The Maha Kumbh attracts tourists from around the world. In 2019, more than 10 lakh foreign tourists attended the Kumbh Mela, highlighting its global appeal. This influx boosts foreign exchange earnings and promotes India’s cultural heritage on a global stage.
The government invests heavily in developing tourism-related infrastructure to cater to the growing number of visitors. Improved roads, railways, airports, and accommodations ensure smoother experiences for pilgrims and tourists. These upgrades have lasting benefits, enhancing connectivity and accessibility long after the event. Source: Hindustan Times
Boost to Local Economies
Local economies around Prayagraj experience a surge in demand during the Maha Kumbh. Small businesses—from flower vendors to boat operators—report record earnings. Local artisans selling handicrafts and religious paraphernalia also find a lucrative market among visitors. This economic activity trickles down to even the smallest players, fostering inclusive growth.
Real Estate and Infrastructure Development
The Maha Kumbh catalyzes urban development. Significant funds are allocated for constructing new roads, bridges, sanitation facilities, and accommodations. The 2025 Maha Kumbh is expected to see unprecedented investments in infrastructure, ensuring a seamless experience for attendees. These developments often transform the host city, making it more attractive for future investments and events.
Government and Policy Support
The government’s role in organizing the Maha Kumbh is pivotal. For the 2025 event, the Uttar Pradesh government has planned extensive initiatives, including:
Technology Integration: Digital tools for crowd management, virtual darshan facilities, and real-time visitor updates.
Public Safety: Deployment of additional security personnel and emergency response teams.
Environmental Measures: Efforts to minimize ecological impact through waste management and pollution control.
These measures not only enhance the event’s execution but also contribute to long-term economic stability and sustainability. Source: The Hindu
A Broader Perspective on Economic Benefits
The Maha Kumbh’s economic impact extends beyond immediate revenues and job creation. Experts like Neelkanth Mishra, a prominent economist, emphasize the lasting effects on India’s economy. Infrastructure improvements increased global visibility, and the promotion of India as a cultural and spiritual destination has ripple effects across various sectors.
Moreover, the event’s ability to mobilize resources and people on a massive scale showcases India’s organizational capabilities. This, in turn, boosts investor confidence and attracts further investments.
Conclusion
The Maha Kumbh is more than a religious congregation; it is a testament to India’s cultural richness and economic potential. The event leaves an indelible mark on the economy by generating revenues, creating jobs, and driving infrastructure development. As preparations for the 2025 Maha Kumbh continue, it is a powerful example of how tradition and modernity coexist to create lasting economic and social impact.
Whether you view it as a spiritual journey or an economic engine, the Maha Kumbh’s significance is undeniable. It reminds us of the profound ways in which culture and economy are intertwined, shaping not just a city but an entire nation.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Coffee cafes have long been the go-to place for a quick caffeine fix or a cozy spot to work, socialize, or unwind. However, the coffee market has recently faced significant challenges, pushing even the most iconic brands and local favorites to rethink their strategies.
Well-established Café chains like Starbucks, Barista, Chaayos, and Third Wave Coffee are struggling due to reduced consumer spending, evolving consumer preferences, and fierce competition. The impact is harsher on the retailers because they opened hundreds of new stores last year despite increasing losses. In some cases, this resulted in the same retailer opening multiple stores in the exact location, which slowed their growth rather than expanding the market.
However, smaller brands like Tim Hortons and Blue Tokai have surprisingly avoided these challenges. Let’s examine what’s happening in the world of coffee businesses.
Growth has slowed across several major coffee brands. Barista and Chaayos saw their growth rate fall from nearly 70% to just 5% in FY24. Starbucks’ sales growth declined to 12% in FY24 from 70% in FY23. Third Wave’s sales growth dropped to 67% in FY24, down from 355% the previous year. Cafe Coffee Day posted a 9% growth in FY24, a sharp drop from 59% the year before.
Brands Defying the Trend
Tim Hortons more than doubled its sales in its first full year of operations. Blue Tokai bucked the slowdown with a 70% growth in FY24, slightly down from 73% in FY23. Tim Hortons, the Canadian coffee chain that opened its first outlet in India in 2022, aims to have over 100 stores in the next three years. Similarly, British coffee and sandwich chain Pret A Manger, which launched its first store in Mumbai through a franchise agreement with Reliance Brands, plans to open up to 100 stores in the next five years.
Target Market and Pricing
Most coffee chains price their cups between Rs 250 and Rs 350, aiming at wealthy coffee lovers who appreciate special brewing methods and unique experiences. This narrows their customer base. Since 2022, the number of coffee outlets has increased, with new and established brands expanding. As a result, the number of cafés in larger cities has risen significantly in recent years.
Coffee Market in India
The Indian Coffee Market was valued at USD 478 million in 2022 and is projected to grow to USD 1,227.47 million by 2032, with a CAGR of 9.87% from 2024 to 2033. India’s domestic coffee consumption has risen significantly over the past five years, driven by the expanding middle class and growing awareness of coffee culture.
Furthermore, roasted coffee and instant coffee were the most popular segments consumed by Indians.
Changing Market Dynamics and the Impact on the Industry
The overall slowdown in the coffee market, combined with the growth of smaller chains, indicates broader changes in India’s café culture. Several factors are contributing to these changes, including the economic slowdown, rising inflation, and shifts in consumer spending habits.
The quick-service restaurant (QSR) sector, which includes coffee chains, has also felt the effects of this slowdown. Experts argue this is a broader issue related to consumer spending than just the coffee market. With fewer people willing to spend on premium coffee experiences, brands adjust their pricing and offerings to appeal to a larger audience.
For instance, Tata Starbucks, the joint venture between Tata Consumer Products and Starbucks Corp, has been adjusting its portfolio and pricing strategies to counteract declining footfalls. Last year, the chain introduced classic hot and iced coffee at Rs 150 for a small cup, which is about 20-30% cheaper than regular coffee offered at Starbucks and other café chains. This shift in pricing strategy reflects the changing consumer preferences and the need to cater to a broader, more price-sensitive audience.
The Indian coffee market is experiencing significant change. While large chains like Starbucks and Barista are struggling with slowing growth, smaller brands like Blue Tokai and Tim Hortons are thriving. This shift in the market reflects changing consumer preferences, with a growing demand for affordable, high-quality coffee.
As the industry adapts to these changes, innovation, affordability, and an emphasis on sustainability will clearly shape the future of India’s coffee market. The café culture in India is evolving, and only the brands that can keep up with these changes will succeed in the long run.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is the growth potential of the Indian coffee market?
The Indian coffee market is projected to grow significantly, reaching a market size of 1.23 billion USD by 2032. This growth is driven by increasing demand for specialty coffee and a growing young population.
Which coffee brands are leading the market?
While global giants like Starbucks and Barista have a strong presence, Indian brands like Blue Tokai are gaining traction. Their focus on high-quality beans, unique blends, and a strong brand identity is resonating with consumers.
What factors are driving the growth of the Indian coffee market?
Rising disposable incomes, changing consumer preferences for premium coffee experiences, and increasing urbanization are contributing to the expansion of the Indian coffee market.
What are the challenges facing the Indian coffee market?
Challenges include intense competition from international brands, price fluctuations in coffee beans, and the need for consistent quality control across the supply chain.
The Standard Glass Lining IPO has caught investors’ attention with an oversubscription of 183.18 times. This means there was a huge demand for the shares, way more than what was available. Today, the basis of allotment will be finalized, which is crucial in determining which applicants will receive shares and in what quantity.
If you’ve applied for the IPO, you’re probably wondering whether you got an allotment. Don’t worry—it’s easy to check! We’ll walk you through how to check your allotment status and provide you with all the details about the IPO so you know exactly what’s happening.
Overview of Standard Glass Lining IPO
Standard Glass Lining Technology IPO was open for bidding from January 6 to January 8, 2025. The shares were priced in a range of ₹133-₹140 per share, with a minimum lot size of 107 shares. The company raised ₹410.05 crore through this public offering, which included ₹210 crore from a fresh issue and ₹200.05 crore through an offer-for-sale (OFS).
By the end of the subscription period, the IPO had received bids for 3,81,56,56,808 shares against an offer of 2,08,29,567 shares, leading to an oversubscription of 183.18 times.
Subscription Details
The IPO witnessed overwhelming demand across all investor categories:
The highest demand came from Qualified Institutional Buyers (QIBs), followed by Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs).
Day-Wise Subscription Details
Here’s a breakdown of how the subscription grew during the three days of bidding:
The sharp increase in demand on Day 3 highlights the interest from institutional and non-institutional investors, driving the oversubscription.
Grey Market Premium (GMP)
Standard Glass Lining’s shares are trading at a grey market premium of ₹91 over the upper price band of ₹140, indicating a potential listing price of ₹231. This suggests a return of 65%, though it’s essential to remember that grey market trends are speculative and unregulated.
Listing Date
The shares are scheduled to list on the BSE and NSE on January 13, 2025. While GMP trends are optimistic, actual listing performance will depend on broader market sentiment.
Checking the Allotment Status
If you participated in this IPO, here’s how you can check your allotment status:
Select “Standard Glass Lining Technology Limited” from the dropdown menu (available if the allotment is finalized).
Choose one of the three identification modes: Application number, Demat Account number, or PAN ID.
Select your application type (ASBA or non-ASBA).
Enter the relevant details and solve the captcha.
Click submit to check your allotment.
About Standard Glass Lining Technology
Established in 2012, Standard Glass Lining Technology Limited is a premier manufacturer of specialized engineering equipment for India’s pharmaceutical and chemical industries. The company delivers turnkey solutions with in-house production capabilities, including design, manufacturing, assembly, and operational support.
Product Portfolio:
The company’s offerings cater to diverse industrial needs:
Reaction Systems for controlled chemical processes.
Storage, Separation, and Drying Systems for material handling and purification.
Plant Engineering and Services for complete operational efficiency.
The company uses glass-lined steel, stainless steel, and nickel alloys to ensure its products meet the highest quality and performance standards.
Clientele
Standard Glass Lining serves an impressive client base, including Aurobindo Pharma, Natco Pharma, Laurus Labs, Deccan Fine Chemicals, and CCL Food and Beverages.
Infrastructure
With eight advanced manufacturing units in Hyderabad and sales offices in Vadodara, Mumbai, Ankleshwar, and Visakhapatnam, the company ensures nationwide reach. It also has sales representatives across key cities like Chennai, New Delhi, and Bengaluru.
Financials of Standard Glass Lining Technology
Between the financial years ending March 31, 2023, and March 31, 2024, Standard Glass Lining Technology Limited demonstrated solid financial performance, with a notable 10% increase in revenue. During the same period, the company’s profit after tax (PAT) also significantly improved, rising by 12%. These figures highlight the company’s ability to sustain growth and profitability in a competitive market environment.
With a record-breaking oversubscription, the Standard Glass Lining IPO has been a significant event in the market. Investors are now eagerly awaiting the allotment results and subsequent listing performance. Following the above steps, you can quickly check if you’ve secured an allotment.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
On January 8, 2025, Jindal Worldwide’s shares surged by 5.7%, reaching an all-time high of ₹471.20. This boost followed the company’s announcement of a bonus issue, which has excited investors and market watchers alike. Source: LiveMint
Jindal Worldwide’s share price surge can be directly linked to a 4:1 bonus issue announcement. Investors will receive four additional shares for every share they hold at no extra cost. This effectively increases the number of shares investors own, enhancing liquidity and marketability.
The board of directors approved this proposal on January 7, 2025. The bonus shares are expected to be credited by March 6, 2025, aligning with regulatory timelines. This decision will also adjust the company’s capital structure, reflecting the increased number of shares in circulation. Source: LiveMint
Understanding Bonus Issues and Their Impact
A bonus issue is a way for companies to reward their shareholders without distributing cash. Instead of dividends, existing shareholders receive additional shares proportional to their current holdings. This approach enhances investor confidence and signals the company’s strong financial health.
In this instance, Jindal Worldwide’s board approved the 4:1 bonus issue on January 7, 2025. As of March 31, 2024, the bonus shares will be allocated from the company’s free reserves and securities premium account. Shareholders can expect these bonus shares to be credited or dispatched by March 6, 2025, adhering to the two-month timeline from the board’s approval. Source: Business Standard
Implications for Shareholders
For shareholders, this bonus issue translates to an increase in the number of shares they hold, though it doesn’t directly enhance the overall value of their investment. The market typically adjusts the share price to reflect the increased number of shares in circulation. In Jindal Worldwide’s case, the paid-up share capital will rise from ₹20.05 crore, comprising 20,05,20,400 fully paid-up equity shares, to ₹100.26 crore, consisting of 100,26,02,000 shares.
Market Reaction and Stock Performance
The announcement had an immediate positive impact on the company’s stock price, propelling it to a 52-week high of ₹471.20. The smallcap stock has surged 75% from its 52-week low of ₹267.75, recorded in January 2024.
Over the past year, Jindal Worldwide’s stock has appreciated by approximately 44%. Notably, in January 2025 alone, the stock has gained over 15%, building on a 25% rise in December and a 3% increase in November.
Established in 1952, Jindal Worldwide is a prominent player in the textiles sector. The company primarily manufactures denim fabric, premium shirtings, yarn dyeing, bottom weights, and home textiles through its various internal divisions. The company has demonstrated consistent performance and strategic initiatives, including the latest bonus issue.
Jindal Worldwide’s decision to issue bonus shares has been met with enthusiasm in the market, as evidenced by the surge in its stock price. While the bonus issue increases the number of shares held by investors, it’s essential to understand that the overall value of their investment remains unchanged immediately following the issuance. Investors should continue to monitor the company’s performance and market conditions to make informed decisions about their holdings.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What happened to Jindal Worldwide shares?
Jindal Worldwide shares surged 5.7% to a record high following the announcement of a bonus issue. This indicates strong investor confidence.
Why did the share price increase?
The significant price jump is primarily attributed to the bonus issue announcement. Bonus issues often boost investor sentiment as they increase the shares held by existing shareholders without diluting their ownership percentage.
What is a bonus issue?
A bonus issue is when a company distributes additional shares to existing shareholders for free. This is usually done from the company’s reserves.
How does a bonus issue impact investors?
A bonus issue can increase liquidity in the stock, making it easier to buy and sell shares. It can also potentially lead to higher trading volumes and increased market interest in the company.
What does this mean for future investors?
The strong price surge suggests positive investor sentiment towards Jindal Worldwide. However, potential investors should conduct thorough research and consider the company’s financials and future growth prospects before making any investment decisions.
Have you noticed the latest buzz around India’s economic growth? You might be concerned about the future if you’re watching the numbers. The National Statistics Office (NSO) has released its first advance estimates, indicating that India’s GDP growth for the fiscal year 2024-25 (FY25) is set to slow down to 6.4%.
This figure marks the lowest growth rate in four years and falls short of the Reserve Bank of India’s (RBI) projection of 6.6%. Let’s break down what this means and why there’s still a silver lining in the second half of the fiscal year.
Key Takeaways from GDP Estimates
Real GDP Growth: 6.4% for FY25, down from 8.2% in FY24.
Nominal GDP Growth: Projected to grow by 9.7% in FY25, a slight increase from 9.6% in FY24.
Gross Value Added (GVA): Real GVA growth is expected to remain at 6.4%, compared to 7.2% in FY24.
Sectoral Growth:
Agriculture: 3.8% growth in FY25, up from 1.4% in FY24.
Construction: 8.6% growth in FY25, down from 9.1% in H1.
Services: Slight increase to 7.2% in FY25 from 7.1% in H1.
Expenditure Growth:
PFCE: 7.3% growth in FY25, up from 6.7% in H1.
GFCE: 4.1% growth in FY25, up from 2% in H1.
Investment Demand: Remains steady at 6.4% in FY
Source: MOSPI
Understanding the GDP Slowdown
The NSO’s estimate of 6.4% growth represents a significant deceleration from the 8.2% growth rate recorded in FY24. This slowdown is attributed to various factors, including subdued consumer demand and elevated inflationrates. In the first half of FY25 (H1), the economy grew at 6%, but the NSO anticipates an improved performance in the second half (H2), with GDP growth expected to rise to 6.7%.
Source: MOSPI
Breakdown of the Estimates
The First Advance Estimates of GDP incorporate industrial production data from October and lead indicators up to December, projecting a stronger second half. The Gross Value Added (GVA) growth is also pegged at 6.4%, aligning with the GDP growth rate. This alignment suggests that indirect taxes and subsidies will likely balance each other out, maintaining overall economic stability.
Sectoral Insights: Agriculture and Manufacturing on the Rise
One of the key highlights of the NSO’s report is the anticipated improvement in the agriculture and manufacturing sectors during H2 FY25.
Agriculture: Agriculture grew by 2.7% in the first half, but the NSO estimates a robust 3.8% growth for the entire fiscal year. This uptick is expected due to healthy reservoir levels and favorable soil moisture conditions supporting rabi cultivation.
Source: MOSPI
Manufacturing: The manufacturing sector saw a 4.5% growth in H1 and is projected to increase to 5.3% in FY25. This growth is primarily driven by a likely recovery in domestic demand, which is crucial for sustaining manufacturing activities.
While these sectors show promise, not all areas are set to perform equally. For instance, the labor-intensive construction sector is expected to slow down in H2, with growth dipping from 9.1% in H1 to 8.6% in FY25. On the other hand, the services sector is projected to see a marginal increase, growing from 7.1% in H1 to 7.2% in FY25.
Expenditure Trends: Private and Government Spending
On the expenditure side, private and government spending is expected to grow faster in the second half of FY25 than in the first half.
Private Final Consumption Expenditure (PFCE): Estimated to grow by 7.3% in FY25, up from 6.7% in H1. This increase indicates stronger consumer spending, a positive sign for the economy.
Government Final Consumption Expenditure (GFCE): Projected to rise by 4.1% in FY25, compared to 2% in H1. Increased government spending can help sustain economic activities and support various sectors.
Source: MOSPI
However, investment demand, represented by gross fixed capital formation, is expected to grow at the same rate of 6.4% in FY25 as in H1. This stagnation suggests private investment is not picking up, which could concern long-term economic growth.
Inflation and Global Factors
Inflation remains a significant concern, with the December inflation rate expected to exceed 5%. Although vegetable prices moderated somewhat during the season, it wasn’t enough to counterbalance the substantial price increases observed in recent months.
Global uncertainties also affect the economic outlook. The incoming Trump presidency has added depreciation pressure on the rupee.
Additionally, the US Federal Reserve will likely maintain its current stance in the upcoming January meeting, which could lead to higher US yields and further pressure on the rupee. Given these global factors and elevated inflation, the RBI is expected to adopt a cautious approach, possibly waiting for more evidence that inflation is moderating before considering any rate cuts. Source: Business Standard
Nominal GDP and Fiscal Deficit
The NSO has estimated nominal GDP growth to be 9.7% for FY25, slightly lower than the 10.5% assumed in the Budget. This marginal slowdown could make it challenging for the government to achieve its fiscal deficit target of 4.9%. However, sluggish capital expenditure might lead to substantial savings for the government, helping it stay on track with fiscal consolidation efforts.
Conclusion
India’s GDP growth for FY25 is projected to slow to 6.4%, the lowest rate in four years. While this may seem concerning, there are positive signs, particularly in the agriculture and manufacturing sectors, which are expected to perform well in the second half of the fiscal year. Improved consumer demand and increased government spending also support the economy. However, rising inflation and global uncertainties remain challenging, making understanding these factors important to grasping the economic outlook for the months ahead.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Get answers to the most pertinent questions on your mind now.
[faq_listing]
What is an Investment Advisory Firm?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Do we have SEBI registration as an Investment Advisory?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Why choose a SEBI Registered Investment Advisor?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
What is the Role of an Investment/Stock Market Advisory Firm in India?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Is investment advisory the same as wealth management?
