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Breaking The Market Trend: Aditya Ultra Steel Clocks 8% on NSE SME

Breaking The Market Trend: Aditya Ultra Steel Clocks 8% on NSE SME

NIFTY50 and the SENSEX have been plummeting for over a week. The domestic stock market is struggling to stay rooted amidst the selling pressure. Consequently, the indices have slipped into one of the steepest correction phases in the past four years, which led to a fall of around 10%. 

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Source: MoneyControl

Despite the weak global cues and the declining broader markets, one NSE SME stock grew its share price. Aditya Ultra Steel Limited, a stock listed on NSE SME, rose 8% and marked a rising trend. Read further to know the reasons behind the stock’s resilient positive returns. 

Overview of Aditya Ultra Steel Limited:

Aditya Ultra Steel Pvt. Ltd., part of the Aditya Group of Companies, specializes in manufacturing TMT bars for the construction and infrastructure industries. Incorporated in July 2011 as a Private Limited Company, it is registered in Gujarat at Dadra and Nagar Haveli. The company produces rolled steel products, primarily TMT bars, under the trusted Kamdhenu brand. These bars are designed for construction and infrastructure development projects, ensuring quality and durability.  

Their manufacturing plant is located in Wankaner, Gujarat. It features modern facilities, including advanced testing laboratories, and benefits from excellent transport connectivity to streamline operations. Aditya Ultra Steel focuses on the B2B market, delivering TMT bars tailored to the needs of various construction and infrastructure ventures.

The company manufactures TMT bars under a retail license agreement with the Kamdhenu brand, serving Gujarat’s Kutch and Saurashtra regions. It sells these bars through a distribution network of 73 dealers. To streamline deliveries, the company owns a fleet of 23 vehicles. A significant portion of its revenue, 57%, comes from its top customer, while 98.5% of its total income is generated from Gujarat.

Revenue and Profit Trends of Aditya Ultra Steel Limited:

Due to the expansion of the construction industry, the demand for TMT bars and the need for steel in different infra projects has increased gradually. The TMT bar market is set to see steady growth. Between 2022 and 2027, it is expected to expand at a CAGR of 4.34%. Looking ahead to 2033, the market revenue is predicted to grow faster, with a CAGR of 9.6%. 

The growth prospects and positioning of Aditya Ultra Steel Limited led to the company’s consistent rise in revenue and profits. In 2023-24, the company’s total income rose by 10.73% to Rs.588.59 crore from FY2023’s income of Rs.531.57 crore. 

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Source: Annual Report

Aditya Ultra Steel also clocked a profit of Rs.7.68 crore, almost double the net profit (after tax) of FY2023, Rs.3.7 crore. Over the past five years, the company’s profit trend has been as shown-

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Source: Annual Report

Apart from its steady finances, the company also came into the limelight due to its recently launched IPO on 16th September 2024 as a part of its expansion plans. Aditya Ultra Steel launched its SME IPO in September 2024 to raise Rs.45.88 crore for expansion, working capital, and corporate needs. The company was listed on the NSE SME on 16th September, with shares priced between Rs.59 and Rs.62. It made a strong debut, listing at Rs.69.60, about 13% higher than its issue price.  

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Source: MoneyControl

On the same day, the stock touched a peak of Rs.72. However, by November 13, it hit an all-time low of Rs.50. Shortly after, the stock showed some recovery, gaining 8% on November 18, 2024.

Factors Contributing To The Share Price Growth:

  1. Aditya Ultra Steel Limited posted good financials for the half-year ending September 2024. The company maintained strong growth during the first half of the financial year 2024-25 (H1FY25). In a press release on November 16, the company reported revenue of Rs.312.39 crore H1FY25. EBITDA stood at Rs.10.50 crore, while net profit reached Rs.5.20 crore.  
  2. The company announced in its press release that it is focusing on expansion. This initiative focuses on increasing production capacity, improving operational efficiency, and adopting sustainable practices. The company’s September IPO was a part of this vision.
  3. The company is setting up a 5 MW solar power plant in Jasdan, Rajkot, Gujarat. This project, worth Rs.15.35 crore, will have a capacity of 5,000 KWP. It aims to meet the company’s energy needs while promoting sustainability.
  4. The company partnered with Maheshwar Ispat Private Limited to manufacture TMT bars from June 2023. In FY24, Maheshwar Ispat produced 10,866 MT of TMT bars, which made up 11.28% of the company’s total production.

Bottomline:

India’s steel and TMT market is growing, driven by rising demand for steel, the advantages of TMT bars, and the expanding global industry. Aditya Ultra Steel Limited is in a strong position to benefit from this growth and plans to expand in the coming years. However, as with any listed company, investing in it comes with risks, especially since it is a small-cap company. 

So, if you’re considering investing in Aditya Ultra Steel Limited, make sure to do thorough research on both the industry and the company’s fundamentals before making any decisions.

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 & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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₹10,000 Cr. NTPC Green Energy IPO: Key Insights, GMP & SWOT Analysis

₹10,000 Cr. NTPC Green Energy IPO: Key Insights, GMP & SWOT Analysis

Have you been tracking developments in the renewable energy sector? If you’re interested in green energy or the stock market, you may want to know more about NTPC Green Energy Limited’s upcoming IPO.

With an issue size of ₹10,000 crore, it has caught the attention of many industry watchers and market participants. This IPO marks a significant move for NTPC Green Energy, offering investors an opportunity to engage with a company focused on renewable energy solutions. Here’s a detailed breakdown of everything you need to know about this offering.

NTPC Green Energy IPO Details

NTPC Green Energy’s ₹10,000 crore IPO is a fresh issue of 92.59 crore shares, opening for subscription from November 19, 2024, to November 22, 2024. The price band is set at ₹102 to ₹108 per share, with a minimum lot size of 138 shares, requiring a retail investment of at least ₹14,904. 

Offer Price₹102 to ₹108 per share
Face Value₹10 per share
Opening Date19 November 2024
Closing Date22 November 2024
Total Issue Size (in Shares)925,925,926
Total Issue Size (in ₹)₹10,000.00 Cr
Issue Type Book Built Issue IPO
Lot Size138 Shares
Listing atBSE, NSE
Source: SEBI

Allocation of Shares

For small non-institutional investors (sNII), the minimum investment is 14 lots (1,932 shares), amounting to ₹208,656, while big non-institutional investors (bNII) need to invest in a minimum of 68 lots (9,384 shares), totaling ₹1,013,472. The shares are scheduled to list on the BSE and NSE on November 27, 2024.

Qualified Institutional Buyers (QIBs)Not less than 75% of the Net Issue
Non-Institutional Investors (HNIs)Not more than 15.00% of the Net Issue
Retail InvestorsNot more than 10% of the Net Issue

Objectives of the IPO

The company intends to use the net proceeds from the IPO for the following purposes:

  1. Investment in NTPC Renewable Energy Limited (NREL): To fund the repayment or prepayment of certain borrowings availed by NREL.
  2. General Corporate Purposes: To strengthen the company’s financial position and operational flexibility.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for NTPC Green Energy’s unlisted shares stood at ₹1, translating to a premium of 0.93% over the upper end of the price band. This is a dip from the ₹3 premium recorded on November 14, 2024, reflecting fluctuating investor sentiment in the grey market. Source: Business Standard

Company Overview

Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, India’s largest power producer. Focused on renewable energy, the company undertakes projects through both organic development and strategic acquisitions. As of August 31, 2024, NTPC Green Energy has an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states.

By June 30, 2024, its portfolio had expanded to 14,696 MW, comprising 2,925 MW of operating projects and 11,771 MW of contracted and awarded projects. The company is currently constructing 31 renewable energy projects across seven states, totaling 11,771 MW. With 15 off-takers engaged across 37 solar and 9 wind projects, NTPC Green Energy has established a strong market presence. 

Backed by NTPC Limited’s extensive experience in large-scale project execution and supported by a highly skilled team, NTPC Green Energy is well-positioned to deliver on its vision of advancing renewable energy solutions.

Financial Strength

NTPC Green Energy has demonstrated strong financial growth:

  • Revenue Growth: A staggering increase of 1,094.19% between FY23 and FY24.
image 15
Source: SEBI


  • Profit After Tax (PAT): Grew by 101.32% in the same period.

This growth underscores the company’s capability to scale its operations and generate consistent profits, even in a highly competitive sector.

image 16
Source: SEBI


SWOT Analysis of NTPC Green Energy

STRENGTHSWEAKNESSES
Strong Backing: Supported by NTPC Limited, ensuring financial and operational reliability.

Large Portfolio: A diversified renewable energy portfolio of 14,696 MW across solar and wind projects.

Execution Expertise: Proven track record in large-scale renewable energy projects.		Sector Dependency: Heavily reliant on the renewable energy sector, making it vulnerable to sector-specific risks.

Revenue Concentration: A significant portion of revenue depends on key off-takers.
OPPORTUNITIESTHREATS
Rising Demand for Renewable Energy: With increasing global focus on sustainable energy, the company is well-positioned to capitalize on the demand.

Government Support: Strong government push towards renewable energy adoption and infrastructure development.		Market Competition: Intense rivalry from established and emerging players in the renewable energy space.

Regulatory Risks: Changes in government policies or tariffs could impact revenue streams.

Conclusion

NTPC Green Energy’s ₹10,000 crore IPO is a significant step for the renewable energy arm of NTPC Limited. With its expansive portfolio and backing from India’s largest power producer, the company is poised to make a mark in the renewable energy sector. However, market conditions and competitive dynamics will play a crucial role in determining the IPO’s success.

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 & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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global market wrap

Global Stock Market Index: 17th November 2024 Weekly Recap

The global stock market continues to be in a volatile state for the second consecutive week, with all leading stock market indexes recording heavy losses during the week. 

Multiple factors are at play, resulting in a volatile market condition. The fear of a trade war with China has grown since Trump elected as the next president. Also, Fed’s recent hawkish remarks about rate cuts have also increased market uncertainty.

On the other hand, the price of gold and crude has been impacted by the dollar’s strength. While Brent Crude is trading close to the $70 mark, gold is down by more than 6% over the past seven days. 

The Dollar Index (DXY) has increased by more than 3% in the past month.

Now, let’s take a look at how the major stock market indices performed this week.

IndexPrevious Day Change (%)WoW Change (%)
US Markets
Dow Jones-0.70-1.24
S&P 500-1.32-2.08
Nasdaq-2.21-3.11
European Markets
FTSE 100-0.09-1.26
CAC 40-0.58-1.36
DAX-0.28-0.84
Asian Markets
Nifty 50 -0.11-2.35
Nikkei 2250.28-1.78
Straits Times0.171.90
Hang Seng-0.05-7.29
Taiwan Weighted0.12-2.85
KOSPI-0.08-5.85
SET Composite-0.52-1.84
Jakarta Composite-0.74-1.14
Shanghai Composite-1.47-4.03

World Stock Market Index US Markets

In the US, the ongoing uncertainty about the new administration’s policies kept fueling the volatility in the market. Different sectors showed varied returns, with financial and energy stocks benefiting from expectations of deregulation and merger approvals. 

Also, the cautious tone of Fed Chair Powell on future rate hike has resulted in bearish sentiment in the market.

Let’s check how the top US indices performed during the week.

Dow Jones

The Dow Jones 30 stock index traded on a weak note on Friday, falling by 0.70%. The index was dragged by technology stocks. Amazon was the top loser during Friday’s session, declining 4.8%. Compared to the previous week, the index is down by 1.24%. 

S&P 500

Weakness in technology and healthcare stocks pulled the S&P 500 index lower during the week. During Friday’s session, the index was down by 1.32%, bringing the cumulative loss for the week to 2.08%. 

Nasdaq

Profit taking in technology stocks resulted in a sharp decline in the Nasdaq. On Friday, the index was down by 2.21%, and on a week-on-week basis, it lost 3.11%. 

World Stock Market Index European Markets

The struggling European economy continues to hurt the stock market. Euro area data suggests a soft landing, reducing the risks of a technical recession. 

According to the minutes of the meeting, the European Central Bank’s quarter-percentage cut in rate last October was prompted by the rising risk of a deflationary condition in the economy. 

Now, let’s look at how different economies performed during the week. 

FTSE 100

The three months leading up to September saw an unexpected slowdown in the UK economy. GDP was recorded at 0.1%, less than the consensus estimate of 0.2% and lower than the 0.5% recorded in the previous quarter. 

The contraction in economic activity is due to the slowdown in manufacturing output and lower growth in the services sector. 

FTSE 100, the primary stock market index of the UK, traded flat on Friday, but on a week-on-week basis, it was down by 1.26%. 

CAC 40

France stocks traded lower on Friday. The technology, healthcare, and consumer services stocks contributed to the weakness. CAC 40 declined 0.58% on Friday, and compared to the last week, it closed lower by 1.36%. 

DAX

Economists expect the German economy to contract by 0.1% in the last quarter because of the market-wide slowdown in the continent. The German stock market index traded lower on Friday, down by 0.28%. On a week-on-week basis, the index closed slightly lower by 0.84%. 

World Stock Market Index Asian Markets

The Asian market presented a mixed picture. Growing concerns about a trade war had the most impact on the Chinese market. Additionally, domestic variables impacted the Asian indexes as a whole. 

Let’s now have a look at how the major stock market index performed during the week.

Nifty 50

As corporate earnings growth slowed in the July-September quarter, the Indian market remained volatile. Analyst expectations that Nifty 50 companies would report lower single-digit earnings growth in FY25 impacted investor mood. 

On Friday, the index closed slightly lower by 0.11%. However, on a weekly basis, it was down by 2.35%. 

Nikkei 225

The prospects for Japanese businesses that export a lot to the United States were hampered by the possibility that President-elect Donald Trump’s new administration might increase tariffs, resulting in a volatile market condition. At the close on Friday, Nikkei 225 was slightly up by 0.28%. But on a week-on-week basis, it was down by 1.78%. 

Straits Times

Singapore’s primary stock market index, Straits Times, traded positively during the week. During Friday’s session, it was up by 0.17%, and on a week-on-week basis, it closed 1.90% higher. 

Hang Seng

Weakening Yea, persistent deflation-like conditions, and worries about potential US tariffs under the Trump administration continue to hurt the Chinese equity market. In Hong Kong, the benchmark Hang Seng Index traded flat on Friday, but on a week-on-week basis, it fell sharply by 7.29%. 

Taiwan Weighted

Mirroring the US market, Taiwan’s primary stock market index, the Taiwan Weighted Index, traded flat during Friday’s session. It was up by 0.12% at the end of Friday’s session. On a week-on-week basis, it closed 2.85% lower. 

KOSPI

Lingering uncertainties regarding the future direction of US interest rates and the US policies under the Trump administration continue to hurt the South Korean market. On Friday, KOSPI traded flat, and on a weekly basis, it was down by 5.85%. 

SET Composite

Following the global cues, Thai stocks continued to trade weak. On Friday, the index was down by 0.52%. And, on a weekly basis, the index lost 1.84%

Jakarta Composite

The Jakarta Composite index of the Indonesian stock market fell 0.74% on Friday, and the index’s weekly cumulative loss was 1.14%.

Shanghai Composite

The economy’s mixed outlook caused volatility in the Chinese market. China’s consumer price index increased by less than the forecast 0.3% in October compared to 0.4% in September. The producer price index fell 2.9% year over year, above analysts’ forecasted 2.5% decline and speeding up from September’s 2.8% decline, accelerating the deflation rate at the factory gate.

On Friday, the Shanghai Composite was down by 1.47%; on a week-on-week basis, the index was down by 4.03%. 

Wrapping Up

Global markets are expected to remain volatile as multiple uncertainties persist, including U.S. policy directions, rate hikes, and economic indicators from key regions. While investor sentiment is cautious, market performance will be closely tied to policy developments and economic data releases in the coming weeks. Traders should stay vigilant and diversified as the balance of risk and opportunity shifts.

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 & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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A Bite of Innovation: The $11.3 billion Swiggy Story

A Bite of Innovation: The $11.3 billion Swiggy Story

Do you need an ingredient delivered in 10 minutes? No problem. Do you urgently need groceries or a package to send across town? Easy. Everyday inconveniences no longer need to disrupt your plans or add stress. Thanks to this must-have service that’s transforming the way we live.

This $11.3 billion company has redefined convenience and efficiency, seamlessly meeting needs at the tap of a button. Let’s discover how this brand disrupted the market and became a household name, delivering more than just goods—it delivers peace of mind.

Want to know more? Read on

Story of Swiggy Storytelling 00 02

A Shared Vision at BITS Pilani

It began with with Harsha Majety and Nandan Reddy, meeting as students at BITS Pilani.

Harsha, a senior passionate about photography and travel, became close friends with Nandan through shared activities on campus.

The two were drawn to the world of entrepreneurship. After a memorable backpacking trip across Europe, Harsha returned to India ready to explore new ventures.

Together, Harsha & Nandan brainstormed ideas in e-commerce, setting up their first startup, Bundl Technologies.

Story of Swiggy Storytelling 00 03

A Valuable First Attempt

Bundl was their initial foray into the startup world. It is a logistics service aimed at helping small and medium businesses handle shipping.

However, the market proved challenging, as Bundl’s logistics service couldn’t gain enough traction.

So, Harsha and Nandan decided to shut down Bundl and return to the drawing board, a choice that laid the groundwork for their next, game-changing idea.

Story of Swiggy Storytelling 00 04

A Niche in Food Delivery

While working on Bundl, Harsha and Nandan observed the demand for reliable, quick delivery services.

They realised many restaurants couldn’t meet customer expectations for speed or affordability.

Existing food delivery options required high order minimums, inconsistent service quality, or took too long to deliver.

They had faced delivery issues whenever they ordered in. That’s how the idea of their next venture was born. It named Swiggy because it was short and catchy.

Story of Swiggy Storytelling 00 05

Bringing the Idea to Life

Harsha and Nandan realized that a strong tech foundation was essential for Swiggy’s success.

Through a mutual friend, they met Rahul Jaimini, a skilled engineer at Myntra, who shared their excitement.

Rahul joined as Swiggy’s third co-founder, and the team was ready to tackle the food delivery landscape.

Story of Swiggy Storytelling 00 06

The Koramangala Chapter

Swiggy began in 2014 with a small team operating out of Koramangala, Bengaluru. Initially, the team focussed on a select group of 15-20 good restaurants without delivery services.

They distributed pamphlets near popular food joints and even took it upon themselves to deliver food orders, capturing photos of dishes to list on the platform initially.

At first, Swiggy was just a website with no mobile app, and traction was low. However, word-of-mouth referrals and a growing base of repeat customers gradually fueled Swiggy’s growth.

Restaurants started recognizing the potential of partnering with Swiggy. The team actively engaged with restaurant owners educating them about the benefits of online food delivery to encourage adoption.

Story of Swiggy Storytelling 00 07

Setting a New Standard

Swiggy’s logistics-focused approach set it apart. While other services took an hour to deliver, Swiggy committed to a 30-minute delivery time.

The team only partnered with high-quality restaurants that lacked delivery services, allowing Swiggy to be a reliable partner in quickly delivering great food to customers.

This strategy resonated with customers and gave Swiggy a strong foothold in the local food scene.

Story of Swiggy Storytelling 00 08

And Overcoming Challenges

The growth was encouraging, but it also brought its challenges. By April 2015, Swiggy was still operating as a small team with only a few delivery partners.

In the early days, the founders wore multiple hats—Nandan handled sales and customer support, Harsha made deliveries himself, and Rahul oversaw tech.

They needed help managing the budget to build an HR team, but they persevered, refining their model and focusing on customer satisfaction.

Story of Swiggy Storytelling 00 09

From the Struggles of Bundl

The lessons from Bundl helped Swiggy’s founders avoid the pitfalls they had experienced in their first venture.

They knew having a strong technical team and a clear focus on market fit was important.

This time, their persistence paid off, as the service started gaining traction with customers and restaurant partners who saw Swiggy as a valuable source of orders.

Story of Swiggy Storytelling 00 10

Boost Led to Swift Growth

Swiggy began with a $2 million seed investment from Accel and SAIF Partners. This early funding allowed Swiggy to lay the groundwork in technology and operations, leading to swift growth.

Over the years, the company has received $3.8 billion in funding over 19 rounds, cementing its status as one of India’s major food delivery platforms.

Story of Swiggy Storytelling 00 11

Expanding Beyond Koramangala

With growing popularity, Swiggy expanded to other parts of Bengaluru, and across India. By dec 2015, Swiggy had expanded reach, its team, and developed a mobile app to improve accessibility.

In its first three years, Swiggy expanded to seven cities. Key members, including founders Sriharsha Majety, Nandan Reddy, and Phani Kishan, envisioned transforming Swiggy into a comprehensive urban convenience platform targeting a 500 million-user base.

As of April 2024, Swiggy had partnered with over 150,000 restaurants and employed over 260,000 delivery executives, with a presence spanning 500+ cities across India.

The company’s valuation now stands at an impressive $12.7 billion, underscoring its position as a leader in the Indian food delivery landscape.

Story of Swiggy Storytelling 00 12

Digital Marketing Model of Swiggy

Swiggy’s digital marketing strategy focused on capturing the 18-35 age demographic, composed mainly of students and working professionals who have easy smartphone access and rely on quick meals.

Through targeted online campaigns, Swiggy established a strong digital presence that helped it connect with this audience effectively.

The company used digital marketing techniques, including SEO, social media, and email marketing, creating a successful model that stood out for its creative and relatable campaigns.

Story of Swiggy Storytelling 00 13

Through the Pandemic

During the pandemic, Swiggy innovated with Swiggy Genie, a pick-up and drop-off service, to help users send and receive items across town.

Later, Swiggy introduced Instamart, a quick-commerce grocery service to meet the surge in demand for essentials, contactless delivery, regular sanitization to ensure customer and delivery personnel safety.

Swiggy Access, a cloud kitchen let restaurant partners reach more customers without physical storefronts, adding user convenience and growth opportunities for partners.

Swiggy introduced EcoSaver, a program focused on sustainable practices. It reduced fuel consumption and carbon emissions by grouping or scheduling deliveries, aligning its model with eco-friendly practices, and improving delivery efficiency.

Story of Swiggy Storytelling 00 14

Rivals and Market Shifts

With intense competition in food delivery and quick commerce, food delivery giant contended with Zomato and new players like Zepto.

Despite leading in funding rounds, Swiggy faced valuation shifts and disruptions typical of fast-evolving digital businesses.

Story of Swiggy Storytelling 00 15

Missteps and Adjustments

The food delivery giant faced challenges expanding into tier-II and tier-III cities. Unlike its initial in-house delivery model, it tried franchising to match Zomato’s reach.

However, quality issues led to the eventual dismantling of the franchisee model, letting Zomato strengthen its position during the pandemic.

It appointed Rohit Kapoor, former India CEO of Oyo, focused on cost management, restructuring, and scaling operations beyond the top 30 cities with executives regularly visiting tier III and IV cities to boost local engagement, that let the company double its advertising revenue.

Story of Swiggy Storytelling 00 16

Acquisitions Adding To Growth

Amidst restructuring, Swiggy made strategic acquisitions, including Lynk Logistics for FMCG distribution and a stake in mobility platform Rapido.

The acquisition of Dineout strengthened food delivery giant’s move into table reservations, aiding Swiggy’s ongoing efforts to diversify and solidify its market position.

Story of Swiggy Storytelling 00 17

Swiggy IPO

The food delivery giant geared up for its IPO with momentum. For FY24, it reported a solid 36% increase in operating revenue to INR 11,247 crore, coupled with a significant 44% reduction in losses to INR 2,350 crore.

Through the year’s first three quarters, the company generated INR 5,476 crore, though losses stood at INR 1,600 crore.

Swiggy today is listed on the stock exchanges at a premium from its subscription price.

Story of Swiggy Storytelling 00 18 2

A Bold Future

As the food delivery giant enters this pivotal chapter, it aims for a valuation near $15 billion in its stock market debut, seeking to raise $1–1.2 billion.

A recent adjustment has set its valuation between $12.5–13.5 billion, positioning it for one of the year’s largest IPOs.

This step is more than just a listing; it signals the company’s commitment to growth and innovation, strengthening shareholder value, and reinforcing its leadership in food and rapid commerce.

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$130 Billion Sports Economy by 2030: India Will Create 10.5 Million Jobs Per Deloitte-Google  Report

$130 Billion Sports Economy by 2030: India Will Create 10.5 Million Jobs Per Deloitte-Google  Report

India’s sports market is set for unprecedented growth, with the industry expected to reach $130 billion by 2030. This projection, revealed in the Deloitte-Google Think Sports report, underscores India’s evolving sports ecosystem, powered by rising sports viewership, digital innovations, and increased investments across multiple sports segments. 

The report emphasizes the potential for the sports sector to create 10.5 million jobs while contributing $21 billion in indirect tax revenue, showcasing its significant role in driving economic growth and employment opportunities. Source: Times of India

This article analyzes the report’s findings, breaking down the factors driving this growth and what this means for India’s sports industry.

A Rapidly Growing Sports Economy

The Deloitte-Google report highlights that India’s sports industry has experienced significant growth over the past decade. Major sporting leagues, endorsements, and viewership have grown substantially, with cricket, India’s most popular sport, leading the charge. 

However, non-cricket sports like football, kabaddi, and badminton are also gaining traction. Increased participation in diverse sports and a growing digital landscape further amplify the market.

Since 2017-18, India’s sporting goods exports have increased at an annual growth rate of 11%. Major exports include athletic and gymnastics equipment, cricket and football gear, nets, exercise equipment, boxing items, toys, games, protective gear, sportswear, carrom boards, and hammocks.

AD 4nXfkgA5NAJp5JvMkurtigKyUQTPhcv5eoiVcF2Ayna3qXFiMA kLxI50Tlih61EOPGNEn32p5SOeY5 j3gQOTxafVp Q9Ucrq59QA7KbhcLPlWK2nHfc4qKUTihPtfo GyLuh1et?key=dmt4gq4EcQku oPCf3Ykopeu
Source: IBEF

India’s sports fanbase has expanded to 655 million people, with Gen Z accounting for 43%, fueling a growing demand for interactive and personalized experiences. The Deloitte-Google Think Sports report highlights how sports emerge as a significant driver of economic growth and a force for social change. This includes empowering youth and creating employment opportunities, demonstrating the industry’s broader impact beyond entertainment. Source: Business Today

Key Highlights of the Report

Expanding Interest Beyond Cricket

  • Cricket Dominates, but Other Sports Are Gaining Ground: While cricket is India’s most-followed sport, the report shows a rising interest in sports like kabaddi and football, which have 120 million and 85 million fans, respectively.
  • Multi-Sport Fandom on the Rise: Around 90% of Indian sports fans follow multiple sports, creating broader investment opportunities across sports sectors.

Shift to Digital Sports Consumption

  • Gen Z’s Digital Engagement: 93% of Gen Z fans access sports content online, with a growing preference for on-demand, non-live content over live events. They spend 20% more time on it.
  • Broadened Fan Demographic: Fans are increasingly diverse, with 36% being women and 59% residing in rural areas.
  • Growth in Sports Apparel: Interest in fitness has fueled demand for sports apparel, which is projected to double to $58 billion by 2030. Source: Business Today

Technology-Driven Transformation in Sports

  • Advancements in Sports Tech: The sports technology market is anticipated to hit $1 billion, propelled by innovations enhancing fan engagement and operational efficiency.
  • AI in Talent Development: AI tools are already revolutionizing scouting and training; meanwhile, e-learning platforms broaden access to sports resources nationwide.
  • Opportunities in AI-Driven Personalization: AI offers a pathway to immersive, personalized experiences and greater digital accessibility for fans.

Sports as a Catalyst for Nation-Building

  • Socioeconomic Impact: Experts believe that sports in India have the potential to unify communities and build a resilient, inclusive society, aided by AI, cloud technology, and grassroots initiatives.
  • Public-Private Partnerships for Progress: They emphasize that to harness this potential, challenges in access, infrastructure, and equity must be addressed, recommending public-private partnerships to advance India’s sports ecosystem.

A Pivotal Moment for Sports in India

  • Path to Unlocking Sports Value: Industry experts underscore India’s sports market is transformative, marked by multi-sport fandom and Gen Z’s engagement.
  • Innovation and Engagement Opportunities: These trends offer companies unique chances to connect with India’s large, passionate fanbase, setting the stage for further innovation and engagement.

Drivers of Growth: Key Factors Influencing the Market

  1. Rise of Digital Platforms and OTT Media Digital streaming services have transformed sports consumption in India, allowing fans to access live matches and behind-the-scenes content on the go. OTT platforms like Disney+ Hotstar and JioCinema provide a personalized and immersive sports experience, reaching new audiences and further monetizing sports content through ads and subscriptions.

Sports Media Spends

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Source: Sports Star

  1. Increased Sponsorship and Brand Investments With major corporations and brands investing heavily in sponsorships, the visibility of sports in India has expanded significantly. Sponsorships from national and international brands drive the growth of sports beyond cricket, helping leagues like the Indian Super League (ISL) in football and the Pro Kabaddi League reach wider audiences.
  2. Sports Infrastructure Development India has ramped up its investment in sports infrastructure, building modern stadiums and facilities to host national and international events. The government’s “Khelo India” initiative is furthering these efforts, aiming to promote sports at the grassroots level and develop a robust sports ecosystem across the country.
  3. Youth Engagement and Grassroots Initiatives India’s youth, which makes up a significant portion of its population, are increasingly engaging in sports, not only as viewers but also as participants. Government programs like Khelo India and private youth sports academies foster talent and promote sports culture. With more youngsters entering the sports scene, the future of India’s athletic talent pool looks promising.
  4. Technological advancements in sports management technology are becoming integral to India’s sports industry. Technology enables teams to improve efficiency, from data analytics to player performance tracking, while fans enjoy enhanced experiences. Innovations like AR/VR experiences in live sports and AI-driven analysis are drawing more engagement and investment in sports technology.

Emerging Opportunities in the Indian Sports Economy

  • Media Rights and Broadcasting Opportunities The demand for sports content creates lucrative opportunities for broadcasters. Media rights for major leagues, especially cricket tournaments like the Indian Premier League (IPL), attract multi-billion-dollar deals, contributing significantly to the sports economy. As viewership grows, media rights will remain a major revenue source.
  • Though relatively new in India, merchandising and licensing are poised for growth as fans show increased interest in sports merchandise like jerseys and gear. This trend is not limited to cricket but extends to other sports, with Indian football and kabaddi leagues starting to explore merchandise as a revenue stream.
  • Rise of the Fitness and Wellness Industry The shift toward health and wellness, particularly post-pandemic, has fostered a greater interest in physical fitness and sports. Gyms, fitness programs, and sports academies are tapping into this trend, leading to a complementary rise in related sports industries. This focus on wellness also encourages more individuals to participate in sports as part of a healthier lifestyle.

The Role of E-sports and Fantasy Sports

The surge in e-sports and fantasy sports platforms, such as Dream11 and MPL, has created a new frontier within the sports market. These platforms are highly popular among younger audiences, and with investments pouring in, they are poised to become a substantial part of the overall sports economy. E-sports tournaments and events are becoming regular fixtures, supported by significant sponsorships and partnerships.

  • Fantasy Sports: Platforms enable fans to create fantasy teams based on real matches, boosting fan engagement and attracting millions of users.
  • E-sports Growth: Competitive gaming events draw sponsorships and create new opportunities for brand endorsements.

Challenges Facing the Indian Sports Economy

While growth is promising, the sports market in India faces certain challenges:

  1. Infrastructure Gaps – Despite advancements, the quality of sports infrastructure outside urban areas remains inadequate. Investments are needed to bring facilities to smaller towns and rural areas.
  2. Limited Sports Culture Beyond Cricket – While cricket dominates the sports landscape, there is still limited viewership and engagement for other sports, though this is changing slowly.
  3. Talent Development and Retention—Talent development across sports disciplines needs to be prioritized for sustained growth. Retaining trained athletes who can excel nationally and internationally remains a challenge.

What’s Next for India’s Sports Industry?

The Deloitte-Google report concludes that, with sustained investment, India could become one of the world’s top sports markets by 2030. International events like the Olympics and Commonwealth Games inspire more Indians to pursue sports professionally. 

India’s sports market is on the cusp of transformative growth, with an expanding digital ecosystem, increasing sponsorship investments, and a rising sports-conscious population. If current trends continue, India’s sports industry will contribute substantially to the economy and cultivate a robust sports culture across the 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.

FAQs

  1. What is the key finding of the Deloitte-Google report on India’s sports economy?

    The Deloitte-Google report projects India’s sports market to reach $130 billion by 2030, driven by a surge in multi-sport fandom, digital transformation, and government investment. This growth will create 10.5 million jobs and contribute significantly to the economy.

  2. Which sports are driving the growth of India’s sports economy?

    While cricket remains dominant, the report highlights the growing popularity of sports like football, kabaddi, and indigenous games. Gen Z’s increasing interest in diverse sports and preference for digital consumption are key drivers of this growth.

  3. How is digital technology impacting India’s sports industry?

    Digital platforms are revolutionizing sports consumption in India. 93% of Gen Z fans consume sports content digitally, driving demand for personalized experiences, interactive content, and AI-powered technologies. This digital shift is creating new opportunities for businesses and fans alike.

  4. What are the economic benefits of India’s growing sports industry?

    India’s sports industry is poised to become a major economic driver, generating $21 billion in indirect tax revenue and creating 10.5 million jobs by 2030. Fueled by a growing fitness-conscious population, the sports goods and apparel market is expected to double in size.

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fii

FII Selling or Weak Q2 Results: What’s Driving Market Anxiety?

Have the recent market drops caught your attention? Over the past six trading sessions, investors have faced turbulence, marked by significant declines in both the Sensex and Nifty indices. Down by approximately 10% from their recent highs, the Sensex is nearly 8,000 points below its peak, while the Nifty hovers around the critical 23,500 support level.

Over ₹23 lakh crore of investor wealth has vanished in just a few days, leaving many to question: Is it the selling of foreign institutional investors (FII), weak Q2 earnings, or both that are driving the market stress? Let’s break down the primary concerns and the levels to watch out for.

The FII Sell-off: Is it a Game-Changer?

One key factor behind the recent dip is the substantial FII outflow throughout this year. For November alone, FIIs have already pulled out over ₹29,533.2 crore. Their investments have often fueled market rallies and economic growth. However, recent months have witnessed a significant shift in their behavior. A substantial outflow of funds has raised concerns among investors. A few experts note that similar episodes occurred in 2009 and again in 2020 during the early stages of the pandemic. 

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Source: MoneyControl

Why are FIIs Selling?

Several factors are contributing to this FII exodus:

  • Global Economic Trends: The global economic landscape is undergoing significant changes. Rising interest rates in the US have made dollar-denominated assets more attractive, prompting FIIs to shift their focus away from emerging markets like India.
  • Geopolitical Tensions: Geopolitical uncertainties, particularly those related to the ongoing Russia-Ukraine conflict, have increased risk aversion among global investors.
  • Domestic Factors: While India’s economic fundamentals remain solid and short-term factors like high inflation and rising interest rates have dampened investor sentiment.

The Impact on Indian Markets

The FII selling has undoubtedly put pressure on Indian markets. However, experts believe that the impact may be limited due to several factors:

  • Strong Domestic Institutional Investor (DII) Participation: DIIs have become a significant force in the Indian market, providing much-needed support. Consistent inflows from Systematic Investment Plans (SIPs) have further strengthened the domestic investor base.
  • Resilient Indian Economy: India’s robust economic growth and supportive government policy environment have positioned the country as a long-term growth story.
  • Valuation Corrections: The recent market correction has led to attractive valuations for many quality stocks. This could present a buying opportunity for long-term investors.

Q2 Earnings Worries: A Temporary Setback?

The recent Q2 earnings season has brought mixed results, adding to the prevailing market uncertainty. While some companies delivered impressive performances, others fell short of expectations. This divergence in earnings has led to a reevaluation of stock valuations, with many stocks experiencing a decline in their price-to-earnings (P/E) multiples.

Why the Dip?

Several factors have contributed to the muted Q2 earnings:

  • Economic Headwinds: Global economic slowdown, rising interest rates, and geopolitical tensions have impacted corporate earnings.
  • Supply Chain Disruptions: Ongoing supply chain bottlenecks and inflationary pressures have affected production costs and margins.
  • Muted Consumer Demand: In certain sectors, particularly consumer discretionary, demand has been tepid, impacting sales and revenue growth.

A Look Ahead

Despite the short-term challenges, experts remain optimistic about the Indian economy’s long-term growth prospects. They believe the current earnings slowdown is temporary and that a stronger performance is expected in the second half of the fiscal year.

Key factors driving this optimism include:

  • Economic Recovery: As global economic conditions improve and supply chain disruptions ease, Indian companies will likely benefit from increased demand and improved margins.
  • Government Reforms: The government’s focus on infrastructure development, digital initiatives, and ease of doing business will continue to support economic growth.
  • Strong Domestic Demand: India’s large domestic market and growing middle class provide a strong foundation for long-term growth.

Key Nifty Levels to Watch

As the markets hover near crucial levels, the question becomes: where is Nifty likely to head next? While several factors play into this, technical levels are critical to assessing potential market moves. Experts identify 23,200 as a key support level for Nifty, signaling that if Nifty breaches this mark, it could lead to a steeper correction. This level acts as a psychological threshold, as valuations might look more appealing if prices drop further.

On the upside, market recovery towards recent all-time highs would likely be a positive outcome. However, experts suggest this may be limited without a strong improvement in earnings and global conditions. If earnings disappoint in the next few quarters or FIIs continue to withdraw significantly, it could put further pressure on the downside.
Source: The Financial Express

The Bigger Picture: Navigating Uncertainty

In the current landscape, investors remain cautious as they grapple with the combined weight of FII selling and mixed earnings performance. With FIIs pulling out and Q2 earnings failing to meet expectations, market sentiment could continue to be fragile in the near term. However, the resilience shown by domestic investors and the longer-term potential for earnings recovery offers some reassurance.

The overall outlook hinges on a balance between these opposing forces. For now, keeping a close eye on Nifty’s support at 23,200 and monitoring global FII trends and upcoming earnings announcements will be crucial for understanding the broader market direction.

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.

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India's Real Estate Set to Soar to $5.8 Trillion by 2047:  Mid-Sized Developers Make a Comeback

India’s Real Estate Set to Soar to $5.8 Trillion by 2047:  Mid-Sized Developers Make a Comeback

The real estate sector has witnessed a significant surge in recent years, driven by increased demand, favorable policies, and changing buyer preferences. While larger developers have long dominated the market, mid-sized developers are now making a notable comeback, leveraging unique strategies and capturing significant market share. 

 For the third quarter, residential sales exceeded 74,000 units in Q2 2024. According to a report by Credai, Colliers, and Liases Foras, unsold inventory saw a quarterly decline in seven of the eight major metropolitan regions. While the Mumbai Metropolitan Region remains an exception, overall unsold inventory levels across various cities have shown a downward trend.

India’s real estate market is expected to grow significantly by 2040, from Rs. 12,000 crore (US$1.72 billion) in 2019 to Rs. 65,000 crore (US$9.30 billion). The market size is projected to reach US$1 trillion by 2030, up from US$200 billion in 2021, with an anticipated 13% contribution to India’s GDP by 2025. 

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Source: IBEF

The retail, hospitality, and commercial real estate sectors are also growing considerably, meeting the nation’s infrastructure needs. Looking further ahead, India’s real estate sector is forecasted to expand to US$ 5.8 trillion by 2047, increasing its GDP contribution from 7.3% to 15.5%.

The Current State of Real Estate: A Boom in Demand

The real estate sector has rebounded strongly, particularly after a challenging period during the pandemic. Key factors driving this growth include:

  • Increased Urbanization: More people are moving to urban centers, creating demand for residential properties.
  • Demand in Tier-II and Tier-III Cities: Rising property prices in metro cities have led people to explore homes in smaller towns where mid-sized developers flourish.
  • Supportive Government Policies: Affordable housing initiatives and easier access to finance have spurred growth in housing demand.

Why Mid-Sized Developers Are Making a Comeback

The current revival in real estate is creating a more dynamic environment, encouraging competition and innovation in residential projects. Multiple factors have contributed to the comeback of mid-sized developers.

Regulatory Reforms and Market Transformation

  • Key Regulatory Changes: After 2017, significant reforms such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) reshaped India’s real estate sector.
  • Impact on Small and Mid-Sized Developers: These reforms forced small and mid-sized developers to adapt quickly or exit the market.
  • Dominance of Large Developers: Big players like Prestige Group, Godrej Properties, Puravankara, Hiranandani, and Lodha Group capitalized on their financial resources and strong brand reputation to thrive in this evolving environment.

Mid-Sized Firms Thriving Amid Rising Demand

  • Capitalizing on Metro Cities: Mid-sized developers are leveraging rising demand for residential properties in metro cities, identifying unique growth opportunities due to their local expertise and flexibility.
  • Focus on High-Quality, Specialized Developments: These companies focus on specialized projects that appeal to buyers seeking reliable alternatives to large brands.
  • Surge in Demand: There has been significant growth in cities such as Bengaluru, Pune, Ahmedabad, the National Capital Region (NCR), Chennai, and Hyderabad, where affordable and premium housing segments are seeing strong demand.

Regional Adaptability and Competitive Edge

  • Emphasizing Quality Over Scale: Mid-sized developers differentiate themselves by addressing regional demands and prioritizing quality over sheer scale.
  • Successful Companies: Developers like Shriram Properties, Century Group, Merlin, Kalyani, and Concorde Group have seen success in their residential projects since the market’s revival.
  • Appealing to Today’s Buyers: Buyers seek value, transparency, and a personal touch—qualities where mid-sized firms excel.
  • Clear Regulations: With clear regulations, mid-sized firms are better positioned to meet consumer expectations and operate more effectively.

Market Conditions Favoring Mid-Sized Developers

  • Ideal Conditions for Success: The current market is particularly favorable for mid-sized companies due to their ability to innovate and adapt quickly.
  • Focus on Smart Products and Transparent Pricing: Mid-sized developers focus on building smart products, ensuring transparency, and offering competitive pricing to meet market demands.
  • Coexisting with Larger Players: These firms are finding ways to coexist with larger developers and, in some cases, offer valuable options to underserved buyer segments.
  • Strong Launch Sales: According to industry experts, inventory for mid-sized projects is selling at launch stages with sales volumes ranging from 30% to 40%, similar to top-tier developers.

Key Advantages of Mid-Sized Developers

  • Adaptability to Local Markets: Mid-sized developers are generally more flexible, enabling them to tailor their projects to local buyers’ specific needs and preferences.
  • Quick Decision-Making: With fewer bureaucratic hurdles, mid-sized firms can make swift decisions, helping them stay in tune with changing market conditions.
  • Focus on Affordable Housing: While large developers often target premium segments, mid-sized developers focus on affordable and mid-range housing, catering to a broader and more diverse buyer base.

Key Strategies Employed by Mid-Sized Developers

Mid-sized developers employ innovative strategies to drive growth and compete effectively in a dynamic market.

  • Affordable and Compact Projects: Many mid-sized developers focus on compact projects with a strong emphasis on affordability. These projects often have lower overhead costs, allowing developers to pass on savings to buyers.
  • Collaborations and Partnerships: Partnering with financial institutions and suppliers has allowed these developers to secure better financing options, improving project cash flow.
  • Targeting Emerging Markets: As property prices continue to soar in metro areas, mid-sized developers have focused on emerging markets, particularly in Tier-II and Tier-III cities, where demand is high and competition is less intense.
  • Customer-Centric Designs: Mid-sized developers design projects that resonate with local tastes and preferences by engaging in detailed market research. Community-focused features, green spaces, and essential amenities cater directly to local buyers’ needs.

Technology and Digital Tools Empowering Mid-Sized Developers

Adopting digital tools has empowered mid-sized developers to scale up their operations and improve customer engagement.

  • Digital Marketing and Virtual Tours: With potential buyers now more digitally savvy, developers offer virtual tours, making it easier for customers to view properties from anywhere.
  • CRM Systems for Enhanced Customer Experience: Modern CRM systems help developers keep track of buyer preferences, follow up on leads, and streamline the sales process.
  • Construction Management Software: Construction management technology helps mid-sized developers plan projects more efficiently, reducing waste and optimizing resources.

Challenges Faced by Mid-Sized Developers

Despite the growth potential, mid-sized developers face unique challenges that impact their ability to scale and compete.

  • Regulatory Compliance: The introduction of the Real Estate Regulatory Authority (RERA) Act has made compliance requirements more stringent, increasing project costs for smaller developers.
  • Limited Access to Financing: While access to financing has improved, mid-sized developers still face challenges securing funding compared to their larger counterparts.
  • Competition from Larger Players: Larger developers with established brands and access to vast resources often draw customers away from mid-sized firms, particularly in high-demand areas.
  • Supply Chain Issues and Cost Fluctuations: Rising construction materials costs and supply chain disruptions can significantly impact profitability, particularly for developers working on smaller budgets.

Success Stories of Mid-Sized Developers

Numerous mid-sized developers have navigated these challenges to emerge as industry leaders. Here are some examples of strategies and factors that contributed to their success:

  • Targeting the Right Market: Developers who identified growth potential in specific regions, such as the outskirts of major cities or high-growth Tier-II markets, have successfully captured untapped demand.
  • Efficient Project Management: Companies investing in project management and resource optimization have completed projects faster and with higher profit margins.
  • Building Customer Trust: Developers who prioritize transparency and customer satisfaction have gained strong reputations, which help them attract and retain clients.

The Roadmap for Mid-Sized Developers

The future appears bright for mid-sized developers as they adapt and grow in response to evolving market dynamics.

  • Opportunities in Suburban and Peripheral Areas: As metro property prices remain high, suburban and peripheral areas will likely see increased demand. Mid-sized developers are well-placed to cater to these regions, offering affordable and community-centric developments.
  • Expansion into New Niches: There is a growing demand for eco-friendly and sustainable housing options. Mid-sized developers who can incorporate green building practices may appeal to environmentally conscious buyers.
  • Further Digitization: As technology becomes increasingly central to real estate transactions, developers who embrace digital marketing, virtual site visits, and digital documentation processes will likely gain a competitive edge.
  • Increased Focus on Quality and Customer Relations: Mid-sized developers will benefit from focusing on quality, transparency, and solid post-sale support, which will help them build a loyal customer base.

Conclusion

Mid-sized developers are proving their resilience and innovation in a booming real estate market. By adapting quickly, focusing on affordable housing, and utilizing digital tools, they successfully compete and contribute to the sector’s overall growth. 

While challenges remain, these developers are well-positioned to play an essential role in the future of the real estate landscape. For buyers and investors, mid-sized developers represent a reliable, community-focused, and often cost-effective option, underscoring their value in a high-demand market.

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

  1. Why is India’s Real Estate Sector Poised for Growth?

    India’s real estate sector is poised for significant growth due to several factors. The government’s focus on affordable housing initiatives, infrastructure development, and economic reforms has created a favorable environment for the sector. 

    Additionally, rising urbanization, increasing disposable incomes, and a growing middle class drive demand for housing and commercial real estate. These factors, coupled with the increasing popularity of real estate investment trusts (REITs), are expected to propel the sector’s growth in the coming years. middle-class.

  2. How Are Mid-Sized Developers Contributing to the Sector’s Growth?

    Mid-sized developers are crucial to the growth of India’s real estate sector. They often focus on niche segments, such as affordable housing and commercial projects in tier-II and tier-III cities. These developers can adapt quickly to changing market conditions. 

    They are also increasingly adopting technology to improve efficiency and reduce costs. As a result, they are becoming more competitive and are contributing significantly to the sector’s overall growth.

  3. What Challenges Does the Real Estate Sector Face?

    Despite the positive outlook, the Indian real estate sector still faces several challenges. These include land acquisition issues, regulatory hurdles, and financing constraints. 

    Additionally, the sector is susceptible to economic cycles and global events. However, the government’s proactive measures, such as the Real Estate (Regulation and Development) Act (RERA), are helping to address some of these challenges and improve transparency and accountability in the sector.

  4. How Can Investors Benefit from the Real Estate Sector’s Growth?

    Investors can benefit from the real estate sector’s growth through various avenues. Some options include investing directly in real estate, through REITs, or by partnering with developers. 

    However, conducting thorough research and due diligence before investing is crucial. Consulting with real estate experts can help investors make informed decisions. Additionally, staying updated on government policies and market trends is essential to maximize returns and mitigate risks.

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Sensex Dropped 984 Points, Nifty Slid Under 23,600 Yesterday—4 Factors Impacting the Markets

Sensex Dropped 984 Points, Nifty Slid Under 23,600 Yesterday—4 Factors Impacting the Markets

Are you wondering why the Indian stock market has been facing such turbulence? On Wednesday, November 13, the Sensex dropped 984.23 points, settling at 77,690.95, while the Nifty ended 324.4 points lower at 23,559.05. This marked the fifth consecutive session of losses.

Both indices are over 10% lower than their record highs, last seen in September. They have shed almost 4% of their value in just these five sessions.

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Source: NSE

But what’s driving this significant downturn? Let’s examine the factors that have pushed the market lower, examining the challenges both domestically and globally.

Rising Dollar Index

Another factor impacting the market is the US dollar index, which has surged by 1.8% this month, hitting 105.98—the highest level since July. This rise in the dollar puts pressure on emerging market currencies, including the Indian rupee, as it reduces their relative value.

The strengthened dollar results from several geopolitical and economic developments, including Donald Trump’s victory in the U.S. election. The market is responding to expectations of tighter U.S. policies and tariffs that could influence global trade.

According to Nomura India, the anticipation of broad-based tariffs under Trump’s administration will likely increase U.S. inflation. This scenario could slow down the Fed’s rate cuts in the future, making U.S. assets more attractive to investors. Source: Livemint

Weakening Rupee Amid Persistent FPI Outflows

One key factor is the rupee’s weakening against the US dollar. On Wednesday, the rupee dipped by 1 paisa, hitting a record low of 84.40 in early trading. Persistent foreign portfolio investor (FPI) outflows continue to weigh on the currency, reflecting a broader shift in foreign investments. 

In November alone, FPIs sold off ₹23,911 crore worth of Indian equities, adding to October’s significant outflows of ₹1.14 lakh crore. Amid concerns about valuation and slower earnings growth in India, FPIs seek out markets with higher returns, including China, which recently introduced stimulus measures that make it more appealing to foreign investors.

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Source: NSE

High Volatility and Weak Global Trends

The market’s volatility has been heightened due to concerns about global market trends and the potential impact of the U.S. administration’s policies on emerging markets. Additionally, the U.S. 10-year bond yield spiked to 4.42%, signaling higher returns on U.S. assets, which could continue to divert funds from emerging markets like India.

High yields on U.S. bonds typically attract investors away from riskier assets, such as Indian stocks. This adds to the outflow of capital from Indian markets and depresses the value of both the rupee and domestic equities.

Concerns Over Delayed Rate Cuts

While many global central banks, including the U.S. Federal Reserve, have begun reducing interest rates, the Reserve Bank of India (RBI) has maintained a steady rate due to rising inflation concerns. October saw retail inflation increase by 6.21%, breaching the RBI’s tolerance level for the first time in over a year. Rising food prices, partly due to an extended monsoon season that damaged crops, have increased inflation.

Higher inflation makes it challenging for the RBI to lower rates, which is crucial for stimulating economic growth. This is particularly problematic for investors, as they anticipated a rate cut to encourage investment and consumption. Source: Livemint

Sectoral and Stock Performance

The impact of these challenges is evident across all major sectors. Every sectoral index ended in the red, with Nifty Realty seeing the sharpest fall, down 3.2%. Other sectors, including Nifty PSU Bank and Nifty Metal, also experienced significant losses of over 2%. 

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Source: NSE

Only four stocks in the Sensex pack were in the positive territory: Tata Motors, NTPC, Asian Paints, and Infosys. Meanwhile, M&M, Tata Steel, Adani Ports, and JSW Steel were among the top losers. The Nifty Midcap and Smallcap indices performed worse than the benchmarks, each declining by over 2.5%.

Broader Market Impact and Global Trends

The ripple effects of these developments aren’t just confined to Indian markets. Other Asian markets are also experiencing volatility as they brace for potential trade-related impacts from U.S. policies. On Wednesday, Hong Kong’s Hang Seng Index fell by 0.6% to a seven-week low. The CSI 300 index in China showed modest gains of 0.1%, while the Shanghai Composite was mostly flat. These trends underscore the broader challenges facing emerging markets.

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Source: NSE

In conclusion,

A mix of factors drives the Indian stock market’s recent slump: a strong dollar, rupee depreciation, continued foreign outflows, and concerns around interest rates and inflation. These challenges are compounded by weaker-than-expected corporate earnings and apprehension about U.S. policy changes under Donald Trump’s administration. As markets continue to navigate these complex conditions, investor sentiment remains cautious.

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.

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10 Years of Profit in Just 1 Year: Toyota's 66% Sales Boom and 4 Key Success Factors

10 Years of Profit in Just 1 Year: Toyota’s 66% Sales Boom and 4 Key Success Factors

Toyota Kirloskar Motor, Toyota’s Indian subsidiary, had a remarkable year, with profits reaching levels typically achieved over a decade. Sales rose by 66% year-on-year, and operating profit surged to nearly Rs. 6,000 crore—a 2.5-fold increase. 

This impressive growth highlights Toyota’s ability to align with market demand and optimize its operations, making FY24 a major milestone in the company’s journey in India. Here’s a look at the main factors driving this impressive financial achievement.

*All figures are in crores.

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Source: ET Prime

Rising Demand for SUVs and Premium Vehicles

In recent years, Indian consumer preferences have shifted significantly toward SUVs and premium vehicles, categories where Toyota has a strong presence. Models like the Toyota Fortuner, Innova Crysta, and new entrants in the hybrid segment have resonated well with Indian buyers seeking high-performance vehicles.

Key Points:

  • Toyota’s SUV models are popular for their durability and performance, aligning with consumer preferences.
  • Premium vehicles offer higher margins, contributing to a substantial increase in profits.
  • Introducing hybrid models has positioned Toyota as an innovative and environmentally conscious brand.

4 Key Factors Behind Toyota’s India Business Success

Established Models Drive Revenue

    Toyota’s classics, like the Innova and Fortuner, continue to drive substantial revenue, and regular price hikes push their ex-showroom prices higher. 

    Key points:

    • Increased Prices: Toyota’s popular models, the Innova and Fortuner, have seen substantial price increases since 2018, pushing their price ranges higher and boosting revenue.
    • Sales Growth: Domestic sales of the Innova and Fortuner grew by 32% and 56%, respectively, from FY18 to FY24, reflecting sustained demand.
    • Revenue Share: These two models make up around two-thirds of Toyota’s revenue in India, with the rest coming from rebadged Suzuki models.
    • Cost Efficiency: With costs rising slower than revenue, Toyota’s revenue from these models has fueled the company’s impressive profit growth.

    Source: ET Prime

      Expanding with Suzuki Partnerships

      Toyota’s collaboration with Suzuki has brought rebadged Suzuki models, including the Toyota Glanza, to the Indian market. These models have gained popularity and even outsold Toyota’s traditional models in recent months, enabling Toyota to reach a broader audience.

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      Source: ET Prime

      Key points:

      • Strategic Partnership with Suzuki: Toyota’s collaboration with Suzuki aligns with its “Make in India” goals, particularly in the high-volume and electrification segments. Together, they hold a 55% market share in India.
      • Expanded Product Line: Since rebadging the Maruti Suzuki Baleno as the Toyota Glanza in 2019, Toyota has introduced four rebadged models. These vehicles now outsell Toyota’s original models, making the brand more accessible and affordable.
      • Price Positioning and Profitability: Rebadged Suzuki models, priced between Rs.7 lakh and Rs.20 lakh, complement Toyota’s higher-end models. Toyota’s premium image lets it charge a slight premium on these models, enhancing profits for both brands.
      • Enhanced Dealer Offerings: The alliance broadened dealer offerings, allowing them to cater to a wider customer base, from compact cars to luxury models, helping retain lifelong customers within the Toyota lineup.
      • Attracting New Customer Demographics: The rebadged models appeal to younger buyers seeking affordable, sporty options with Toyota’s brand reputation. This has added new segments to Toyota’s customer base.
      • Rapid Product Expansion: Toyota quickly expanded its lineup without high R&D costs, capturing more market share and boosting sales momentum in India.

        Success with Hybrid Technology

        Hybrid technology is also a major factor in Toyota’s success. Models like the Urban Cruiser Hyryder, which feature hybrid solid options, cater to India’s growing interest in eco-friendly and fuel-efficient vehicles. 

        Key Points:

        • Shift in Consumer Perception: Toyota has successfully changed how Indian customers view hybrid vehicles, starting with the Innova petrol hybrid introduced in December 2022.
        • Strategic Product Transition: Toyota paused sales of the diesel Innova Crysta for three months, encouraging customers to consider the new hybrid Innova. As a result, hybrids, such as the Urban Cruiser Hyryder, gained substantial traction, making up 23% of Toyota’s FY25 sales.
        • Meeting Emission Goals and Customer Demand: Hybrids align with Toyota’s future emission strategy and prove that Indian customers are willing to pay for advanced technology. A hybrid Fortuner is also planned.
        • New Market Positioning: The Innova Hycross has shifted its perception from a fleet to a premium personal vehicle, allowing Toyota to capture new customers. This repositioning also increases profitability, as the top hybrid model commands a higher price than the diesel variant.

        Expanding Market Presence

        Toyota has increased its distribution network, especially in tier-III and tier-IV towns, as well as rural areas. This expanded footprint has boosted Toyota’s visibility and consumer trust. 

        Key Points:

        • Increased Distribution Network: Toyota has significantly expanded its showroom and service center presence in tier-III and tier-IV towns and rural areas, boosting consumer confidence in the brand.
        • Rural Market Strategy: While Toyota has targeted rural markets for some time, this focus has grown stronger in the last 2-3 years, supported by dealer feedback.
        • Promotional Discounts: During the festive season, the company offered discounts on its vehicles, including Rs.30,000 off on the Fortuner and Rs.100,000 off on certain Innova Crysta variants, marking a shift from its premium brand positioning.
        • Alliance Synergies Driving Growth: The Toyota-Suzuki partnership contributed to a 37% growth in Toyota’s dealership network from FY20 to FY24, with increased competition in the utility vehicle market helping both brands thrive. Source: ET Prime

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        Source: ET Prime

        Several other factors contributed to Toyota’s business success. Let’s examine these factors more closely.

        Benefiting from Government Policies and Incentives

        India has introduced various incentives to foster the adoption of cleaner and more sustainable vehicles. Toyota has adeptly positioned itself to benefit from these government initiatives, making it a preferred choice among environmentally conscious consumers.

        Key Points:

        • Government subsidies on hybrid vehicles reduce costs for consumers, driving sales.
        • Policies promoting cleaner technology favor Toyota’s hybrid models.
        • Regulatory support enhances Toyota’s profitability by reducing production and tax burdens.

        Lean and Cost-Effective Operations

        It well-known lean manufacturing system, the Toyota Production System (TPS), is vital in keeping operational costs low and efficiency high. By continuously refining its processes, Toyota maintains high-quality standards while controlling expenses, directly impacting profitability.

        Key Points:

        • TPS minimizes waste, optimizes inventory, and improves efficiency.
        • Cost-effective operations increase Toyota’s profit margins without compromising quality.
        • Streamlined production processes help Toyota meet rising demand quickly and efficiently.

        Strong Brand Equity and Customer Loyalty

        The company’s longstanding reputation for reliability and quality has built a loyal customer base in India. This brand equity ensures repeat customers and contributes to higher resale values for Toyota vehicles, reinforcing the brand’s desirability and driving more sales.

        Key Points:

        • Strong brand loyalty results in repeat purchases and customer referrals.
        • The reputation for durability enhances the long-term value of its vehicles.
        • High resale values and quality assurance attract new and loyal customers.

        Impact of Global Supply Chain Constraints on Competitors

        The company’s robust supply chain management has allowed it to mitigate challenges that affected other automakers. By maintaining close ties with suppliers and adhering to just-in-time (JIT) production, Toyota could deliver vehicles without major delays, capturing market share lost by competitors facing supply issues.

        Key Points:

        • Efficient supply chain management helped Toyota avoid production delays.
        • JIT production minimizes inventory costs and keeps operations agile.
        • Toyota capitalized on supply disruptions among competitors to capture additional market share.

        What Lies Ahead

        Toyota’s recent success demonstrates its adaptability and understanding of the Indian market. Looking forward, Toyota plans to continue investing in hybrid technology, expand its local manufacturing capacity, and introduce more models that cater to evolving Indian consumer preferences.

        Toyota’s Upcoming Product Launches in India

        • Fortuner’s Strong-Hybrid Powertrain (2025)—The Fortuner with a strong-hybrid powertrain is scheduled to be launched in early 2025.
        • 2026 Milestones for Toyota – The e-Vitara, a rebadged Suzuki product, is expected to arrive in India by early CY2026.
        • Other Expected Launches (2025-2026) include the Corolla Cross SUV, a smaller Fortuner hybrid, and the Landcruiser Prado. Source: ET Prime

        Toyota’s Research and Market Strategy

        • Extensive Pre-launch Research – Toyota conducts in-depth research to ensure new products are produced in manageable volumes and meet customer demands.
        • Challenges with Previous Launches – Despite this approach, past models like the Etios (2010) and Yaris (2018) struggled in the Indian market.
        • Reliance on Established Models—Toyota has relied on successful, older models like the Innova (2005) and Fortuner (2008).

        Conclusion

        Toyota’s ability to earn ten years’ worth of profits in just one year shows its smart strategy, flexibility with market trends, and focus on efficiency. By meeting India’s rising demand for SUVs and hybrids, improving local production, and building strong brand loyalty, Toyota has set a high standard for profitability in the Indian auto market. 

        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

        1. What were the primary reasons behind the company’s significant profit surge in India?

          Several factors contributed to Toyota’s exceptional performance in India in 2023. The strong demand for SUVs, particularly the Urban Cruiser Hyryder and the Fortuner, drove sales and revenue. Secondly, the company’s focus on hybrid technology aligned well with the growing preference for fuel-efficient and eco-friendly vehicles. 
          Toyota’s robust dealership network and efficient after-sales service also played a crucial role in customer satisfaction and retention.

        2. How did the hybrid strategy contribute to Toyota’s financial success in India?

          Toyota’s strategic emphasis on hybrid technology proved to be a game-changer in the Indian market. The company’s hybrid models, such as the Camry Hybrid and the Innova Hycross, offered a compelling proposition to customers seeking fuel efficiency and performance. By leveraging its global expertise in hybrid technology, Toyota established a strong foothold in the premium segment.

        3. What specific challenges did Toyota face in the Indian market, and how did they overcome them?

          Toyota encountered several challenges in the Indian market, including intense competition, fluctuating fuel prices, and evolving consumer preferences. The company adopted a focused approach to address these challenges, prioritizing quality, reliability, and customer satisfaction. 
          By investing in local manufacturing, strengthening its dealer network, and introducing innovative products, Toyota successfully navigated the complex Indian market.

        4. What key lessons can other automakers learn from Toyota’s success in India?

          Toyota’s success in India provides valuable insights for other automakers. Firstly, understanding and catering to the specific needs and preferences of Indian consumers is crucial. Investing in advanced technologies like hybridization and electrification can help differentiate brands and attract environmentally conscious customers. 
          Also, a strong emphasis on after-sales service and customer support is essential to build long-term relationships and brand loyalty.

        5. What are Toyota’s plans for the Indian market?

          Toyota remains committed to the Indian market and aims to strengthen its position further. The company plans to introduce more hybrid and electric vehicles, expand its product portfolio, and enhance its dealer network. By leveraging its global expertise and local insights, Toyota aims to continue its growth trajectory and deliver sustainable mobility solutions to Indian consumers.

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        Swiggy’s ₹9,000 Crore ESOP Boost: 500 Employees to Join Crorepati Club

        Swiggy’s ₹9,000 Crore ESOP Boost: 500 Employees to Join Crorepati Club

        Imagine being one of the 500 employees whose lives are about to change forever as Swiggy, India’s leading food delivery giant, launches its initial public offering (IPO). With a public listing set to unlock ₹9,000 crore worth of employee stock option plans (ESOPs), Swiggy is poised to propel these employees into the ‘crorepati’ club, creating one of the largest wealth generation events in India’s startup ecosystem.

        With a large ESOP pool, Swiggy’s IPO has attracted significant attention. The Bengaluru-based company has made a name for itself in the food delivery industry and now stands as a testament to the financial opportunities for employees in high-growth tech companies. 

        What are ESOPs

        ESOPs, or Employee Stock Option Plans, are powerful tools for companies to compensate employees by offering them a stake in the company. Instead of or in addition to a traditional salary, employees are granted options to buy shares in the company at a set price, often below the market value. 

        These options can later be exercised, allowing employees to convert them into shares. Employees then can either hold onto these shares, hoping for a further increase in value, or sell them, realizing their gains.

        ESOPs at Swiggy

        Swiggy has rolled out three major ESOP plans, initiated in 2015, 2021, and 2024, totaling nearly 230 million shares. Of these, around 9 million options have already been exercised, leaving a substantial portion still available for employees to convert into shares. 

        The most recent ESOP grants included significant allocations to Swiggy’s leadership team, with close to ₹2,600 crore going to top executives like CEO Sriharsha Majety, CTO Madhusudhan Rao, and other senior company figures.

        NameDesignationESOP Liquidity  (in Cr.)
        Sriharsha MajetyCofounder & Group CEO1894.11
        Amitesh JhaCEO Instamart126.41
        Rohit KapoorCEO Food Marketplace92.63
        Rahul BothraChief Financial Officer81.73
        Madhusudan RaoChief Technology Officer81.73
        Girish MenonChief Human Resources Officer81.73
        Phani KishanCofounder and Chief Growth Officer81.73
        Nandan ReddyCofounder and Head of Innovation81.73
        Ashwath SwaminathanEx-chief Growth and Marketing Officer54.48
        Source: Economic Times

        In addition to this year’s IPO, Swiggy has previously facilitated liquidity for employees by allowing them to cash out some of their ESOPs. For instance, a buyback of ESOPs in July 2023 generated over ₹500 crore in liquidity for employees.

        Swiggy’s IPO and the Market Impact

        Swiggy’s IPO, valued at around ₹11,300 crore, is the biggest public offering by an Indian tech company since Paytm’s IPO in 2021. Institutional investors have shown a robust interest, with the IPO subscribed 3.59 times. Swiggy’s strong market performance has added to the enthusiasm, making it one of the most awaited listings of the year.

        This enthusiasm isn’t surprising. Swiggy’s major rival, Zomato, made waves in the industry when it went public in July 2021, creating 18 dollar millionaires and minting wealth for numerous employees. Similarly, Paytm’s 2021 IPO led to financial gains for around 350 employees, many of whom became crorepatis overnight. Swiggy continues this trend in the consumer internet sector, solidifying its role as a key player in India’s tech ecosystem. Source: Economic Times

        The Financial Mechanics

        Employees converting their ESOPs to shares are liable to pay tax on the difference between Swiggy’s current share price and the price at which their options were granted. Swiggy has partnered with several financial platforms to ease this conversion process and support employees with the necessary financing.

        Lock-in Exemptions

        One unique advantage Swiggy employees have is an exemption from the mandatory one-year lock-in period. In July 2023, the Securities and Exchange Board of India (SEBI) granted Swiggy employees the ability to sell shares just a month after the IPO. This early liquidity option significantly boosts employees’ financial flexibility, allowing them to capitalize on their newly acquired wealth sooner than expected.

        Swiggy’s Wealth Creation and the Startup Ecosystem

        The economic impact of Swiggy’s ESOP liquidity event is expected to extend beyond individual wealth creation. Employees who gain substantial wealth through ESOPs often explore new ventures, invest in property, or build assets, potentially stimulating local economies. The wealth generated from Swiggy’s IPO could ripple out, with some employees even choosing to establish their startups, further enriching India’s entrepreneurial ecosystem.

        Other consumer internet companies have also conducted significant ESOP buybacks and IPO events in recent years. Flipkart, a leader in India’s e-commerce sector, has conducted multiple ESOP buybacks, amounting to a total payout of $1.5 billion over several years. In 2023 alone, Flipkart paid out $700 million to its employees following its separation from PhonePe. Razorpay, another prominent Indian startup, conducted four ESOP buybacks between 2018 and 2022, generating over $90 million for 1,900 employees.

        Source: Economic Times

        Companies such as Meesho, Urban Company, and Purplle have joined this trend by facilitating ESOP buybacks for their employees, enhancing wealth creation opportunities across the startup sector. The increase in ESOP-based wealth generation marks a pivotal shift in the Indian job market, where employees are not just earning salaries but are building substantial financial assets.

        A Transformative Moment for Swiggy and Its Employees

        As Swiggy goes public, nearly 5,000 current and former employees stand to benefit from its ₹9,000 crore ESOP pool, marking one of the largest wealth creation events in India’s startup history. The IPO provides a financial breakthrough for around 500 employees, who will join the ranks of the country’s ‘crorepatis.’ 

        The journey of Swiggy’s employees highlights the transformative power of ESOPs as startups and established companies continue to leverage stock options to attract, retain, and reward talent.

        Conclusion

        Swiggy’s IPO is a significant step for the company and a momentous event for its employees, who have been instrumental in driving its success. As these employees stand on the brink of newfound financial freedom, Swiggy’s IPO is a powerful reminder of the opportunities in India’s vibrant and fast-evolving startup ecosystem.

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        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.

        Read more

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        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.

        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.

        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.