News

Tata Motors has been in the spotlight as its much-anticipated demerger comes into effect on October 1. Investors and market participants have been tracking the development closely, as it marks a significant step in the company’s restructuring journey. The decision to separate its businesses into distinct entities is aimed at bringing greater clarity to its operations and unlocking long-term value.

Background of the Demerger

Earlier this year, Tata Motors announced its plan to split into two listed entities. The move was designed to create a sharper focus on each business vertical. Post demerger, Tata Motors will operate as two companies:

• One focusing on the commercial vehicles (CV) business, including trucks, buses, and related services.
• The other concentrating on the passenger vehicles (PV) business, which covers electric vehicles (EVs), luxury cars under Jaguar Land Rover (JLR), and the domestic passenger car segment.

The separation has been structured in a way that shareholders of Tata Motors will continue to hold the same number of shares in both entities. This means existing investors will have stakes in both the CV and PV-focused companies.

Why the Demerger Matters

The automotive industry is undergoing significant changes, with a clear shift toward electrification, sustainability, and evolving mobility solutions. By separating its businesses, Tata Motors intends to provide each vertical with the independence to set strategies, attract investors, and allocate resources more efficiently.

• For the commercial vehicles business: The focus will remain on growing volumes in the domestic market, enhancing exports, and integrating digital solutions for logistics and fleet management.
• For the passenger vehicles business: The spotlight is on electric mobility, product launches, and scaling up the EV ecosystem, while JLR continues to play a crucial role in the premium car market globally.

This clarity is expected to help both segments pursue opportunities without overlapping priorities.

Market Reaction Ahead of the Demerger

Leading up to October 1, Tata Motors shares have seen increased trading activity as investors position themselves for the demerger. The market often views such corporate actions as opportunities for revaluation, as the separation of businesses tends to highlight the financial performance of each division more transparently.

Brokerage reports have suggested that the PV and EV business, with JLR under its umbrella, may attract strong interest given the rising demand for electric cars and the global recovery in premium vehicles. At the same time, the CV business is closely linked to the Indian economy and infrastructure growth, which provides long-term stability.

What Investors Need to Watch

While the demerger is now effective, the performance of each entity will depend on its ability to deliver growth in a competitive industry. Investors may want to keep a close watch on:

1. Quarterly earnings of both businesses separately, to gauge profitability and cost structures.
2. Market share trends, especially in the EV and CV segments where competition is intensifying.
3. Global demand for JLR products, as luxury vehicle demand often depends on economic cycles in key markets like Europe, the US, and China.
4. Policy support and regulations, particularly for EV adoption in India, which will shape the future of Tata Motors’ passenger vehicle strategy.
5. Balance sheet strength, as both businesses will need to maintain financial discipline to fund expansion and technology investments.

Strategic Outlook Post Demerger

For Tata Motors, this restructuring aligns with a broader industry trend where large conglomerates are streamlining operations to unlock shareholder value. Similar strategies have been adopted in the global automotive industry, where companies have separated traditional vehicle businesses from their EV or technology-focused arms.

The commercial vehicle entity is likely to be positioned as a steady, cyclical business linked to India’s industrial growth. On the other hand, the passenger vehicle and JLR unit may attract investors who are more focused on growth and innovation, particularly in the EV space.

Final Thoughts

The effective date of October 1 for the Tata Motors demerger is a milestone for the company and its investors. While the separation does not alter the number of shares held by existing shareholders, it does provide clarity on how each business will be managed and valued.

For investors, the next few quarters will be crucial to assess the progress of both entities and how markets assign valuations to the passenger vehicle and commercial vehicle arms. The long-term success of the demerger will depend on execution, market dynamics, and the company’s ability to adapt to evolving trends in the global automotive landscape.

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.

The IPO market in India continues to attract investor attention, and Anand Rathi Wealth is the latest name to stay in focus. After debuting on the stock exchanges, the company’s shares are trading at an 8% premium to the issue price, reflecting steady demand from investors. Let’s look at what this means and the key factors investors should track.

About the IPO

Anand Rathi Wealth Limited, part of the Anand Rathi Group, is a non-bank wealth management company offering financial advisory and investment services. Its IPO was launched as an offer for sale (OFS), where existing shareholders sold a part of their stake.

The issue received interest from retail as well as institutional investors, thanks to the company’s presence in the growing wealth management space. With rising affluence and increasing need for financial advisory in India, the sector has attracted consistent attention in recent years.

Listing Gains and Current Market Performance

On listing day, Anand Rathi shares opened above the issue price, giving early investors immediate gains. The stock has managed to sustain those gains and is now trading at around an 8% premium to its issue price.

This indicates that:

• IPO pricing was set at a level that left room for appreciation.
  
• Investors are showing confidence in the company’s business model.
  

What’s Driving Investor Interest?

Several factors explain why the stock has drawn investor attention:

1. Rising Demand for Wealth Management
   
   • India’s growing base of high-net-worth individuals (HNIs) and affluent families is expanding the market for financial advisory services.
     
   • Anand Rathi, with its established brand, is well placed to capture this growth.
     
2. Diversified Offerings
   
   • The company provides multiple investment products and wealth management solutions.
     
   • This reduces dependence on any single revenue source.
     
3. Strong Brand Recall
   
   • As part of the Anand Rathi Group, the firm benefits from a trusted name in financial services.
     
   • Its nationwide client network provides scale and visibility.
     
4. Supportive Market Sentiment
   
   • Stable equity market conditions have encouraged positive reception of new listings.
     
   • Anand Rathi’s debut comes at a time when investor interest in financial services companies remains firm.
     

What Investors Need to Know

While the 8% listing premium is encouraging, investors should weigh both opportunities and risks:

• Growth Potential: The wealth management industry in India is expected to grow steadily, supporting long-term opportunities for players like Anand Rathi.
  
• Competition: The sector includes large banks and boutique advisory firms, making it highly competitive.
  
• Valuation: Sustained stock performance will depend on financial results, margin growth, and client retention.
  
• Regulatory Environment: Changes in financial regulations could influence operations and profitability.
  

Outlook Ahead

The stock’s ability to hold above its issue price signals a positive start, but its long-term journey will depend on how effectively the company expands its assets under management (AUM), builds client trust, and delivers consistent earnings.

For investors, the Anand Rathi IPO highlights two key takeaways:

• Short-term listing gains can provide quick returns.
  
• Long-term value depends on the company’s ability to execute its growth strategy in a competitive market.
  

Final Word

Anand Rathi Wealth’s IPO has begun on a steady note, rewarding early participants with an 8% premium. Investors now need to look beyond listing gains and track business performance over the coming quarters. With India’s wealth management sector poised for growth, the company has opportunities ahead — but execution will determine how much value it can deliver 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.

Shares of Bharat Electronics Limited (BEL) jumped after reports emerged that the Indian Army intends to issue a ₹30,000-crore tender for advanced air-defence missile systems a move that could reshape India’s defence electronics landscape.

What’s the Deal?

• The tender targets the acquisition of 5 to 6 regiments of the mobile missile defence system currently dubbed Anant Shastra (formerly QRSAM).
  
• BEL is expected to take the lead as system integrator, overseeing electronics, radars, guidance, and control architecture.
  
• Bharat Dynamics Ltd (BDL) may take on the manufacturing of the missile hardware and subsystems.
  
• The Anant Shastra / QRSAM system is engineered to track and neutralize aerial threats while on the move — enhancing protection against aircraft, drones, missiles, and helicopters.
  
• This move aligns with India’s “Make in India” push, aimed at reducing dependence on foreign defence suppliers.
  

Market Reaction & Investor Sentiment

On the back of this news, BEL shares surged ~2% intraday, outperforming benchmark indices. The strong reaction reflects investor optimism that such a large order would meaningfully strengthen BEL’s order book and revenue visibility. The broader defence sector also caught the spotlight, with participants viewing this as confirmation of sustained government allocation toward defence modernization.

BEL’s Strengths & Strategic Advantage

✔ Long-Term Revenue Visibility

If executed as projected, the ₹30,000-crore contract offers multi-year revenue visibility. BEL’s management has suggested that parts of execution may begin around FY27.

✔ Trusted Relationship with Defence Establishment

BEL has long been a key electronics and systems integrator for Indian defence forces, giving it credibility and strong institutional ties.

✔ Diversified Project Pipeline

Beyond QRSAM, BEL is active in naval radar systems, electronic warfare, avionics, and subsystem roles in the S-400 programme.

Risks & Headwinds to Watch

• Execution challenges: Defence projects tend to have long gestation, strict performance clauses, and complex deliverables.
  
• Policy and procurement delays: Clearances, RFP negotiations, and bureaucratic processes can slow things down.
  
• Intensifying competition: Private and global players entering India’s defence electronics domain may pressure margins.
  
• Cost & currency volatility: Fluctuations in input costs or foreign exchange movements could squeeze profitability.
  

Strategic Significance & Long-Term Implications

This order is more than just a revenue driver; it could mark BEL’s transformation into a core systems integrator in India’s defence architecture. Successful delivery could open doors to more high-value mandates in air defence, naval systems, and beyond.

For India, it reinforces the shift from “import and assemble” to indigenous design, development, and integration. BEL, in partnership with DRDO, BDL, and other entities, is likely to strengthen its reputation as a reliable partner in future strategic programs.

Outlook for Investors

• Key milestones to monitor: formal award of the contract, rollout of RFPs, order confirmations, and phased execution reports.
  
• Financial metrics to watch: quarterly order inflows, margin trends, revenue recognition schedules, and capital allocation to new projects.
  
• Defence budget & policy signals: further government spending or reforms will influence BEL’s growth trajectory.
  

Despite execution risks and possible delays, the current development boosts BEL’s visibility as a major beneficiary of India’s expanding defence budget. For investors, the combination of a strengthening order pipeline, diversification across platforms, and alignment with national self-reliance objectives presents a compelling long-term case.

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.

As the festive season approaches, the Indian stock market seems to be gearing up for a strong lineup of initial public offerings (IPOs). Two big names — Tata Capital and LG Electronics India — are expected to make their market debut in early October. For investors, this timing aligns with Diwali, a period that often brings renewed optimism and fresh activity in financial markets.

Tata Capital IPO: A Key Financial Sector Listing

Tata Capital, the financial services arm of the Tata Group, is preparing to open its IPO around October 6, 2025. The issue will include both a fresh share sale and an offer for sale by existing shareholders. Reports suggest that the IPO could be valued at around ₹17,000 crore, making it one of the larger financial services offerings in recent years.

For the Tata Group, this IPO is important because it expands the number of listed businesses under its umbrella. For investors, it provides an opportunity to invest in a company that operates across lending, wealth management, infrastructure finance, and housing finance. The listing is also expected to improve transparency and strengthen compliance, aligning Tata Capital with other listed non-banking financial companies (NBFCs).

The anchor bidding for institutional investors is likely to begin a few days before the issue opens for the public, and the subscription window should close by October 8. The market response during this period will be closely monitored, as it will indicate broader appetite for large financial sector IPOs.

LG Electronics India IPO: Consumer Sector Joins the Festive Lineup

Alongside Tata Capital, consumer goods giant LG Electronics is also preparing to list its Indian unit. The IPO is expected to raise around ₹11,500 crore, with the company likely to sell close to 15% of its Indian subsidiary through an offer for sale. This translates to over 10 crore shares being offered to the public.

LG Electronics had previously paused its IPO plans earlier in the year due to market volatility. The decision to relaunch now reflects more favorable conditions and a strategic choice to align the listing with India’s festive season. The valuation of the Indian arm is expected to be near $9 billion, though this is lower than initial estimates, suggesting the company is balancing its capital-raising goals with investor expectations.

The listing will be a significant milestone for LG, which has been a household name in India’s consumer durables market for decades. It also highlights how multinational companies are increasingly looking to tap into Indian equity markets to unlock value and broaden their investor base.

Why These IPOs Matter

1. Timing and Market Sentiment

The festive season, particularly Diwali, has traditionally been associated with positive investor sentiment. Aligning IPO launches with this period often helps companies attract retail participation, as market liquidity tends to improve.

2. Testing Liquidity and Demand

Together, the Tata Capital and LG Electronics IPOs could absorb more than ₹30,000 crore from the market. This is a significant amount and will test how much liquidity is available among institutional and retail investors. Strong subscription numbers could signal robust investor confidence, while weaker demand might suggest concerns about valuations.

3. Benchmark for Future IPOs

Both Tata Capital and LG Electronics are leaders in their respective sectors. Their pricing and post-listing performance will likely serve as benchmarks for other companies planning to go public in the coming quarters. If investors respond positively, more large companies could accelerate their IPO plans.

4. Risks and Considerations

Despite the festive timing, challenges remain. High valuations could deter cautious investors, especially if global or domestic markets face volatility. Additionally, competing capital requirements — such as festive consumer spending and real estate investments — may limit the funds available for IPO subscriptions. Global factors like interest rate movements and geopolitical tensions could also influence investor sentiment.

What Investors Should Watch

• Subscription levels: Early subscription data from institutional investors will provide insight into demand.
  
• Valuation range: Whether companies price their shares conservatively or aggressively will determine overall participation.
  
• Listing day performance: The first few days after listing will be critical in gauging long-term interest.
  
• Spillover effect: Large IPOs can temporarily impact liquidity in the secondary market, affecting mid- and small-cap stocks.
  

Final Thoughts

This October, Dalal Street could witness a double celebration with Tata Capital and LG Electronics stepping into the public markets. The two IPOs, coming from very different sectors, highlight both the depth and diversity of India’s economy. While the festive backdrop may encourage participation, investors should approach these opportunities with careful evaluation of valuations, business models, and long-term growth potential.

If both issues see healthy participation and sustain their valuations post-listing, they could set the stage for more companies to test the IPO market in the months ahead. For now, all eyes are on early October, when the festive fireworks may begin not just in households but also on D-Street.

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.

The Indian Information Technology (IT) sector is undergoing an abrupt and profound structural shift, triggered by a sharp increase in the cost of the U.S. H-1B visa. The introduction of a new, massive $100,000 fee for fresh applications has dramatically altered the financial calculus for major service providers, challenging the very foundation of their long-standing U.S. staffing model. This seismic policy change has not just hit the stocks; it’s forcing a long-overdue recalibration of global delivery strategies, talent management, and client pricing.

	Old Model (Pre-Hike)	New Model (Post-Hike Reality)
Onsite Staffing	Cost-effective and flexible rotation of Indian talent.	Prohibitively Expensive. Limited to essential, high-value-add roles.
Delivery Mix	Balanced mix of offshore (India) and onsite (U.S.) work.	Heavy acceleration towards Offshore (India) delivery.
Cost	Visa fees were a manageable, few-thousand-dollar administrative cost.	Visa fee is a $100,000 one-time, upfront capital cost, matching or exceeding a worker’s annual salary.

Immediate Market Shock and Sector Repricing

The market reaction to the announcement of the $100,000 fee was immediate and brutal. Investors, wary of shrinking margins and operational uncertainty, initiated a sharp sell-off across the sector.

The Nifty IT index plunged close to 3% immediately following the news, dragging broader benchmark indices like the Sensex and Nifty down with it. Major IT giants, including Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech, recorded share price declines ranging from 2% to 6% during intraday trading. Mid-cap IT companies, which often have higher exposure to the U.S. onsite model and a smaller buffer to absorb new costs, experienced even steeper falls.

This negative sentiment extended over the following days, with the BSE IT index continuing its slide, driven partly by sustained foreign institutional investor (FII) outflows. The market was not just reacting to a fee; it was repricing the risk associated with the entire Indian IT services industry’s dependence on cross-border talent mobility for its largest market, the United States.

The New Financial Reality: Rising Costs and Squeezed Margins

The heart of the challenge lies in the sheer financial weight of the new policy. The $100,000 fee is a one-time, hefty upfront cost that applies to fresh H-1B visa applications, not renewals.

Rising Deployment Costs

For any new project requiring on-site deployment or for replacing staff, IT firms now face a massive, non-recoverable initial expense. Before this hike, the total visa costs typically ranged between $2,000 and $5,000. This sudden, near 50-fold increase transforms a routine administrative expense into a significant capital commitment per employee. Given that median H-1B salaries sponsored by Indian firms hover around $80,000–$120,000, the fee now equals or exceeds a worker’s entire first-year compensation.

Margin Pressure and Client Pushback

IT companies historically leveraged the cost arbitrage of sending Indian employees to the U.S. versus hiring locally. The new fee significantly erodes this arbitrage. For a sector already grappling with slower global demand and competitive pricing, this cost shock means operating profit margins could shrink by an estimated 50 to 150 basis points (bps), depending on a company’s visa-dependency profile.

Firms face a difficult choice:

1. Absorb the Cost: Take a direct hit to profitability, potentially disappointing shareholders.
2. Pass it On: Increase billing rates for clients, risking pushback, loss of pricing power, or even losing contracts to competitors offering different models.

The Pivot: Offshoring, Local Hiring, and Adaptability

Recognizing the new constraints, the Indian IT sector is accelerating its long-term strategic pivot. The goal is to develop models less vulnerable to unpredictable foreign policy changes.

1. Accelerated Offshore Delivery

The most viable defense against high onsite costs is to move more work offshore—executing projects remotely from India. This involves pushing clients to accept delivery models that maximize work done from centers in India, protecting cost structure, and minimizing the need for new H-1B visas.

2. Increased U.S. Local Hiring

Companies will be compelled to double down on local U.S. hiring of American citizens and permanent residents. While local U.S. wages are higher than those of visa-holding Indian employees, the expense might now be more predictable and cost-effective than absorbing the $100,000 fee, especially when factoring in the risk and inflexibility of the visa process.

3. Alternative Mobility Solutions

IT firms are also exploring other visa categories, nearshoring (moving staff to countries geographically closer to the U.S., like Canada or Mexico), and increasing the use of sub-contractors or gig workers for specialized onsite needs. This is about replacing the old model of staff rotation with a dynamic, decentralized talent strategy.

The Investor Outlook: Judging Agility

While the policy is a clear short-term negative, it is also a powerful stress test that will separate the agile innovators from the laggards. For investors, this moment highlights several key watch factors:

1. Earnings Commentary: How company management teams articulate their strategy for cost absorption, client dialogue, and model shift in upcoming quarterly results will be crucial.
2. Geographic & Delivery Mix: Companies with lower reliance on the U.S. onsite model (i.e., higher offshore component) or those with stronger revenue growth from other geographies (Europe, APAC) are likely to be more resilient.
3. Policy Updates and Legal Avenues: The policy is controversial and may face legal challenges from U.S. business groups, which could lead to refinements or a partial rollback. Investors must monitor these developments closely.

In the coming quarters, the success of India’s $250-billion IT industry will not just depend on global demand; it will hinge on its ability to strategically adapt to this hostile policy environment, proving that the ingenuity of its delivery model can overcome even the most daunting of financial barriers.

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.

When a company opts for a stock split, it often draws fresh investor interest—especially when the per-share price is high. A recent case in point is Tata Investment Corporation Limited, a Tata Group company, which has announced its first-ever 1:10 stock split, leading to a sharp reaction in the market.

What Exactly Has Been Announced?

On September 22, 2025, Tata Investment informed stock exchanges that its board has fixed Tuesday, October 14, 2025, as the record date for the subdivision. Each existing equity share with a face value of ₹10 will be split into ten fully paid shares of ₹1 each.

This means as of that date, shareholders who hold the shares (or whose names are registered in the dematerialized records) will be entitled to receive the increased number of shares.

Because of this action, Tata Investment’s authorised share capital would scale up proportionally, and the total number of shares issued and paid up would increase tenfold.

Investors holding physical share certificates are being asked to convert to demat form or submit their demat account details by October 9, 2025, to ensure automatic allotment of the new shares. In the absence of those details, the subdivided shares may be credited to a suspense account.

Why the Market Moved Quickly

Once the record date was made public, the share price of Tata Investment saw a significant jump. On September 23, the stock gained about 11.7% intraday, touching a fresh 52-week high of ₹8,131.50 on the BSE.

Over the two sessions following the announcement, the stock surged nearly 25% from its earlier levels, reaching close to ₹9,100.

Part of this rally can be linked to speculation and repositioning—investors expecting greater liquidity and broader participation after the split are stepping in.

Still, while sentiments drive short-term moves, the split itself does not change the company’s underlying assets or earnings.

What the Split Does and Doesn’t Do

What Changes After the Split

• Per-share metrics adjust: The nominal share price and earnings per share (EPS) will theoretically be divided by 10.
  
• Number of shares increases: Ten times as many shares will exist, but the total value remains the same.
  
• Access improves: The post-split price per share will fall significantly, making it more accessible to retail investors.
  
• Liquidity expectation: More shares with a lower price often improve trading volume and market activity.
  

What Remains Unchanged

• The market capitalization of Tata Investment will remain constant (ignoring normal market movements).
  
• The total earnings, dividends, and assets are unaffected by the split.
  
• The valuation drivers remain grounded in the performance of its portfolio, since Tata Investment is largely a holding or investment company.
  

In its Q1 FY26 results (ended June 30, 2025), the company posted consolidated profit after tax (PAT) of ₹146.3 crore, up about 11.6% from ₹131.07 crore in the same quarter last year. Revenue was at ₹145.46 crore compared to ₹142.46 crore.

Implications for Investors

Existing shareholders: They will see their shareholding increase tenfold, but their total value remains the same. The split could make partial selling easier or more flexible, since smaller lots become tradable.

Prospective (new) investors: The lowered per-share price may reduce the entry barrier, enabling smaller investors to participate more easily in Tata Investment.

Market behavior: The split may help broaden the base of shareholders. If liquidity improves, volatility might reduce and the stock may trade more efficiently.

However, investors should not treat the split as a standalone reason to buy. The real test will be how Tata Investment continues to manage its portfolio of Tata and non-Tata holdings, whether it can extract value via dividends or capital appreciation, and how investor sentiment evolves after the split takes effect.

Risks and Things to Watch

• Reversion in price: Once the split is effective and the novelty wears off, there could be some price correction.
  
• Volume sustainability: A short spike in volumes is expected, but sustaining higher liquidity depends on genuine investor interest.
  
• Valuation discipline: After the split, as EPS and book value per share get adjusted, investors should reassess whether the stock is fairly priced.
  
• Tax and transaction costs: For shareholders who convert physical shares or deal with depository formalities, there could be overheads.
  

Conclusion

The Tata Group’s company, Tata Investment Corporation, has announced its first-ever 1:10 stock split, with a record date of October 14, 2025. The stock has already reacted sharply, with a gain of around 25% in two trading sessions after the record date was fixed.

While the split improves share affordability and may attract more investors, it does not alter the business fundamentals. Investors should use this occasion to reassess the underlying strength of Tata Investment’s portfolio and not be swayed solely by short-term moves.

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.

Buying or building a home involves significant planning, not only for the property but also for interiors, appliances, and finishing touches. With the rollout of GST 2.0 on September 22, 2025, the tax structure has changed in a way that directly impacts homebuyers. Understanding how much tax you’ll now pay on construction materials, furniture, and household goods can help you plan your budget better.

What is GST 2.0?

GST 2.0 has simplified the earlier multi-slab system into a more streamlined structure. The older 12% and 28% slabs have been removed for most goods. Now, the tax system broadly has:

• 5% slab – for essential and daily-use items.
  
• 18% slab – for most mid-range and aspirational goods, including many home-related purchases.
  
• 40% slab – for ultra-luxury or premium goods, such as high-end imports or luxury fittings.
  

This change reduces the tax burden on many goods that were earlier taxed at 28% and brings clarity for homebuyers.

Tax Rates on Key Home-Related Items

Here’s how the new rates look for commonly purchased categories when you are setting up a home:

Category	Earlier Rate	New GST 2.0 Rate	What It Means
Cement, concrete	28%	18%	Construction costs have reduced slightly.
Bricks, tiles, sand	18%	5%	Basic raw materials now attract lower tax.
Paints, coatings	28%	18%	Reduced but still higher than essentials.
Furniture (wood, metal, plastic)	18–28%	18%	Unified rate across categories.
Modular kitchen, wardrobes (custom/unbranded)	12–18%	Around 12%	Interiors become more predictable in pricing.
Lighting, switches, wiring	18–28%	18%	Standardised under one slab.
Home appliances (TVs, ACs, fridge, washing machine)	28%	18%	Significant tax reduction on big appliances.
Daily household items (utensils, soaps, tableware)	12–18%	5%	Everyday essentials become more affordable.
Luxury or premium imports	28% + cess	40%	High-end items are now taxed at a premium rate.

Example Cost Breakdown

Imagine you are furnishing a 3BHK with a modular kitchen, wardrobes, and essential appliances. Here’s an approximate illustration of what GST might look like under the new regime:

• Modular kitchen + cabinets: ₹3,00,000 → GST 12% → ₹36,000
  
• Wardrobes: ₹1,50,000 → GST 12% → ₹18,000
  
• False ceiling and gypsum work: ₹80,000 → GST 18% → ₹14,400
  
• Lighting and fixtures: ₹60,000 → GST 18% → ₹10,800
  
• Appliances (TV, fridge, ACs, washing machine): ₹5,00,000 → GST 18% → ₹90,000
  
• Daily household items: ₹50,000 → GST 5% → ₹2,500
  

Total base cost: ₹10,40,000
GST payable: ~₹1,71,700

Additionally, labor and service charges for design or installation usually attract 18% GST. Always ask contractors to provide a clear separation between material and service costs to avoid overpaying.

What Homebuyers Should Keep in Mind

1. Check if benefits are passed on – With lower GST rates, ensure your builder or supplier is reducing costs accordingly.
   
2. Demand valid GST invoices – Proper documentation with HSN or SAC codes protects you from misclassification.
   
3. Separate materials and services – Since different portions attract different rates, clarity in billing prevents confusion.
   
4. Be aware of misclassification – Mid-range items should not be wrongly billed under luxury categories.
   
5. Plan purchases under GST 2.0 – Now that the system is in force, bulk buying could save costs compared to the transitional periods.
   
6. Factor in premium goods – Imported luxury items or designer fittings may still come with a 40% tax, so budget carefully.
   

Key Takeaway

GST 2.0 has reshaped the tax landscape for homebuyers by bringing construction materials, furniture, and appliances under more uniform and lower slabs. Essentials are now taxed at 5%, aspirational goods at 18%, and only ultra-luxury items fall under the steep 40% slab. For anyone building or furnishing a dream home, this change means greater transparency, slightly reduced costs on big purchases, and easier planning.

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.

Adani Power shares fell by about 6% on 23 September 2025, following a sharp uptrend over the prior three trading days. This dip came after the stock surged roughly 32-35% in those sessions. The retreat appears linked to profit-booking by investors, as well as revaluations after the company’s first-ever 1:5 stock split.

Here are key reasons behind the drop, and what investors might want to keep in mind.

1. Stock Split Took Effect

Adani Power underwent a 1:5 stock split. Each share of face value ₹10 was split into 5 shares of face value ₹2 each. After the split, the number of shares outstanding increased, but the overall value of holdings for each investor remained the same.

Because the per-share price dropped in line with this split, some of the price decline is just the mechanical adjustment to the split, not an actual loss in company value. 

2. Strong Rally Prompted Profit Booking

Before the decline, Adani Power shares had risen sharply—32-35% in three sessions. Such fast gains often lead short-term investors or traders to take profit. When many try to do that at once, selling pressure increases, triggering pullbacks.

The sharp rally was itself driven by favorable sentiment, including regulatory clarity (especially SEBI dismissals of certain allegations from Hindenburg Research) and the expectations that a lower absolute share price post-split would draw more retail participation. 

3. Optical Drop After Ex-Split

Because of the split, the share’s price per unit dropped sharply from its pre-split value. On the day the stock turned “ex-split,” the price fell from a high number (pre-split) to a lower level (post-split). Observers noted a quote around ₹147 early on ex-split, down from over ₹700 pre-split, though this is not a real loss in value but a proportional adjustment due to the share subdivision. 

4. Mixed Institutional & Retail Activity

Reports show both institutional and retail interest in Adani Power during the run-up. After split announcements and regulatory developments, there was renewed buying. However, as prices rose rapidly, some institutional players also trimmed positions, possibly locking in returns. This changing mix adds to volatility

5. Technical & Sentiment-Driven Reassessment

After a strong run, stock charts and technical indicators often enter “overbought” territory. Some analysts flagged that Adani Power was trading above key moving averages across time frames, which can trigger corrective selling once the euphoria slows.

Sentiment also plays a large role: investors who joined during the rise may become more cautious when price moves too fast, especially around corporate events (like stock splits) or when valuations seem stretched relative to peers.

What It Means for Investors

• The recent drop does not reflect a change in company fundamentals. Instead, it reflects profit booking, price readjustment due to the split, and market psychology.
  
• For those considering entry now, the lower nominal share price post-split may seem attractive, but it’s important to assess valuation in terms of earnings, growth, debt, and risk, not share ticket price alone.
  
• Volatility is likely in the near term. Days with sharp rises tend to be followed by days of correction, especially after big corporate actions.
  
• Long-term prospects depend on execution, capacity expansion, regulatory environment, and cost of inputs (fuel, etc.). These remain central to Adani Power’s value.
  

Key Takeaway

Adani Power’s roughly 6% fall reflects a natural pullback after a steep rally, combined with mechanical adjustments from the 1:5 stock split. Profit booking by investors added to the selling pressure, as prices had run ahead over several sessions. While there is no indication of deteriorating fundamentals, this episode underscores how quickly sentiment and technical factors can influence stock behaviour following major corporate events. For investors, the key is to separate short-term movements from long-term value.

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.

The Indian tax landscape is set for another round of changes with the rollout of GST 2.0. While the first phase of the Goods and Services Tax in 2017 was aimed at unifying the indirect tax system, the second version is expected to bring refinements in compliance, simplification of returns, and greater use of technology. For investors, the focus naturally shifts to how these reforms may influence various sectors and stocks in the near term.

Understanding GST 2.0

GST 2.0 is designed to address several challenges that businesses and taxpayers faced under the current system. The key aspects of this reform include a more streamlined return-filing process, enhanced input tax credit reconciliation, and improved digital integration. These measures are expected to lower compliance costs and reduce tax-related disputes. While the long-term impact will unfold gradually, the rollout creates immediate opportunities and risks for certain industries.

Sectors Likely to Gain

Some sectors may benefit from smoother tax processes and reduced inefficiencies:

1. Fast-Moving Consumer Goods (FMCG)
   Companies in the FMCG space were among the early beneficiaries of GST 1.0 as supply chain efficiencies improved. With GST 2.0 focusing on compliance simplification, FMCG players could further reduce administrative costs. The move could also strengthen distribution networks, helping companies scale operations more effectively.
   
2. Logistics and Transportation
   Logistics has always been closely linked to tax reforms. GST 2.0’s emphasis on digital tracking and reconciliation may improve turnaround times and reduce paperwork. For logistics companies, this translates into better resource utilization and potentially stronger margins. Improved transparency may also encourage more organized players to expand.
   
3. E-commerce
   Online platforms often face tax-related complexities due to multi-state operations. GST 2.0 is expected to offer clarity on input credits and returns, which may ease operational challenges. This could benefit both e-commerce marketplaces and sellers relying heavily on digital platforms.
   
4. Banking and Financial Services
   With the integration of digital compliance and reporting, the financial sector may see opportunities to offer new services, such as advisory solutions for tax reconciliation. Moreover, NBFCs and fintech players may benefit from greater demand for compliance-linked financial products.
   

Sectors That May Face Short-Term Pressure

While GST 2.0 aims at reducing inefficiencies, certain sectors may face transitional challenges:

1. Small and Medium Enterprises (SMEs)
   Compliance burdens, even when simplified, can initially weigh on smaller businesses. SMEs that lack the infrastructure to quickly adapt to digital reporting requirements may experience short-term disruptions. However, those that adjust efficiently could benefit in the longer term.
   
2. Real Estate and Construction
   The sector has historically struggled with GST-related challenges, particularly regarding input tax credits. While GST 2.0 seeks to provide clarity, real estate firms may still require time to align operations with the updated framework. Investors should keep a close watch on how listed developers respond to the new structure.
   
3. Automobiles
   The automobile sector is sensitive to changes in tax rates and compliance costs. Any adjustments in GST categories or tax slabs under the new framework may temporarily affect demand patterns, especially in passenger vehicles and two-wheelers.
   

Key Stocks to Monitor

While sectoral trends provide a broad view, certain companies may be more directly impacted:

• Large FMCG companies such as Hindustan Unilever, ITC, and Dabur may see operational benefits if compliance becomes smoother.
  
• Logistics firms like Blue Dart and Delhivery could benefit from efficiency improvements.
  
• E-commerce enablers and listed platforms may gain traction from simplified processes.
  
• Banks and NBFCs offering compliance-related financing and services may see new opportunities.
  
• On the cautious side, listed real estate players like DLF and Godrej Properties and automobile manufacturers such as Maruti Suzuki and Hero MotoCorp may face short-term adjustments.
  

Investor Takeaway

The rollout of GST 2.0 marks an important step in India’s tax reform journey. For investors, the near-term volatility in certain stocks should be balanced against the broader efficiency gains that a simpler and more transparent tax structure can bring. While FMCG, logistics, and financial services appear positioned to benefit, sectors like real estate, automobiles, and SMEs may need more time to adapt.

A careful stock-specific approach, with attention to management commentary and quarterly results post-implementation, will help investors navigate the changes effectively. GST 2.0 is not just a tax update—it is also a structural development that may influence sectoral dynamics in 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.