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Business Standard
19 minutes ago
- Business
- Business Standard
Best of BS Opinion: India's bold visions, sour gaps, and ripe debates
Every monsoon, when the fruit cart rolls into our lane, we usually spot the cherry box and instinctively reach for the reddest ones, until an old neighbour chuckles and informs us that the darkest ones are sweeter. Not all cherries are the same — some are crimson and glossy, others dusky and firm, a few are unexpectedly sour. Yet together, in one basket, they tell a richer story of variation than uniformity. That's what today's policy landscape feels like: a mix of bright ideas, deep-rooted challenges, and uncertain flavours. Taken separately, each issue raises its own questions. Taken together, they speak to the complexity of India's ongoing transformation. Let's dive in. The draft National Telecom Policy 2025, for instance, is a glossy red cherry, plump with promises of universal 5G, Rs 1 trillion in annual investment, and sweeping employment. But when you bite into it, the lack of short-term strategy and blind spots around industry stress, spectrum clarity, and PSUs leaves a sour aftertaste, notes our first editorial. If it has to deliver, the final version will need to ground itself in the messy soil of current telecom realities. A deeper red cherry, full of nostalgia and earthy depth, comes in the form of India's new National Cooperative Policy. Once a purely agrarian pillar, cooperatives now span 30 sectors. The government envisions a 30 per cent jump in cooperatives and digital revamps of PACS. But many cherries in this basket are bruised, like 40 per cent of PACS are defunct, and regulatory overlaps persist, highlights our second editorial. If digitisation, governance reforms, and export-readiness don't come together, this vision could rot on the tree. In his column, Ajay Tyagi cautions that India's grand cherries — Net-Zero 2070 and Viksit Bharat 2047 — might be all glossed if we don't define what sweetness actually means. Without measurable targets, time-bound plans, and political consensus, these could become overripe dreams that fall before harvest. Meanwhile, Tulsi Jayakumar peels back the skin on another kind of cherry — India Inc's promoter-run firms. Built for continuity, they are now exposed to boardroom fissures and weak governance. She argues it's time to evolve the model: rebalancing control, reforming boards, and restoring investor trust. And in The New Geography of Innovation: : The Global Contest for Breakthrough Technologies, Ajit Balakrishnan offers a fresh handful altogether. Mehran Gul's debut isn't a tech brochure, it's a global tasting tray. From Station F in Paris to China's AI breakthroughs, Gul dismantles the myth that Silicon Valley has the sole recipe for invention. What makes this book juicy isn't the data alone, but the 200 voices inside it, each shaping a new geography of ideas. Stay tuned!
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Business Standard
7 hours ago
- Business
- Business Standard
India Inc's family feuds serve as both cautionary tale and policy cue
India Inc needs a new social compact that balances family control and public interest to ensure market resilience and its own Mumbai Listen to This Article India's corporate sector has long been dominated by family-run and promoter-controlled businesses. Over the decades, these businesses have powered growth, generated employment, and built household names. Yet, beneath this success story lies an uncomfortable reality — one where family feuds, opaque decision-making, and fragile boards increasingly threaten shareholder value and corporate governance norms. Recent controversies surrounding companies like Raymond, Religare, and Hero MotoCorp only reinforce the urgent need for a new social contract governing promoter control in India Inc. The distinctive feature of Indian capitalism is its promoter-led ownership model. In nearly 70 per cent of listed Indian companies, promoters
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Business Standard
9 hours ago
- Business
- Business Standard
IPO fundraising in 2021-25 crosses that of 2001-20, marking a milestone
The Indian capital markets are witnessing an epochal moment: capital raised via IPOs in the last five years (2021 to 2025 year to date) has crossed that raised in the 20 years prior (2001–2020). The growth in fundraising through IPOs (₹4 trillion raised in the last 4.5 years) has been driven by growing investor participation—both retail and institutional. The heft of institutional investors has been driven by domestic institutional investors such as mutual funds (MFs), which are currently managing assets of over ₹74.4 trillion. Equity-oriented schemes account for over 60% of these total assets under management. What's more, ₹27,000 crore comes every month by way of Systematic Investment Plan (SIP) contributions, driving further demand for new investable ideas that IPOs bring. On the supply side, we have been witnessing very high-quality businesses from across the country and from varying sectors tapping the IPO market to fund investments in differentiated high-growth businesses or to monetise and list the companies to recycle capital to drive further economic growth and create wealth for investors. The IPOs of the past 4.5 years have been a value creation platform for all stakeholders—institutional investors, HNIs, retail investors, employee/management shareholders of the companies, private equity investors, and the promoters themselves. The proof point is simple: IPOs floated from January 2021 till date have provided an average return of over 63% (current market prices vs IPO price), showing that not just the pre-IPO shareholders but also new ones have benefited in a classic win-win situation. Based on the current trends and the overall macro story of India—growth, governance, regulations, and opportunity—I believe that the next three years (i.e., at least until 2028) will be the golden era of fundraising in the Indian capital markets. At Equirus, we estimate that the fundraising in the next three years will exceed that of the last five by over 50%. The ₹6 trillion of productive capital being raised over the next three years will set off a virtuous cycle of generating good returns for existing investors, attracting further investments from households and global capital chasing returns, and will democratise entrepreneurship, removing capital as a constraint for India Inc to prove its might on the global stage. Unlisted corporates must take advantage of this golden era of fundraising to raise risk capital to double down on growth. Those enterprises that fail to do so will risk getting left behind by well-funded competitors who can invest in innovation and attract talent by giving them stock options. This is not an empty hypothesis. One can draw parallels from the world's largest and deepest capital market, the US. In the USA, between 2016 and 2021, $350 billion was raised via IPOs. Of this, a peak sum of $138 billion was raised in calendar year 2021 through 381 IPOs. Thereafter, the golden period ended, and fundraising nosedived. Calendar years 2022–2023 combined saw a fund raise of just 196 IPOs, raising about $27 billion. Faced with unfavourable market conditions, many firms postponed staying private longer (e.g., CoreWeave, Klarna, StubHub) but at the cost of missing peak valuations and public funding access. Case in point: Affirm Holdings, which chose to make an IPO debut in January 2021. The company's valuation has more than doubled—from $12 billion to $30 billion now. On the contrary, Klarna, which hit a valuation of $45.6 billion, did not—or wasn't able to—do an IPO, and saw its valuation crash to $6.5 billion. Another example is Instacart, which hit a private valuation of $39 billion in March 2021. Instacart too postponed its 2022 filing, eventually going public in 2023 at a much lower $9.3 billion valuation. Post-listing, however, the company's valuation zoomed above $14 billion. DoorDash, which went public at a $39 billion IPO valuation in 2020, was valued 91% higher on listing at more than $72 billion. The cost of not doing an IPO, apart from the loss in valuations, is also losing out on the crucial equity funds that allow companies to grow. This hurts even more if competitors raise funds and get the equity needed to grow their businesses. Over-reliance on debt can skew the capital structure of the business, leading to more leverage and interest costs. Missed liquidity events diminish employee morale—stock options lose meaning. Early investors (PE/VC) pressured to exit within 7–10 years need a timely public path. Delays can lead to strained relationships, down rounds, or forced M&A. Competitors who list earlier gain brand visibility, access to capital, and higher valuations. Latecomers may face tougher valuations in stale markets—and heightened scrutiny. India is in the midst of a rare IPO prime-time—driven by economic stability, investor appetite, regulatory support, and huge foreign capital inflows. As history shows—from the U.S. IPO hangover post-2021—missing a public window can cripple growth and delay expansion by years. For India's next-generation unicorns, the 2025–2028 window is a once-in-a-decade opportunity. Companies should move now lest they risk being locked out of the bright future that beckons those who act now. The author is Managing Director & Head of Investment Banking, Equirus Capital Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper.
Hans India
18 hours ago
- Business
- Hans India
India Inc's CSR spending rises 29pc in FY22-FY24, education & healthcare lead: Report
New Delhi: India Inc's annual corporate social responsibility (CSR) spending increased by 29 per cent between FY2022 and FY2024, according to a report on Tuesday. The report by ICRA ESG Ratings showed that till March 2024, the sample set of companies collectively spent Rs 12,897 crore, with an average of Rs 129 crore on CSR initiatives. Between FY2022 and FY2024, average net profits rose by 37 per cent while CSR spending increased by 29 per cent. Notably, 16 out of 100 companies increased their CSR spending despite the decline in profits during the same period, reflecting a commitment to social responsibility beyond compliance. Despite a decline in profits, 48 per cent of companies surpassed the mandated CSR budgets, underscoring their commitment beyond compliance. 'The growing alignment with UN SDGs and proactive CSR spending -- even beyond mandated budgets -- reflects a maturing approach to inclusive development. These efforts are not only enhancing stakeholder value but also contributing meaningfully to India's broader climate and social goals,' said Sheetal Sharad, Chief Ratings Officer, ICRA ESG Ratings. Further, the report showed deepening alignment with the United Nations Sustainable Development Goals (UN SDGs), as companies increasingly move beyond regulatory compliance to proactively invest in initiatives -- particularly in quality education and good health and well-being -- that deliver long-term societal impact. Education and healthcare remained the top CSR focus areas, with SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being) showing the highest alignment across the sample set. Maharashtra and Gujarat received the highest CSR allocations by corporates, while Odisha recorded a major growth of 85 per cent, followed by Andhra Pradesh with 70 per cent growth in CSR spending concentration, reflecting an increased corporate focus on underdeveloped regions with high development needs and potential for impact. Sectoral leaders in CSR spending include the oil and gas refineries sector, private sector banks, the iron and steel sector, and software consulting firms. CSR spending in aspirational districts surged by 115 per cent from FY2021 to FY2023. While a few companies have directed up to half of their CSR budgets toward aspirational districts, the majority continue to allocate less than 5 per cent -- highlighting the need for greater strategic focus and resource allocation in aspirational districts. While progress is evident, the report emphasises the importance of diversification in the CSR focus and exploration of innovative partnerships along with funding alternatives that can bring attention to other causes which are less supported yet remain vital.
Times of Oman
a day ago
- Business
- Times of Oman
India Inc's revenue grew tepid 4-6% YoY in April-June: Crisil
New Delhi: India Inc's revenue likely grew a modest 4-6 per cent year-on-year in the April-June quarter of this current fiscal, slowing from 7 per cent growth in the previous two quarters, due to sluggish performance by the power, coal, information technology (IT) services and steel sectors, which collectively account for a third of the revenue, according to Crisil. Crisil reached this revenue estimate after analysing over 600 companies. Earnings before interest, tax, depreciation and amortisation (Ebitda) likely rose 4 per cent year-on-year. However, the EBITDA margin likely fell 10-30 basis points (bps), weighed down by IT services, automobiles, fast-moving consumer goods (FMCG), and pharmaceuticals, the rating agency said. Pushan Sharma, Director, Crisil Intelligence, asserted that the early onset of monsoon and lingering geopolitical uncertainties are expected to have materially impacted some sectors in April-June. "To wit, the rains-induced cooler summer culled demand for electricity. Consequently, the power sector's revenue is seen declining 8 per cent on-year. The lower demand also pushed down spot prices of electricity, and led to a 2-3 per cent lower demand for coal," Sharma said. "On the other hand, geopolitical uncertainties impacted the IT services sector, where revenue growth is seen flat on-year due to project delays stemming from tariff worries, which led to a slowdown in activity." The steel sector's revenue is expected to have grown a moderate 1-3 per cent year-on-year, due to planned maintenance shutdowns at major steel mills and a 2-4 per cent year-on-year decline in prices. The auto sector's revenue is foreseen rising 4 per cent year-on-year, owing to higher retail sales, partially offset by high inventory. An increase in prices, stemming from changes in the product mix and higher export realisations, likely helped revenue grow. Despite no significant increase in the Union Budget allocation for the construction sector, its revenue is expected to rise 6 per cent year-on-year, as engineering, procurement, and construction (EPC) companies benefited from a low base effect caused by disruptions from the general elections in the first quarter of the last fiscal year. Five sectors -- pharmaceuticals, telecom services, organised retail, aluminium and airline -- likely drove revenue growth, Crisil said. Revenue for pharmaceuticals is expected to increase by 9-11 per cent year-on-year, surpassing corporate India's revenue growth over the past 10 quarters, driven by strong export demand and a stable domestic market. Telecom services revenue is expected to grow 12 per cent year-on-year, fueled by higher realisations of 11 per cent due to costlier subscription plans. Organised retail revenue is likely to rise 15-17 per cent, led by the value fashion and food and grocery segments. Airline revenue is expected to rise 15 per cent year-over-year, driven by a 10-12 per cent increase in volume due to expanded supply resulting from reduced aircraft groundings and the addition of new aircraft. Elizabeth Master, Associate Director, Crisil Intelligence, said, "The top 10 sectors, which collectively account for over 70 per cent of India Inc's revenue, likely showed a mixed trend in the Ebitda margin. While the margin rose for the power, cement, steel, telecom services, construction and aluminium sectors, it likely declined for IT services, automobile, FMCG and pharmaceuticals."
